ADNOC Secures Structural Financing Deal Worth AED 40.4 Billion for Hail and Ghasha Offshore Gas Project

Abu Dhabi National Oil Company (ADNOC) has announced, in partnership with Italy's Eni S.p.A. and PTT Exploration and Production Public Company Limited, a structural financing deal amounting to AED 40.4 billion (around $11 billion) to provide the necessary liquidity for developing the infrastructure for gas processing, transportation, and distribution within the Hail and Ghasha fields project.

According to a statement from ADNOC on Thursday, the Hail and Ghasha project is part of the Ghasha offshore concession located off the coast of Abu Dhabi, and it is expected to have a production capacity of approximately 1.8 billion standard cubic feet of gas per day, enhancing long-term gas supplies and supporting energy security.

The Hail and Ghasha project is classified as the world's first offshore gas project targeting net-zero carbon emissions by capturing up to 1.5 million tons of CO2 emissions annually, equivalent to removing over 300,000 cars from the roads each year, reflecting ADNOC's commitment to sustainable energy resource development.

The financing deal is non-recourse and represents an advanced model for large-scale energy projects, enabling ADNOC to achieve upfront value for its future products at competitive prices, with immediate access to high-efficiency funding resources without affecting operational ownership of the assets.

The financing structure relies on complete financial separation between infrastructure facilities and operational activities, ensuring asset protection while allowing for low-cost financing while maintaining strategic and operational control for ADNOC and its partners.

Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and CEO of ADNOC and its group of companies, stated that the deal enhances ADNOC's record in building successful global partnerships and provides the capital needed to accelerate the development of one of the world's most ambitious offshore gas projects, noting significant interest from over 20 regional and global financial institutions in participating in the financing.

Al Jaber explained that the Hail and Ghasha project is a fundamental pillar within ADNOC's gas strategy, progressing according to approved plans to achieve sustainable value for the UAE, ADNOC, and its partners, while contributing to meeting the growing demand for gas both locally and globally.

This financing model follows a series of leading transactions ADNOC has made in recent years, including an oil pipeline partnership worth AED 18 billion and a gas pipeline agreement worth AED 37.1 billion, along with projects based on build-own-operate-transfer in sustainable electricity and water sectors.

The financing structure for the Hail and Ghasha project represents a replicable model for large-scale comprehensive development projects, relying on ADNOC's strong financial position and its track record in financial innovation and capital management, while providing financing institutions with long-term cash flows from high-quality assets, supported by strong contractual structures, enhancing the attractiveness of investment in ADNOC's strategic projects.