ADNOC Awards Indian Consortium Onshore Exploration Block in Abu Dhabi

Tuesday, 26 March, 2019 - 12:15
Abu Dhabi – Asharq Al Awsat

The Abu Dhabi National Oil Company (ADNOC) signed agreements awarding the exploration rights for Abu Dhabi Onshore Block 1 to a consortium of two Indian oil companies, Bharat Petroleum Corporation Limited and Indian Oil Corporation Limited. The award has been endorsed by Abu Dhabi’s Supreme Petroleum Council (SPC).

The consortium will hold a 100 percent stake in the exploration phase, investing up to $170 million, including a participation fee, to explore for and appraise oil and gas opportunities in the Block.

Following successful exploration activities and appraisal of the existing discoveries, the Indian consortium will be granted the opportunity to develop and produce any discoveries.

ADNOC has the option to hold a 60 percent stake in the production phase.

The agreements were signed by UAE Minister of State and CEO of ADNOC, Sultan al-Jaber, Chairman and Managing Director of Bharat Petroleum Corporation Duraiswamy Rajkumar, and Chairman of Indian Oil Corporation Sanjiv Singh.

Speaking at the ceremony, Jaber explained that the consortium was selected after a very competitive bid round, which represents a major advance in how ADNOC is accelerating the exploration and development of Abu Dhabi’s substantial untapped hydrocarbon resources.

The onshore exploration block will specifically target the conventional oil and gas opportunities in the area. However, the Onshore Block 1 area also covers the separate Ruwais Diyab Unconventional Gas Concession.

Total is conducting an exploration and appraisal phase, targeted exclusively at tight gas resources in the Diyab formation, which will then be followed by a 40-year production term.

Chairman of Bharat expressed the company’s delight with the award of Onshore Block 1, which strengthens the ties with ADNOC and the UAE.

Rajkumar indicated that this will further push the already flourishing relationship in the energy sector between ADNOC and India’s leading Oil and Gas Fortune 500 companies, Bharat Petroleum Corporation and Indian Oil Corporation.

ADNOC also indicated that the exploration phase will see the Indian consortium leverage, and contribute financially and technically to, ADNOC’s mega seismic survey, announced last year.

The survey is deploying industry-leading technologies to capture high-resolution 3D images of the complex geology up to 25 thousand feet below the surface and will be used to identify potential hydrocarbon reservoirs.

Chairman Singh commented that the project will strengthen the company’s efforts to achieve India’s energy security. This is the second time that Indian oil and gas companies would venture into the development of hydrocarbon resources in the UAE, after acquiring stakes in Abu Dhabi’s Lower Zakum Concession.

“We look forward to further strengthening our relationship in the hydrocarbons sector of the UAE.”

With the award of Onshore Block 1, Abu Dhabi’s first-ever competitive block bid round is concluded, which saw very competitive proposals submitted for the geographical areas initially offered in April 2018.

ADNOC has awarded Offshore Blocks 1 and 2 to a consortium comprised of Eni and PTT Exploration and Production Public Company Limited, Onshore Block 3 to Occidental Petroleum, and Onshore Block 4 to INPEX Corporation.

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