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ADNOC AWARDS GERMANY'S WINTERSHALL 10% STAKE IN SOUR GAS PROJECT

Abu Dhabi National Oil Company awarded Germany’s biggest energy producer Wintershall a 10 per cent stake in the Ghasha ultra sour gas concession, the second foreign player to come on board the multibillion dirham project.

Wintershall, which is a unit of the world’s biggest chemical producer BASF, will contribute to 10 per cent of the cost of the 40-year concession, Adnoc said in a statement on Monday. When the project is complete, more than 1.5 billion cubic feet of gas will be produced per day in addition to more than 120,000 barrels of condensate per day.

It is the first German company to win a Abu Dhabi concession. In an interview with The National earlier this month, Wintershall chief executive Mario Mehren said Wintershall, which had tested and appraised two wells in the Shuwaihat region, was looking at possible tie-ups with larger sour-gas fields in the Hail, Ghasha concessions. Wintershall, which is currently in the process of merging with Russian-owned DEA, has 40 years of experience working in sour-gas fields in Germany.

Sour gas contains higher sulphur that has to be stripped to produce gas suitable for consumption. While condensate is a liquid similar to oil found with gas, but fetches a higher price as it is easier to refine into by-products. Much of the gas reserves in Abu Dhabi are sour in nature.

“Development of the Ghasha concession area is a strategic priority for Adnoc,” said Dr Sultan Al Jaber, Adnoc group chief executive. “The gas, extracted from the concession area, at commercial rates, will make a significant contribution to fulfilling our commitment to ensuring a sustainable and economic gas supply and achieving our objective of gas self-sufficiency for the UAE.”

Source: The National

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