MOSCOW (MRC) -- Abu Dhabi National Oil Co, the UAE's biggest energy producer, has awarded Italy's Eni and Thailand's PTTEP an exploration concession amid plans to boost oil production capacity by 25% to 5 million b/d by 2030, reported S&P Global.
The Eni-PTTEP consortium won rights to look for oil and gas in Offshore Block 3, the second award in ADNOC's second bidding round, the company said in a statement Dec. 21. Occidental Petroleum won the first concession in the second bidding round, which was launched in 2019.
PTTEP and Eni will hold 100% in the exploration phase with investments up to Dirham 1.51 billion (US412 million), which include exploration and appraisal drilling, and a participation fee to explore for and appraise oil and gas opportunities. Eni will be the operator in the exploration phase for the block that spans an 11,660 sq km area.
"Following successful commercial discovery during the exploration phase, Eni and PTTEP will, together, have the right to a production concession to develop and produce such commercial discoveries," ADNOC said.
"New 3D seismic data has been acquired for a part of the block, which, combined with its proximity to the existing onshore oil and gas fields, suggests the concession area has promising potential."
Together, Eni and PTTEP will have the right to a production concession to develop and produce commercial discoveries following the exploration phase. ADNOC has the option to hold a 60% stake in the production phase of the 35-year concession, which starts with commencement of the exploration phase.
In January 2019, a consortium led by Eni and PTTEP won two offshore blocks in Abu Dhabi's first competitive bid round. They continue to explore for oil and gas in the area located northwest of Abu Dhabi city.
Eni and PTTEP will also participate technically and financially in ADNOC's "mega" 3-D seismic survey that will "capture high-resolution 3D images of the complex geology at ultra-deep locations below the surface and will be used to identify potential hydrocarbon reservoirs," the company added.
ADNOC is ramping up exploration for oil and gas as it seeks to boost its gas output and increase oil production capacity by 25% to 5 million b/d by 2030.
Abu Dhabi, the oil-rich emirate in the seven-member UAE federation, is forging ahead with expanding its hydrocarbons sector in the face of the coronavirus pandemic, by also announcing a plan for ADNOC to spend Dirham 448 billion (USD122 billion) over the next five years.
The new award follows the announcement from Abu Dhabi's Supreme Petroleum Council - its highest energy decision making body - about the discovery of recoverable unconventional oil resources estimated at 22 billion stock tank barrels, or STB, and an increase in conventional oil reserves of 2 billion stock tank barrels, boosting the UAE's conventional reserves to 107 billion STB.
In the second round, Abu Dhabi's five blocks that were opened for bidding - three of which are offshore and two onshore - are known as Offshore Block 3, Offshore Block 4, Offshore Block 5, Onshore Block 5 and Onshore Block 2, with the latter offering two separate licensing opportunities for conventional and unconventional oil and gas, respectively.
In total, the five blocks comprise an area of about 34,000 sq km.
ADNOC's first bid round, which concluded in March 2019, awarded Onshore Block 1 to Bharat Petroleum Corp. and Indian Oil Corp. Onshore Block 3 was awarded in a concession to Occidental Petroleum, and Onshore Block 4 was awarded to INPEX Corp.
As MRC reported previously, in early May, 2020, Abu Dhabi National Oil Company (ADNOC) began a gradual restart of its Ruwais oil refinery complex after a scheduled maintenance shutdown. The Ruwais complex, which has capacity of 835,000 barrels per day, was shut down early this year, the ADNOC spokesman said.
And in late July 2019, ADNOC said its Ruwais refinery west cracker was offline for maintenance.
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According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.