Eni, PTTEP Get Two Abu Dhabi Offshore Blocks
Italy’s Eni and Thailand’s PTTEP have been awarded two exploration blocks offshore Abu Dhabi by state-owned Abu Dhabi National Oil Company (Adnoc), Eni said January 12.
PTTEP’s subsidiary PTTEP MENA together with its strategic partner Eni Abu Dhabi, a wholly-owned subsidiary of Eni, were awarded exploration blocks - Offshore 1 and Offshore 2. The two blocks, located in the north-west of Abu Dhabi, are the first blocks to be awarded among those that were offered for commercial bidding by the Adnoc in April 2018 as part of Abu Dhabi’s first-ever open block licensing strategy.
Eni CEO Claudio Descalzi said: “This award represents a new important step towards Eni’s expansion in one of the world leading region for the oil and gas industry, not only by participating in producing fields, but also by exploring new blocks. In particular, Offshore Blocks 1 and 2 are extremely important thanks to the virtuous synergies they will have with Ghasha offshore concession.”
Under the terms of the agreements, Eni will operate the concessions and invest with PTTEP over $230mn to explore for oil and gas and appraise the existing discoveries in the two blocks, which cover a combined area of approximately 8,000 km2. 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. Eni Abu Dhabi, the operator of the concession, will hold 70% stake and PTTEP MENA will hold 30% in the blocks.
“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,” PTTEP CEO Phongsthorn Thavisin said in a separate statement issued January 14.
Last year, Eni was also awarded a 10% stake in the Umm Shaif and Nasr offshore concession plus a 5% stake in the Lower Zakum concession as well as recently 25% stake in Ghasha concession.
Banner image courtesy PTTEP