RDIF, LUKOIL and ADNOC to explore cooperation on the Ghasha Gas Concession in the UAE

Press release, 15.10.2019

Abu Dhabi, October 15, 2019 - The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, announces a Cooperation agreement between PJSC LUKOIL, Russia’s leading oil company, and the Abu Dhabi National Oil Company (ADNOC), the UAE’s state oil producer to explore potential cooperation in relation to the Ghasha offshore gas field project in the Arabian Gulf. 

The exchange of the signed agreement was witnessed by Russian President Vladimir Putin and His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. 

The project is expected to produce over 40 mn 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 mn homes. 

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:

“The large-scale project to develop the Ghasha Concession opens up great investment opportunities for RDIF and LUKOIL. The agreement with ADNOC reflects a high level of energy cooperation with the UAE and confidence in the expertise of partners from the Russian Federation to help develop one of the major natural resources projects in the Middle East.”

Vagit Alekperov, President of PJSC LUKOIL, said:

“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. LUKOIL has extensive experience in offshore fields, both independently and in consortia with other major international companies. We are pleased to enter the project in the UAE with such a significant resource base and with such experienced partners. Joining this project is fully consistent with our strategy.”

HE Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said:

“We are very pleased to partner with LUKOIL on this crucial project, which also marks the first time that we partner with a Russian energy company across our full value chain. We are also pleased to have agreed a strategic framework agreement with LUKOIL and RDIF that builds on the award and offers potential for collaboration in relation to the Ghasha concession. The concession award, as well as the framework agreement, reflect the strong and strategic bilateral ties between the UAE and Russia and highlight the important role of energy cooperation in strengthening the relations between our two countries.”

***

Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Currently, RDIF has experience of the successful joint implementation of more than 70 projects with foreign partners totaling more than RUB1.5 tn and covering 95% of the regions of the Russian Federation. RDIF’s portfolio of companies employs more than 800,000 people and generates revenues which equate to over 6% of Russia’s GDP. RDIF has established joint strategic partnerships with leading international co-investors from more than 15 countries that total more than $40 bn. Further information can be found at www.rdif.ru

LUKOIL is one of the largest publicly traded, vertically integrated oil and gas companies in the world accounting for more than 2% of the world's oil production and around 1% of the proved hydrocarbon reserves. Each day we improve the quality of life for millions of consumers in over 100 countries around the globe through the supply of our products, power, and heat. We employ over 100,000 people who join their efforts and expertise to ensure the Company’s efficient development and secure its market leadership. Further information can be found at www.lukoil.com

ADNOC is one of the world’s leading diversified energy and petrochemicals groups with a daily output of about 3 mn barrels of oil and 300 mn cubic meters of natural gas. With 14 specialist subsidiary and joint venture companies, ADNOC is a primary catalyst for the UAE’s growth and diversification. Further information can be found at www.adnoc.ae.

For additional information contact:
Arseniy Palagin                                       Maria Shiryaevskaya / Andrew Leach
Russian Direct Investment Fund               Hudson Sandler
Press Secretary                                        Tel: +44 (0) 20 7796 4133 
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
E-mail: arseniy.palagin@rdif.ru