Saipem bags $4.1bn Hail and Ghasha EPC deal from ADNOC

Italian energy services contractor Saipem, in consortium with National Petroleum Construction Company, has won a contract from ADNOC for work on the Hail and Ghasha Development Project.

ADNOC today announced the final investment decision for the Hail and Ghasha project and awarded nearly $17bn worth of contracts for the project. The project aims to operate with net zero emissions, produce more than 1.5bn standard cubic feet per day of gas before the end of the decade, and capture 1.5m tonnes per year of CO2.

The FID announcement and signing of the two engineering, procurement, and construction contracts were done at the Abu Dhabi International Progressive Energy Congress (ADIPEC) 2023.

The project scope of Saipem’s deal encompasses the EPC of four drilling centres and one processing plant to be built on artificial islands, as well as various offshore structures and more than 300 kilometres of subsea pipelines. Saipem’s share of the contract amounts to around $4.1bn.

“Saipem will leverage its state-of-the-art shallow water offshore vessels, [and] its advanced welding technology for corrosion-resistant materials,” the Italian firm explained.

The second EPC contract will deliver the onshore scope, including CO2 and sulphur recovery and handling. It has been awarded to Tecnimont and is worth approximately $8.7bn.