The Abu Dhabi National Oil Company (ADNOC) has signed an agreement with French oil and gas major Total, granting it a 40 percent stake in the Ruwais Diyab Unconventional Gas Concession.
Under the terms of the agreement, Total will explore, appraise and develop the concession area’s unconventional gas resources.
ADNOC Group, for which the award is an important milestone to reach the target of one billion cubic feet per day (bcfd) of unconventional gas production before 2030, retains a 60 percent stake in the concession.
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 Pouyanne, CEO and Chairman of Total.
"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 Jaber.
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 percent interest in the offshore Umm Shaif and Nasr concession and a 5 percent interest in the Lower Zakum concession.
"This agreement consolidates our longstanding and strategic relationship in a country and region that we know well. We are 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,” said Pouyanne.
Sunday’s 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 maximize 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.
