Abu Dhabi Nationwide Oil Firm (ADNOC) and its companions have efficiently secured a structured financing transaction of as much as AED40.4 billion (US$11 billion) to monetise Hail and Ghasha’s midstream future fuel manufacturing.
The Ghasha concession, positioned offshore Abu Dhabi, is ready to supply 1.8 billion customary cubic toes per day (bscfd) of fuel. The non-recourse financing transaction, distinctive for an vitality challenge of this scale and complexity, permits ADNOC to grasp upfront worth for its merchandise at aggressive charges.
Along with offering instant entry to capital, the financing construction introduces an progressive industrial mannequin that ring-fences midstream services and operations, which permits ADNOC and its companions (Eni S.p.A. and PTT Exploration and Manufacturing Public Firm Restricted) to boost low-cost funding whereas retaining strategic and operational management of the property.
Dr Sultan Ahmed Al Jaber, Minister of Trade and Superior Expertise and ADNOC Managing Director and Group CEO, stated: “This landmark transaction builds on ADNOC’s profitable observe report of world vitality partnerships and unlocks capital to drive progress at Hail and Ghasha, one of many world’s most bold offshore fuel initiatives.
“The distinctive demand from over 20 main world and regional monetary establishments reinforces confidence in ADNOC’s worth creation technique, progressive method to financing, and confirmed observe report in delivering mega initiatives.”
The transaction, as a part of the Ghasha concession challenge, will allow accountable vitality manufacturing wanted to fulfill the rising calls for of native industries.
Over 60 per cent of the funding worth of the complete challenge will movement again into the UAE’s financial system beneath ADNOC’s In-Nation Worth (ICV) programme, reinforcing ADNOC’s dedication to making sure extra financial worth stays within the nation from the contracts it awards.
The financial institution consortium consists of Abu Dhabi Business Financial institution, Abu Dhabi Islamic Financial institution, Agricultural Financial institution of China, Financial institution of China, Citibank, The Improvement Financial institution of Singapore, Dubai Islamic Financial institution, Emirates Improvement Financial institution, Emirates NBD, First Abu Dhabi Financial institution, Gulf Funding Financial institution, Industrial and Business Financial institution of China, Mashreq Financial institution, Mizuho Financial institution, MUFG Financial institution, Natixis, Nationwide Financial institution of Kuwait, Sharjah Islamic Financial institution, Sumitomo Mitsui Banking Company, Saudi Nationwide Financial institution and Normal Chartered Financial institution.
It’s the newest in a sequence of pioneering infrastructure improvement partnerships that ADNOC has executed over the previous decade, together with the US$4.9 billion (AED18 billion) oil pipeline partnership, and the US$10.1 billion (AED37.1 billion) fuel pipeline settlement, with a number of the world’s main world infrastructure and institutional traders.
ADNOC has additionally been concerned in pioneering BOOT (build-own-operate-transfer) initiatives such because the US$3.8 billion (AED14 billion) challenge to energy and decarbonise offshore operations and the US$2.2 billion (AED8.3 billion) challenge to ship sustainable water provides to onshore operations.
Hail and Ghasha is the world’s first fuel improvement that goals for net-zero emissions. The challenge will seize 1.5 million tonnes per yr (mtpa) of carbon dioxide, equal to eradicating over 300,000 fuel-powered vehicles off the street yearly, and goals to deploy totally unmanned offshore operations.
