Abu Dhabi's Adnoc awards Total 40% stake in gas concession

Total project will help Adnoc reach its target of 1 billion cubic feet a day of unconventional gas output by 2030
Abu Dhabi's Adnoc awards Total 40% stake in gas concession
Adnoc CEO Sultan Al Jaber (right) pictured with Total CEO Patrick Pouyanne.
By Bloomberg
Sun 11 Nov 2018 12:45 PM

Abu Dhabi National Oil Co. granted Total a 40 percent stake in an unconventional gas concession to help boost the emirate’s production.

Total will explore, appraise and develop the Ruwais Diyab Unconventional Gas Concession, according to an Adnoc statement. The project will help Adnoc reach its target of 1 billion cubic feet a day of unconventional gas output by 2030, it said.

The agreement includes a six to seven-year exploration and appraisal phase, which will then be followed by a 40-year production term, according to the statement. Adnoc retains a 60 percent stake in the concession.

“We work toward achieving gas self-sufficiency for the UAE, and transition to having the capacity to become a net gas exporter,” Adnoc CEO Sultan Al Jaber said.

Abu Dhabi holds about 6 percent of global crude reserves and produces most of the country’s oil. State producer Adnoc is seeking new partners and selling stakes in some assets as it brings international capital and expertise to the country.

‘Potential partners’

Adnoc has received “significant interest from other potential partners wanting to join other unconventional oil and gas concession areas that we are considering,” Al Jaber said.

“Discussions are progressing with these multiple interested parties, and we would make further announcements in due course.”

Total works with Adnoc on various projects, including offshore and onshore exploration and production. In March, the company was awarded a 20 percent interest in the offshore Umm Shaif and Nasr concession and a 5 percent interest in the Lower Zakum concession.

“The Diyab play has the potential to be a high impact play ranking alongside the most prolific North American shale gas plays,” Total CEO Patrick Pouyanne said, according to the statement.

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