State-owned Abu Dhabi National Oil Company (ADNOC) has awarded a contract worth AED5bn (about US$1.36bn) to the UAE-based National Marine Dredging Company (NMDC) to build multiple artificial islands under the first phase of development of the Ghasha ultra-sour gas mega project in the Al Dhafra region (United Arab Emirates). As per the agreement, NMDC will construct 10 new artificial islands and two causeways, as well as expand the existing island of Al Ghaf. Upon completion, it will provide the infrastructure required to further develop, drill and produce gas from the neighbouring sour gas fields.
The 40-year Ghasha concession agreement includes the Hail, Ghasha, Dalma, Mubarraz and Nasr ultra-sour gas fields. The project is expected to produce more than 1.5 bcf/d of gas (42.4 mcm/d or 15.5 bcm/year) and 120,000 bbl/d of oil, when it comes online around the middle of the next decade. The gas produced from the Hail, Ghasha and Dalma fields could meet more than 20% of the United Arab Emirates' domestic demand in the near future.
ADNOC divested several stakes in the project to Eni, Wintershall and OMV throughout 2018. It remains the operator with a 60% stake, while Eni, Wintershall and OMV hold respectively 25%, 10% and 5%.