ADNOC lets contracts worth $2 billion for Hail, Ghasha gas project

Abu Dhabi National Oil Co. (ADNOC) let two contracts totaling $2 billion to ADNOC Drilling for the Hail and Ghasha development project.

The contracts comprise $1.3 billion for integrated drilling services and fluids, and $711 million for the provision of four island drilling units. A third contract, valued at $681 million, was also awarded to ADNOC Logistics & Services for the provision of offshore logistics and marine support services.

All three contracts will cover the Hail and Ghasha drilling campaign for a maximum of 10 years, the operator said in a release July 27.

The development project is part of the Ghasha concession, the world’s largest offshore sour gas development and a key component of ADNOC’s integrated gas masterplan aimed at ensuring a sustainable and economic supply of natural gas to meet the growing requirements of the UAE and international markets through expansion of ADNOC’s liquefied natural gas (LNG) capacity, the company said.

Production from the Ghasha concession is expected to start around 2025, ramping up to produce more than 1.5 bscfd of natural gas before the end of the decade. Four artificial islands have already been completed and development drilling is under way.

In November 2021, ADNOC and its partners awarded two engineering, procurement, and construction (EPC) contracts for the Dalma gas development project, within the Ghasha concession. They also awarded a contract to update the front-end engineering and design (FEED) for the Hail and Ghasha project. The updated design is expected to be completed yearend and is expected to further optimize costs and timing, as well as potentially accelerate the integration of carbon capture, the operator said.