The Abu Dhabi National Oil Company (ADNOC) and Total announced the delivery of the first unconventional gas from the United Arab Emirates (UAE). The unconventional gas was delivered from the Ruwais Diyab Unconventional Gas Concession located 200 km west of Abu Dhabi city.
This achievement marks a significant milestone towards future full field development and is an important step towards ADNOC’s target of producing 1 billion standard cu ft of gas from the concession before 2030, ultimately enabling gas self-sufficiency for the UAE.
First gas from Ruwais Diyab comes two years after ADNOC and Total signed the region’s first unconventional gas concession agreement. In addition, this initial production milestone marks the first time an unconventional gas development in the Middle East delivers gas to pipeline so early in the project timeline.
The accelerated progress was made possible by the strong commitment and collaboration between ADNOC and Total, enabling them to fast track the exploration of these unconventional gas resources, while tailoring operations to the UAE’s shale play type.
“This achievement marks another important milestone in the development of the UAE’s unconventional gas resources as we deliver on our integrated gas strategy and work to achieve gas self-sufficiency for the nation,” Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said. “The accelerated progress in Ruwais Diyab is a testament to the long-standing partnership between ADNOC and Total, which has enabled us to expedite the learning curve in the production of unconventional gas resources, provided cost optimization opportunities and driven efficiencies. All of these remain key as we move forward with confidence to further develop the concession and unlock its substantial potential to drive sustainable value for the UAE and its people.”
This milestone builds on ADNOC’s continuous efforts to de-risk unconventional gas resources across Abu Dhabi since 2016 and comes just over a year after Abu Dhabi’s Supreme Petroleum Council (SPC) announced the discovery of 160 trillion sq cu ft of unconventional gas recoverable resources.
The unconventional gas is delivered through a purpose-built gas pipeline and centralized early production facility in the Diyab field, which enables distribution through ADNOC’s gas network. The Ruwais Diyab Unconventional Gas Concession greatly benefits from its strategic location near ADNOC’s Ruwais industrial area, providing market access and allowing operations to leverage ADNOC’s expansive existing infrastructure which will continue to benefit the UAE’s evolving unconventionals industry.
In November 2018, ADNOC signed an agreement with TOTAL granting it a 40% stake in the Ruwais Diyab Unconventional Gas Concession. Under the terms of the agreement, Total will explore, appraise and develop the concession area’s unconventional gas resources. In addition to developing the Ruwais Diyab concession, ADNOC will unlock gas resources from its Ghasha concession and Abu Dhabi’s giant gas caps, as well as new natural gas accumulations, which will continue to be appraised and developed as the company pursues its exploration activities.