ADNOC gives a Japanese company the concession to explore a marine area
The Abu Dhabi National Oil Company (ADNOC) today signed a concession agreement for oil and gas exploration. The company acquired "Cosmo Offshore Exploration and Production Ltd.", a wholly owned subsidiary of "Cosmo Holding" of Japan. On oil and gas exploration rights in Abu Dhabi's "offshore zone No. 4".
This is the first concession agreement of its kind approved by the recently formed Supreme Council for Financial and Economic Affairs 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 Hiroshi Kyriama, CEO of the "Cosmo" group, according to Al-Bayan newspaper.
The award of "Marine Zone No. 4" follows the recent award of a number of areas to the American "Occidental" company. A coalition led by the Italian energy company Eni and the Thai company PTTEP.
Under the agreement, "Cosmo" will get a 100% stake in the exploration phase, and will invest up to 532 million dirhams in exploration and drilling of exploration and evaluation wells. Including the participation fee, to explore and evaluate oil and gas opportunities in “Marine Zone No. 4” covering an area of 4,865 square kilometers northwest of Abu Dhabi city.
In the event that successful discoveries with commercial viability are reached during the exploration phase, Cosmo will obtain the right to develop and produce these discoveries with commercial viability. Whereas, ADNOC has the option to retain a 60% stake in the production concession, which has a duration of 35 years from the start of the exploration phase.
