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
  • Saudi drilling firm raises acquisition offer for Dubai rival

    16 September 2025

    Saudi Arabia-based ADES International Holding has increased its offer to buy Dubai-based, Oslo-listed rival Shelf Drilling to 18.50 Norwegian Krone ($1.88) per share, representing a 6% increase in the acquisition’s enterprise value.

    The offer was revised from an earlier deal of $1.42 per share or a total of $379.33m.

    ADES International Holding, a subsidiary of ADES Holding Company, signed a transaction agreement to acquire all issued and outstanding shares of Shelf Drilling through a cash merger, with ADES International Cayman (BidCo) also participating in the proposed merger.

    According to a joint statement, irrevocable commitments have now been provided by additional shareholders, including China Merchants, Anchorage Capital Group and Magallanes Value Investors, which, combined with ADES’ 17.9% stake in Shelf Drilling, represent 53.4% of the outstanding shares in the company.

    ADES International Holding raised its offer for Shelf Drilling after reassessing the company’s current market performance and revising its estimated annual cost synergies upwards by $10m, bringing the total to $50m-$60m.

    All other terms of the merger remain unchanged, along with the transaction timetable, with closing expected to occur in the last quarter of the year.

    Shelf Drilling is incorporated under the laws of the Cayman Islands, with its corporate headquarters in Dubai.

    In April this year, ADES International Holding secured a 10-year extension for one of its standard offshore jack-up rigs from Saudi Aramco, valued at approximately $290m.

    The contract for the offshore jack-up marks the re-entry of ADES International Holding into the Saudi offshore oil and gas market. The rig was among six jack-ups whose charters were suspended by Aramco last April.

    ADES International Holding has secured deployments for three of those jack-ups in Qatar, Thailand and Egypt, while the fourth was recently redeployed to Thailand.

    ADES International Holding also said it has increased its footprint since the start of 2025 by securing an offshore drilling job off the coast of Nigeria, marking its entry into West Africa.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14676037/main0952.jpg
    Indrajit Sen
  • Oman tenders Rusayl power cable project

    16 September 2025

    State-owned Oman Electricity Transmission Company (OETC) has opened bidding for the construction of the cable connection from the Rusayl power plant (GT-5 & GT-6) to the Rusayl industrial grid station.

    The tender is open to local companies with tender board registration and valid commercial registration, the authority said.

    Bids must be submitted electronically, with hard copies of the bid bond and other documents delivered to OETC’s head office in Muscat.

    The last date to obtain documents is 23 September, with bids due by 7 October. 

    The new cable tender forms part of OETC’s strategy to expand transmission in line with industrial growth. The Rusayl power plant, located near Muscat, is one of Oman’s key natural gas-fired generation facilities and supplies electricity to the Main Interconnected System (MIS), the country’s largest grid.

    The adjoining Rusayl Industrial City is a major manufacturing hub hosting companies across chemicals, textiles, electrical materials and food production, which has driven steady growth in power demand.

    OETC is undertaking several major transmission projects to reinforce the MIS. These include the construction of new 132kV grid stations, network reinforcements around Muscat and the Masirah Island interconnection, which is valued at about RO72m ($187m).

    Local firm Bahwan Engineering won the main contract for this project and started construction earlier this year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14675720/main.jpg
    Mark Dowdall
  • QatarEnergy awards contract for 2GW Dukhan solar plant

    16 September 2025

    State-owned petroleum firm QatarEnergy has signed an agreement with South Korea’s Samsung C&T to build a 2,000MW solar power plant in Dukhan, about 80 kilometres west of Doha.

    The plant will double Qatar’s solar generation capacity, supplying up to 30% of Qatar’s total peak electricity demand once complete. It will use a solar tracker system and inverters, capable of operating in high temperatures, to maximise efficiency.

    The project will be delivered in two phases and is expected to be fully operational by mid-2029.

    The first phase of the Dukhan solar plant will deliver 1,000MW of power to the Kahramaa grid by the end of 2028. 

    The agreement was signed by Saad Sherida Al-Kaabi, minister of state for energy affairs and QatarEnergy CEO, and Sechul Oh, president and CEO of Samsung C&T.

    Senior officials from Kahramaa and executives from both companies also attended the ceremony.

    Under QatarEnergy’s Sustainability Strategy, the country plans to generate more than 4,000MW of renewable energy by 2030.

    Qatar’s first utility-scale solar photovoltaic (PV) facility, the 800MW Al-Kharsaah solar independent power producer project, has been operational since 2022.

    In August 2022, Samsung C&T won contracts for two other solar PV plants with a total combined capacity of 875MW.

    One of the solar plants, which has a capacity of 458MW, is located in Ras Laffan. The other plant is located in Mesaieed and will have a capacity of 417MW.

    Construction work on both projects was completed earlier this year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14674775/main.jpg
    Mark Dowdall
  • Saudi firm awards $121m of housing construction contracts

    16 September 2025

    Saudi Arabian real estate developer Al-Majdiah has awarded construction contracts worth SR454m ($121m) for housing projects in Riyadh and Jeddah.

    The contracts were awarded to the local firm Tatweej Contracting.

    The two projects are part of Al-Majdiah’s portfolio in collaboration with the state-backed National Housing Company (NHC).

    In an official statement published on the Saudi stock exchange Tadawul, Al-Majdiah said the contract value for the Adeem Al-Fursan project in Riyadh is SR298m ($80m).

    The project comprises the construction of 540 villas and townhouses.

    The Al-Fursan development in northeast Riyadh spans over 35 million square metres (sq m) and includes over 50,000 residential units.

    The contract value for the Khayala 1 project in Jeddah is SR155m ($41m). The project includes the construction of 528 residential units.

    The Khayala development is located in north Jeddah and spans nearly 1.6 million sq m. It includes 3,680 residential units.

    The contracts have a scheduled completion period of 36 months.

    UK-based analytics firm GlobalData expects the construction industry in Saudi Arabia to grow by 4% in real terms in 2025, before recording an annual average growth of 5.4% from 2026 to 2029.

    The industry’s output in 2025 will be supported by allocations as part of the kingdom’s 2025 budget, which includes a total expenditure of SR1.3tn ($342.7bn) for 2025.

    The industry’s output over the remainder of the forecast period will be supported by investments in transport, electricity, housing and water infrastructure projects.

    The residential construction sector is expected to grow by 3.8% in real terms in 2025 before recording an annual average growth rate of 6.4% over the remainder of the forecast period, supported by public and private sector investments in the residential sector to address the national housing deficit.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14674464/main.jpg
    Yasir Iqbal
  • Oman LNG shortlists bidders for fourth liquefaction train

    16 September 2025

    Register for MEED’s 14-day trial access 

    Oman LNG has shortlisted contractors to bid for engineering, procurement and construction (EPC) works for a new processing train at its Qalhat liquefied natural gas (LNG) production complex in Sur.

    The LNG train will be the fourth at the Qalhat complex, located in the sultanate’s South Al-Sharqiyah governorate, Oman LNG announced last July. The new train will have an output capacity of 3.8 million tonnes a year (t/y) and is expected to be commissioned in 2029, raising Oman LNG’s total production capacity to 15.2 million t/y.

    According to sources, Oman LNG has issued the main EPC tender for the fourth LNG train project and invited the following contractors to submit bids:

    • Chiyoda (Japan) / Samsung C&T (South Korea)
    • JGC Corporation (Japan)
    • Saipem (Italy) / Daewoo Engineering & Construction (South Korea)

    MEED previously reported that Oman LNG hosted site visits in June for prequalified contractors, according to sources.

    Oman LNG has performed the preliminary engineering study for the planned fourth LNG train. It awarded US-headquartered KBR a contract to execute front-end engineering and design (feed) works on the project in November.

    Separately, in June, Oman LNG awarded Japan-based Kanadevia Corporation a contract to perform pre-feed work for a pilot methanation plant, and a detailed concept study for future commercial scaling of the facility.

    The proposed facility is expected to produce 18,000 normal cubic metres of e-methane an hour.

    The pilot plant will comprise three components: a seawater desalination unit, equipment for producing hydrogen via water electrolysis and a methanation system that combines hydrogen with captured carbon dioxide to produce e-methane.

    The agreement follows a memorandum of understanding that Oman and Japan signed in March 2024, covering collaboration in hydrogen, fuel ammonia and carbon recycling. 

    Oman LNG operations

    Oman LNG is a joint venture of the sultanate’s Ministry of Energy & Minerals, which holds the majority 51% stake, and foreign stakeholders.

    The remaining 49% is held by UK-based Shell (30%); France’s TotalEnergies (5.54%); South Korea’s Korea LNG (5%); Japan’s Mitsubishi Corporation (2.77%); Japan’s Mitsui & Company (2.77%); Thailand’s PTTEP, following the acquisition of Portuguese firm Partex (2%); and Japan’s Itochu Corporation (0.92%).

    Oman LNG presently operates three trains at its site in Qalhat, with a nameplate capacity of 10.4 million t/y. Following debottlenecking, total production capacity increased to approximately 11.4 million t/y.

    Oman LNG secured $2bn-worth of project financing in 1997 to set up its first LNG export terminal in the sultanate, the Qalhat LNG terminal, which was commissioned in 2000.

    On 1 September 2013, Qalhat LNG was integrated with Oman LNG to form a single entity.

    The terminal exports gas produced by state oil and gas producer Petroleum Development Oman from its central Oman gas field complex. Oman LNG’s customers are mainly based in Asia, although the company has been expanding its client base outside the continent in recent months.

    In April, Oman LNG announced the start of turnaround activities at the third LNG processing train, which has an output capacity of 3.3 million t/y. The third train commenced operations in 2006 and primarily processes gas produced at the Saih Nihayda field in central Oman.

    ALSO READ: TotalEnergies studies expansion of Marsa LNG project in Oman

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14674434/main0940.jpg
    Indrajit Sen