Page 4 - MEOG Week 31 2022

MEOG COMMENTARY MEOG

ADNOC announces gas find,

makes contract awards

The Emirati firm has continued recent success at acreage awarded
following its 2019 licensing round, with drilling contracts also handed out.

UAE ABU Dhabi National Oil Co. (ADNOC) last in February, the concession has a current total
week announced its second gas discovery in its amount of gas in place hit by a single well of 2.5-
Offshore Block 2 concession, shortly after hand- 3.5 trillion cubic feet (71-99 bcm).
WHAT: ing a $2bn contract to its own drilling arm. Italian firm Eni was awarded a 70% stake in
The discovery of more The Emirati giant is enjoying a rich run of the nine-year exploration phase for 4,033 square
gas at Offshore Block exploration success, having disclosed the discov- km Offshore Block 2 during ADNOC’s first
3 almost doubles the ery of 650mn barrels of oil across the Bu Hasa competitive bid round in 2019, with Thailand’s
size of the concession’s oilfield, Onshore Block 3 and the Al Dhafra state-owned PTTEP holding the remainder.
resource estimate, Petroleum concession in May. Meanwhile, the Following the exploration phase, the conces-
following a similarly latest gas discovery nearly doubles the volume of sion could be extended for a 35-year develop-
sized find in February. gas found in Offshore Block 3, following a Feb- ment and production phase, in which ADNOC
ruary announcement. has the customary option to take a 60% stake.
WHY: The parent company is also reaping the ben- Yaser Saeed Almazrouei, executive director
ADNOC is working to efits of its efforts to expand through the hydro- for upstream at ADNOC, said: “This discovery
expand its gas production carbon value chain as ADNOC Drilling is set further highlights how ADNOC’s accelerated
capacity as it looks to to carry out major work on the giant Ghasha exploration and development programme is
decarbonise its domestic Concession – the world’s largest offshore sour identifying untapped hydrocarbon resources,
energy mix. gas development – amid efforts to achieve gas creating long-term value for the UAE. We are
self-sufficiency by the end of the decade. particularly pleased to see Eni and PTTEP pur-
WHAT NEXT: suing deeper zones, which has demonstrated
The firm’s drilling and Offshore Block 2 additional potential resources in place. We look
logistics subsidiaries are According to a statement issued by ADNOC, the forward to continuing to work with all our stra-
the key beneficiaries for latest discovery shows 1-1.5 trillion cubic feet tegic partners to sustainably identify and further
the latest raft of work (28-42.5bn cubic metres) of raw gas. Added to unlock Abu Dhabi’s hydrocarbon resources.”
to be handed out on the the volumes discovered from a shallower target Commenting on the deal via social media
giant Ghasha sour gas
project.

P4 www. NEWSBASE .com Week 31 03•August•2022