Daily Newsletter

26 September 2023

Daily Newsletter

26 September 2023

ADNOC and Abu Dhabi’s TAQA secure £2.2bn financing for sustainable water project

The water supply project will replace the current high-salinity, deep aquifer water systems at the fields.

Annabel Cossins-Smith September 25 2023

Abu Dhabi energy giant ADNOC and Abu Dhabi National Energy Company (TAQA) on Monday announced the closing of a $2.2bn (Dh8.08bn) financing deal to provide sustainably filtered water to ADNOC’s onshore operations.

The funds will go towards the development and operation of facilities to sustainably treat and supply seawater for ADNOC’s operations at the BAB and Bu Hasa oilfields in Abu Dhabi.

The project will replace the current high-salinity, deep aquifer water systems at the fields, and is expected to reduce water injection-related energy consumption by up to 30%. Connected to the grid, the project is due to receive 100% of its power from clean energy sources.

A consortium comprised of construction contractor Orascom Construction and water treatment company Metito will construct a centralised seawater treatment facility, as well as a transportation and distribution network. ADNOC and TAQA will own a joint 51% majority stake (25.5% each) with the consortium owning the remaining 49% stake in the project, which will be developed under a build, own, operate, and transfer model. Full ownership of the project will be transferred to ADNOC after 30 years of operation.

The project will be financed by a group of nine local and international banks, including Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, Emirates Development Bank, Emirates NBD, First Abu Dhabi Bank, Gulf International Bank, Natixis and Warba Bank.

In line with the objectives of ADNOC’s In-Country Value programme, more than 60% of the value of the project is expected to flow back into the United Arab Emirates’ economy.

Jasim Husain Thabet, group CEO and managing director at TAQA, said in a press statement: “We are proud to have reached financial close on this important project, which has progressed rapidly since its inception. The collaboration of industry leaders TAQA and ADNOC allows us to deliver a sustainable water project that not only reduces energy consumption but also bolsters energy security.”

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