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It has been a busy month for ADNOC, which an­nounced a new strat­egy with $132bn capex un­til 2023 and a fo­cus on mak­ing the UAE a net gas ex­porter

Oil & Gas Middle East - - CONTENTS -

The top sto­ries from our web­site this month, and a promis­ing startup to watch.

Abu Dhabi Na­tional Oil Com­pany (ADNOC) an­nounced in early Novem­ber a $132bn capex un­til 2023, and wiht new dis­cov­er­ies of gas in place to­tal­ing 15trn stan­dard cu­bic feet, plans to trans­form the UAE from a gas im­porter to a net gas ex­porter. It also plans to hit oil pro­duc­tion ca­pac­ity of 4mn bar­rels per day (bpd) by 2020, and 5mn bpd by 2030.

Since that an­nounce­ment, it signed the first of a se­ries of con­ces­sion agree­ments with Italy’s multi­na­tional oil and gas com­pany, Eni, award­ing it a 25% stake in its First Hail, Ghasha and Dalma fields, part of the ul­tra-sour gas Ghasha Con­ces­sion. The con­ces­sion has a term of 40 years. ADNOC plans to sign a deal for an ad­di­tional 15% of the con­ces­sion.

It also an­nounced a $1.4bn in­vest­ment to up­grade and ex­pand its Bu Hasa field, which will

in­crease crude oil pro­duc­tion from 550,000 bpd to 650,000 bpd. Tec­ni­cas Re­u­nidas won an EPC con­tract for the work, which is ex­pected to take 39 months.

The com­pany plans to tap Abu Dhabi’s gas caps and un­con­ven­tional re­serces as well, and will lever­age new nat­u­ral gas ac­cu­mu­la­tions. ADNOC’S un­con­ven­tional re­sources are ex­pected to pro­duce 1bn stan­dard cu­bic feet of gas per day, be­fore 2030, while the de­vel­op­ment of its gas caps is ex­pected to pro­duce an ad­di­tional 500mn stan­dard cu­bic feet of gas per day for pro­cess­ing by 2030, from its Umm Shaif gas cap.

Mean­while, the Abu Dhabi gov­ern­ment’s de­ci­sion ear­lier this year to open six oil and gas blocks for com­pet­i­tive bid­ding is ex­pected to iden­tify fur­ther gas re­sources; the six on­shore and off­shore blocks are es­ti­mated to hold mul­ti­ple tril­lion cu­bic feet of gas.

ADNOC awarded a 40% stake in the Ruwais Diyab un­con­ven­tional gas con­ces­sion to To­tal, which will ex­plore, ap­praise and de­velop the con­ces­sion area’s un­con­ven­tional gas re­sources.

In that vein, ADNOC signed a frame­work agree­ment with Saudi Aramco to jointly assess in­vest­ment op­por­tu­ni­ties across the LNG value chain that could drive rev­enue growth for both com­pa­nies. The two re­gional oil and gas giants will also part­ner on techno-eco­nomic fea­si­bil­ity stud­ies and ex­change knowl­edge and ex­pe­ri­ence in LNG growth mar­kets.

Other up­com­ing an­nounce­ments will cen­ter on the Abu Dhabi gov­ern­ment’s de­ci­sion, ear­lier this year, to open six oil and gas blocks for com­pet­i­tive bid­ding. The blocks po­ten­tially hold mul­ti­ple bil­lion bar­rels of oil and mul­ti­ple tril­lion cu­bic feet of nat­u­ral gas. The first ex­plo­ration and pro­duc­tion li­censes are ex­pected to be awarded in the first quar­ter of 2019.

“The sub­stan­tial in­vest­ments we will make, in the de­vel­op­ment of new and un­de­vel­oped reser­voirs, gas caps and un­con­ven­tional re­sources, will en­sure we can com­pet­i­tively meet the UAE’S grow­ing de­mand for power gen­er­a­tion and in­dus­trial use,” said ADNOC CEO Dr. Sul­tan Al Jaber.

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