For the first time, a German oil & gas company joins an Abu Dhabi concession
The Abu Dhabi Government and the Abu Dhabi National Oil Company (ADNOC) have added Wintershall Holding GmbH to the Ghasha ultra-sour gas mega project with a 10% stake. Wintershall will contribute 10% of the project capital and operational development expenses.
Germany’s largest crude oil and natural gas producer and a wholly owned subsidiary of BASF, the world’s largest chemicals company by sales, joins Italy’s Eni as partners with ADNOC in the project. The agreement marks the first time a German oil and gas company has been awarded a stake in an Abu Dhabi concession area.
The concession agreement, which has a term of 40 years, was signed by HE Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Mario Mehren, CEO, Wintershall.
“Development of the Ghasha concession area is a strategic priority for ADNOC. The gas, extracted from the concession area, at commercial rates, will make a significant contribution to fulfilling our commitment to ensuring a sustainable and economic gas supply, and achieving our objective of gas self-sufficiency for the UAE,” said Dr. Al Jaber.
The Ghasha ultra-sour concession will tap into the Arab basin, which is estimated to hold multiple trillions of standard cubic feet of recoverable gas. The project is expected to produce over 1.5 billion cubic feet of gas per day when it comes on stream around the middle of the next decade, enough to provide electricity to more than two million homes. Once complete, the project will also produce over 120,000 barrels of oil and high value condensates per day.
“Natural gas production in Abu Dhabi complements our existing portfolio in an ideal way. We have decades of experience to offer in safely developing sour gas fields. We will contribute our technical know-how, strength in implementing projects and cost-effectiveness, commented Mehren.
