ADNOC Unveils the Final Investment Decision on the Hail and Ghasha Offshore Development Project

Abu Dhabi National Oil Company (ADNOC) has taken a significant step towards sustainable energy production by announcing the final investment decision (FID) and awarding contracts for the Hail and Ghasha Offshore Development project. Revealed at ADIPEC, the world's largest energy industry event, the project's vision is to operate with Net Zero carbon dioxide (CO2) emissions.

The Hail and Ghasha venture is an integral part of Abu Dhabi’s Ghasha Concession and is strategically placed to bolster the UAE's gas self-reliance. Additionally, it supports ADNOC's ambitions in gas growth and export enhancement. With projections of over 1.5 billion standard cubic feet per day (bscfd) of gas production by the decade's close, the project underscores ADNOC's commitment to environmentally conscious energy production.

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Two significant engineering, procurement, and construction (EPC) contracts have been confirmed. The first contract encompasses offshore facilities, including those on man-made islands and subsea pipelines. This has been clinched by a partnership between the National Petroleum Construction Company and Saipem S.p.A. The subsequent contract, overseen by Tecnimont S.p.A, deals with onshore aspects, including CO2 and sulphur recovery and management.

Emphasizing sustainability, ADNOC's project integrates cutting-edge decarbonisation techniques aiming to capture 1.5 million tonnes annually of CO2. This innovative approach propels ADNOC closer to its carbon capture goals, increasing its capacity to nearly 4 million tonnes per year. The captured CO2 will be safely stored underground onshore, while low-carbon hydrogen production will further diminish emissions. Furthermore, the venture will draw on clean nuclear and renewable energy sources from the grid, ensuring an environmentally friendly energy mix.

Abdulmunim Al Kindy, ADNOC Upstream Executive Director, voiced his excitement, marking the Hail and Ghasha decision as pivotal for both ADNOC and its strategic collaborators. This initiative significantly enhances ADNOC's carbon capture potential, aligning with a vision of a carbon-reduced future. Al Kindy also emphasized the economic benefits, with 55% of the investment retained within the UAE, courtesy of ADNOC’s In-Country Value (ICV) program.

Beyond merely enhancing ADNOC's carbon capture capabilities, the Hail and Ghasha project serves as a cornerstone in ADNOC's extensive carbon management strategy. The project's design envisions a unified platform linking emission sources and sequestration locations, accelerating the realization of decarbonisation objectives for both ADNOC and the UAE.

According to the article by Procurement Resource, Abu Dhabi National Oil Company (ADNOC) has initiated the Hail and Ghasha Offshore Development project, targeting Net Zero CO2 emissions. This step, announced at ADIPEC, bolsters the UAE's gas self-sufficiency and ADNOC's growth ambitions. Key contracts involve the National Petroleum Construction Company, Saipem S.p.A, and Tecnimont S.p.A. The project will capture 1.5 million tonnes of CO2 annually and utilize clean energy sources. ADNOC's Executive Director, Abdulmunim Al Kindy, emphasized its significance for carbon reduction and economic benefits within the UAE.