Abu Dhabi National Oil Company (ADNOC) has awarded France’s Total 40 per cent of its Ruwais Diyab Unconventional Gas Concession.
The deal, which will see ADNOC retain a 60 per cent stake, comes after Abu Dhabi’s Supreme Petroleum Council approved plans last week to invest $132bn in improving oil and gas production and announced potential discoveries of 15 trillion standard cubic feet of gas.
Under the terms, Total will explore and appraise the field for up to seven years and then develop it for 40 years of production.
“Total and ADNOC have agreed on commercial terms that will enable the project to deliver maximum value from our unconventional gas reserves as we work towards achieving gas self-sufficiency, for the UAE, and transition to having the capacity to become a net gas exporter,” said ADNOC group CEO Sultan Ahmed Al Jaber.
“We have received significant interest from other potential partners wanting to join other unconventional oil and gas concession areas that we are considering. Discussions are progressing with these multiple interested parties, and we will make further announcements in due course.”
Total also has a 20 per cent interest in Abu Dhabi’s offshore Umm Shaif and Nasr concession and a 5 per cent interest in the Lower Zakum concession.
ADNOC’s gas strategy aims to add resources to help the UAE become gas self sufficient and eventually a gas exporter.
The company is targeting one billion cubic feet per day of unconventional gas production before 2030.