MEOG: Gas plans and oil discoveries

This week, MEOG covers plans to revive a project to pipe gas across the Gulf and the announcement of oil discoveries in the UAE.

Iran and Oman are resurrecting a project to lay an underwater pipeline to transport gas to Oman, according to Iran's Oil Minister Javad Owji.

Iran has some of the world's largest gas reserves. Oman is also interested in providing fuel to its energy-intensive industries, as well as liquefied natural gas (LNG) export plants.

IRNA said the agreement to revive the project was reached during a trip to Oman by Iranian Oil Minister Javad Owji ahead of an official visit to the Gulf Arab state by Iranian President Ebrahim Raisi.

In 2013, the two countries signed an agreement worth $60bn over 25 years for Iran to supply a minimum of 28mn cubic metres per day of gas to Oman via an underwater pipeline.

In 2016, the two countries renewed efforts to implement the project, and in 2017 Iran said it had agreed with Oman to reroute the planned pipeline to avoid UAE-controlled waters.

Meanwhile, ADNOC has announced the discovery of 650mn barrels of oil across three oilfields in the Emirate.

The finds were disclosed during an ADNOC board meeting, chaired by H.H. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, member of the Abu Dhabi Executive Council and chairman of the Abu Dhabi Executive Office.

At 500mn barrels, a discovery at the Bu Hasa oilfield was the largest of the three, with 100mn barrels discovered in Onshore Block 3, which is operated by US firm Occidental Petroleum (Oxy), and another 50mn barrels found in the Al Dhafra Petroleum Concession in the south-east of the emirate.

Producing 650,000 barrels per day (bpd), Bu Hasa is ADNOC’s largest onshore asset and provides a significant portion of ADNOC Onshore’s output. Following the discovery, the field is thought to have held total proven reserves in excess of 7bn barrels, with the find providing “additional premium-grade Murban oil resources”.