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Total wins 40% stake in Abu Dhabi's Adnoc gas concession
ABU Dhabi National Oil Co (Adnoc) has granted Total SA a 40 per cent stake in an unconventional gas concession to help boost the emirate's production.
Total will explore, appraise and develop the Ruwais Diyab Unconventional Gas Concession, according to an Adnoc statement. The project will help Adnoc reach its target of one 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 per cent stake in the concession.
"We work towards achieving gas self-sufficiency for the UAE, and transition to having the capacity to become a net gas exporter," Adnoc chief executive officer Sultan Al Jaber said.
Adnoc has received "significant interest from other potential partners wanting to join other unconventional oil and gas concession areas that we are considering", Mr 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 per cent interest in the offshore Umm Shaif and Nasr concession and a 5 per cent 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. BLOOMBERG