UAE - Mubasher: The Abu Dhabi National Oil Company (ADNOC) has entered into an agreement to grant Cosmo E&P Albahriya Limited, a wholly-owned subsidiary of Japan’s Cosmo Energy Holdings Co, the exploration rights for Abu Dhabi’s Offshore Block 4.
Under the agreement, Cosmo will invest up to AED 532 million ($145 million) in exploring and appraising oil and gas opportunities in the block, according to a press release on Wednesday.
This agreement came following the recent exploration block awards to Occidental and a consortium led by Italy’s Eni and Thailand’s PTTEP.
Following a successful commercial discovery, Cosmo, which will hold a 100% stake in the exploration phase, will have the right to develop and produce the discoveries.
Meanwhile, ADNOC has the option to hold a 60% stake in the 35-year production phase of the concession.
The UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, Sultan Ahmed Al Jaber, said: "This concession award builds on our long-standing relationship with Cosmo and reinforces the deep-rooted and successful strategic relationship between the UAE and Japan, ADNOC’s largest importer of oil and gas products."
Meanwhile, the Group CEO of Cosmo, Hiroshi Kiriyama, remarked: "This award represents a significant milestone for us to accelerate our upstream business in Abu Dhabi and further strengthens our seamless and multi-faceted partnership with both Abu Dhabi and ADNOC."
