The Abu Dhabi National Oil Company (ADNOC) announced in a statement that it has signed an exploration concession agreement, awarding the exploration rights for Abu Dhabi Onshore Block 5.
The agreement signed with US-based international oil and gas exploration and production company Occidental (OXY).
As per the statement, the award has been approved by Abu Dhabi’s Supreme Petroleum Council (SPC) and follows the SPC’s endorsement last month for ADNOC to begin awarding exploration blocks in Abu Dhabi’s second competitive block bid round.
As per the agreement, Occidental will hold a 100 percent stake in the exploration phase, investing up to AED 514 million ($140 million), including a participation fee, to explore for and appraise oil and gas opportunities in the block that covers an onshore area of 4,212 square kilometers southeast of Abu Dhabi city.
New 3D seismic data has been acquired over a large part of the block, which combined with its proximity to the existing onshore oil and gas fields, suggests the concession area has promising potential.
Following a successful commercial discovery during the exploration phase, Occidental will have the right to a production concession to develop and produce such commercial discoveries.
ADNOC has the option to hold a 60 percent stake in the production phase of the concession. The term of the production phase is 35 years from the commencement of the exploration phase. Onshore Block 5 offers the potential to create significant in-country value for the UAE over the lifetime of the concession.
In addition to drilling exploration and appraisal wells, the exploration phase will see Occidental leverage and contribute financially and technically to ADNOC’s mega seismic survey, which is already acquiring seismic data within the block area.
This world’s largest 3D seismic survey is deploying industry-leading technologies to capture high-resolution 3D images of the complex geology up to 25,000 feet below the surface and will be used to identify potential hydrocarbon reservoirs.
In February 2019, Occidental was awarded an onshore block in Abu Dhabi’s first competitive bid round. Occidental continues to explore for oil and gas in the block known as Onshore Block 3 that covers an area of 5,782 square kilometers in the Al Dhafra region of Abu Dhabi.
Read Also: ADNOC Awards $519million Contract for World’s Largest 3D Seismic Survey
***
For latest updates, follow us on LinkedIn, Facebook, Twitter,
Notify me on new projects awards