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March 3, 2024

ADNOC & TAQA reach financial close on sustainable water supply project

ADNOC and Abu Dhabi National Energy Company (TAQA) have completed the financial closing of their $2.2 billion (AED8.3 billion) strategic project in order to provide sustainable water supply for ADNOC’s onshore operations.

This strategic investment between two Abu Dhabi energy giants entails developing and operating facilities to sustainably treat and supply seawater for ADNOC’s operations at the Bab and Bu Hasa fields in Abu Dhabi, furthering ADNOC’s efforts to decarbonize, transform, and future-proof its business.

A consortium comprised of Orascom Construction and Metito (the Consortium) will construct a centralized world-class seawater treatment facility and transportation and distribution network.

ADNOC and TAQA own a joint 51 percent majority stake (25.5 percent each), with the Consortium owning the remaining 49 percent stake in the project company, which will develop the project under a build, own, operate, and transfer (BOOT) model, with the full project being transferred to ADNOC after 30 years of operation.

The project will be financed by a group of nine local and international banks, including First Abu Dhabi Bank (FAB), Gulf International Bank (GIB), Natixis, Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (ADIB), Commercial Bank of Dubai (CBD), Emirates NBD (ENBD), Emirates Development Bank (EDB) and Warba Bank through a combination of commercial and Islamic finance facilities.

According to the statement, the balance of the project cost will be provided by the project sponsors in accordance with their equity shares.

Mr. Abdulmunim Al Kindy, ADNOC Upstream Executive Director, said that, “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.”

“At the same time, we are delighted to collaborate with TAQA to deliver another innovative project that will drive long-term value to Abu Dhabi and the UAE. As we accelerate our transformational journey to a lower-carbon future, this innovative project will equip our onshore operations with an energy-efficient water supply, significantly reducing our carbon footprint,” Mr. Al Kindy added.