Adnoc awards $244 million exploration deal to Occidental
The US firm will have a 35-year concession
Abu Dhabi National Oil Company (Adnoc) said on Saturday it awarded the US-based Occidental Petroleum an onshore block, known as Onshore Block 3.
Occidental will have a 35-year concession and invest $244 million during the exploration phase of the block, which covers an area of 5,782 square kilometres in Al Dhafrah region in Abu Dhabi.
Dr Sultan bin Ahmad Sultan Al Jaber, UAE Minister of State and Adnoc Group CEO, and Vicki Hollub, president and CEO of Occidental, signed the concession agreement, which has been endorsed by Abu Dhabi's Supreme Petroleum Council (SPC).
Under the terms of the agreement, Occidental will hold a 100 per cent stake in the exploration phase, including a participation fee, to explore for oil and gas in Onshore Block 3. Upon successful exploration - and having established the commerciality of the discovered resources - Occidental will be granted the opportunity to develop and produce any discoveries. Adnoc has the option to hold a 60 per cent stake in the production phase of the concession.
"This concession award demonstrates how Adnoc is accelerating the exploration and development of Abu Dhabi's vast untapped hydrocarbon resources. It will help Adnoc to stay ahead of the long-term increase in demand for energy and oil and gas products," Al Jaber said.
The exploration phase will see Occidental 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 25,000 feet below the surface and will be used to identify potential hydrocarbon reservoirs.
Assets under management across the group stood at Dh894 billion... READ MORE
NFTs are blockchain-based token, which document ownership of real or... READ MORE
Islamic Development Bank and ICBA has been working on several... READ MORE
MakeMyTrip recently launched the platform in Arabic language suiting... READ MORE
The new provisions will be applicable 60 days as from April 28, 2021. READ MORE
The six franchises will get to know the fate of the tournament on... READ MORE
'If everyone stays home because they are scared, then who is going to ... READ MORE
A celebration of art of giving in the holy month of Ramadan READ MORE