Occidental awarded exploration concession and will invest up to AED514mn (US$140mn) 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 Onshore Block 5 to Occidental, a US-based international oil and gas exploration and production company.
The award has been approved by Abu Dhabi’s Supreme Petroleum Council (SPC) and follows the SPC’s endorsement last month for ADNOC to begin awarding exploration blocks in Abu Dhabi’s second competitive block bid round.
Occidental will hold a 100 percent stake in the exploration phase, investing up to AED 514mn (US$140mn), including a participation fee, to explore for and appraise oil and gas opportunities in the block that covers an onshore area of 4,212sqkm southeast of Abu Dhabi city.
The exploration concession agreement was signed by Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, and Vicki Hollub, President and CEO, Occidental.
“Occidental was selected after a very competitive bid round that builds on the success of our debut bid round completed last year as part of Abu Dhabi’s block licensing strategy aimed at accelerating the exploration and development of our substantial hydrocarbon resources,” commented Dr. Al Jaber.
“We see significant potential in Onshore Block 5 and, in partnership with ADNOC, will continue to work to help unlock the vast untapped resources in Abu Dhabi,” remarked Hollub.
