ADNOC awarded two offshore blocks to a consortium led by Eni and Thailand’s PTTEP that will see the international companies invest AED 844 million (US$230 million) to explore for oil and gas.
The two blocks in the northwest of Abu Dhabi – Offshore 1 and Offshore 2 – are the first blocks to be awarded among the geographical areas that were offered for commercial bidding by ADNOC, in April 2018, as part of Abu Dhabi’s first competitive open block licensing strategy.
Eni will operate the concessions and PTTEP (PTT Exploration and Production Public Company Limited) and Eni will both hold a 100 per cent stake in the exploration phase, investing at least AED 844 million (US$230 million) to explore for oil and gas, and appraise the existing discoveries in Offshore Block 2, ADNOC stated the terms of the deal in a statement.
At the same time, the exploration and appraisal plans for the Offshore Block 1 will be finalised. The two blocks cover a combined area of approximately 8,000 square kilometers.
Upon successful exploration – and having established the commerciality of the discovered resources – Eni and PTTEP will, together, be able to develop and produce any discoveries, with ADNOC retaining the option to hold a 60 percent stake in the production phase.
The concession agreements were signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO; Claudio Descalzi, CEO of Eni; and Phongsthorn Thavisin, President and Chief Executive Officer of PTTEP.
H.E. Dr. Al Jaber said: “These historic agreements on the first blocks to be awarded, following a competitive bidding process, represent a major advancement in how Abu Dhabi and ADNOC unlocks and maximizes value from its substantial hydrocarbon resources, in line with the leadership’s directives.