UAE state-owned oil company, Abu Dhabi National Oil Company (ADNOC) has awarded a $946 million Engineering, Procurement, and Construction (EPC) contract to Abu Dhabi’s National Petroleum Construction Company (NPCC) for the strategic long-term development of its Umm Shaif field.
The investment supports ADNOC’s oil production capacity plans of five million barrels per day (mmbpd) by 2030 while ensuring energy security for the UAE and partners around the world.
The ‘Long-Term Development Plan – Phase 1’ (LTDP-1) EPC contract awarded by ADNOC Offshore will cover the engineering, procurement, fabrication, installation and commissioning activities required to maintain Umm Shaif’s 275,000 barrels per day crude oil production capacity, increase efficiencies and enhance the field’s long-term potential.
Over 75 percent of the total award value will flow back into the UAE economy under ADNOC’s In-Country Value (ICV) program, ensuring that more economic value remains in the country from the contracts it awards. This strengthens ADNOC’s commitment to the UAE’s ‘Principles of the 50’, the economic blueprint for sustainable growth announced by the UAE’s leadership in 2021.
Yaser Saeed Almazrouei Upstream Executive Director ADNOC
“This important award for the long-term development of ADNOC’s pioneer offshore Umm Shaif field will maximize efficiencies while maintaining future output and supporting ADNOC’s strategic objective of five million barrels of oil production capacity a day by 2030. In addition, the development plan for Umm Shaif underpins ADNOC’s commitment to maintaining its position as a leading low-cost oil producer and strengthens our role as a reliable energy provider to customers around the world.”
The Umm Shaif EPC contract, which is expected to be completed in 2025, comprises two packages for network expansion and new wellhead towers. The first package includes modifications and extensions 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.
Mr. Ahmad Saqer Al Suwaidi, CEO of ADNOC Offshore, remarked that “This contract is an important contributor to ADNOC Offshore’s plans as we build our production capacity to over 2 million barrels a day in the coming years in support of ADNOC’s smart growth strategy. The award follows a highly competitive bid process, which included a rigorous assessment of how much of the contract value would support the growth and diversification of the UAE’s economy through ADNOC’s ICV Program.”
Umm Shaif is ADNOC’s most historic offshore asset. This year marks the 60th anniversary of the UAE’s first oil export of Umm Shaif crude oil.
Thank you very much for choosing GCC Business News to be an important part of your professional life. You will receive a confirmation e-mail. Please check SPAM or UPDATES folder
