Abu Dhabi National Oil Company (ADNOC) and partners have successfully secured a planned financing activity of up to AED40.4 billion (US$11 billion) to monetize the future gas production of Sichoto and the Ghasha field.
The Ghasha concession, located offshore Abu Dhabi, will produce 1.8 billion standard cubic feet per day (bscfd) of gas. The non-operating financial function, unique to a power project of this scale and complexity, enables ADNOC to realize the original value of its products at competitive prices.
In addition to providing quick access to funds, the financial framework introduces a new commercial model that combines facilities and centralized operations, allowing ADNOC and its partners (Eni SpA and PTT Exploration and Production Public Company Limited) to raise cheap financing while maintaining strategic and operational control of assets.
Dr.
“The exceptional demand from more than 20 leading financial institutions globally and regionally reinforces confidence in ADNOC’s value creation strategy, innovative approach to financing, and proven track record in delivering major projects.”
The transaction, as part of the Ghasha concession project, will enable responsible energy production needed to meet the growing needs of local industries.
More than 60 percent of the investment value of every project will flow back into the UAE economy under ADNOC’s Inland Value (ICV) program, which reinforces ADNOC’s commitment to ensuring that added economic value stays in the country from the contracts awarded.
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 and Standard Chartered Bank.
It is the latest in a series of major infrastructure development deals ADNOC has struck over the past decade, including a $4.9 billion (AED18 billion) oil pipeline partnership, and a $10.1 billion (AED37.1 billion) gas pipeline deal, with some of the world’s leading infrastructure and institutional investors.
ADNOC has also participated in the establishment of BOOT (build-own-operate-transfer) projects such as the US$3.8 billion (AED14 billion) project to generate energy and decarbonise operations far from the coast and the US$2.2 billion (AED8.3 billion) project to bring sustainable water to coastal operations.
Hail and Ghasha are the world’s first gas developments aiming for net-zero emissions. The project will capture 1.5 million tonnes per year (mtpa) of carbon dioxide, the equivalent of taking more than 300,000 petrol vehicles off the road every year, and aims to invest in vacant offshore jobs.
