meed-logo

line1 line2 line3
SIGN IN / REGISTER

Firms express interest in new Hail and Ghasha phase

22 May 2023

 

Register for MEED's guest programme 

Contractors have expressed interest in tendering for new engineering, procurement and construction (EPC) contracts for Abu Dhabi National Oil Company’s (Adnoc’s) multibillion-dollar Hail and Ghasha sour gas development.

Adnoc started a fresh EPC tendering round for the project on 29 April. Contractors were issued expression of interest (EoI) documents just days after the cancellation of the pre-construction services agreements (PCSAs) that had been awarded in January.

Firms were initially asked to express interest in the new EPC tendering round by 14 May. According to sources, the deadline was extended until 19 May and firms submitted EoIs by that date.

The new EoI document details Adnoc’s latest EPC execution strategy for the Hail and Ghasha development. Under these plans, the offshore and onshore scope of work has been divided into three packages:

  • Package one: Subsea pipelines, umbilicals, cables, risers and other offshore structures
  • Package two: Offshore drilling centre facilities, the Ghasha offshore processing plant and central living quarters
  • Package three: The Manayif onshore processing plant, including offsite export pipelines and tie-ins, utilities, the main control building and process buildings. Work on a Ruwais sulphur-handling terminal and other non-process buildings is an optional scope for this package.

An Adnoc spokesperson previously told MEED: “Adnoc and our international partners remain committed to delivering the gas mandated from the Ghasha concession. We do not comment on market speculation.”

PCSAs cancelled

The PCSAs signed in January with two consortiums, comprising three contractors each, marked the start of detailed engineering work and procurement of critical long-lead items for the offshore and onshore scope of work on the Hail and Ghasha development.

A consortium of France-headquartered Technip Energies, South Korean contractor Samsung Engineering and Italy’s Tecnimont was awarded the PCSA for the onshore package. The contractors revealed the value of the contract to be approximately $80m.

Italian contractor Saipem, Abu Dhabi’s National Petroleum Construction Company (NPCC) and state-owned China Petroleum Engineering & Construction Company (CPECC) won the PCSA for the offshore package, worth $60m.

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

The offshore PCSA covered installing offshore platforms, gas compression facilities and more than 400 kilometres of subsea pipelines.

The reason for these PCSAs being annulled is unclear, but sources previously said the cost estimates submitted for the project were higher than the client’s overall budget.

Protracted project timeline

The cancelled PCSAs were part of an early engagement process with contractors that Adnoc started following the termination of at least two earlier bidding rounds.

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

Following the submission of commercial bids in early 2021, Adnoc made 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.

The four original EPC packages were consolidated into two integrated offshore and onshore packages, thought to be worth as much as $5bn and $5.5bn, respectively, based on the previous version of the project.

MEED reported in September last year that early engagement contractors had submitted proposals for the detailed engineering work on the Hail and Ghasha development. The January PCSAs are understood to have been issued based on these proposals.

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 to execute 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 to provide four island drilling units. Their duration is 10 years.

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

https://image.digitalinsightresearch.in/uploads/NewsArticle/10872981/main2245.jpg
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • Houthi truce collapse widens Gulf risk map

    15 July 2026

    Register for MEED’s 14-day trial access 

    The Houthis’ declaration ending the de facto truce with Saudi Arabia has significantly increased the likelihood of renewed attacks on Red Sea shipping and regional infrastructure, broadening the threat environment beyond the Strait of Hormuz.

    S&P Global Market Intelligence says the 13 July exchange is best understood as a potential widening of the renewed US-Iran escalation cycle into the Yemen and Red Sea theatres.

    Houthi claims that Saudi Arabia was responsible for a strike on Sanaa International airport have not been independently confirmed. Saudi Arabia had not formally commented at the time the analysis was written.

    The Yemeni militant group is likely to use the incident as a trigger that allows it to justify renewed military action while aligning with Iran’s wider effort to impose costs on US and Gulf interests, according to the research firm.

    The decision to declare an end to de-escalation with Riyadh materially increases the likelihood of further missile and unmanned aerial vehicle (UAV) activity against infrastructure near the Yemen-Saudi border, as well as renewed pressure on maritime routes in the Red Sea and Bab Al-Mandab.

    Aviation exposure

    The resumption of direct hostilities broadens the range of vessels and ports likely to be subject to Houthi targeting, and presents severe risk to airports and stationary aircraft, S&P Global Market Intelligence says.

    While the Houthis would probably not intentionally down civilian aircraft, there is a significant risk to aircraft in flight, particularly at lower altitudes close to airports, due to incoming UAVs and missiles and interceptor activity.

    The broader risk is to regional logistics rather than any single target set, the analysis says.

    If escalation around the Strait of Hormuz coincides with renewed Houthi activity in the southern Red Sea, Bab Al-Mandab and the Gulf of Aden, commercial operators face a more complex dual-chokepoint environment, with the added likelihood that the Houthis will seek to target Hormuz bypass infrastructure across the Gulf.

    That would raise the likelihood of shipping delays, higher insurance costs, more conservative routing decisions and greater interest in alternative corridors or bypass routes.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17680608/main.jpg
    Colin Foreman
  • Saudi Downtown awards Al-Khobar infrastructure deal

    15 July 2026

    Register for MEED’s 14-day trial access 

    Saudi Downtown Company, a wholly owned subsidiary of the Public Investment Fund (PIF), has awarded a contract for infrastructure works in downtown Al-Khobar.

    The contract was awarded to local contractor Ansab General Contracting Company.

    The scope of work includes the design and development of overall infrastructure, road networks and street lighting for the downtown Al-Khobar project.

    Saudi Downtown Company was officially launched in 2022 by Saudi Crown Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud, who is also chairman of PIF.

    At the time, the company announced plans to develop downtown areas in 12 cities across the kingdom: Medina, Al-Khobar, Al-Ahsa, Buraidah, Najran, Jizan, Hail, Al-Baha, Arar, Taif, Dumat Al-Jandal and Tabuk.

    SDC’s mandate is to develop more than 10 million square metres of land across its projects

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17677176/main.jpg
    Yasir Iqbal
  • Saudi Arabia opens third round of gas-fired IPPs

    15 July 2026

    Register for MEED’s 14-day trial access 

    Principal buyer Saudi Power Procurement Company (SPPC) has opened the qualification process for the third round of conventional independent power projects (IPPs) using combined-cycle gas turbine (CCGT) technology.

    The round is being tendered under the supervision of the Ministry of Energy. Each plant will be built with provision for carbon capture unit readiness, allowing the technology to be deployed at a later stage.

    Each project will be developed on a build-own-operate (BOO) basis, with the winning consortium taking 100% equity in a special purpose vehicle (SPV) set up to develop and operate the plant.

    Each SPV will sign a power purchase agreement with SPPC, which is licensed by the Saudi Electricity Regulatory Authority (SERA) to prepare preliminary studies, tender and award IPPs, and purchase electricity from energy projects in the kingdom.

    The programme forms part of Saudi Arabia’s Circular Carbon Economy approach, which underpins the energy sector element of the Vision 2030 strategy. Riyadh is displacing liquid fuels with natural gas in power generation to cut emissions intensity, while designing new plants so that carbon capture equipment can be retrofitted in support of national emissions targets.

    In April, Acwa and Saudi Energy (formerly Saudi Electricity Company) signed a 31-year power purchase agreement (PPA) with SPPC for the Rabigh 2 IPP expansion.

    The project involves the development of a CCGT plant in the Mecca region. It will have a total capacity of 2,313.5MW.

    The contract is valued at SR11.5bn ($3.07bn), the companies said in separate stock exchange filings.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17676286/main.jpg
    Colin Foreman
  • Dubai selects contractor for Al-Maktoum airport people mover

    15 July 2026

     

    Register for MEED’s 14-day trial access 

    Dubai Aviation Engineering Projects (DAEP) has selected a contractor to deliver the automated people-mover system as part of the first phase of the $35bn expansion of Al-Maktoum International airport.

    A team of Japan’s Mitsubishi Corporation and Indian contractor Larsen & Toubro is the selected contractor.

    The automated people-mover system will serve as a critical facility for operations at Al-Maktoum International airport. The system will run under the apron of the entire airfield and the airport’s terminals. It will consist of multiple tracks, taking passengers from the terminals to the concourses.

    Four underground stations will be built as part of the first phase. The overall plan includes 14 stations across the airport.

    The firms submitted the bids for the project in July last year, as MEED exclusively reported.

    The contract is the latest in a series of awards signed by DAEP recently. DAEP has awarded contracts valued at about AED13bn, with construction works currently under way on several airport packages.

    These include enabling works, the second runway, and the initial structural foundations for passenger terminals and gates.

    Upcoming awards

    In June, DAEP said that it will award contracts worth over AED55bn ($15bn) by the end of this year for construction works at Al-Maktoum International airport.

    The projects slated for contract awards include the substructure works for the Western Passenger Terminal, the fourth aircraft concourse building and the baggage handling system, in addition to the superstructure works for the Western Passenger Terminal and the first, second and third aircraft concourses.

    The packages also encompass long-span structural frameworks for buildings covering about 1.5 million square metres (sq m), infrastructure works for the southern airfield area, and power generation and district cooling plants supporting the construction programme.

    The award of the facade and roofing packages is also planned for this year.

    Construction progress

    In May last year, MEED exclusively reported that DAEP had awarded a AED1bn ($272m) deal to UAE firm Binladin Contracting Group to construct the second runway at the airport.

    The enabling works on the terminal were awarded to Abu Dhabi-based Tristar E&C.

    Construction on the project’s first phase is expected to be completed by 2032.

    Construction on substructure works began in November last year, when DAEP formally selected a contractor to deliver the package.

    The government approved the updated designs and timelines for its largest construction project in April 2024.

    In a statement, the authorities said the plan is for all operations from Dubai International airport to be transferred to Al-Maktoum International within 10 years.

    According to an official description on DAEP’s website, the expanded airport’s West Terminal will be a seven-level, 800,000 sq m facility with an annual capacity of 45 million passengers.

    It will be the second of three terminals at Al-Maktoum International airport.

    In September 2024, MEED exclusively reported that a team comprising Austria’s Coop Himmelb(l)au and Lebanon’s Dar Al-Handasah had been confirmed as the lead masterplanning and design consultants on the expansion of Al-Maktoum airport.

    The airport’s construction is planned to be undertaken in three phases. The airport will cover an area of 70 square kilometres south of Dubai and will have five parallel runways and 430 aircraft gates.

    It will be five times the size of the existing Dubai International airport and will have the world’s largest passenger-handling capacity of 260 million passengers a year. For cargo, it will have the capacity to handle 12 million tonnes a year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17674721/main.png
    Yasir Iqbal
  • Chinese contractor wins Kuwait investment authority HQ

    15 July 2026

    Register for MEED’s 14-day trial access 

    Beijing-headquartered China State Construction Engineering Corporation (CSCEC) has won a contract to build the permanent headquarters of the Kuwait Direct Investment Promotion Authority (KDIPA).

    The contract covers the construction of a 275-metre, 55-storey office tower located in Kuwait City’s Sharq district. The project is expected to be completed by 2028.

    According to results published on the Kuwait Central Agency for Public Tenders (Capt) website, the firm initially submitted a bid of $233m, as MEED reported in January. The tender was issued on 19 October 2025 and bids were submitted on 18 November, MEED reported.

    The contract is the latest in a series of high-profile projects signed by CSCEC in the GCC region this year. Last month, it won a contract to deliver the Janadriyah cultural district at Qiddiya entertainment city on the outskirts of Riyadh. The contract was awarded by gigaproject developer Qiddiya Investment Company (QIC).

    The scope covers the construction of six structures, including a heritage building, a gateway hotel, a wadi hotel, a creative hub, a community centre and an open-air market.

    In June, MEED exclusively reported that QIC had awarded CSCEC a contract to build a new transport hub at Qiddiya entertainment city.

    The project is located within the resort core zone of the development.

    Kuwait market overview

    UK analytics firm GlobalData expects Kuwait’s construction industry to average annual growth of 4.9% in 2026-29, supported by government investment in renewable energy and transport infrastructure.

    In September 2025, Kuwait’s government allocated KD1.3bn ($4.2bn) for 141 projects, as part of its capital spending during the fiscal year 2025-26. This allocation was intended for 162 current projects and 17 new projects.

    According to government data, as of September 2025, the country had around 300 active projects, valued at about KD35.3bn ($115bn), with large infrastructure projects making up nearly half of that total.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17674440/main.jpg
    Yasir Iqbal