Abu Dhabi National Oil Company has awarded engineering, procurement and construction (EPC) contracts worth $5.1 billion for the development of the Umm Shaif Gas Cap in the emirate, which form part of the the $6.2-billion final investment decision on the project, that is expected to unlock over 600 million standard cu ft per day of natural gas by 2030.
The project is being developed in co-ordination with its international partners TotalEnergies, Eni and China National Petroleum Corporation (CNPC).
According to Adnoc, the FID for Umm Shaif Gas Cap is the latest milestone in the company’s gas growth strategy and will unlock more than 600 million standard cubic feet per day (scfd) of natural gas and associated gas liquids, equivalent to almost 10 per cent of the UAE’s current daily gas consumption.
It includes three EPC packages totalling $5.1 billion for large-scale offshore infrastructure awarded by ADNOC to consortiums including major UAE and international contractors.
The development also includes a $365 million contract for 14-well drilling and integrated drilling services programme to be delivered by ADNOC Drilling over 18 months using three existing rigs.
The investment will reinforce the UAE’s energy security and its role as a reliable global energy supplier.
Production from the development is expected by 2030, it stated.
On the contract award, Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: "ADNOC is accelerating its integrated gas strategy to further harness the UAE's vast gas resources and expand our global LNG platform, as global demand for natural gas continues to rise. The Umm Shaif Gas Cap FID is another important milestone in delivering this strategy and reinforcing ADNOC's position as a reliable gas supplier."
"Together with our international partners, we are building on decades of responsible stewardship of Abu Dhabi’s longest-operating offshore field to unlock lasting value for the UAE and our customers," he added.
The project is also builds on ADNOC’s launch of a global LNG marketing and trading platform in Abu Dhabi Global Market (ADGM), which is targeting 47 million tonnes per annum of combined marketable LNG capacity by 2035.
The UAE holds the seventh-largest gas reserves in the world. As global demand for reliable, lower-carbon energy continues to grow, ADNOC is unlocking more of the nation’s gas resources and expanding its liquefied natural gas (LNG) portfolio to meet the needs of its domestic and international customers and power industrial and artificial intelligence (AI) infrastructure growth.