Occidental will have a 30% share in an offshore exploration deal in Abu Dhabi
Occidental Petroleum (ticker: OXY) has agreed to a $500 million, two year offshore exploration deal in Abu Dhabi. OXY was one of eleven international oil companies invited to bid for rights to develop Abu Dhabi’s assets in 2012, reports Bloomberg.
Occidental will work with state-owned Abu Dhabi National Oil Co. (ADNOC) to explore the Hail and Ghasha offshore fields in the Persian Gulf. The Houston-based company will have a 30% share in the exploration project that runs through 2017, according to state-run WAM news agency. The agreement covers 3D seismic surveys, drilling of appraisal wells and conducting engineering studies necessary for the fields’ development.
Abu Dhabi, the largest sheikhdom in the United Arab Emirates, is seeking to increase oil production capacity to 3.5 MMBOPD by the end of 2017. Its current volume is 2.8 MMBOPD.
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