The Abu Dhabi National Oil Company (ADNOC) introduced the signing of an settlement, awarding an onshore block – generally known as Onshore Block three – to U.S. based mostly worldwide oil and gasoline exploration and manufacturing firm Occidental Petroleum. The award has been endorsed by Abu Dhabi’s Supreme Petroleum Council (SPC).
Onshore Block three covers an space of 5,782 km2 situated within the Al Dhafra area. Existing 3D seismic knowledge already covers a big a part of the Block which, mixed with its proximity to the Shah, Asab, Haliba and Sahl fields, suggests the concession space has very promising potential.
Following the latest award of Abu Dhabi’s two offshore blocks, Onshore Block three is the primary onshore block to be awarded among the many geographical areas that had been supplied for business bidding by ADNOC in April 2018. Abu Dhabi’s new block licensing technique represents a serious advance in how the Emirate accelerates the exploration and growth of untapped sources to replenish its wealthy reserves base and drives new business alternatives.
Under the phrases of the settlement, Occidental will maintain a 100% stake within the exploration section, investing $244 million (AED 893 million), together with a participation charge, to probe for oil and gasoline in Onshore Block three.
Upon profitable exploration – and having established the commerciality of the found sources – Occidental might be granted the chance to develop and produce any discoveries. ADNOC has the choice to carry a 60% stake within the manufacturing section of the concession.
The concession settlement, which has a time period of 35 years, was signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Vicki Hollub, president and CEO of Occidental.
H.E. Dr. Al Jaber mentioned: “This concession award demonstrates how ADNOC is accelerating the exploration and growth of Abu Dhabi’s huge untapped hydrocarbon sources. It will assist ADNOC to unlock worth and keep forward of the long-term improve in demand for power and oil and gasoline merchandise, whereas additional strengthening Abu Dhabi’s place as an important power supplier to the world. The award additionally indicators our continued and growing collaboration with US firms.
“Occidental was chosen after a aggressive bid spherical through which they introduced a compelling plan for exploration of the world. Occidental is already a three way partnership associate of ADNOC’s within the Shah onshore bitter gasoline manufacturing and processing, and the award displays our technique to develop long-term partnerships with those that need to make investments with us throughout our price chain. It stays on the core of our 2030 sensible progress technique to extract most worth from Abu Dhabi’s sources, and safe strong and sustainable returns to the UAE.”
Vicki Hollub, president and CEO, Occidental Petroleum, mentioned: “We are honored to associate with ADNOC to unlock Abu Dhabi’s huge untapped sources as a part of its sensible progress technique. We have had a profitable partnership with ADNOC creating the Shah Gas Field and look ahead to persevering with to work collectively on tasks of strategic significance.”
The exploration section will see Occidental leverage – and contribute financially and technically to – ADNOC’s mega seismic survey, introduced final 12 months. The survey is deploying industry-leading applied sciences to seize high-resolution 3D photographs of the complicated geology as much as 25,000 ft beneath the floor and might be used to determine potential hydrocarbon reservoirs.
All exploration actions in Abu Dhabi are fastidiously deliberate to make sure that any potential impacts are mitigated by means of the implementation of safety measures and use of superior strategies and applied sciences to reduce drilling actions in populated or environmentally delicate areas.
ADNOC collaborates with Occidental in onshore bitter gasoline discipline growth and processing by means of ADNOC Sour Gas. Established in 2010 to maximise the worth of the Shah Gas Field, ADNOC Sour Gas is a three way partnership firm between ADNOC, which owns…