Russian oil company PJSC LUKOIL and the UAE’s state oil producer Abu Dhabi National Oil Company (ADNOC) signed a deal on Tuesday to explore cooperation in relation to the Ghasha offshore gas field project in the Arabian Gulf.
“The development of the Ghasha gas project is the first LUKOIL project in the UAE and we are pleased to partner with ADNOC and cooperate with RDIF in this project,” Vagit Alekperov, President of PJSC LUKOIL, said in a statement.
The Russian Direct Investment Fund (RDIF) – the country’s sovereign wealth fund – which is also a member in the cooperation agreement, said the signing took place during Russian President Vladimir Putin’s visit to the UAE’s capital city of Abu Dhabi on Tuesday.
The project is expected to produce over 40 million cubic meters per day of natural gas and 120,000 barrels per day of crude oil and gas condensate.
The natural gas will be enough to provide electricity to more than 2 million homes, the RDIF said in a statement.
Meanwhile, the RDIF said on Tuesday that it plans to sign 10 investment deals worth more than $1.3 billion with partners from the UAE, including the Mubadala Investment Company.
In a separate agreement, Russia’s state-owned Gazprom Neft and ADNOC signed a deal for “strategic” cooperation in oil and gas sectors.
Gazprom, which carries on the business of extraction, production, transport, and sale of natural gas, said in a statement that it will study the study opportunities for cooperation in sour-gas exploration and production with ADNOC.
President Putin is on the second leg of his trip to the Middle East, having just left Saudi Arabia, where the RDIF signed at least 14 new deals worth $1.3 billion.