Adnoc awards contracts for Hail and Ghasha Offshore Development project
The contracts for the offshore project will contribute to the UAE becoming gas self-sufficient
Abu Dhabi National Oil Company (Adnoc) has awarded two engineering, procurement and construction (EPC) contracts worth US $17bn for the Hail and Ghasha Offshore Development project.
The project aims to operate with net zero carbon dioxide (CO2) emissions, reinforcing Adnoc’s legacy of responsible energy production and supporting its Net Zero by 2045 ambition and accelerated decarbonisation plan, said a statement from Adnoc.
The first EPC contract for the offshore facilities includes facilities on artificial islands and subsea pipelines. It has been awarded to a joint venture between National Petroleum Construction Company and Saipem. It is estimated to be worth about $8.2bn. The second EPC contract will deliver the onshore scope, including CO2 and sulphur recovery and handling. It has been awarded to Tecnimont. This contract is valued at $8.74bn.
Hail and Ghasha are part of Abu Dhabi’s Ghasha concession, which is set to produce more than 1.5bn standard cubic feet per day (bscfd) of gas before the end of the decade, contributing to UAE gas self-sufficiency and Adnoc’s gas growth and export expansion plans.
Over 60% of the investment value of the entire project will flow back into the UAE’s economy under Adnoc’s In-Country Value (ICV) program, reinforcing the company’s commitment to ensuring more economic value remains in the country from the contracts it awards.
Abdulmunim Al Kindy, Adnoc Upstream Executive Director said: “The final investment decision, for Hail and Ghasha, is a major milestone for Adnoc and our strategic partners, and we are delighted to progress this pioneering project with Net Zero carbon dioxide emissions, significantly boosting Adnoc’s carbon capture capacity as we work toward a lower carbon future.”
“The project will drive in-country value, provide highly skilled career opportunities for UAE Nationals and stimulate socio-economic growth for the nation. Natural gas is an important transition fuel and Adnoc will continue to responsibly unlock its gas resources to enable gas self-sufficiency for the UAE, grow our export capacity and support global energy security,” he concluded.
