The Abu Dhabi National Oil Company (ADNOC) has awarded the exploration rights for the Onshore Block 1 in Abu Dhabi (United Arab Emirates) to a 50-50 consortium of two Indian oil companies, namely Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation Limited (IOL). The consortium will hold a 100% stake in the exploration phase (35-year concession) and will invest up to AED626m (US$170m), including a participation fee, to explore for and appraise oil and gas opportunities in the block. The consortium will then be granted the opportunity to develop and produce any discoveries. ADNOC has the option to hold a 60% stake in the production phase.
ADNOC started Abu Dhabi’s first-ever competitive block bid round in April 2018. Offshore blocks 1 and 2 were awarded to a consortium of Eni and PTT EP, Onshore Block 3 to Occidental Petroleum and Onshore Block 4 to Inpex.
ADNOC has been strengthening its cooperation with India over the past year, becoming the only foreign energy company to partner in India’s strategic petroleum reserves programme. ADNOC is also taking part to a refinery and petrochemical project on India's west coast. Finally, a consortium of ONGC Videsh, IOC and Bharat PetroResources (BPCL) was awarded a 10% stake in Abu Dhabi’s offshore Lower Zakum Concession in February 2018.