Abu Dhabi National Oil Company (ADNOC) has secured $11 billion in financing from 20 global and regional banks to fund future gas production at its ADNOC Hail Ghasha gas projects, following Lukoil’s exit.
ADNOC Gains Funding Amid Lukoil Exit
ADNOC’s new financing uses a pre-export model backed by expected gas output from the ADNOC Hail Ghasha gas projects, providing upfront cash years before production, which is projected to start by the end of the decade.
Lukoil, which had doubled its Ghasha stake to 10% earlier this year, transferred its share to ADNOC in November after U.S. sanctions targeted Russian companies. An ADNOC spokesperson told Reuters, “Lukoil’s exit allows ADNOC to consolidate control and streamline development.”
Industry sources described the financing as a first-of-its-kind greenfield gas-based pre-export deal. “It lowers ADNOC’s equity contribution while improving project returns,” one source said. The company’s move signals an aggressive strategy to fund growth and expand its global energy footprint.
Chinese Banks Drive Major Pre-Export Deal
The $11 billion facility includes 11 local and regional banks, seven Asian lenders, and three Western institutions, such as Citi, Bank of China, and ICBC. Asian banks provided a significant portion of the financing, reflecting strong appetite for Middle East energy assets, including the ADNOC Hail Ghasha gas projects.
“It’s probably the largest participation from Chinese banks in a pre-export finance facility in the Middle East ever,” a source close to the deal said. “ADNOC secured highly competitive rates in a challenging market.”
Analysts note ADNOC’s past financial maneuvers, including lease-leaseback deals and subsidiary listings, have helped it raise billions of dollars for infrastructure and expansion. Its international investment arm, XRG, now manages over $150 billion in global assets, including a stake in Germany’s Covestro.
Gas Production Set to Begin Before 2030
The Hail and Ghasha developments are expected to produce 1.8 billion cubic feet per day of gas with net-zero emissions, making the ADNOC Hail Ghasha gas projects key contributors to ADNOC’s long-term energy strategy.
ADNOC CEO Sultan Al Jaber said in a statement, “Hail and Ghasha is an important contributor to ADNOC’s gas strategy and is on track to generate significant value.” He emphasized the projects’ role in meeting growing Asian gas demand.
Analysts say the financing positions ADNOC to capitalize on robust regional energy demand and secure early cash flow for one of the Middle East’s largest gas developments.
Industry watchers view ADNOC’s strategy as part of a broader effort to transition from a regional oil and gas producer into a global energy major. By leveraging its balance sheet and pre-export financing models, ADNOC is reducing risk while maintaining control of key assets such as the ADNOC Hail Ghasha gas projects.
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