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
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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.