ENI AWARDED OPERATORSHIP OF ONE OF ABU DHABI’S LARGEST OFSSHORE CONCESSIONS
Eni expands its presence in UAE with the award of a majority stake and operatorship in Offshore Block 3, one of Abu Dhabi’s largest offshore exploration concessions.
The Italian giant signed a Concession Agreement for the acquisition of a 70% stake in the Exploration Offshore Block 3, leading a consortium including a wholly owned subsidiary of Thailand’s PTT Exploration and Production Public Company Limited (PTTEP) with the remaining 30% stake.
Offshore Block 3, located in the north-west offshore of the Abu Dhabi Emirate, is the largest area to be awarded among those blocks that were offered for commercial bidding by ADNOC in May 2019 as part of Abu Dhabi’s second competitive block licensing round.
Under the terms of the agreements, Eni will operate the concession to explore for oil and gas and appraise the existing discoveries in the block, which covers an area of approximately 11,660 square kilometers. The exploration phase of the agreement has a maximum period of up to 9 years and, subject to successful exploration, an overall concession term will extend to 35 years from commencement of the exploration phase for development and production phases in which ADNOC has the option to hold a 60% stake.
New state of the art 3D seismic data has already been acquired for a part of the block, which is in close proximity to existing large oil and gas producing and under development fields, in part participated by Eni, and that is estimated to have a promising potential. The near-field nature of the exploration targets will allow to exploit the synergies with the nearby existing infrastructure.
Claudio Descalzi, Eni CEO, said: “This award follows the one achieved by the same consortium in 2019 for offshore exploration Blocks 1 and 2 and represents a further important step towards the realisation of Eni’s strategy to become a leading actor in the development and production in Abu Dhabi, a leading region for the oil and gas industry, while contributing through its expertise in exploration to add further resources and exploit all potential synergies with the surrounding fields. It also further strengthens our relationship with our valuable partner PTTEP. Offshore Block 3 represents a challenging opportunity that can unlock significant value thanks to exploration and appraisal of shallow and deep reservoirs”.
Eni has been present in Abu Dhabi since 2018 with a 10% stake in the Umm Shaif and Nasr Offshore concession plus a 5% stake in the Lower Zakum concession as well as 25% stake in Ghasha concession that is approaching final FID.
(Source: ENI – Image: ADNOC)
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