Lukoil acquires stake in Abu Dhabi Ghasha concession

The Abu Dhabi government and the Abu Dhabi National Oil Company (ADNOC) have awarded Lukoil a 5% stake in the Ghasha ultra-sour gas concession that comprises the Hail, Ghasha, Dalma and other offshore sour gas fields in the Emirate of Abu Dhabi.

In addition, ADNOC, Lukoil and the Russian Direct Investment Fund (RDIF) have signed a framework agreement to explore potential future cooperation in relation to the concession.

The award marks the first time that a Russian company joins an ADNOC concession. Lukoil is to invest an initial sum of $190mn as a signing fee for the concession, in which ADNOC will maintain a majority stake. Other concession holders include Italy’s Eni, Germany’s Wintershall Dea and Austria’s OMV.

The Ghasha mega-project is expected to produce over 1.5bn cf/d of natural gas by around 2025. More than 120,000 b/d of oil and high-value condensates are also expected to be produced.

In addition to developing the Ghasha concession area, ADNOC plans to increase production from its Shah sour gas field from about 1.3bn to 1.5bn cf/d of natural gas. The company also plans to tap gas from its gas caps and unconventional gas reserves, as well as new natural gas accumulations, which will continue to be appraised and developed as the company pursues its exploration activities.