Bangkok, January 14, 2019 – PTT Exploration and Production Public Company Limited (PTTEP) by its subsidiary PTTEP MENA Limited together with its strategic partner Eni Abu Dhabi B.V., a wholly-owned subsidiary of Eni, Italy-based oil and gas company, are awarded two exploration blocks - Offshore 1 and Offshore 2 - from the Abu Dhabi National Oil Company (ADNOC), national oil company of the United Arab Emirates (UAE), following the first-ever open block licensing round in the country. The first step of PTTEP in UAE reflects its success in capturing investment opportunity in strategic areas as planned.
PTTEP President and Chief Executive Officer Phongsthorn Thavisin said “We’re excited and enthusiastic to establish our first-ever presence in the UAE by investing in Offshore 1 and Offshore 2 blocks. This achievement opens windows of opportunity for us to collaborate with world-class E&P companies - ADNOC and Eni - and to invest in one of the world’s prolific areas of oil and gas resources. We believe the consortium will bring capabilities, experience and technology to develop these exploration blocks, and that the partnership will create long term values for all involved parties.”
His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said that these historic agreements represent a major advancement in how Abu Dhabi and ADNOC unlocks and maximizes value from its substantial hydrocarbon resources. The award underline ADNOC’s 2030 smart growth strategy and its targeted approach to engage with value-add partners who can contribute the right combination of capital, technology and capabilities to accelerate the development of Abu Dhabi’s hydrocarbon resources. This award builds on ADNOC’s and Eni’s growing partnerships on various fronts, broadens ADNOC’s strategic partnership base as the company adds, for the first time, Thailand’s PTTEP, and reinforces the confidence the international community places on the UAE’s stable, secure and investment environment.”
Claudio Descalzi, Eni Chief Executive officer, said the partnership will see expertise and leading edge technology brought to untapped additional resources in the offshore of Abu Dhabi.
Eni Abu Dhabi, the operator of the concession, will hold 70% stake and PTTEP MENA will hold 30% in the blocks. The exploration activity has a maximum period of nine years, while the overall concession term is 35 years.
The UAE is the world’s seventh-largest oil producer, with about 96 percent of its reserves within the emirate of Abu Dhabi. Located in one of the world’s largest hydrocarbon super-basins, there remains undiscovered and undeveloped potential in the numerous stacked reservoirs.
PTTEP is the E&P flagship of the PTT Group, Thailand’s national oil company. PTT Public Company Limited is one of ADNOC’s largest crude oil customers purchasing up to 100,000 barrels of various ADNOC crude grades per day and Thailand is the second largest economy in South-East Asia.