Adnoc announces first gas from unconventional asset

11 November 2020
The announcement comes precisely two years after Adnoc awarded a 40 per cent stake in the Ruwais Diyab unconventional gas concession to Total

Adipec 2020
Indrajit Sen
Oil & gas editor

Abu Dhabi National Oil Company (Adnoc) has announced that it has produced the first gas from the Ruwais Diyab unconventional gas concession area in Abu Dhabi, along with French energy major Total, its partner in the asset.

The announcement by Adnoc on 11 November comes two years after the Abu Dhabi energy major awarded a 40 per cent stake in the asset to Total, making it the region’s first 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,” Adnoc said in a statement.

As per the November 2018 agreement, Adnoc holds the majority 60 per cent stake in the Ruwais Diyab concession, the majority of which is situated onshore, while Total will explore, appraise and develop the area’s unconventional gas resources.

The agreement includes a six to seven-year exploration and appraisal phase which will then be followed by a 40-year production term.

Adnoc has set a target of producing 1 billion cubic feet a day of gas from the concession before 2030.

“The accelerated progress was made possible by the strong commitment and collaboration between Adnoc and Total, enabling them to fast track the exploration of these unconventional gas resources, while tailoring operations to the UAE's shale play type,” Adnoc said in its statement.

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,” Adnoc said.

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