MAIRE awarded $8.7 billion contract by ADNOC for the the HAIL and GHASHA development project

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MAIRE announced that Tecnimont a part of the Integrated E&C Solutions business unit, signed a Letter of Award with ADNOC for the onshore processing plant of the Hail and Ghasha Development Project. The award was signed at ADIPEC, the world’s largest energy summit.

The Hail and Ghasha project is aimed to operate with net zero CO2 emissions, in part due to the facility’s CO2 carbon capture and recovery units, which will allow the capture and storage of CO2.

The overall EPC contract value is approximately USD 8.7 billion and project completion is expected during 2028. The scope of work includes two gas processing units, three sulphur recovery sections, the associated utilities and offsites as well as export pipelines. Tecnimont will also leverage the competences of MAIRE’s Sustainable Technology Solutions division to develop innovative digital solutions aimed at reducing emissions and optimizing energy consumption, allowing a significant efficiency of the plant in terms of opex and capex.

The engineering and procurement activities will be executed by several dedicated teams in Europe, India and the UAE, under the central coordination of MAIRE’s Milan headquarters. In particular, MAIRE’s UAE procurement hub will ensure the maximization of the local suppliers’ involvement, aimed at providing significant value to the local economy.

MAIRE has been active in the UAE since the late ‘90s, with several strategic projects in the Country for an overall total value of approximately USD 17 billion, starting from the first polyolefin plant completed in 2001 (Borouge 1). Additionally, the Group can leverage on a world class track record and experience in delivering large gas treatment plants and sulphur recovery projects.

Alessandro Bernini, MAIRE Group CEO, commented: “Today we have been awarded the largest contract ever for the MAIRE Group, a multi-billion-dollar project which will significantly boost the delivery of our 10-year strategic plan. We are honored to have achieved this great result with a leading global player such as ADNOC, as it represents further evidence of the strength of our long-lasting and fruitful relationship. This award, a landmark recognition of Made in Italy Engineering, is a demonstration not only of our leadership in sulphur recovery and in gas treatment plants but, more broadly, of our undisputed execution capabilities as well as our technological expertise in designing carbon-free industrial solutions.”

Source: Maire Tecnimont

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