Russia's Lukoil acquires 5% stake in ADNOC's Ghasha concession

Russia's Lukoil acquires 5% stake in ADNOC's Ghasha concession
Published: 16 October 2019 - 5:30 a.m.
By: Carla Sertin

Russian oil company Lukoil agreed to purchase a 5% stake in ADNOC's Ghasha concession during a state visit by President Vladimir Putin. The company joins other foreign Ghasha partners Eni (25%), Wintershal Dea (10%), and OMV (5%).

"The development of the Ghasha concession is the first Lukoil project in the UAE and we are pleased to partner with ADNOC and cooperate with RDIF in this project," said Vagit Alekperov, president of PJSC Lukoil. "Lukoil has extensive experience in offshore fields, both independently and in consortia with other major international companies."

A tripartite framework agreement on future cooperation on Ghasha was also signed by ADNOC, PJSC Lukoil, and the Russian Direct Investment Fund (RDIF).

"We are very pleased to partner with Lukoil on this crucial project, which also marks the first time that we partner with a Russian energy company across our full value chain," said Dr. Sultan Al Jaber, Group CEO of ADNOC. "We are also pleased to have agreed a strategic framework agreement with Lukoil and RDIF that builds on the award and offers potential for collaboration in relation to the Ghasha concession."

"The large-scale project to develop the Ghasha Concession opens up great investment opportunities for RDIF and Lukoil," said Kirill Dmitriev, CEO of RDIF. "The agreement with ADNOC reflects a high level of energy cooperation with the UAE and confidence in the expertise of partners from the Russian Federation to help develop one of the major natural resources projects in the Middle East."

Ghasha consists of nine shallow fields in the Arabian Gulf, with undeveloped deposits of gas, oil, and gas condensate. It is expected to produce over 40mn cubic metres per day of natural gas and 120,000 barrels per day of crude oil and gas condensate.

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