The Abu Dhabi National Oil Company (ADNOC) has awarded a stake of 25% to Italian oil and gas major Eni in its ultra-sour gas project in the Ghasha Concession located offshore Abu Dhabi.
The multi-billion US dollar ultra-sour gas project will involve the development of the Hail, Ghasha, Dalma and other offshore fields in the Ghasha Concession with Eni to cover 25% of the development cost.
ADNOC’s move to bring in Eni as its partner in the Ghasha Concession follows the approval of its new gas strategy by the Supreme Petroleum Council. Under the approval, ADNOC can proceed with the implementation of an integrated gas strategy and plans to ramp up its oil production capacity.
UAE Minister of State and ADNOC Group CEO Sultan Ahmed 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 net exporter of gas.”
The Hail, Ghasha and Dalma ultra-sour gas project has been designed to exploit the Arab basin, which is estimated to contain multiple trillions of standard cubic feet of recoverable gas.
The ultra-sour gas mega project in the Ghasha Concession is anticipated to have a production in excess of 1.5 billion cubic feet of gas per day upon its commissioning, which is likely to be around 2025 or so.
ADNOC expects the offshore concession to produce enough gas that is needed to deliver electricity to over two million homes. The ultra-sour gas project, upon its completion, will also have a production of more than 120,000 barrels of oil and high value condensate per day, said the company.
Overall, the gas produced from the Hail, Ghasha and Dalma fields could cover more than 20% of the gas demand in the UAE.
Eni CEO Claudio Descalzi said: “We are pursuing a strategy of growing in the Middle East and today’s signature is further confirmation of our willingness to root our presence in Abu Dhabi, following the agreements signed last March, with ADNOC.
“Today’s agreement is further proof of the strong alliance with such an important partner as ADNOC and of the proof of confidence in our globally recognized upstream model, based on the integration of exploration and development.”
Prior to the deal with Eni, ADNOC awarded a 40% stake in the Ruwais Diyab Unconventional Gas Concession located onshore Abu Dhabi to French oil and gas major Total.