ADNOC AND TOTAL TIE-UP PRODUCES FIRST GAS AT RUWAIS CONCESSION
▶ Field expected to produce 1bn cubic feet of unconventional gas by 2030
Adnoc and Total produced their first gas from unconventional reserves at the Ruwais Diyab concession that lies 200 kilometres west of Abu Dhabi city. The milestone comes two years after development work began, the companies said yesterday.
“The accelerated progress in Ruwais Diyab is a testament to the long-standing partnership between Adnoc and Total, which has enabled us to expedite the learning curve in the production of unconventional gas resources, provided cost optimisation opportunities and driven efficiencies,” said Yaser Almazrouei, Adnoc’s upstream executive director.
The partners intend to produce 1 billion cubic feet of gas from the concession before 2030, as part of the UAE’s mission to achieve gas self-sufficiency.
An Adnoc spokesman told The National that the Ruwais Diyab concession is a “stacked, high pressure, organic shale play with beneficially low sulphur volumes”.
Abu Dhabi has begun to prioritise the development of gas from unconventional reserves that were earlier considered commercially unviable.
The UAE accounts for about 4 per cent of global oil production, with the bulk of the output from fields owned and managed by Adnoc.
Adnoc announced the discovery of additional reserves of 7bn “stock tank” barrels of oil, 58 trillion cf of conventional gas and 160tn cf of unconventional gas last November.
This pushed the UAE up the rankings in terms of hydrocarbon reserves, according to data from the US Energy Information Administration.
Earlier this year, the country also announced the discovery of 80tn cf of shallow gas reserves in an area between Abu Dhabi and Dubai – the biggest find in 15 years.
The extraction of unconventional gas at the Ruwais Diyab field comes after “continuous efforts to de- risk unconventional gas resources across Abu Dhabi since 2016”, Adnoc said.
A plant at the Diab field will distribute the unconventional gas through Adnoc’s gas pipeline network.
The concession is close to the Ruwais industrial area at the heart of Abu Dhabi’s refining and chemicals development.
Adnoc said the field would help advance the UAE’s “evolving unconventionals industry”.
French energy company Total holds a 40 per cent stake in the concession, allowing it to explore, appraise and develop its resources further.
Adnoc has also partnered with other international oil companies to further explore its unconventional assets in the emirate.
The state- owned company awarded Russia’s Lukoil a 5 per cent stake in the ultra-sour gas Ghasha concession last year.
The Russian company is the fourth foreign partner to join the Ghasha concession, which also has Austria’s OMV, Italy’s Eni and Germany’s Wintershall as stakeholders.
Adnoc is developing its gas caps such as Ghasha to boost its overall gas output and meet electricity and industrial demands.
The Ghasha project is expected to power more than two million homes.
Much of the UAE’s gas is trapped in unconventional, sulphurous caps and is known as sour gas.
The sulphur has to be stripped from the gas to make it suitable for use.
Separately, Adnoc yesterday unveiled an online energy centre to provide the public with detailed insight into its operations.
The centre explains how Adnoc is achieving its 2030 strategy to create more profitable upstream and more valuable downstream operations, as well ensure gas supply is sustainable and economical.
Adnoc said the centre offered access to students and anyone interested in learning more about Adnoc or the oil and gas industry.
The accelerated progress in Ruwais Diyab is a testament to the longstanding partnership between Adnoc and Total YASER ALMAZROUEI
Adnoc’s upstream executive director