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

South Korea Aims to Cut Middle East Crude Dependence to 50% by 2035

PTTEP, Valeura Greenlight Bussabong Gas Development off Thailand

MODEC, Eld Energy Advance Fuel Cell Power for FPSOs

Petronas, PTTEP Get Approvals for New Gas Block Sharing Contract

TPAO Eyes Karabakh Offshore Expansion with SOCAR

Saudi Oil Lifeline Shut After Attack as Red Sea Threat Grows

Greater Sunrise Gas Production Pushed Back to 2034

SED Energy Holdings and Ventura Offshore Set to Combine Ops

ABS Backs Hanwha Ocean’s Standardized FPSO Design

PTTEP, Petronas Ink 35-Year Malaysia-Thailand Gas Deals

Current News

Saudi Aramco Plans Standalone Gas Division in Major Reorganization

South Korea Aims to Cut Middle East Crude Dependence to 50% by 2035

Iran Restores Half of Damaged South Pars Gas Field Capacity

Oil Drops as Hormuz Reopening Prospects Ease Supply Concerns

ONGC Strikes Gas in Deepwater Well off India

PTTEP, Valeura Greenlight Bussabong Gas Development off Thailand

QatarEnergy's LNG Expansion Faces Delays from Hormuz Crisis

Hormuz Ship Traffic Slumps as Middle East Conflict Drags On

Oil Goes Down 2% as Saudi Supply Concerns Recede

Indonesia Picks Winners for Six Oil and Gas Blocks, Puts Eight More on Offer

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