International engineering giant Technip Energies has won a revised pre-front-end engineering and design contract from Abu Dhabi National Oil Company (Adnoc) for work on the Hail & Ghasha offshore sour gas development.
Adnoc said on Thursday that it has awarded a contract to Technip Energies “to update the FEED” for the giant Ghasha concession. The Hail & Ghasha development project has been in the works for several years, but its execution was delayed due to the coronavirus pandemic and low commodity prices.
Cost optimisation - The re-FEED work on Ghasha awarded to Technip Energies is aimed at further optimising costs and reducing the giant project’s carbon footprint. “Adnoc continues to work with its concession partners to responsibly progress the Ghasha megaproject, aiming to further optimise costs and timing, as well as accelerate the integration of carbon capture,” the company said.
However, Adnoc added that it remains focused on production objectives and requirements for the Ghasha development. Up to three leading international engineering contractors were competing for the Hail & Ghasha re-FEED works, Upstream had reported.
Who's in the hat? - Technip is said to have pipped WorleyParsons and Fluor, the two other key competitors for the coveted engineering project. Bechtel of the US carried out FEED work for the Hail & Ghasha in an earlier phase of development.
In the Ghasha concession area, three artificial islands have already been completed, as enabling works continue, Adnoc noted. “Production from the concession is expected to start around 2025, ramping up to produce more than 1.5 billion cubic feet per day of gas before the end of the decade,” it said.
Multiple EPC packages - Adnoc has been pushing ahead with preparations for tenders involving multiple engineering, procurement and construction packages for Hail & Ghasha, but these are likely to go back on the back-burner to allow the optimisation initiatives to follow their course, leading to a revised FEED on the project.
Up to four EPC packages were previously issued by Adnoc, involving most of the work on the sour gas development. The Emirati state-owned giant is yet to take the final investment decision for Hail & Ghasha, and some of its key partners, including Italy's Eni, said last year that they would review the development in light of the Covid-19 pandemic. The two fields are located off Abu Dhabi in water depths of less than 15 metres. The Ghasha Concession comprises the Hail, Ghasha, Hair Dalma, Satah, Bu Haseer, Nasr, Sarb, Shuwaihat and Mubarraz fields, Adnoc said. Adnoc’s partners in the Ghasha concession include Eni on 25%, Wintershall Dea with 10%, and OMV and Lukoil each on 5%.