Adnoc Drilling has won two sizeable contracts worth more than $2 billion from state-owned giant Abu Dhabi National Oil Company (Adnoc) for work on the emirate’s ambitious Hail & Ghasha sour gas development.

The awards include a $1.3 billion contract for integrated drilling services and fluids, and a $711 million contract for the provision of four island drilling units.

In addition, Adnoc awarded a third contract, valued at $681 million, to one of its group companies —Adnoc Logistics & Services— for the provision of offshore logistics and marine support services.

“Overall, more than 80% of the value of the awards will flow back into the United Arab Emirate’s economy under Adnoc’s successful in-country value programme and all three of the contracts will cover the Hail & Ghasha drilling campaign for a maximum of 10 years,” the company said.

Ghasha concession

Adnoc’s much-delayed Hail & Ghasha sour gas development is a part of the Ghasha concession, which the operator claims is the world’s largest offshore sour gas development.

Gas production from the Ghasha concession is expected to start around 2025, ramping up to produce more than 1.5 billion cubic feet per day of gas before the end of the decade.

The state-owned giant said four artificial islands have already been completed and development drilling is under way for the sour gas development.

In November last year Adnoc awarded two crucial engineering, procurement and construction (EPC) contracts for the Dalma gas development project, which is a part of the wider Ghasha concession.

Revised FEED

Technip Energies is carrying out a revised front-end engineering and design study for the Hail & Ghasha development.

“The updated design is expected to be completed by the end of the year and will further optimise costs and timing, as well as potentially accelerate the integration of carbon capture,” Adnoc said.

Adnoc group chief executive Sultan Ahmed al Jabersaid the “awards mark another important milestone in the delivery of the Ghasha mega-project”.

Al Jaber noted that Abu Dhabi’s vast gas resources are likely to play an increasingly important role in providing lower-carbon energy to meet growing energy demand, 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,” he added.

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