Abu Dhabi National Oil Company (Adnoc) has awarded Austrian oil and gas company OMV a 5 per cent stake in the Ghasha offshore ultra-sour gas concession that comprises the Hail, Ghasha, Dalma, Nasr, Sarb and Mubarraz sour gas fields.
As per the 40 year agreement, OMV will contribute 5 per cent of the project capital and operational development expenses, Adnoc said in a statement.
Adnoc holds the operating stake of 60 per cent in the Ghasha concession, and will be aided by its trio of European partners to recover sour gas from the asset.
Adnoc is working towards achieving the goals part of its integrated gas strategy to transform the UAE into a net exporter of gas.
The project is expected to produce over 1.5 billion cubic feet of gas a day when it comes on stream around the middle of the next decade, enough to provide electricity to more than two million homes, Adnoc says in its statement.
Once complete, the project will also produce over 120,000 barrels of oil and high-value condensates a day.
OMV, which has a long-standing experience in the treatment of sour gas, collaborates with Adnoc in a number of areas. In April, OMV was awarded a 20 per cent stake in Abu Dhabi’s Sarb and Umm Lulu offshore concession.
Since 2016, it has also been leading on a four year seismic, drilling and engineering work programme to explore and appraise areas that include the fields in the Ghasha concession.
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.