Onshore/Offshore Facilities

Technip-Led JV Nabs Hail and Ghasha Agreement From ADNOC

The $80-million preconstruction services agreement covers onshore facilities of massive, multibillion-dollar sour-gas development.

Shallow-water sour-gas fields Ghasha and Hail offshore UAE.
Source: ADNOC

A joint venture including Technip Energies, Samsung Engineering, and Tecnimont has scooped an $80-million award of a preconstruction services agreement (PCSA) related to the onshore facilities for the Hail and Ghasha gas development project in Abu Dhabi. Both fields are situated in the shallow-water Ghasha concession, which ADNOC calls the world’s largest offshore sour-gas development.

The PCSA phase follows the successful completion of an updated front-end engineering and design (FEED) for the entire development, executed by Technip Energies. This next phase covers early project activities for onshore facilities, such as initial detailed engineering and procurement services of critical long-lead items.

The scope also includes the preparation of a cost estimate for the project delivery of the onshore portion, which will be considered as part of ADNOC's final investment decision- making process.

“We are honored to be trusted by ADNOC to continue from the successful FEED execution to the initial activities for the onshore facilities for this important gas growth project, and to prepare an open-book cost estimate for project delivery,” said Arnaud Pieton, chief executive of Technip Energies. “Together with our joint venture partners, Samsung Engineering and Tecnimont, we will utilize our global experience on megaproject execution and open-book estimate conversions to transparently and diligently work with ADNOC and their international concession partners to continually optimize the project and successfully meet their requirements.”

ADNOC previously awarded $2 billion in contracts to ADNOC Drilling for integrated drilling services ($1.3 billion) and around $700 million for the provision of four island drilling units. A further $681-million contract was awarded to ADNOC Logistics and Services for providing offshore logistics and marine support services.

This trio of agreements cover the Hail and Ghasha drilling campaign for a maximum of 10 years. Drilling at both fields is conducted from purpose-built artificial islands.

Production from the Ghasha concession is expected to start sometime in 2025, ramping up to produce more than 1.5 Bcf/D of natural gas before the end of the decade.

Production from both fields is expected to provide feedstock for Abu Dhabi’s gas-export plants, as well as assist with its ambition to become a key hydrogen producer.