Eni Secures Majority Stake in Abu Dhabi Offshore Oil-And-Gas Block

   By Joshua Kirby

Eni SpA said Monday that it has agreed to acquire a majority stake in an offshore exploration block in Abu Dhabi.

The Italian energy company said it signed a concession agreement to take a 70% stake in Exploration Offshore Block 3 in the emirate. Offshore Block 3 is located to the northwest of Abu Dhabi and is the largest block offered for commercial bidding by the emirate's national oil company as part of a second block-licensing round, Eni said.

Under the concession, Eni will explore for oil and gas and appraise existing discoveries at the block. The exploration phase of the agreement has a maximum period of up to nine years, while an overall concession of term of 35 years for development and production will extend from the beginning of the exploration phase in the case it proves successful. The Abu Dhabi National Oil Company has an option for a 60% stake in the development and production phases, Eni said.

Write to Joshua Kirby at joshua.kirby@dowjones.com; @joshualeokirby

(END) Dow Jones Newswires

December 21, 2020 02:07 ET (07:07 GMT)

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