ADNOC Drilling awarded $2 Billion in Contracts for the Hail and Ghasha Gas Development Project

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Abu Dhabi National Oil Company (ADNOC) announced the award of two substantial contracts totaling $2 billion (AED 7.49 billion) to ADNOC Drilling for the Hail and Ghasha Development Project. The contracts comprise $1.3 billion (AED 4.89 billion) for integrated drilling services and fluids, and $711 million (AED 2.6 billion) for the provision of four Island Drilling Units. A third contract, valued at $681 million (AED 2.5 billion), was also awarded to 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 UAE’s economy under ADNOC’s successful In-Country Value (ICV) program and all three of the contracts will cover the Hail and Ghasha drilling campaign for a maximum of ten years.

The Hail and Ghasha Development Project is part of the Ghasha Concession which is the world’s largest offshore sour gas development and a key component of ADNOC’s integrated gas masterplan as well as an important enabler of gas self-sufficiency for the United Arab Emirates (UAE).

His Excellency Dr. 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. 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. 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.”

ADNOC’s gas masterplan links every part of the gas value chain to ensure a sustainable and economic supply of natural gas to meet the growing requirements of the UAE and international markets, through expansion of ADNOC’s liquiefied natural gas (LNG) capacity. The plan includes the application of new approaches and technologies to enable increased and competitive gas recovery from existing fields as well as developing untapped resources and leveraging innovation to continually drive emissions reduction. 

Production from the Ghasha Concession is expected to start around 2025, ramping up to produce more than 1.5 billion standard cubic feet per day (scfd) of natural gas before the end of the decade. Four artificial islands have already been completed and development drilling is underway. 

In November last year, ADNOC and its partners awarded two Engineering, Procurement & Construction (EPC) contracts for the Dalma Gas Development Project, within the Ghasha Concession. They also awarded a contract to update the Front-End Engineering and Design (FEED) for the Hail and Ghasha project. The updated design is expected to be completed by the end of the year and will further optimize costs and timing, as well as potentially accelerate the integration of carbon capture.

Source: ADNOC

TA’ZIZ and Reliance Partner with UAE’s Shaheen on $2 Billion Chemicals Project in Ruwais

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Abu Dhabi Chemicals Derivatives Company RSC Ltd (“TA’ZIZ”) announced that Shaheen Chem Holdings Investment LLC (Shaheen), will join the proposed TA’ZIZ and Reliance Industries Limited TA’ZIZ EDC & PVC joint venture, that will construct and operate a world-scale Chlor-Alkali, Ethylene Dichloride (EDC) and Polyvinyl Chloride (PVC) facility, at the TA’ZIZ Industrial Chemicals Zone, in Ruwais. 

The TA’ZIZ Industrial Chemicals Zone is a joint venture between ADNOC and ADQ. With an investment of more than $2 billion (AED7.34 billion), the project will supply local manufacturers, replacing chemicals currently imported, while also exporting to meet growing demand for these chemicals globally. TA’ZIZ will provide new opportunities for local manufacturers, supporting growth of their knowledge and capabilities, catalyzing local industrial development. 

Shaheen brings extensive knowledge of the local market and joins the project with a focus on utilizing production for use in local supply chains. The agreement marks the first direct investment by a privately-owned United Arab Emirates (UAE) company in the TA’ZIZ Industrial Chemicals Zone. It also follows the investment agreements between TA’ZIZ and eight UAE-based investors in December 2021, which marked the first domestic Public Private Partnership (PPP) in Abu Dhabi’s downstream and petrochemicals sector.

Khaleefa Yousef Al Mheiri, TA’ZIZ Acting Chief Executive Officer, said: “We are delighted to welcome Shaheen as a strategic partner in TA’ZIZ. This strategic agreement further consolidates TA’ZIZ’s position as the sought-after partner for local and international investment in the UAE’s chemicals industry. The partnership supports our national strategy to drive the growth and diversification of the country’s industrial base, strengthen domestic supply chains and enable the private sector to “Make it in the Emirates”, in line with the leadership’s wise directives.”

The chemicals to be produced by the TA’ZIZ EDC and PVC project have a wide range of industrial applications and will create opportunities for export, as well as providing local industry with a source of critical raw materials manufactured in the UAE for the first time.

Walid Azhari, Managing Director of Shaheen, said: “We are honored to partner with TA’ZIZ and Reliance in this world class industrial plant which will include the largest Chlor Alkali plant in the world. We are looking forward to working with our partners during the development, construction and operation stages of the project. This project will be the cornerstone for many exciting downstream opportunities which will create a whole new industrial cluster in the UAE, in line with the Abu Dhabi Economic Vision 2030”.

Investment in the production of chemicals is a priority for the UAE’s industrial growth strategy, championed by the Ministry of Industry and Advanced Technology, which aims to raise the UAE’s industrial sector’s contribution of national GDP to AED300 billion by 2031. Chemicals are an attractive sector given projected demand growth globally and the opportunity local production creates to grow the UAE’s industrial base.

Chlor-Alkali enables the production of caustic soda, crucial to the production of aluminum, and EDC is used in the production of PVC for a wide range of industrial and consumer products including pipes, windows, cables, films and flooring.

TA’ZIZ comprises three zones, the first of which is an Industrial Chemicals Zone that will host chemicals production, with seven world-scale projects already in the design phase. The second is a Light Industrial Zone, which will be home to downstream conversion industries that will convert the outputs of the Chemicals Zone into consumable products. The third is an Industrial Services Zone that will house a variety of companies providing the services required by the TA’ZIZ industrial zones and the wider Ruwais Industrial Complex. 

All projects in the TA’ZIZ Industrial Chemicals Zone are subject to customary regulatory approvals.

Source: ADNOC

ADNOC Continues to Drive Upstream Growth as it Awards $658 Million Framework Agreements

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Abu Dhabi National Oil Company (ADNOC) announced the award of framework agreements valued at $658 million (AED 2.4 billion) for cementing services as it continues to invest to enable drilling growth and expand its crude oil production capacity.  The framework agreements were awarded to Haliburton Worldwide Limited Abu Dhabi (Halliburton), Baker Middle East (Baker), Emirates Western Oil Well Drilling & Maintenance Co. (Emirates Western), NESR Energy Services (NESR) and Emjel Oil Field Services (Emjel), following a competitive tender process. 

These awards cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years. Over 65% of the award value could flow back into the United Arab Emirates (UAE) economy under ADNOC’s In-Country Value program over the duration of the agreements. Furthermore, skilled employment opportunities will be created for UAE Nationals by the successful companies who will also work to identify local manufacturing opportunities.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “The awards for cementing services will support the ongoing expansion of ADNOC’s drilling activities as we grow our production capacity, strengthening our position as a reliable global supplier of some of the world’s most carbon efficient barrels. In line with the UAE Leadership’s wise directives and as part of our strategy, we are prioritizing in-country value  and these awards will enable careers for UAE Nationals and new opportunities for the private sector, directly supporting the objectives of the UAE’s Principles of the 50.” 

The smart nature of the awards will enable ADNOC to realize hundreds of millions of dollars in cost savings. As an integral part of its 2030 strategy, ADNOC is optimizing its procurement strategy to reflect market dynamics, focusing on long-term contracts with an optimized number of suppliers that provide stable and reliable delivery at highly competitive rates.

The award for cementing services takes the total value of ADNOC’s drilling-related framework agreements and procurement awards since November 2021 to over $8.5 billion (AED31.2 billion). These awards will support ADNOC’s requirement to drill thousands of new wells as it increases its crude oil production capacity to five million barrels per day (mmbpd) by 2030 and drives gas self-sufficiency for the UAE. 

Cementing is an important step in the drilling and completion of oil and gas wells. It involves mixing together cement slurry, additives and water and pumping the mixture between the rock formation and well casing to protect and seal the wellbore.

Source: Adnoc

ADNOC announced the award of a $946 million (AED3.47 billion) EPC contract for the strategic long-term development of its Umm Shaif field

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Abu Dhabi National Oil Company (ADNOC) announced the award of a $946 million (AED3.47 billion) Engineering, Procurement, and Construction (EPC) contract for the strategic long-term development of its Umm Shaif field. The investment supports ADNOC’s oil production capacity plans of five million barrels per day (mmbpd) by 2030 while ensuring energy security for the United Arab Emirates (UAE) and partners around the world.

The ‘Long-Term Development Plan – Phase 1’ (LTDP-1) EPC contract was awarded by ADNOC Offshore to National Petroleum Construction Company (NPCC) after a competitive tender process. The scope of the award covers engineering, procurement, fabrication, installation and commissioning activities required to maintain Umm Shaif’s 275,000 barrels per day (mbd) crude oil production capacity, increase efficiencies and enhance the field’s long-term potential. 

Significantly, over 75% of the total award value will flow back into the UAE economy under ADNOC’s In-Country Value (ICV) program, ensuring that more economic value remains in the country from the contracts it awards. This reinforces ADNOC’s commitment to the UAE’s ‘Principles of the 50’, the economic blueprint for sustainable growth announced by the UAE’s leadership in 2021.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “This important award for the long-term development of ADNOC’s pioneer offshore Umm Shaif field will maximize efficiencies while maintaining future output and supporting ADNOC’s strategic objective of five million barrels of oil production capacity a day by 2030. In addition, the development plan for Umm Shaif underpins ADNOC’s commitment to maintain its position as a leading low-cost oil producer and strengthens our role as a reliable energy provider to customers around the world. 

“We are pleased to be collaborating again with NPCC as a contractor bringing leading expertise and advanced technologies along with a proven industry track record. Importantly, the very high In-Country Value generated from this contract award will stimulate new business opportunities for the private sector and, in line with the directives of the UAE’s wise Leadership, support the UAE’s economic growth as we look to our next 50 years.” 

The EPC contract, which is due to be completed in 2025, comprises two packages for network expansion and new well-head towers. The first package includes modifications and extension of existing facilities with installation of new subsea cables and pipelines for debottlenecking. The second package includes the design of three lean well-head towers with associated new pipelines. The contract incorporates ‘fit for the future’ technology including rigless electrical submersible pumps (ESP) and other digital field technologies, which will increase efficiencies while maintaining current production capacity.

Ahmad Saqer Al Suwaidi, CEO of ADNOC Offshore, said: “This contract is an important contributor to ADNOC Offshore’s plans as we build our production capacity to over 2 million barrels a day in the coming years in support of ADNOC’s smart growth strategy. The award follows a highly competitive bid process, which included a rigorous assessment of how much of the contract value would support the growth and diversification of the UAE’s economy through ADNOC’s ICV Program.” 

Umm Shaif is ADNOC’s most historic offshore asset. 2022 marks the 60th anniversary of the UAE’s first oil export of Umm Shaif crude oil (July 1962). Continuing investment and development at Umm Shaif ensures responsible maximization of profitability, enabling greater value for the UAE, ADNOC and its partners.  

Source: ADNOC

ADNOC Onshore has awarded contracts worth $169 million (AED 621 million) for well testing services

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ADNOC Onshore has awarded contracts worth $169 million (AED 621 million) for well testing services as we continue to work towards 5 million barrels per day oil production capacity by 2030.

The services will apply best-in-class technology to optimize the performance of our onshore reservoirs, while minimizing the environmental impact of the process.

Over 60% of the value will flow back into the UAE’s economy under ADNOC’s flagship In-Country Value program to support growth and diversification.

The contracts of up to five years were awarded to NESR Energy Services, AlMansoori Production Services and Al Ahlia Oilfields Development Company following a competitive tender process.

Source: ADNOC

TAQA and ADNOC Announce $3.6 Billion Project to Power and Decarbonize Offshore Operations

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Abu Dhabi National Energy Company PJSC (TAQA) and Abu Dhabi National Oil Company (ADNOC) announced a $3.6 billion strategic project to significantly decarbonize ADNOC’s offshore production operations, further strengthening TAQA and ADNOC’s position in driving and leading sustainability efforts and supporting the United Arab Emirates (UAE) ‘Net-Zero by 2050 Strategic Initiative’.

The innovative project will see the development and operation of a first-of-its-kind high-voltage, direct current (HVDC-VSC) subsea transmission system in the Middle East and North Africa (MENA) region. It will power ADNOC’s offshore production operations with cleaner and more efficient energy, delivered through the Abu Dhabi onshore power grid, owned and operated by TAQA’s transmission and distribution companies.

The project will be funded through a special purpose vehicle (SPV) – a dedicated company that will be jointly owned by TAQA and ADNOC (30% stake each), and a consortium comprised of Korea Electric Power Corporation (KEPCO), Japan’s Kyushu Electric Power Co. and Électricité de France (EDF). Led by KEPCO, the consortium will hold a combined 40% stake in the project on a build, own, operate and transfer basis.

The consortium will develop and operate the state-of-the-art transmission system alongside TAQA and ADNOC, with the full project being returned to ADNOC after 35 years of operation. The project is subject to relevant regulatory approvals.

The development is expected to reduce the carbon footprint of ADNOC’s offshore operations by more than 30%, replacing existing offshore gas turbine generators with more sustainable power sources available on the Abu Dhabi onshore power network. This progressive and collaborative approach will also drive operational efficiencies and improve system reliability of energy supply, while offering the potential for power supply cost optimization.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “ADNOC is delighted to be collaborating again with TAQA, as we jointly welcome world-class industry leaders in yet another landmark transaction that will see ADNOC make a significant step forward in our ongoing decarbonization journey. As ADNOC embraces the energy transition, this bold and progressive project will replace our existing offshore local power supply with cleaner and more sustainable onshore power sources, significantly reducing our carbon footprint while enabling additional cost savings. This first-of-its-kind project is a further example of how ADNOC is advancing practical and commercially viable solutions to secure a lower carbon future, while driving significant foreign direct investment, and, in turn, cementing Abu Dhabi and the UAE’s position as a trusted global investment destination.”

More than 50% of the project value will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program, underpinning TAQA and ADNOC’s commitment to driving responsible and sustained investment and value creation for Abu Dhabi and the UAE.

Jasim Husain Thabet, TAQA’s Group CEO and Managing Director, said: “As the recognized low carbon power and water champion of Abu Dhabi and one of the top 5 utilities in EMEA by market value, TAQA is pleased to again partner with ADNOC on such an important project that will contribute to the decarbonization of Abu Dhabi’s energy industry in such an impactful way. This first-of-its-kind project shows how the UAE continues to demonstrate its strong leadership and innovation in the global energy transition by bringing together critical players to boost sustainability credentials and maximizing the utilization of Abu Dhabi’s diverse and efficient energy mix. Decarbonization continues to provide social and economic opportunities for collaboration and growth, which TAQA is actively pursuing through its strategic alliances and partnerships in the market.”

Seung-il Cheong, President and CEO of KEPCO, said: “It is truly an honor to participate in this strategic project with ADNOC. As the Barakah Nuclear Power Project has become a token of long friendship and cooperation between the UAE and Korea, KEPCO will strive for the successful completion of this Project and contribute to the ‘2050 Net-Zero Initiative’ of the UAE.”

Kazuhiro Ikebe, President and CEO of Kyushu Electric Power Company, said: “Kyuden Group is honored to have been selected as a business partner for this project. We are pleased that the realization of this project will contribute to the reduction of CO2 emissions at ADNOC’s oil production facilities by more than 30%. Our Group has just announced an action plan for carbon neutrality, and we are determined to promote energy businesses that contribute to the reduction of carbon emissions globally. We hope to contribute to the stable operation of this project by utilizing the know-how we have cultivated in the electric power business in Japan and overseas.”

Jean-Bernard Lévy, Chairman and CEO of EDF, stated: “We are grateful to have been awarded such a contract by ADNOC and TAQA in the UAE within the successful consortium, which can rely on EDF’s robust transmission engineering expertise. EDF is proud to be part of this innovative project that significantly contributes to decarbonize ADNOC operations.”

The transmission system will have a total installed capacity of 3.2 gigawatts (GW) and comprise two independent sub-sea HVDC links and converter stations that will connect to TAQA’s onshore electricity grid – operated by its subsidiary, Abu Dhabi Transmission and Despatch Company (TRANSCO). Construction is expected to begin in 2022 with commercial operation commencing in 2025.

The project also offers the potential for ADNOC to more effectively utilize its rich gas – currently used to power the offshore facilities – for higher-value purposes, allowing ADNOC to generate additional revenue.

A tender for this innovative project was issued in April 2020 resulting in very strong interest from international companies. Following this highly competitive tender process the consortium was selected.

Source: TAQA

TA’ZIZ and Reliance Launch Strategic Joint Venture for $2 Billion Chemicals Projects in Ruwais

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Abu Dhabi Chemicals Derivatives Company RSC Ltd (“TA’ZIZ”) and Reliance Industries Limited (RIL), have agreed to launch TA’ZIZ EDC & PVC, a world-scale chemical production partnership at the TA’ZIZ Industrial Chemicals Zone in Ruwais. The new joint-venture will construct and operate a Chlor-Alkali, Ethylene Dichloride (EDC) and Polyvinyl Chloride (PVC) production facility, with an investment of more than $2 billion. Representing the first production of these chemicals in the UAE, the project will enable the substitution of imports and the creation of new local value chains, while also meeting growing demand for these chemicals globally. The TA’ZIZ Industrial Chemicals Zone is a joint venture between Abu Dhabi National Oil Company (ADNOC) and ADQ.

The project builds on ADNOC and Reliance’s long-standing strategic partnership and is Reliance’s first investment in the MENA region. The signing of the joint venture terms, which are subject to regulatory approvals, was witnessed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO and Reliance Industries Chairman and Managing Director, Mr. Mukesh D. Ambani. The joint venture terms were signed by Mr. Khaleefa Al Mheiri, Acting CEO of TA’ZIZ and Mr. Kamal Nanavaty, President Strategy and Business Development of Reliance Industries Limited.

H.E. Dr. Al Jaber, said: “This strategic partnership with Reliance Industries builds on the strong and deep-rooted bilateral ties between the UAE and India and highlights the attractive and compelling value proposition offered by TA’ZIZ as we grow a globally competitive industrial ecosystem. We are delighted to partner with Reliance Industries in this new joint venture which will manufacture critical industrial raw materials for the first time in the UAE, supporting our national strategy to empower the industrial sector to become the driving force of a truly dynamic economy over the next 50 years. 

“This joint venture marks a major milestone in ADNOC’s downstream expansion and the development of the TA’ZIZ Industrial Chemicals Zone. It will help strengthen domestic supply chains, drive In-Country Value and accelerate the UAE’s economic diversification, in line with the leadership’s wise directives.”

Mr. Ambani, said: “This joint venture between Reliance Industries Limited and TA’ZIZ will further cement the long standing and valued relationship between India and the UAE. We are happy that we will be setting up the first projects in the vinyl chain in the UAE at TA’ZIZ Industrial Chemicals Zone, which is being developed into a global hub for chemicals. 

“India’s need for PVC to propel its growth, and the value from the abundantly available feedstock in UAE, provides a win-win partnership for both companies. Close cooperation in the region based on shared objectives is key as we optimise resources and work together to enrich the lives of our citizens.”

The chemicals have a wide range of industrial applications, enabling local supply chains and meeting growing demand in key export markets. Chlor-Alkali enables the production of caustic soda, crucial to the alumina refining process. EDC is used in the production of PVC, which is used to manufacture a wide range of industrial and consumer products including pipes, windows fittings, cables, films and flooring.  The production of Chlor-Alkali, EDC, and PVC will create opportunities for export to target markets in Southeast Asia and Africa, as well as providing local industry with a source of critical raw materials manufactured in the UAE for the first time, strengthening In-Country Value.

Chemicals is a priority sector for the UAE’s industrial growth strategy, championed by the Ministry of Industry and Advanced Technology, which has the goal to raise the UAE’s industrial sector’s contribution of national GDP to AED300 billion by 2031. Chemicals are an attractive sector given projected demand growth globally and the opportunity local production creates to enable new supply chains.

Today’s agreement builds on significant interest in TA’ZIZ received from local and international investors in recent months. TA’ZIZ comprises three zones, the first of which is an Industrial Chemicals Zone that will host chemicals production, with seven world-scale projects already in the design phase. The second is a Light Industrial Zone, which will be home to downstream conversion industries that will convert the outputs of the Chemical Zone into consumable products and, finally, an Industrial Services Zone that will house a variety of companies providing the necessary services required by the TA’ZIZ industrial zones and the wider Ruwais Industrial Complex. 

The Ta’ziz Industrial Chemical Zone projects are currently in the design phase with project start up targeted in 2025.

Source: ADNOC

ADNOC Awards $1.46 Billion EPC Contracts for the Dalma Gas Development Project

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The Abu Dhabi National Oil Company (ADNOC) announced , the award of two engineering, procurement and construction (EPC) contracts totaling $1.46 billion (AED5.36 billion) for the Dalma Gas Development Project. The Dalma field is part of the Ghasha Concession which is the world’s largest offshore sour gas development and an important enabler of gas self-sufficiency for the United Arab Emirates (UAE).

The two EPC contracts, awarded to National Petroleum Construction Company (NPCC) and a joint venture (JV) between Técnicas Reunidas and Target Engineering, include the construction of gas conditioning facilities, wellhead topsides, pipelines and umbilicals. Seventy percent of the award value will flow back into the UAE’s economy under ADNOC’s successful In-Country Value (ICV) program, reinforcing ADNOC’s commitment to ensuring more economic value remains in the country from the contracts it awards.

Package A of the two Dalma EPC contracts was awarded to NPCC and is valued at $514 million (AED1.89 billion). It covers the EPC of four offshore wellhead towers, pipelines and umbilicals in Hair Dalma, Satah, and Bu Haseer fields.
Package B, awarded to the Técnicas Reunidas and Target Engineering JV, is valued at $950 million (AED3.49 billion) and covers the EPC of gas conditioning facilities for gas dehydration, compression and associated utilities on Arzanah Island located 80 kilometers from Abu Dhabi.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “The award of the Dalma EPC contracts as well as ongoing artificial island construction and development drilling underscore the progress of the Ghasha mega development. As we continue to execute this strategic project, we  are ensuring it delivers substantial In-Country Value to drive economic growth and support the objectives of the UAE’s Principles of the 50, set out by the country’s wise Leadership.

“ADNOC and its partners remain guided by our strategic production capacity objectives and sustainability ambitions. Together, we are responsibly progressing the Ghasha mega development to maximise value as well as support the gas self sufficiency goal of the UAE.”

Both engineering contracts are expected to be completed in 2025 and will enable the Dalma field to produce around 340 million standard cubic feet per day (mmscfd) of natural gas. The offshore Dalma field is located 190 kilometers northwest of the Emirate of Abu Dhabi. ADNOC has advanced orders for long lead items and completed seven development wells at Dalma, enabling smooth and expedited project delivery.

ADNOC continues to work with its concession partners to responsibly progress the Ghasha mega project, aiming to further optimize costs and timing, as well as accelerate the integration of carbon capture, while remaining focused on production objectives and requirements. As part of this, ADNOC and its partners have today awarded a contract to Technip Energies to update the Front-End Engineering and Design (FEED) for the concession.

In the Ghasha concession area, three artificial islands have already been completed, as enabling works continue. Production from the concession is expected to start around 2025, ramping up to produce more than 1.5 billion scfd before the end of the decade. 

The Ghasha mega development includes one of the UAE’s largest ever marine environmental baseline surveys, underpinning ADNOC’s commitment to sustainability. Its use of artificial islands provides significant environmental benefits as well as cost savings by eliminating the need to dredge over 100 locations for wells while also providing additional habitats for marine life.

Source: ADNOC

ADNOC L&S Partners with AD Ports Group to Develop a New Port at Ruwais

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ADNOC Logistics & Services (ADNOC L&S), and AD Ports Group have signed an agreement to develop a new port and logistics facility at TA’ZIZ, the chemicals production and industrial hub currently under development at Ruwais, United Arab Emirates (UAE). 

Under the terms of the agreement, ADNOC L&S and AD Ports Group will develop a liquids terminal and logistics facility to support tenants of the TA’ZIZ Industrial Chemicals Zone. The facility will be a critical part of the supply chain for feedstocks and will store and load final products for export. The partners will select an international operator to enter into a new joint venture and contribute to the development of the new port. 

Speaking at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “Our strategic partnership with AD Ports Group builds on the complementary strengths of two UAE industrial champions in accelerating the competitiveness of TA’ZIZ and our growing petrochemicals sector in Ruwais. The new port will consolidate the UAE’s competitiveness as an international supply chain hub for energy and industry and further positions TA’ZIZ as the preferred partner for investing in the growth of the UAE’s advanced manufacturing base.”
TA’ZIZ is strategically aligned with the UAE’s ‘Principles of the 50’, with initial chemicals production expected in 2025. 

Captain Mohamed Juma Al Shamsi, Group CEO, AD Ports Group, said: “As an enabler of trade and industry, we remain committed to creating highly attractive business opportunities for companies within Abu Dhabi and the wider UAE. Our collaboration with ADNOC L&S to develop a port and liquid terminal facility to support TA’ZIZ is aligned with our vision of driving the growth of international trade in the Emirate. By bringing together our respective expertise to build vital trade infrastructure, we are boosting industrial investment flows to the UAE and helping accelerate Abu Dhabi’s economic growth and industrialization.”

Three large-scale berths and associated infrastructure in addition to loading and unloading facilities will make up the foundation of the new port. The two liquid berths measure 640 meters in length with the dry bulk berth measuring 320 meters, which combined equals 10 football pitches. A tank farm with ten product tanks and one feedstock storage tank will be included, with specialized utilities, control rooms, and product vapor handling systems safeguarding the products in storage.

TA’ZIZ comprises three zones; an Industrial Chemicals Zone that will host chemicals production with seven world-scale projects in the design phase, a Light Industrial Zone that will convert the outputs of the Chemicals Zone into consumable products, and an Industrial Services Zone that will house companies who provide services required by the other zones. 

Since launching in November 2020, contracts have been awarded for the initial Front-End Engineering and Design (Pre-FEED) for seven world-scale chemicals projects. Partnership announcements have been made for Blue Ammonia, Ethylene Dichloride (EDC), Chlor-alkali (CA) and Polyvinyl chloride (PVC). TAQA and ADNOC have also signed an agreement to develop a utilities facility for chemicals projects. 

ADNOC L&S is the largest integrated shipping and maritime logistics company in the Middle East, with a fleet of over 240 owned and chartered vessels and integrated solutions models covering the entire oil and gas supply in the UAE. The company operates the largest and only purpose-built oil and gas logistics base in the UAE, providing a wide range of diversified services to the offshore industry. ADNOC L&S’ recent 25-year exclusive agreement to service all Petroleum Ports in Abu Dhabi solidifies its role as the oil and gas supply chain champion in the UAE.

Source: ADNOC

ADNOC, bp and Masdar agree to expand UAE-UK new energy partnership

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Abu Dhabi National Oil Company (ADNOC), bp and Masdar announced the signing of strategic framework agreements to expand upon the UAE and UK’s longstanding track record of bilateral partnership in sustainability, including the potential development of clean hydrogen hubs in both the UK and UAE at a scale of at least 2 gigawatts (GW).


The agreements underscore the partners’ leadership in technology-driven solutions to the global climate challenge as well as a shared commitment to driving new economic opportunity through decarbonization, both domestically and abroad.

The signing of the framework agreements took place on the sidelines of His Highness Sheikh Mohammed bin Zayed Al Nahyan’s, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, official visit to the UK. The agreements were signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Masdar Chairman, and Bernard Looney, bp Chief Executive Officer.

Commenting on the agreements, H.E. Dr. Sultan Ahmed Al Jaber said: “The UK and UAE have enjoyed decades of strong economic ties and the agreements signed between ADNOC, Masdar and bp will serve to deepen the strategic relationship between our countries. We look forward to building upon this legacy to strengthen both countries’ ambitions to generate economic growth through low-carbon initiatives. These initiatives will make a direct contribution to the ‘Principles of the 50,’ the economic blueprint for sustainable growth recently announced by the UAE’s leadership.”  
Bernard Looney, bp’s Chief Executive Officer, said: “The UK and UAE governments have bold plans for decarbonization. The UK is our home and we have worked in the UAE for nearly a century. By partnering with the visionary leaders of ADNOC and Masdar, we see massive business opportunity to generate the clean energy the world wants and needs – and at the same time revitalize local economies and create the jobs of the future.” 

Under the terms of the agreements, ADNOC, bp and Masdar will seek to collaborate on UK and UAE clean hydrogen hub development at an initial scale of 1GW in the UAE and 1GW in the UK, building on the UAE’s position as an anchor investor in some of the UK’s largest offshore wind projects. The hydrogen agreements also align with the UK’s recently announced commitment to achieve 5GW of low-carbon hydrogen by 2030 and the UAE’s Nationally Determined Contribution of reducing greenhouse gas emissions by 23.5% compared to business as usual for the year 2030. 

ADNOC and bp will also, as part of the agreements, jointly identify areas for potential partnership in greenfield carbon capture and underground storage and best-in-class methane detection platforms. Further, Masdar and bp will together explore opportunities to develop, build and operate sustainable energy and mobility solutions in urban population centers. 

The partners’ shared interest in developing new opportunities for clean hydrogen development capitalizes on the UK and UAE’s highly complementary infrastructure and resource positions. With abundant renewable energy sources and proximity to significant future demand centers for hydrogen and its carrier fuels, the partners’ commitments can help to ensure the UK and UAE are well positioned to become regional leaders in the new hydrogen economy and support both countries’ ambitious climate targets. 

CCUS, an equally critical component of the world’s decarbonization toolkit, has been built successfully at commercial scale in the UK and UAE through the Teesside and Al Reyadah facilities, respectively. With the framework agreement, the two partners look forward to expanding their shared leadership in CCUS technology to explore pilot opportunities for further industrial-scale carbon capture within the UAE.

While the UAE has long maintained a zero-routine flaring policy, the partners’ potential collaboration on new methane detection technologies will help to further maximize the impact of both countries’ decarbonization strategies. Methane, at more than eighty times the potency of CO2, remains at the top of GHG mitigation agendas, necessitating the partners’ shared pursuit of cutting-edge monitoring and analysis platforms. 

Similarly, ADNOC and bp’s joint smart decision center initiative will support possible development and deployment of remote digital capabilities to transform both companies’ performance management and operational support, including in the area of energy efficiency.

Masdar and bp will also explore potential opportunities to together develop, build and operate energy and mobility services in urban spaces internationally, including energy efficiency, distributed renewables generation and energy storage, among others.

The initiatives envisaged by the strategic framework agreements would be subject to relevant regulatory approvals. 

Source: ADNOC

ADNOC Signs Framework Agreements worth nearly $1 Billion for Project Engineering Services

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The Abu Dhabi National Oil Company (ADNOC) announced, the signing of framework agreements for Concept and Front-End Engineering Design (FEED) services for major projects across its full value chain to support the delivery of its 2030 strategy. 

The framework agreements – which were signed with eight top-tier global engineering contractors – have a combined scope worth up to $1 billion (AED 3.67 billion) and the potential for 50% of the value to flow back into the United Arab Emirates’ (UAE) economy under ADNOC’s In-Country Value (ICV) program, over the agreement term between 2021 and 2026. The scope of the agreements is based on the forecasted requirement for external project engineering services across the ADNOC Group. 

The nature of the agreements underpins ADNOC’s smart approach to procurement which is enabling it to drive value and commerciality across its portfolio. By structuring the framework agreements with a group of top-tier contractors instead of procuring smaller individual agreements, ADNOC was able to secure pre-agreed terms and conditions thereby reducing tendering cycle by months, achieve highly competitive rates by leveraging long-term contracts that service its entire portfolio, and establish a group-wide performance management and review process that provides high visibility of contractor performance.

Abdulmunim Saif Al Kindy, ADNOC People, Technology & Corporate Support Executive Director, said: “We are very pleased to engage with the eight top-tier engineering contractors awarded to provide best-in-class engineering expertise on our strategic projects across our full value chain. These framework agreements follow a very competitive tender process and the smart nature of the deals will deliver substantial cost savings, optimize project delivery schedules and provide ADNOC with increased flexibility to drive its growth targets and proactively respond to the demands of the fast-evolving energy landscape. In addition, the agreements offer the potential to create additional skilled employment opportunities for Emiratis and include commitments that contracted services will primarily be carried out in the UAE, ensuring more economic value remains in the country from our contract awards.”

ADNOC signed the framework agreements with AMEC International Ltd (part of the Wood Group), Fluor, McDermott, Mott MacDonald, SNC-Lavalin International Arabia Limited – Abu Dhabi (part of the Kentech Group), Technip Energies, Worley, and a joint venture between Tecnicas Reunidas and NPCC. The agreements will run for five years, with an option for a two-year extension. The eight contractors have committed to set up and run enhanced training programs to further develop local expertise and enable knowledge transfer.

As an integral part of its 2030 strategy, ADNOC is optimizing its procurement strategy to reflect market dynamics, focusing on long-term contracts with a reduced number of suppliers that provide stable and reliable delivery at highly competitive rates. 

Source: ADNOC

ADNOC and Three Japanese Companies to Explore Hydrogen and Blue Ammonia Opportunities

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The Abu Dhabi National Oil Company (ADNOC) announced, a joint study agreement (JSA) with two Japanese companies – INPEX Corporation (INPEX), JERA Co., Inc. (JERA), and a government agency, the Japan Oil, Gas and Metals National Corporation (JOGMEC) – to explore the commercial potential of blue ammonia production in the United Arab Emirates (UAE). 

The agreement builds on ADNOC’s low-carbon fuels leadership and extensive experience in carbon capture and storage and follows a virtual meeting between His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, and H.E. Kajiyama Hiroshi, Japan Minister of Economy, Trade, and Industry (METI).

During the meeting, the ministers reviewed joint efforts between both countries to enhance industrial cooperation and drive new opportunities for partnerships in Hydrogen, renewables, and climate change following a series of framework agreements ADNOC signed with Japan’s METI as well as other Japanese companies earlier this year. 

H.E. Dr. Al Jaber said: “For almost five decades, the  UAE and Japan have enjoyed a deep-rooted and successful strategic relationship, underpinned by long-standing energy partnerships. As we increase our focus on the potential of new lower carbon fuels and navigate the energy transition, the UAE and ADNOC are keen to build and strengthen our existing partnerships and seize growth opportunities with Japan that can help produce more energy with fewer emissions. 

“This joint study agreement with INPEX, JERA and JOGMEC provides a roadmap for us to deepen access to Japanese markets for ADNOC’s products and further strengthen the UAE’s hydrogen value proposition.”

The UAE is aiming to expand bilateral economic and trade relations with Japan as it drives post-Covid economic growth and ADNOC is leveraging its status as a long-standing reliable and stable supplier of oil and gas to Japan to nurture new partnership opportunities between both countries. Japan is ADNOC’s largest international importer of oil and gas products with approximately 25% of its crude oil imported from the UAE.

H.E. Mr. Kajiyama said: In January, METI and ADNOC signed a Momorandum of Cooperation (MOC) on Fuel Ammonia and Carbon Recycling. Since then, further progress has been made among relevant entities, and we are pleased with the signing of JSA on fuel ammonia by ADNOC, INPEX, JERA and JOGMEC today. Japan hope that today’s conclusion of JSA will lead to further progress in concrete efforts to the supply of fuel ammonia from Abu Dhabi to Japan.

The JSA will provide a platform for ADNOC and its partners to explore supplying Japanese utility companies with blue ammonia produced in Abu Dhabi. 

ADNOC is already embarking on a world-scale blue ammonia production facility at the TA’ZIZ Industrial Chemicals Zone in Ruwais which will have a capacity of 1,000 kilotons per annum, and further opportunities in blue ammonia will be explored under the new agreement.

Blue ammonia is made from nitrogen and “blue” hydrogen derived from natural gas feedstocks, with the carbon dioxide by-product from hydrogen production captured and stored. Ammonia can be used as a low-carbon fuel across a wide range of industrial applications, including transportation, power generation, and industries including steel, cement and fertilizer production.

In January, the UAE and Japan agreed to cooperate on fuel ammonia and carbon recycling technologies following the signing of a Memorandum of Cooperation between ADNOC and Japan’s METI. Both the UAE and Japan enjoy strong bilateral economic relations dating back to 1961 when the first shipment of UAE crude oil was exported from the Umm al-Shaif offshore field in Abu Dhabi to Japan.

ADNOC has a long history of mutually beneficial strategic partnerships with Japanese oil and gas companies that span over four decades and cover the entire oil and gas value chain, and these partnerships have strengthened in recent years.

Source: ADNOC

Fertiglobe Joins TA’ZIZ as Partner in World-Scale Blue Ammonia Project in Ruwais

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TA’ZIZ and Fertiglobe today announced that they have signed an agreement for Fertiglobe to join the world-scale blue ammonia production project at TA’ZIZ in Ruwais, Abu Dhabi. The agreement further strengthens the UAE’s hydrogen value proposition, building on the deep experience in carbon capture and storage of ADNOC, and the world leading ammonia capabilities of Fertiglobe, to develop the first-of-its-kind large scale blue ammonia project in the MENA region.  

The project benefits from its location in the purpose-built TA’ZIZ Industrial Chemicals Zone, adjacent to the Ruwais Industrial Complex, which will supply the project with attractive hydrogen and nitrogen feedstocks. The agreement is subject to regulatory approvals.

Since launching in 2020, TA’ZIZ has attracted significant interest from local and international investors. Today’s agreement marks the first international investor to partner with TA’ZIZ, with further announcements for other TA’ZIZ projects expected shortly.   

His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: “This is a significant milestone in the development of our blue hydrogen and ammonia business and capitalizes on the strong foundation that ADNOC has developed with Fertiglobe. We believe hydrogen and its carrier fuels, such as ammonia, offer strong potential as low-carbon energy sources. As we continue to grow our manufacturing base in Ruwais, the UAE is well-placed to meet increasing global demand for this new fuel while strengthening our position as a world-scale chemicals and industrial hub and top destination for local and international investment.”

Source: ADNOC

ADNOC and TAQA to Develop World Class Utilities at TA’ZIZ in Ruwais

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TA’ZIZ a catalyst for industrial growth and diversification in Abu Dhabi, generating additional value from every barrel of oil produced and processed by ADNOC

Reliable and competitive utilities, such as power, steam and water, a critical enabler of the TA’ZIZ industrial ecosystem 

Agreement enhances investor value proposition for all of the TA’ZIZ industrial zones

Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) have signed an agreement to construct the utilities facility for TA’ZIZ, the new world-scale chemicals  production hub and globally competitive industrial ecosystem currently under development at Ruwais, Abu Dhabi in the United Arab Emirates (UAE). This agreement brings together two of Abu Dhabi’s industrial champions, using the expertise and skills of both TAQA and ADNOC to enhance the attractiveness of TA’ZIZ projects and strengthen the value proposition for investors.

TA’ZIZ will accelerate the UAE’s broader economic growth and industrial diversification, with initial chemicals production expected in 2025. Opportunities are available for local and international investors to participate across the value chain, including light manufacturing and services.   Under the terms of the utilities facility agreement, ADNOC and TAQA will jointly develop the power, steam, cooling, demineralized and waste water services to enable chemicals projects within the TA’ZIZ ecosystem. 

Mr Khaleefa Al Mheiri Acting CEO, TA’ZIZ, said: “ADNOC’s agreement with TAQA is the next milestone in the development of TA’ZIZ, as we continue to grow a globally competitive  industrial ecosystem and highly attractive and competitive investor value proposition.  Through the partnership between ADNOC and TAQA and related enabling investments in TA’ZIZ, we are well-placed to further strengthen our position as a world-scale chemicals and industrial hub and top destination for foreign direct investment, leveraging technology to further grow the UAE’s advanced manufacturing base.”

Mr. Farid Al Awlaqi, Executive Director of Generation at TAQA Group, said: “We look forward to partnering with ADNOC on such an important project for Abu Dhabi that will be serving a multitude of industries, with both local and international market players. As a fully integrated utilities company, based here in Abu Dhabi, being able to provide such critical services for TA’ZIZ is at the core of what we do at TAQA.  In addition to supporting critical infrastructure development in our home market, this project advances the economic vision for the Emirate and the UAE.”

TA’ZIZ will catalyze the development of manufacturing and supply chain activities at Ruwais. Manufacturers will locate in the TA’ZIZ Light Industrial Zone, adjacent to the TA’ZIZ Industrial Chemicals Zone, off-taking TA’ZIZ chemicals to make value-added products for local and international markets. Suppliers will cluster in the TA’ZIZ Industrial Services Zone, to meet the growing needs for services in the Ruwais industrial area.

Since its launch in November 2020, TA’ZIZ has made significant progress. Development activities at the site have moved forward, with land and marine surveys already completed.  Considerable interest has been received from local and international investors in opportunities across the entire ecosystem and value chain, and agreements with the first phase of investors are nearing finalization.

Contracts have been awarded for the first stages of development for the TA’ZIZ site, and work is already underway. This includes geotechnical and topographical surveys, a marine bathymetric survey and health, safety and environment impact assessments, which have already been completed. The surveys will enable civil engineering works to prepare the TA’ZIZ site for construction as well as dredging for an entirely new port facility. 

Tenders for the Front-End Engineering and Design (Pre-EED/FEED) of the seven TA’ZIZ chemicals derivatives projects have been awarded. Final investment decisions for the projects and awards of related EPC contracts are being targeted for 2022.

TA’ZIZ enjoys strong synergies with ADNOC’s integrated downstream and industry assets for feedstocks and services, as well as advantaged maritime, land and air logistics and transport links. The TA’ZIZ site is adjacent to the Ruwais Industrial Complex and enjoys a favorable location at the crossroads of east-west trade flows and routes to the UAE’s target markets, with a third of the world’s population accessible within four hours by plane and short sailing distances. The city of Ruwais is today well-positioned to further grow and flourish with the influx of families that seek to build careers and lives in what has become a dynamic, highly attractive residential community.

Source: www.adnoc.ae

ADNOC Project- Petropipe

ADNOC Awarded $1.65 bln Construction Contracts for Dalma gas project to Petrofac and its joint venture with Sapura Energy.

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Abu Dhabi National Oil Company (ADNOC) awarded two contracts worth US$1.65 billion for the construction of offshore facilities for the Dalma gas development project to Petrofac and its joint venture with Sapura Energy.

The two engineering, procurement and construction (EPC) contracts are expected to be completed in 2022 and will enable the Dalma Gas Development project to produce around 340 million standard cubic feet per day (mmscfd) of natural gas.

The Dalma project, located about 190 kilometers northwest of Abu Dhabi city, is a key part of the Ghasha ultra-sour gas concession which is central to ADNOC’s strategic objective of enabling gas self-sufficiency for the United Arab Emirates (UAE).

Also, 70 percent of the total award value will flow into the UAE’s economy under ADNOC’s In-Country Value (ICV) program, reinforcing ADNOC’s commitment to maximizing value for the UAE as it delivers its 2030 strategy.

Yaser Saeed Almazrouei, executive director of ADNOC’s Upstream Directorate, said: “This award marks another important milestone in the development of the Ghasha concession which is an integral component of our strategy to achieve gas self-sufficiency for the UAE. It demonstrates how ADNOC is effectively collaborating with strategic partners that can deploy state-of-the-art technologies and world-class expertise to accelerate the development of Abu Dhabi’s substantial gas resources.

“Petrofac and Sapura Energy were selected to deliver this crucial project after an extremely competitive and rigorous tender process that ensures that 70 percent of the award value will flow into the UAE’s economy as In-Country Value, stimulating local economic growth and supporting the diversification of the nation’s economy in line with the leadership’s wise directives.”

Under the terms of one EPC contract valued at $591 million (AED 2.17 billion) and awarded to a joint venture (JV) between Petrofac and Sapura Energy, the JV will execute the engineering, procurement and construction of four offshore wellhead towers, pipelines and umbilicals in Hair Dalma, Satah, and Bu Haseer fields.

Under the terms of the other EPC contract, valued at $1.065 billion (AED 3.9 billion) and awarded to Petrofac, the contractor will carry out the engineering, procurement and construction of gas conditioning facilities for gas dehydration, compression and associated utilities in Arzanah Island located 80 kilometers from Abu Dhabi city. The gas will then be sent to Habshan Gas Processing Plant for further processing required to produce sales gas, condensate, and sulphur.

George Salibi, Petrofac’s Chief Operating Officer – Engineering & Construction, said: “We are fully committed to supporting continued and sustainable investment in Abu Dhabi’s oil and gas industry through our strategic focus on maximising local delivery and are pleased that our approach will generate substantial In-Country Value for the local economy. These latest contract awards build on our existing relationship with ADNOC Group companies and we look forward to delivering this mega project in a safe, successful and sustainable manner.”

Tan Sri Shahril Shamsuddin, President and Group CEO of Sapura Energy, said: “We are committed to delivering the Dalma Gas Development Project with our hallmark technical capabilities in offshore engineering and construction. Our priority is to support ADNOC in unlocking value from their asset.”

As part of the selection criteria for the awards, ADNOC carefully considered the extent to which bidders would maximize In-Country Value in the delivery of the project. This is a mechanism integrated into ADNOC’s tender evaluation process and is aimed at nurturing new local and international partnerships and business opportunities, catalyzing socio-economic growth and creating job opportunities for UAE nationals.

The successful bids by Petrofac and Sapura Energy prioritized UAE sources for materials, local suppliers and workforce, resulting in a total spend of over $1.15 billion (AED 4.2 billion) which will flow into the UAE’s economy.

Source:http://bit.ly/2P4gveZ

kbr

KBR AWARDED MAJOR PMC SERVICES CONTRACT BY ADNOC FOR GHASHA CONCESSION PROJECT

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KBR has been awarded a major Project Management Consultancy (PMC) services contract by Abu Dhabi National Oil Company (ADNOC) for the Ghasha Concession portfolio of projects.

Under the terms of the contract, KBR will act as the main PMC contractor responsible for managing the successful Engineering, Procurement and Construction (EPC) contractors for Packages A & B of the Dalma Gas Development Project, Packages 1-5 of the Hail & Ghasha Development Project, Hail & Ghasha Islands Project as well as the Deep Gas Project. This work is expected to be performed over four years with an optional extension for two more years.

The Ghasha mega-project has the potential to meet about 20 percent of the UAE’s gas demand by around the second half of the decade. In addition, more than 120,000 barrels per day of oil and high-value condensates are expected to be produced when the project is on stream.

“We deeply appreciate the tremendous amount of trust that ADNOC has placed in KBR to project-manage such a significant share of this strategic Ghasha Concession program,” said Stuart Bradie, KBR President and CEO. “This award highlights ADNOC’s confidence in KBR’s reputation as the industry leader in the provision of value-added PMC services for similar mega gas-field development projects.”

“We look forward to continuing our long-term relationship with ADNOC and to demonstrating once again our world class ability to manage large-scale, complex projects such as this on time, within budget, but most of all with a strict safety culture,” Bradie continued. “We are confident that the Ghasha Concession Project will significantly boost In-Country Value. As always, KBR remains fully committed to act as one of ADNOC’s strategic partners to achieve the targeted In-Country Value objectives.”  

Source: https://www.kbr.com/en

agreement

Adnoc’s $15 Billion Gas Pipeline Draws BlackRock, GIP Interest

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Global Infrastructure Partners and KKR & Co. are among suitors considering bidding for a stake in natural gas pipelines being sold by Abu Dhabi’s state-owned energy giant, people familiar with the matter said.

Australia’s IFM Investors Pty and Ontario Teachers’ Pension Plan are also weighing offers for a stake in Abu Dhabi National Oil Co.’s gas pipeline unit, according to the people. A deal could value the business at as much as $15 billion including debt, the people said, asking not to be identified because the information is private.

The oil giant expects to receive first-round bids in mid-February, the people said. Adnoc is seeking to sell as much as 49% of the business through a lease structure, according to the people.

Abu Dhabi, the capital of the United Arab Emirates, is among Persian Gulf oil producers that are opening up their operations to outside investment to attract fresh capital and diversify their economies. Adnoc has raised billions of dollars by bringing in partners for businesses including its refining unit and drilling business.

No final decisions have been made, and there’s no certainty the companies will proceed with firm offers for a stake in the Adnoc gas pipelines, the people said. Representatives for Adnoc, BlackRock, KKR and Ontario Teachers declined to comment. Representatives for IFM and GIP didn’t immediately respond to requests for comment.

KKR and BlackRock agreed last year to invest $4 billion in Abu Dhabi’s oil pipelines, securing two decades of guaranteed returns. The deal was the first investment by foreign asset managers in the infrastructure of a Middle Eastern government-owned oil producer. Singapore sovereign wealth fund GIC Pte also invested in the business later.

Source:https://bloom.bg/312fwk9

Adnoc750

Adnoc signs energy deals as UAE agrees $23bn investment in Indonesia

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Abu Dhabi National Oil Company signed a preliminary agreement with Indonesia’s Pertamina and Chandra Asri to explore the possibility of developing a crude-to-petrochemicals complex in the South East Asian nation in addition to potentially supplying naphtha, as the UAE agrees to invest $23 billion (Dh 83.68bn) in the country through a sovereign wealth fund being created by its President Joko Widodo.
The investment agreement by Adnoc is part of 11 business deals worth around 314.9 trillion Indonesian rupiah ($23bn), President Widodo announced on Twitter after he met Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces at the Qasr Al Watan Palace.



The UAE, the second-biggest Arab economy, plans to invest in Indonesia’s infrastructure and energy sectors, including projects such as the development of a new capital in Indonesia, Bloomberg reported citing a statement by the Indonesian cabinet secretariat on Monday. Japan’s SoftBank Group and the US International Development Finance Corporation are also eyeing taking part in the fund which is key in helping Indonesia meet its ambitious infrastructure programme, which requires more than $400bn of investment over the next five years.

The latest round of deals between the UAE and Indonesian firms follows $10bn to $15bn worth of agreements signed by companies such as Adnoc, Mubadala Investment Company and port operator DP World during a visit by Sheikh Mohamed to Jakarta last year.



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Adnoc LNG Signs Supply Agreements With BP and Total

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Adnoc LNG announced that it has concluded supply agreements with subsidiaries of BP and Total, booking out the majority of its LNG production through the first quarter of 2022.

With these new supply agreements, Adnoc LNG has shown that it can react quickly and decisively to changing market conditions while ensuring the security and quality of delivery. With the support of its shareholders, ADNOC has maximized access to new markets with strong LNG growth potential.
Adnoc LNG currently produces about 6 million tons per annum of LNG from its facilities on Das Island off the coast of Abu Dhabi, supplying 90 per cent of its LNG molecules to a range of clients and receiving terminals in more than eight countries across southern and southeast Asia including India, China, South Korea and Taiwan.

Adnoc LNG is majority-owned by Adnoc, which has a 70 percent share of the company. Additional shareholders are Mitsui & Co (15%), BP (10%), and Total (5%).
BP is delighted to have concluded this LNG supply agreement” said Robert Lawson, COO Gas, Integrated Supply and Trading, BP. “ADNOC LNG is a longstanding supplier to BP’s integrated supply and trading business. We are very pleased to have secured this new multi-year supply agreement.

Source: https://www.adnoc.ae/