Abu Dhabi National Oil Company (ADNOC) has awarded two substantial contracts with a total value of $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 providing four Island Drilling Units. A third contract, valued at $681 million, was also awarded to ADNOC Logistics & Services for providing offshore logistics and marine support services.
Overall, more than 80 percent of the value of the awards will flow back into the UAE’s economy under ADNOC’s successful In-Country Value (ICV) program and all three of the contracts will cover the Hail and Ghasha drilling campaign for a maximum of ten years.
The Hail and Ghasha Development Project is part of the Ghasha Concession, which is the world’s largest offshore sour gas development and a key component of ADNOC’s integrated gas masterplan as well as an important enabler of gas self-sufficiency for the UAE.
Dr. Sultan Ahmed Al Jaber Group CEO – ADNOC UAE Minister of Industry & Advanced Technology
“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 efficiently deliver complex projects that enable gas expansion, while generating substantial in-country value to drive economic growth and diversification. ADNOC is committed to unlocking the UAE’s abundant natural gas reserves to enable domestic gas self-sufficiency, industrial growth and diversification, as well as to meet growing global gas demand, in line with the UAE Leadership’s wise directives.”
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 liquified natural gas (LNG) capacity.
Production from the Ghasha Concession is expected to start around 2025, ramping up to produce more than 1.5 billion 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.
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