On 12 January 2019, the Supreme Petroleum Council (SPC) and Abu Dhabi National Oil Company (ADNOC) awarded a consortium of Eni and PTT Exploration and Production (PTTEP) exploration rights to Offshore Block 1 and Offshore Block 2 as offered in the Abu Dhabi Licensing Block Bid 2018. The consortium led by Eni (70%) will invest at least US$ 239 million (Dh844 million) to explore and appraise the two blocks that encompass a combined area in excess of 8,000 sq km. They will hold a 100% stake during the initial exploration period, where after ADNOC will assume its customary 60% stake in any future development and the international participant interests will be diluted correspondingly.    SPC      had indicated on 4 November 2018 that it expected the first exploration      and production licenses relating to the Abu Dhabi Licensing Block Bid 2018 to be awarded during the first      quarter of 2019. It previously been indicated that the government intended      to announce initial results before the end of 2018.   The      companies participated in a competitive bid round. UAE Minister of State      and Chief Executive Officer of ADNOC Group H.E. Dr. Sultan Ahmed Al Jaber      confirmed that â39 bidding parties from all over the worldâ had elected to      actively participate in the bid round which closed during October 2018.      ADNOC had launched      the bid round in early April 2018 after delineating four onshore and two      offshore blocks for commercially competitive bidding. Abu Dhabi remains      underexplored and the blocks on offer encompass significant, multi-billion      barrel yet-to-find potential.Â      Some of the blocks      contain existing discoveries, in addition to which ADNOC estimates that      there are 310 undrilled reservoirs located within 110 mapped prospects and      leads. In addition to the countryâs conventional potential, the offered      blocks also contain significant unconventional resource potential.      Successful bidders entered agreements that, providing defined targets are      achieved in the exploration phase, will give them the opportunity to then      develop and produce any discoveries with ADNOC, under terms set out in the      bidding package.     During the IHS      Markit CERAWeek conference held in Houston during March 2018, H.E. Sultan      Ahmed Al Jaber had outlined the groupâs strategy for future growth. Among      its targets are a significant expansion of its downstream sector      operations and the creation of innovative new partnerships with      international players throughout the energy chain. He also confirmed that      ADNOC planned to hold its first competitive upstream bid round.     Offshore Block 1      and Offshore Block 2 will be operated by Eni (70%) and PTTEP (30%)      throughout the initial exploration phase of the contracts.
SPC and ADNOC awarded a consortium of Eni (70%) and PTTEP (30%) exploration rights to Offshore Block 1 and Offshore Block 2 as offered in the Abu Dhabi Licensing Block Bid 2018.