Friday , April 23 2021

Wintershall signs agreement with ADNOC to acquire 10%

ADNOC, Wintershall and Eni share the development of the Gasha franchise

ADNOC, Wintershall and Eni share the development of the Gasha franchise

The Abu Dhabi National Oil Company (ADNOC) has signed a concession agreement with the German company Wintershall Holding GmbH (GMP), which acquired a 10% stake in the Gasha concession.

The concession area includes the "Hail", "Gasha" and "Dalma" fields, as well as other sour gas fields, including "Nasr" and "Serbs" and "Mabarz".

Under the terms of the agreement, Wintershall will bear 10% of the capital, operating and development expenses of the project.

Wintershall, the largest German company for the production of crude oil and natural gas and wholly owned by BASF, the world's largest chemical company in sales, is joining ADNOC's partners in this project, together with Italy's Eni, 25% in the "Gasha" concession under an agreement signed earlier this month.

The agreement with Wintershall is the first participation of a German oil and gas company in an Abu Dhabi concession and is in line with ADNOC's strategic partnership expansion and diversification program.

The agreement was signed by Dr. Sultan bin Ahmed Al Jaber, Minister of State and Executive Director of the Abu Dhabi National Oil Company (ADNOC) and his Group of Companies, and Mario Mehrin, CEO of Wintershall.

"The development of the Gasha concession is a strategic priority for ADNOC, where gas will contribute to the provision of sustainable economic gas supplies to meet local needs and achieve the gas self-sufficiency goal.

"ADNOC and Wintershall have significant experience in assessing and developing high acid gas resources in fields with complex technical characteristics. This partnership brings mutual benefits and enables the exchange of knowledge and experience to reduce costs and ensure the maximum value of all resources In addition to establishing Abu Dhabi as a center of excellence in high acid gas development projects, taking advantage of significant ADNOC experience in acid gas production. "

The agreement reflects strong momentum following the adoption of the new ADNOC gas strategy, which aims to maximize the value of gas reserves in Abu Dhabi and support the efforts of the United Arab Emirates to achieve gas self-sufficiency and export potential.

Gasha's high acid gas concession aims to exploit Arabian reservoir resources, which should contain several trillion cubic feet of recoverable gas standard. The project should produce more than 1.5 billion cubic feet of gas per day Half a decade.

The Gasha franchise is expected to produce enough gas to meet the needs of more than 2 million households. When the project is completed, it will also produce more than 120,000 barrels of high-value oil and condensate daily.

The project will contribute to the development of a high acid gas center in the region and will benefit the local economy through ADNOC's local value-added program, which aims to improve local content, strengthen cooperation with private sector companies and provide more opportunities to promote growth. Economic and social development and to provide additional jobs for private sector citizens.

Mehrin said the project is strategic and contributes to supporting the implementation of ADNOC's integrated 2030 strategy for smart growth and is aligned with Wintershall's strategy and its continued efforts since 2010 to increase its presence in the Middle East by investing in Abu Dhabi and developing their investments to create a new growth zone. .

He added that his company hopes to establish long-term and long-term cooperation with Abu Dhabi through work with ADNOC, and crowning cooperation with a large and sustainable production.

"The production of natural gas in Abu Dhabi is ideally complemented by our current portfolio of projects and we have decades of experience in the development of safe gas fields and will contribute to our knowledge and efficiency in implementing projects at an effective cost in Abu Dhabi in the coming decades. "

"Wintershall is particularly qualified for maritime operations in the Gasha concession," Mehrin said, referring to the company's technical expertise in drilling wells, efficiently developing fields and knowing what to consider in sensitive environmental areas.

In addition to the development of the Gasha concession, ADNOC plans to increase Makman Shah's production to 1.5 billion cubic feet per day and further develop the Bab and Bouhsa gas fields, maximizing the value of other gas sources in Abu Dhabi, including gigantic gas coverage in the Umm Al Shef reservoir and unconventional gas reserves, as well as new natural gas reserves, which will continue to be assessed and developed as the company continues its exploration activities.

Wintershal specializes in the exploration, development and production of oil and gas using state-of-the-art technology and has more than 40 years of experience in the production of acid gas. The company has developed 16 fields in Germany, produces 30 billion cubic meters of acid gas and built four gas purification plants. Wintershall has been active in extracting natural resources for 120 years and exploring and producing crude oil and natural gas for over 85 years.

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