Adnoc launches historic oil and gas exploration round

Abu Dhabi / WAM

“For the first time in our history, on behalf of the Supreme Petroleum Council, Adnoc will make available six new, large onshore and offshore blocks for competitive bid within the Emirate of Abu Dhabi,” Dr Sultan Ahmed Al Jaber, UAE Minister of State and Group CEO of Abu Dhabi National Oil Company (Adnoc), said.
Dr Al Jaber announced on Tuesday, that as part of Abu Dhabi’s first ever block licensing strategy, Adnoc’s details of the initial round of six geographical oil and gas blocks are open for bidding. This follows the announcement last month by Dr Al Jaber that Abu Dhabi will launch its first ever competitive exploration and
production bid round.
In a press statement, Adnoc explained that the licensing strategy represents a major development in how Abu Dhabi unlocks new opportunities and maximises value from its hydrocarbon resources. It is also consistent with the company’s approach to expand its strategic partnerships across all areas of business.
The successful bidders will enter into agreements granting exploration rights and provided defined targets are achieved in the exploration phase, be granted the opportunity to develop and produce any discoveries with Adnoc, under terms that will be set out in the bidding package. The six blocks open for bidding, two of which are offshore and four are onshore, cover an area of between 2,500 and 6,300 square kilometres, which, by comparison, is up to three quarters of a UK North Sea quadrant, consisting of 30 blocks. In total, Abu Dhabi’s six blocks comprise an area of almost 30,000 km2 .
Dr Al Jaber said, “The launch of these large new licensing blocks is an important step for Abu Dhabi and Adnoc as we develop and apply new strategies to realise the full potential of our resources, maximise value through competitive bidding and accelerate the exploration and development of new commercial opportunities.
“This approach is central to our expanded partnership strategy, which aims to introduce new opportunities as we broaden and diversify our partnership base. In addition, as we begin to expand our downstream portfolio, the new licensing blocks reinforce our long term production growth ambitions and builds on our successful legacy as a leading upstream player.
This is a rare and exciting opportunity, for both existing and new partners, in a secure and stable investment environment.”
The UAE is the world’s seventh largest oil producer, with about 96 percent of its reserves within the emirate of Abu Dhabi. Located in one of the world’s largest hydrocarbon super-basins, there remains undiscovered and undeveloped potential in the numerous stacked reservoirs.