ADNOC and Abu Dhabi National Energy Company PJSC (TAQA) have achieved the successful financial closure of their $2.2bn (AED 8.3bn) pivotal initiative aimed at ensuring a sustainable water supply for ADNOC’s onshore activities.
This significant collaboration between two prominent energy companies in Abu Dhabi involves the creation and management of facilities dedicated to the sustainable treatment and provision of seawater for ADNOC’s operational needs at the Bab and Bu Hasa fields in Abu Dhabi. This initiative aligns with ADNOC’s commitment to decarbonise, undergo transformation, and fortify its business for the future.
A consortium composed of Orascom Construction and Metito, known as the Consortium, will undertake the construction of a centralised, world-class seawater treatment facility, along with a transportation and distribution network. In this venture, ADNOC and TAQA jointly hold a majority stake of 51%, with each owning 25.5%, while the Consortium retains the remaining 49% stake in the project company. This project will follow a build, own, operate, and transfer (BOOT) model, with full ownership transferring to ADNOC after 30 years of operation.
The financing for this endeavour will come from a consortium of nine local and international banks, including First Abu Dhabi Bank (FAB), Gulf International Bank (GIB), Natixis, Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (ADIB), Commercial Bank of Dubai (CBD), Emirates NBD (ENBD), Emirates Development Bank (EDB), and Warba Bank. These banks will provide funds through a combination of commercial and Islamic finance facilities. The remaining project cost will be covered by the project sponsors in accordance with their equity shares.
ADNOC Upstream executive director Abdulmunim Al Kindy said: “This strategic sustainable investment is a further example of how ADNOC is transforming, decarbonising and future-proofing our operations as we fully embrace the energy transition.
“At the same time, we are delighted to work in collaboration with TAQA to deliver another innovative project that will drive long-term value to Abu Dhabi and the UAE. 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.”
This project aims to replace the existing high-salinity, deep aquifer water systems at the fields, with the anticipation of achieving a remarkable reduction in energy consumption related to water injection, potentially up to 30%. Furthermore, the project is designed to be seamlessly integrated with the grid and is projected to be powered entirely by clean energy sources, ensuring a sustainable and environmentally friendly operation.
