SHARE
Abu Dhabi National Oil Company (Adnoc) awarded exploration rights for Abu Dhabi’s Offshore Block 3 to a consortium led by subsidiaries of Italy s Eni and Thailand s PTT Exploration and Production Public Company (PTTEP).
Eni will operate the exploration phase of the concession but PTTEP and Eni will collectively hold a 100 per cent stake in the exploration phase. They will invest up to Dh1.51 billion ($412 million) towards exploration and appraisal drilling, including a participation fee, to explore for and appraise oil and gas opportunities in Offshore Block 3, Adnoc said in a statement on Monday.
Offshore Block 3 covers an area of 11,660 square kilometres northwest of Abu Dhabi city. New 3D seismic data for a part of the block, which, combined with its proximity to existing onshore oil and gas fields, suggests the concession area has promising potential, Adnoc said.
A general introduction to oil and gas law in United Arab Emirates
An extract from The Oil and Gas Law Review, 8th Edition
Introduction
The United Arab Emirates (the UAE) produced an average of 3 million barrels of crude oil per day in 2019, maintaining its position as the fourth-ranked OPEC member (and eighth-ranked country worldwide) in terms of crude oil production. In May 2020, daily production decreased to 2.45 million barrels of crude oil per day in response to reduced OPEC targets, a reduction in crude oil prices and the effects of the covid-19 pandemic. Further reductions for the remainder of 2020 are possible, but the UAE is expected to retain its ranking in terms of global production. Ninety-five per cent of the UAE s proven oil reserves are based in the emirate of Abu Dhabi (Abu Dhabi), one of the seven emirates of the UAE, and Abu Dhabi s production accounts for almost all, if not all, of the oil exported from the UAE.