The Ghasha gas project is expected to have production capacity of over 40 million cubic meters per day of natural gas and 120,000 barrels per day of crude oil and gas condensate
Image: The agreement was signed by Vagit Alekperov, President of PJSC LUKOIL, and Sultan Ahmed Al Jaber, Group CEO of the Abu Dhabi National Oil Company (ADNOC). Photo courtesy of LUKOIL.
Russian energy firm PJSC Lukoil has reached a concession agreement with Abu Dhabi National Oil Company (ADNOC) for a 5% stake in the Ghasha ultra-sour gas concession offshore Abu Dhabi.
The Ghasha gas project involves the development of previously undeveloped deposits of gas, oil and gas condensate as part of nine shallow fields in the Arabian Gulf west of Abu Dhabi.
Through the stake, the Russian company joins Eni (25%), Wintershall Dea (10%) and OMV (5%) as ADNOC’s partners in the sour gas concession.
The project is expected to have a production capacity of over 40 million cubic meters per day of natural gas and 120,000 barrels per day of crude oil and gas condensate.
Lukoil president Vagit Alekperov said: “The development of the Ghasha concession is the first LUKOIL project in the UAE and we are pleased to partner with ADNOC and cooperate with RDIF in this project. LUKOIL has extensive experience in offshore fields, both independently and in consortia with other major international companies.
“We are glad to enter the project in the UAE with such a significant resource base and with such experienced partners. Joining this project is fully consistent with our strategy.”
ADNOC, Lukoil and RDIF sign framework agreement
A framework agreement has also been signed by ADNOC, Lukoil and the Russian Direct Investment Fund (RDIF) to explore potential future cooperation in relation to the Ghasha concession.
ADNOC Group CEO Sultan Ahmed Al Jaber said: “We are very pleased to partner with LUKOIL on this crucial project, which also marks the first time that we partner with a Russian energy company across our full value chain.
“LUKOIL joins our other value-add partners on the Ghasha concession, which is integral to our objective of enabling gas-self sufficiency for the UAE.
“The transaction is consistent with ADNOC’s targeted approach to engage with strategic partners that contribute the right combination of best-in-class expertise and advanced technology, market access or capital to unlock maximum value from Abu Dhabi’s resources for our mutual benefit while delivering the greatest possible returns to the UAE.”
Last year, Austrian oil and gas firm OMV was awarded a 5% stake in the Ghasha concession from ADNOC.
The Ghasha ultra sour gas project involves the development of the Hail, Ghasha, Dalma, Nasr, Sarb and Mubarraz sour gas fields.