Adnoc allows extra time for Umm Shaif gas cap project prices

28 January 2026

 

The offshore oil and gas business of Abu Dhabi National Oil Company (Adnoc Offshore) has allowed contractors extra time to prepare commercial bids for a project to increase gas and condensate production from the Umm Shaif hydrocarbons field.

The primary objective of Adnoc Offshore’s Umm Shaif gas cap and surface pressure boosting project is to increase gas production by 550 million cubic feet a day (cf/d) and raise associated condensate output by 50,000 barrels a day (b/d).

Adnoc Offshore intends to feed about 520 million cf/d of the additional produced gas volumes into the sales gas grid of its parent company, Adnoc Group.

Contractors now have until 2 February to submit commercial bids for the project, according to sources. The previous deadlines for the submission of prices were 26 January and 5 January.

Adnoc Offshore has divided the engineering, procurement and construction (EPC) scope of the project’s first phase into three packages. The broad scopes of the two offshore packages and one onshore package are as follows:

  • Offshore package 1 – fabrication of a 30,000-tonne gas compression system
  • Offshore package 2 – fabrication of a 30,000-tonne gas compression system
  • Onshore package – EPC of gas inlet and processing systems on Das Island

Contractors submitted technical bids for the three EPC packages of the Umm Shaif gas cap and surface pressure boosting project by the deadline of 30 October.

The previous technical bid submission deadlines were 31 July, 1 September and 10 October, MEED previously reported.

The following contractors are among those that are understood to be bidding for the three EPC packages of the project:

Offshore package 1:

  • Saipem (Italy) / Seatrium (Singapore)
  • Larsen & Toubro Energy Hydrocarbon (India) / Lamprell (Saudi Arabia/UAE)
  • NMDC Energy (UAE) / Hyundai Heavy Industries (South Korea)

Offshore package 2:

  • China Offshore Oil Engineering Company (COOEC)
  • McDermott (US)
  • Larsen & Toubro Energy Hydrocarbon (India) / Lamprell (Saudi Arabia/UAE)
  • NMDC Energy (UAE) / Hyundai Heavy Industries (South Korea)

Onshore package:

  • Archirodon (Greece)
  • China Petroleum Engineering & Construction Company (CPECC)
  • Engineering for the Petroleum & Process Industries (Enppi; Egypt)
  • Galfar Emirates (UAE branch of Oman’s Galfar Engineering & Construction)
  • Target Engineering Construction Company (UAE)

Adnoc Offshore is understood to have issued the main EPC tender for the Umm Shaif gas cap and surface pressure boosting project in the first quarter of 2025.

Australian firm Worley has performed front-end engineering and design (feed) work on the project.

Umm Shaif gas production

Adnoc Offshore operates the Umm Shaif hydrocarbons development, which is located 150 kilometres (km) northwest of the city of Abu Dhabi. The field is located in Abu Dhabi’s offshore Umm Shaif and Nasr hydrocarbons concession, previously operated by former Adnoc Group companies Adma-Opco and Zadco.

Between March and April 2018, Adnoc awarded a 10% stake in the Umm Shaif and Nasr offshore block to Italy’s Eni, 20% to France’s TotalEnergies and 10% to China National Petroleum Corporation. Adnoc Group retained the majority 60% interest. The operators produce a total of about 460,000 b/d of oil from the Umm Shaif and Nasr block.

Gas is produced from the Umm Shaif Khuff and Uweinat reservoirs, as well as from the Arab C and Arab D Early Production Scheme 2. The Umm Shaif Khuff reservoir is a formation that consists of dry gas volumetric reservoirs located in the Umm Shaif field.

Khuff reservoirs have been in production in Abu Dhabi since August 1989. Umm Shaif Khuff gas is currently produced from 28 active wells within the Umm Shaif field. A majority of these wells supply gas to Adnoc Group subsidiaries Adnoc LNG and Adnoc Gas Processing, with the rest supporting oil reservoirs at the Umm Shaif field through gas injection.

The Umm Shaif Super Complex (USSC) processes and transports oil, condensates and natural gas in separate pipelines to Das Island for further processing and export. The condensates collected from the USSC are transported to Das Island through an 18-inch pipeline stretching 34.4km, or are spiked into the 36-inch Adnoc main oil line.

The gas collected from the USSC is transported to Das Island through two 46-inch pipelines, which also run 34.4km.

Pressure at the Umm Shaif Khuff gas reservoirs will start to decline by the end of 2028. The flowing wellhead pressures at some of the Khuff gas wellhead towers are likely to reduce, so boosting well deliverability and increasing the flowrates is necessary.

Therefore, new Khuff surface pressure boosting facilities are required to maintain the plateau – with a goal of achieving a 90% gas recovery factor – and increase production beyond the end of the plateau by lowering pressure at the Khuff reservoirs.

Project tendering exercise

Adnoc Offshore has been making attempts to advance the Umm Shaif gas cap project since at least 2019, and has experimented with several project execution models.

According to the original schedule, the project was due to be commissioned in 2023, but progress slowed down, primarily due to the Covid-19 pandemic.

Adnoc Offshore launched a feed-to-engineering, procurement, construction and installation (EPCI) competition for the project in May 2019 and selected the following three entities based on their feed submissions:

  • McDermott (US)
  • National Petroleum Construction Company (UAE) / TechnipFMC (France)
  • Saipem (Italy) / Petrofac (UK)

Technical bids for the EPCI works on the estimated $1.5bn project were submitted in January 2020 and commercial bids were submitted by August of that year.

The Saipem/Petrofac consortium emerged as the lowest bidder for the project in September 2020, MEED reported.

Petrofac is understood to have eventually pulled out of the consortium and was replaced by state-owned China Petroleum Engineering & Construction Company (CPECC).

In 2022, the Saipem/CPECC consortium is understood to have been the lone bidder remaining on the Umm Shaif gas cap project. Adnoc Offshore engaged the consortium for a revised feed exercise, and went on to receive commercial offers on a single-source basis.

In 2023, Adnoc Offshore cancelled the tendering process for the project and later decided to proceed with a conventional EPC-based project execution model.

Last year, the operator appointed Worley to undertake feed works on the renewed Umm Shaif gas cap project. Worley has a legacy of involvement in the Umm Shaif hydrocarbons development.


READ THE JANUARY 2026 MEED BUSINESS REVIEW – click here to view PDF

Saudi Arabia courts real estate investment; EVs and battery production are key regional tech themes; Muscat holds a steady growth course despite headwinds

Distributed to senior decision-makers in the region and around the world, the January 2026 edition of MEED Business Review includes:

> ECONOMIC ACTIVITY INDEX: UAE and Qatar emerge as markets to watch
To see previous issues of MEED Business Review, please click here
https://image.digitalinsightresearch.in/uploads/NewsArticle/15526816/main.jpg
Indrajit Sen
Related Articles
  • KBR re-evaluates design for Libya oil project

    10 July 2026

     

    US-headquartered KBR is responsible for re-evaluating the front-end engineering and design (feed) for the project to develop the J6 North Gialo field in Libya, according to industry sources.

    In June, MEED reported that Libya’s Waha Oil Company (WOC), a subsidiary of the state-owned National Oil Corporation (NOC), had launched a review into the tender process for the J6 North Gialo oil field development project, and that this would include re-evaluating the feed work.

    The Waha concessions are held by a consortium of Libya’s NOC, which holds 59.16%; TotalEnergies, holding 20.42%; and US-based ConocoPhillips, with 20.42%.

    They are operated by WOC, which is 100% owned by NOC.

    KBR has previously provided engineering services for major national projects in Libya, such as the Great Man-Made River project, which is widely recognised as the largest irrigation project in the world.

    In March, KBR was awarded a contract by Zallaf Exploration, Production & Refining of Oil & Gas Company to provide project management and technical services for the South Refinery project in Libya’s southern city of Ubari.

    Under the terms of the contract, KBR will provide contract management, project management and supporting technical services throughout the engineering, procurement and construction (EPC) phases of the project.

    The EPC work is expected to be executed over a 50-month period.

    In its statement, KBR said that the project is aligned with its “long-standing commitment to advancing vital oil and gas infrastructure in Libya”.

    In March, MEED reported that South Korea’s Daewoo had pulled out of the tender process for Libya’s J6 North Gialo oil field development project.

    Daewoo had formed a partnership with Egypt’s Petrojet to participate in the tender process.

    The only other company to submit a bid for the project was UK-based Petrofac, which filed for administration in October last year.

    In January, TotalEnergies signed an agreement extending the Waha concessions agreement up to 31 December 2050.

    This agreement set new fiscal terms, allowing an increase in the production of these concessions that were, at the time, producing about 370,000 barrels of oil equivalent a day (boe/d).

    In January, TotalEnergies said that the deal paved the way for “a new phase of investments, including the development of the North Gialo field, which is expected to add 100,000 boe/d of production”.

    The J6 North Gialo project is the first of three field development projects that WOC has prioritised.

    The other two are known as NC98 and Gialo 3.

    Together, the three projects are expected to double Waha’s production from about 300,000 barrels a day (b/d) of oil to 600,000 b/d.

    The Waha concession covers 13 million acres.


    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17621475/main.jpg
    Wil Crisp
  • Qiddiya to tender high-speed rail in September

    10 July 2026

     

    Saudi Arabia’s Royal Commission for Riyadh City, in collaboration with Qiddiya Investment Company and the National Centre for Privatisation & PPP, are expected to float the tender in September for the Qiddiya high-speed rail project in Riyadh.

    MEED understands that the clarification process is ongoing for the engineering, procurement, construction and financing (EPCF), as well as the public-private partnership (PPP) packages.

    The Qiddiya high-speed rail project, also known as Q-Express, will cover 84 kilometres, connecting King Salman International airport and King Abdullah Financial District with Qiddiya City.

    In April, MEED exclusively reported that the clients had received prequalification statements from firms for the EPCF package of the project.

    MEED also reported in May that firms were forming joint ventures for the PPP package of the project.

    The line will operate at speeds of up to 250 kilometres an hour, reaching Qiddiya in 30 minutes.

    There are five stations planned: Qiddiya Grand Central Station, Qiddiya Uptown Station, King Abdullah Financial District, Terminal 6 King Salman International airport (KSIA) and Iconic Terminal at KSIA.


    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17621301/main.jpg
    Yasir Iqbal
  • Middle East construction cost inflation to hit 5.1% by 2027

    9 July 2026

    Construction cost inflation in the Middle East is forecast to reach 5.1% in 2027, the second-highest of any region worldwide, as global demand for data centres tightens contractor capacity and deepens shortages of skilled labour.

    The projection comes from the Global Construction Market Intelligence report, published by UK programme manager Turner & Townsend. The report draws on data from 112 markets across 44 countries, gathered between 2 March and 20 March 2026.

    Only Africa is expected to see steeper cost escalation, at 7%. Australia and New Zealand follow the Middle East at 4.9%, while the EU records the lowest figure at 2.8%. Globally, construction cost inflation is set to rise from 4.2% in 2025 to 4.5% in 2026 before flattening in 2027.

    The report identifies a two-speed market. Data centres are now the most in-demand construction sector globally, followed by industrial and logistics. More than 70% of the 112 markets surveyed report tightening or overstretched contractor capacity in the data centre sector. By contrast, more than 79% of markets show balanced or spare capacity across hospitality and leisure, residential and commercial development.

    Skills shortage

    Labour availability has displaced material costs as the primary driver of cost escalation. About 71% of markets report labour shortages. Skills deficits are most acute in mechanical, electrical and plumbing (MEP) trades, with 87% of markets reporting MEP shortages. These trades are central to data centre delivery.

    The findings carry weight for the GCC, where sovereign programmes in Saudi Arabia and the UAE are competing for the same contractor pools that artificial intelligence (AI) infrastructure now draws on. Regional governments have announced large data centre commitments alongside gigaprojects, housing and transport schemes, placing further strain on an already stretched supply chain.

    Turner & Townsend says that construction input costs have stabilised over the past year, with supply chain resilience built since the pandemic limiting the impact of recent volatility. Cost drivers are becoming more localised and sector-specific rather than the product of international shocks.

    Energy market exposure introduces a separate risk. The report cites oil prices, higher transport and freight costs, and volatility in petrochemicals inputs as significant challenges. Disruption to shipping routes lengthens lead times and adds supply chain volatility.

    Conflict assumptions

    The baseline scenario assumes a relatively short-lived conflict in the Middle East and a moderate rise in energy commodity prices in 2026. A prolonged or escalating conflict would produce more pronounced effects on inflation, supply chains and construction costs.

    New York remains the world's most expensive construction market at $7,938 a square metre, followed by San Francisco at $7,883 and Geneva at $6,985. London ranks fifth at $6,032.

    North America carries the highest regional labour costs, with an average hourly wage of $79.5, ahead of the EU at $75.6 and Australia and New Zealand at $68.

    Digital adoption remains uneven, though momentum is building. Sixty-six percent of markets report that AI capability now carries more weight in tendering and client discussions than it did 12 months ago.


    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17606750/main.gif
    Colin Foreman
  • Contractor appointed for Dubai’s One B Tower

    9 July 2026

     

    Dubai-based construction firm Naresco Contracting has been awarded a contract to build One B Tower, located on Dubai's Sheikh Zayed Road.

    Local real estate developer Wasl Group awarded the contract.

    It covers a 47-storey high-rise tower offering a mix of one- to four-bedroom residential units.

    The project is also known as One Billion Meals Endowment Tower.

    The enabling works were undertaken by local firm APCC Building Contracting.

    Netherlands-headquartered UN Studio is the project architect.

    Dubai-based firm Studio International Engineering Consultants is the project consultant.

    The project is slated for completion by 2028.

    This is the second major contract to have been awarded by Wasl Group this year for a residential development.

    In January, the firm awarded an estimated $250m deal to build the Avenue Park Towers project in Dubai to South Korean contractor Ssangyong Engineering & Construction.

    The development comprises two mixed-use buildings offering residential and commercial facilities. One of the towers will have 43 floors while the other will have 37.

    The project is slated for completion by 2028.

    Wasl Group's latest contract award in the UAE market is backed by heightened real estate activity in the construction sector, with schemes worth over $323bn in the execution or planning stages, according to UK analytics firm GlobalData.

    The company forecasts that output from the UAE’s residential construction sector will grow by 3% in real terms in 2026-29, supported by infrastructure, energy and utilities developments, as well as residential construction projects.


    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17605135/main.jpg
    Yasir Iqbal
  • Iran and US break peace deal and resume Gulf attacks

    9 July 2026

    Iran and the US have once again traded attacks in the Gulf region, in the worst exchange of fire since the two nations signed an interim peace deal in June.

    US Central Command (CentCom) said on 7 July that it had launched strikes in response to attacks on three oil tankers in the Strait of Hormuz, hitting more than 80 targets including air defence systems, coastal radar and fast boats.

    In retaliatory attacks on 8 July, Iran said it had targeted US military sites in Bahrain and Kuwait.

    Oil prices have spiked following the strikes, with global benchmark Brent crude trading at $77.32 a barrel as of 1pm Gulf Standard Time.

    UK Maritime Trade Operations (UKMTO) said a tanker travelling through the strait had reported a fire after an unknown projectile hit an engine room on 6 July.

    In two separate incidents on 7 July, a tanker reported it had been hit as it exited the strait but was able to proceed to its next port of call, while another tanker reported sustaining minor structural damage after being struck, UKMTO said.

    Qatar and Saudi Arabia have denounced the attacks, each saying a tanker from its country had been hit while transiting in or near the strait, and blaming Iran.

    A spokesperson for Qatar's foreign ministry, Majed Al-Ansari, said it held Iran fully responsible for an apparently targeted attack on a vessel called Al-Rekayyat as it transited near the Strait of Hormuz.

    Saudi Arabia's foreign ministry said Iran had targeted the Saudi tanker Wedyan as it crossed the strait. The owner of the very large crude carrier, the kingdom’s national shipping company Bahri, confirmed the attack on the vessel in a statement on 7 July, adding that “all crew members are safe and accounted for, and the cargo remains secure”.

    “The vessel remains in a seaworthy condition. The company promptly informed all relevant authorities and continues to work closely with them and other maritime stakeholders, while maintaining continuous communication with the vessel's crew and closely monitoring the situation,” Bahri said.

    “Bahri continues to closely monitor developments in the region and has implemented appropriate precautionary measures to support the safety of its people, vessels and operations,” it added.

    Breakdown of peace deal

    Separately, the US also said it had revoked its temporary suspension of sanctions on Iranian oil sales. Iran's speaker Mohammad Bagher Ghalibaf accused the US of breaching their memorandum of understanding (MoU) on this issue, and others, including the attacks in southern Iran and "violating Iranian adjustments in the strait".

    Missiles and drones were launched at "85 key US military facilities", including a US Navy headquarters and an air base in Kuwait, the Islamic Revolutionary Guard Corps (IRGC) said.

    Iranian state media agency Irna also reported the death of an IRGC guard in the US strikes, “after being struck by shrapnel from a projectile".

    Kuwait has responded to the Iranian strikes on its country, lambasting the "repeated attacks".

    Talks on reaching a permanent peace deal have been on hold due to the state funeral in Iran for the late Supreme Leader Ayatollah Ali Khamenei, who was killed on 28 February – the first day of US-Israeli strikes on Iran.

    Early on 7 July, Iran's deputy foreign minister described the US attacks as a violation of the US-Iran MoU signed on 14 June, and warned Tehran would "take decisive measures".

    The US had said there would be consequences for what it called the "wholly unacceptable" attacks on the three tankers.

    CentCom said that in addition to 60 small boats, it had struck Iranian missile launch sites and command centres. It did not give the locations of its targets.

    It said the strikes were "to impose heavy costs for targeting and attacking commercial shipping crewed by innocent individuals in an international waterway".

    Before the strikes, the US Treasury revoked a waiver that had temporarily lifted oil sanctions on Iran and was part of the MoU signed by Washington and Tehran in June.

    Iran's foreign ministry called the move a breach of the MoU and said it proved the "bad faith, inconsistency and unreliability" of the US government.

    It added that Tehran "will take whatever measures it considers necessary to safeguard its national interests and national security".


    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17605530/main5658.jpg
    Indrajit Sen