On 13 November 2018 Eni SpA Chief Executive Officer Claudio Descalzi and H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Abu Dhabi National Oil Company (ADNOC) Group CEO signed a concession agreement to award Eni a new 25 percent stake in ADNOCâs offshore sour gas project. The Ghasha Concession, which has a term of 40 years, consists of the Hail, Ghasha-Butini, Dalma and other offshore fields which according to Eni are located in Abu Dhabi's "Al Dhafra region". Eni will contribute 25% of the development cost to enter into the concession agreement. The Hail, Ghasha and Dalma ultra-sour gas projects have been under evaluation by ADNOC Sour Gas, Occidental of Abu Dhabi Ltd (Occidental) and OMV Offshore Abu Dhabi GmbH (OMV) as the North-West Offshore Abu Dhabi (NWOAD) gas study area, so the division of equity following Eni's entry into the project is currently unclear.   The project is expected to yield over 1.5 billion cubic feet of gas per day (Bcf/d) when fully on stream around the middle of the next decade. ADNOC has estimated that gas produced from the Hail, Ghasha-Butini and Dalma fields could meet more than 20% of the UAEâs gas demand and produce over 120,000 barrels of oil and high value condensate per day.  Prior to the Eni announcement, ADNOC had invited expressions of interest (EOI) from suitable qualified EPC contractors for the planned Hail and Ghasha-Butini sour gas developments during 2Q 2018. On 9 January 2018 the company had announced the award of Front End Engineering Design (FEED) contracts for the Hail and Ghasha-Butini development to Bechtel and the Dalma field cluster to TechnipFMC. ADNOC estimates that the complex developments targeting Jurassic, Arab Formation sour gas reservoirs will produce over 1.0 billion cubic feet of gas a day (1 Bcfg/d) to the local market within the next 10 years. ADNOC Sour Gas and OMV are partners in the ongoing technical evaluation and development planning of sour gas resources within the NWOAD gas study area.   ADNOC Sour Gas is a joint venture company in which ADNOC holds a 60% interest and Occidental 40%. ADNOC Sour Gas was originally established in 2010 as Abu Dhabi Gas Development Company Limited (Al Hosn Gas) to develop sour gas reservoirs within the Shah gas field, but was renamed by ADNOC in October 2017. The NWOAD project originally envisaged the evaluation of undeveloped Ghasha-Butini and Hail field sour gas resources, but its remit was subsequently expanded to include a cluster of undeveloped oil and gas fields in the vicinity of Dalma Island.    In      August 2017, KBR was awarded a Project Management Services (PMC) contract      by OMV Offshore Abu Dhabi GmbH on behalf of ADNOC Sour Gas for management      of the Front End Engineering Design (FEED) phase of the Hail &      Ghasha-Butini Development project in Abu Dhabi. The infrastructure      requirements for the US$10 billion Hail & Ghasha-Butini project      include a minimum of eleven offshore artificial islands to be designed and      constructed.  KBR      will also perform PMC services for the Detailed Engineering phase of the      project under a contract awarded by Occidental, which is jointly managing      the project with OMV on behalf of ADNOC Sour Gas. Under the terms of the contract,      KBR will provide project management consultancy services over a work      period predicted to last 24 months.  Seabed      Geosolutions completed a shallow marine 3D seabed survey over the      Ghasha-Butini field (Ghasha Phase II survey) as part of the NWOAD gas      development project in June 2017. The US$ 60 million nine-month survey had      been initiated in October 2016.   In      mid-June 2017, the designated NWOAD operating company Al Hosn Gas awarded      environmental design and consulting company Arcadis the contract to conduct      a health, safety and environmental impact assessment (HSEIA) study, to      support its work in developing offshore Hail and Ghasha-Butini sour gas      reservoirs. According to Arcadis, both fields are located in the Marawah      Marine Biosphere Reserve, a UNESCO protected area that is home to several      important representative habitats. Al Hosn plans to create a number of      artificial islands that will enable it to develop then transfer gas and      associated liquids from both fields.   OMV      confirmed in March 2016 that it had signed a four year technical      evaluation agreement to participate with Abu Dhabi National Oil Company      (ADNOC) and Occidental in the delivery of seismic, drilling and      engineering work programmes for the exploration, appraisal and potential      development of a number of oil and gas fields within the NWOAD study area.      The fields to be studied include the Ghasha-Butini and Hail work areas for      which Occidental and ADNOC signed an initial two-year TEA in February      2015, in addition to other, as yet undefined field areas. It is understood      that this agreement therefore represented an extension and strengthening      of the original contract, with both OMV and Occidental contributing      seconded personnel and technical expertise to ADNOC to help undertake      evaluation studies.  In      recent years, the Fugro-CGG joint venture company Seabed Geosolutions      completed the Hail, Shuweihat and Ghasha Phase I surveys in support of the      project.  ADNOC      had awarded Seabed Geosolutions (CGG and Fugro J/V established February      2013) a US$125 million 12 month contract to undertake a 1,500 sq km      shallow water seabed survey over the Ghasha-Butini field on 27 July 2015.   Occidental      had signed a two year technical evaluation agreement with ADNOC to assess      the development prospects of the offshore (shelf) Hail and Ghasha fields      on 9 February 2015, with up to US$500 million earmarked for collaboration,      which included: 3D seismic surveys, appraisal drilling and engineering      studies. The original project provided ADNOC with a 70% share in the      partnership with Occidental holding the remaining 30%. Occidental is      partnered with ADNOC in the challenging US$10 billion Al Hosn sour gas      project at the onshore Shah field, where first gas was delivered in      January 2015.  Abu      Dhabi Oil Company Limited (Adoc) is licensed to develop Hail field oil      reservoirs. It awarded CGG Veritas a contract to acquire a new 3D seismic      survey over the offshore Hail field during 1H 2013. Survey operations were      completed in 2Q 2015. In August 2013, the company outlined its intention      to undertake appraisal and development drilling activities following      seismic acquisition, with a view to establishing early oil production from      the field during 2016.   Adoc      had signed a new Concession Agreement with the Supreme Petroleum Council      (SPC) in February 2011, which provided both the renewal of an existing      contract for three oil fields, namely the Mubarraz, Umm Al Anbar and      Neewat Al Ghalan, along with the addition of the Hail oil concession. The      30 year contract became valid in December 2012 following the expiry the      existing Concession Agreement. Adoc had stated that the Hail field      includes undeveloped potential and that the maximum rate of oil production      could be similar to that already achieved from its existing fields. It      indicated that a programme of seismic reprocessing, acquisition and      appraisal drilling would commence immediately.   Adoc rightholders to Hail oil field reservoirs are: Cosmo Oil Company Limited (63.0%), JX Nippon Oil & Gas Exploration Corporation (31.5%), Tokyo Electric Power Company Inc. (1.8%), Chubu Electric Power Company Inc. (1.8%) and Kansai Electric Power Company Inc. (1.8%).   The sour gas development rights for NWOAD study are including Hail, Ghasha-Butini and Dalma are divided between ADNOC Sour Gas (ADNOC & Occidental), OMV and Eni.
Adnoc has awarded a 25% stake to Eni in its huge Hail & Ghasha & Dalma offshore ultra-sour gas development projects. Adnoc is in discussion with further potential partners, for the remaining 15% of the available 40% stake in Ghasha concession, earmarked for foreign oil and gas companies.