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Adnoc to award $2bn contract to raise offshore field output

10 September 2024

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Adnoc Offshore, a subsidiary of Abu Dhabi National Oil Company (Adnoc Group), is set to award a major contract, estimated to be worth $2bn, for a project to increase production from the Umm Shaif offshore oil field in Abu Dhabi.

US-based oil and gas contractor McDermott International is in line to win the main contract for the Umm Shaif accelerated development project, according to sources.

The core objective of the project is to increase the Umm Shaif oil field’s output from about 275,000 barrels a day (b/d) at present to 390,000 b/d by 2027, and to sustain that level of production until at least 2036.

The Umm Shaif field is one of Adnoc’s most historic offshore oil-producing assets. In 2022, the company marked the 60th anniversary of the UAE’s first export of Umm Shaif crude oil, which took place in July 1962.

The Umm Shaif 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, with the company itself retaining the majority 60% interest.

The operators produce a total of about 460,000 b/d of oil from the Umm Shaif and Nasr block.

Output expansion projects

In January 2022, Adnoc Offshore awarded a $946m contract to Abu Dhabi-based NMDC Energy (then known as National Petroleum Construction Company) for performing engineering, procurement and construction (EPC) works on the first phase of a long-term development plan to sustain output from Umm Shaif, known as the Umm Shaif LTDP-1 project.

The main objectives of the Umm Shaif LTDP-1 project are to maintain Umm Shaif’s 275,000 b/d crude oil production capacity, increase efficiencies and enhance the field’s long-term output potential.

EPC works on the first phase of the Umm Shaif LTDP programme were completed earlier this year, according to information obtained by regional projects tracker MEED Projects.

Separately, MEED recently reported that Adnoc Offshore had initiated the prequalification phase for front-end engineering and design works on the second expansion phase of the Umm Shaif field, the Umm Shaif LTDP-2 project.

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Indrajit Sen

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