Indian Consortium Gets Abu Dhabi Onshore Block

The Abu Dhabi National Oil Company (Adnoc) March 25 said it has signed an agreement awarding the exploration rights for Abu Dhabi Onshore Block 1 to a consortium of two Indian state-owned companies, Bharat Petroleum Corp and Indian Oil Corporation.

The consortium will hold a 100% stake in the exploration phase, investing up to $170mn, including a participation fee, to explore for and appraise oil and gas opportunities in the block, Adnoc said. If successful, the Indian consortium will be granted the opportunity to develop and produce any discoveries. Adnoc has the option to hold a 60% stake in the production phase. The agreement has a term of 35 years.

The onshore exploration block awarded to the Indian consortium will target, specifically, the conventional oil and gas opportunities in the area, Adnoc said. However, the area also covers the separate Ruwais Diyab unconventional gas concession. There, Adnoc’s partner, French major Total, is conducting an exploration and appraisal phase, targeted exclusively at tight gas resources in the Diyab formation, which will then be followed by a 40-year production term.

The award of Onshore Block 1 concludes Abu Dhabi’s first-ever competitive block bid round.