The Abu Dhabi National Oil Company (ADNOC) signed agreements, awarding the exploration rights for Abu Dhabi Onshore Block 1 to a consortium of two Indian oil companies, Bharat Petroleum Corporation Limited and Indian Oil Corporation Limited. The award has been endorsed by Abu Dhabi’s Supreme Petroleum Council (SPC) and represents a further deepening of the fast-growing UAE-India energy relationship as well as the continued expansion of ADNOC’s strategic partnerships with those who can provide access to key growth markets for the company’s crude oil and products.
The consortium will hold a 100 percent stake in the exploration phase, investing up to AED 626 million (US 170 million), including a participation fee, to explore for and appraise oil and gas opportunities in the Block.
Following successful exploration activities and appraisal of the existing discoveries the Indian consortium will be granted the opportunity to develop and produce any discoveries. ADNOC has the option to hold a 60 percent stake in the production phase.
The agreements, which, collectively, have a term of 35 years, were signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, Duraiswamy Rajkumar, Chairman and Managing Director of Bharat Petroleum Corporation, and Sanjiv Singh, Chairman of Indian Oil Corporation.