Abu Dhabi awards Eni, Italy’s oil major, a 25% stake in the Ghasha Concession.
This is the first offshore ultra-sour gas deal after the emirate’s new ratification of its new gas strategy. The agreement follows the UAE energy sector focusing on its broadly unexplored yet very promising gas basins.
Eni will share 25% in the 40-year concession including the Hail, Ghasha, Dalma and other offshore fields. The company will contribute 25% of the development cost of the multi-billion dollar project there.
Abdulmunim Saif Al Kindy, ADNOC upstream director announced that the first production from the concessions will launch in 2024. The project will produce nearly 1.5 Bcf/day of gas.
ADNOC also stated it was discussing the remaining 15% of the 40% of the shares available in the Gashi concession with potential partners.
The Hail, Ghasha and Dalma ultra-sour gas project will tap into the Arab Basin. It holds multiple trillions of standard cubic feet of recoverable gas.
Eni was awarded a 10% stake in the Umm Shaif and Nasr concessions and a 5% stake in the Lower Zakum concession offshore Abu Dhabi in March.
Abu Dhabi’s Supreme Petroleum Council entitled to its gas strategy to enable the UAE to achieve gas self-sufficiency. Besides, it revealed a potential to become a net gas exporter. Recently it announced new discoveries equaling 15 Tcf of gas.
In addition to that, Total has won a 40% stake in the Ruwais Diyab Unconventional Gas Concession. Under it, the French company will explore, appraise and develop the concession area’s unconventional gas resources.
As well as developing the Ghasha Concession, ADNOC claimed it also intended to increase production from its Shah field to 1.5 Bcf/d and develop the sour gas fields at Bab and Bu Hasa. The company will additionally unlock other sources of gas. This includes Abu Dhabi’s gas caps and unconventional gas reserves, as well as new gas accumulations.