Abu Dhabi National Oil Company (ADNOC) P.J.S.C. (“ADNOC”), in partnership with Eni S.p.A. (“Eni”) and PTT Exploration and Production Public Company Limited (“PTTEP”), announced the successful signing of a landmark structured financing transaction of up to $11 billion (AED 40.4 billion), to monetize Hail and Ghasha’s midstream future gas production.
Hail and Ghasha is part of the larger Ghasha Concession, located offshore Abu Dhabi, which is expected to produce 1.8 billion standard cubic feet per day (bscfd) of gas. It is also the world’s first offshore gas project of its kind that aims to operate with net zero emissions, capturing 1.5 million tonnes per year (mtpa) of carbon dioxide (CO2), equivalent to removing over 300,000 cars off the road every year.
The non-recourse financing transaction, unique for an energy project of this scale and complexity, enables ADNOC to realize upfront value for its products at competitive rates. In addition to providing immediate access to capital, the financing structure introduces an innovative commercial model that ring-fences midstream processing facilities and operations, which enables ADNOC and its partners to raise low-cost funding while retaining strategic and operational control of the assets. This financing transaction is the latest in a series of ADNOC-led pioneering infrastructure development partnerships that have been executed over the past decade.
ADNOC’s latest financing model follows a series of landmark midstream and infrastructure transactions, including a $4.9 billion (AED18 billion) oil pipeline partnership, and a $10.1 billion (AED 37.1 billion) gas pipeline agreement, with some of the world’s leading global infrastructure and institutional investors – as well as pioneering build-own-operate-transfer (BOOT) projects such as the $3.8 billion (AED14 billion) project to power and decarbonize offshore operations and the $2.2 billion (AED8.3 billion) project to deliver sustainable water supplies to onshore operations.
The innovative financing structure for Hail and Ghasha offers a replicable model for large-scale greenfield projects. The transaction is anchored by ADNOC’s reliability as an upstream developer and long-term offtaker, as well as its efficient capital management and innovative financing track record. It also provides financiers with robust long-term cash flows from high-quality assets, supported by strong contractual and structural protections.
