ADNOC secures structured financing for Hail & Ghasha gas development

ADNOC, in partnership with Eni S.p.A. and PTT Exploration and Production Public Company Limited (PTTEP), has announced the successful signing of a landmark structured financing transaction of up to US$11bn(AED 40.4bn) for its offshore Hail and Ghasha gas development

Hail and Ghasha is part of the Ghasha Concession, located offshore Abu Dhabi, which is expected to produce 1.8bn standard cubic feet per day (bscfd) of gas. As such, project will play a vital role in meeting ADNOC’s goal of gas self-sufficiency and the rising demand for exports. It is also the world’s first offshore gas project of its kind that aims to operate with net zero emissions, capturing 1.5 million tonnes per year (mtpa) of carbon dioxide (CO2).

In addition to providing immediate access to capital, the financing structure introduces an innovative commercial model that ring-fences midstream processing facilities and operations, which enables ADNOC and its partners to raise low-cost funding while retaining strategic and operational control of the assets.

This is the latest in a series of landmark midstream and infrastructure transactions, including a US$4.9bn (AED18bn) oil pipeline partnership, and a US$10.1bn (AED 37.1 bn) gas pipeline agreement, with some of the world’s leading global infrastructure and institutional investors.

His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC managing director and Group CEO, said, “This landmark transaction builds on ADNOC’s successful track record of global energy partnerships and unlocks capital to drive progress at Hail and Ghasha, one of the world’s most ambitious offshore gas projects. The exceptional demand from over 20 leading global and regional financial institutions reinforces confidence in ADNOC’s value creation strategy, innovative approach to financing, and expertise in delivering mega projects. Hail and Ghasha is an important contributor to ADNOC’s gas strategy and is on track to generate significant value for ADNOC, our partners, and the UAE, while unlocking important new gas resources for our customers.”