Thailand-based PTT Exploration & Production (PTTEP) has acquired a 10 percent stake in ADNOC’s Ghasha concession, one of the largest natural gas fields in Abu Dhabi.
This strategic investment will add to the company’s petroleum reserves.
Montri Rawanchaikul, CEO of PTTEP, said PTTEP MENA Ltd, a subsidiary of PTTEP, has signed an agreement with Wintershall Dea, a German energy company, to buy a 10 percent stake in the concession. This transaction has been approved by the regulatory authorities and will add to the company’s petroleum reserves in line with its strategic plan.
“The acquisition of the Ghasha concession marks an important step in strengthening PTTEP’s Middle East investment portfolio. Additionally, the proximity of the concession location will pave the way for further collaboration among the joint venture partners that will be beneficial to the project achievement,” said Montri.
Adnoc Group owns and operates the Ghasha concession, with a controlling stake of 55 percent. After this deal, the other stakeholders in the asset include PTTEP Holding (10 percent), Russia’s Lukoil and Austria’s OMV (5 percent each), and Italian energy giant Eni (25 percent).
What is the Ghasha concession?
Ghasha concession, which encompasses Hail, Ghasha, Dalma, Nasr, Satah al Razboot (SARB), Bu Haseer, Shuweihat, and Mubarraz offshore sour gas fields, is set to produce more than 1,500 million standard cubic feet per day (MMSCFD) of gas before the end of the decade, PTTEP said in its press release. Moreover, the project will capture 1.5 million metric tons per annum (mmtpa) of carbon dioxide as it aims to operate with net zero emissions.
Notably, the project has included one of the biggest baseline assessments of the UAE’s marine environment ever conducted, and the construction of artificial islands minimizes drilling and dredging while creating new homes for marine species.
The Ghasha concession area is situated in the proximity of offshore blocks 1, 2 and 3, where PTTEP holds a stake in these exploration concessions.
Last year in October, Adnoc and its partners awarded engineering, procurement, and construction (EPC) contracts for $16.94 billion for the Hail and Ghasha megaproject. This was the largest capital outlay the Abu Dhabi energy giant has ever undertaken on a single project.
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