Consortium awarded exploration concession with investment of US$412mn during the exploration phase
The Abu Dhabi National Oil Company (ADNOC) recently announced the signing of an exploration concession agreement, awarding the exploration rights for Abu Dhabi’s Offshore Block 3 to a consortium led by Eni Abu Dhabi, a wholly-owned subsidiary of Italy’s multinational energy company, Eni, and PTTEP MENA, a wholly-owned subsidiary of Thailand’s PTT Exploration and Production (PTTEP).
The award has been approved by Abu Dhabi’s Supreme Petroleum Council (SPC). It follows ADNOC’s award earlier this month of an onshore block to Occidental, highlighting how ADNOC continues to leverage and strengthen its strategic partnerships to accelerate the exploration and development of Abu Dhabi’s hydrocarbon resources.
The exploration concession agreement was signed by Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO; Claudio Descalzi, CEO, Eni and Phongsthorn Thavisin, CEO, PTTEP.
“This concession award reinforces ADNOC and Eni’s growing partnership across our value chain and deepens our relationship with Thailand’s PTTEP, one of the key markets for our crude oil and products,” affirmed Dr. Al Jaber.
Under the terms of this agreement, Eni will operate the exploration phase of the concession, and PTTEP and Eni will collectively hold a 100% stake in the exploration phase, investing up to AED1.51bn (US$ 412mn) towards exploration and appraisal drilling, including a participation fee, to explore for and appraise oil and gas opportunities in Offshore Block 3.
“This further strengthens our relationship with our valuable partner PPTEP. Offshore Block 3 represents a challenging opportunity that can unlock significant value thanks to exploration and appraisal of shallow and deep reservoirs,” commented Descalzi.
“This concession award offers another great opportunity for PTTEP to strengthen collaboration with world-class strategic partners Eni and ADNOC,” remarked Thavisin.
Offshore Block 3 covers an offshore area of 11,660sqkm northwest of Abu Dhabi city.
