ADNOC, TOTAL deliver first unconventional gas from UAE

WAM

The Abu Dhabi National Oil Company (ADNOC) and TOTAL have announced the delivery of the first unconventional gas from the UAE.

It was delivered from the Ruwais Diyab Unconventional Gas Concession located 200 km west of Abu Dhabi city.

The latest achievement marks a significant milestone towards future full field development and is an important step towards ADNOC’s target of producing 1 billion standard cubic feet (scf) of gas from the concession before 2030, ultimately enabling gas self-sufficiency for the UAE.

It comes just two years after ADNOC and TOTAL signed the region’s first historic unconventional gas concession agreement. In addition, this initial production milestone marks the first time an unconventional gas development in the Middle East delivers gas to pipeline so early in the project timeline.

The accelerated progress was made possible by the strong commitment and collaboration between ADNOC and TOTAL, enabling them to fast track the exploration of the resources, while tailoring operations to the UAE's shale play type.

"The accelerated progress in Ruwais Diyab is a testament to the long-standing partnership between ADNOC and TOTAL, which has enabled us to expedite the learning curve in the production of unconventional gas resources, provided cost optimisation opportunities and driven efficiencies. All of these remain key as we move forward with confidence to further develop the concession and unlock its substantial potential to drive sustainable value for the UAE and its people," said Yaser Saeed Almazrouei, ADNOC Upstream Executive Director.

This milestone builds on ADNOC’s continuous efforts to de-risk unconventional gas resources across Abu Dhabi since 2016 and comes just over a year after Abu Dhabi’s Supreme Petroleum Council (SPC) announced the discovery of 160 trillion scf of unconventional gas recoverable resources.

The unconventional gas is delivered through a purpose-built gas pipeline and centralised early production facility in the Diyab field which enables distribution through ADNOC’s gas network.

The Ruwais Diyab Unconventional Gas Concession greatly benefits from its strategic location near ADNOC’s Ruwais industrial area, providing market access and allowing operations to leverage ADNOC's expansive existing infrastructure which will continue to benefit the UAE’s evolving unconventionals industry.

In November 2018, ADNOC signed an agreement with TOTAL granting it a 40 per cent 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.

In addition to developing the Ruwais Diyab concession, ADNOC will unlock gas resources from its Ghasha concession and Abu Dhabi’s giant gas caps, as well as new natural gas accumulations which will continue to be appraised and developed as the company pursues its exploration activities.

More from Business

  • Nasdaq set to confirm bear market as Trump tariffs trigger recession fears

    The tech-heavy Nasdaq Composite index was set to confirm it was in a bear market on Friday, down more than 20 per cent from a recent record high, as investors fled riskier assets on fears that tariffs imposed by President Donald Trump could spark a trade war and tip the global economy into recession.

  • Dana Gas and Crescent Petroleum exceed 500M boe in Khor Mor field

    UAE-based Dana Gas and Crescent Petroleum, alongside their partners in the Pearl Petroleum consortium, have said the cumulative production from their Khor Mor project, the largest non-associated gas field in Iraq, has exceeded 500 million barrels of oil equivalent (boe).

  • China to impose tariffs of 34% on all US goods

    China has announced a slew of additional tariffs and restrictions against US goods as a countermeasure to sweeping tariffs imposed by US President Donald Trump. The Finance Ministry said it would impose additional tariffs of 34 per cent on all US goods from April 10.

  • Shares bruised, dollar crumbles as Trump tariffs stir recession fears

    Stocks limped to the end of the week on Friday, the dollar was set for its worst week in a month while gold flirted with a record peak as investors feared US President Donald Trump's sweeping tariffs would tip the global economy into a recession.

  • Wall Street futures sink as tariffs fuel recession fears

    US stock index futures tumbled on Thursday after President Donald Trump's sweeping tariffs on major trade partners heightened fears of an all-out trade war that could push the global economy into a recession.

News