Abu Dhabi’s SCFEA awards three Adnoc-led production concessions

More barrels incoming: Abu Dhabi’s Supreme Council for Financial and Economic Affairs (Scfea) has awarded three separate production concession agreements to Adnoc and its partners, covering both onshore and offshore blocks across the emirate, according to a press release.

The first agreement covers onshore block 4, located north of Abu Dhabi. Adnoc will hold a 60% stake, with the remaining 40% awarded to Japan’s JODCO Exploration, a subsidiary of Inpex Corporation. Inpex has operated the block since 2018, uncovering multiple oil, condensate, and gas reservoirs via wells drilled from 2021, according to a press release (pdf).

The second agreement covers offshore block 2, awarded to a consortium comprising Adnoc with a 60% stake, Eni Abu Dhabi with a 28% stake, and PTTEP MENA with 12%. The block lies west of the Ghasha field and focuses on conventional gas resources. Eni, leading exploration, struck between 1.5-2 tn cubic feet of raw gas in the first well in 2022, with additional deeper-reservoir findings boosting estimates to up to 3.5 tcf.

For offshore block 5, located near the Zakum field and targeting conventional oil, Adnoc will hold a 60% share, while Pakistan International Oil Limited (PIOL) will own the remaining 40%. Pakistani Oil and Gas Development Company — part of a Pakistani consortium that formed PIOL — wrapped up the drilling of two appraisal wells in the block in November last year.

Why is Adnoc locked in at 60%? In Abu Dhabi, rights to explore for and produce oil and gas are typically granted through concessions to Adnoc and selected international partners — either directly to the concession holders, who are bound by a JV agreement, or to jointly owned project companies. Adnoc retains at least a 60% interest in each concession, while international partners can hold up to 40%, ensuring national control over resources, according to legal solutions firm LexisNexis (pdf).

Block after block: Last month, Scfea awarded an oil exploration concession to US-based hydrocarbon exploration firm EOG Resources for the unconventional Onshore Block 3 — spanning some 3.6 sq km in Al Dhafra — with Adnoc overseeing activities as well as retaining the option to join a subsequent production concession.