Occidental Petroleum Corp. will invest $244 million, including a participation fee, in exploration of onshore Block 3 in Abu Dhabi.
Abu Dhabi National Oil Co. awarded the 5,782-sq-km block as part of its competitive bidding round launched in April 2018 (OGJ Online, Apr. 10, 2018).
The block is in the Al Dhafra region near Shah, Asab, Haliba, and Sahl fields.
Oxy 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, Oxy will contribute financially and technically to a large 3D, land and marine seismic survey ADNOC commissioned last year (OGJ Online, July 19, 2018).
The concession agreement has a 35-year term. The block is the first awarded of four onshore blocks offered in the bid round. The two offshore blocks offered in the round have been awarded, both to a combine of Eni and PTT Exploration & Production (OGJ Online, Jan. 14, 2019).
