BP and TotalEnergies formally join UAE Bab Gas Cap Concession

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TotalEnergies and BP have signed their official entry into the Bab Gas Cap Concession in the United Arab Emirates (UAE) with a 10% interest each.

The new concession is majority (60%) owned by Abu Dhabi’s national oil company, which will operate the concession through ADNOC Onshore. The other participants include GS Energy (3%), ZhenHua (4%), JODCO/INPEX (5%), and CNPC (8%). The interested partners can now work on developing the Bab onshore field’s substantial gas cap resources. ADNOC and its partners, seeing its growth potential, have already been working to advance development of the field. The project is aiming to produce 1.5 billion cubic feet of natural gas per day.

The development is especially noteworthy for BP, the maker of Castrol industrial lubricant and coolant products. It marks the first time the company has direct access to Abu Dhabi’s natural gas production.

TotalEnergies’ CEO and Chairman, Patrick Pouyanné, thanked Abu Dhabi for continuing to trust his company. He said that in the current environment, the company’s participation in the new concession marked its:

“…commitment to stand alongside ADNOC, our historic partner in Abu Dhabi, and to keep contributing to the development of the United Arab Emirates’ significant hydrocarbon resources. The Bab Gas Cap project is well in line with TotalEnergies’ Upstream strategy by adding low-cost, low-emissions resources with significant potential for production growth.”

The concession is expected to support the UAE’s LNG (liquefied natural gas) export chain, including the Ruwais LNG project, in which BP and TotalEnergies also a hold a 10% interest each.

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