Abu Dhabi National Oil Company (ADNOC) announced that it has been awarded two sizeable contracts totalling USD2 billion (AED 7.49 billion) to ADNOC Drilling, the largest national drilling company in the Middle East by rig fleet capacity, for the development of the Hail and Ghasha Project. The agreements include USD 1.3 billion (AED 4.89 billion) for integrated drilling services and fluids, and USD 711 million (AED 2.6 billion) for the provision of four island drilling units. A third contract was also awarded to ADNOC Logistics & Services for the provision of offshore logistics and marine support services which is valued at USD 681 million (AED 2.5 billion).
Under ADNOC’s in-country value (ICV) programme, over 80% of the value of the awards is anticipated to flow back into the UAE’s economy and all three contracts would cover the Hail and Ghasha drilling campaign for a maximum of ten years, in accordance with a statement issued by ADNOC.
The multi-billion-dollar project plays a vital role in the UAE’s gas self-sufficiency objective, in line with ADNOC’s integrated gas strategy
The Hail and Ghasha Development Project is a component of the Ghasha Concession. The Ghasha mega-project is the world’s largest offshore sour gas development and a key component of ADNOC’s integrated gas strategy. The multi-billion-dollar project plays a significant role in meeting the United Arab Emirates (UAE) gas self-sufficiency goal. The Ghasha mega-project is approved by the Supreme Petroleum Council (SPC). The integrated gas strategy intends to reveal and maximize value from Abu Dhabi’s considerable natural gas reserves.
The Ghasha mega-project consists of the Hail, Ghasha, Satah, Hair Dalma, Nasr, Bu Haseer, Shuwaihat, SARB and Mubarraz fields. The Dalma offshore ultra-sour gas fields are located approximately 190 kilometres away in the shallow waters of the Persian Gulf in the Emirate of Abu Dhabi.
The Minister of Industry and Advanced Technology, Managing Director and Group CEO of ADNOC, Dr Sultan Ahmed Al Jaber stated that while people still rely on hydrocarbons, the considerable gas resources of Abu Dhabi play a progressively crucial role in delivering lower-carbon energy to meet the demands of the time ahead. As ADNOC conscientiously executes this development the company further continues to explore ways to accelerate project delivery, and additionally aims to decrease emissions, together with the company’s strategic international partners.
The mega-project is expected to hold substantial recoverable gas reserves. When it comes to onstream, the Ghasha mega-project is ramping up to produce more than 1.5 billion standard cubic feet (bscfd) of natural gas in a day prior to the end of the decade.
The development drilling is underway with four artificial islands that have already been completed, the statement said.
The usage of artificial islands eliminates the need to scour over one hundred locations for water supply whilst generating additional habitats for marine life thus offering substantial environmental advantages and cost savings to the company.