Abu Dhabi-Dubai gas discovery will boost growth

Strategic location, strong financial reserves, large sovereign wealth fund, promising investor home economies, consistent government spending, progressive policy of economic diversification, free zones and increased foreign direct investment have all helped contribute to the UAE’s robust economy.

The discovery of 80 trillion standard cubic feet, TSCF, of shallow gas resources in place within the area between Saih Al Sidirah and Jebel Ali in the Emirates of Abu Dhabi and Dubai certainly reinforces the nation’s goal of achieving gas self-sufficiency, enabling major development projects in preparation for the next fifty years of the union.

The signing of a strategic cooperation agreement between the Abu Dhabi National Oil Company, ADNOC, and Dubai Supply Authority, DUSUP, to continue to explore and develop the shallow gas resources in this area in a joint project named ‘Jebel Ali’ will help push economic development to the next phase.

The discovery of the 80 TSCF of shallow gas resources was made within an area of 5,000 square kilometers between the two emirates with ADNOC drilling more than ten exploration and appraisal wells, signifying the first time ADNOC has explored for hydrocarbon resources in Dubai.

The discovered reservoir is unique and is referred to as ‘shallow gas’, as it contains high-quality organic gas at relatively shallow depths from the earth’s surface.

It is good to note that ADNOC is utilising both conventional and unconventional drilling and completion technologies and methods to access this trapped gas, including horizontal drilling and hydraulic fracturing to enable optimal productivity while reducing the number of drilling rigs required.

The company will also tap gas from its gas caps and substantial unconventional gas reserves, as well as new natural gas accumulations, which will continue to be appraised and developed as the company pursues its exploration activities.

Interestingly, the latest shallow gas resources discovery has come less than three months after Abu Dhabi’s Supreme Petroleum Council, SPC, announced increases in hydrocarbon recoverable reserves of 7 billion stock tank barrels, STB, of oil and 58 TSCF of conventional gas, moving the UAE from seventh to the sixth position in both global oil and gas reserves rankings with a total of 105 billion STB of recoverable oil, 273 TSCF of conventional gas and 160 TSCF of unconventional gas resources.

Just recently, the successful new discovery of natural gas and condensate onshore at the Mahani field in Sharjah by the Sharjah National Oil Corporation and its Italian partner ENI came as tremendously exciting development.

Mahani-1 well was drilled at a total depth of 14,597 feet, which resulted in the discovery of gas with the associated capacitors in the formation of the Thumama.

The size of the discovery will be estimated in time in light of expectations for further evaluation and development.

By 2040, natural gas demand in the Middle East and North Africa region is expected to grow 40 per cent and oil demand will increase by ten million barrels a day, according to industry estimates.

According to the Economic Report 2018 released by the UAE’s Ministry of Economy, the estimated GDP for 2017 rose by 0.8% at real (constant) prices, amounting to Dhs1,422.2 billion at the level of the state, compared to Dhs1,411.1 billion at the end of 2016.

The latest developments are a cause for celebration, as they will extensively boost the economic capabilities and industrial productivity of the nation and help in achieving much more in terms of prosperity.