Wintershall Dea Leaves the Ghasha Concession in Abu Dhabi with the Participation of LUKOIL
Wintershall Dea has signed an agreement with Indonesia’s PTT Exploration and Production Public Company Limited (PTTEP) to sell its 10% interest in the Ghasha concession in Abu Dhabi.
“All conditions required for closing, including regulatory approvals, have been met,” Wintershall Dea said, without specifying the sale price.
“The transaction is part of broader changes to the company and follows the news in December 2023 that Wintershall Dea shareholders BASF and LetterOne had signed a business combination agreement with Harbor Energy. The agreement includes the transfer of Wintershall Dea’s exploration business to Harbor Energy and production, including exploration rights in Norway, Argentina, Germany, Mexico, Algeria, Libya (excluding Wintershall AG), Egypt and Denmark (excluding Ravn), as well as Wintershall Dea’s carbon storage license,” the statement explains. press release.
“Wintershall Dea’s share in the Gasha project is not part of the agreement with Harbor Energy and will now be sold to PTTEP,” the statement said.
As a result of the transaction, Wintershall Dea intends to close its office in Abu Dhabi and all operations in the country.
Wintershall Dea’s activities in the UAE began in 2010 with the opening of a branch. In November 2018, the company received 10% in the Ghasha concession.
The Ghasha concession was awarded in November 2018 for 40 years to develop previously untapped reserves in nine offshore oil and gas fields (Hail, Ghasha, Khair Dalma, Sata, Bu Hasir, Nasr, SARB, Shuwaihat and Mubarra) in the Persian Gulf . The water depth within the deposits is up to 24 m, the distance to the shore is about 40 km. The planned production volume is over 40 million cubic meters. m of gas and 120 thousand barrels of oil and gas condensate per day. Gas from these fields will be able to satisfy more than 20% of the UAE’s needs for this fuel. Gasha reserves are characterized by high levels of hydrogen sulfide and carbon dioxide.
Participants in the concession are also ADNOC – 55%, operator; Eni – 25%, OMV – 5% and LUKOIL (5%), which acquired a stake in October 2019 for $214 million.
In October last year, ADNOC made a final investment decision (FID) for the project’s Hail and Ghasha fields and awarded two engineering, procurement and construction (EPC) contracts. The cost of the offshore EPC contract is approximately $8.2 billion, onshore – $8.74 billion.
The construction of three artificial islands has already been completed in the Ghasha concession area. Production is expected to begin around 2025.
