The term of the block’s production phase will be for a period of 35 years from the commencement of the exploration phase.
It is expected that Cosmo, which will hold a 100% stake in the exploration phase of Offshore Block 4, will invest up to $145 million in exploration and appraisal drilling in an area covering 4,865 sq.km to the north of Abu Dhabi.
In case of a successful commercial discovery during the exploration phase, Cosmo will have the right to a production concession to develop and produce such commercial discoveries. ADNOC has the option to hold a 60% stake in the production phase of the concession.
UAE minister of industry and ADNOC 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
- Cosmo was selected after a very competitive bid round. They bring expertise and understanding of our offshore environment, technology, and market access – key ingredients that underpin ADNOC’s targeted approach to strategic partnerships, which is enabling us to maximize value from our assets & resources as we continue to deliver on our 2030 strategy
The Japanese company is the 3rd concession winner from ADNOC’s 2nd international onshore & offshore bidding round.
Occidental and a consortium of Italy’s Eni and Thailand’s PTTEP already won blocks in the round.