ADNOC Drilling has been awarded $2bn contracts for the Hail and Ghasha “mega-project” in the United Arab Emirates (UAE).
The pair of deals, from Abu Dhabi National Oil Company (ADNOC), cover $1.3bn for integrated drilling services and fluids, and $711, for four Island Drilling units.
A third contract has also been handed to ADNOC Logistics and Services worth $681m.
Hail and Ghasha, 120 miles north-west of Abu Dhabi, are part of the Ghasha Concession; the world’s largest offshore sour gas development, and a key part of ADNOC’s masterplan for gas self-sufficiency in the UAE.
Production from the Ghaha Concession is expected to start around 2025, ramping up to more than 1.5 billion standard cubic feet per day of natural gas before the end of the decade.
Four artificial islands have been created for the work, with drilling now underway.
More than 80% of the value of the contracts will flow back into the UAE economy.
Sultan Ahmed Al Jaber, minister of Industry and Advanced Technology and managing director and Group CEO of ADNOC said: “These substantial awards mark another important milestone in the delivery of the Ghasha mega-project.
“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. As we responsibly execute this development we continue to explore ways to accelerate project delivery and further reduce emissions, together with our strategic international partners.”
A FEED contract for the huge project was awarded to Technip Energies in November.
EPC work for Dalma, also in the Ghasha Concession was handed to National Petroleum Construction Co. (NPCC), alongside Técnicas Reunidas and Target Engineering.