Total and Abu Dhabi National Oil Company (ADNOC) signed a concession agreement to launch an unconventional gas exploration program in Abu Dhabi, United Arab Emirates, Total announced Monday.
The program will be launched "in the high-potential Diyab play that spreads over 6,000 square kilometers [600,000 hectares] to the west of the prolific ADNOC onshore concession in Abu Dhabi," according to the energy giant's statement.
The concession allows for two exploration and appraisal phases for a period of up to seven years, followed by a 40-year development and production period.
Total will operate the exploration phase of this new concession with a 40 percent interest, while ADNOC will hold the remaining 60 percent interest.
"In case of positive exploration, this multi-Tcf [trillion cubic feet] opportunity will be developed in stages in line with the growing gas demand in the United Arab Emirates and potential export opportunities," the statement added.
Total Chairman and CEO Patrick Pouyanne said they were pleased to be the first international company to pioneer unconventional gas exploration in Abu Dhabi alongside ADNOC.
"The Diyab play has the potential to be a high-impact play ranking alongside the most prolific North American shale gas plays, and is an excellent addition to our exploration portfolio," he added.
According to the statement, Total has been present in the U.A.E. for almost 80 years, and in 2017, the group's equity production in Abu Dhabi was 290,000 barrels of oil equivalent per day.
By Hale Turkes