Abu Dhabi: Abu Dhabi National Oil Company (Adnoc) signed an agreement with French oil major Total, granting it a 40 per stake in the Ruwais Diyab Unconventional Gas Concession as the national oil company tries to boost gas production to meet demand.
As part of the agreement, Total will explore, appraise and develop the concession area’s unconventional gas resources, Adnoc said in a statement on Sunday.
Adnoc, which is planning to reach the target of one billion cubic feet per day (bcfd) of unconventional gas production before 2030, retains a 60 per cent stake in the concession.
“This concession agreement marks an important and historic milestone in the development of Abu Dhabi’s gas resources, as we deliver our strategic commitment to ensure a sustainable and economical gas supply, in line with the directives of the UAE’s leadership,” said Dr Sultan Ahmad Al Jaber, Adnoc Group CEO.
“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.”
The announcement follows the Supreme Petroleum Council’s approval of Adnoc’s new integrated gas strategy that will enable the UAE to become gas self-sufficient with the potential to become a net gas exporter.
In addition to developing the Ruwais Diyab Unconventional Gas Concession, Adnoc will unlock and maximise value from its Hail, Ghasha and Dalma mega sour gas project and Abu Dhabi’s gas caps, as well as new natural gas accumulations which will continue to be appraised and developed as the company pursues its exploration activities.
The agreement includes a six to seven-year exploration and appraisal phase which will then be followed by a 40-year production term, Adnoc said in the statement.