Prime Highlights
- SCFEA awarded the Bab Gas Cap concession to Adnoc and international energy partners.
- The project is expected to produce 1.5 billion standard cubic feet of natural gas daily.
Key Facts
- Adnoc will hold a 60% participating interest in the concession.
- The project represents about 15% of Adnoc Gas’ operational processing capacity.
Background
The Supreme Council for Financial and Economic Affairs (SCFEA) awarded one of the biggest natural gas projects in the UAE to the Abu Dhabi National Oil Company (Adnoc) and an international consortium of energy firms.
Under the agreement, Adnoc will hold a 60% participating interest in the concession. The remaining stake will be shared among international partners, including TotalEnergies, BP, CNPC International, Jodco Onshore, China ZhenHua Oil and Korea GS E&P.
The Bab Gas Cap Development and Production Concession is considered the world’s largest gas cap development project of its kind. On completion, the project is supposed to generate roughly 1.5 billion standard cubic feet of natural gas on a daily basis.
The estimated production volume would constitute 15% of Adnoc Gas’s total gas processing capabilities and thus become a notable contribution to the UAE’s energy industry.
The officials noted that the project would assist in achieving the country’s ambitions towards ensuring gas self-sufficiency, addressing the rising demand for energy in the country, as well as providing raw material for the growing petrochemical industry.
According to SCFEA, the deal was in line with the mission of ensuring the sustainable development of the natural resources of Abu Dhabi while optimizing their economic benefits. The council also noted that the project reflects the commitment of the country towards remaining a trustworthy energy provider globally.
The deal also reflects the ongoing trust in the UAE energy industry and is likely to bring in long-term investments for the country.
