Occidental Gets Abu Dhabi Onshore Block
The Abu Dhabi National Oil Company (Adnoc) has signed an agreement awarding Onshore Block 3 to US-based Occidental Petroleum, it said February 2. The award has been endorsed by Abu Dhabi’s Supreme Petroleum Council (SPC).
Onshore Block 3 covers an area of 5,782 km2 located in the Al Dhafra region. Existing 3D seismic data already covers a large part of the block which, combined with its proximity to the Shah, Asab, Haliba and Sahl fields, suggests the concession area has very promising potential, Adnoc said.
Following the recent award of Abu Dhabi’s two offshore blocks, Onshore Block 3 is the first onshore block to be awarded among the geographical areas that were offered for commercial bidding by Adnoc in April 2018.
Under the terms of the agreement, Occidental will hold a 100% stake in the exploration phase, investing $244mn, including a participation fee, to explore for oil and gas in the block.
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 said it has the option to hold a 60% stake in the production phase of the concession.
Banner photo credit: Adnoc