Adnoc secures landmark structured financing of up to $11 billion for Hail & Ghasha gas development

Abu Dhabi National Oil Company (ADNOC), in partnership with Eni S.p.A. and PTT Exploration and Production Public Company Limited (PTTEP), on Thursday announced the successful signing of a landmark structured financing transaction of up to Dhs40.4 billion ($11 billion) to monetise Hail and Ghasha’s midstream future gas production.

The transaction, as part of the Ghasha concession project, will enable responsible energy production needed to meet the growing demands of local industries, supporting the UAE’s gas self-sufficiency ambitions.

The Ghasha concession, located offshore Abu Dhabi, is set to produce 1.8 billion standard cubic feet per day (bscfd) of gas.

Over 60 percent of the investment value of the entire project will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) programme, reinforcing ADNOC’s commitment to ensuring more economic value remains in the country from the contracts it awards.

Hail and Ghasha is also the world’s first gas development that aims to operate with net-zero emissions. The project will capture 1.5 million tonnes per year (mtpa) of carbon dioxide, equivalent to removing over 300,000 fuel-powered cars off the road every year, and aims to deploy fully unmanned offshore operations.

Hail and Ghasha will also benefit from ADNOC’s industry-leading AI and advanced technologies, integrated in its state-of-the-art Thamama Centre of Excellence, to optimise operations, enhance efficiencies and improve real-time decision-making.

Dr. Sultan Ahmed Al Jaber, 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 proven track record 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.”

The non-recourse financing transaction, unique for an energy project of this scale and complexity, enables ADNOC to realise upfront value for its products at competitive rates.

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

This transaction is the latest in a series of pioneering infrastructure development partnerships that ADNOC has executed over the past decade, including the $4.9 billion (Dhs18 billion) oil pipeline partnership, and the $10.1 billion (Dhs37.1 billion) gas pipeline agreement, with some of the world’s leading global infrastructure and institutional investors — as well as pioneering BOOT (build-own-operate-transfer) projects such as the $3.8 billion (Dhs14 billion) project to power and decarbonise offshore operations and the $2.2 billion (Dhs8.3 billion) project to deliver sustainable water supplies to onshore operations.

These financial solutions have cemented ADNOC’s role as an attractive partner for diversified global and regional capital, strengthened its financial position and reinforced ADNOC’s ability to successfully deliver large infrastructure projects of this scale.

Moreover, ADNOC’s smart and value-enhancing financing approach over the past decade has provided a tested blueprint for other regional and global peers to emulate and replicate.

The bank consortium includes Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Agricultural Bank of China, Bank of China, Citibank, The Development Bank of Singapore, Dubai Islamic Bank, Emirates Development Bank, Emirates NBD, First Abu Dhabi Bank, Gulf Investment Bank, Industrial and Commercial Bank of China, Mashreq Bank, Mizuho Bank, MUFG Bank, Natixis, National Bank of Kuwait, Sharjah Islamic Bank, Sumitomo Mitsui Banking Corporation, Saudi National Bank and Standard Chartered Bank.

 WAM