UAE Awards ADNOC and International Partners a Concession to Develop the Bab Field Gas Cap
Abu Dhabi’s Supreme Council for Financial and Economic Affairs has announced the award of a concession agreement for the development and production of the gas cap at the Bab field to the Abu Dhabi National Oil Company (ADNOC) and a group of international partners. The announcement was made on Wednesday 24 June 2026.
Under the concession, ADNOC will hold a 60 percent participating interest. The international partners are TotalEnergies EP Holdings UAE B.V. with 10 percent, BP Abu Dhabi with 10 percent, CNPC International with 8 percent, JODCO Onshore with 5 percent, China ZhenHua Oil with 4 percent and Korea GS E&P Pte. with 3 percent.
The largest project of its kind
The Bab Gas Cap Development and Production Concession represents the largest gas cap development project of its kind globally. The project is expected to reach a production capacity of about 1.5 billion standard cubic feet per day of natural gas, equal to around 15 percent of the total operational gas processing capacity of ADNOC Gas. The scale of the project reinforces Abu Dhabi’s position as a major destination for long term energy investment and supports a broader strategy to strengthen domestic gas supply, expand industrial feedstock availability and underpin export capacity.
Why it matters
The concession is significant for global gas markets and for energy security across the MENA region and beyond. Natural gas remains central to power generation, industry and petrochemicals, and large new sources of supply help meet rising demand at a time when many economies are seeking reliable, affordable energy. By bringing together major partners from Europe and Asia, the project also deepens energy ties between a key producing country and important consuming and investing economies worldwide.
The agreement reflects a broader trend among national oil companies of expanding gas production through partnerships that combine resource ownership, capital, technology and operating expertise. For producers and consumers alike, projects of this scale shape the availability and pricing of gas in regional and global markets, while project execution, processing capacity, methane management and export infrastructure will determine the full economic and environmental impact.
Outlook
Attention now turns to the development timeline, final investment and execution milestones, and the ramp up toward the targeted production capacity of about 1.5 billion standard cubic feet per day. Successful delivery would add a major source of gas to the UAE’s portfolio, support ADNOC Gas processing operations and strengthen the country’s position in regional and global gas markets.
Sources: Abu Dhabi Media Office; Abu Dhabi Supreme Council for Financial and Economic Affairs; ADNOC Gas; CNBC Arabia.
