Abu Dhabi's ADNOC approves multi-billion-dollar Hail and Ghasha Offshore Gas Project

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, Report informs via Offshore Engineer.

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.

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.

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