meed-logo

line1 line2 line3
SIGN IN / REGISTER

Strategic Adnoc projects register notable progress

11 April 2023

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

> Adnoc tenders key unconventional gas project

> Adnoc advances strategic Lower Zakum projects

> Adnoc L&S wins $2.6bn logistics services contract

> Adnoc and BP offer to buy Israeli gas firm stake

> Adnoc starts Fujairah CO2 reduction project

> Adnoc receives bids for key Estidama project packages

> Adnoc tenders Upper Zakum oil field development

Abu Dhabi National Oil Company (Adnoc) is making considerable progress with big-ticket projects key to attaining its strategic goals of 5 million barrels a day (b/d) of oil production capacity by 2027 and 3 billion cubic feet a day (cf/d) of gas by the end of this decade.

The state energy giant has been allocated a capital expenditure budget of $150bn for 2023-27. It made clear its intention to advance strategic projects by deploying contractors at the start of the year to begin initial work on its biggest scheme – the Hail and Ghasha sour gas development.

Hail and Ghasha sour gas production

In January, Adnoc signed pre-construction services agreements (PCSAs) with France-headquartered Technip Energies, South Korean contractor Samsung Engineering and Italy’s Tecnimont for the Hail and Ghasha onshore package.

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

While the onshore and offshore PCSAs awarded to the two consortiums by Adnoc are valued at $80m and $60m, respectively, the engineering, procurement and construction (EPC) packages are estimated to be worth $5.5bn and $5bn.

As part of the PCSAs, the contractors are required to perform initial detailed engineering and procurement for important long-lead items. Based on proposals to be submitted later this year, Adnoc is expected to award the same contractors the main EPC works on the Hail and Ghasha project.

Production from the Ghasha concession, where the Hail and Ghasha fields are located, is expected to start by 2027, ramping up to more than 1.5 billion cf/d before the end of the decade.

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.

Fujairah LNG project

While contractors perform early works on the Hail and Ghasha packages, Adnoc is pursuing another critical project to position the UAE as a key player in the regional and global liquefied natural gas (LNG) sector.

Adnoc Group subsidiary Adnoc Gas has started an early engagement process with contractors for a planned LNG export terminal in the emirate of Fujairah. The estimated $4.5bn project will have the capacity to process approximately 9.6 million tonnes a year (t/y) of LNG, with the help of two 4.8 million t/y-capacity trains.

Two consortiums have formed to bid for the main EPC works on the Fujairah LNG project, the main tender for which is expected to be issued by Adnoc Gas during the second quarter:

  • Technip Energies (France)/JGC Corporation (Japan)/National Petroleum Construction Company (UAE)
  • McDermott (US)/Saipem (Italy)/Hyundai Engineering & Construction (South Korea)

The Fujairah facility is anticipated to be commissioned in 2027, and will ship LNG mainly to Pakistan, India and China, and other key markets in Asia such as Japan and South Korea.

Vital offshore projects advance

Increasing oil production from Abu Dhabi’s prolific offshore hydrocarbon concessions is crucial to achieving Adnoc's overall oil production target and sustaining crude output levels over the long term.

To this end, Adnoc Group subsidiary Adnoc Offshore is making headway with two significant projects to raise oil production from the Upper Zakum and Lower Zakum concessions.

Adnoc Offshore tendered the main EPC contract in late February for a project to increase the potential of Abu Dhabi’s largest oil-producing asset, the Upper Zakum offshore field, to 1.2 million b/d. Contractors are currently preparing technical bids for the project known as UZ1000. 

The Upper Zakum oil field, located 84 kilometres offshore Abu Dhabi, is the world’s second-largest offshore oil field and the fourth-largest oil field.

The main scope of work on the UZ1000 project 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.

Separately, Adnoc Offshore is working to sustain oil production from the Lower Zakum 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.

The larger, longer-term objective is to raise Lower Zakum’s oil production to 520,000 b/d by 2027 and maintain that level until 2034. This goal is to be accomplished through the first phase of the Lower Zakum Long-Term Development Plan (LTDP-1).

Adnoc Offshore is moving ahead with both the Lower Zakum EPS 2/PDP and LTDP-1 projects in parallel, and has started the early engagement process for the EPC work on both projects with contractors.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10744526/main.jpg
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • Egypt tenders 500MW solar IPP

    19 February 2026

    Register for MEED’s 14-day trial access 

    Egyptian Electricity Transmission Company (EETC) has issued a request for qualifications for a 500MW solar photovoltaic (PV) independent power producer project in Egypt’s West of Nile area.

    The bid submission deadline is 11 May.

    The project is being supported by the European Bank for Reconstruction & Development and will be developed under a build-own-operate model.

    Developers will be responsible for designing, financing, constructing, owning and operating the plant, with EETC acting as the offtaker for generated electricity.

    US/India-based Synergy Consulting is acting as lead, financial and commercial advisor for this transaction.

    The project forms part of Egypt’s strategy to strengthen long-term electricity supply and increase renewable generation capacity.

    Egypt is targeting 42% renewable energy in its power mix by 2030. The country aims to raise this share to 65% by 2040.

    EETC previously had plans to build a 200MW solar plant in a west Nile area but cancelled the tender for the project in 2020.

    Egypt's power sector had its strongest year in over a decade last year, accounting for $4.2bn of total contract awards.

    Despite dipping from the previous year, solar accounted for about $1bn of total awards. 

    In November, a consortium of local firms Hassan Allam Utilities and Infinity Power won contracts to develop two solar PV projects with a combined capacity of 1,200MW, supported by 720 megawatt-hours (MWh) of battery storage.

    The UAE’s Amea Power and Japan’s Kyuden International Corporation also recently reached financial close on a $700m project comprising a 1,000MW solar plant and 600MWh battery system in Aswan.

    The scheme is backed by a $570m debt package led by the International Finance Corporation and is expected to become Africa’s largest single-asset solar and storage facility when it enters operation later this year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15701778/main.jpg
    Mark Dowdall
  • Local contractor wins $143m Jeddah sewage contracts

    19 February 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s National Water Company (NWC) has awarded two sewage network contracts worth a combined SR536.3m ($143m) to local contractor Civil Works Company.

    The projects will be implemented over 32 months from site handover and will serve northern Jeddah districts.

    The first contract, valued at SR278.5m ($74.3m), covers incomplete main lines and secondary sewage networks serving parts of the Al-Bashair, Al-Asala and Al-Falah neighbourhoods.

    The scope includes pipelines ranging from 200mm to 800mm in diameter with a total length of about 54.8 kilometres (km).

    The package also includes sewage tunnels with diameters ranging from 600mm to 1,800mm and a total length of approximately 6.5km. Works will also serve the Taybah, Abhar Al-Shamaliyah and Al-Hamdaniyah districts.

    The second contract is valued at SR257.8m ($68.8m). It covers the implementation of main lines and sub-networks to serve part of the Al-Hamdaniya neighbourhood.

    The works include pipelines ranging from 200mm to 1,500mm in diameter with a total length of about 78.5km. The scope also includes horizontal drilling works for sewage tunnels with diameters from 1,200mm to 1,400mm and a total length of approximately 205 metres.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15699620/main.jpg
    Mark Dowdall
  • Saudi Arabia prequalifies firms for gas transmission grids

    19 February 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia's Energy Ministry has prequalified companies to develop natural gas distribution networks in five industrial cities in the kingdom on a build-own-operate (BOO) basis.

    The industrial zones earmarked are Al-Kharj Industrial City; Sudair City for Industry and Business; and the First, Second and Third Industrial Cities in Jeddah, the Energy Ministry said in a statement.

    The contractors prequalified to bid for the natural gas transmission grids BOO scheme include eight standalone firms and seven consortiums:

    • East Gas (Egypt)
    • Natural Gas Distribution Company (Saudi Arabia)
    • Egyptian Kuwaiti Advanced Operation and Maintenance (Saudi Arabia)
    • Modern Gas (Egypt)
    • Saab Energy Solutions (Saudi Arabia)
    • Sergas Contracting (Saudi Arabia)
    • Bharat Petroleum Corporation (India)
    • UniGas Arabia (Saudi Arabia)
    • Best Gas Carrier / Khazeen / Mubadra (Saudi Arabia)
    • Al Sharif Contracting (Saudi Arabia) / Anton Oilfield Services Group (China) China Oil and Gas Group
    • Hulul (owned by Saudi Arabia’s National Gas and Industrialization Company) /Al-Fanar Gas Group (UAE)
    • Indraprastha Gas (India) / Masah Contracting (Saudi Arabia)
    • Expertise Contracting / PGL Pipelines (UK)
    • National Gas Company (Egypt) / Egypt Gas (Egypt)
    • Taqa Arabia (Egypt) / Taqa Group (UAE)

    The Energy Ministry has set a deadline of 23 April for these prequalified contractors to submit technical bids.

    The ministry added in its statement that it has identified a total of 36 industrial cities in Saudi Arabia for gas infrastructure development.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15699582/main0334.png
    Indrajit Sen
  • Consultants bid for Abu Dhabi airport delivery partner role

    19 February 2026

     

    Abu Dhabi Airports Company (Adac) received bids from major international firms on 19 January for a contract covering the delivery partner role for the upcoming packages at Zayed International airport (AUH).

    The project is part of the AUH satellite terminal programme, estimated at AED10bn ($2.7bn).

    MEED understands that the following firms have submitted bids:

    • Aecom (US)
    • AtkinsRealis/Egis/Mace (Canada/France/UK)
    • Bechtel (US)
    • Hill International (US)
    • Jacobs / Surbana Jurong (US/Singapore)
    • Parsons Corporation / Arup  (US/UK)

    The plan includes a new satellite concourse east of Terminal A, linked by an underground tunnel housing both an automated people mover and a baggage handling system.

    It also includes apron stands, taxi lanes and taxiways, East Midfield landside access and utilities, additional bus gates and the reconfiguration of the North and South aprons and Apron 6.

    The latest tendering activity follows the start of construction works on the East Midfield cargo terminal located at AUH, as MEED reported in December 2024.

    Local firm Raq Contracting is undertaking the construction works on this project. 

    The terminal will cover an area of 90,000 square metres and will have the capacity to handle about 1.5 million tonnes of cargo annually.

    The project is part of a broader plan to enhance the new airport's profile.

    Abu Dhabi opened a new passenger terminal in November 2023 as part of the airport’s plan to increase its passenger traffic in line with the UAE’s wider growth plans, along with projects such as the rail network being built by Etihad Rail.

    In May 2024, MEED reported that AUH's new Terminal A could connect to the Etihad Rail network in the future, as part of its growth and interconnectivity plans. 

    Plans are in progress to link the new terminal at AUH to the UAE’s growing rail network, according to the CEO of Adac.

    Speaking to UK analytic firm GlobalData's Airport Technology during a tour of the new Terminal A at AUH, CEO Elena Sorlini said that Abu Dhabi Aviation is planning to improve the transport links to the site. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15698728/main.png
    Yasir Iqbal
  • Qatari firm wins Damascus airport MEP works

    19 February 2026

    Qatari firm Elegancia MEP, which is owned by local investment firm Estithmar Holding, has won a contract to undertake the mechanical, electrical and plumbing (MEP) and extra-low-voltage (ELV) systems works for the Damascus International airport Terminal 2 project.

    In a statement, Elegancia MEP said that its scope covers the execution of MEP and ELV systems works to support terminal operations, passenger facilities, safety systems and overall operational efficiency.

    The MEP works for the airport project include electrical installations; heating, ventilation and air conditioning (HVAC) systems; safety and security systems; firefighting systems; surveillance and monitoring systems; control systems; and plumbing works.

    The contract award follows the signing of the final concession contracts in November last year by Qatar’s UCC-led consortium to redevelop Damascus airport, formalising the prior memorandum of understanding (MoU) inked in August 2025 with Syria’s General Authority of Civil Aviation.

    The contract will see the consortium redevelop and expand the airport in several phases under a build-operate-transfer framework, with a view to raising total capacity to 31 million passengers annually upon the completion of all phases.

    The agreement is valued at an estimated $4bn and includes plans for the overhaul of all existing terminals, the construction of other passenger facilities and 500 kilometres of access roads, as well as the development of a commercial complex centred around a five-star hotel.

    The signing of the final concession contracts followed UCC Holding’s provisional signing in October last year of five consultancy and design agreements for planned work on the project.

    The earlier MoU designated UCC Holding as the primary developer through its investment arm UCC Concessions Investment, alongside three Turkish partners – Cengiz, Kalyon and TAV – and the US-based Assets Investments USA.

    US-based firm Synergy Consulting is the financial adviser for the consortium.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15698666/main.png
    Yasir Iqbal