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Wed 1 May 2019 03:53 PM

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Abu Dhabi launches round 2 bids for oil, gas resources

Abu Dhabi National Oil Company announces details of the second round of five new geographical oil and gas blocks open for bidding

Abu Dhabi launches round 2 bids for oil, gas resources
Abu Dhabi’s five new blocks open for bidding comprise an area of approximately 34,000 sq km.

Abu Dhabi National Oil Company (Adnoc) announced on Wednesday the details of the second round of five new geographical oil and gas blocks open for bidding for both conventional and unconventional resources.

The successful bidders will enter into agreements granting them exploration rights and will be granted the opportunity to develop and produce any discoveries under terms set out in the bid package.

The bidding round is part of Abu Dhabi’s block licensing strategy.

Abu Dhabi’s five new blocks open for bidding comprise an area of approximately 34,000 sq km.

This second licensing bid round follows the conclusion, in March, of the award of the blocks in Abu Dhabi’s debut competitive exploration and production bid round, which covered and area of about 30,000 sq km and generated significant interest from prospective international bidders.

The blocks in the first licensing bid round and this second bid round collectively cover approximately two-thirds of Abu Dhabi’s territory.

One of the blocks offered – Offshore Block 3 – is, area-wise, the largest block offered by Abu Dhabi in both the 2018 and 2019 block bid rounds, with an area of more than 11,000 sq km.

Dr Sultan bin Ahmad Sultan Al Jaber, Minister of State and Adnoc Group CEO, said: "The launch of Abu Dhabi’s second licensing bid round builds on the momentum of the first and very successful competitive bid round.

"It demonstrates how Adnoc’s expanded approach to partnerships is enabling us to utilise value-add partnerships and smart technologies to drive new commercial opportunities and efficiently accelerate the exploration and development of Abu Dhabi’s untapped resources, in line with the leadership’s directives."

Based on existing data from detailed petroleum system studies, seismic surveys, exploration and appraisal wells data, estimates suggest the blocks in the second bid round hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas.

The UAE is the world’s seventh-largest oil producer, with about 96 percent of its reserves within the emirate of Abu Dhabi.

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