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Tue 13 Nov 2018 01:59 PM

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ADNOC, ENI sign deal for 25% stake in Abu Dhabi gas mega project

Italian energy giant ENI to contribute 25% of cost of developing Hail, Ghasha, Dalma and other offshore fields

ADNOC, ENI sign deal for 25% stake in Abu Dhabi gas mega project
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.

The Abu Dhabi government and the Abu Dhabi National Oil Company (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 percent of the development cost of the multi-billion dollar project, a statement said.

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, as the UAE moves towards gas self-sufficiency and aims to transition from a net importer of gas to a net gas exporter.

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.

The project aims to develop an ultra-sour gas hub for the region and create additional employment opportunities for UAE nationals, the statement added.

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.”

ADNOC said it is in discussion with further potential partners, for the remaining 15 percent of the available 40 percent stake in Ghasha concession, earmarked for foreign oil and gas companies.

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.

The Ghasha Concession is expected to produce enough gas to provide electricity to more than two million homes. Once complete, the project will also produce over 120,000 barrels of oil and high value condensate per day.

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.

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.

Eni is active in 73 countries, including Italy, North, West and East Africa, the Norwegian Continental Shelf, the Gulf of Mexico, the Caspian Sea, Indonesia and Australia, and Southern Europe, the Middle and Far East, the Eastern Mediterranean, the Russian Barents Sea and Alaska.

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