Italian Eni Goes into Abu Dhabi Upstream
Italian energy company Eni has taken a 25% stake in Abu Dhabi's multi-billion-dollar offshore ultra-sour gas mega project, the state oil company Adnoc said November 13. The Ghasha Concession consists of the Hail, Ghasha, Dalma and other fields.
It is Adnoc's third gas development announcement in two days, one with French Total and another with Saudi Aramco, and follows the Supreme Petroleum Council’s approval of Adnoc’s new gas strategy of turning the United Arab Emirates into a net gas exporter.
The concession, which has a term of 40 years, was signed by Adnoc's CEO and UAE minister of state, Ahmed Al Jaber, and Eni's CEO Claudio Descalzi.
Over the project’s lifetime, substantial benefits will flow back into the UAE economy under Adnoc's In-Country Value programme, which is designed to stimulate commercial opportunities for local businesses, catalyse socio-economic development, develop an ultra-sour gas hub for the region and create additional employment opportunities for UAE nationals, Adnoc said.
Al Jaber said: “Adnoc is committed to ensuring a stable and economic gas supply to the UAE, which is a core component of our 2030 strategy. Development of our Hail, Ghasha and Dalma ultra-sour gas offshore resources, at commercial rates, will make a significant contribution towards delivering that strategic imperative and bringing forward the day when the UAE will not only be self-sufficient in gas but also transitions to net exporter of gas.
He continued: “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 optimisation 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.
Descalzi said: “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. This has allowed us to achieve extraordinary results over the last years in exploration, as well as in developing our discoveries in a record time-to-market.” In March, Eni was awarded 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.
Adnoc is in discussion with further potential partners for the remaining 15% stake out of the available 40% stake in the Ghasha concession, earmarked for foreign oil and gas companies.
The project is expected to produce more than 1.5bn ft³/day some time around the middle of the next decade, as well as over 120,000 barrels of oil and high value condensate.
The Hail, Ghasha and Dalma project will apply state-of-the-art smart technologies to unlock more value from the gas reserves and reduce human exposure to the operations, Adnoc said. It will use the latest digital innovations to ensure remote access to all key activities across the project’s natural and artificial islands, platforms and well-head towers. All the project’s remote facilities will be operated from a single control centre, in Al Manayif.
In addition to developing the Ghasha Concession area, Adnoc also plans to increase production from its Shah field to 1.5bn ft³/day and move forward in developing the sour gas fields at Bab and Bu Hasa. Adnoc will also unlock other sources of gas which include Abu Dhabi’s gas caps and unconventional gas reserves, as well as new natural gas accumulations, which will continue to be appraised and developed as the company pursues its exploration activities.
Adnoc said it would capitalise on its world-leading expertise and successes in ultra-sour gas development, gained from the development of the Shah Arab reservoir, creating an ultra-sour gas hub for the region.