US oil and gas company Occidental Petroleum has been granted exploration rights to Abu Dhabi’s Onshore Block 3 from the Abu Dhabi National Oil Company (ADNOC) for a participation fee of AED893 million ($244 million).
The concession agreement signed by the two parties will be valid for 35 years.
Onshore Block 3 is an onshore concession located in the Al Dhafra region in which the US oil and gas company will have a 100% stake for the exploration phase. The onshore Abu Dhabi block spans an area of 5,782km2, and is located near the Shah, Asab, Haliba and Sahl fields.
ADNOC revealed that a major portion of Onshore Block 3 is covered already by 3D seismic data.
The UAE national oil company said that Occidental Petroleum was selected as the winner of the Abu Dhabi onshore block following a competitive bid round in which the company is said to have come up with a compelling plan for exploration of the concession.
Occidental Petroleum is already ADNOC’s joint venture partner in the Shah onshore sour gas project.
Vicki Hollub – President and CEO of Occidental Petroleum said: “We are honored to partner with ADNOC to unlock Abu Dhabi’s vast untapped resources as part of its smart growth strategy. We have had a successful partnership with ADNOC developing the Shah Gas Field and look forward to continuing to work together on projects of strategic importance.”
Under the terms of the concession agreement, Occidental Petroleum can develop and bring on stream any discoveries resulting from the onshore Abu Dhabi block once the US oil and gas company proves that the discovered hydrocarbons have commercial value. ADNOC, in such a situation, will keep an option to own a 60% stake during the production phase of Onshore Block 3.
Sultan Ahmed Al Jaber – CEO of ADNOC Group and also UAE Minister of State, said: This concession award demonstrates how ADNOC is accelerating the exploration and development of Abu Dhabi’s vast untapped hydrocarbon resources.
“It will help ADNOC to unlock value and stay ahead of the long-term increase in demand for energy and oil and gas products, while further strengthening Abu Dhabi’s position as an essential energy provider to the world. The award also signals our continued and increasing collaboration with US companies.”
ADNOC awards Abu Dhabi Onshore Block 3 rights to Occidental Petroleum added by Soujanya on
View all posts by Soujanya →
Share this:
Discover more from Business-News-Today.com
Subscribe to get the latest posts sent to your email.