ADNOC, TOTAL Deliver 1st Unconventional Gas from UAE

Logos of ADNOC are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan, April 4, 2017. REUTERS/Toru Hanai
Logos of ADNOC are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan, April 4, 2017. REUTERS/Toru Hanai
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ADNOC, TOTAL Deliver 1st Unconventional Gas from UAE

Logos of ADNOC are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan, April 4, 2017. REUTERS/Toru Hanai
Logos of ADNOC are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan, April 4, 2017. REUTERS/Toru Hanai

The Abu Dhabi National Oil Company, ADNOC, and TOTAL announced on Wednesday the delivery of the first unconventional gas from the UAE, Emirates News Agency reported.

The gas was delivered from the Ruwais Diyab Unconventional Gas Concession located 200 kilometers west of Abu Dhabi city, it said.

According to WAM, this achievement marks a significant milestone towards future full field development and is an important step towards ADNOC’s target of producing 1 billion standard cubic feet, scfd, of gas from the concession before 2030, ultimately enabling gas self-sufficiency for the UAE.

First gas from Ruwais Diyab comes just two years after ADNOC and TOTAL signed the region’s first historic unconventional gas concession agreement. In addition, this initial production milestone marks the first time an unconventional gas development in the Middle East delivers gas to pipeline so early in the project timeline.

The accelerated progress was made possible by the strong commitment and collaboration between ADNOC and TOTAL, enabling them to fast track the exploration of these unconventional gas resources, while tailoring operations to the UAE's shale play type.

"This achievement marks another important milestone in the development of the UAE’s unconventional gas resources as we deliver on our integrated gas strategy and work to achieve gas self-sufficiency for the nation,” said ADNOC Upstream Executive Director Yaser Saeed Almazrouei.

"The accelerated progress in Ruwais Diyab is a testament to the long-standing partnership between ADNOC and TOTAL, which has enabled us to expedite the learning curve in the production of unconventional gas resources, provided cost optimization opportunities and driven efficiencies. All of these remain key as we move forward with confidence to further develop the concession and unlock its substantial potential to drive sustainable value for the UAE and its people."

This milestone builds on ADNOC’s continuous efforts to de-risk unconventional gas resources across Abu Dhabi since 2016 and comes just over a year after Abu Dhabi’s Supreme Petroleum Council, SPC, announced the discovery of 160 trillion scf of unconventional gas recoverable resources.

The unconventional gas is delivered through a purpose-built gas pipeline and centralized early production facility in the Diyab field which enables distribution through ADNOC’s gas network. The Ruwais Diyab Unconventional Gas Concession greatly benefits from its strategic location near ADNOC’s Ruwais industrial area, providing market access and allowing operations to leverage ADNOC's expansive existing infrastructure which will continue to benefit the UAE’s evolving unconventionals industry.



Egypt Reviews Public Spending Priorities to Contain Impact of Economic Reforms

 Egypt’s Finance Minister, Ahmed Kouchouk, speaks during the news conference. (Asharq Al-Awsat)
Egypt’s Finance Minister, Ahmed Kouchouk, speaks during the news conference. (Asharq Al-Awsat)
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Egypt Reviews Public Spending Priorities to Contain Impact of Economic Reforms

 Egypt’s Finance Minister, Ahmed Kouchouk, speaks during the news conference. (Asharq Al-Awsat)
Egypt’s Finance Minister, Ahmed Kouchouk, speaks during the news conference. (Asharq Al-Awsat)

Egypt’s Finance Minister Ahmed Kouchouk said on Tuesday the ministry was working to re-arrange priorities in order to contain the impact of economic reforms.

In his first press conference after assuming office, he stressed that the volume of spending on education was increased during the last fiscal year by 25 percent, the health sector by 24 percent, and the social protection sector by 20 percent.”

He added that fuel subsidies topped EGP 165 billion ($3.35 billion), an increase of 31 percent year-on-year in the fiscal year 2023-2024, while government support for food supplies rose to more than EGP 133 billion, an increase of 10 percent on an annual basis.

This year, Egypt raised the prices of fuel and bread, a heavily subsidized commodity, in implementation of one of the conditions of the International Monetary Fund’s $8 billion loan program.

The government’s priority is to maximize resources to create sufficient financial space to spend on areas of human development, emphasized the minister.

He added: “The budget figures, no matter how much they improve, will be meaningless, if they are not reflected in strengthening the performance of the economy and the competitiveness of the business community, and improving the standard of living.”

Regarding tax revenues, Kouchouk said: “No new taxes were imposed last year, and the 30% increase in tax revenues was spent on health, education, and social protection programs.”

Tax revenues grew by 60%, exceeding the rate of expenditure growth, with non-tax revenues increasing by 190%, mainly due to diversifying state resources, including the treasury’s 50% share from the Ras El-Hikma deal.

Kouchouk also stressed the government’s continued efforts to encourage investment and support economic activities despite global, regional, and local challenges.