Austrian oil and gas company OMV has reached a concession agreement with Abu Dhabi National Oil Company (ADNOC) for a 5% stake in the Ghasha offshore gas and condensate fields for 40 years.
The Ghasha development comprises the three major gas and condensate development projects, which are Hail, Ghasha and Dalma. This is in addition to other offshore oil, gas and condensate fields, including Nasr, SARB and Mubarraz.
Under the agreement, OMV will join other partners, including Italy’s Eni and Germany’s Wintershall, in exploring the Ghasha offshore gas and condensate fields. Eni secured a 25% interest, while Wintershall won 10% in the Ghasha concession last month.
This deal marks OMV entering the Middle East gas business. The Austrian company will contribute 5% of the project capital and operational development expenses.
OMV executive board chairman and CEO Dr Rainer Seele said: “We are pleased to be awarded a stake in the largest sour gas and condensate fields in Abu Dhabi and to strengthen our partnership with ADNOC.
“Today’s signature marks a long-term commitment, and it is another important step in the successful implementation of our strategy 2025.
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“With this agreement, we are expanding our already material position in the Middle East and are further shifting our upstream production towards gas.”
The Ghasha concession awards come after Abu Dhabi’s Supreme Petroleum Council’s approval of ADNOC’s integrated gas strategy, aimed at boosting Abu Dhabi’s substantial gas reserves.
Ghasha project is estimated to produce more than 1.5 billion cubic feet of gas a day when it comes on-stream in the mid-2020s. Production will be enough to supply electricity to more than two million homes.
Once operational, the project is expected to produce more than 120,000 barrels of oil and high-value condensates a day.