Eni signed today in Abu Dhabi two Concession Agreements for the acquisition of a 70% stake in the Offshore Block 1 and Offshore Block 2 exploration areas for a duration of 35 years, leading a consortium including Thailand’s PTT Exploration and Production Company Limited (PTTEP) with the remaining 30% stake.
The two blocks, located in the north-west of Abu Dhabi Emirate, are the first blocks to be awarded among those that were offered for commercial bidding by the Abu Dhabi National Oil Company (ADNOC) in April 2018 as part of Abu Dhabi’s first-ever open block licensing strategy. ADNOC has an option to hold a 60 percent stake, following a commercial discovery.
Under the terms of the agreements, Eni will operate the concessions and invest with PTTEP over AED 844 million (US$ 230 million) to explore for oil and gas and appraise the existing discoveries in the two blocks, which cover a combined area of approximately 8,000 square kilometers. The exploration phase of the agreement has a maximum period of 9 years and, subject to successful exploration, an overall concession term will extend to 35 years for development and production phases.
The concession agreements were signed by His Excellency, Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, Claudio Descalzi, CEO of Eni and Phongsthorn Thavisin, President and CEO of PTTEP.
H.E. Dr. Al Jaber said: “These historic agreements on the first blocks to be awarded following a competitive bidding process, represent a major advancement in how Abu Dhabi and ADNOC unlocks and maximizes value from its substantial hydrocarbon resources, in line with the Leadership’s directives”.