Business

OMV Sells 5% Stake in Ghasha Concession to Lukoil

Austria-headquartered oil and gas player OMV said that it has entered into a deal with Lukoil Gulf Upstream, a subsidiary of Russia’s Lukoil, to divest 5% of its stake in Ghasha Concession, a giant sour gas development off the coast of the United Arab Emirates (UAE) for a cash consideration of $594 million minus $100 million transaction fee.

Ghasha concession, said to be the world’s largest offshore sour gas development, is owned by a consortium led by Abu Dhabi National Oil Company (ADNOC), which holds a 55% stake. As OMV has opted to dispose of its interest, the list of other shareholders will now include Eni (25%), PTTEP (10%), and Lukoil (10%).

The concession comprises multiple projects, encompassing the Hail, Ghasha, Dalma, Nasr, Satah al Razboot (SARB), Bu Haseer, Shuweihat, and Mubarraz offshore sour gas fields. ADNOC made a final investment decision (FID) in 2023 and handed out a batch of contracts valued $16.9 billion for the Hail and Ghasha offshore gas development.

Gas Production

The Ghasha concession in Abu Dhabi, which includes the Hail and Ghasha, is expected to produce more than 1.5 billion standard cubic feet per day of gas by 2030.

The first steel for structures for the project was installed last year and the development will entail fully unmanned offshore facilities, aims to operate with net-zero carbon dioxide (CO2) emissions, supporting the UAE player’s net-zero by 2045 ambition.

This project is part of the Ghasha concession, a key component of ADNOC’s integrated gas masterplan and an important enabler of gas self-sufficiency for the United Arab Emirates, which is set to produce more than 1.5 billion standard cubic feet per day (bscfd) of gas before the end of the decade.

The Hail and Ghasha development design combine decarbonisation technologies into one integrated solution, aiming to capture 1.5 million tonnes per year (MTPA) of CO2, taking ADNOC’s committed investment for carbon capture capacity to almost 4 MTPA.

Global Business Magazine

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