UAE Inks Deal With Italy's Eni To Boost Gas Output

State-owned Emirati energy giant ADNOC signed a concession deal with Italy's Eni on Tuesday for the production of natural gas from an offshore mega project, a statement said.

Abu Dhabi, (APP - UrduPoint / Pakistan Point News - 13th Nov, 2018 ) :State-owned Emirati energy giant ADNOC signed a concession deal with Italy's Eni on Tuesday for the production of natural gas from an offshore mega project, a statement said.

Under the 40-year contract, Eni was granted a 25-percent stake in the multi-billion Dollar project in the Hail, Ghasha and Dalma fields, ADNOC said in a statement.

The project aims at producing some 1.5 billion cubic feet per day of ultra-sour natural gas by the middle of next decade, the statement said.

Sour-gas is gas that contains significant amounts of hydrogen sulphide and carbon dioxide. Most of UAE reserves are sour-gas.

ADNOC will retain 60 percent of the project and is looking for another foreign partner to acquire the remaining 15-percent stake.

The new contract comes amid a push by the United Arab Emirates to achieve self-sufficiency in gas production and become a net exporter.

At present, the Gulf state imports a part of its gas requirements from Qatar through a pipeline.

Last week, UAE's supreme petroleum council approved investments worth $132 billion over the next five years to boost oil and gas production.

On Monday, ADNOC signed a cooperation deal with Saudi energy giant Aramco aimed at bolstering gas production.

On Sunday, it granted French major Total an exploration and production concession agreement for unconventional natural gas.

The concession agreement aims at producing one billion cubic feet per day of gas by 2030.

The UAE, the OPEC oil cartel's fourth largest producer, pumps around three million barrels per day.