Abu Dhabi National Oil Company (ADNOC) announced Wednesday awarding two substantial contracts totaling AED7.49 billion ($2 billion) to ADNOC Drilling for the Hail and Ghasha Development Project.
The contracts comprise AED4.89 billion ($1.3 billion) for integrated drilling services and fluids, and AED2.6 billion ($711 million) for the provision of four Island Drilling Units.
A third contract, valued at AED2.5 billion ($681 million), was also awarded to ADNOC Logistics and Services for the provision of offshore logistics and marine support services.
More than 80% of the value of the awards will flow back into the UAE’s economy under ADNOC’s successful In-Country Value (ICV) program, the company announced, adding that all three of the contracts will cover the Hail and Ghasha drilling campaign for a maximum of 10 years.
The project is part of the Ghasha Concession, which is the world’s largest offshore sour gas development and a key component of ADNOC’s integrated gas masterplan, as well as an important enabler of gas self-sufficiency for the United Arab Emirates.
Dr. Sultan Ahmed al-Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, said the company is committed to unlocking the UAE’s abundant natural gas reserves to enable domestic gas self-sufficiency, industrial growth and diversification, as well as to meet growing global gas demand.
Abu Dhabi’s vast gas resources can play an increasingly important role in providing lower-carbon energy to meet the current and future demands, while the world still relies on hydrocarbons, Jaber added.
“As we responsibly execute this development we continue to explore ways to accelerate project delivery and further reduce emissions, together with our strategic international partners.”
ADNOC’s gas masterplan links every part of the gas value chain to ensure a sustainable and economic supply of natural gas to meet the growing requirements of the UAE and international markets, through expansion of ADNOC’s liquefied natural gas (LNG) capacity.
The plan includes applying new approaches and technologies to enable increased and competitive gas recovery from existing fields, as well as developing untapped resources and leveraging innovation to continually drive emissions reduction.
Production from the Ghasha Concession is expected to start around 2025, ramping up to produce more than 1.5 billion standard cubic feet per day of natural gas before the end of 2030.
Four artificial islands have already been completed and development drilling is underway.
In November 2021, ADNOC and its partners awarded two Engineering, Procurement & Construction (EPC) contracts for the Dalma Gas Development Project, within the Ghasha Concession.
They also awarded a contract to update the Front-End Engineering and Design (FEED) for the Hail and Ghasha project.
The updated design is expected to be completed by the end of the year.
