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Eni Starts Up Production from UAE’s Mahani Field 1 Year After Discovery

Source: SNOC

Production has started on the Mahani field in Concession Area B of the Sharjah Emirate, the first startup from a new discovery onshore Sharjah in 37 years. Italian energy major Eni and the Sharjah National Oil Corporation (SNOC) made the announcement on 4 January, less than 2 years from contract signature and 1 year since announcing the partnership’s first onshore discovery.

“The Mahani-1 was drilled and tested with flow rates up to 50 MMscf/D of lean gas and associated condensate, just 1 year after the signature of the Concession Agreement,” said Eni CFO Francesco Gattei in an October conference call. “Expected time to market of this discovery is around 1 year, with startup expected in the coming months.”

“This is a big achievement of which we need both to be proud of, considering also the exceptional challenges incurred during the year due to the COVID-19 pandemic,” Eni CEO Claudio Descalzi said.

Eni said it will continue its commitment on Sharjah exploration in operated area A and underexplored area C, with the aim of securing further resources for the Sharjah Emirate.

Field production is expected to increase progressively with the connection of wells to be drilled this year and next. A strategy update from Eni said the Mahani would produce 18,000 BOED gross in 2022, giving it an equity share of 9,000 BOED. SONC said the total depth of drilling is 14,597 ft.

Eni produced 3 Bcf of gas and 18 million bbl of oil and condensate in 2019 from its UAE operations.

Eni was awarded three blocks in Sharjah in its first international competitive licensing round in 2019; it has been present in Abu Dhabi since 2018.

The current exploration acreage in the UAE alone amounts to more than 8,880 m2 gross, comprising onshore Sharjah and offshore Abu Dhabi and Ras Al Khaimah, another UAE emirate.

While the existing gas fields in Sarjah, the country's third largest emirate, are suffering from natural decline, the Mahani may provide a low-cost commodity for power generation. Production from the field is sent through a new multiphase trunk line to SNOC’s Sajaa gas plant, where it is processed through existing facilities and infrastructure.

Concession Area B is held equally by operator SNOC and Eni, which is also a shareholder with a 20% equity interest in ADNOC Refining.

Lamprell won work from SNOC to carry out the engineering, procurement, installation, and commissioning  contract on the Mahani in May 2020, including an extended well test and a 25-km pipeline.

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