Adnoc reveals oil discoveries in Block 4 concession

Adnoc has discovered significant conventional oil, condensate and gas resources of up to 1 billion barrels of oil equivalent from an exploration well in Abu Dhabi’s onshore Block 4 concession.

The block is operated by Japan's Inpex Corporation and the discovery includes substantial Murban oil resources, Adnoc said in a statement on Tuesday on its LinkedIn page. The discovery is the first from the concession area.

“The next step is to appraise and further quantify these resources, as well as to explore the promising potential in and around onshore Block 4,” it said.

The exploration well was drilled after new insights from Abu Dhabi’s ongoing combined onshore and offshore 3D seismic survey that uses technology to accurately interpret the acquired data, said Adnoc.

"This achievement underscores how Adnoc’s accelerated exploration and development programme is unlocking future value for the UAE," it said.

Adnoc awarded Block 4 exploration rights to the Japan Oil Development Company, a wholly owned subsidiary of Inpex, in 2019 after a competitive bid round.

Inpex is investing up to Dh646 million ($176m), including a participation fee, to explore and appraise oil and gas opportunities in the block that covers an area of 6,116 square kilometres, stretching from Abu Dhabi city to the boundary with Dubai.

Adnoc aims to remain one of the lowest-cost producers and lowest carbon emitters in the oil and gas industry even as it increases its crude production capacity.

It plans to achieve gas self-sufficiency for the UAE, as well as expand its downstream business and strengthen its trading capabilities.

The state oil producer also plans to significantly increase its investment in hydrocarbons and will raise its output capacity to 5 million barrels per day by 2030. It has awarded a number of contracts to different companies to increase its production.

Earlier this month, Adnoc's board approved plans to spend Dh466 billion between 2022 and 2026 to expand its upstream production capacity and downstream portfolio, as well as its low-carbon fuels business and clean energy ambitions.

It also revealed a "significant" increase in national reserves of 4 billion stock-tank barrels (STB) of oil and 16 trillion standard cubic feet of natural gas.

These additional reserves increase the UAE’s hydrocarbon reserves base to 111 billion barrels of oil and 289 trillion standard cf of natural gas, Adnoc said.

Meanwhile, AIQ, Adnoc’s artificial intelligence joint venture with Group 42, and Beyond Limits, said in a separate statement that they have signed a preliminary agreement to collaborate in the development of new AI solutions for the oil and gas industry.

The partnership will help companies in the oil and gas sector to boost performance, optimise operations and increase revenue through AI, the two companies said.

“This collaboration will allow both companies to strengthen their portfolios of enterprise-grade AI solutions for the energy industry,” Omar Al Marzooqi, chief executive of AIQ said.

The partnership will support companies in their energy transition efforts, he said.

On Tuesday, Adnoc Logistics and Services – the state oil producer's maritime and logistics unit – signed an agreement with Borouge that will allow it to transport the petrochemicals company's polymer products from Khalifa Port to other international markets.

"The new agreement will optimise the manufacturing and distribution value chain for Borouge and improve cost per unit, enabling competitive downstream growth of Adnoc's petrochemicals and polymers business," the companies said.

The partnership will also significantly boost the UAE in-country value as 85 per cent of the agreement value is expected to flow back into the local economy.