Abu Dhabi National Oil Company (ADNOC) has announced the financial investment decision (FID) for the Hail and Ghasha offshore development project.
Concurrently, the Middle East oil and gas major awarded two engineering, procurement, and construction (EPC) contracts worth $16.9bn (SR63.39bn) for the project.
The Ghasha concession in Abu Dhabi, which includes the Hail and Ghasha, is expected to produce more than 1.5 billion standard cubic feet per day of gas by 2030.
ADNOC statedd advanced decarbonisation technologies are embedded into the project design to ensure that the project operates with net zero CO₂ emissions.
With the capacity to capture 1.5 million tonnes per annum (mtpa) of CO₂, the Hail and Ghasha is anticipated to take ADNOC’s carbon capture capacity to nearly 4mtpa.
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The first EPC contract was awarded to a consortium comprising Abu Dhabi-based National Petroleum Construction Company (NPCC) and Saipem, an Italian oilfield services provider.
Valued at around $8.2bn, according to Reuters, the offshore contract comprises four drilling centres and a processing facility, which will be built on artificial islands.
The scope of work also includes several offshore structures and over 300km of subsea pipelines, said Saipem.
ADNOC awarded the second EPC contract, worth $8.7bn, to Tecnimont, also an Italian engineering company.
Tecnimont said the contract will see it build the onshore processing unit of the Hail and Ghasha Development Project.
Specifically, the scope of second EPC contract includes two gas processing facilities, three sulphur recovery unit, export pipelines, associated utilities and offsites.
ADNOC said more than 60% of the investment in the whole project will flow back to the country’s economy.
ADNOC upstream executive director Abdulmunim Al Kindy 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.”