LONDON: The Abu Dhabi National Oil Company (ADNOC) said on Sunday it has granted French energy firm Total a 40 percent stake in a major gas concession.
Under the terms of the agreement, Total will explore, appraise and develop the resources at the Ruwais Diyab Unconventional Gas Concession, according to a statement.
ADNOC said the award is “an important milestone to reach the target of 1 billion cubic feet per day (bcfd) of unconventional gas production before 2030.”
The Abu Dhabi energy firm retains a 60 percent stake in the concession.
The agreement includes a six to seven-year exploration and appraisal phase which will then be followed by a 40-year production term.
“Total is ADNOC’s largest and one of its longest international partners, having been active in Abu Dhabi’s oil and gas sector since 1939,” said Sultan Al-Jaber, ADNOC Group CEO.
“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.
“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 toward achieving gas self-sufficiency, for the UAE, and transition to having the capacity to become a net gas exporter.”
Pleased to be with Dr. Sultan Al Jaber in #AbuDhabi where we signed a concession agreement that makes @Total the 1st IOC to pioneer unconventional #gas exploration in the country. Total fully supports @AdnocGroup’s ambition to unlock the significant gas resources of the UAE. pic.twitter.com/KiA6lPYer8
— Patrick Pouyanné (@PPouyanne) November 11, 2018
Al-Jaber said ADNOC had received “significant interest” from other potential partners wanting to join other unconventional oil and gas concession areas, and that the company is “considering” such requests.
“Discussions are progressing with these multiple interested parties, and we will make further announcements in due course,” he said.
Meanwhile, Abu Dhabi Crown Prince Sheikh Mohammed Bin Zayed said in a tweet that he had discussed with Total CEO Patrick Pouyanne “potential bio-energy cooperation” between the company and UAE institutions, Reuters reported.