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
  • Chinese contractor wins Morocco solar plant deal

    10 August 2026

    China Harbour Engineering Company (CHEC), a subsidiary of China Communications Construction Company (CCCC), has won a contract to build a solar photovoltaic (PV) power plant in Fez in northern Morocco.

    Known as GreenPower Morocco 4 (GPM4), the project is being developed by Moroccan company GPM Holding through its utility-scale solar subsidiary GPM Parks.

    The project covers engineering design, equipment procurement and installation, construction of an operation and maintenance building, grid connection and commissioning. It also includes upgrades to the associated substation.

    According to CHEC, the completed plant will supply electricity to the local grid, although it did not disclose the project’s capacity or contract value. 

    The project is being developed under Law 13-09, which provides Morocco’s framework for private renewable energy generation.

    According to its website, GPM Holding is also developing another solar PV project called GreenPower Morocco 2 (GPM2). This follows the completion of its first solar project, the 34MW project (GPM1) commissioned in Tangier in 2024. 

    GPM1 was developed by Green Power Morocco, a special purpose vehicle owned by GPM Holding and UAE-based Amea Power. The $30m project covers 75 hectares and includes 91,000 PV panels. It is expected to generate about 66,149MWh a year.

    The project has a 25-year power purchase agreement in place with Amendis, a subsidiary of Veolia Morocco. PowerChina was the main engineering, procurement and construction (EPC) contractor.

    Chinese contractors have previously been involved in other projects in Morocco’s renewable energy sector.

    Shandong Electric Power Construction Company (Sepco 3), a subsidiary of PowerChina, was part of the EPC consortium for the 200MW Noor 2 concentrated solar plants and 150MW Noor 3 concentrated solar power projects at the Noor Ouarzazate complex.

    New contract awards have been limited in Morocco in 2026, although six solar PV plants are now in the execution stage under phases one and two of the 305MW Noor Atlas solar PV programme.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18263680/main.jpg
    Mark Dowdall
  • Aramco puts out fire at Jizan refinery after Houthi strike

    10 August 2026

    Saudi Aramco said it had extinguished a fire that broke out at its Jizan refinery on Saudi Arabia’s Red Sea coast after the facility was hit in drone strikes by Yemen-based Houthi rebels on 9 August.

    The kingdom’s Ministry of Energy said the fire occurred at an Aramco refinery facility in Jizan and that emergency authorities had completed the necessary procedures to deal with the incident.

    The energy ministry did not say what started the fire, saying only that the incident caused no injuries.

    The Houthi rebels later claimed responsibility for the attack.

    The province of Jizan lies close to Saudi Arabia’s border with Yemen and has repeatedly been targeted by the Houthis in attacks on the kingdom’s energy infrastructure.

    The strike on the Jizan refinery was the second attack on the facility by the Houthis in as many weeks. Aramco shut the refinery on 27 July following a similar drone strike, which, according to media reports, damaged the integrated gasification combined-cycle unit and tank farm at the complex.

    On a call with investors to discuss Aramco’s second-quarter results, CEO Amin Nasser said recent attacks on the company’s facilities in the world’s top oil-exporting country had caused some disruption to production, but that he was confident operations could be restored quickly. He said the attacks had had no material operational or financial impact.

    Jizan refinery complex

    Saudi Aramco’s sprawling Jizan refinery complex entered operations in 2021.

    Aramco undertook the estimated $16bn-plus project in late 2010. The scheme consists of a refinery with an output capacity of 400,000 barrels a day (b/d), a major marine terminal and a 4GW combined-cycle power plant in Baish, in Saudi Arabia’s southwestern Jizan region.

    The Jizan refinery covers an area of 12 square kilometres. The complex processes Arabian Heavy and Arabian Medium crude grades to produce 80 million b/d of gasoline, 250 million b/d of diesel and more than 1 million tonnes a year of petrochemical products such as benzene and paraxylene.

    A multiple-pier marine terminal supports the supply of crude oil from oil fields located mainly in the kingdom’s Eastern Province to the refinery, as well as the export of surplus refined products to overseas markets. The terminal has been designed to accommodate very large crude carriers.

    A 4,000MW combined-cycle power plant uses approximately 90,000 b/d of vacuum residue from the refinery to generate electricity, hydrogen and water for the refinery, while conveying excess power to the national grid.

    The hydrocracker unit comprises two parallel trains with a combined capacity of 54,500 b/d. The diesel hydrotreater plant comprises two trains, each with a capacity of 87,500 b/d.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18262347/main.jpg
    Indrajit Sen
  • Shamal picks Dutco for Dubai Zoo site homes

    10 August 2026

    Dubai-based Shamal Holding has awarded local contractor Dutco Construction the main construction works contract for a low-rise residential project on the site of the former Dubai Zoo in Jumeirah 1.

    The project will comprise 90 low-rise homes and is designed as a residential leasing community that will remain under Shamal’s ownership, with all homes offered for premium leasing.

    The development will retain mature trees from the former zoo and is planned around shared courtyards, landscaped open spaces and a central park. Residents will have access to a clubhouse, wellness area, children’s play area, family pool, lounge and gym.

    The architect is DXB Lab. The local H&H is the development manager for the project.

    Dutco has previously worked with Shamal on infrastructure elements of the Dubai Harbour and Dubai Harbour Marinas developments.

    Shamal’s wider real estate portfolio includes the Naia Island, Dubai Harbour and Nad Al-Sheba Gardens developments. The company also holds hospitality and leisure assets, including partnerships with Jumeirah, Hilton and Baccarat, and operates attractions such as Skydive Dubai and Deep Dive Dubai.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18262386/main.png
    Colin Foreman
  • WEBINAR: Mena Oil & Gas Projects Market 2026-27

    10 August 2026

    Webinar: Mena Oil & Gas Projects Market 2026-27 
    Thursday 27 August 2026 | 11:00 AM GST  |  Register now

    Agenda:

    • Summary of the Mena oil, gas and petrochemicals projects market 
    • Overview of major megaprojects, including project programmes
    • Analysis of active contracts and spending to date
    • Review of top contracts by work already awarded
    • Long-term capital expenditure outlays and forecasts
    • Key contracts expected to be tendered and awarded over the next 18 months
    • Leading clients, contractors and market participants
    • Spending by segment: oil, gas and petrochemicals (upstream, downstream, onshore and offshore) 
    • Audience Q&A 

    Hosted by: Indrajit Sen, MEED’s oil & gas editor

    Click here to register

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18260597/main.gif
    Indrajit Sen
  • Spanish firm renews Yanbu desalination O&M contract

    10 August 2026

    Spain’s Aqualia has announced it has renewed a contract to operate and maintain three floating desalination plants in Yanbu on Saudi Arabia’s Red Sea coast.

    The contract was awarded by the National Shipping Company of Saudi Arabia (Bahri) and will run until 14 September 2028, with an option to extend for a further two years.

    The three reverse osmosis (RO) plants are mounted on barges and have a combined production capacity of 150,000 cubic metres a day (cm/d). Each plant has a capacity of 50,000 cm/d.

    The three plants were originally deployed at Al-Shuqaiq and are designed to be relocated along Saudi Arabia’s coastline according to water demand. The barges are currently located at Yanbu.

    The $255m floating desalination project was commissioned for the Saudi Water Authority in 2022, with Bahri as the developer and UAE-based Metitio as the main contractor.

    Bahri is publicly listed on the Saudi Exchange but has significant government ownership, with the Public Investment Fund (PIF) holding 22.5% and Saudi Aramco Development Company owning 20% of the company.

    Aqualia is providing operation and maintenance services in Saudi Arabia through its joint venture Haji Abdullah Alireza Integrated Services Company (Haaisco), in which it holds a 51% stake.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18259350/main.jpg
    Mark Dowdall