The Supreme Council for Financial and Economic Affairs Awards Oil and Gas Production Concessions in Abu Dhabi

The Supreme Council for Financial and Economic Affairs (SCFEA) in Abu Dhabi has recently announced the awarding of three separate oil and gas production concessions to the Abu Dhabi National Oil Company (ADNOC) and its partners. These concessions cover both onshore and offshore blocks and are part of Abu Dhabi’s strategy to enhance its energy sector.

Onshore Block 4

In the first concession agreement, ADNOC has secured a 60% stake in onshore Block 4, with Japan’s JODCO Exploration Limited (JEL), a subsidiary of Inpex Corporation, holding the remaining 40%. This block is located north of Abu Dhabi City and is expected to contribute to the region’s petroleum resources.

Offshore Blocks 2 and 5

The second concession agreement involves offshore Block 2, where ADNOC holds a 60% stake, Eni Abu Dhabi (a subsidiary of Italy’s Eni) has 28%, and PTTEP MENA (an affiliate of Thailand’s PTTEP) received a 12% interest. This block is situated west of the Ghasha field off the coast of Abu Dhabi.

Lastly, ADNOC and Pakistan International Oil Limited (PIOL) have been awarded the concession for offshore Block 5, with ADNOC holding 60% and PIOL having a 40% stake. Block 5 is located near the Zakum field offshore the UAE and is crucial for meeting the country’s energy demands.

ADNOC’s Gas Asset Optimization

ADNOC Gas has recently made a final investment decision (FID) for the first phase of its gas asset optimization project, aimed at unlocking new gas reserves. To bring this project to fruition, ADNOC has partnered with Wood, Petrofac, and Kent, showcasing its commitment to expanding its gas portfolio.

Future Plans for ADNOC

ADNOC’s XRG has outlined ambitious goals in its five-year business plan, aiming to become a leading global player in the gas and liquefied natural gas (LNG) sector. By 2035, ADNOC plans to have a capacity of 20–25 million tons per annum (mtpa), solidifying its position in the energy market.