"ADNOC Drilling" wins two contracts worth more than 7 billion dirhams to develop "Al Hail" and "Ghasha" gas
The Abu Dhabi National Oil Company (ADNOC) announced today the award of two contracts worth a total of 7.49 billion dirhams ($2 billion) to ADNOC Drilling for the development project of the Hail and Ghasha gas fields.
The first contract worth 4.89 billion dirhams ($1.3 billion) covers integrated drilling services, while the second contract, worth 2.6 billion dirhams ($711 million) will provide 4 onshore rigs for the islands.
ADNOC also awarded a third contract worth 2.5 billion dirhams ($681 million) to ADNOC Logistics and Services to provide marine logistics and marine support services.
More than 80% of the value of the awarded contracts will be directed to the local economy through ADNOC's In-Country Value (ICV) program. The three contracts will cover drilling works in the "Al-Hail" and "Ghasha" fields for a maximum period of 10 years.
The development of the "Al Hail" and "Ghasha" gas fields is part of the "Ghasha" concession, the largest marine sour gas project in the world, and a fundamental pillar of ADNOC's integrated strategy aimed at achieving gas self-sufficiency in the UAE.
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of the Abu Dhabi National Oil Company “ADNOC” and its group of companies, said on this occasion: “These large contracts represent an important stage in the completion of the giant Ghasha project, and they also confirm the distinguished expertise of the "ADNOC Drilling" and the "ADNOC" group of companies and their ability to implement mega projects with high efficiency, especially that directly contribute to enabling the growth and expansion of gas projects while ensuring that a large percentage of the value of contracts is directed to the local economy, which contributes to promoting growth and economic diversification in the country. .
He added: "We are committed to working on implementing the leadership's directives to achieve maximum value from our business in all areas and aspects of the oil and gas sector. The awarding of these contracts comes as part of ADNOC's integrated strategy to develop natural gas reserves to contribute to achieving self-sufficiency in this vital resource in the UAE. And contribute to supporting the growth of the industrial sector, diversifying the economy and meeting the increasing global demand for gas.The abundant natural gas reserves in Abu Dhabi will have an important role in securing low-carbon energy to meet current and future local and global energy needs, while the world continues to rely on hydrocarbon resources as a main source of energy for years. coming.In conjunction with the implementation of this project, we continue to explore new ways and technologies to increase gas extraction from existing fields and develop untapped resources, with a focus on benefiting from the latest technological innovations to reduce emissions, in cooperation with our strategic international partners.”
ADNOC's master plan for gas aims to link the components of the value chain to ensure a sustainable and economic supply of natural gas to meet the growing demand in the local and global markets, by expanding ADNOC's capabilities in the processing and production of liquefied natural gas.
The plan relies on the application of new methods and techniques to enhance gas extraction from currently operating fields, and to produce it in large and competitive quantities, in addition to developing untapped gas resources and benefiting from the latest innovations to reduce emissions on an ongoing basis.
It is expected that production operations from the Ghasha concession will start in 2025, and its production capacity will be raised to more than 1.5 billion standard cubic feet per day before the end of 2030.
The construction of four artificial islands has already been completed, and excavation works are currently being developed within this giant project.
In November 2021, ADNOC and its partners awarded two engineering, procurement and construction contracts for the Dalma gas field development project, within the “Ghasha” concession, and a contract to update the engineering studies for the development project of the “Hail” and “Ghasha” gas fields.
It is expected that the engineering studies will be completed by the end of 2022, which will contribute to reducing costs and significantly shortening the time, in addition to accelerating the integration of carbon capture processes within the project.
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