Adnoc, Occidental sign $244m exploration deal

ABU DHABI / WAM

The Abu Dhabi National Oil Company (Adnoc) announced, on Saturday, the signing of an agreement, awarding an onshore block — known as Onshore Block 3 — to US based international oil and gas exploration and production company Occidental Petroleum. The award has been endorsed by Abu Dhabi’s Supreme Petroleum Council (SPC).
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 AED893 million ($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 discove-
ries. Adnoc has the option to hold a 60 percent stake in the production phase of the concession.
Dr Al Jaber said: “This concession award demonstrates how Adnoc is accelerating the exploration and development of Abu Dhabi’s vast untapped hydrocarbon resources.”