ADNOC has taken the final investment decision (FID) and awarded contracts worth $16.94bn for the development of its Hail and Ghasha gas project, located offshore Abu Dhabi, UAE.

It has awarded two engineering, procurement and construction (EPC) contracts, one for the offshore facilities and the other for onshore works at the project.

The first EPC contract valued at $8.2bn was awarded to a joint venture between National Petroleum Construction Company and Saipem, to build facilities on artificial islands and subsea pipelines.

The second EPC contract worth $8.7bn was granted to Italian engineering company Tecnimont for the onshore recovery and handling of CO2 and sulphur.

ADNOC said that more than 60% of the investment on the project will return to the UAE’s economy through an In-Country Value (ICV) program.

ADNOC upstream executive director Abdulmunim Al Kindy said: “The project will drive in-country value, provide highly skilled career opportunities for UAE Nationals and stimulate socio-economic growth for the nation.

“Natural gas is an important transition fuel and ADNOC will continue to responsibly unlock its gas resources to enable gas self-sufficiency for the UAE, grow our export capacity and support global energy security.”

The Hail and Ghasha project, a part of Abu Dhabi’s Ghasha Concession, is planned to be operated with net zero carbon dioxide (CO2) emissions.

Its development design will integrate several advanced decarbonisation technologies, and also leverage clean power from nuclear and renewable sources from the grid.

The project is expected to capture 1.5 million tonnes per year (mtpa) of CO2, which will be transported onshore and safely stored underground, said the oil and gas company.