meed-logo

line1 line2 line3
SIGN IN / REGISTER

Hail and Ghasha galvanises UAE upstream market

12 October 2023

This package on the UAE’s upstream sector also includes: 

> Adnoc seeks commercial bids for Upper Zakum
> Adnoc Onshore awards Sahil field upgrade contract
> Dubai-owned Dragon Oil to boost production in Egypt and Iraq
> Oil and gas players at Adipec strive for net-zero goals
> Adnoc awards $17bn EPC contracts for Hail and Ghasha
> Dana Gas makes changes to leadership

 

The UAE has made a giant leap towards becoming self-sufficient in natural gas production with Abu Dhabi National Oil Company's (Adnoc's) final investment decision on the Hail and Ghasha offshore sour gas project.

Adnoc and its partners in the Ghasha concession awarded contracts worth $16.94bn in early October for engineering, procurement and construction (EPC) works on the Hail and Ghasha project.

The investment represents the largest-ever capital expenditure (capex) on an oil and gas project in the UAE. As such, it will have a galvanising, trickle-down effect on the UAE oil and gas supply chain.

Hail and Ghasha programme

The Hail and Ghasha fields are part of Abu Dhabi’s Ghasha concession, which is expected to produce more than 1.5 billion cubic feet a day (cf/d) of gas before the end of this decade.

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.

A consortium of Abu Dhabi’s National Petroleum Construction Company (NPCC) and Italian contractor Saipem was awarded the project's offshore engineering, procurement and construction (EPC) package. Its value is $8.2bn, with Saipem declaring its share to be worth $4.1bn.

The scope of work broadly involves the EPC of offshore facilities, including facilities on artificial islands and subsea pipelines.

Italy-headquartered Tecnimont was awarded the onshore EPC contract. The $8.74bn contract relates to the EPC of onshore facilities, including carbon dioxide (CO2) and sulphur recovery and handling.

The Hail and Ghasha project was initiated by Adnoc in 2018, with at least three EPC tendering rounds since. Its size and scope made it a vastly strategic proposition, hence shelving the gas production programme was not an option. 

Through achieving the FID and awarding close to $17bn-worth of EPC contracts, Adnoc and its Ghasha concession partners have demonstrated the project's importance in ensuring the UAE is self-sufficient in gas by 2030.

NEWS FROM ADIPEC:
> Adnoc doubles 2030 carbon capture target
> Adnoc Gas awards $615m carbon capture contract
> Adnoc and Oxy to study direct air capture project
> Firms bid for Abu Dhabi airport tank farms project
> Sharjah and Ras al-Khaimah sign gas storage deal
Oil production push

Adnoc is also accelerating projects deemed vital to reaching its goal of 5 million barrels a day (b/d) of oil production potential by 2027, a target that has been brought forward from 2030.

Raising output from Abu Dhabi’s offshore oil fields is necessary for Adnoc to increase its overall crude production capacity. With this in mind, the Abu Dhabi energy giant has committed capex to key projects to raise output from the Upper Zakum and Lower Zakum offshore hydrocarbon concessions.

Through the UZ1000 project, Adnoc Group subsidiary Adnoc Offshore aims to grow oil production from Upper Zakum to 1.2 million b/d.

The main work scope involves the EPC of multiple surface facilities and plants at the Upper Zakum offshore development’s four main artificial islands of Al-Ghallan, Umm al-Anbar, Ettouk and Asseifiya – also known as Central Island, West Island, North Island and South Island, respectively.

Contractors submitted technical bids for EPC works on the Upper Zakum oil production increment project by 5 June. Adnoc Offshore has set a deadline of 23 October to submit commercial bids for the project.

Separately, Adnoc Offshore has undertaken a couple of projects to increase oil and gas production from the Lower Zakum field in Abu Dhabi’s waters.

Adnoc Offshore and its partners in the Lower Zakum concession intend to sustain oil production from the asset at its current level of 450,000 b/d until 2025, and then increase output to 470,000 b/d. This target will be achieved through the Lower Zakum early production scheme 2 (EPS 2) and proved developed producing (PDP) project.

Contractors submitted technical bids for the EPC works on the Lower Zakum EPS 2/PDP project by 11 September. While the EPS 2/PDP project is anticipated to increase the Lower Zakum concession’s oil production potential to 470,000 b/d by 2027, Adnoc Offshore’s larger, longer-term objective is to raise the asset’s output capacity to 520,000 b/d by 2027 and maintain that level until 2034.

This strategic goal will be accomplished through the Lower Zakum Long-Term Development Plan (LTDP-1) project. Front-end engineering and design (feed) work is progressing on the Lower Zakum LTDP-1 project and is being performed by France’s Technip Energies.

Onshore oil output

Adnoc Onshore, meanwhile, has started a slew of projects to spike crude output from fields such as Asab, Bab, Northeast Bab, Bu Hasa, Mender, Qusahwira, Sahil and Shah.

An EPC contract, estimated to be worth more than $300m, for the third development phase of the Sahil oil field was recently awarded by Adnoc Onshore to local contractor Target Engineering Construction Company.

Another project being pursued by Adnoc Onshore relates to the conversion of wells and installation of associated tie-ins at the southeast cluster of oil fields in Abu Dhabi. The EPC scope of work has been divided into two packages, with technical bids submitted by contractors in August.

Increasing production from Abu Dhabi’s onshore fields, some of which have been in operation since the 1960s, is equally crucial for Adnoc to hit its 5 million b/d by 2027 target. The capacity enhancement projects that Adnoc Onshore has been advancing indicate the importance its parent entity attaches to maintaining and raising output from its onshore assets.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11205562/main.jpg
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • UAE and Turkiye ties deepen

    4 July 2025

    Commentary
    Colin Foreman
    Editor

    Read the July issue of MEED Business Review

    The growing trade volumes between the UAE and Turkiye involve a mix of competition and collaboration across various sectors. 

    One area of competition is aviation. Turkish Airlines has emerged as a major global player over the past 20 years, with its network now covering more countries than any other airline.

    Turkiye’s aviation sector entered a new era in 2019 when Istanbul Grand airport opened. The first phase has the capacity to handle 90 million passengers a year, and the plan is for the capacity to reach 200 million once later phases are completed. 

    The airport’s globally strategic location combined with its large and expandable capacity will give Turkiye’s aviation
    sector an edge over its competitors in the Gulf over the next decade as construction starts on major airports, including Dubai and Riyadh. 

    While competition is evident, Turkish Airlines insists there is enough room for it and the Gulf airlines to grow as the centre of gravity for global aviation shifts from west to east.

    On a macro level, the UAE and Turkiye are complementary economies

    Beyond aviation, the trade relationship encompasses a wide range of sectors, including defence, logistics and construction. Over the past two years, Turkish contractors have secured significant contracts in the UAE. Turkish construction companies are now exporting the experience they have gained on projects in Turkiye to the UAE, as major government- backed infrastructure projects that include airports and railways move into tendering. 

    At the same time, UAE investments in Turkiye’s energy and financial sectors are growing, with notable examples including Emirates NBD’s investment in DenizBank and International Holding Company’s investment in Kalyon Energy. 

    These investments show that on a macro level, the UAE and Turkiye are complementary economies, with each holding a different mix of resources, capital and expertise. The strategic location of both countries amplifies the business case for trade even further.

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

    UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

    Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:

    > PROJECTS MARKET: GCC projects market collapses
    > GULF PROJECTS INDEX: Gulf projects index continues climb
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14201376/main.gif
    Colin Foreman
  • Building on UAE-Turkiye trade

    4 July 2025

    This package on UAE-Turkiye relations also includes:

    > UAE-Turkiye trade gains momentum
    > Turkiye’s Kalyon goes global
    > UAE-Turkiye financial links strengthen
    > Turkish Airlines plans further growth

     

    The UAE-Turkiye Comprehensive Economic Partnership Agreement (Cepa) that came into effect in September 2023 has already exceeded expectations. 

    Non-oil trade between the UAE and Turkiye grew by 11.5% in 2024, reaching a total of $40.5bn. This milestone surpasses a target of the Cepa three years earlier than planned. As a result, Turkiye is now the UAE’s fourth-largest non-oil trading partner, rising from seventh place in 2021.

    Trade between the UAE and Turkiye is growing strongly, with both countries increasingly viewed as strategic hubs for accessing broader markets. 

    The growth story builds on already established business links between the two countries. 

    “UAE-based companies and funds are already very active in Turkiye,” says Burak Daglioglu, president of the investment and finance office of the Presidency of the Republic of Turkiye. 

    “Firms like DP World and others in private equity and venture capital are playing a key role.”

    Strengthening ties

    Since the Cepa was signed in 2023, bilateral investment has accelerated, with Turkish companies also expanding into the UAE. 

    “That’s the mark of a healthy relationship,” he says. “When it’s balanced and bilateral, it’s more sustainable.”

    He adds that companies in both countries see the other not just as a market, but as a hub. “UAE firms use Turkiye to access Europe and Central Asia; Turkish firms use the UAE to reach Asia and Africa. This creates a complementary strategy for both sides.”

    In the energy sector, the focus is on renewables, with UAE firms eyeing major solar and wind projects in Turkiye. “We have huge potential in renewables, and there are ongoing talks with UAE investors,” says Daglioglu.

    In technology, Turkiye is emerging as a regional player in artificial intelligence (AI), financial technology (fintech), and healthcare technology.

    “Our infrastructure is increasingly AI-ready,” he says. “We have data centres, renewable power sources and connectivity. 

    “We also have a robust startup ecosystem, with early-stage funding rising from under $100m a decade ago to over $1bn today.”

    Defence is another key area of cooperation. “There are some ongoing projects in the defence sector between Turkiye and the UAE,” Daglioglu says. “It’s better not to name names at this stage, but it’s a promising area.”

    Venture capital (VC) is also playing an important role in promoting regional innovation. “Ten years ago, the startup scene was nascent. Now, it’s a cornerstone of our investment strategy. Dubai, as a regional VC hub, has been instrumental.”

    To support this growth, Turkiye has developed local VC legislation and attracted international funds, including those from Saudi Arabia, UAE family offices and corporate investors. A joint UAE-Turkiye technology fund worth $300m is also nearing finalisation. 

    “It’s not just about exits anymore. Turkish startups are scaling regionally and globally, with Dubai often serving as their capital and client gateway.”

    Turkiye is also a major industrial hub and, with a population of 85 million, has extensive human resources. “We have the talent, the infrastructure and the resilience,” he says. 

    “From automotive and mobility to chemicals and energy storage, we are expanding our industrial base.”

    We have huge potential in renewables, and there are ongoing talks with UAE investors

    Looking ahead

    Turkiye’s trade with the UAE and the rest of the GCC could be enhanced even further with the Development Road project, which is a 1,200-kilometre highway and railway linking Iraq’s southern Faw Port to Europe through Turkiye. 

    “The Development Road will not happen overnight – it’s a long-term, complex undertaking,” Daglioglu says. “But its impact will be global. Reducing shipping lead times between Asia and Europe by up to a week is hugely significant in today’s fast-moving markets.”

    Designed to connect the Gulf to Europe through Turkiye, the Development Road includes a high-speed rail network for both cargo and passengers, as well as a parallel motorway.

    For Daglioglu, the Development Road corridor offers Turkiye, the UAE and the GCC  states another platform for economic diversification.

    “This is more than a transport project, it’s a regional realignment,” he says. 

    “It will unlock a flow of goods, people, capital and data. Fibre infrastructure can run alongside the rail and motorway, creating a dual-purpose corridor that will support our AI and digital economy ambitions.”

    Historically, Turkiye has been well integrated with northern markets in Europe. Due to years of conflict in Iraq and Syria, however, its southern connectivity has lagged. 

    The Development Road, along with recent discussions to reopen direct links with Syria, offers opportunities for southern expansion.

    “We have invested heavily in northern logistics. Now, it’s time to strengthen our southern corridor,” Daglioglu says. “The Development Road could finally make direct access to the GCC markets a reality.”

    The corridor could also open up new avenues for digital infrastructure, such as subsea cables and terrestrial fibre,
    further linking the region’s digital economies.

    “This could be the basis for a digital Silk Road, supporting everything from AI to fintech.” 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14201047/main.gif
    Colin Foreman
  • Soudah Peaks outlines project construction plans

    3 July 2025

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Soudah Development Company (SDC) has outlined plans to tender the upcoming construction work at its Soudah Peaks project in the Aseer region.

    While presenting a webinar hosted by MEED on 3 July, Daniel McBrearty, chief development officer at Soudah Peaks, said: “We have several packages ready to be floated to the market by the end of this year.

    “The most immediate of these is the development of site-wide infrastructure required for the project.

    “The high-voltage electrical infrastructure catering to Soudah Peaks will be tendered by Saudi Electricity Company.”

    This package includes one bulk supply point with a capacity of 380kV /132kV, two primary substations and 142 distribution substations.

    The development will also require 15 water storage tanks and pump stations. The tanks will have a storage capacity of 93,150 cubic metres to cater to an expected demand of about 10,984 cubic metres a day (cm/d).

    A total of 14 sewage treatment plants are also planned, with a total capacity of 10,690 cm/d. The development will require 52 sewage lifting stations.

    The infrastructure package will also cover 24 mobile telecommunications or GSM (global system for mobile communications) towers and the relocation of eight existing GSM towers, as well as a package for the drainage culvert.

    SDC began the project procurement process in May when it floated a tender to bid for a contract to develop an employee housing package that will be developed using a design, build, finance, operate and maintain model.

    The tendering timelines are:

    • WP1 Zone 1 Tahlal Town Centre: May 2026
    • WP2 Zone 1 Tahlal Ridge: August 2026
    • WP3 Zone 1,2,3,6 Tahlal residential, Sahab, Sabrah and Redrock: June 2026
    • WP4 Zone 5 Rijal: April 2026
    • WP5 Site-wide infrastructure: December 2025
    • General Contractor: Floated in May 2025
    • Contractor Workforce Housing: Floated in March 2025
      Six development zones

      “The overall masterplan covers an area of more than 635 square kilometres and consists of six development zones: Tahlal, Sahab, Sabrah, Jareen, Rijal and Red Rock,” McBrearty said.

      Tahlal will offer a mix of residential, hospitality, heritage and retail facilities, along with an 18-hole golf course and the Watan Am-Soudah heritage village.

      Sahab will be an international destination for adventure sports and recreation. It will provide views across the valley and within the rolling plateau landscape.

      Sabrah will provide a luxury residential destination supported by high-end hospitality. The development is designed to be integrated within the contours of the southern plateau of Soudah Peaks, with a focus on natural open spaces.

      Rijal will be a hospitality destination with integrated views through to the Rijal Cultural Village. The development will be built around the existing village, which gives it its character.

      The Red Rock zone will offer luxury hospitality, with mansions and glamping camps set within the national park.

      Jareen will allow guests to connect with nature through its agricultural landscape. Visitors can expect authentic experiences such as exploring the mountainside on walking paths and visiting local organic farms.  

      Jareen will be developed as part of the third phase, when the infrastructure and connectivity are fully established within the development.

      Three phases

      “The masterplan will be developed in three phases, and the first phase will include the development of five out of the development’s six zones,” McBrearty said.

      The overall development will offer 2,810 hotel rooms, 1,337 residential units and 30 other attractions.

      The first phase will include 940 hotel keys, 391 residential units and 1,025 staff accommodation units.

      The second phase will increase the total to 1,735 hotel rooms, 641 residential units and 2,150 staff accommodation units.

      The final phase will have over 2,810 hotel rooms, 1,337 residential units and 3,022 staff accommodation units.

      We have several packages ready to be floated to the market by the end of this year. The most immediate of these is the development of site-wide infrastructure
      Daniel McBrearty, Soudah Peaks

      Companies engaged

      In March, SDC appointed US-based engineering firm Aecom as the lead design consultant for the Soudah Peaks development.

      Aecom’s scope of work covers the design work for the first phase of the development.

      Last year, SDC appointed another US-based engineering firm, Parsons Corporation, as the project management consultant for the development.

      Parsons’ scope of work includes project management and site supervision services for the six development zones.

      Project background

      Soudah Peaks is a mountain tourism destination set 3,015 metres above sea level on the country’s highest peak in the Aseer region.

      The project masterplan was formally launched in September 2023 by Saudi Arabia’s Crown Prince Mohammed Bin Salman Al-Saud.

      Speaking at the launch, he said: “Soudah Peaks will be a significant addition to the tourism sector in Saudi Arabia and place the kingdom on the global tourism map while highlighting and celebrating the country’s rich culture and heritage.” 

      Launched in 2021, SDC is wholly owned by Saudi Arabia’s sovereign wealth vehicle, the Public Investment Fund.

      An investment of SR11bn ($3bn) has been planned to develop tourism infrastructure and attractions in the Aseer region in the southwest of the kingdom.

      SDC intends to partner with the local community and private sector to develop hospitality, residential, commercial and entertainment offerings that will attract more than 2 million visitors a year, creating 8,000 direct and indirect permanent jobs by 2030.

      Aseer region seeks new investments for Saudi Arabia

      https://image.digitalinsightresearch.in/uploads/NewsArticle/14194455/main.jpg
      Yasir Iqbal
    • Read the July 2025 MEED Business Review

      3 July 2025

      Download / Subscribe / 14-day trial access

      The UAE’s investments in Turkiye, along with the contracts won by Turkish firms in the UAE, highlight the mutual opportunities available to both countries.

      Turkiye is already the UAE’s fourth-largest non-oil trading partner, rising from seventh place in 2021. Last year, non-oil trade between the UAE and Turkiye grew by 11.5%, reaching $40.5bn.

      With this momentum set to continue, MEED's latest issue takes an in-depth look at the growing trade relationship between the two countries. 

      In our 10-page opening Agenda section, MEED editor Colin Foreman speaks exclusively to the president of the investment and finance office of the Presidency of the Republic of Turkiye, Burak Daglioglu, about bilateral investment; and talks to Kalyon Holding CEO Mustafa Kocar about the construction firm’s new focus on the Middle East. 

      There are also interviews with DenizBank CEO Recep Bastug, on the strengthening financial links, and with the vice-president of sales at Turkish Airlines, Erol Senol, on the airline’s plans for further growth. 

      This month’s Levant market focus covers Jordan, Lebanon and Syria and finds all three countries working to recover from recent events beyond their control.

      MEED's latest issue also includes a comprehensive GCC real estate report, covering all six markets in detail. While growth is continuing, the sector is showing signs of facing a more nuanced reality due to economic slowdown, regional tensions, oversupply risks and delivery constraints. Read more here.

      We hope our valued subscribers enjoy the July 2025 issue of MEED Business Review. 

       

      Must-read sections in the July 2025 issue of MEED Business Review include:

      > AGENDA: 
      > UAE-Turkiye trade gains momentum
      > Building on UAE-Turkiye trade
      > Turkiye's Kalyon goes global
      > Strengthening UAE-Turkiye financial links
      > Turkish Airlines plans further growth

      > CURRENT AFFAIRS:
      > Middle East tensions could reduce gas investments

      INDUSTRY REPORT:
      GCC real estate 
      > GCC real estate faces a more nuanced reality

      > PROJECTS: GCC projects market collapses

      > INTERVIEW: Hassan Allam eyes role in Saudi Arabia’s transformation  

      > INTERVIEW: Aseer region seeks new investments for Saudi Arabia

      > LEADERSHIP: Nuclear power makes a global comeback

      > LEVANT MARKET REPORT: 
      > COMMENT: Levant states wrestle regional pressures
      > ECONOMY: Jordan economy nears inflection point
      > GAS: Jordan pushes ahead with gas plans 
      > POWER & WATER: Record-breaking year for Jordan’s water sector
      > CONSTRUCTION: PPP schemes to drive Jordan construction
      > DATABANK: Jordan’s economy holds pace, for now
      > ECONOMY: Lebanon’s outlook remains fraught
      > RECONSTRUCTION: Who will fund Syria’s $1tn rebuild?

      > MEED COMMENTS: 
      > Dubai's tall towers reach new heights
      > Contractors return to Palm Jebel Ali
      > Nuclear U-turn is an opportunity
      > Adnoc pursues global gas ambition

      > GULF PROJECTS INDEX: Gulf projects index continues climb

      > MAY 2025 CONTRACTS: Mena contract award activity remains subdued

      > ECONOMIC DATA: Data drives regional projects

      > OPINION: A farcical tragedy that no one can end

      > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

      To see previous issues of MEED Business Review, please click here
      https://image.digitalinsightresearch.in/uploads/NewsArticle/14193655/main.gif
      MEED Editorial
    • Algeria plans to expand fertiliser plant

      3 July 2025

       

      Algeria’s national oil and gas company Sonatrach is developing a project that will expand the country’s fertiliser plant located in Arzew, according to industry sources.

      Sonatrach has not publicly said when it expects to issue the invitation to bid for the main contract for the project.

      The original $2.4bn contract to develop the Arzew Fertiliser Complex was executed by a joint venture of South Korea’s Daewoo E&C and Japan’s Mitsubishi Corporation.

      The joint venture won the contract in April 2008 and completed the facility in April 2013.

      The fertiliser production complex was built in the Arzew industrial zone near Oran, on the Mediterranean coast.

      It produces ammonia from natural gas, and almost all of the ammonia output is converted to urea for producing granular urea to be used as fertiliser.

      The complex includes two ammonia production units, each with a capacity of 2,000 tonnes a day (t/d).

      It also includes two urea production units, each with a capacity of 3,500 t/d, as well as granulation plants and supporting facilities.

      Sonatrach is currently trying to boost Algeria’s capacity to produce fertilisers.

      In December, a total of six companies were shortlisted as part of the tender process for another fertiliser project in Algeria’s Annaba region, according to information released by the Industrial Group for Fertilisers & Phytosanitary Products (Asmidal).

      Asmidal is a wholly owned subsidiary of Sonatrach.

      The scope of the contract being tendered included preparing a front-end engineering and design (feed) study for a project to create a fertilisers, food phosphates and derivatives complex.

      The project is expected to be worth about $1bn.

      https://image.digitalinsightresearch.in/uploads/NewsArticle/14192053/main.jpg
      Wil Crisp