ADNOC, Taqa close $3.8bn deal to decarbonise offshore operations

Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) have closed their $3.8bn strategic project to decarbonise ADNOC’s offshore production operations.

The project is a high-voltage direct current (HVDC) sub-sea transmission network in the MENA region, the company said in a statement.

Together with our partner @ADNOCGroup we closed a landmark transaction that will significantly decarbonize their offshore operations. pic.twitter.com/vMNVLIctua

— TAQA (@TAQAGroup) September 23, 2022

The consortium – comprising Korea Electric Power (KEPCO), Kyushu Electric Power Company (Kyuden) and Électricité de France (EDF) – will build, own, operate and transfer the transmission system alongside ADNOC and TAQA, with the full project being returned to ADNOC after 35 years of operation.

The development is expected to reduce the carbon footprint of ADNOC’s offshore operations by more than 30 per cent, replacing existing offshore gas turbine generators with more sustainable power sources available on the Abu Dhabi onshore power network, operated by TAQA’s wholly owned subsidiary, Abu Dhabi Transmission and Despatch Company (TRANSCO).

Construction of the project started in early 2022, while commercial operation is expected to commence in 2025. The project was announced in December 2021.

Read: Abu Dhabi’s ADNOC, Taqa announce $3.6bn project to decarbonise offshore operations

Over 50 per cent of the value of this project will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) programme.

Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Special Envoy for Climate Change and managing director and group CEO of ADNOC, said: “This innovative and first-of-its-kind project in the region is driving responsible and sustainable value creation into Abu Dhabi, further cementing the UAE’s standing as a trusted, go-to investment destination of global capital.”

“Reaching financial close is an important milestone for this distinctive project, which will see TAQA providing ADNOC offshore facilities with low-carbon energy securely and efficiently through TRANSCO’s power network system,” added Mohamed Hassan Alsuwaidi, chairman of TAQA.