The Abu Dhabi National Oil Company (ADNOC) has awarded exploration rights of two offshore blocks in Abu Dhabi to a consortium of Eni and PTT Exploration and Production Public (PTTEP).
As per the terms of the agreements, Eni and the Thailand-based PTTEP will invest over AED844m ($230m) to explore hydrocarbons and appraise the existing discoveries in the two offshore Abu Dhabi blocks.
The blocks – Offshore 1 and Offshore 2 cover a combined area of about 8,000km2 and will be operated by the Italian oil and gas major, which holds 70% stake, while the remaining 30% will be held by the Thai firm.
Located in the northwest of Abu Dhabi, the two blocks were awarded to the consortium following commercial bidding held by ADNOC in April 2018 under the emirate’s first-ever open block licensing strategy.
ADNOC holds an option to own a stake of 60%, following a commercial discovery in the blocks.
ADNOC Group CEO Dr. Sultan Ahmed Al Jaber said: “This award builds on ADNOC’s and Eni’s growing partnerships on various fronts, broadens ADNOC’s strategic partnership base as we add, for the first time, Thailand’s PTTEP, and reinforces the confidence the international community places on the UAE’s stable and secure and investment environment.”
The agreement’s exploration phase has a maximum period of nine years and if the exploration is successful, then the overall concession term will extend to 35 years to carry out development and production.
Eni CEO Claudio Descalzi said: “This award represents a new important step towards Eni’s expansion in one of the world leading region for the oil and gas industry, not only by participating in producing fields, but also by exploring new blocks.
“In particular, Offshore Blocks 1 and 2 are extremely important thanks to the virtuous synergies they will have with Ghasha offshore concession.”
Last year, the Italian firm was granted a 10% stake in the Umm Shaif and Nasr Offshore concession along with a 5% stake in the Lower Zakum concession followed by a 25% stake in the multi-billion US dollar ultra-sour gas project in Ghasha concession.