The Abu Dhabi National Oil Company (ADNOC) has awarded Wintershall a 10% stake in the offshore ultra-sour gas Ghasha concession, the German company announced on November 26.
The 40-year concession agreement was signed by Sultan Ahmed Al Jaber, UAE minister of state and ADNOC CEO, and Mario Mehren, CEO of Wintershall, in the presence of BASF CEO Dr Martin Brudermuller.
This is Wintershall’s first gas and condensate venture in Abu Dhabi.
“We are delighted to be partners in this project, supporting ADNOC’s 2030 smart growth strategy”, Mehren said during the signing ceremony.
“We want to establish a strong and long-term cooperation in Abu Dhabi. Together with ADNOC, we will build up substantial production,” he added.
The deal comes after the Supreme Petroleum Council’s (SPC) approval of ADNOC’s new integrated gas strategy. The plan aims to maximize the value of available gas reserves in the UAE, enabling the country to achieve self-sufficiency and become a net gas exporter.
Earlier this month ADNOC awarded Italian oil major Eni a 25% stake in the Ghasha concession for a 40-year period. Wintershall will work with Eni and ADNOC to develop the field, which is scheduled to start producing by the middle of the next decade. The concession is expected to deliver more than 40 million cubic meters of natural gas and 120,000 barrels of crude per day.
The Ghasha concession consists of the Hail, Ghasha, Dalma and other offshore sour gas and condensate fields including Nasr, SARB and Mubarraz.