SCFEA grants new O&G concession to PETRONAS

Image: Abu Dhabi Media Office

Abu Dhabi’s Supreme Council for Financial and Economic Affairs (SCFEA) has awarded a new oil and gas exploration concession for Onshore Block 2 in the Al Dhafra region of Abu Dhabi to PETRONAS, Malaysia’s national oil and gas company.

This marks the third exploration concession granted to PETRONAS.

The Onshore Block 2 concession covers an area of 7,320 square kilometres, with PETRONAS holding 100 per cent of the exploration rights.

The agreement will see the Malaysian energy giant implement advanced technology and artificial intelligence solutions during its exploration operations, aimed at optimising the extraction and utilisation of Abu Dhabi’s energy resources.

This concession follows the successful completion of Abu Dhabi’s initial exploration concession bid rounds in 2018 and 2019, which collectively awarded 11 blocks to various international energy partners.

The SCFEA oversees the emirate’s financial, investment, economic, petroleum, and natural resources policies, ensuring effective performance monitoring and precise policy implementation.

The council is committed to collaborating with strategic investment entities in Abu Dhabi to fulfill the goals of the emirate’s long-term vision and promote sustainable economic development.

Read: ADNOC, PETRONAS, Storegga tie up on offshore CCS project in Malaysia

In other news, SCFEA awarded a production concession agreement to Urja Bharat (UBPL) earlier this month.

UBPL is a joint venture between Indian Oil Corporation and Bharat Petroleum Corporation. This agreement follows UBPL’s successful exploration phase, which began with an exploration concession awarded in March 2019 and included an investment of nearly $164m.

The production concession encompasses an area of up to 6,162 square kilometres, granting UBPL 100 per cent rights to the concession. Initial exploration in Onshore Block 1, particularly in the 38 square kilometre Ruwais area, has produced encouraging results.

This area contains conventional undeveloped oil and gas resources, and its development is expected to support Abu Dhabi’s efforts to enhance its hydrocarbon sector.