Abu Dhabi/UAE: The Abu Dhabi National Oil Company (ADNOC) has signed agreements with Indian consortium comprising Indian Oil Corporation Ltd(IOCL) and Bharat Petroleum Corporation Ltd (BPCL) awarding the exploration rights for Abu Dhabi Onshore Block 1, on Monday. The signed agreements have a collective term of 35 years. The Indian consortium will hold a 100% stake during exploration phase however ADNOC has the option to hold a 60% stake once the production begins. The award has been endorsed by Abu Dhabi’s Supreme Petroleum Council (SPC).
India to invest $170 million in explorationAccording to the terms of the agreement, the consortium will hold a 100 percent stake in the exploration phase. Indian petroleum companies will invest a total USD 170 Million which includes a participation fee, to explore for and appraise oil and gas opportunities in the Block. Post successful exploration and appraisal of existing discoveries the Indian consortium will be granted the opportunity to develop and produce oil from those discoveries. However, ADNOC has the option to hold a 60 percent stake in the production phase.
Deepening India-UAE energy tiesCommenting upon the agreement CEO of ADNOC Dr Al Jaber said “This award highlights the important role of energy cooperation in strengthening the strategic relationship between the UAE and India. It also underlines ADNOC’s 2030 smart growth strategy and our targeted approach to engage with value-add partners who can contribute the right combination of market access, capital, and technology, as we reinforce our position as an essential energy provider to the world”.
“We are elated with the award of Onshore Block 1, which strengthens our historical engagement with ADNOC and the UAE, giving further impetus to the already flourishing relationship in the energy sector”While CMD, BPCL Rajkumar Duraiswamy said “We are elated with the award of Onshore Block 1, which strengthens our historical engagement with ADNOC and the UAE, giving further impetus to the already flourishing relationship in the energy sector”.