The Abu Dhabi National Oil Company (ADNOC) has inked agreements with the Indian Consortium of Bharat Petroleum Corporation Limited and Indian Oil Corporation Limited, awarding them the exploration rights for onshore block 1, ADNOC announced on March 25.
The 35-year agreements were signed by Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC CEO; Duraiswamy Rajkumar, Chairman and Managing Director of Bharat Petroleum Corporation; and Sanjiv Singh, Chairman of Indian Oil Corporation.
“The consortium of Bharat Petroleum Corporation and Indian Oil Corporation, both of whom ADNOC already partners with offshore, was selected after a very competitive bid round. The open bidding process represents a major advance in how ADNOC is accelerating the exploration and development of Abu Dhabi’s substantial untapped hydrocarbon resources,” Al Jaber said.
During the exploration phase, the Indian consortium will hold a 100% stake and invest around $170 million to explore oil and gas in the block.
In the production phase, the consortium will have the ability to develop and produce any discoveries, while ADNOC will have the option to own a 60% stake.
The award was authorized by Abu Dhabi’s Supreme Petroleum Council (SPC) and comes in line with the continued expansion of the business relationship between the two countries.