ADNOC wins backing for E&P plans

Abu Dhabi’s Supreme Petroleum Council (SPC) has approved ADNOC’s new integrated gas strategy and its plans to increase its oil production capacity to 4 MMb/d by end-2020 and 5 MMb/d by 2030.

This will involve an increase in capital investment of AED486 billion (US$132.33 billion) between 2019 and 2023.

The main aims behind the strategy are to give the UAE self-sufficiency in gas, and eventually also gas export capability.

ADNOC aims to sustain LNG production through 2040 and to take advantage of incremental LNG and gas-to-chemicals growth opportunities, should these arise.

The SPC draws up and oversees implementation of Abu Dhabi’s petroleum policy and takes steps to ensure implementation across all areas of the country’s petroleum industry.

Earlier this year Abu Dhabi offered six blocks under its first licensing round, and awards for the first exploration and production licences should follow during the first quarter of 2019.

Successful bidders will enter into agreements giving them exploration rights and, provided that they achieve defined targets in the exploration phase, will be allowed to develop and produce any discoveries with ADNOC, under terms set out in the bidding package.

As for the new gas strategy, ADNOC will develop the offshore Hail, Ghasha and Dalma sour gas fields that tap into Abu Dhabi’s Arab formation, estimated to hold several tcf of recoverable gas.

The project should deliver more than 1.5 bcf/d of gas, and ADNOC has further plans to tap Abu Dhabi’s gas caps and unconventional gas reserves, as well as new gas accumulations, which it will continue to appraise and develop.

Source: Offshore Magazine