Abu Dhabi National Oil Company (ADNOC) awarded the exploration rights for Abu Dhabi’s Offshore Block 3 to a consortium led by Eni Abu Dhabi, a subsidiary of Italy’s multinational energy firm and PTTEP MENA Ltd., a subsidiary of Thailand’s PTT Exploration and Production Public Company Limited (PTTEP).
Under the agreement, Eni will operate the exploration phase of the concession, also PTTEP and Eni together will hold a 100 percent share in it.
The companies collectively will invest up to $412 million for exploration and appraisal drilling, like participation fee and exploring oil and gas opportunities in Offshore Block 3, ADNOC said in a statement.
The award was approved by Abu Dhabi’s Supreme Petroleum Council (SPC) and the exploration concession agreement was signed by Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Group CEO, Claudio Descalzi, CEO of Eni and Phongsthorn Thavisin, CEO of PTTEP.
The offshore Block 3 covers an area of 11,660 square kilometers northwest of Abu Dhabi city. The new 3D seismic data for a part of the block, combined with its proximity to the existing onshore oil and gas fields, suggests the concession area has promising potential, ADNOC said.
After the successful commercial discovery during the exploration phase, Eni and PTTEP will together take the production concession right. ADNOC has the option to hold a 60 percent share during the production phase and the term of the production phase is 35 years from the commencement of the exploration phase.
“The concession validates our targeted approach to value-add partnerships that contribute the right combination of capital, technology, capabilities and market access to accelerate the development of Abu Dhabi’s hydrocarbon resources. Despite volatile market conditions, we are making very good progress in delivering Abu Dhabi’s second competitive block bid round, underscoring our world-class resource potential and the UAE’s stable and reliable investment environment.”
In addition, Eni and PTTEP will also contribute financially and technically to ADNOC’s mega seismic survey, which is already acquiring seismic data within the block area.
The survey is the world’s largest of its kind which uses cutting-edge technologies to capture high-resolution 3D images at deep locations below the surface and to identify potential hydrocarbon reservoirs.