Abu Dhabi: The exploration rights for Abu Dhabi’s Offshore Block 3 has been awarded to a consortium led by subsidiaries of Italy’s ENI and Thailand’s PTT Exploration and Production Public Company (PTTEP).
The awarding - by Abu Dhabi National Oil Company (ADNOC) - has been approved by Abu Dhabi’s Supreme Petroleum Council (SPC), and follows the energy giant’s award earlier this month of an onshore block to US-based Occidental Petroleum.
Under the terms of the deal, ENI will operate the exploration phase of the concession, and PTTEP and the Italian company will collectively hold 100 per cent in the exploration phase. They will invest up to Dh1.51 billion ($412 million), including a participation fee, to explore for and appraise oil and gas opportunities in Offshore Block 3.
Dh1.51billionWhat will go into exploring and appraising oil and gas opportunities at Offshore Block 3
“This again 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,” said Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO.
“Despite volatile market conditions, we are making very good progress in delivering Abu Dhabi’s second competitive block bid round."
Eni and PTTEP will have the right to a production concession to develop and produce commercial discoveries; ADNOC has the option to hold a 60 per cent stake in the production phase of the concession.
The term of the production phase is 35 years from the commencement of exploration.