PTTEP and its partner win a new offshore exploration block in UAE
Bangkok, December 21, 2020
PTTEP together with its strategic partner “Eni” are once again awarded a new exploration block - Offshore Block 3, the largest offshore exploration block opened in 2019 for the concession bidding in the United Arab Emirates (UAE). This investment expansion provides PTTEP more opportunity to strengthen its investment portfolio in the Middle East.
Mr. Phongsthorn Thavisin, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP) revealed that its subsidiary, PTTEP MENA Limited and Eni Abu Dhabi B.V. (Eni), a subsidiary of Italy-based oil and gas company Eni, were together the successful bidders and awarded the concession for Offshore Block 3 from the Abu Dhabi National Oil Company (ADNOC), the UAE’s national oil company, on behalf of Abu Dhabi’s Supreme Petroleum Council.
The exploration phase of the agreement has a maximum period of up to 9 years and, subject to successful exploration, an overall concession term will extend to 35 years from the commencement of the exploration phase for development and production phases in which ADNOC has the option to hold a 60% stake.
Offshore Block 3, located offshore UAE, lies next to the existing 2 blocks in which PTTEP and Eni won the licensing bidding round in 2019. This is considered as one of the significant milestones in seizing investment opportunity in one of the world’s top petroleum potential area as well as the company’s key strategic areas. All 3 exploration blocks are well-equipped with infrastructure and facilities necessary for oil and natural gas business development, with market demands ready to support the petroleum output.
Mr. Phongsthorn said “This concession award offers another great opportunity for PTTEP to strengthen collaboration with world class strategic partners Eni and ADNOC. The consortium will bring capabilities, experiences and technology to accelerate the development of Offshore Block 3, as well as Offshore Blocks 1 and 2, and lead to a successful discovery. The strategic partnership has been established to jointly contribute to the petroleum development in UAE and be part of the growing industry. Meanwhile, this business progress has also reinforced our presence in the Middle East following the company’s Execute & Expand strategy. Such approach aims to sustainably increase both petroleum reserves and production in the future.”
His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, said “This concession award reinforces ADNOC and Eni’s growing partnership across our value chain and deepens relationship with Thailand’s PTTEP, one of the key markets for our crude oil and products. This again validates our targeted approach to value-add partnerships that contribute the right combination of capital, technology, capabilities and market access to accelerate the development of Abu Dhabi’s hydrocarbon resources. Despite volatile market conditions, we are making very good progress in delivering Abu Dhabi’s second competitive block bid round, underscoring our world-class resource potential and the UAE’s stable and reliable investment environment. We continue to welcome partners that share our vision to sustainably unlock value from our hydrocarbon resources for our mutual benefit, as we deliver on our 2030 strategy and enable long-term returns to the UAE.”
Mr. Claudio Descalzi, Chief Executive officer of Eni, said “This award follows the one achieved in 2019 for exploration Offshore Blocks 1 and 2 offshore by the same consortium, which will contribute through their expertise in exploration to add further resources and exploit all potential synergies with the surrounding fields.”
Offshore Block 3 covers in total 11,660 square kilometers and is the largest offshore exploration block among all areas opened for the concession in UAE. New 3D seismic data has been acquired for a part of the block and suggests the promising potential of this concession area. PTTEP MENA and Eni, the operator of the block, will hold 30% and 70% stake respectively.
Offshore Blocks 1 and 2 are now under subsurface study, petroleum potential assessment with exploration drilling planned in 2021.