ADNOC Drilling and ADNOC Logistics & Services were handed the three contracts as part of the Ghasha Concession - the world's largest offshore sour gas development. Image Credit: ADNOC

Dubai: ADNOC has awarded two contracts totaling $2 billion (Dh7.49 billion) to its drilling subsidiary for the Hail and Ghasha development projects. The contracts comprise $1.3 billion (Dh 4.89 billion) for integrated drilling services and fluids, and $711 million (Dh2.6 billion) for the provision of four island drilling units.

A third contract, valued at $681 million (Dh2.5 billion), was awarded to ADNOC Logistics & Services for the provision of offshore logistics and marine support services. “Overall, more than 80 per cent of the value of the awards will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program and all three of the contracts will cover the Hail and Ghasha drilling campaign for a maximum of 10 years,” said the company in a statement.

The Hail and Ghasha Development Project is part of the Ghasha Concession - the world’s largest offshore sour gas development and a key component of ADNOC’s integrated gas masterplan.

Production from the offshore block 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.

Ghasha milestone

“These substantial awards mark another important milestone in the delivery of the Ghasha mega-project,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC. “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.

- Dr Sultan Al Jaber, Minister of ADNOC

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 LNG capacity. The plan includes increased and competitive gas recovery from existing fields as well as developing untapped resources.

In November last, ADNOC and its partners awarded two EPC contracts for the Dalma Gas Development Project, within the Ghasha Concession. They also awarded a contract to update the Front-End Engineering and Design (FEED) for the Hail and Ghasha project.