Cosmo E&P Albahriya Ltd., a subsidiary of Japan’s Cosmo Energy Holdings Co. Ltd., was awarded exploration rights for Abu Dhabi’s Offshore Block 4 by Abu Dhabi National Oil Co. (ADNOC). The block covers 4,865 sq km northwest offshore of Abu Dhabi city.
Under terms of the agreement, Cosmo will hold 100% in the exploration phase and invest up to $145 million towards exploration and appraisal drilling, including a participation fee.
Following successful commercial discovery during the exploration phase, Cosmo will have the right to a production concession to develop and produce such commercial discoveries. ADNOC has the option to hold 60% in the production phase of the concession. The term of the production phase is 35 years from the commencement of the exploration phase.
In addition to drilling exploration and appraisal wells, the exploration phase will see Cosmo contribute financially and technically to ADNOC’s 3D seismic survey within the block area.
The award has been approved by Abu Dhabi’s newly formed Supreme Council for Financial and Economic Affairs (SCFEA) and marks the first of such awards endorsed by the SCFEA.
