Abu Dhabi National Oil Co. (Adnoc), an oil company, has inked agreements awarding the exploration rights for Abu Dhabi Onshore Block 1 to a consortium of two Indian oil companies, Bharat Petroleum Corp. Ltd. and Indian Oil Corp. Ltd (IOCL).
Adnoc said that the consortium will hold a 100 percent stake in the exploration phase of the project, committing up to 626 million dirhams ($170 million), including a participation fee, to explore and appraise oil and gas opportunities.
Following successful exploration activities and appraisal of the existing discoveries, Bharat Petroleum and Indian Oil Corp. will be granted the opportunity to develop and produce any discoveries.
Adnoc has the option to hold a 60 percent stake in the production phase. The onshore exploration block awarded to the consortium will target the conventional oil and gas opportunities in the area.