The national oil company of the United Arab Emirates, ADNOC, has signed agreements with BP and TotalEnergies to let the European oil and gas supermajors take 10% each in the consortium developing one of Abu Dhabi’s largest gas fields.
Both BP and TotalEnergies announced on Thursday they had signed their respective concession agreements to join the development of the Bab Gas Cap project in Abu Dhabi.
BP will now hold a 10% interest in the Bab Gas Cap concession, which is expected to produce up to 1.5 billion cubic feet per day (bcfd) of gas. The Bab Gas Cap project, the largest gas cap development of its kind globally, is made up of three reservoirs in the Bab Field – one of Abu Dhabi’s largest onshore oil fields – and involves the co-production of gas and condensate.
The new concession for the Bab Gas Cap project will be operated by ADNOC Onshore, with ADNOC holding 60%, BP and TotalEnergies 10% each, China’s CNPC with an 8% interest, Japanese JODCO/INPEX with 5%, China’s ZhenHua (4%), and South Korea’s GS Energy with 3%.
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“The Bab Gas Cap project is well in line with TotalEnergies’ Upstream strategy by adding low-cost, low-emissions resources with significant potential for production growth,” Patrick Pouyanné, chairman and chief executive of TotalEnergies, said in a statement today.
The Bab Cap Gas concession is expected to support UAE’s plan to become gas self-sufficient and domestic feedstock production, as well as ADNOC’s liquefied natural gas (LNG) export expansion plans.
Early this year, ADNOC announced the final investment decision for the SARB Deep Gas Development offshore Abu Dhabi, a key part of the massive Ghasha Concession development.
ADNOC’s Ghasha Concession is a cornerstone of its integrated gas strategy and includes Hail and Ghasha, the world’s first gas development aiming to operate with net-zero emissions.
ADNOC and the UAE are looking to maximize natural gas extraction and processing to boost domestic supply and increase LNG exports.
By Tsvetana Paraskova for Oilprice.com
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