Abu Dhabi National Oil Company (ADNOC) has awarded two contracts totaling $2 billion (AED 7.49 billion) to ADNOC Drilling for the Hail and Ghasha Development Project.

The contracts comprise $1.3 billion (AED 4.89 billion) for integrated drilling services and fluids, and $711 million (AED 2.6 billion) for the provision of four Island Drilling Units.

A third contract, valued at $681 million (AED 2.5 billion), was also awarded to ADNOC Logistics & Services for the provision of offshore logistics and marine support services.

Overall, more than 80% of the value of the awards is expected to flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) programme and all three of the contracts will cover the Hail and Ghasha drilling campaign for a maximum of ten years, according to a statement from ADNOC.

The Hail and Ghasha Development Project is part of the Ghasha Concession which is the world’s largest offshore sour gas development and a key component of ADNOC’s integrated gas masterplan as well as an important enabler of gas self-sufficiency for the United Arab Emirates (UAE).

The Ghasha Concession comprises the Hail, Ghasha, Hair Dalma, Satah, Bu Haseer, Nasr, SARB, Shuwaihat and Mubarraz fields.

The fields are located aproximately 190 kilometers northwest of the Emirate of Abu Dhabi.

Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC said: “Abu Dhabi’s vast gas resources can play an increasingly important role in providing lower-carbon energy to meet the demands of today and tomorrow, while the world still relies on hydrocarbons. As we responsibly execute this development we continue to explore ways to accelerate project delivery and further reduce emissions, together with our strategic international partners.”

Production from the Ghasha Concession is expected to start around 2025, ramping up to produce more than 1.5 billion standard cubic feet per day (scfd) of natural gas before the end of the decade.

Four artificial islands have already been completed and development drilling is underway, the statement said.

The use of artificial islands provides significant environmental benefits and cost savings as it eliminates the need to dredge over 100 locations for wells while creating new habitats for marine life.

(Writing by Seban Scaria; editing by Daniel Luiz)