Offshore staff
LONDON — Abu Dhabi National Oil Co. (ADNOC) will have to spend more than $40 billion if the UAE is to achieve a stated goal of gas self-sufficiency, according to a report from Wood Mackenzie.
This is due to the complex nature of the nation’s offshore and onshore gas resources.
The report, the third and final part of the "ADNOC Trilogy," examined projects ADNOC is looking to instigate, including sour and unconventional gas fields previously considered too complex and costly to develop.
A key example is the offshore Ghasha development where ADNOC aims to produce 1 Bcf/d before 2030. The Ghasha concession contains nine offshore fields.
“The high costs associated with an offshore ultra-sour gas development, the sulfur handling requirements and the typically low domestic gas prices result in challenging economics with cost estimates of at least $20 billion,” said Alexandre Araman, principal analyst, Middle East Upstream at Wood Mackenzie.
The company is examining all options in its push for more gas, he added.
“Its growth strategy, approved by the Supreme Petroleum Council in 2018, relies on the development of ultra-sour gas, unconventional and gas cap resources," Araman said. "Associated gas expansion is also expected to contribute as well as exploration and new discoveries.”
10.10.2023
