ADNOC stays in-house for Hail and Ghasha contracts
Abu Dhabi National Oil Company (ADNOC) has made contract awards totalling $2.7bn for the Hail and Ghasha sour gas development offshore UAE to its internal subsidiaries, it announced July 27.
Both gas fields are situated in the Ghasha concession, described by ADNOC as the world's largest offshore sour gas development. Ghasha is regarded as a key component of the ADNOC integrated gas masterplan, aimed at eliminating UAE's reliance on foreign gas imports on the road to net zero.
ADNOC's masterplan focuses on UAE's substantial offshore sour gas reserves. These fields were previously written off as uneconomic due to plummeting global oil and gas prices.
Ghasha is expected to enter service in 2025 and will ramp up to more than 1.5bn ft3/d of natural gas output before 2030. ADNOC says it has started development drilling in the area and has already completed four artificial offshore islands to host the project's infrastructure.
ADNOC Drilling has been awarded the $1.3bn contract for "integrated drilling services and fluids" and $771mn for supplying drilling units at the artificial islands. A third contract valued at $681mn for onshore logistics and marine support was handed to ADNOC's logistics and services unit.
ADNOC's group CEO Sultan Ahmed Al Jaber said: "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.
"Abu Dhabi’s vast gas resources can play an increasingly important role in providing lower-carbon energy to meet the demands of today and tomorrow, while the world still relies on hydrocarbons."