ADNOC launches second bid round for oil, gas blocks

ABU DHABI: Abu Dhabi National Oil Company (ADNOC) said on Wednesday that it has launched the second exploration bid round for five new oil and gas blocks.
The bidding will be for both conventional and unconventional resources, and the successful bidders will enter into agreements granting them exploration rights, ADNOC said in a statement.
The new blocks are three offshore and two onshore.
Meanwhile, ADNOC Distribution, the fuel distribution arm of ADNOC, posted a 6.6 percent rise in first-quarter net profit on Wednesday.
Profit was 578 million dirhams ($157.37 million) in the three months to March 31, compared with 542 million dirhams a year earlier.
Analysts at Dubai-based Arqaam Capital had expected a profit of 543 million dirhams, while Egypt’s EFG-Hermes had forecast that the company would post a profit of 558 million dirhams.
ADNOC Distribution said net cash generated from operating activities decreased in the quarter as a result of working capital movements due to fluctuating oil prices.
The company said it expected low single-digit growth in fuel volumes beginning in the second half of this year, as a result of an expansion of its network in Dubai.
HSBC on April 8 raised its recommendation to “buy” from “hold,” and target price to 3.2 dirhams from 2.6 dirhams.
In 2017, ADNOC listed 10 percent of ADNOC Distribution, the largest operator of petrol stations and convenience stores in the UAE, on the Abu Dhabi Securities Exchange.
The company is seeking a secondary listing for its distribution unit overseas, three sources told Reuters in April.
Reuters reported last June that ADNOC was considering selling another 10 percent stake in ADNOC Distribution.
One of the sources said ADNOC was considering listing ADNOC Distribution on New York’s Nasdaq exchange, while a second source added that a London listing had also been discussed.
Another source said Abu Dhabi was also one of the options being discussed.