The oil corporation ADNOC, in collaboration with Abu Dhabi’s utility firm Taqa, has successfully concluded the financial arrangements for a $2.2B initiative to provide a sustainable water supply to ADNOC’s onshore operations.
This investment will entail the construction and operation of facilities dedicated to the sustainable treatment and provision of seawater for ADNOC’s activities in the Bab and Bu Hasa fields in Abu Dhabi. Over time, this will contribute to “advancing ADNOC’s objectives in terms of decarbonization, transformation, and safeguarding its long-term resilience.”
A consortium formed by Orascom Construction and Metito will be responsible for constructing the central seawater treatment facility and the related transportation and distribution network.
ADNOC and TAQA jointly hold a 51% stake in the project company (at 25.5% each), while Orascom and Metito possess the remaining share in the project, which will be developed under a build-own-operate-and-transfer (BOOT) framework.
Upon the completion of 30 years, the entire project will be transferred to ADNOC
“This strategic sustainable investment is a further example of how ADNOC is transforming, decarbonizing and future-proofing our operations as we fully embrace the energy transition,” said Abdulmunim Al Kindy, ADNOC’s Upstream Executive Director. “As we accelerate our transformational journey to a lower-carbon future, this innovative project will equip our onshore operations with energy-efficient water supply, significantly reducing our carbon footprint.”
Nine banks, which include First Abu Dhabi Bank, Gulf International Bank, Natixis, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, Emirates NBD, Emirates Development Bank, and Warba Bank, are actively involved in providing financial support.
The remaining portion of the project’s expenses will be covered by the project sponsors based on their respective ownership stakes.
The project is set to replace the high-salinity, deep aquifer water systems at ADNOC fields. It is anticipated that this initiative will decrease energy consumption associated with water injection by as much as 30%.
Additionally, the project will be connected to the grid and will derive all of its power from clean energy sources, according to Gulf News.
“We are proud to have reached financial close on this important project, which has progressed rapidly since its inception,” said Jasim Husain Thabet, Group CEO and Managing Director at Taqa.
