Abu Dhabi National Oil Co. (ADNOC) has agreed to award rights to explore in an onshore block, Onshore Block 3, to U.S.-based oil and gas Occidental Petroleum.
Onshore Block 3 covers an area of 5,782 square kilometres located in the Al Dhafra region.
Under the pact, Occidental will own a 100 percent stake in the exploration phase, investing 893 million dirhams ($244 million), including a participation fee to explore for oil and gas in the block.
Following closure, Occidental will be granted an option to develop and produce any discoveries. ADNOC will hold a 60 percent stake in the production phase of the concession.