ADNOC investing nearly $1 billion in long-term development of giant offshore field

UAE’s state-owned energy giant Abu Dhabi National Oil Company (ADNOC) will be investing nearly $1 billion in the long-term development of the Umm Shaif offshore field, which has been producing for 60 years.

ADNOC has awarded a $946 million engineering, procurement, and construction (EPC) contract for the strategic long-term development of its Umm Shaif field to compatriot National Petroleum Construction Company (NPCC).

ADNOC explained that the investment supports its oil production capacity plans of five million barrels per day (mmbpd) by 2030 while ensuring energy security for the United Arab Emirates and partners around the world.

After a competitive tender process, the ‘Long-Term Development Plan – Phase 1’ (LTDP-1) EPC contract was awarded to NPCC. The scope of the award covers engineering, procurement, fabrication, installation and commissioning activities required to maintain Umm Shaif’s 275,000 barrels per day (mbd) crude oil production capacity, increase efficiencies, and enhance the field’s long-term potential.

The EPC contract, which is due to be completed in 2025, comprises two packages for network expansion and new well-head towers. The first package includes modifications and extension of existing facilities with the installation of new subsea cables and pipelines for debottlenecking.

The second package includes the design of three lean well-head towers with associated new pipelines. The contract incorporates ‘fit for the future’ technology including rigless electrical submersible pumps (ESP) and other digital field technologies, which will increase efficiencies while maintaining current production capacity.

Umm Shaif is ADNOC’s most historic offshore asset and this year marks the 60th anniversary of the UAE’s first oil export of Umm Shaif crude oil (July 1962).

ADNOC has also recently revealed a $3.6 billion project to decarbonise offshore operations. Namely, TAQA and ADNOC have launched the project, which will see the development and operation of what they claim is a first-of-its-kind high-voltage, direct current (HVDC-VSC) subsea transmission system in the Middle East and North Africa (MENA) region. It will power ADNOC’s offshore production operations with cleaner and more efficient energy, delivered through the Abu Dhabi onshore power grid, owned and operated by TAQA’s transmission and distribution companies.

Meanwhile, this is the second major contract award for NPCC in a matter of days as the company has also been awarded a contract by Saudi Aramco worth over $2.2 billion for two packages for the Zuluf offshore field.