UAE Awards ADNOC and Partners Concession to Develop Bab Gas Cap Project

Abu Dhabi | EcoPulse24

ADNOC-Led Consortium Secures Bab Gas Cap Concession

The Supreme Council for Financial and Economic Affairs (SCFEA) has awarded the concession agreement for the development and production of the Bab Gas Cap to Abu Dhabi National Oil Company (ADNOC) and a consortium of international energy partners, in a move that reinforces the UAE's long-term strategy to expand its natural gas production capacity.

Under the agreement, ADNOC will hold a 60% participating interest, while the remaining stakes will be held by TotalEnergies EP Holdings UAE B.V. (10%), BP Abu Dhabi (10%), CNPC International (Hong Kong SAR) (8%), JODCO Onshore (5%), China ZhenHua Oil (Hong Kong SAR) (4%) and Korea GS E&P Pte. (3%).

Project to Produce 1.5 Billion Cubic Feet of Gas Per Day

SCFEA said the Bab Gas Cap Development and Production Concession represents the largest gas cap development project of its kind globally.

The project is expected to produce approximately 1.5 billion standard cubic feet per day (BSCFD) of natural gas, equivalent to around 15% of ADNOC Gas' total operational gas processing capacity.

The additional production is expected to support the UAE's efforts to strengthen gas self-sufficiency, provide feedstock for the country's expanding petrochemicals industry and advance ADNOC's strategy to increase its liquefied natural gas (LNG) export capacity.

Long-Term Investment and Energy Security Strategy

The concession brings together ADNOC and a diverse group of international energy companies from Europe and Asia, underscoring the UAE's continued appeal as a destination for long-term energy investment and strategic partnerships.

SCFEA said the project reflects its commitment to the sustainable development of natural resources in a way that maximises their strategic and economic value while supporting the UAE's long-term national priorities.

EcoPulse24 Data Snapshot: Bab Gas Cap Project

Participating Interests

Source: Supreme Council for Financial and Economic Affairs (SCFEA), ADNOC, EcoPulse24 compilation.

EcoPulse24 Analysis

The Bab Gas Cap project highlights three strategic dimensions of the UAE's energy policy.

First, expanding domestic gas production could strengthen energy security by increasing locally available supplies. Second, additional gas volumes may support the growth of higher-value industries, particularly petrochemicals. Third, the project could provide a larger and more stable resource base to support ADNOC's ambitions to expand its LNG business.

The participation of major international companies from Europe and Asia also illustrates continued global confidence in Abu Dhabi's energy sector and the UAE's ability to attract long-term capital and technical expertise for large-scale energy developments.