Adnoc, Eni sign deal to boost gas output
abu dhabi — The Abu Dhabi National Oil Company (Adnoc) on Tuesday signed a 40-year concession deal with Italy’s Eni to develop major natural gas fields in Abu Dhabi that could help the emirate become a net exporter of the fuel.
Under the deal, Eni was granted a 25 per cent stake in the multibillion dollar project in the Hail, Ghasha and Dalma fields, Adnoc said in a statement.
The company added that it is in discussion with other potential partners for the remaining 15 per cent stake in the Ghasha concession. Adnoc will retain 60 per cent of the project.
The project aims at producing some 1.5 billion cubic feet per day of ultra-sour natural gas by the middle of next decade. Sourgas is gas that contains significant amounts of hydrogen sulphide and carbon dioxide. Most of the UAE’s reserves are sour-gas.
Dr Sultan bin Ahmad Sultan Al Jaber, UAE Minister of State and Adnoc Group CEO, and Claudio Descalzi, CEO of Eni, signed the contract.
“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 transition to being a net exporter of gas,” Al Jaber said.
The UAE’s Supreme Petroleum Council recently approved investments
The day [is not far] when the UAE will not only be self-sufficient in gas but also transition to being a net exporter of gas
Dr Sultan bin Ahmad Sultan Al Jaber, UAE Minister of State and Adnoc Group CEO
worth $132 billion over the next five years to boost oil and gas production.
On Monday, Adnoc signed a cooperation deal with Saudi energy giant Aramco aimed at bolstering gas production. It granted French major Total an exploration and production concession agreement for unconventional natural gas on Sunday.
“We are growing and working very well with Adnoc,” Descalzi of ENI said. “We are increasing our presence in the country.”
The new oil and gas project will reach peak production by 2022 or 2023, he said.
The Italian company already has rights to 55,000 to 60,000 barrels of daily crude output in the emirate after securing a stake in March at one of Adnoc’s offshore oil fields, its first production concession in the UAE, Descalzi said.