US firm oil and gas exploration and production company Occidental Petroleum has secured an onshore block located in the UAE’s Al Dhafra region from the Abu Dhabi National Oil Company (Adnoc).
Known as Onshore Block 3, the block covers an area of 5,782km² and is located near the Shah, Asab, Haliba and Sahl fields.
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Pursuant to the terms of a 35-year concession agreement signed between the parties, Occidental will invest AED893m ($244m), including a participation fee, to undertake oil and gas exploration in Onshore Block 3.
Holding a 100% stake in the exploration phase, the US firm secured the block following commercial bidding.
Adnoc Group CEO Dr Sultan Ahmed Al Jaber 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.
“Occidental was selected after a competitive bid round in which they presented a compelling plan for exploration of the area. Occidental is already a joint venture partner of Adnoc’s in the Shah onshore sour gas production and processing, and the award reflects our strategy to develop long-term partnerships with those who want to invest with us across our value chain.”
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By GlobalDataDuring the exploration phase, Occidental will use Adnoc’s mega-seismic survey that involves capturing high-resolution 3D images of the geology up to 25,000ft below the surface.
The survey was announced last year and is expected to help identify potential hydrocarbon reservoirs.
The latest award comes after Adnoc last month offered exploration concessions in two offshore blocks to Italy’s Eni and Thailand’s PTT Exploration and Production (PTTEP).
In November last year, Adnoc unveiled plans to enhance oil production capacity to four million barrels a day by the end of 2020 and five million by 2030.
