Total to Work on Abu Dhabi's Ruwais Field
French Total has taken a 40% stake in the 6,000 km² Ruwais Diyab unconventional gas concession in Abu Dhabi, the sole owner Adnoc said November 11. The state oil company has set a production target of 1bn ft³/day of unconventional gas production before 2030.
Total said in a separate statement November 12 that if the exploration went well, the "multi-Tcf opportunity will be developed in stages in line with the growing gas demand in the UAE and potential export opportunities". Abu Dhabi today imports gas from a pipeline from Qatar, despite a Saudi-led blockade of Qatar.
The agreement includes a six to seven-year exploration and appraisal phase which will then be followed by a 40-year production term. The historic unconventionals concession award is the first of its kind in the region, Total said.
Adnoc's CEO Ahmed Al Jaber said: "Total is Adnoc’s largest and one of its longest [lasting] 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."
Pouyanne said Total was "committed to supporting the UAE in meeting its ambitions to unlock this significant unconventional gas resource. The Diyab play has the potential to be a high impact play ranking alongside the most prolific North American shale gas plays and is an excellent addition to our exploration portfolio".
Apart from the Ruwais Diyab 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.
Last year, Total's equity production in Abu Dhabi was 290,000 barrels of oil equivalent/day. In partnership with Adnoc, Total holds 20% in the Umm Shaif & Nasr and 5% in the Lower Zakum 40-year concessions; 10% in the 40-year Adnoc onshore concession; 15% in Adnoc Gas Processing; 5% in Adnoc LNG; and 24.5% in Dolphin Energy. In addition, Total owns fully and operates the Abu Al Bukoosh field.