The state-owned oil company, Abu Dhabi National Oil Company (ADNOC), has launched a second competitive bid round for hydrocarbons in May 2019.
In April 2018, as part of Abu Dhabi’s new block licensing strategy, ADNOC launched its first-ever competitive bid round for new licensing opportunities for the exploration, development and production of oil and gas in Abu Dhabi.
Following the successful conclusion of the debut round, ADNOC has launched a second competitive licensing bid round for another set of major onshore and offshore blocks across the emirate of Abu Dhabi.
Salient features of Abu Dhabi Licensing Block Bid Round 2019 are hereunder:
• Offering unconventional reserves for the first time as it looks to attract international oil companies to explore for oil and gas.
• All the bidders have the option to bid for both conventional and unconventional.
• The Arabian Basin has very high potential for unconventional and a lot of that in the UAE.
• Five blocks have been announced for commercially competitive bidding in this second round, three of which are offshore and two are onshore.
• Offshore Blocks 3, 4 and 5, as well as onshore Blocks 5 and 2 are open for bids, with the latter offering two separate licensing opportunities for conventional and unconventional hydrocarbons.
• Based on existing data from detailed petroleum system studies, seismic surveys, petro physical study of log and core samples analysis of appraisal wells, estimates suggest these new blocks could hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas.
• Some of the blocks already have discoveries and within the combined area there are 290 targeted reservoirs from 92 prospects and leads. In addition to the country’s conventional potential, one of the offered blocks is expected to contain significant unconventional resources.
A roadshow of technical and commercial information on the new blocks will take place in Abu Dhabi on May 22, 2019.
• Bidders have to confirm their participation through the submission of an Expression of Interest and will be able to access a comprehensive data package on the five blocks.
• Full details on the blocks including regional geological information and well and seismic data, in both raw and interpreted form, will be made available in the data package that can be accessed after the roadshow.
• The closing date for the receipt of bids will be at the end of November 2019, after which ADNOC will conduct the evaluation of the bids, using the criteria set out in the bidding instructions, and the SPC will award the successful bidders.
• Following the bid round, the successful bidders will enter agreements that, provided defined targets are achieved in the exploration phase, will give them the opportunity to then develop and produce any discoveries, under terms that will be set out in the bidding package.
In the first bid round, ADNOC signed agreements with Consortium of two Indian Oil companies, Bharat Petroleum and Indian Oil Corporation, awarding rights to explore Onshore Block 1; US firm Occidental awarding rights to explore Onshore Block 3 and Onshore Block 4 was awarded to Japan’s Inpex. Two offshore blocks, Offshore 1 and Offshore 2, awarded to a consortium led by Italy’s multinational energy company, Eni, and Thailand’s PTT Exploration and Production Public Company Limited (PTTEP). Onshore block 2, which had been tendered as part of the first bid round, has been packaged with conventional and shale components for the second round, with companies having the option to bid separately.
To find more details on this, please visit ADNOC Website.