UAE’s energy giant Adnoc said it has awarded drilling contracts worth about $2 billion for the Hail and Ghasha sour gas project.
Adnoc Drilling won two contracts worth about $2 billion for integrated drilling services and fluids, and for the provision of four island drilling units, according to a statement by Adnoc.
In addition, Adnoc Logistics & Services won a contract worth $681 million for the provision of offshore logistics and marine support services.
The Hail and Ghasha project is part of the Ghasha concession which Adnoc claims is the world’s largest offshore sour gas development.
Adnoc expects to launch production from the concession 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.
The firm said it has already completed four artificial islands while development drilling is underway.
“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,” Sultan Ahmed al Jaber, CEO of Adnoc said in the statement.
LNG expansion
Adnoc says it 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 its LNG capacity.
The firm owns a 70 percent stake in Adnoc LNG, that currently produces about 6 mtpa of LNG from its facilities on Das Island off the coast of Abu Dhabi.
Besides this terminal, Adnoc is also working on the second LNG export plant in Fujairah.
According to Adnoc, the Fujairah LNG terminal would have two 4.8 mtpa LNG trains, boosting the company’s LNG production capacity by 9.6 Mtpa, as it looks to respond to the growing global demand for natural gas.
This year, its unit Adnoc Logistics & Services placed orders for a total of five 175,000-cbm LNG carriers at China’s Jiangnan Shipyard.