Dubai: The oil giant ADNOC has secured the financial closing for a $2.2 billion project with the Abu Dhabi utility company Taqa to provide sustainable water supply to the former’s onshore operations.
The investment will lead to developing and operating facilities to sustainably treat and supply seawater for the ADNOC operations at the Bab and Bu Hasa fields in Abu Dhabi. This will in timelead to ‘furthering ADNOC’s efforts to decarbonize, transform and future proof its business’.
A consortium of Orascom Construction and Metito will construct the centralized seawater treatment facility and the associated transportation and distribution network.
ADNOC and TAQA own a joint 51 per cent stake (at 25.5 per cent each) with Orascom and Metito owning the remaining stake in the project company that will develop the project under a build-own-operate-and-transfer (BOOT) model.
The full project will transfer to ADNOC after 30 years of operation.
“This strategic sustainable investment is a further example of how ADNOC is transforming, decarbonizing and future-proofing our operations as we fully embrace the energy transition," said Abdulmunim Al Kindy, ADNOC's Upstream Executive Director. "As we accelerate our transformational journey to a lower-carbon future, this innovative project will equip our onshore operations with energy-efficient water supply, significantly reducing our carbon footprint.”
Nine banks - including First Abu Dhabi Bank, Gulf International Bank, Natixis, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, Emirates NBD, Emirates Development Bank and Warba Bank - are participating in the funding. The balance of the project cost will be provided by the project sponsors in 'accordance with their equity shares'.
The project will be replacing the high-salinity, deep aquifer water systems’ at the ADNOC fields. It is expected to reduce the water injection-related energy consumption by up to 30 per cent. Connected to the grid, the project is expected to get all of its power from clean energy sources.
“We are proud to have reached financial close on this important project, which has progressed rapidly since its inception," said Jasim Husain Thabet, Group CEO and Managing Director at Taqa.