On 17 March 2019, Abu Dhabi National Oil Company (ADNOC) announced the award of the 6,116 sq km Onshore Block 4 Exploration concession, offered in the Abu Dhabi Licensing Block Bid 2018, to INPEX Corporation. The contract, which includes provision for the appraisal of existing discoveries, will be operated 100% by INPEX subsidiary JODCO Exploration Limited throughout an exploration period extending up to nine years. It stated that the company will invest up to US$ 176 million (AED 646 million), including a participation fee. The contract will be valid for 35 years if extended through to development stage, when ADNOC will have the opportunity to back in and assume a 60% working interest. Following approval from the Supreme Petroleum Council (SPC) the contract was signed in Abu Dhabi by UAE Minister of State and ADNOC Group CEO Dr. Sultan Ahmed Al Jaber and President and CEO of INPEX CORPORATION Takayuki Ueda.    Block 4 is contiguous to the Emirate of Dubai and encompasses over 70km of Abu Dhabi coastline. Much of the acreage has not been licensed for many years and remains underexplored.        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         INPEX Corporation participated in a highly competitive bid round process. 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 offered in the 2018 bid round contain existing discoveries and ADNOC estimated that blocks offered encompassed 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.
Inpex (6116kmÂ²) has been awarded an onshore Block 4 exploration block as part of Abu Dhabiâs first ever competitive bid round for new licensing opportunities.