Oxy Bags Onshore ADNOC Field Exploration Rights
The Abu Dhabi National Oil Company (ADNOC) revealed on the 9th December that it has awarded the exploration rights for Abu Dhabi Onshore Block 5 to Occidental.
The award was approved by Abu Dhabi’s Supreme Petroleum Council (SPC) and follows the SPC’s endorsement last month for ADNOC to begin awarding exploration blocks in Abu Dhabi’s second competitive block bid round, ADNOC outlined.
Occidental will hold a 100 percent stake in the exploration phase, investing up to US$140 million (AED 514 million), including a participation fee, to explore for and appraise oil and gas opportunities in the block, which covers an onshore area of 1,626 square miles south-east of Abu Dhabi city.
Following a successful commercial discovery during the exploration phase, Occidental will have the right to a production concession to develop and produce such commercial discoveries, ADNOC outlined. ADNOC has the option to hold a 60 percent stake in the production phase of the concession.
The term of the production phase is 35 years from the commencement of the exploration phase.
“We are very pleased to once again collaborate with Occidental and strengthen our long-standing partnership,” Ahmed Al Jaber, the UAE minister of industry and advanced technology and ADNOC Group’s chief executive officer, said in a company statement.
“This concession award highlights the important role of energy cooperation in deepening the strong and deep-rooted strategic relationship between the UAE and the US.
“Crucially, the award underscores the attractiveness of Abu Dhabi’s huge untapped resource potential and ADNOC’s ability to continue to secure foreign direct investment to the UAE’s stable and trusted business environment, despite tough market conditions,” he added.
“Occidental was selected after a very competitive bid round which builds on the success of our debut bid round completed last year as part of Abu Dhabi’s block licensing strategy aimed at accelerating the exploration and development of our substantial hydrocarbon resources,” Mr Al Jaber continued.
Vicki Hollub, the president and CEO of Occidental, said, “we are honoured to partner with ADNOC on a second exploration concession contiguous to Onshore Block 3, where we have completed two exploration wells with extremely promising results”.
“We see significant potential in Onshore Block 5 and, in partnership with ADNOC, will continue to work to help unlock the vast untapped resources in Abu Dhabi,” Ms Hollub added.
ADNOC launched Abu Dhabi’s second competitive block bid round in 2019, offering onshore and offshore blocks on behalf of Abu Dhabi’s SPC. Based on existing data from petroleum system studies, seismic surveys, exploration and appraisal wells data, estimates suggest the blocks in this second bid round hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas, ADNOC outlined.
In February 2019, Occidental was awarded an onshore block in Abu Dhabi’s first competitive bid round.
Established in 1988, the Abu Dhabi SPC is responsible for regulating petroleum related policies, objectives and activities in Abu Dhabi. The council also functions as the ADNOC board of directors.
Source: Rigzone