Occidental Awarded Abu Dhabi Onshore Block 5
Occidental Petroleum Corp. has signed a new concession agreement with the Supreme Petroleum Council of the Emirate of Abu Dhabi and the Abu Dhabi National Oil Co. (ADNOC) for Onshore Block 5.
Under the terms of the agreement, Occidental will hold a 100% operated interest in the exploration phase of the block and will invest up to US$140 million (including a participation fee) towards exploring for and appraising opportunities in the block. ADNOC will have the option to hold a 60% stake in the production phase of the concession, which will have a term of 35 years from the commencement of the exploration phase.
“We are honored to partner with ADNOC on a second exploration concession contiguous to Onshore Block 3, where we have completed two exploration wells with extremely promising results. We see significant potential in Onshore Block 5 and, in partnership with ADNOC, will continue to work to help unlock the vast untapped resources in Abu Dhabi,” said Vicki Hollub, President & CEO of Occidental.
Onshore Block 5 covers an area of approximately 4,212 sq. km located in the east of the U.A.E., along the Emirate’s border with Oman. It is the first onshore block to be awarded among the geographical areas that were offered for commercial bidding by ADNOC in May 2019, as part of Abu Dhabi’s second competitive block bid round. The block lies adjacent to the northern part of Onshore Block 3, which is also operated by Occidental. New 3D seismic data already covers a large part of the block which, combined with its proximity to the existing onshore oil and gas fields, suggests that the area has resource potential.