Austrian company OMV and ADNOC have signed an upstream concession agreement for a 5% stake in a mega project offshore UAE.
Dr. Sultan Ahmed Al Jaber , UAE Minister of State and ADNOC Group CEO, and Dr. Rainer Seele , Chairman of the OMV Executive Board and CEO, signed a concession agreement awarding OMV with a 5% interest in the Ghasha concession comprising the Ghasha mega project, OMV informed on Wednesday.
According to its 5% stake, OMV will contribute to the past investments incurred by ADNOC in this concession. ADNOC’s other project partners are Eni and Wintershall , with a 25% stake and 10%, respectively, who have entered into the concession in November 2018.
The concession is located offshore Abu Dhabi and consists of three major gas and condensate development projects Hail, Ghasha and Dalma as well as other offshore oil, gas and condensate fields including Nasr, SARB and Mubarraz. The long term concession agreement has a term of 40 years, starting from November 2018.
Dr. Rainer Seele said: “We are confident that our technological expertise will contribute to value creation and profitable growth, for all partners involved. Today’s signature marks a long-term commitment and it is another important step in the successful implementation of our strategy 2025. With this agreement, we are expanding our already material position in the Middle East and are further shifting our upstream production towards gas.”
Dr. Sultan Ahmed Al Jaber said: “This long-term strategic agreement with OMV, as well as the other Ghasha concession agreements we have concluded recently, underscores ADNOC’s commitment to maximizing value from Abu Dhabi’s substantial gas resources and to ensuring a sustainable and economic supply of gas, in line with the leadership’s directives. The combination of rising demand for gas, more advanced technology and our industry leading experience in developing sour gas fields, makes it possible for us to commercially and holistically unlock value from our vast sour gas resources.”
He added: “It will help ensure our investment, in the Ghasha concession, will maximize long-term returns for the benefit of ourselves, our partners and the nation.”
In 2016 OMV was awarded a four year seismic, drilling and engineering work program to explore and appraise oil and gas fields in the North-West Offshore Abu Dhabi area that includes the Ghasha and Hail blocks. OMV said that this cooperation gave it in-depth knowledge and confidence in the success of the high potential Ghasha mega project.
According to ADNOC’s planning, the project will start producing around the middle of next decade. The fields are expected to produce at plateau at least 1.5 bn cubic feet per day (40 mn cbm), as well as over 120 kboe/d of oil and high value condensate (gross). The greenfield development includes, beside the drilling of development wells, the construction of offshore and onshore treatment, processing and transportation facilities for natural gas, condensate, crude oil and sulphur. The final investment decision for the first fields to contribute to the production target is planned to be completed next year.