ADNOC awards $17 billion in contracts to develop offshore natural gas fields with zero CO2 emissions

October 05, 2023

(WO) – ADNOC announced the final investment decision and award of contracts 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 natural gas production and supporting its Net Zero by 2045 ambition and accelerated decarbonization plan.

Saipem CEO Alessandro Puliti, NPCC CEO Eng. Ahmed Al Dhaheri, ADNOC Upstream Executive Director Abdulmunim Al Kindy, and MAIRE CEO Alessandro Bernini

The awards, which comprise two engineering, procurement and construction (EPC) contracts, were signed at ADIPEC, the world’s largest energy industry gathering. The Hail and Ghasha natural gas fields are part of Abu Dhabi’s Ghasha Concession, which is set to produce more than 1.5 Bcfdg before the end of the decade, contributing to UAE gas self-sufficiency and ADNOC’s gas growth and export expansion plans.

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 S.p.A.

The second EPC contract will deliver the onshore scope, including CO2 and sulphur recovery and handling. It has been awarded to Tecnimont S.p.A. 

The offshore EPC contract is valued at approximately $8.2 billion (AED 30 billion). The onshore EPC contract is valued at $8.74 billion (AED 32 billion).

Located offshore the Emirate of Abu Dhabi, the Hail and Ghasha Development Project is part of the Ghasha Concession, which is the world’s largest offshore natural gas development of its kind.

The Ghasha Concession includes the Hail, Ghasha, Hair Dalma, Bu Haseer, Satah, Nasr, SARB, Shuweihat, and Mubarraz offshore fields. The Hail and Ghasha Development Project will produce natural gas from Hail and Ghasha and serve as a hub for related offshore fields within the Concession area.

55% of the investment value will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program, reinforcing ADNOC’s commitment to ensuring more economic value remains in the country from the contracts it awards.

The Hail and Ghasha development design combines innovative decarbonization technologies into one integrated solution. The project will capture 1.5 million tonnes per year (MMtpa) of CO2, taking ADNOC’s committed investment for carbon capture capacity to almost 4 MMtpa. The CO2 will be captured, transported onshore and safely stored underground, while low-carbon hydrogen is produced that can replace fuel gas and further reduce emissions. The project will also leverage clean power from nuclear and renewable sources from the grid.

The carbon captured at the Hail and Ghasha natural gas fields will support ADNOC’s wider carbon management strategy, which aims to create a unique platform that connects all the sources of emissions and sequestration sites to accelerate the delivery of ADNOC and the UAE’s decarbonization goals.

Abdulmunim Al Kindy, ADNOC Upstream Executive Director, said, “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.”


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