Brodies Middle East LLP advised ADNOC on the highly complex, onshore and offshore USD 17 billion engineering, procurement and construction (EPC) contracts for the Hail and Ghasha Sour Gas Development Project. The EPC Contracts are among the highest value contract awards of their kind in the Middle East Region and globally, in any sector, in 2023.

The project is of strategic importance to ADNOC and state significance to the United Arab Emirates, with the Ghasha Concession expected to produce more than 1.5 billion standard cubic feet per day (bscfd) of gas before the end of the decade, contributing to UAE gas self-sufficiency.

The Hail and Ghasha Project is pioneering for ADNOC, aiming to be the first of its kind in the world to operate with net zero carbon dioxide (CO2) emissions. CO2 will be captured, transported onshore and stored underground, while low-carbon hydrogen is produced that can replace fuel gas and further reduce emissions.

The Hail and Ghasha Development Project is a world-first gas project that will play a vital role in meeting the UAE's goal of gas self-sufficiency and rising demand for exports. Due to its pioneering design to combine innovative decarbonization technologies into one integrated solution, with the ambition to make this a net zero project, we sought legal expertise with the ability to handle complex, high value, onshore and offshore EPC contracts.

Daniel Page, Vice President, Legal Operations Construction & Real Estate, ADNOC Group Legal

Key highlights:

Over the course of four years, Brodies successfully delivered all of the material project agreements for the Hail and Ghasha Project, including:

  • engineering, procurement and construction agreements (EPC) for onshore and offshore packages with an award value of USD 17 billion;
  • technology licensing agreements;
  • technology tripartite agreements;
  • technology amendment and restatement agreements; and
  • pre-construction services agreements (PCSA's) for onshore and offshore packages.

Outcome

The offshore EPC Contract, with an overall award value of approximately USD 8.2 billion, awarded to a joint venture between Saipem and National Petroleum Construction Company (NPCC) will build four drilling centres and one processing plant as well as various offshore structures and more than 300km of subsea pipelines. The Hail and Ghasha Project utilizes world class innovation and class leading solutions through the construction of a series of offshore man made artificial islands which allows greater flexibility for extended reach drilling and fewer wells when compared to conventional offshore operations, eliminating the need to dredge over 100 locations for wells.

The onshore EPC Contract, with an overall award value of approximately USD 8.7 billion, awarded to Italian engineering group Maire, will deliver two gas processing units, three sulphur recovery sections, the associated utilities and offsites as well as export pipelines.

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