(MENAFN- Khaleej Times) Â The Abu Dhabi National Oil Company, or Adnoc, and OMV East Abu Dhabi Exploration have agreed to unlock oil and gas potential in the Eastern Region of Abu Dhabi.
Both energy companies will conduct a state-of-the-art exploration programme consisting of 2D and 3D seismic acquisition and drilling of exploration wells. If the exploration campaign is successful, Adnoc and OMV intend to jointly develop the potential discoveries, according to the agreement.
The exploration activity deal has duration of four years. Robin Mills, head of consulting at Manaar, an energy consulting and project management firm in Dubai, said the announcement has not identified the areas to be explored under this programme.
On the oil and gas potential, he said it depends as some areas of the Eastern Region have oil and some are known for natural gas; for instance, in Al Ain and areas bordering with Dubai there is potential for the latter.
Adnoc director-general Abdulla Nasser Al Suwaidi, in his remarks, said the oil company is looking forward to benefit from the experience and know-how of Austrian companies to develop its operations and activates in the oil and gas sector. In order to secure adequate and reliable supplies, Adnoc is planning to increase oil and gas reserves, he said, adding that it is exerting endless efforts to develop its exploration and production, as well as its refining infrastructure, in addition to petrochemicals through cooperation with its partners using the latest technology for oil and gas exploration and production.
Mills said OMV has a close relationship with Abu Dhabi as a quarter of its shares are owned by the emirate's International Petroleum Investment Company.
In Abu Dhabi, OMV partly owns and manages one of the world's biggest petrochemical projects, Abu Dhabi Polymers, or Borough, in Ruwais. Mills said the Austrian energy giant is already involved in the upstream activity in the Shuwaihat sour gas field in the Western Eegion.
The exploration activities in the Eastern Region would give it a greater presence in Abu Dhabi, he added.
OMV CEO Gerhard Roiss said: "With this step, OMV is on the way to foster its upstream position in the Middle East. Above this, we are broadening cooperation with Abu Dhabi beyond the field of petrochemicals."
A successful exploration campaign might lead to hydrocarbon discoveries and potentially to the development of oil, gas and condensate fields in the Eastern Region of Abu Dhabi. This would help to cover the increasing energy demand of the UAE and the country's long-term export capability.
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