ADNOC identified large conventional oil, condensate, and gas potential worth up to 1 billion barrels of oil equivalent from an exploration well in Abu Dhabi’s onshore Block 4 concession. The exploration well was drilled as a result of new findings from Abu Dhabi’s continuing combined onshore and offshore 3D seismic survey, which employs technology to precisely analyse the data.

After a competitive bid round, Adnoc awarded Block 4 exploration rights to the Japan Oil Development Company, a wholly owned subsidiary of Inpex, in 2019. Inpex plans to invest up to Dh646 million ($176 million), including a participation fee, to explore and assess oil and gas potential in the 6,116-square-kilometer zone that stretches from Abu Dhabi city to the Dubai border.

By 2030, the state-owned oil company wants to invest much more in hydrocarbons and grow its output capacity to 5 million barrels per day. To enhance output, it has issued a number of contracts to other companies.

Excerpts from ADNOC’s statement read: “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.”

“This achievement underscores how Adnoc’s accelerated exploration and development programme is unlocking future value for the UAE.”

According to the statement posted on Tuesday, the block is operated by Japan’s Inpex Corporation, and the finding includes significant Murban oil deposits. This is the first discovery from the concession area.

Adnoc’s board of directors authorised plans earlier this month to spend Dh466 billion between 2022 and 2026 to enhance its upstream and downstream production capacity, as well as its low-carbon fuels business and renewable energy goals.