Eni Consortium Wins UAE Concession Agreements

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 [e-mail].

(END) Dow Jones Newswires

January 14, 2019 01:57 ET (06:57 GMT)

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