ADNOC,Total deliver first gas from UAE's Ruwais Diyab unconventional concession

Dubai — Abu Dhabi National Oil Co., the UAE's biggest energy producer, and Total have delivered first gas from their unconventional gas concession in the country, which is seeking self-sufficiency from the commodity.

The gas, delivered 200 km west of the capital of the UAE, "is an important step towards ADNOC's target of producing 1 billion standard cubic feet of gas from the concession before 2030, ultimately enabling gas self-sufficiency for the UAE," the national oil producer said in a Nov. 11 statement.

In 2018, ADNOC signed an agreement with Total, awarding it a 40% stake in the Ruwais Diyab Unconventional Gas Concession, with the national oil producer retaining the remainder. Under the terms of the agreement, the French energy major will explore, appraise and develop the concession area's resources.

In 2019, Abu Dhabi's Supreme Petroleum Council announced the discovery of 160 Tcf of unconventional gas recoverable resources.

"In addition to developing the Ruwais Diyab concession, ADNOC will unlock gas resources from its Ghasha concession and Abu Dhabi's giant gas caps, as well as new natural gas accumulations which will continue to be appraised and developed as the company pursues its exploration activities," the company said in the statement.

Ghasha concession

ADNOC terminated this year $1.65 billion worth of contracts awarded in February to a Petrofac-led group for an ultra-sour Dalma Gas Development project, which is part of the Ghasha concession.

The Dalma Gas Development project, which is set to produce 340 MMcf/d of gas, was expected to be completed in 2022, ADNOC said in February. The Ghasha mega-project is expected to produce over 1.5 Bcf/d of gas when it comes on stream around the middle of this decade, ADNOC said at the time.

The Ghasha concession is made up of the Hail, Ghasha, Dalma, Nasr, SARB, Bu Haseer, Shuweihat and Mubarraz offshore sour gas fields in Abu Dhabi. ADNOC holds the majority stake in the concession, with Italy's Eni, Germany's Wintershall, Austria's OMV and Russia's Lukoil holding the remainder.

The project had the potential to meet nearly 20% of the UAE's gas demand by the second half of this decade as well as produce more than 120,000 b/d of oil and high-value condensates upon completion, ADNOC said in February.