Total Wins 40% Stake in Unconventional Gas Concession
Abu Dhabi National Oil Company (Adnoc) has awarded a 40 per cent stake in the Ruwais Diyab gas concession to French energy major Total.
Adnoc group, for which the award is an important milestone to reach the target of 1 Bcfd of unconventional gas production before 2030, said in a press release that it will retain a 60% stake in the concession.
Under the terms of the agreement, Total will explore, appraise and develop the concession area’s unconventional gas resources.
The agreement includes a six to seven-year exploration and appraisal phase which will then be followed by a 40-year production term. It was signed in ADNOC’s Thamama Subsurface Collaboration Center, by Dr. Sultan Ahmed Al Jaber, ADNOC Group Chief Executive Officer, and Patrick Pouyanné, CEO and Chairman of Total. The historic unconventionals concession award is the first of its kind in the region.
Dr. Al Jaber said: “Total is ADNOC’s largest and one of its longest international partners, having been active in Abu Dhabi’s oil and gas sector since 1939. 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.
“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. 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.
“As ADNOC embarks on the exploration and development of Abu Dhabi’s unconventional gas resources, it will undergo an accelerated learning curve which will help drive efficiencies in drilling and hydraulic fracturing, and allow us to create higher value from what is a more challenging resource compared to the giant conventional oil and gas fields of Abu Dhabi.” H.E. Dr. Al Jaber added.
Today, Total collaborates with ADNOC across the full value chain, from offshore and onshore exploration, development and production, to processing, products and shipping. In March the French super-major was awarded a 20% interest in the offshore Umm Shaif and Nasr concession and a 5% interest in the Lower Zakum concession.