Bloomberg/Christopher Pikeby Kudakwashe Muzoriwa
Abu Dhabi National Oil Company (ADNOC) has awarded Russia’s Lukoil Oil Company (LUKOIL) a five per cent stake in the Ghasha ultra-sour gas concession, marking the first time that a Russian company joins an ADNOC concession.
LUKOIL will invest AED 697.3 million ($190 million) in the project which is expected to produce over 1.5 billion standard cubic feet of gas per day.
ADNOC maintains a majority stake in the concession, which also has Italy’s Eni, Germany’s Wintershall Dea and Austria’s OMV as concession holders.
“LUKOIL joins our other value-add partners on the Ghasha concession, which is integral to our objective of enabling gas self-sufficiency for the UAE,” said HE Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO.
Additionally, ADNOC, LUKOIL and the Russian Direct Investment Fund (RDIF) also signed a framework agreement to explore potential future cooperation in relation to the Ghasha concession.
In a statement, ADNOC said that it also signed a strategic framework agreement with Russia's Gazprom to explore collaboration opportunities in both the upstream and downstream sectors.
The agreement was signed on the sidelines of a state visit by Russian President Vladimir Putin to the UAE.
In addition to developing the Ghasha concession area, ADNOC plans to increase production from its Shah sour gas field from about 1.3 to 1.5 standard cubic feet per day of natural gas.