Abu Dhabi has granted a new oil and gas exploration concession in its Al Dhafra region to Malaysia’s state-owned oil and gas company Petronas as part of efforts to attract investments into the emirate’s energy sector.
The Supreme Council for Financial and Economic Affairs awarded onshore block 2 to Petronas, marking the third exploration concession granted to the company, the Abu Dhabi Media Office reported on Thursday.
This highlights Abu Dhabi’s position as a “trusted and attractive investment destination for global investments in the energy sector,” ADMO said.
“The exploration operations will utilise advanced technology and artificial intelligence solutions, which will contribute to maximising the potential benefits derived from Abu Dhabi's energy resources,” it added.
The concession award follows the conclusion of Abu Dhabi’s first and second exploration concession bid rounds, launched in 2018 and 2019. These rounds resulted in the allocation of 11 blocks to prominent international energy partners.
Earlier this month, Abu Dhabi awarded an onshore block to an Indian joint venture.
Urja Bharat, a venture between state-run energy companies Bharat Petroleum and Indian Oil, was granted production rights for onshore Block 1 in Al Ruwais, after completion of the exploration phase awarded in 2019.
The UAE is among the world’s largest oil producers, and more than 95 per cent of the country’s roughly 100 billion barrels of proven oil reserves are in Abu Dhabi.
The Emirates, the Arab world’s second-largest economy, and Malaysia initiated talks for a comprehensive economic partnership agreement (Cepa) last year and have held several rounds of discussions.
Malaysia is on track to reach a free-trade agreement with the UAE by the end of the year and aims to explore a broader trade treaty with the wider GCC economic bloc, a senior official said this month.
Malaysia has “excellent relations with the Middle East” and plans to further boost ties with Arab economies, the country's Minister of Investment, Trade and Industry, Tengku Zafrul Aziz, told the ninth annual Belt and Road summit in Hong Kong.
Last year, the two countries reported bilateral non-oil trade worth $4.7 billion, maintaining the record levels achieved in 2022.
