ADNOC and Malaysian giant Petronas have signed a landmark agreement for Abu Dhabi’s first-ever onshore unconventional oil block covering a 2000-square kilometre concession area in the Al Dhafra region.
“Petronas will hold 100% equity and operatorship to explore and appraise unconventional oil in the concession area for a period up to six years,” Petronas said on Monday.
Following a successful appraisal phase, the parties will enter a production concession with a term of 30 years from the first award of the concession to Petronas, with ADNOC having the option to hold a 50% stake in the production concession, WAM noted.
According to Dr Sultan Al Jaber, group CEO of ADNOC, the “award ushers a new chapter of strategic energy cooperation in the longstanding relationship between the UAE and Malaysia, and it reinforces the UAE’s position as a trusted investment destination”.
“As one of the least carbon intensive oil and gas producers, ADNOC will continue to responsibly unlock value from Abu Dhabi’s vast hydrocarbon resources in a reliable and sustainable manner, to drive local economic growth and support global energy security,” he added.
