On 2 February 2019, Abu Dhabi National Oil Company (ADNOC) announced the award of the 5,782 sq km Onshore Block 3 concession, offered in the Abu Dhabi Licensing Block Bid 2018, to Occidental Petroleum Corporation. The contract, which will be operated 100% by Occidental throughout an exploration period extending up to nine years, required a US$ 244 million (Dhs 893 million) signature bonus and will be valid for 35 years if extended through to development stage. It is contiguous to the Shah Sour Gas development project operated by ADNOC Sour Gas in which Occidental has a significant investment.    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 subsequently approved the      initial award of two offshore blocks to a consortium led by Eni SpA in      January 2019.Â      Occidental 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 join the bid      round process, which closed during October 2018.     ADNOC had launched its inaugural      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.
Occidental Petroleum (100%) has been awarded onshore Block 3 (5782 kmÂ²), the first onshore block to be awarded among the areas that were offered for commercial bidding by ADNOC in April 2018. ADNOC has the option to hold a 60% stake in the production phase of the concession. 