ADNOC awards stake in offshore mega project to Eni
The Abu Dhabi government and ADNOC have signed the first of a series of concession agreements with Italy’s oil and gas company, Eni, awarding it a 25 percent stake in its offshore ultra-sour gas mega project.
The Ghasha Concession consists of the Hail, Ghasha, Dalma and other offshore fields. Eni will contribute 25% of the development cost of the multi-billion US dollar project, ADNOC said on Tuesday.
The Hail, Ghasha and Dalma ultra-sour gas project will tap into the Arab basin, which is estimated to hold multiple trillions of standard cubic feet of recoverable gas. The project is expected to produce more than 1.5 billion cubic feet of gas per day when it comes on stream around the middle of the next decade. According to Eni, the gas produced from the Hail, Ghasha and Dalma fields could meet more than 20 per cent of the UAE’s gas demand. Once completed, the project will also produce over 120,000 barrels of oil and high value condensate per day.
The announcement follows the Supreme Petroleum Council’s approval of ADNOC’s new gas strategy, targeted to unlock and maximize value from Abu Dhabi’s substantial available gas reserves.
The concession, which has a term of 40 years, was signed by Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO and Claudio Descalzi, CEO of Eni.
Dr 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.”
Eni’s CEO, Claudio Descalzi, said: “We’re 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.”
In March, Eni was awarded a 10 percent interest in ADNOC’s Umm Shaif and Nasr concession and a five percent interest in the Lower Zakum concession. The awards marked the first time an Italian energy company had been given concession rights in Abu Dhabi’s oil and gas sector.
ADNOC added it is also in discussion with further potential partners, for the remaining 15 percent of the available 40% stake in Ghasha concession, earmarked for foreign oil and gas companies.
In addition to developing the Ghasha Concession area, ADNOC also plans to increase production from its Shah field to 1.5 billion cubic feet per day and move forward to develop the sour gas fields at Bab and Bu Hasa. ADNOC will also unlock other sources of gas which include Abu Dhabi’s gas caps and unconventional gas reserves, as well as new natural gas accumulations which will continue to be appraised and developed as the company pursues its exploration activities.