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New shallow gas reserve discovery fuels UAE’s self-sufficiency bid

Abu Dhabi, Dubai Make Gas Discovery in Push for Self-Sufficiency

Abu Dhabi National Oil Company (ADNOC) today announced a new gas find with 80 trillion standard cubic feet (TSCF) of shallow gas resources, which could contribute to the country’s goal to achieve self-sufficiency in gas.The discovery was within an area of 5,000sq km between Abu Dhabi and Dubai, with ADNOC drilling more than 10 exploration and appraisal wells.

ADNOC, which is the country’s biggest energy company currently pumping some 3 million b/d, and Dubai’s gas supplier, has signed an agreement with Dubai Supply Authority (DUSUP) for the ‘Jebel Ali’ project, which will see exploration and development of shallow gas resources in this area and the gas produced will be supplied to DUSUP in order to aid Dubai’s economy and bolster its energy security, according to a statement released by the company today. DUSUP currently imports gas from Qatar through Dolphin Energy, the joint venture between Abu Dhabi’s Mubadala Investment Co, Occidental Petroleum and Total.

The company statement also adds, “As part of ADNOC’s 2030 strategy, the company 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.”

Interestingly this is the first time, the state-owned energy company has ventured into hydrocarbon resources in Dubai. Last year, Abu Dhabi’s Supreme Petroleum Council’s announced increases in hydrocarbon recoverable reserves of 7 billion stock tank barrels of oil and 58 TSCF of conventional gas, bringing the total to 105 billion STB of recoverable oil, 273 TSCF of conventional gas, which probably aids in boosting UAE’s position to sixth place in global rankings. The unconventional gas resources stood at 160 TSCF.

Read: Adnoc to Kick Off $5 Billion Gas Pipeline Lease Deal

With the UAE wanting to achieve self-sufficiency in gas, ADONC is already working with partners such as German-based Wintershall and Italy’s ENI to develop the Ghasha ultra-sour gas concession, expected to bring in a production of over 1.5 Bscf/d by around 2025.

Its joint venture with Occidental on the Shah sour gas field is expected to boost production from about 1.3 Bscf/d to 1.5 Bscf/d along with plans in the pipeline to develop the Bab and Bu Hasa sour gas fields.

This discovery is the second discovery this month and follows the discovery of gas and condensates in Sharjah. The announcement was made by Eni and the UAE’s Sharjah National Oil Corp (SNOC) and according to SNOC, this is the first onshore Sharjah discovery in 37 years, with the well-achieving flow rates of up to 50 Mscf/d of lean gas and associated condensate.

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