Abu Dhabi launches first-ever bidding for 6 oil and gas blocks
abu dhabi — Abu Dhabi National Oil Company (Adnoc) on Tuesday launched a first-ever competitive bidding for 6 of its oil and gas blocks.
Minister of State and Adnoc Group CEO Dr Sultan bin Ahmad Sultan Al Jaber said the launch of new licensing blocks is an important step for Abu Dhabi to unlock new opportunities.
“For the first time in our history, on behalf of the Supreme Petroleum Council, Adnoc will make available 6 new onshore and offshore blocks for competitive bid within Abu Dhabi. Our estimates suggest that these new blocks contain substantial amounts of hydrocarbons,” Al Jaber said during a press conference at Adnoc headquarters.
Out of the 6 new blocks, 4 are onshore and two offshore. In total, the 6 blocks comprise an area of 30,000 square kilometres.
Al Jaber said Adnoc got “unprecedented, overwhelming response from all over the world” since the news broke about new oil blocks. “We welcome our existing partners but we have also received phenomenal response through new partners.”
Al Jaber said Adnoc is looking at ‘strategic value’ in partners.
“This is a new and different approach for Adnoc. It is a win-win for Adnoc and its potential partners.
“Successful bidders will gain the rights to explore for oil and gas. Partners will have the opportunity, alongside Adnoc, to develop and benefit from any discoveries throughout their lifecycle.”
He said Abu Dhabi will continue to deliver on 2030 smart growth strategy of more profitable upstream, more valuable downstream and more sustainable, economic gas supply. “We have significantly reduced our unit costs per barrel, enhanced our capital structure and optimised our partnership model.”
Elaborating on the new growth model, he said: “For Adnoc, this approach provides a financially attractive model, where both the risks and upsides from development and production are shared.
In short, this is an example of how our strategic partnership model is advancing to increase value for each partner, Adnoc, Abu Dhabi and the UAE.”
Meanwhile, Abdulmunim Saif Al Kindy, director, Upstream Directorate, said Adnoc will maintain a 60 per cent share during the production phase while the company will not participate in the exploration phase.
“Exploration phase is open for tender. Adnoc will not participate. The bidder will have freedom to explore using his technology know-how,” Al Kindy said.
He noted the bidding is a great opportunity to join Adnoc in unlocking untapped resources in one of the world’s largest hydrocarbon super-basins.
Al Kindy noted there will be
Adnoc will maintain a 60 per cent share during the production phase while the company will not participate in the exploration phase Abdulmunim Saif Al Kindy, Director, Upstream Directorate
a global roadshow for the interest of the bidders. “It will start from Abu Dhabi on April 23. Registration is open now. The closing date for receipt of bids will be in October. The first bid round is planned to conclude this year with announcement of successful bidders,” Al Kindy said.
There is a website www.adnoc. ae/Block-Bid – where interested bidders can register.
— ashwani@khaleejtimes.com