Eni signed today a Concession Agreement for the acquisition of a 70% stake in the Exploration Offshore Block 3, leading a consortium including a wholly owned subsidiary of Thailand’s PTT Exploration and Production Public Company Limited with the remaining 30% stake. Offshore Block 3, located in the north-west offshore of the Abu Dhabi Emirate, is the largest area to be awarded among those blocks that were offered for commercial bidding by ADNOC in May 2019 as part of Abu Dhabi’s second competitive block licensing round.
Under the terms of the agreements, Eni will operate the concession to explore for oil and gas and appraise the existing discoveries in the block, which covers an area of approximately 11,660 square kilometers. The exploration phase of the agreement has a maximum period of up to 9 years and, subject to successful exploration, an overall concession term will extend to 35 years from commencement of the exploration phase for development and production phases in which ADNOC has the option to hold a 60% stake.
New state of the art 3D seismic data has already been acquired for a part of the block, which is in close proximity to existing large oil and gas producing and under development fields, in part participated by Eni, and that is estimated to have a promising potential. The near-field nature of the exploration targets will allow to exploit the synergies with the nearby existing infrastructure.
Eni has been present in Abu Dhabi since 2018 with a 10% stake in the Umm Shaif and Nasr Offshore concession plus a 5% stake in the Lower Zakum concession as well as 25% stake in Ghasha concession that is approaching final FID. Current equity production is around 50,000 bbl/day, in line with the current quotas agreed by OPEC+ members. In 2019 Eni was awarded in the first Abu Dhabi competitive bid round two offshore exploration concessions, Offshore Blocks 1 and 2. Eni is also a shareholder with a 20% equity interest in ADNOC Refining. Eni in the UAE is also present in the Emirate of Sharjah and Ras Al Khaimah.