Wedoany.com Report-Dec.19, Abu Dhabi National Oil Company (ADNOC) has obtained $11 billion in structured financing to advance future gas production from the Hail and Ghasha development, the company announced on Thursday. This follows the recent transfer of a stake previously held by Russia's Lukoil.

The arrangement, concluded with partners Eni and PTTEP, engages 20 banks from various regions. It employs a pre-export finance approach secured by anticipated gas volumes, enabling access to funds well ahead of initial output, projected by the end of the decade.

This initiative aligns with ADNOC's broader efforts to optimize its financial resources and expand as a prominent global energy entity. Prior actions include infrastructure lease arrangements, public listings of several subsidiaries to secure substantial capital, and the establishment of XRG, an international investment division now managing assets exceeding $150 billion, among them Germany's Covestro.

"It's the first-ever greenfield gas-based pre-export finance," a source close to the deal said, adding it allows ADNOC to lower the equity contribution and improve returns.

The financing features non-recourse terms and includes participation from 11 local and regional banks, seven Asian institutions, and three Western lenders, such as Citi, Bank of China, and ICBC.

"It's probably the largest participation from Chinese banks in a pre-export finance facility in the Middle East ever," the source said, adding ADNOC secured attractive rates.

For context, Chinese banks provided over a third of the funding for Saudi Aramco's Jafurah development, a major shale gas initiative outside the United States targeting 2 billion standard cubic feet per day by 2030.

ADNOC CEO Sultan Al Jaber stated that Hail and Ghasha "is an important contributor to ADNOC's gas strategy and is on track to generate significant value." The project targets production of 1.8 billion cubic feet per day of gas while aiming for net-zero emissions.