BP signed a concession agreement alongside ADNOC and its partners to participate in the development of the Bab Gas Cap project, located in Abu Dhabi. As part of the agreement, the British company acquired a 10% stake in this initiative, which is considered the largest gas development of its kind worldwide.
The project envisions a production of up to 1.5 billion cubic feet of gas per day, in addition to condensate, by tapping into three reservoirs located in the Bab field, one of the largest onshore oil assets in the United Arab Emirates.
An international consortium will drive the development
The concession is led by ADNOC with a 60% stake, while BP and TotalEnergies each hold 10%. The rest of the consortium is composed of CNPC (8%), INPEX (5%), ZhenHua Oil (4%), and GS Energy (3%).
Furthermore, BP will lead the activities related to the development of the Bab field within the project, strengthening its presence in one of the Middle East’s primary energy hubs.
The project will contribute to the United Arab Emirates’ gas supply
Bab Gas Cap is part of ADNOC’s strategy to increase domestic natural gas production and support the country’s energy self-sufficiency goals.
The planned production will also provide feedstock to support the expansion of liquefied natural gas (LNG) exports driven by Abu Dhabi’s national company.
BP consolidates a relationship of more than eight decades with Abu Dhabi
The new concession extends BP’s track record in projects accessing already discovered resources, following its recent progress in Iraq, India, and Azerbaijan.
Additionally, the company has maintained a presence in Abu Dhabi since 1939 and participated in the emirate’s oil discovery in 1958. It currently also holds a 10% stake in ADNOC Onshore, ADNOC LNG, the National Gas Shipping Company (NGSCO), and the Ruwais LNG development project.
With this agreement, BP reinforces its international gas production portfolio while ADNOC advances its strategy to increase energy supply and consolidate the United Arab Emirates’ position as a natural gas supplier in international markets.
Source and photo: bp