General – Finance
In partnership with Eni and PTTEP, ADNOC announced the signing of a landmark structured financing transaction worth up to $11 billion (£8.4 billion) to monetise the future gas production of Hail and Ghasha.
The Hail and Ghasha fields are part of the larger Ghasha Concession, which is located offshore in Abu Dhabi and is expected to produce 1.8 billion standard cubic feet per day (BSCF) of gas.
It is also the world’s first offshore gas project of its kind to aim for net zero emissions, capturing 1.5 million tonnes of carbon dioxide per year (MtCO₂), which is equivalent to taking over 300,000 cars off the road every year.
This non-recourse financing transaction is unique for an energy project of this scale and complexity. It enables ADNOC to realise upfront value for its products at competitive rates.
As well as providing immediate access to capital, the financing structure introduces an innovative commercial model that isolates midstream processing facilities and operations. This 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 pioneering infrastructure development partnerships led by ADNOC that have been executed over the past decade.
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.
