They invest 1.51 billion dirhams during the exploration phase

ADNOC awards marine exploration concessions to Eni and PTTEP

Sultan Al-Jaber during the signing of the agreement.

From the source

The Abu Dhabi National Oil Company (ADNOC) announced yesterday that it has signed a concession agreement for oil and gas exploration in Abu Dhabi's "Offshore Zone No. 3", with a consortium led by "Eni Abu Dhabi B."

V, which is wholly owned by the Italian energy company Eni, and the Middle East and North Africa company, PTTEP, which is wholly owned by the Thai company PTTEP.

The agreement comes after the approval of the Supreme Petroleum Council in Abu Dhabi, and in the wake of ADNOC's awarding of a land area concession to the American company, Occidental this month, in a step that confirms ADNOC's endeavor to strengthen its strategic partnerships and benefit from them to accelerate the pace of exploration and development of Abu Dhabi's hydrocarbon resources.

The agreement was signed by the Minister of Industry and Advanced Technology, CEO of Abu Dhabi National Oil Company (ADNOC) and its group of companies, Dr. Sultan bin Ahmed Al Jaber, CEO of Eni, Claudio Descalzi, and CEO of PTTEP, Fungsthorn Thavisen.

Dr. Sultan bin Ahmed Al Jaber said: “In line with the wise leadership's directives to achieve the maximum possible value from Abu Dhabi's hydrocarbon resources, awarding this concession comes to reinforce the growing partnership between (ADNOC) and (ENI) in various fields and stages of our business in the oil and gas sector.

This agreement also contributes to deepening our relationship with the Thai PTTEP, especially since Thailand is one of our main markets for crude oil and other products.

The awarding of this franchise reaffirms our approach to concluding quality partnerships that generate additional value by enhancing access to capital, advanced technology and advanced capabilities, and establishing presence in major growth markets to accelerate the pace of development of Abu Dhabi's hydrocarbon resources. ”

He added: “Despite market conditions, we are making remarkable progress in implementing the second round of competitive bidding launched by Abu Dhabi within its strategy to issue licenses for new areas, and this confirms the great and promising potential of Abu Dhabi’s resources, as well as the international community’s confidence in the stable and reliable investment system in the UAE. .

We welcome cooperation with parties that share our vision of creating sustainable value from our hydrocarbon resources and achieving mutual benefit. ”

Under the terms of the agreement, Eni will manage the exploration concession phase, and PTTEP and Eni together will obtain a 100% stake in the exploration phase, and the two companies will invest up to 1.51 billion dirhams ($ 412 million) in exploration and drilling of exploration and evaluation wells. .

In the event that commercially feasible discoveries are made during the exploration phase, Eni and PTTEP will obtain the right to develop and produce these commercially feasible discoveries, while ADNOC has the option to retain a 60% stake in the 35-year production phase from the start of the exploration. .

Unexplored resources

The agreement confirms the great attractiveness of Abu Dhabi's unexplored oil and gas resources, and ADNOC's ability to attract foreign direct investment to the UAE, despite the exceptional market conditions.

The award of the "Marine Zone No. 3" will also provide more promising opportunities in the field of enhancing the local added value in the country during the concession period.

The award of the "Maritime Zone No. 3" comes a month after the Supreme Petroleum Council announced new discoveries of unconventional recoverable oil resources, estimated at 22 billion barrels of oil, in addition to an increase in conventional oil reserves by two billion barrels to reach 107 billion barrels.

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