Cosmo Energy Exploration & Production has been exclusively awarded Offshore Block 4 in Abu Dhabi's second Block Bid Round. The bid round was organized by Abu Dhabi National Oil Company (ADNOC) and is the Emirate's second competitive bidding round for the exploration, development and production of oil and gas.

Location of Offshore Block 4

Cosmo E&P Albahriya Limited (Cosmo Albahriya), newly incorporated as a wholly-owned subsidiary of Cosmo, will operate the block and has signed the exploration concession agreement with the Supreme Council for Financial and Economic Affairs (SCFEA) and ADNOC. Offshore Block 4 is located to the north of Abu Dhabi and the block covers a surface area of 4,865 square kilometers.

The block benefits from lower operating unit costs as it is located in the shallow waters of the Arabian Gulf. In addition, as the block lies adjacent to the Mubarraz Oil Field which is operated by Abu Dhabi Oil Co., Ltd. (ADOC) (an affiliate of Cosmo), Cosmo expects that it can significantly reduce capital and operating costs by utilizing ADOC's existing infrastructure for development and production. This award will create synergies between Cosmo Albahriya and ADOC and reinforce the cost-competitiveness of both companies. Furthermore, Offshore Block 4 will contribute to Japan's increased crude oil self-sufficiency ratio and reinforce energy security.

Cosmo decided to participate in this bid round and bid for Offshore Block 4 in light of ADNOC's value proposition. We believe this block was awarded because the government of Abu Dhabi and ADNOC recognize Cosmo Group as a trustworthy partner, appreciate its existing initiatives towards social contributions in Abu Dhabi, and value its track record of safe, stable and environmentally friendly oil field development and production operations in Abu Dhabi with technologies such as:

• Zero-flaring projects to achieve minimized associated flaring, environmental protection, and natural resource utilization while increasing operational efficiency;
• Zero-discharge operations which safely inject wastewater and other waste generated during drilling into the subsurface; and
• Sludge Reduction Technologies which reuse industrial oil waste generated during the processing of crude oil.

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