The Abu Dhabi National Oil Company (ADNOC) awarded exploration rights for Abu Dhabi Onshore Block 1 to a consortium of two Indian oil companies, Bharat Petroleum Corporation Ltd. and Indian Oil Corporation Ltd., for a term of 35 years, the company announced Sunday.
According to ADNOC's statement, the consortium will hold a 100 percent stake in the exploration phase, investing up to AED 646 million ($170 million), including a participation fee, to explore and appraise oil and gas reserves in the 6,162-square-kilometer block around Ruwais, ADNOC's integrated refining and petrochemicals hub in the Al Dhafra region of Abu Dhabi.
The block is said to include already discovered but undeveloped conventional oil and gas fields.
Following successful exploration and appraisal of the existing discoveries, the Indian consortium will be granted the opportunity to develop and produce any discoveries while ADNOC has the option to hold a 60 percent stake in the production phase.
According to the press release, the award of Onshore Block 1 concludes Abu Dhabi's first-ever competitive block bid round, which saw very competitive proposals submitted for the geographical areas initially offered in April 2018.
ADNOC has awarded Offshore Blocks 1 and 2 to a consortium comprised of Eni and Bangkok-based PTT Exploration and Production Public Company Limited, Onshore Block 3 to Houston-based Occidental Petroleum, and Onshore Block 4 to Japan's Inpex Corporation.
By Hale Turkes