Eni SPA signed a concession agreement for 70% acquisition in Exploration Offshore Block 3, located northwest of Abu Dhabi, UAE. Eni will operate the block with a wholly owned subsidiary of Thailand’s PTT Exploration and Production Public Company Ltd. (PTTEP) as partner (30%). Block 3 covers about 11,660 sq km and was the largest area awarded by Abu Dhabi National Oil Co. (ADNOC) in May 2019 as part of Abu Dhabi’s second competitive block licensing round.
Under terms of agreement, Eni will explore for oil and gas and appraise existing discoveries within the block. The exploration phase of the agreement has a maximum period of 9 years. Subject to successful exploration, the overall concession term for development and production will extend 35 years from commencement of exploration. ADNOC has the option to hold a 60% stake in the production phase.
New 3D seismic data has already been acquired for part of the block, which is near existing fields which are producing or under development. Block 3 will take advantage of nearby infrastructure to expedite exploration.
ADNOC last year awarded Offshore Blocks 1 and 2 to an Eni-PTTEP consortium, with ADNOC retaining a similar 60% production-phase option (OGJ Online, Jan. 14, 2020).
