Occidental Petroleum Corp. will invest $244 million, including a participation fee, in exploration of onshore Block 3 in Abu Dhabi.
The block is in the Al Dhafra region near Shah, Asab, Haliba, and Sahl fields.
Oxy will hold a 100% interest during exploration and receive development and production rights to discoveries. ADNOC has the option to hold a 60% stake in production.
During exploration, Oxy will contribute financially and technically to a large 3D, land and marine seismic survey ADNOC commissioned last year (OGJ Online, July 19, 2018).
The concession agreement has a 35-year term. The block is the first awarded of four onshore blocks offered in the bid round. The two offshore blocks offered in the round have been awarded, both to a combine of Eni and PTT Exploration & Production (OGJ Online, Jan. 14, 2019).