Total Wins 40 Percent Stake in Abu Dhabi's Adnoc Gas Concession
(Bloomberg) -- French oil giant Total SA won a 40 percent stake in an unconventional gas concession that will help boost Abu Dhabi’s production.
Total will explore, appraise and develop the Ruwais Diyab Unconventional Gas Concession, according to an statement from state energy producer Abu Dhabi National Oil Co. The project will help Adnoc reach its target of 1 billion cubic feet a day of unconventional gas output by 2030, it said.
The agreement includes a six to seven-year exploration and appraisal phase, which will then be followed by a 40-year production term, according to the statement. Adnoc retains a 60 percent stake in the concession.
“We work toward achieving gas self-sufficiency, for the U.A.E., and transition to having the capacity to become a net gas exporter,” Adnoc Chief Executive Officer Sultan Al Jaber said.
Abu Dhabi, the largest sheikhdom in the United Arab Emirates, holds about 6 percent of global crude reserves and produces most of the country’s oil. State producer Adnoc is seeking new partners and selling stakes in some assets as it brings international capital and expertise to the country.
Adnoc has received “significant interest from other potential partners wanting to join other unconventional oil and gas concession areas that we are considering,” Al Jaber said. “Discussions are progressing with these multiple interested parties, and we would make further announcements in due course.”
Total works with Adnoc on various projects, including offshore and onshore exploration and production. In March, the company was awarded a 20 percent interest in the offshore Umm Shaif and Nasr concession and a 5 percent interest in the Lower Zakum concession.
“The Diyab play has the potential to be a high impact play ranking alongside the most prolific North American shale gas plays,” Total CEO Patrick Pouyanne said, according to the statement.
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