Total has signed an agreement to acquire a 40% stake in the Ruwais Diyab Unconventional Gas Concession in the UAE from state-owned firm Abu Dhabi National Oil Company (Adnoc).
According to the agreement, Total is required to explore, appraise and develop the concession’s unconventional gas resources.
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Following the sale, Adnoc will retain a 60% stake in the concession. The deal is in line with Adnoc’s aim to achieve one billion cubic feet per day (bcfd) of unconventional gas production by 2030.
The deal comprises an exploration and appraisal phase that will run from six to seven years, as well as a subsequent 40-year production phase.
ADNOC Group CEO Dr Sultan Ahmed Al Jaber said: “This concession agreement marks an important and historic milestone in the development of Abu Dhabi’s gas resources, as we deliver our strategic commitment to ensure a sustainable and economical gas supply, in line with the directives of the UAE’s leadership.”
“Total and ADNOC have agreed on commercial terms that will enable the project to deliver maximum value from our unconventional gas reserves as we work towards achieving gas self-sufficiency, for the UAE, and transition to having the capacity to become a net gas exporter.
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By GlobalData“We have received significant interest from other potential partners wanting to join other unconventional oil and gas concession areas that we are considering. Discussions are progressing with these multiple interested parties, and we will make further announcements in due course.”
Adnoc recently unveiled a new integrated gas strategy that aims to make the UAE gas sector self-sufficient, with the potential to become a net gas exporter.
In March, Total received a 20% interest in the offshore Umm Shaif and Nasr concession and a 5% stake in the Lower Zakum concession.
