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A consortium led by Abu Dhabi National Oil Company (ADNOC) has been awarded the concession agreement for the development and production of the Bab Gas Cap by Abu Dhabi’s Supreme Council for Financial and Economic Affairs (SCFEA), the emirate’s media office announced on Wednesday.
ADNOC will hold a 60 percent participating interest in the concession. The remaining stakes will be held by TotalEnergies EP Holdings UAE (10 percent), BP Abu Dhabi (10 percent), CNPC International (8 percent), JODCO Onshore (5 percent), China ZhenHua Oil (4 percent) and Korea GS E&P (3 percent).
According to SCFEA, the Bab Gas Cap Development and Production Concession represents the largest gas cap development project of its kind globally.
A gas cap refers to the free natural gas that sits above an underlying oil reservoir — in this case, the giant Bab onshore oil field in Abu Dhabi.
The project, operated by ADNOC Onshore, is expected to have a production capacity of approximately 1.5 billion standard cubic feet per day (BSCFD) of natural gas, equivalent to around 15 percent of the total operational gas processing capacity of ADNOC Gas.
The project expected to contribute to the UAE's gas self-sufficiency, support the continued development of the country's petrochemicals sector and advance ADNOC's plans to expand its liquefied natural gas (LNG) export capacity.
SCFEA oversees policies related to finance, investment, the economy, petroleum and natural resources in Abu Dhabi and monitors the performance of entities operating in the emirate's oil and gas sector, including ADNOC.
(Writing by SA Kader; Editing by Anoop Menon)
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