ADNOC and Total Ink Shale Gas Deal
Abu Dhabi National Oil Company (ADNOC) and Total have struck a deal granting the French oil and gas giant a 40% 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.
The deal with Total, which is reportedly the first of its kind in the Gulf region, will help ADNOC reach an important milestone of billion cubic feet per day of unconventional gas production before 2030. Terms foresee a six to seven-year exploration and appraisal phase to be followed by a 40-year production term.
Announcement of the plans followed the Abu Dhabi Supreme Petroleum Council’s approval of ADNOC’s new integrated gas strategy, which is seen as enabling the UAE to become gas self-sufficient with the potential to become a net gas exporter.
Total has been engaged in the Abu Dhabi oil and gas sector since 1939. It currently collaborates with ADNOC across the value chain, from offshore and onshore exploration, development and production to processing, products and shipping.
The arrangement with the French group will allow ADNOC to undergo an accelerated learning curve that will help drive efficiencies in drilling and hydraulic fracturing and allow it to create higher value from what is a more challenging resource compared to the giant conventional oil and gas fields of Abu Dhabi, said CEO Sultan Ahmed al Jaber, who is also the United Arab Emirates’ minister of state.
Total’s CEO, Patrick Pouyanné, said “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.”