ADNOC, US Firm Sign USD 244mln Deal

Laxman Pai
Sunday, February 3, 2019

Abu Dhabi National Oil Co. (ADNOC) said it awarded an onshore block, known as Onshore Block 3 to US-based oil and gas exploration and production company Occidental Petroleum.

The award has been endorsed by Abu Dhabi’s Supreme Petroleum Council (SPC).

Occidental will have a 35-year concession and invest $244m during the exploration phase of the block, which covers an area of 5,782 square kilometres in al-Dhafrah region in the emirate of Abu Dhabi.

Onshore Block 3 covers an area of 5,782 km2 located in the Al Dhafra region. Existing 3D seismic data already covers a large part of the Block which, combined with its proximity to the Shah, Asab, Haliba and Sahl fields, suggests the concession area has very promising potential.

Following the recent award of Abu Dhabi’s two offshore blocks, Onshore Block 3 is the first onshore block to be awarded among the geographical areas that were offered for commercial bidding by ADNOC in April 2018. Abu Dhabi’s new block licensing strategy represents a major advance in how the Emirate accelerates the exploration and development of untapped resources to replenish its rich reserves base and drives new commercial opportunities.

Under the terms of the agreement, Occidental will hold a 100 percent stake in the exploration phase, investing AED 893 million (US $244 million), including a participation fee, to explore for oil and gas in Onshore Block 3.

Upon successful exploration – and having established the commerciality of the discovered resources – Occidental will be granted the opportunity to develop and produce any discoveries. ADNOC has the option to hold a 60 percent stake in the production phase of the concession.

Categories: Oil Gas Exploration Contract Middle Ease

Related Stories

Vantris Energy Lands Petronas Job on Malaysia’s Offshore Fields

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

Offshore Rig Outlook: As 2025 Challenges Fade, Path Ahead Brightens

OE’s 2025 Top of the Festive Video Pops: Santa Goes Offshore

Petronas, CNOOC Ink LNG Sale and Purchase Agreement

Russia Gives ExxonMobil More Time to Exit Sakhalin-1 Oil and Gas Project

CNOOC Launches New Offshore Oil Development in Southern China

Saipem Nets Multibillion-Dollar Job at World's Largest Offshore Gas Field

Fugro Nets Mubadala Energy’s Deepwater Gas Job in Asia

Velesto Agrees $63M Jack-Up Drilling Rig Sale with Indonesian Firm

Current News

OceanMight Gets Petronas’ Offshore Construction Job in Malaysia

Vantris Energy Lands Petronas Job on Malaysia’s Offshore Fields

Murphy Oil Appraisal Well Boosts Resource Outlook at Field off Vietnam

Viridien Kicks Off Multi-Client Reimaging Program off Malaysia

Petrovietnam Agrees First-Ever LNG Term Deal with Shell

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

Jereh Group Delivers Oil Separation Systems for Petrobras’ FPSO Units

Offshore Rig Outlook: As 2025 Challenges Fade, Path Ahead Brightens

Offshore Energy and Boosting the Energy Efficiency of Water Processes

Low Demand, High Supply Keeps Asia LNG Spot Prices Flat

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com