Oxy awarded onshore Block 3 in Abu Dhabi

Occidental Petroleum Corporation will invest US$244 million, including a participation fee, in exploration of onshore Block 3 in Abu Dhabi.

Abu Dhabi National Oil Company awarded the 5,782-sq-km block as part of its competitive bidding round launched in April 2018.

The block is in the Al Dhafra region near Shah, Asab, Haliba, and Sahl fields.

Oxy will hold a 100% interest during exploration and receive development and production rights to discoveries. ADNOC has the option to hold a 60% stake in production.

During exploration, Oxy will contribute financially and technically to a large 3D, land and marine seismic survey ADNOC commissioned last year.

The concession agreement has a 35-year term. The block is the first awarded of four onshore blocks offered in the bid round.

The two offshore blocks offered in the round have been awarded, both to a combine of Eni and PTT Exploration & Production.

Source: Oil & Gas Journal