The Abu Dhabi National Oil Company (ADNOC) has signed an agreement with French oil and gas major Total, granting it a 40 per cent stake in the Ruwais Diyab unconventional gas concession
Under the terms of the agreement, Total will explore, appraise and develop the concession area’s unconventional gas resources.
ADNOC Group, for which the award is an important milestone to reach the target of one bcf per day of unconventional gas production before 2030, retains a 60 per cent stake in the concession.
The agreement includes a six to seven-year exploration and appraisal phase which will then be followed by a 40-year production term. It was signed in ADNOC’s Thamama Subsurface Collaboration Center, by Dr Sultan Ahmed Al Jaber, group CEO at ADNOC, and Patrick Pouyanné, CEO and chairman of Total.
Dr Al Jaber said, “This concession agreement marks an important and historic milestone in the development of Abu Dhabi’s gas resources, as we deliver our strategic commitment to ensure a sustainable and economical gas supply, in line with the directives of the UAE’s leadership.”
“Total and ADNOC have agreed on commercial terms that will enable the project to deliver maximum value from our unconventional gas reserves as we work towards achieving gas self-sufficiency, for the UAE, and transition to having the capacity to become a net gas exporter. We have received significant interest from other potential partners wanting to join other unconventional oil and gas concession areas that we are considering. Discussions are progressing with these multiple interested parties and we will make further announcements in due course,” he added.
“As ADNOC embarks on the exploration and development of Abu Dhabi’s unconventional gas resources, it will undergo an accelerated learning curve which will help drive efficiencies in drilling and hydraulic fracturing, and allow us to create higher value from what is a more challenging resource compared to the giant conventional oil and gas fields of Abu Dhabi,” Dr Al Jaber further noted.
Total collaborates with ADNOC across the full value chain, from offshore and onshore exploration, development and production, to processing, products and shipping. In March the French super-major was awarded a 20 per cent interest in the offshore Umm Shaif and Nasr concession and a five per cent interest in the Lower Zakum concession.
Today’s announcement follows the Supreme Petroleum Council’s (SPC) approval of ADNOC’s new integrated gas strategy, that will enable the UAE to become gas self-sufficient with the potential to become a net gas exporter. In addition to developing the Ruwais Diyab Unconventional Gas Concession, ADNOC will unlock and maximise value from its Hail, Ghasha and Dalma mega sour gas project and Abu Dhabi’s gas caps, as well as new natural gas accumulations which will continue to be appraised and developed as the company pursues its exploration activities.
Total is the world’s fourth largest global oil and gas company. Its businesses cover the entire oil and gas value chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing and international crude oil and product trading.
