PTTEP makes foray into UAE with joint venture

SET-listed oil and gas drilling firm PTT Exploration and Production Plc (PTTEP) has initiated its business presence in the United Arab Emirates (UAE). Through its subsidiary PTTEP MENA Ltd, the company has teamed up with Eni Abu Dhabi BV, a wholly-owned subsidiary of Eni, an Italy-based oil and gas company. Both companies were awarded two exploration blocks — Offshore 1 and Offshore 2 — by the Abu Dhabi National Oil Company (Adnoc), the national oil company of UAE. Phongsthorn Thavisin, president and chief executive of PTTEP, said this first step in UAE represents capturing an investment opportunity in strategic areas as planned. “It will open windows of opportunity for PTTEP to collaborate with overseas E&P companies — Adnoc and Eni — and to invest in one of the world’s most prolific oil and gas resource areas,” he said. “PTTEP believes the consortium will bring capabilities, experience and technology to develop these exploration blocks and create long-term value for all involved parties.” Claudio Descalzi, Eni’s chief executive, said the partnership brings expertise and leading-edge technology to untapped resources in offshore Abu Dhabi. Eni Abu Dhabi, the operator of the concession, will hold a 70% stake, and PTTEP MENA will hold 30% of the blocks. The exploration activity has a maximum period of nine years, while the overall concession term is 35 years. The UAE is the world’s seventh largest oil producer, with 96% of its reserves within the emirate of Abu Dhabi. Located in one of the world’s largest hydrocarbon super-basins, there remains undiscovered and undeveloped potential in the numerous stacked reservoirs. Sultan Ahmed Al Jaber, UAE’s Minister of State and Adnoc’s chief executive, said the agreement underlines its smart growth strategy and its targeted approach to engage with value-added partners that can contribute the capital, technology and capabilities to accelerate the development of Abu Dhabi’s hydrocarbon resources. PTT Plc is one of Adnoc’s largest crude oil customers, buying up to 100,000 barrels of various crude grades per day.