ADNOC awards US company wilderness exploration franchise
The Abu Dhabi National Oil Company (ADNOC) announced today the signing of an exploration agreement. Under which the American company "Occidental" obtained the rights to explore oil and gas in "Onshore Zone No. 5" in Abu Dhabi.
The agreement was signed by Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, CEO of ADNOC and its group of companies. And Vicky Hollub, Chairman and CEO of Occidental.
Under the agreement, Occidental will acquire a 100% stake in the exploration phase and will invest 514 million dirhams, including the participation fee. Occidental will explore and evaluate oil and gas opportunities in “Onshore Zone 5”, which covers an area of 4,212 square kilometers.
Occidental will obtain the right to develop and produce these commercially feasible discoveries, while ADNOC will have the option to retain a 60% stake. In the franchise production phase of 35 years from the start of the exploration phase.
The exploration phase will see Occidental leverage and contribute financially and technically to the massive geophysical survey project. Which is implemented by "ADNOC" and provides accurate data on the concession area, according to "WAM".
The award of the "land area No. 5" comes weeks after the Supreme Petroleum Council announced new discoveries of unconventional oil resources. That can be recovered in onshore areas, with quantities of about 22 billion barrels of oil. In addition to an increase in the conventional oil reserves by 2 billion barrels of oil in the Emirate of Abu Dhabi.
In February 2019, Occidental was awarded the “Onshore Zone No. 3” for oil and gas exploration, development and production. Within the first round of competitive Abu Dhabi auctions.
The company continues its exploration operations for oil and gas in that area that covers an area of 5782 square kilometers in the Al Dhafra region in Abu Dhabi.
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