The Abu Dhabi National Oil Company (ADNOC) has entered a $11 Billion dollar transaction whilst in partnership with Eni and PTT Production and Public company LTD. This significant amount is meant to monetize The Hail and Ghasha’s midstream future gas production.
Image Source: Offshore-Energy.Biz//ADNOC
What is the Hail and Ghasha project?
It is described as the world’s first gas project that hopes to operate with net zero emissions; fostering UAE’s goal of self-sufficiency in gas, and helping meet rising export demand. Through the integration of nuclear and renewable resources, the H and G project will work towards pivotal environmental goals by reducing carbon emissions.
11 Billion dollars can mean that ADNOC will be able to realise upfront value for its products at highly competitive rates. More importantly, this unlocked capital will allow ADNOC to retain full strategic and operational control over its assets.
ADNOC’s International Relations and Fund Allocation
ADNOC’s deal is not a result of a single investor or group. The funds have been raised from a consortium of international and regional banks. Some of the biggest international names include Standard Chartered, HSBC, Citibank.
The financing follows several major infrastructure deals. Including a $4.9 Billion oil pipeline partnership, and a $10 Billion gas pipeline agreement, as well as Build-own-operate-transfer (BOOT) projects undertaken by ADNOC.
Image Source: ADNOC
Note: BOOT projects refer to Public Private Partnerships where the private enterprise builds and operates all functions of an infrastructure for a set period of time before transferring ownership to the government.
ADNOC’s BOOT projects include:
- $3.8 Billion offshore power and decarbonisation initiative
- 2.2 Billion water supply project.
- 150 Billion dollar investment plan to expand its ongoing projects by 2030
UAE has long been heavy on its expenditure on infrastructure, and has remained vocal about its commitment to a sustainable future. ADNOC has been praised by countless important officials, one of them being the Minister of Industry and Advanced Technology, who reaffirmed his faith on ADNOC’s track record of global energy partnerships
While the large amounts of funds polish ADNOC’s future to appear full of growth and promising returns, it is advised that the reader conduct their own research on whether or not the company holds the operational capacity and demand outlooks to fulfill the large scale projects, and the means to generate enough returns that leveraged funds demand.
All Image Sources: ADNOC
Sources:
- https://www.offshore-technology.com/news/adnoc-hail-and-ghasha-financing/?cf-view
- https://www.sdeng.gr/project/hail-gasha/ https://www.gtreview.com/news/mena/adnocs-new-global-trading-arm-signs-us1-2bn-credit-fac ility/
- https://www.reuters.com/business/energy/adnoc-lands-11-billion-financing-future-gas-output-2025-12-18/
- https://www.adnoc.ae/en/our-projects/hail-ghasha https://nmdc-group.com/en/dredging-and-marine/ghasha-concession-artificial-islands/
- https://finance.yahoo.com/news/adnoc-secures-11-billion-financing-082756435.html?guccount er=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAJdeSy6 ua_M2V2ImsjHRgdjNMnWG7Urkf1Ddk3TdeU8537AuKxme67XsTtHrvlg6zGT-litAqadf7OhfwdYlY_dZzUvv8hDdgM7zJSSeTiz5oq0BnwZNQMolYUH_zY93ihkeg6W6tf8SGv3IVBf90wbouSD7NuOw 3K2OINJJYspO
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