Update
ADNOC Takes FID on World’s First Project That Aims to Operate with Net Zero Emissions ADNOC has announced the final investment decision and award of contracts for the Hail and Ghasha Offshore Development project. The project aims to operate with net zero carbon dioxide (CO2) emissions, reinforcing ADNOC’s legacy of responsible energy production and supporting its Net Zero by 2045 ambition and accelerated decarbonization plan. The awards, which comprise two engineering, procurement and construction (EPC) contracts, were signed at ADIPEC, the world’s largest energy industry gathering. Hail and Ghasha are part of Abu Dhabi’s Ghasha Concession which is set to produce more than 1.5 billion standard cubic feet per day (bscfd) of gas before the end of the decade, contributing to UAE gas selfsufficiency and ADNOC’s gas growth and export expansion plans. Over 60 percent of the investment value of the entire project will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program, reinforcing ADNOC’s commitment to ensuring more economic value remains in the country from the contracts it awards. Abdulmunim Al Kindy, ADNOC Upstream Executive Director, said: “The final investment decision, for Hail and Ghasha, is a major milestone for ADNOC and our strategic partners and we are delighted to progress this pioneering project with net zero carbon dioxide emissions, significantly boosting ADNOC’s carbon capture capacity as we work toward a lower carbon future. “The project will drive in-country value, provide highly skilled career opportunities for UAE Nationals and stimulate socio-economic growth for the nation. Natural gas is an important transition fuel and ADNOC will continue to responsibly unlock its gas resources to enable gas self-sufficiency for the UAE, grow our export capacity and support global energy security.” The Hail and Ghasha development design combines innovative decarbonization technologies into one integrated solution. The project will capture 1.5 million tonnes per year (mtpa) of CO2 taking ADNOC’s committed investment for carbon capture capacity to almost 4 mtpa. The CO2 will be captured, transported onshore and safely stored underground, while low-carbon hydrogen is produced that can replace fuel gas and further reduce emissions. The project will also leverage clean power from nuclear and renewable sources from the grid. The carbon captured at Hail and Ghasha will support ADNOC’s wider carbon management strategy, which aims to create a unique platform that connects all the sources of emissions and sequestration sites to accelerate the delivery of ADNOC and the UAE’s decarbonization goals. The final investment decision follows a recent announcement by ADNOC to double its carbon capture capacity target to 10 mtpa of CO2 by 2030. The first EPC contract for the offshore facilities includes facilities on artificial islands and subsea pipelines. It has been awarded to a joint venture between National Petroleum Construction Company and Saipem S.p.A. The second EPC contract will deliver the onshore scope, including CO2 and sulphur recovery and handling. It has been awarded to Tecnimont.
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Chevron CEO talks boosting oil production amid record demand Chevron Chairman and CEO Mike Wirth laid out how the company is working to increase U.S. shale production—especially in the Permian Basin—amid unprecedented demand during a recent Bloomberg News interview. “We’re going to see all-time record demand this year,” Wirth told anchor Alix Steele. “It will grow again in the year ahead.” The wide-ranging interview also touched on how Chevron is working to improve costs amid inflation. It’s doing so, in part, by drilling longer horizontal wells and reducing the time it takes to bring wells into production. The International Energy Agency said, in its latest oil market report, that while demand reached record highs in July, supply slumped to a nearly two-year low. The drop was attributed to the Kingdom of Saudi Arabia reducing its production by 1 million barrels per day. It has since extended its voluntarily output cut until the end of the year, further tightening supply. Wirth detailed how Chevron is trying to increase the amount of oil it recovers in the Permian and other U.S. oil fields to further boost production and offset inflation. To improve recovery rates, which are approximately 10%, Chevron is working on various drilling technologies and completion techniques. It currently produces more than 700,000 barrels of oil-equivalent per day in the Permian. “If we can improve recoveries, that changes the entire economic equation in a very profound way,” Wirth said. “We’re working hard on that.” Chevron expects to reach 1 million barrels of oil-equivalent per day in the Permian Basin by 2025.
