Ghasha ultra sour gas project : Lukoil acquires 5% stake from ADNOC

Russian energy company Lukoil has acquired a 5% stake in the Ghasha ultra sour gas project in the Arabian Gulf, offshore Abu Dhabi, from the Abu Dhabi National Oil Company (ADNOC).

The Ghasha ultra sour gas project will involve the development of previously undeveloped deposits of gas, oil and gas condensate across nine shallow fields, which include the Hail, Ghasha, Nasr, Dalma, Sarb and Mubarraz sour gas fields.

Apart from ADNOC, Lukoil will be joining Eni (25%), Wintershall Dea (10%) and OMV (5%) in the Ghasha Concession. The Ghasha ultra sour gas project is estimated to produce more than 40 million cubic meters per day of natural gas to go along with 120,000 barrels per day of crude oil and gas condensate.

Lukoil joins the Ghasha ultra sour gas project in the Arabian Gulf. Photo courtesy of Petroleum man1 at FreeDigitalPhotos.net.

Vagit Alekperov – President of Lukoil said: “The development of the Ghasha concession is the first LUKOIL project in the UAE and we are pleased to partner with ADNOC and cooperate with RDIF in this project.

“LUKOIL has extensive experience in offshore fields, both independently and in consortia with other major international companies. We are glad to enter the project in the UAE with such a significant resource base and with such experienced partners. Joining this project is fully consistent with our strategy.”

Apart from the Ghasha Concession agreement between Lukoil and ADNOC, a tripartite framework agreement on future cooperation pertaining to the Ghasha concession was signed by the two companies and the Russian Direct Investment Fund (RDIF), which is the sovereign fund of Russia.

Sultan Ahmed Al Jaber – Group CEO of ADNOC said: “LUKOIL joins our other value-add partners on the Ghasha concession, which is integral to our objective of enabling gas-self sufficiency for the UAE.

“The transaction is consistent with ADNOC’s targeted approach to engage with strategic partners that contribute the right combination of best-in-class expertise and advanced technology, market access or capital to unlock maximum value from Abu Dhabi’s resources for our mutual benefit while delivering the greatest possible returns to the UAE.”