ADNOC awards Japan’s Cosmo Energy offshore exploration rights
Cosmo will invest up to Dh532 million towards exploration and drilling
Dubai: Abu Dhabi National Oil Company (ADNOC) on Wednesday said it awarded the exploration rights for Abu Dhabi’s Offshore Block 4 to Cosmo E&P Albahriya Limited, a wholly-owned subsidiary of Japan’s Cosmo Energy Holdings Co.
Under the terms of the agreement, Cosmo will hold a 100 per cent stake in the exploration phase, investing up to $145 million (Dh532 million) towards exploration and appraisal drilling, including a participation fee.
The award has been approved by Abu Dhabi’s newly formed Supreme Council for Financial and Economic Affairs (SCFEA) and marks the first of such awards endorsed by the SCFEA.
The agreement “further strengthens Abu Dhabi’s long-standing partnership with Cosmo as well as the UAE-Japan strategic bilateral relationship,” said ADNOC in a statement.
The award of Offshore Block 4 follows the recent exploration block awards to Occidental as well as a consortium led by Italy’s Eni and Thailand’s PTTEP.
“This concession award builds on our long-standing relationship with Cosmo and reinforces the deep-rooted and successful strategic relationship between the UAE and Japan, ADNOC’s largest importer of oil and gas products,” said Sultan Al Jaber, CEO of ADNOC.
“Cosmo was selected after a very competitive bid round. They bring expertise and understanding of our offshore environment, technology, and market access – key ingredients that underpin ADNOC’s targeted approach to strategic partnerships,” Al Jaber added.