Occidental awarded rights for Abu Dhabi onshore Block 5

Occidental Petroleum Corp. will invest $140 million, including a participation fee, in exploration of onshore Block 5 in Abu Dhabi.

Abu Dhabi National Oil Co. awarded the 4,212-sq-km block as part of its second competitive bidding round launched in 2019.

Occidental will hold a 100% interest during exploration and receive development and production rights to discoveries. ADNOC has the option to hold a 60% stake in production.

During exploration, Occidental will contribute financially and technically to a large 3D seismic survey currently acquiring data within the block area.

The term of the production phase is 35 years from the commencement of the exploration phase.

Based on existing data from detailed petroleum system studies, seismic surveys, exploration and appraisal wells data, estimates suggest the blocks in this second bid round hold multiple billion barrels of oil and multiple tcf of natural gas, ADNOC said.

In February 2019, Occidental was awarded an onshore block in Abu Dhabi’s first competitive bid round (OGJ Online, Feb. 4, 2019). Occidental continues to explore for oil and gas in onshore Block 3 that covers an area of 5,782 sq km in the Al Dhafra region of Abu Dhabi.