Occidental takes Abu Dhabi’s Block 5

Abu Dhabi

ABU DHABI, December 9, 2020 – Abu Dhabi has awarded exploration rights for onshore Block 5 to US independent Occidental, ADNOC announced on Wednesday.

The award was made as part of the bid round launched last year, which is seeing ADNOC hand out licences following a decision last month from the emirate’s Supreme Petroleum Council.

Occidental will hold a 100% stake in the block’s exploration phase, in which it is expected to invest up to USD 140 million. A large part of the block has recently been covered by the acquisition of new 3D-seismic data.

Block 5 lies in proximity to onshore oil and gasfields and spans more than 4,200 square kilometres.

If the US player achieves a commercial discovery, it will have the right to participate in the block’s production phase, with ADNOC holding the option to take 60%.

Read our latest insights on:

• Abu Dhabi

Previous

Oil under pressure from pandemic spikes

Next

Oil up, buoyed by vaccine hopes