Eni Consortium Wins UAE Concession Agreements
January 14 2019 - 2:12AM
Dow Jones News
By Patrick Costello
Eni (ENI.MI) said Saturday that it signed two concession
agreements in Abu Dhabi to acquire a majority stake in two offshore
exploration areas as part of a bid by the Italian energy firm to
expand its presence in the United Arab Emirates.
The Abu Dhabi National Oil Company awarded the concessions to a
consortium formed by Eni and Thailand's PTT Exploration &
Production PCL (PTTEP.TH), Eni said.
Eni will hold a 70% stake in the Offshore Block 1 and Offshore
Block 2 exploration areas for 35 years, with PTTEP holding the
remaining 30% stake, it said.
Under the agreements, Eni will serve as the operator, investing
more than 844 million dirhams ($230 million) with PTTEP to explore
for oil and gas, and appraise existing discoveries in the two
blocks' 8,000 square kilometers, Eni said.
The exploration phase of the agreement has a maximum period of
nine years, with the overall concession term extending to 35 years
for development and production phases upon successful
exploration.
The two blocks are the first to be awarded among those offered
for commercial bidding by ADNOC as part of Abu Dhabi's first
open-block licensing strategy, the Italian energy firm said.
ADNOC has an option to hold a 60% stake if a commercial
discovery is made, Eni said.
Write to Patrick Costello at patrick.costello@dowjones.com.
(END) Dow Jones Newswires
January 14, 2019 01:57 ET (06:57 GMT)
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