meed-logo

line1 line2 line3
SIGN IN / REGISTER

Contractors confirm Adnoc contracts for Hail and Ghasha

18 January 2023

Contractors have confirmed signing a pre-construction services agreement (PCSA) with Abu Dhabi National Oil Company (Adnoc) for the onshore scope of the Hail and Ghasha offshore sour gas field development.

France-headquartered Technip Energies, South Korean contractor Samsung Engineering and Italy’s Tecnimont, which have formed a consortium for the Hail and Ghasha onshore package, have issued statements about being awarded the PCSA. The contractors revealed the value of the contract to be approximately $80m.

The onshore work on the Hail and Ghasha scheme involves the construction of a gas process plant, pipeline network and new gas gathering units.

As part of the PCSA, the contractors are required to perform initial detailed engineering and procurement services of critical long lead items.

“The PCSA scope of work also includes the preparation of an open book cost estimate for the project delivery of the onshore scope, which will be considered as part of the client’s [Adnoc] final investment decision making process,” they said in their statements.

Under the terms of the other PCSA, Italian contractor Saipem, Abu Dhabi’s National Petroleum Construction Company (NPCC) and state-owned China Petroleum Engineering & Construction Company (CPECC) will work together on the offshore package, which covers the installation of offshore platforms, gas compression facilities and more than 400 kilometres of subsea pipelines.

The offshore contractors have confirmed the value of their PCSA with Adnoc to be $60m.

Project progress

MEED in September last year reported on contractors submitting proposals for the detailed engineering work on the Hail and Ghasha megaproject as part of an early engagement process.

The PCSAs Adnoc has signed with the two consortiums are understood to be based on the proposals received last year.

The early engagement process with contractors is expected to precede the start of the full engineering, procurement and construction (EPC) execution phase of the strategic scheme.

US engineering firm Bechtel completed the project’s original front-end engineering and design (feed) in 2019, with tenders for what were four EPC packages issued soon after.

However, following the submission of commercial bids in early 2021, Adnoc opted to make revisions to the feed as part of an optimisation process started by Technip Energies in November 2021.

The revised feed aimed to reduce the scheme’s overall capital expenditure, which was previously estimated to be as high as $15bn.

As part of the optimisation process, the four original EPC packages were consolidated into two integrated offshore and onshore packages, which are now estimated to be as high as $5bn and $5.5bn, respectively, as per sources and based on the previous version of the project.

Following the award of the PCSAs, the consortiums will get to work on the detailed design aspect of their respective packages, with the aim of putting together a final offer for the main EPC work on Hail and Ghasha.

The timing of the award of the final EPC contracts is unknown at this point, but considering the fast-track execution schedule Adnoc is known to have planned for the Hail and Ghasha project, it could be expected to take place before the end of this year.

Hail and Ghasha fields

The Hail and Ghasha fields, along with the Hair Dalma, Satah, Bu Haseer, Nasr, Sarb, Shuwaihat and Mubarraz fields, are located in Abu Dhabi’s offshore Ghasha concession.

Adnoc holds the majority 55 per cent stake in the Ghasha concession. The other stakeholders are Italian energy major Eni with 25 per cent; Germany’s Wintershall Dea with 10 per cent; and Austria’s OMV and Russia’s Lukoil, each with 5 per cent.

Adnoc plans to produce more than 1.5 billion cubic feet a day of sour gas from the Ghasha concession by the middle of this decade. This target is aligned with the company’s broader goal of achieving gas self-sufficiency for the UAE by 2030.

In November 2021, Adnoc and its partners in the Ghasha concession awarded two EPC contracts for the Dalma offshore sour gas development project. Abu Dhabi’s NPCC and Spain-headquartered Tecnicas Reunidas won contracts worth $1.46bn for executing offshore and onshore EPC works on the Dalma project, respectively.

Four artificial islands have already been completed in the Ghasha concession, and development drilling is under way.

In addition, Adnoc awarded two contracts totalling $2bn to its subsidiary Adnoc Drilling in July last year for the Hail and Ghasha offshore sour gas field development project.

The awards comprise a $1.3bn contract for integrated drilling services and fluids, and a $711m contract for the provision of four island drilling units. Their duration is 10 years.

Adnoc also awarded a third contract, valued at $681m, to another subsidiary company, Adnoc Logistics & Services, to provide offshore logistics and marine support services for the planned Hail and Ghasha development.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10526349/main.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Aramco Stadium races towards completion

    12 November 2025

     

    The Aramco Stadium in Khobar is moving forward at an impressive pace as the fast-track project races towards completion in 2026

    The 47,000-seat stadium will be the new home for the Aramco-owned Al-Qadsiah Club and a key venue for the 2027 AFC Asian Cup and the 2034 Fifa World Cup. 

    The project’s progress stems from detailed planning and an accelerated delivery strategy. The project was conceived in May 2023, with the design process, managed by Aramco, commencing shortly thereafter. 

    “We completed the design within six months,” said Mohammed Subhi, the Aramco Stadium’s project manager.


    The project advanced quickly due to thorough planning and a fast-track delivery approach. Initiated in May 2023, the design phase—overseen by Aramco—was completed within six months

    An early engagement approach with the main contractor – a joint venture of Besix and Al-Bawani – was instrumental in maintaining momentum. This partnership began early in 2024, allowing for collaborative input on critical construction elements. 

    This upfront collaboration minimised pre-construction time, ensuring a rapid transition to site work.

    Engineering challenges

    The stadium’s architectural design, inspired by the natural whirlpools of the Gulf and featuring interwoven transparent sails, presents significant engineering challenges, particularly in the structural steel and façade work. For spectator comfort, the stadium is equipped with full cooling systems and designed to the highest international standards.

    Logistics management is another crucial facet of the project, which is located in central Khobar. With thousands of workers on site, the movement of materials is tightly controlled to minimise community disruption. 

    “We control how many trucks can enter the site and at what time. For example, we cannot cast concrete during the day. It has to be after 6pm, up until the early morning,” said Subhi.

    A key priority on site is health and safety, an area where the organisation’s legacy from its oil and gas operations is clearly visible. Subhi explains that the principle of health and safety is part of the company’s DNA and is embodied in the deployment of advanced technology and rigorous standards, which have collectively resulted in over 10 million safe working hours to date.

    The project employs a sophisticated Smart Safety Command Centre (SCC), which utilises artificial intelligence-based monitoring and 24/7 surveillance. One key feature of the centre is the crane collision prevention system – a key technological advancement in heavy machinery coordination and a first for the region. 

    “We have tower cranes and crawler cranes talking to each other. The anti-collision system means cranes talk to each other without human interference, and they automatically shut down when they are too close to each other,” said Subhi.


    A key technological advancement is the crane collision prevention system, which means the cranes talk to each other and shut down if they become too close

    In addition to ground operations, the project is leveraging aerial technology to mitigate risk in high-altitude work.

    “We have used drones for the inspection of the cranes and inspection of the steel structure itself to minimise the risk of working at height,” said Subhi.


    Drones have been adopted on-site to mitigate the risk of working at height

    Worker welfare

    The project’s commitment extends beyond mere regulatory compliance to comprehensive worker welfare, establishing a high standard for construction sites in the region. 

    With current staffing reaching approximately 11,000 direct and indirect workers, welfare provisions are a core priority, linking directly back to Aramco’s corporate standards.

    In a region where extreme heat is a constant challenge, the project has implemented advanced heat stress management protocols. This includes the installation of heat sensors with alarm systems, mandatory work stoppage during peak heat hours and regular briefings on heat exhaustion symptoms. Fully air-conditioned rest areas are provided for breaks and meals.

    Aramco is also committed to developing national talent. A significant proportion of the staff are young, and about 20% of the team are women.

    The relationship with the joint-venture contractor is defined by collaboration rather than traditional client-contractor hierarchy. “We are one team, working together,” said Subhi. This approach has fostered a cooperative environment that is accelerating the on-site progress towards the 2026 completion goal. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15073939/main.gif
    Colin Foreman
  • Oman signs PPA for 125MW Dhofar 2 wind project

    12 November 2025

    Singapore's Sembcorp Utilities and local firm OQ Alternative Energy (OQAE) have won a contract to develop the 125MW Dhofar 2 wind independent power project in Oman.

    The contract was awarded by state offtaker Nama Power & Water Procurement Company (Nama PWP) under a 20-year power purchase agreement (PPA).

    Under the PPA, Sembcorp and OQAE will form a joint venture to build, own and operate the wind farm, which will supply power to Nama PWP once operational.

    The equity split will give Sembcorp 75% and OQAE 25%, a source close to the project told MEED.

    Nama PWP said that it will allocate a portion of contracted works for the Dhofar 2 project to Omani small and medium-sized enterprises under its in-country value programme.

    The project is expected to begin commercial operations in the third quarter of 2027.

    The facility, valued at about OR43m ($112m), will be located on a 12-square-kilometre site in Dhofar Governorate.

    The project comprises 20 Windey WD200 turbines, each with a 6.25MW capacity. Each turbine stands 215 metres tall and will be connected to the national grid via a 400kV substation.

    The development will provide clean electricity to more than 18,000 homes and will cut carbon dioxide emissions by about 158,000 tonnes a year.

    It is also expected to generate about 396,754 megawatt-hours and free up around 76 million cubic metres of natural gas annually.

    Sembcorp has over 1.1GW of energy assets in Oman. In September, the firm signed a new 10-year power and water purchase agreement with Nama PWP for its Salalah independent water and power plant.

    According to Nama PWP, the offtaker has contracted 26 water and desalination plants, exceeding $11bn in investment, over the past 15 years.

    Chief energy transition officer at Nama PWP, Abdullah Bin Rashid Al-Sawafi, said the company "plans to attract a further $5bn over the next five years, mainly in renewable energy and storage technologies".

    This includes an extra 9GW of renewable energy capacity by 2030, representing 60% of total contracted capacity.

    Oman aims to have 30% of its electricity generation from renewable sources by the same year.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15073043/main.jpg
    Mark Dowdall
  • Hitachi wins Alexandria Raml tram systems deal

    12 November 2025

    Register for MEED’s 14-day trial access 

    Hitachi Rail has announced that it has won a contract related to the modernisation and upgrade of the Alexandria Raml tram network in Egypt.

    Hitachi Rail said it will deliver advanced signalling and communications systems, an operational control centre and supervisory control and data acquisition, security systems with CCTV cameras and access control, passenger information and on-board equipment.

    The contract was awarded by a joint venture of Hassan Allam and Arab Contractors.

    The project scope includes rehabilitating a 13.2-kilometre tram line, constructing a maintenance depot, developing elevated viaducts and upgrading 24 stations.

    The project will reduce journey times from 60 to 35 minutes by increasing the operational speed on the line from 11 kilometres an hour (km/h) to 21km/h. The project will also increase the hourly capacity from 4,700 to 13,800 passengers in each direction. 

    UK analytics firm GlobalData expects the Egyptian construction industry to grow by 6.5% in real terms in 2025, supported by investments in oil and gas, industrial and housing construction projects. According to the Central Bank of Egypt, the country’s average construction production index grew by 5.8% year-on-year in the first 10 months of 2024.

    GlobalData says the construction industry's output is expected to register an annual average growth rate of 8% in 2026-29, supported by investments in commercial, renewable energy and transport infrastructure projects, coupled with the government’s target of developing 10GW of renewable energy projects by 2028 under the Nexus of Water, Food and Energy Programme.

    The infrastructure construction sector is expected to expand by 4.4% in real terms in 2025 and record an annual average growth rate of 7% in 2026-29, supported by government plans to continue its spending on transport infrastructure, ports and terminals.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15073050/main.jpg
    Yasir Iqbal
  • Contract award nears for Al-Ula tram works

    12 November 2025

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Royal Commission for Al-Ula (RCU) is preparing to award the contract to build infrastructure for the tramway at the Al-Ula development.

    MEED understands that bid evaluation has reached advanced stages and the contract award is imminent.

    Contractors submitted revised bids for the scheme in August, as MEED reported.

    It is understood that consortiums were asked to propose self-funded financing arrangements for the project.

    The first phase of the tram scheme is a 22.4-kilometre-long line with 17 stations, operated by 20 trams. It will link Al-Ula International airport to five of the area’s historical regions.

    The scope of work includes the design and construction of a tram depot, tram tracks, technical buildings, station buildings and other associated infrastructure.

    In June, MEED exclusively reported that the RCU had asked firms to submit their final offers for a contract to build tramway infrastructure at the Al-Ula development.

    The RCU issued a request for proposals in June last year and received commercial bids for the project on 10 November.

    France’s Systra is the consultant.

    In October 2023, the RCU announced that France’s Alstom will supply rolling stock and systems for the Al-Ula tram scheme.

    The RCU unveiled an investment plan worth SR57bn ($15bn) to regenerate Al-Ula in April 2021. About $3.2bn has been allocated for infrastructure development, including the tram and renewable power generation.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15072614/main.jpg
    Yasir Iqbal
  • Contractors submit bids for $1.4bn Kuwait oil pipeline

    12 November 2025

    Register for MEED’s 14-day trial access 

    A low bid of KD419m ($1.4bn) has been submitted on an oil pipeline project in Kuwait, according to figures published by the country’s Central Agency for Public Tenders (Capt).

    The bid was submitted by local contractor Alghanim International General Trading & Contracting.

    The contract was tendered by state-owned upstream operator Kuwait Oil Company (KOC) and covers the construction of crude oil pipelines and associated works.

    The full list of bidders and prices is:

    • Alghanim International General Trading & Contracting – KD419m ($1.4bn)
    • Mechanical Engineering & Construction Company – KD422.5m
    • Al-Dar Engineering & Construction Company – KD425.7m
    • Combined Group Contracting Company – KD502m
    • Heisco – KD506.1m
    • Sayed Hameed Behbehani & Sons – KD674m

    Kuwait is trying to boost project activity in its upstream sector.

    The country’s national oil company, Kuwait Petroleum Corporation, is aiming to increase oil production capacity to 4 million barrels a day (b/d) by 2035.

    In August, Kuwait announced that it was producing 3.2 million b/d.

    Earlier this month, KOC said it was planning to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15072150/main.jpg
    Wil Crisp