Abu Dhabi National Oil Company (ADNOC) announced Thursday the successful signing of a landmark structured financing transaction worth up to USD 11 billion (AED 40.4 billion) for the Hail and Ghasha gas development project. The financing, executed in partnership with Eni S.p.A. and PTT Exploration and Production Public Company Limited (PTTEP), will monetize the project's midstream future gas production.

The transaction attracted participation from over 20 leading global and regional financial institutions, demonstrating confidence in ADNOC's growth strategy and proven track record in delivering large-scale projects. The non-recourse structured financing is designed to strengthen the project's resilience and economics while providing ADNOC with immediate access to capital at competitive rates.

Project Scale and Environmental Innovation

Hail and Ghasha form part of the larger Ghasha Concession, located offshore Abu Dhabi, which is expected to produce 1.8 billion standard cubic feet per day of gas. The project represents a significant milestone as the world's first offshore gas project of its kind that aims to operate with net zero emissions.

The development will capture 1.5 million tonnes of carbon dioxide per year, equivalent to removing over 300,000 cars from the road annually. This environmental component positions the project as a pioneering example of sustainable energy development in the offshore gas sector.

Innovative Financing Structure

The non-recourse financing transaction is described as unique for an energy project of this scale and complexity. The structure enables ADNOC to realize upfront value for its products while introducing an innovative commercial model that ring-fences midstream processing facilities and operations.

This approach allows ADNOC and its partners to raise low-cost funding while retaining strategic and operational control of the assets. The midstream processing phase encompasses infrastructure for processing, handling, and delivering natural gas, condensate, and natural gas liquids. Under the financing framework, ADNOC and its partners commit to supply the outlined natural gas products through the midstream processing facilities, ensuring long-term product flows that underpin the financing structure.

ADNOC's reliability anchors the transaction as an upstream developer and long-term offtaker, as well as its efficient capital management and innovative financing track record. It provides financiers with robust long-term cash flows from high-quality assets, supported by strong contractual and structural protections.

Strategic Context and Previous Transactions

This financing transaction represents the latest in a series of ADNOC-led pioneering infrastructure development partnerships executed over the past decade. ADNOC's previous landmark transactions include a USD 4.9 billion oil pipeline partnership and a USD 10.1 billion gas pipeline agreement with leading global infrastructure and institutional investors.

The company has also undertaken pioneering build-own-operate-transfer (BOOT) projects, including a USD 3.8 billion project to power and decarbonize offshore operations and a USD 2.2 billion project to deliver sustainable water supplies to onshore operations.

His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, emphasized that the transaction builds on ADNOC's successful track record of global energy partnerships. He noted that exceptional demand from over 20 leading global and regional financial institutions reinforces confidence in ADNOC's value-creation strategy, innovative financing approach, and expertise in delivering mega projects.

Financial Institution Participation

The bank consortium includes a diverse range of international and regional financial institutions: Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Agricultural Bank of China, Bank of China, Citibank, The Development Bank of Singapore, Dubai Islamic Bank, Emirates Development Bank, Emirates NBD, First Abu Dhabi Bank, Gulf International Bank, Industrial and Commercial Bank of China, Mashreq Bank, Mizuho Bank, MUFG Bank, Natixis, National Bank of Kuwait, Sharjah Islamic Bank, Sumitomo Mitsui Banking Corporation, Saudi National Bank and Standard Chartered Bank.

The innovative financing structure for Hail and Ghasha offers a replicable model for large-scale greenfield projects. The project will benefit from ADNOC's industry-leading AI and advanced technologies, integrated in its state-of-the-art Thamama Center of Excellence.

Al Jaber stated that Hail and Ghasha are important contributors to ADNOC's gas strategy and are on track to generate significant value for ADNOC, its partners, and the UAE, while unlocking important new gas resources for customers.

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