Abu Dhabi National Company (ADNOC) said on Wednesday it had signed an exploration concession agreement with Occidental Petroleum Corp for onshore block 5. Image Credit: Adnoc Group/ Instagram

Dubai: United Arab Emirates' Abu Dhabi National Oil Co (ADNOC) said on Wednesday it had awarded an onshore exploration concession to Occidental Petroleum Corp .

Occidental will hold a 100 per cent stake during the exploration phase, investing up to 514 million dirhams ($140 million), including a participation fee, for oil and gas, it said in a statement.

Occidental will have the right to a production concession following a successful commercial discovery, with ADNOC having the option to hold a 60 per cent stake in the concession.

The production period is for 35 years from the start of exploration.

The block, located southeast of Abu Dhabi city, covers an onshore area of 4,212 square km, ADNOC said.

New data covering a large part of the block, along with its proximity to existing onshore oil and gas fields, suggests the area has "promising potential", ADNOC said.