The Abu Dhabi National Oil Company (Adnoc) has signed an agreement with Abu Dhabi’s Masdar to acquire its 49 per cent share in carbon management firm Al-Reyadah.
The deal makes Adnoc the sole shareholder in Al-Reyadah, previously a joint venture with Mubadala-owned Masdar, and enables it to fully integrate the company into Adnoc Onshore.
The financial worth of Al-Reyadah or how much Adnoc has paid to have the sole proprietorship of the region’s first carbon capture, utilisation and storage (CCUS) company, is unknown.
Since late 2016, Adnoc has been utilising the CO2 captured and transported by Al Reyadah for injection into its onshore fields to effectively boost oil production as part of its enhanced oil recovery (EOR) strategy.
Al-Reyadah launched its first project in November 2016, with the capacity to accumulate up to 800,000 tonnes of CO2 each year.
The facility captures CO2 emitted by Emirates Steel Industries (ESI), before piping it 43 kilometres to Adnoc’s Rumaitha and Bab oilfields, where it is injected into wells to increase oil recovery and save natural gas, previously used for enhanced oil recovery (EOR) applications, for domestic consumption, power generation and water desalination.
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