ADNOC Drilling has bagged two contracts with a combined value of AED7.49bn ($2bn) pertaining to the offshore Hail and Ghasha development project (Ghasha mega-project) in the UAE from Abu Dhabi National Oil Company (ADNOC).
The first contract, which is worth $1.3bn is for providing integrated drilling services and fluids.
Under the second contract, worth $711m, ADNOC Drilling will be responsible for providing four island drilling units.
ADNOC Drilling CEO Abdulrahman Abdullah Al Seiari said: “This world-class award is testament to ADNOC Drilling’s position as the Middle East’s largest regional drilling company and the regional leader in Oilfield Services. It will ensure we continuously deliver strong and sustained growth while further driving shareholder value.”
ADNOC also announced a $681m contract, which has been awarded to ADNOC Logistics & Services for offshore logistics and marine support services.
According to the energy major, all three contracts will cover the drilling campaign of the Hail and Ghasha development project for up to 10 years.
UAE Minister of Industry and Advanced Technology and ADNOC managing director and group CEO Sultan Ahmed Al Jaber said: “These substantial awards mark another important milestone in the delivery of the Ghasha mega-project.
“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, as well as to meet growing global gas demand, in line with the UAE Leadership’s wise directives.
The multi-billion-dollar Ghasha mega-project is said to be among the largest offshore sour gas developments in the world.
ADNOC expects to begin production from the Ghasha Concession around 2025. The project will be ramped up to produce over 1.5 billion standard cubic feet per day (scfd) of natural gas by the end of 2030.
The UAE state-owned energy company said that four artificial islands have already been built and development drilling is going on at the concession. In 2019, ADNOC awarded a $1.42bn contract to National Marine Dredging Company (NMDC) for constructing the Ghasha Concession artificial islands.
