UAE’s ADNOC awards offshore exploration blocks to Eni, PTTEP

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ADNOC has awarded two offshore exploration blocks to Eni and PTTEP. (Courtesy ADNOC)
Updated 12 January 2019
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UAE’s ADNOC awards offshore exploration blocks to Eni, PTTEP

ABU DHABI: UAE’s ADNOC has awarded two offshore exploration blocks to Eni and PTTEP, following Abu Dhabi’s first competitive block licensing round.

 

The two blocks in the northwest of Abu Dhabi – Offshore 1 and Offshore 2 – are the first blocks to be awarded among the geographical areas that were offered for commercial bidding by ADNOC, in April 2018, as part of Abu Dhabi’s first competitive open block licensing strategy.

The award of the two blocks was endorsed by Abu Dhabi’s Supreme Petroleum Council.

Under the terms of the agreements, Eni will operate the concessions and PTTEP and Eni will invest at least 844 million dirhams ($230 million) to explore for oil and gas, and appraise the existing discoveries in Offshore Block 2. At the same time, the exploration and appraisal plans for the Offshore Block 1 will be finalized. The two blocks cover a combined area of approximately 8,000 square kilometers.


Saudi Aramco boss reveals gas and LNG ambitions amid petchems push

Updated 2 min 7 sec ago
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Saudi Aramco boss reveals gas and LNG ambitions amid petchems push

London: Saudi Aramco is eyeing potential gas and LNG acquisitions as it also prepares for the potential purchase of the Kingdom’s biggest chemical maker, CEO Amin Nasser revealed on Tuesday.

He made the disclosure in an interview with Bloomberg TV on the sidelines of the World Economic Forum in Davos.

“We are in discussions in different countries currently with a lot of partners. We are reviewing these opportunities to make final decisions in terms of investment,” Nasser said.

“A lot of it is in partnerships with leading companies around the world and it is either in gas investment, LNG investment or both.”

Aramco has also been in discussions with a credit rating agency ahead of a planned bond sale.

It comes ahead of the potential purchase of Saudi Basic Industries Corporation (SABIC), the Kingdom’s biggest chemical maker and a key part of Aramco’s ambitions to grow its global petrochemicals business.

“We will decide soon how much we would like to take from the bond market. Definitely it is going to be an international bond. We are currently in discussion with regard to how much and where,” Nasser said.

He said that the purchase price for SABIC was still under discussion.

“We are in discussion currently with the Public Investment Fund about acquisition of 70 percent of the share of SABIC. We are in discussion with regard to the price at this stage,” he said.

Earlier this month Saudi Energy Minister Khalid Al-Falih said Aramco would issue bonds in the second quarter of 2019.

Aramco’s planned acquisition of SABIC is expected to involve buying all or nearly all of the 70 percent stake in the chemicals company held by the Public Investment Fund (PIF), the Kingdom’s principal sovereign wealth fund.

Nasser said that there was no plan to acquire the 30 percent of the company that is currently publicly traded in Saudi Arabia.