Eni SpA said Nov. 13 that it signed an agreement with Abu Dhabi National Oil Co., or ADNOC, awarding the Italian oil major with a 25% stake in an offshore ultra-sour gas project in the United Arab Emirates.
The award covers the Ghasha concession comprised of Hail, Ghasha, Dalma and other offshore fields located in the UAE's Al Dhafra region and has a term of 40 years. Eni will contribute to 25% of the concession's development costs.
The Hail, Ghasha and Dalma ultra-sour gas project taps into the Arab basin, which is estimated to hold trillions of standard cubic feet of recoverable gas, and is expected to produce more than 1.5 billion cubic feet of gas and over 120,000 barrels of oil and "high value" condensate per day. Gas produced from the field is expected to cover 20% of the UAE's gas demand.
"We're pursuing a strategy of growing in the Middle East and today's signature is further confirmation of our willingness to root our presence in Abu Dhabi, following the agreements signed last March with ADNOC," Eni CEO Claudio Descalzi said.
In a separate release, ADNOC said it is currently in talks with other potential partners for the remaining 15% of the 40% stake in the Ghasha concession.