The Abu Dhabi National Oil Company (ADNOC) has announced two substantial contracts totaling US$2bn with ADNOC Drilling for the Hail and Ghasha Development Project

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

Overall, more than 80% of the value of the awards will flow back into the United Arab Emirates’ economy under ADNOC’s in-country value (ICV) programme and all three of the contracts will cover the Hail and Ghasha drilling campaign for a maximum of 10 years.

The project is part of the Ghasha Concession – the world’s largest offshore sour gas development, a key component of ADNOC’s integrated gas masterplan, and an important enabler of gas self-sufficiency for the UAE.

His Excellency Dr Sultan Ahmed Al Jaber, Minister of industry and advanced technology and managing director and group chief executive officer of ADNOC, said, “These substantial awards mark another important milestone in the delivery of the Ghasha mega-project. They also demonstrate the deep expertise and experience within ADNOC Drilling and the wider group to enable gas expansion, while generating substantial ICV to drive economic growth and diversification.

“As we responsibly execute this development we continue to explore ways to accelerate project delivery and further reduce emissions, together with our strategic international partners.”

ADNOC’s gas masterplan links every part of the gas value chain to ensure 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 plan includes the application of new approaches and technologies to enable increased and competitive gas recovery from existing fields as well as developing untapped resources and leveraging innovation to continually drive emissions reduction.

Production from the Ghasha Concession is expected to start around 2025, ramping up to produce more than 1.5bn standard cubic feet per day (scfd) of natural gas before the end of the decade. Four artificial islands have already been completed and development drilling is underway.

In November last year, ADNOC and its partners awarded two engineering, procurement & 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 by the end of the year and will further optimise costs and timing, as well as potentially accelerate the integration of carbon capture.