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
  • Consortiums prepare bids for Al-Khairan phase one IWPP

    14 May 2026

     

    Two developer consortiums are finalising bids for the first phase of Kuwait’s Al-Khairan independent water and power producer (IWPP) project, the deadline for which has been extended to 1 June.

    The facility will have a capacity of 1,800MW and 150,000 cubic metres a day of desalinated water. It will be located in Al-Khairan, adjacent to the Al-Zour South thermal plant. 

    The project is expected to run on Low Sulphur Fuel Oil (LSFO) as the primary fuel and to accommodate crude oil, gas oil, and natural gas as backup fuels. Later phases will further expand capacity.

    The main contract was tendered last September. Three consortiums and two individual companies were previously prequalified to participate, with the following groups currently preparing offers:

    • Abu Dhabi National Energy Company (Taqa) / A H Al-Sagar & Brothers (Saudi Arabia) 
    • Acwa (Saudi Arabia) / Gulf Investment Corporation (Kuwait)

    The two individual companies, Sumitomo Corporation (Japan) and Nebras Power (Qatar), are now “unlikely” to submit a bid, according to a source close to the project.

    It is also understood that the third consortium of China Power, Malakoff International (Malaysia) and Abdul Aziz Al-Ajlan Sons (Saudi Arabia) is no longer bidding for the contract.

    The project is being procured by the Kuwait Authority for Partnership Projects (Kapp) and the Ministry of Electricity, Water & Renewable Energy (MEWRE).

    The Al-Khairan IWPP project is part of Kuwait’s long-term plan to expand power and water production capacity through public-private partnerships (PPPs).

    The winning bidder will sign a set of PPP agreements covering financing, design, construction, operation and transfer of the project.

    The energy conversion and water purchase agreement is expected to cover a 25-year supply period.

    Upcoming awards

    Kuwait is also preparing to offer a contract to develop zone one of the third phase of the Al-Dibdibah power and Al-Shagaya renewable energy project.

    In January, three consortiums submitted bids for a contract to develop Kuwait’s first utility-scale solar photovoltaic (PV) plant.

    The Al-Dibdibah power and Al-Shagaya renewable energy phase three, zone one independent power project (IPP) will have a total power-generating capacity of 1,100MW.

    MEED understands that the preferred bidder announcement will happen after the bid closes for zone two of the third phase of the Al-Dibdibah power and Al-Shagaya renewable energy project.

    The PPP authority is procuring the 500MW solar photovoltaic IPP in partnership with the ministry.

    The bid deadline for this project was recently extended to 31 May.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16835649/main.jpg
    Mark Dowdall
  • Bidders compete for new Dubai Metro line project

    14 May 2026

     

    Register for MEED’s 14-day trial access 

    Dubai’s Roads & Transport Authority (RTA) has held a pre-bid meeting for the Dubai Metro Airport Express Line with consultants understood to be competing for work on the project.

    It is understood that the RTA has requested firms to form joint ventures for the project. The firms that attended the meeting include:

    • Aecom (US)
    • Arup (UK)
    • ARX (Switzerland)
    • AtkinsRealis (Canada)
    • DB (Germany)
    • Egis (France)
    • Jacobs (US)
    • Mott Macdonald (UK)
    • Parsons (US)
    • Sener (Spain)
    • Surbana Jurong (Singapore)
    • Systra (France)
    • WSP (Canada)

    The consultancy contract covers the study and design of the Airport Express Line, which will extend from the Al-Garhoud area of the city to Al-Maktoum International airport (DWC) in the Jebel Ali area. The proposed line will stretch about 55 kilometres (km) and include five stations, providing passengers with facilities such as remote airline check-in, baggage drop-off and security screening.

    Consultants have been allowed until June to submit their proposals.

    The new line will run from the Red Line metro station at Dubai International airport through Al-Jaddaf, along Al-Khail Road to a new station at Jumeirah Village Circle (JVC) before continuing on to DWC.

    There will be two spur lines. The first will run from the new JVC station to the Al-Fardan Exchange metro station at Emirates Golf Club, while the second will branch out towards Business Bay, where another station will be built.

    The new line appears to follow a similar route to the Etihad Rail high-speed railway project, which is now under construction and due to be completed by 2030.

    Route 2020 extension

    The Airport Express Line scheme is the latest metro project to be tendered by the RTA this year. Tendering activity is already ongoing for the Route 2020 extension, which will start from the Expo 2020 metro station and connect to DWC’s West Terminal.

    In April, MEED exclusively reported that consultants had submitted bids for the project.

    The extension to the line will run for about 3km and will feature two stations.

    The existing Route 2020 metro link is a 15km-long line that branches off the Red Line at Jebel Ali metro station. The line comprises 11.8km of elevated tracks and 3.2km of tunnels, and has five elevated stations and two underground stations.

    The RTA awarded the AED10.6bn ($2.9bn) design-and-build contract for the project to a consortium of Spain’s Acciona, Turkiye’s Gulermak and France’s Alstom in 2016.

    Gold Line

    Dubai’s plans for its metro network do not stop with connecting the extension of the Route 2020 metro line to DWC. There are long-term plans for further extensions.

    In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the upcoming Dubai Metro Gold Line project, also known as Metro Line 4.

    The Gold Line will start at Al-Ghubaiba in Bur Dubai. It will run parallel to – and alleviate pressure on – the existing Red Line, before heading inland to Business Bay, Meydan, Global Village and residential developments in Dubailand.

    The existing network includes the Red and Green lines of the Dubai Metro and the Dubai Tram, which connects Al-Sufouh and Dubai Marina to the metro network. The last rail project to start operations in Dubai was the Red Line extension that opened for Expo 2020.

    There are also existing and planned rail lines connecting Dubai to other emirates that are being developed and operated by Abu Dhabi-based Etihad Rail. These include passenger and freight services, as well as a high-speed rail connection.

    Blue Line

    In December 2024, the RTA awarded a AED20.5bn main contract for the Dubai Metro Blue Line project to a consortium of Turkish firms Limak Holding and Mapa Group and the Hong Kong office of China Railway Rolling Stock Corporation.

    The Blue Line consists of 14 stations, including three interchange stations at Jaddaf, Rashidiya and International City 1, as well as a station in Dubai Creek Harbour.

    By 2040, the number of daily passengers on the Blue Line is projected to reach 320,000. It will be the first Dubai Metro line to cross Dubai Creek, doing so on a 1,300-metre viaduct.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16833450/main.jpg
    Colin Foreman
  • Local firm wins $100m Kuwait substation contract

    14 May 2026

     

    The local Al-Ahleia Switchgear Company has won an engineering, procurement and construction contract for a $100m substation project in Wafra in Kuwait’s Al-Ahmadi Governorate.

    According to a source, the firm has been appointed as the contractor for the Wafra 2Z substation 400/132/33kV project, with construction scheduled for completion in January 2029.

    The contract was awarded by US-headquartered Chevron, which is undertaking its first major power project in Kuwait, according to data from MEED Projects.

    It is understood that contractor bids for the project were first submitted in 2023 by National Contracting Company (Kuwait), Al-Ahleia Switchgear (Kuwait), Imco Engineering & Construction Company (Kuwait) and Larsen & Toubro (India).

    The tender was cancelled in 2024, and a new tender was issued last year.

    In April, Al-Ahleia Switchgear won a contract to build a 400/132/11kV substation at the South Surra township for Kuwait’s Public Authority for Housing Welfare.

    The firm also recently won a separate contract in Oman for the supply, installation, execution and maintenance of a main power substation.

    The contract was awarded by Oman’s Public Authority for Social Insurance as part of its affordable housing project, known locally as Al-Masaken Al-Muyassara.

    According to MEED Projects, Chevron owns about $11.2bn-worth of operational oil and gas projects across the Middle East and Africa. It also owns four major power generation projects in Saudi Arabia, valued at $810m.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16832909/main.jpg
    Mark Dowdall
  • Al-Ain breaks ground on Four Seasons Saadiyat

    14 May 2026

    Al-Ain Asset Management has held a groundbreaking ceremony for its Four Seasons Private Residences Abu Dhabi project at Saadiyat Beach.

    Due for completion in 2029, the gated beachfront scheme will comprise 116 ultra-luxury homes with direct beach access. The unit mix includes villas, beachfront mansions, suites and penthouses, alongside a range of bespoke amenities and Four Seasons-branded services, Wam reported.

    Al-Ain Asset Management said the majority of the residences have been sold, and that AED250m ($68m) of new villa sales were recorded within one week, underlining demand for ultra-prime homes in Abu Dhabi.

    The developer added that the development set new pricing benchmarks for the emirate’s luxury coastal real estate, achieving prices above AED14,000 a square foot. Total sales have exceeded AED4bn since the project launched less than a year ago.

    The groundbreaking ceremony was attended by senior leadership and key partners, including Four Seasons, Killa Design and Mirage Leisure & Development. LW Design Group is also involved in the development.

    Al-Ain Asset Management is also developing another residential scheme on Saadiyat Island. The Vida Residences development will comprise apartment units geared towards long-stay living, supported by hotel-style facilities and operational spaces. Mimar Architecture & Engineering is working as the consultant.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16833035/main.jpeg
    Colin Foreman
  • Aldar acquires Dubai Studio City development

    14 May 2026

    Abu Dhabi-based developer Aldar has acquired a residential and community retail development in Dubai Studio City from Dubai-based developer SRG for AED1.1bn ($300m).

    The deal is part of Aldar’s long-term strategy to build a high-quality, recurring-income portfolio and to scale its presence in the city.

    Scheduled for delivery in 2028, the project comprises six mid-rise buildings with 312 homes, including one-, two- and three-bedroom apartments and duplexes. It also includes a community mall with retail, leisure and food-and-beverage offerings, as well as a 16,000-square-metre park.

    “Dubai is a priority growth market for Aldar, and this acquisition reflects our belief in the city’s residential market and the central role that institutionally owned, professionally managed rental housing plays in meeting the needs of a growing population,” said Jassem Saleh Busaibe, CEO of Aldar Investment. 

    “Dubai Studio City’s established infrastructure, vibrant community and strong connectivity make it an excellent location for a high-quality, professionally managed living environment. This transaction is the latest step in a deliberate and broadening strategy to build a diversified portfolio of income-generating assets in Dubai, one that we expect to continue growing as the city attracts increasing global interest and talent,” he added. 

    The transaction expands Aldar’s activities in Dubai across a range of property types. Aldar Investment’s recurring-income portfolio in the emirate now includes residential, commercial, logistics and mixed-use assets. Key holdings include a mixed-use joint venture with Expo City Dubai, a signature office tower in Dubai International Financial Centre, a Grade A office building on Sheikh Zayed Road, and logistics facilities in National Industries Park and Dubai South.

    On the development front, Aldar’s partnership with Dubai Holding continues to gain traction, with three master-planned residential communities already launched and a pipeline exceeding 2.3 million sq m of new gross floor area. 

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16832033/main.jpg
    Colin Foreman