The Abu Dhabi National Oil Company (ADNOC) has awarded a 40% stake to Total in the Ruwais Diyab Unconventional Gas Concession, located onshore Abu Dhabi.


Image: ADNOC awards 40% stake to Total in the Ruwais Diyab Unconventional Gas Concession. Photo: courtesy of Abu Dhabi National Oil Company.

Through the concession agreement, ADNOC and Total will launch an unconventional gas exploration program in the Diyab play that spans more than 6,000km².

As per the terms of the agreement, the French oil and gas major will explore, appraise and develop the unconventional gas resources of the concession area.

Total chairman and CEO Patrick Pouyanné said: “This agreement consolidates our longstanding and strategic relationship in a country and region that we know well. We are committed to supporting the UAE in meeting its ambitions to unlock this significant unconventional gas resource.

“The Diyab play has the potential to be a high impact play ranking alongside the most prolific North American shale gas plays, and is an excellent addition to our exploration portfolio.”

ADNOC expects the partnership with Total in the concession to help it reach the target of one billion cubic feet per day (bcfd) of unconventional gas production by 2030. The state-controlled oil company will retain a stake of 60% in the onshore concession.

The agreement features a six to seven-year gas exploration and appraisal phase, followed by a 40-year production term.

ADNOC Group CEO Sultan Ahmed 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.”

Earlier this month, the state-owned oil company of the UAE secured regulatory approval to implement its 2019-2023 business plan and an investment of AED486bn ($132.33bn), aimed at boosting its production capacity, and thereby helping the country achieve gas self-sufficiency.

ADNOC said that apart from developing the Ruwais Diyab Unconventional Gas Concession, it plans to exploit and maximize value from its Hail, Ghasha and Dalma mega sour gas project and the gas caps in Abu Dhabi alongside new natural gas accumulations.