Bid & Tender

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Project Summary
Project Name: Adnoc’s Hail, Ghasha Offshore Gas Development
Facility Type: Gas Field
Client: Abu Dhabi National Oil Company (Adnoc)
Budget (US $): 20,000,000,000
Project Initiation: Not Given
Project Completion:: Dec 13, 2027
Status: PMC Awarded,EPC Awarded,
Location: Hail, Ghasha Fields
Project Current Status

No Project Current Status

Project History
  • Occidental Petroleum (Oxy) of US has won a $500mn contract to carry out a technical evaluation at the Hail and Ghasha fields. It is expected to take two years to complete. (February 2015)
  • Bids have been invited by July 2016 for the front-end engineering and design (feed) study for Hail and Ghasha offshore fields development. (June 2016)
  • Bids submission deadline for the FEED contract has been extended to 28 August, 2016. The pre-qualified firms for the contract are - Amec Foster Wheeler of UK, Bechtel and Fluor of US, Technip of France, and WorleyParsons. (August 2016)
  • Currently, engineering companies are preparing to bid to develop sour gas reservoirs at the Hail and Ghasha offshore fields. (October 2016)
  • Contract worth $60 mn for offshore survey work on the Ghasha gas field has been awarded to Seabed Geosolutions of Netherlands – JV of Fugro of Netherlands and CGG of France. The contract is for phase II of the Ghasha field project. Its scope involves shallow-water survey operations for a period of nine months. (October 2016)
  • The Hail and Ghasha fields’ sour gas reservoirs project has been hit by delays. FEED contract was tendered in 2016, but the tender has now been suspended with no deadline in place. (February 2017)
  • Bids for PMC contract for Hail & Ghasha offshore gas developments have been submitted to Occidental Petroleum. The bidders are WorleyParsons of Australia, TechnipFMC of France, Amec Foster Wheeler of UK and Penspen and KBR of US. The PMC contractor will be responsible for the consultancy related to preliminary design, surveys and detailed design for the artificial islands. (March 2017)
  • A contract to deliver a range of environmental consultancy services for the development of sour gas reservoirs at the Hail and Ghasha fields in the UAE has been awarded to Arcadis of Netherlands. Arcadis will perform environmental consultancy services including the oversight and project management of all the environmental baseline surveys being carried out, all the reporting and co-ordination between Adnoc and the Environmental Agency in Abu Dhabi (EAD). Arcadis will conduct a health, safety and environmental impact assessment (HSEIA) study, to support its work in developing the gas fields. (June 2017)
  • Oxy has awarded the project management contract (PMC) to KBR of US for Dalma and Hail & Ghasha fields. (August 2017)
  • KBR of US has won the project management consultancy (PMC) contract to manage front-end engineering and design for Hail & Ghasha development. KBR will also perform PMC services for the detailed engineering phase of the project. This work is expected to be performed over a two-year period. (August 2017)
  • Bids have been submitted to carry out the engineering design works. The bidders are: Bechtel Corporation, Fluor Corporation, Technip, and WorleyParsons. (December 2017)
  • FEED contract for the Hail and Ghasha offshore ultra sour gas mega project has been awarded to Bechtel Corporation. (January 2018)
  • Bechtel has confirmed it has been awarded a FEED contract for work on the ADNOC’s offshore Hail and Ghasha sour gas fields. (February 2018)
  • EPC contracts are scheduled to be issued in Q4, 2018 for the development of Hail and Ghasha project. Client prepares to tender 3 EPC packages as part of the project. Currently, the project is in the FEED phase. Artelia of France is carrying out detailed engineering work for the artificial islands, while Bechtel of US is carrying out feed for all other facilities associated with the project. (June 2018)
  • Companies have been invited to submit bids by 12 July, 2018 for a contract to build a series of islands for the Hail and Ghasha offshore ultra sour gas mega project. It will include a minimum of eleven offshore artificial islands to be designed and constructed. (June 2018)
  • The bid deadline has been extended to 26 August for the contract to reclaim a series of offshore islands for development of Hail and Ghasha sour gas fields. At least nine firms have been invited to bid. (July 2018)
  • The Abu Dhabi government and the Abu Dhabi National Oil Company (Adnoc) have signed an agreement with Eni of Italy, awarding it a 25 percent stake in its offshore ultra-sour gas mega project - the Ghasha Concession that consists of the Hail, Ghasha, Dalma and other offshore fields. The concession has a term of 40 years. Adnoc will retain the majority 60 per cent stake in offshore concession. (November 2018)
  • Wintershall Holding will contribute 10 percent of the project capital and operational development expenses of the Ghasha ultra-sour gas mega-project which consists of the Hail, Ghasha, Dalma and other offshore sour gas fields, including Nasr, SARB and Mubarraz. (November 2018)
  • Contractors are preparing to submit pre-qualification documents by 26 January for work on Adnoc’s Hail and Ghasha sour gas scheme. (January 2019)
  • The pre-qualification documents have been submitted for four main packages of Hail and Ghasha development project. (January 2019)
  • ADNOC has awarded AED 5 billion (US 1.36 billion) dredging, land reclamation and marine construction contract to National Marine Dredging Company (NMDC) of Abu Dhabi to build multiple artificial islands in the first phase of development of the Ghasha Concession. Under the contract, NMDC will construct 10 new artificial islands and two causeways, as well as expand an existing island, Al Ghaf. The project will provide the infrastructure required to further develop, drill and produce gas from the sour gas fields in the Ghasha Concession. At peak construction, the project is expected to employ over 3,500 people. The project is expected to take 38 months to complete. (February 2019)
  • Tender for the main EPC contract on Hail and Ghasha sour gas megaproject is set to be issued in May. The companies submitting pre-qualification documents include: GS Engineering & Construction of South Korea, Hyundai Engineering & Construction of South Korea, JGC of Japan, Larsen & Toubro of India, McDermott of US, Petrofac of UK, Saipem of Italy, and Samsung Engineering of South Korea. (April 2019)
  • ADNOC has asked the pre-qualified firms to form joint ventures or consortiums among themselves while bidding for the two main EPC packages 1 & 4. The companies invited are: GS Engineering & Construction of South Korea, Hyundai Engineering & Construction of South Korea, JGC of Japan, Larsen & Toubro of India, McDermott of US, Petrofac of UK, Saipem of Italy, and Samsung Engineering of South Korea. The two packages 1 and 4 are expected to be worth $2bn and $5bn, respectively. (May 2019)
  • Adnoc has invited bids for package 3 and 4, in last week of June, and first week of July, respectively. Bid submission deadline for package 3 and 4 is 9 September. Package 4 is understood to be the biggest package, having a contract value of between $4bn and $6bn. (July 2019)
  • Adnoc has invited the pre-qualified firms to bid for package 1, estimated to be between $3.5bn and $4bn, of the project by the third week of September. Adnoc has waived an earlier mandatory requirement for pre-qualified contractors to form joint ventures to bid for the project’s packages. Bids for package 2 are expected to be invited in the next few weeks. (July 2019)
  • ADNOC has invited pre-qualified firms to bid for the package 2 of its Hail and Ghasha sour gas project by the third week of September. The package 2, valued at around $2 billion, entails building the Ghasha processing plant and central living quarters. (September 2019)
  • 3 PMC firms have been selected for the Hail, Ghasha and Dalma sour gas field development projects. They are - KBR of US, SNC-Lavalin of Canada, Technip of France. The three PMC firms selected will manage a total of nine packages – 2 packages for $2bn Dalma sour gas project, 5 packages for $10bn Hail and Ghasha sour gas project, and 2 packages for a deep gas extraction project, which will be tendered soon. The Hail, Ghasha and Dalma sour gas fields together comprises the Ghasha offshore concession. (September 2019)
  • The EPC bid submission deadline has been extended. For the onshore packages 3 and 4, it is 13 October, 2019, and for the offshore packages 1 and 2, bids are now due to be submitted by 30 October, 2019. (October 2019)
  • ADNOC has awarded LUKOIL’s unit a 5 per cent stake in Gasha ultra-sour gas concession for an initial investment of AED 697.3 million ($190 million), which includes Hail, Gasha, Dalma and other offshore sour gas fields in Abu Dhabi. (October 2019)
  • The technical bids for the 4 EPC packages have been submitted. The bidders are: Package 1 - Saipem of Italy / NPCC of UAE, McDermott of US / Tecnicas Reunidas of Spain, Archirodon of Greece / Sinopec Engineering of China, and Petrofac of UK; Package 2 - Petrofac of UK / Samsung Engineering of South Korea, Saipem of Italy / China Petroleum Engineering & Construction Corporation (CPECC) / NPCC of UAE, Hyundai Engineering & Construction of South Korea, Archirodon of Greece / Sinopec Engineering of China; Package 3 - Samsung Engineering of South Korea / Petrofac of UK, Archirodon of Greece / Sinopec Engineering of China / Consolidated Contractors Company of Lebanon, Dodsal of India, Tecnimont of Italy; Package 4 - Petrofac of UK / Samsung Engineering of South Korea, Tecnicas Reunidas of Spain / McDermott of US, Tecnimont of Italy / Larsen & Toubro Hydrocarbon Engineering (LTHE) of India, Saipem of Italy / CPECC. (November 2019)
  • Adnoc has awarded the PMC contracts worth $350 million for its Ghasha sour gas field development projects. The PMC firms appointed are: KBR of US, SNC-Lavalin of Canada, Technip of France. KBR has been appointed as the lead project management firm for the ghasha offshore concession. (January 2020)
  • Abu Dhabi National Oil Company (ADNOC) has invited commercial bids for the four main packages of its estimated $20bn Hail and Ghasha sour gas field development project. Last date to submit the bids is 29 March, 2020. (March 2020)
  • The commercial bids submission deadline for the four main packages of the project has been extended again. Last bid submission deadline was 22 April, 20020. (April 2020)
  • Adnoc has extended the commercial bids submission deadline for the four main packages of the project. Due to the coronavirus crisis the bidding process has been delayed by six months. Bids are now due to be submitted in last week of October, 2020. (August 2020)
  • Adnoc has further extended the commercial bids submission deadline for the four main packages of its Hail and Ghasha sour gas field development project. Bids are now due to be submitted by 10 January, 2021, extended from the previous deadline of 10 December, 2020. (December 2020)
  • Adnoc has once again extended the commercial bids submission deadline for the four main packages of its Hail and Ghasha sour gas field development project. Bids are now due to be submitted by 24 January, 2021. (January 2021)
  • Adnoc has further extended the commercial bids submission deadline for the four main packages of the project to 17 February, 2021. (February 2021)
  • The commercial bids have been submitted for Packages-1, 2, 3 & 4. (March 2021)
  • Construction works are in progress on the reclamation package and expected to complete by 2022. (March 2021)
  • According to the industry sources the project will be re-feed soon as the bids received are too expensive. (May 2021)
  • Adnoc has issued notifications about its plan to invite new bids for fresh study, pre-front-end engineering and design (feed) and feed works on the Hail and Ghasha project. Companies invited are: Fluor Corporation of US, KBR of US, Technip Energies of France, Wood Group of UK, Worley of Australia. Cost optimization said to be the prime reason for restarting the project. (August 2021)
  • Adnoc has received revised technical bids for fresh study and front-end engineering and design (feed) works on the Hail and Ghasha scheme. Companies submitting bids for study/pre-feed and feed works are understood to include: • Fluor Corporation of US, • Technip Energies of France, • Worley of Australia. (October 2021)
  • Adnoc has awarded the contract to Technip Energies of France for fresh study and front-end engineering and design (feed) works for Package-1,2,3 & 4 on the Hail and Ghasha scheme. (December 2021)
  • The pre-qualification documents have been submitted for works on the sour gas megaproject. (March 2022)
  • Adnoc has awarded contracts worth $2 billion (AED7.49 billion) to Adnoc Drilling for the Hail and Ghasha Sour Gas Development Project. The contracts comprise $1.3 billion for integrated drilling services and fluids and $711 million for providing four Island Drilling Units. A third contract, valued at $681 million was awarded to Adnoc Logistics & Services for providing offshore logistics and marine support services. All three of the contracts will cover the Hail and Ghasha drilling campaign for a maximum of ten years. (August 2022)
  • China Petroleum Pipeline (CPP) Engineering Co. Ltd announced that ADNOC Sour Gas and CPP Design Institute Abu Dhabi Branch signed a three-year design consulting service contract. CPP will directly participates in the design consulting services of all ADNOC Sour Gas projects in the coming three years. (August 2022)
  • Adnoc is making headway with the project. The client had received bids for the main contract on the project and FEED works are ongoing. The bidders for the EPC contract include the consortiums led by: • Samsung Engineering, • Technip Energies, • Tecnimont. (November 2022)
  • Adnoc has signed pre-construction service agreements (PCSAs) with Technip Energies, Samsung Engineering and Tecnimont at a contract value of around $80 million for the onshore facilities of the Hail and Ghasha sour gas scheme. The PCSA phase follows the successful completion of an updated FEED for the entire development, executed by Technip Energies. This next phase covers early project activities for onshore facilities, such as initial detailed engineering and procurement services of critical long lead items. The PCSA scope of work also includes the preparation of an open book cost estimate for the project delivery of the onshore scope, which will be considered as part of the client’s final investment decision making process. (January 2023)
  • Adnoc has signed pre-construction service agreement (PCSA) for the offshore packages of its Hail and Ghasha sour gas field development. Under the terms of the PCSA, Saipem of Italy, National Petroleum Construction Company (NPCC) of Abu Dhabi and China Petroleum Engineering & Construction Company (CPECC) will work together on the offshore package, which covers the installation of offshore platforms, gas compression facilities and more than 400 kilometres of subsea pipelines. The estimated values of the PCSA is $60mn. The scope of work includes early project activities such as initial detailed engineering and procurement of critical Long Lead items. The agreement will also see the joint venture partners prepare an open book estimate for the full project delivery scope, which will be considered as part of Adnoc’s final investment decision making process. The award of the final EPC contracts is expected to take place before the end of this year. (February 2023)
  • Detailed engineering works are underway on the Early Development Offshore package of the project. (April 2023)
  • Adnoc has re-invited firms to express interest for the main contract for the onshore facilities of its Hail and Ghasha sour gas scheme. Last date to submit EoI documents is 14 May, 2023. The pre-construction service agreements (PCSAs) signed earlier in January with Technip Energies, Samsung Engineering and Tecnimont at a contract value of around $80 million, has been cancelled. (May 2023)
  • Adnoc has received revised Expression of Interest (EoIs) for the main contract for the onshore facilities of its Hail and Ghasha sour gas scheme. (May 2023)
  • Adnoc has received revised EoIs for the Onshore Package for Early Development Works at the Hail and Ghasha sour gas scheme. The companies submitting EoIs include: L&T, Samsung Engineering, Technip Energies, Tecnimont. (August 2023)
  • A $100 million subcontract for the Hail and Ghasha sour gas project has been awarded TWMA, a drilling waste management company. TWMA will deploy RotoMill solution alongside its newly launched XLink cloud based real time monitoring technology across four artificial island drilling units to promote efficiency while minimizing the project’s carbon footprint. Under this five-year contract win, TWMA will handle, process and recycle all drilling waste generated from the site. Adhering to the nation’s in-county value programme (ICV), 90% of the manufacturing and fabrication work for the project will take place in Abu Dhabi. (October 2023)
  • Adnoc has awarded a contract worth about $8.2 billion to Saipem for the Package 1 of the Hail and Ghasha sour gas scheme, in consortium with National Petroleum Construction Company (NPCC). Saipem's share of the contract amounts to around $4.1 billion. The contract scope of work encompasses the Engineering, Procurement and Construction (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 km of subsea pipelines. Saipem will leverage on its state-of-the-art shallow water offshore vessels, its advanced welding technology for corrosion resistant materials, as well as its renowned engineering expertise. Furthermore, Saipem will work with ADNOC to continue the project's focus on biodiversity and responsible environmental stewardship. (October 2023)
  • Adnoc has awarded the Engineering, Procurement and Construction (EPC) contract worth $8.74bn to Tecnimont for the onshore package of the Hail and Ghasha sour gas scheme. The contract will deliver the onshore scope, including CO2 and sulphur recovery and handling. The scope of work includes the construction of Manayif onshore processing plant, two gas processing units, sulfur recovery sections, laying of 231.7 km onshore pipeline, and utilities and offsite works. (October 2023)
  • ADNOC takes the final investment decision and award of contracts for the Hail and Ghasha Offshore Development project. The project aims to operate with net zero carbon dioxide (CO2) emissions, reinforcing ADNOC’s legacy of responsible energy production and supporting its Net Zero by 2045 ambition and accelerated decarbonization plan. (October 2023)
  • Finishing works are ongoing as per the schedule on the Reclamation Package of the project. (November 2023)
  • Construction works are yet to commence on the onshore package of the project. (December 2023)
Project Contract Awards - Feed
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
Project Contract Awards - PMC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • Amec Foster Wheeler of UK
  • KBR of US
  • Penspen
  • SNC Lavalin
  • Worley Parsons
  • TechnipFMC
  • Amec Foster Wheeler of UK
  • KBR of US
  • Penspen
  • SNC Lavalin
  • TechnipFMC
  • Worley Parsons
  • KBR of US
  • SNC Lavalin
  • TechnipFMC
Project Contract Awards - EPC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • Dodsal
  • Hyundai Engineering & Construction Co Ltd.
  • Technimont
  • Technip
  • Tecnimont
  • Samsung Engineering
  • Petrofac .UK.
  • Petrofac of UK / Samsung Engineering of South Korea
  • Saipem of Italy / NPCC of UAE
  • McDermott of US / Tecnicas Reunidas of Spain
  • Archirodon of Greece / Sinopec Engineering of China
  • Saipem of Italy / China Petroleum Engineering & Construction Corporation (CPECC) / NPCC of UAE
  • Archirodon of Greece / Sinopec Engineering of China / Consolidated Contractors Company of Lebanon
  • Tecnimont of Italy / Larsen & Toubro Hydrocarbon Engineering (LTHE) of India
  • Saipem of Italy / CPECC
  • Saipem of Italy / NPCC of UAE
  • Samsung Engineering
  • Technip
  • Tecnimont
  • Saipem of Italy / NPCC of UAE(Offshore Package ($8.2 billion ))
  • Tecnimont(Onshore Package ($8.74 billion ))
Related Projects
Adnoc’s Dalma Offshore O&G Field Development Project
Project Schedule

June 2016: Invitation to Bid for FEED

August 2017: Contract Awarded PMC

December 2017: Bids Submission FEEB

January 2018: Contract Awarded FEED

June 2019: ITB for EPC of package 3

July 2019:  ITB for EPC of package 4,1

November 2019: Bids Submission EPC

January 2020: Contract Award PMC

March 2021: EPC Commercial Bids Submission

October 2021: Revised Bids Submission for FEED

December 2021: Revised FEED Contract Awarded

October 2022: Revised Bids Submission for EPC

January 2023: PCSA Signed for Onshore Package

February 2023: PCSA Signed for Offshore Package

August 2023: EoI Submitted for Onshore Package for Early Development Works

October 2023: Contract Award EPC

Q4, 2027: Expected start-up and commissioning

Project Scope

The project scope involves the development of sour gas reservoirs at the Hail and Ghasha fields in the UAE.

 

Oxy carried out the technical evaluation which includes 3D seismic surveys, the drilling of appraisal wells and conducting engineering studies for the fields’ development. 

 

The Hail and Ghasha fields lie in the Persian Gulf and have remained undeveloped for years due to technical challenges and environmental issues. Ghasha is estimated to hold more than 5 trillion cubic feet of gas. The combined Hail & Ghasha sour gas development is expected to add about 1 billion cubic feet per day of gas output for Abu Dhabi.

 

Austria’s OMV will carry out the tender process for the full field FEED and PMC of Hail & Ghasha.

 

The engineering, procurement, construction and installation (EPCI) scope of works on the project has been divided into four packages – with packages 1 and 2 covering the offshore aspect, and packages 3 and 4 the onshore scope. 

 

The 4 packages include:
1. Package 1 ($3bn): Offshore drill centres and subsea pipelines, platforms for compression facilities 
2. Package 2 ($2bn): Ghasha offshore processing plant and central living quarters 
3. Package 3 ($3bn): Manayif utilities and offsites/pipelines and tie-ins, main control building, early works and non-process buildings 
4. Package 4 ($10bn): Manayif main process plant (including gas gathering, processing, sulphur recovery unit)

 

A fifth package, relating to early civil works and building of support structures on the project, has been awarded to local contractor Al-Jaber Energy Services.

 

The Hail, Ghasha and Dalma ultra-sour gas project is expected to produce more than 1.5 billion cu ft of gas per day. The Ghasha Concession is expected to produce enough gas to provide electricity to more than two million homes. Once complete, the project will also produce over 120,000 barrels of oil and high value condensate per day.

 

Al Hosn Gas is an Adnoc subsidiary in which the latter has a 60% stake and is partnered by Oxy. Adnoc teamed up with Oxy and Austria’s OMV in 2016 in a partnership that may lead to the development of large offshore sour gas fields. The technical evaluation agreement among the trio covers several undeveloped oil and gas fields off Abu Dhabi’s north-west coast, including the Ghasha and Hail area. 

Project Structure:
The project is owned, operated and managed by Abu Dhabi National Oil Company (Adnoc).
AbdullahNasser Al Suweidi
Address: Abu Dhabi National Oil Company Building, Al Kornish Street, P.O. Box 898, Abu Dhabi, United Arab Emirates
Designation: Vice Chief Executive Officer and Director
Department: Abu Dhabi National Oil Company
Phone: +971 2602-0000
Fax: +971 2602-3389
Email: info@adnoc.ae