Abu Dhabi National Oil Company (ADNOC) on Wednesday announced the award of two substantial contracts totalling $2 billion to ADNOC Drilling for the Hail and Ghasha Development Project. The contracts comprise $1.3 billion for integrated drilling services and fluids and $711 million for providing four Island Drilling Units.
A third contract, valued at $681 million was also awarded to ADNOC Logistics & Services for providing offshore logistics and marine support services.
Overall, 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 and all three of the contracts will cover the Hail and Ghasha drilling campaign for a maximum of ten years.
The Hail and Ghasha Development 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 UAE.
Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, said: “These substantial awards mark another important milestone in the delivery of the Ghasha mega-project. They also demonstrate the deep expertise and experience within ADNOC Drilling and the wider group to efficiently deliver complex projects that enable gas expansion, while generating substantial in-country value to drive economic growth and diversification.”
The Minister said that ADNOC was 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 demands of today and tomorrow, while the world still relies on hydrocarbons. As we responsibly execute this development, we continue exploring ways to accelerate project delivery and reduce emissions, together with our strategic international partners, he added.
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 liquiefied natural gas (LNG) capacity. The plan includes the application of 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 (scfd) of natural gas before the end of the decade. Four artificial islands have already been completed, and development drilling is underway.
In November last year, 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 and will further optimize costs and timing, as well as potentially accelerate the integration of carbon capture.