The project is expected to produce over 1.5bn cft. of gas per day when it comes on stream
The Abu Dhabi government and the Abu Dhabi National Oil Company (ADNOC) have awarded Austria’s OMV a 5% stake in the Ghasha ultra-sour gas concession that comprises the Hail, Ghasha, Dalma, Nasr, Sarb and Mubarraz sour gas fields.
OMV, which joins Italy’s Eni and Germany’s Wintershall as ADNOC’s partners in the concession, will contribute 5% of the project capital and operational development expenses. Eni was awarded a 25% stake and Wintershall a 10% stake in the Ghasha concession in November.
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 Dr. Rainer Seele, Chairman of the Executive Board and CEO, OMV.
“This long-term strategic agreement with OMV underscores ADNOC’s commitment to maximizing value from Abu Dhabi’s substantial gas resources and to ensuring a sustainable and economic supply of gas, in line with the leadership’s directives,” commented Dr. Al Jaber.
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.
“This agreement marks a long-term commitment, and it is another important step in the successful implementation of our strategy 2025. With this agreement, we are expanding our already material position in the Middle East and are further shifting our upstream production towards gas,” remarked Dr. Seele.
OMV, which has a long-standing experience in the treatment of sour gas, collaborates with ADNOC in a number of areas. In April, it was awarded a 20% stake in Abu Dhabi’s Sarb and Umm Lulu offshore concession. OMV is also a shareholder in Borealis, ADNOC’s partner in Borouge, a leading global provider of innovative plastic solutions.
