Abu Dhabi National Oil Company (ADNOC) has awarded a 40% interest in the Ruwais Diyab unconventional onshore gas concession in the United Arab Emirates to the French oil and gas company Total, which will explore, appraise and develop its resources. ADNOC will retain the remaining 60% stake in the concession. The agreement entails two exploration and appraisal phases for a period of up to 7 years, which will then be followed by a 40-year production term.
According to ADNOC, this concession is the first of its kind and marks the birth of the unconventional gas industry in the UAE. If the project bears oil and is economically-viable, it will help the company reach its objective of producing 1 bcf/d (28.3 mcm/d) of unconventional gas before 2030. The production will be used both to supply the domestic market and also to support the company's overseas growth target.
Total is already working with ADNOC on several projects and won a 20% stake in the offshore Umm Shaif and Nasr concession and a 5% interest in the Lower Zakum concession in March 2018. In 2017, the company's production in the UAE reached 290,000 boe/d.