The Abu Dhabi government and the Abu Dhabi National Oil Company (ADNOC) have signed the first of a series of concession agreements with Italy’s multinational oil and gas company Eni, awarding it a 25 per cent stake in its offshore ultra-sour gas mega project
The Ghasha Concession consists of the Hail, Ghasha, Dalma and other offshore fields. Eni will contribute 25 per cent of the development cost of the multi-billion US dollar project.
The announcement follows the Supreme Petroleum Council’s approval of ADNOC’s new gas strategy, targeted to unlock and maximise value from Abu Dhabi’s substantial available gas reserves, as the UAE moves towards gas self-sufficiency and aims to transition from a net importer of gas to a net gas exporter.
The concession, which has a term of 40 years, was signed by Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO and Claudio Descalzi, CEO of Eni.
Over the project’s lifetime, substantial benefits will flow back into the UAE economy under ADNOC’s In-Country Value program, which is designed to stimulate commercial opportunities, for local businesses, catalyze socio-economic development, develop an ultra-sour gas hub for the region and create additional employment opportunities for UAE nationals.
Dr Al Jaber said, “ADNOC is committed to ensuring a stable and economic gas supply to the UAE, which is a core component of our 2030 strategy. Development of our Hail, Ghasha and Dalma ultra-sour gas offshore resources, at commercial rates, will make a significant contribution towards delivering that strategic imperative and bringing forward the day when the UAE will not only be self-sufficient in gas but also transitions to a net exporter of gas.”
ADNOC is in discussion with further potential partners, for the remaining 15 per cent of the available 40 per cent stake in Ghasha concession, earmarked for foreign oil and gas companies.
The Hail, Ghasha and Dalma ultra-sour gas project will tap into the Arab basin, which is estimated to hold multiple trillions of standard cubic feet of recoverable gas. The project is expected to produce more than 1.5 bcf of gas per day when it comes on stream around the middle of the next decade. The Ghasha Concession is expected to produce enough gas to provide electricity to more than two million homes. Once complete, the project will also produce over 120,000 bbo and high-value condensate per day.
In addition to developing the Ghasha Concession area, ADNOC also plans to increase production from its Shah field to 1.5 bcf per day and move forward to develop the sour gas fields at Bab and Bu Hasa. ADNOC will also unlock other sources of gas which include Abu Dhabi’s gas caps and unconventional gas reserves, as well as new natural gas accumulations which will continue to be appraised and developed as the company pursues its exploration activities.
