ABU DHABI, 5 December 2022 – PETRONAS Abu Dhabi Sdn Bhd, a wholly-owned subsidiary of PETRONAS, inked a historic agreement with Abu Dhabi National Oil Company (ADNOC) today, to explore and appraise Unconventional Onshore Block 1 covering a 2,000 square km concession area in the Al Dhafra region.
The agreement was signed by PETRONAS President and Group Chief Executive Officer, Datuk Tengku Muhammad Taufik and UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, Dr. Sultan Ahmed Al Jaber.
The signing of the agreement was witnessed by Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah Ibni Almarhum Sultan Haji Ahmad Shah Al-Musta’in Billah and UAE President Sheikh Mohamed bin Zayed Al Nahyan. Also present was the Minister of International Trade and Industry, Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz.
Tengku Muhammad Taufik said the development is a red-letter day for the company. “I am very pleased to note that the United Arab Emirates and Malaysia’s long and fruitful bilateral ties have progressed to a partnership between PETRONAS and ADNOC.
This partnership bears a strong testament to our deep unconventional expertise in Canada and Argentina which we developed over the last decade, and we look forward to bringing this experience to the world-class resources in Abu Dhabi. It will also see PETRONAS widen its global unconventional energy footprint to include the United Arab Emirates in its existing portfolio,” said Tengku Muhammad Taufik.
Dr. Al Jaber said: “As one of the least carbon-intensive oil and gas producers, ADNOC will continue to responsibly unlock value from Abu Dhabi’s vast hydrocarbon resources in a reliable and sustainable manner, to drive local economic growth and support global energy security, in line with the wise directives of the UAE’s leadership.
As such, we have driven the de-risking of Abu Dhabi’s unconventional oil resources and look forward to building on this with PETRONAS to realize the full potential of Unconventional Onshore Block 1.”
PETRONAS will hold 100 per cent equity and operatorship to explore and appraise unconventional oil in the concession area for a period of up to six years.
Following a successful appraisal phase, the partners can enter a production concession in which ADNOC has the option to hold a 50 per cent stake.
— Akses Malaysia
