ADNOC sanctioned its Hail and Ghasha offshore project, awarding $16.94 billion in contracts for the ultra-sour gas project in the Arabian Gulf, the company announced Oct. 5.

ADNOC and its partners aim to operate the shallow water project in the Ghasha Concession with net zero CO2 emissions. The project is expected to begin production around 2025 and produce more than 1.5 Bcf/d by the end of the decade. It will also produce over 120,000 bbl/d of oil and condensates.

The Hail and Ghasha development design combines decarbonization technologies into one integrated solution. The project will capture 1.5 million tonnes per year (mtpa) of CO2, taking ADNOC’s committed carbon capture capacity to almost 4 mtpa. The company recently announced its decision to double its carbon capture capacity to 10 mtpa by 2030.

The Hail and Ghasha CO2 will be captured, transported onshore and stored underground, while low-carbon hydrogen will be produced to replace fuel gas and further reduce emissions, ADNOC said. The project will also leverage clean power from nuclear and renewable sources from the grid.

ADNOC also awarded an $8.2 billion engineering, procurement and construction (EPC) contract for the offshore facilities, which includes facilities on artificial islands and subsea pipelines, to a joint venture between National Petroleum Construction Co. and Saipem SpA.

Saipem said its share of that contract is valued at $4.1 billion and includes four drilling centers and one processing plant to be built on artificial islands, as well as various offshore structures and more than 300 km of subsea pipelines. Saipem said it will use its shallow water offshore vessels and advanced welding technology for corrosion resistant materials for the project.

The Ghasha Concession, granted for 40 years in November 2018, includes the Hail, Ghasha, Hair Dalma, Bu Haseer, Satah, Nasr, SARB, Shuweihat and Mubarraz offshore fields. The Hail and Ghasha development project will produce ultra-sour gas from Hail and Ghasha and serve as a hub for related offshore fields within the concession area.

The project is using artificial islands to reduce dredging and drilling impact.

ADNOC operates the Ghasha concession with 55% interest on behalf of partners Eni with 25% interest, Wintershall Dea with 10%, OMV with 5% and Lukoil with 5%.