Abu Dhabi's ADNOC Approves Multi-Billion-Dollar Hail and Ghasha Offshore Gas Project

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

Abu Dhabi-based oil and gas company ADNOC has reached the final investment decision and award of contracts for the Hail and Ghasha Offshore Development project offshore Abu Dhabi.

Hail and Ghasha are part of Abu Dhabi’s Ghasha Concession which is set to produce more than 1.5 billion standard cubic feet per day (bscfd) of gas before the end of the decade.

According to ADNOC, the project aims to operate with net zero carbon dioxide (CO2) emissions.

Fifty-five percent 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 contract awards, which comprise two engineering, procurement, and construction (EPC) contracts, were signed at ADIPEC, one the world’s largest energy industry events.

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.”

Carbon Capture

The project will capture 1.5 million tonnes per year (mtpa) of CO2 taking ADNOC’s committed investment for carbon capture capacity to almost 4 mtpa. The CO2 will be captured, transported onshore and 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, ADNOC said.

"The carbon captured at Hail and Ghasha 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," ADNOC added.

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 gas development of its kind, according to ADNOC.

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 gas from Hail and Ghasha and serve as a hub for related offshore fields within the Concession area.

Worth noting, the project has included one of the UAE’s largest ever marine environmental baseline surveys and the use of artificial islands reduces dredging and drilling activities, while providing new habitats for marine life

The Ghasha concession holders are ADNOC, Eni, OMV, Wintershall Dea and Lukoil. The Dalma Gas Development project, awarded in November 2021, is also part of the Ghasha Concession and is expected to produce gas from the Hair Dalma, Bu Haseer, Satah fields by 2025

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