UAE - Mubasher: The Abu Dhabi National Oil Company (ADNOC) has awarded the US-based Occidental, an international oil and gas exploration and production company, the exploration rights for Abu Dhabi Onshore Block 5.
To grant the exploration rights to Occidental, ADNOC has inked an exploration concession agreement, according to a press release on Wednesday.
Under the award approved by Abu Dhabi’s Supreme Petroleum Council (SPC), Occidental will own a 100% stake in the exploration phase.
The US company will invest up to AED 514 million ($140 million), including a participation fee, to explore for and assess oil and gas opportunities in Abu Dhabi Onshore Block 5.
Following a commercial discovery, Occidental will have the right to develop and produce such commercial discoveries.
At the same time, ADNOC has the option to hold a 60% stake in the 35-year production phase from the commencement of the exploration phase.
The UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, Sultan Ahmed Al Jaber, said: "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."
The President and CEO of Occidental, Vicki Hollub, commented: "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."
