Abu Dhabi National Oil Company (ADNOC) in a statement said that it signed an agreement with DUSUP to explore and develop the shallow gas resources in the area between Abu Dhabi’s Saih Al Sidirah and Dubai’s Jebel Ali in a joint project named ‘Jebel Ali’.  

This signing of the agreement was witnessed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates (UAE) and Ruler of Dubai, and His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.

The agreement was signed by H.H. Sheikh Ahmed bin Saeed Al Maktoum, Director General of DUSUP, and His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO.

The discovery of the 80 TSCF of shallow gas resources was made within an area of 5,000 square kilometres between the two emirates with ADNOC drilling more than 10 exploration and appraisal wells, signifying the first time ADNOC has explored for hydrocarbon resources in Dubai.

H.H. Sheikh Ahmed bin Saeed said: “The agreement is an important step forward in further enhancing cooperation and tapping synergies to maximise the UAE’s resources, as part of our leadership’s vision for the next 50-year phase of development. This partnership enables our organisations to combine each other’s capabilities to capture the greatest possible benefits from the UAE’s hydrocarbon assets.

“We look forward to working closely with ADNOC to further explore gas resources in the area between Abu Dhabi and Dubai as part of diversifying our energy resources. This collaboration will contribute to raising our long-term energy security, which is crucial to realiing our aspirations in a new economic era of growth to be a leader in shaping the future of the region and the world, as well as enhancing the happiness and welfare of our people.”

H.E. Dr. Al Jaber said: “The discovery of shallow gas resources between Abu Dhabi and Dubai is a result of ADNOC’s drive to implement the leadership’s wise directives to efficiently accelerate the exploration and development of the UAE’s vast untapped hydrocarbon resources and maximise its value for the benefit of the nation. It reinforces ADNOC’s commitment to ensuring a sustainable and economic gas supply and achieving gas self-sufficiency.

“The strategic cooperation agreement between ADNOC and DUSUP is a natural evolution of our shared commitment to harness energy resources in the service of the UAE. We look forward to swiftly progressing the ongoing work and further exploring, appraising and developing the area by leveraging ADNOC’s best-in-class expertise and innovative technologies to ensure the success of the project. We see significant potential in this joint project to create long-term and enduring value for the nation.”

Liam Yates, an analyst on Wood Mackenzie’s Middle East upstream team, said: “The find ranks as the largest global gas discovery since Galkynysh (South Iolotan). The Turkmen field was discovered in 2005. The shallow nature of the find will mean that development costs will be much lower than some of Abu Dhabi’s sour gas resources.”
He added: “A discovery of this scale will be a clear priority for development, but the timing will be dependent on where it fits into the UAE’s gas market. Large volumes of gas are associated with oil production, which is on the rise.

As part of today’s agreement, in collaboration with DUSUP, ADNOC will deploy capital, technology, and expertise to develop and produce shallow gas resources and conduct further exploration to assess further volumes and firm up development costs.

The gas produced will be supplied to DUSUP, to support Dubai’s economic growth ambitions and enhance its energy security as it reinforces its position as a pivotal hub of the global economy.

The discovered reservoir is unique and is referred to as ‘shallow gas’, as it contains high-quality organic gas at relatively shallow depths from the earth’s surface. ADNOC is utilising both conventional and unconventional drilling and completion technologies and methods to access this trapped gas, including horizontal drilling and hydraulic fracturing to enable optimal productivity while reducing the number of drilling rigs required.

As part of ADNOC’s 2030 strategy, the company also plans to tap gas from its gas caps and substantial 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.

(Pipeline)