Claudio Descalzi, the CEO of Eni (Left) and HE Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO (Right).by Kudakwashe Muzoriwa
The Abu Dhabi National Oil Company (ADNOC) has signed an agreement with Italy’s Eni to explore new opportunities for collaboration in carbon capture utilisation and storage (CCUS) and additional opportunities in research and development (R&D) across the oil and gas value chain.
ADNOC stated that the deal builds on the Abu Dhabi based state-energy giant’s recently announced sustainability goals, particularly to decrease its greenhouse gas (GHG) intensity by 25 per cent by 2030, enabled by its industry-leading CCUS programme.
HE Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said, “The agreement underscores ADNOC’s targeted approach to value-add partnerships that are enabling us to unlock and maximise value from Abu Dhabi’s substantial hydrocarbon resources as we deliver our 2030 smart growth strategy.”
ADNOC and Eni agreed to jointly explore opportunities for collaboration in relation to innovative geomechanical and geochemical workflows for CCUS programmes as well as in advanced analysis and modelling of thermally induced fractures in oil and gas reservoirs.
Geomechanics refers to the study of how subsurface rocks deform or fail in response to changes in stress, pressure, and temperature while geochemistry relates to the study of the chemical composition of the earth’s crust.
“Both companies will collaborate to pursue new mid-term solutions aimed at leading the current energy transition in line with Eni’s decarbonization strategy aimed to achieve net-zero emissions in its upstream business by 2030 and ADNOC’s recently announced sustainability goals,” said Claudio Descalzi, the CEO of Eni.
The duo also agreed to assess additional strategic opportunities for collaboration in R&D that can potentially optimise performance, drive efficiencies and unlock greater value for both companies.
According to ADNOC, the collaboration in R&D aligns with its strategy to drive innovation and seek new advanced technologies to enable the oil company to maximise value from every barrel of oil it produces.
In 2018, ADNOC awarded Eni a 10 per cent stake in the Umm Shaif and Nasr Offshore concession and a five per cent stake in the Lower Zakum concession, marking the first time an Italian energy company was granted concession rights in Abu Dhabi’s oil and gas sector.
Furthermore, ADNOC awarded two offshore blocks—Offshore 1 and Offshore 2—to a consortium led by Eni and Thailand’s PTT Exploration and Production Company in January 2019.
The collaboration between the two entities follows the establishment of Al Reyadah facility, the first commercial-scale CCUS facility in the Middle East.
Currently, the Al Reyadah facility has the capacity to capture 800,000 tonnes of carbon dioxide annually.