The Abu Dhabi National Oil Company (ADNOC) awarded the exploration rights for Abu Dhabi Onshore Block 4 to Japan’s INPEX Corporation. Based on the agreement, JODCO Exploration Limited, wholly-owned INPEX subsidiary, will hold and manage the interest in the concession on behalf of INPEX.
INPEX will hold a 100 percent stake in the exploration phase, investing about $176 million, including a participation fee, to explore and appraise oil and gas opportunities in Block 4, an onshore area of 6,116 km2 from Abu Dhabi city to the boundary with Dubai.
Following exploration activities and appraisal of the existing discoveries, INPEX will have the opportunity to develop and produce any commercial discoveries. ADNOC has the option to hold a 60 percent stake in the production phase of the concession.
The agreement, with a term of 35 years, was signed by the UAE Minister of State and ADNOC Group CEO, Sultan Ahmed al-Jaber, and President and CEO of INPEX Corporation Takayuki Ueda.
“This award to INPEX is a further demonstration of how ADNOC is utilizing value-adding partnerships and new technologies to accelerate the exploration and development of Abu Dhabi’s substantial untapped hydrocarbon resources,” said Jaber.
He added that this agreement is an important part of Abu Dhabi’s 2030 smart growth strategy, helping to ensure it stays ahead of the long-term increase in demand for energy and oil and gas products, further strengthening its position as an essential energy provider to the world.
INPEX will appraise two undeveloped oil and gas fields in the new concession area, Ramhan and Hudairiat, targeting the geological formations in which they have rich experience through other Abu Dhabi concessions.
The block’s proximity to the onshore oil producing fields of al-Dabbiya and Rumaitha, as well as the offshore field of Umm al-Dalkh, suggests it has very promising potential.
For his part, Ueda said INPEX puts Abu Dhabi as one of its core business areas, adding: “We look forward to working in close cooperation with ADNOC to help it unlock value from Abu Dhabi’s substantial hydrocarbon resources while further expanding and strengthening our own business portfolio.”
INPEX will leverage and contribute financially and technically to ADNOC’s mega seismic survey, which is already acquiring seismic data onshore and offshore within the block area.
The survey is deploying industry-leading technologies to capture high-resolution 3D images of the complex geology up to 25,000 feet below the surface and will be used to identify potential hydrocarbon reservoirs.
Ras Sadr-1, the first exploration well drilled in Abu Dhabi is located in Onshore Block 4. It was completed in April 1951 having reached a depth of 13,001 feet and was, at the time, the deepest oil well drilled in the Middle East.
Following the recent award of Offshore Block 1, Offshore Block 2 and Onshore Block 3 Concessions, Onshore Block 4 is the latest block awarded to an international bidder of the geographical areas that were offered for commercial bidding by ADNOC in April 2018.
