ABU DHABI, UAE – ADNOC has awarded Cosmo E&P Albahriya Ltd. offshore block 4 in Abu Dhabi’s second competitive block bid round.
The award has been approved by Abu Dhabi’s newly formed Supreme Council for Financial and Economic Affairs (SCFEA) and marks the first of such awards endorsed by the SCFEA.
Under the terms of the agreement, Cosmo will hold a 100% stake in the exploration phase, investing up to $145 million (AED532 million) toward exploration and appraisal drilling.
Located northwest of Abu Dhabi city, block 4 covers an area of 4,865 sq km (1,878 sq mi).
Following a 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. The term of the production phase is 35 years from the start of the exploration phase.
In addition, Cosmo will leverage and contribute financially and technically to ADNOC’s mega seismic survey, which is acquiring 3D seismic data within the block area.