Funding secured for Adnoc’s $2.2bn water supply project

Adnoc

Abu Dhabi National Oil Company (Adnoc) and Abu Dhabi National Energy Company (Taqa) have completed the financial closing of a AED8.3 billion ($2.2 billion) project to provide a sustainable water supply for Adnoc’s onshore operations.

The investment by the two Abu Dhabi energy majors aims to develop and operate facilities to sustainably treat and supply seawater for Adnoc’s operations at the Bab and Bu Hasa oil and gas fields in Abu Dhabi.

A consortium consisting of Orascom Construction and Metito will construct a centralised seawater treatment facility and transportation and distribution network.

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The project is expected to reduce water injection-related energy consumption by up to 30 percent by replacing the current high-salinity, deep aquifer water systems at the fields.

The project will likely receive 100 percent of its power from clean energy sources as it is connected to the grid.

Adnoc and Taqa own a joint 51 percent majority stake (25.5 percent each), with a consortium owning the remaining 49 percent stake in the project company that will develop the project under a build, own, operate and transfer model.

The project will be transferred to Adnoc after 30 years of operation.

The water supply project will be financed by a group of nine local and international banks through commercial and Islamic finance facilities. The project sponsors will provide the balance of the project cost based on their stakes.

Abdulmunim Al Kindy, Adnoc upstream executive director, said: “This strategic sustainable investment is a further example of how Adnoc is transforming, decarbonising and future-proofing our operations as we fully embrace the energy transition. This innovative project will equip our onshore operations with an energy-efficient water supply, significantly reducing our carbon footprint.”

Jasim Husain Thabet, group CEO at Taqa, said: “We have reached financial close on this important project, which has progressed rapidly since its inception.”

As part of Adnoc’s in-country value programme, more than 60 percent of the project value is expected to flow back into the UAE’s economy.