Bharat Petroleum, Indian Oil Corp bag onshore exploration rights from UAE’s ADNOC

By: |
Published: March 25, 2019 12:44:35 PM

Two Indian companies - Bharat Petroleum Corp Ltd and Indian Oil Corp - will together hold a 100 per cent stake in the exploration phase for Onshore Block 1, ADNOC said in a statement.

The Indian firms will invest up to 626 million dirhams (0 million).

Abu Dhabi National Oil Company (ADNOC) said on Monday it had signed an agreement with an Indian consortium awarding the latter the exploration rights for an onshore block. Two Indian companies – Bharat Petroleum Corp Ltd and Indian Oil Corp – will together hold a 100 per cent stake in the exploration phase for Onshore Block 1, ADNOC said in a statement.

The Indian firms will invest up to 626 million dirhams ($170 million), including a participation fee, to explore and appraise oil and gas in the block. If successful, the consortium will be able to develop and produce any discoveries with an option for ADNOC to hold a 60 per cent stake in the production phase. The agreements, which have a term of 35 years, conclude Abu Dhabi’s first-ever competitive block bid round, ADNOC said.

“The onshore exploration block awarded to the Indian consortium will target, specifically, the conventional oil and gas opportunities in the area,” ADNOC said.

The Onshore Block 1 area also covers the separate Ruwais Diyab Unconventional Gas Concession, where France’s Total has the exploration rights for tight gas in the Diyab formation. ADNOC has awarded Offshore Blocks 1 and 2 to Italy’s ENI and Thailand’s PTT Exploration and Production Pcl; Onshore Block 3 to U.S.-based Occidental Petroleum; and Onshore Block 4 to Japan’s Inpex Corp.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Turning the corner? India’s power capacity addition falls to a two-decade low
2FE CFO awards: Lifetime Achievement award goes to Koushik Chatterjee
3IDBI Bank still in public sector; no threat of job losses