Abu Dhabi: The Abu Dhabi National Oil Company (Adnoc) has awarded Italy’s oil and gas company Eni a 25% stake in its offshore ultra-sour gas megaproject.
The Ghasha Concession comprises of the Hail, Ghasha, Dalma and other offshore fields.
Adnoc is in discussion with further potential partners for the remaining 15% of the available 40% stake in Ghasha concession, allocated for foreign oil and gas firms.
Under the deal, the Italian oil and gas giant will contribute 25% of the development cost of the multi-billion dollar project, Abu Dhabi’s state-run oil firm said in a statement.
The announcement comes after the Supreme Petroleum Council’s approval of Adnoc’s new gas strategy, which is aimed to unlock and maximise value from Abu Dhabi’s substantial available gas reserves, as the UAE seeks to achieve gas self-sufficiency, along with turning from a gas net importer to a net exporter.
The 40-year agreement was signed by Sultan Ahmed Al Jaber, the UAE Minister of State and Adnoc Group CEO, and ENI’s CEO Claudio Descalzi.
The project will generate substantial benefits to the UAE economy under Adnoc’s In-Country Value programme, designed to boost commercial opportunities, for local businesses, stimulate socio-economic development, develop an ultra-sour gas hub for the region and create additional employment opportunities for UAE nationals, according to the statement.
Sultan Al Jaber stressed Adnoc’s commitment to ensuring a stable and economic gas supply to the UAE, which is a mainstay of 2030 strategy.
“In combination with Adnoc’s leading experience in ultra-sour gas, Eni’s field development experience supports the accelerated delivery of gas from the Hail, Ghasha and Dalma fields. At the same time, it will enable the further optimization of costs and ensure we extract the maximum value from our gas resources, as we continue to partner with those who share our values and contribute to our growth strategy,” he said.
The project is forecast to produce more than 1.5 billion cubic feet (Bcf) of gas per day when it comes on stream in the middle of the next decade.
“Today's agreement is further proof of the strong alliance with such an important partner as Adnoc and of the proof of confidence in our globally recognised upstream model, based on the integration of exploration and development,” Eni’s CEO Claudio Descalzi commented.
In March, Eni won a 10% interest in Adnoc’s Umm Shaif and Nasr concession and a 5% interest in the Lower Zakum concession. The awards marked the first time an Italian energy company had been given concession rights in Abu Dhabi’s oil and gas sector.
On Monday, Mubadala Petroleum, a subsidiary of Abu Dhabi state fund Mubadala Investment Company, announced it has signed an agreement with Eni to purchase a 20% stake in the Nour offshore concession in North Sinai, Egypt.
