ADNOC Investing $1B In 60-Year-Old Field Redevelopment

ADNOC Investing $1B In 60-Year-Old Field Redevelopment
ADNOC has awarded a $946 million EPC contract for the strategic long-term development of its Umm Shaif field.

UAE’s state-owned energy giant Abu Dhabi National Oil Company (ADNOC) has awarded a $946 million EPC contract for the strategic long-term development of its Umm Shaif field.

This investment supports ADNOC’s oil production capacity plans of 5 million barrels per day by 2030 while ensuring energy security for the United Arab Emirates and its partners around the world.

The Long-Term Development Plan – Phase 1 EPC contract was awarded by ADNOC Offshore to National Petroleum Construction Company after a competitive tender process.

The scope of the award covers 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.

“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,” Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said.

“We are pleased to be collaborating again with NPCC as a contractor bringing leading expertise and advanced technologies along with a proven industry track record. Importantly, the very high In-Country Value generated from this contract award will stimulate new business opportunities for the private sector and, in line with the directives of the UAE’s wise Leadership, support the UAE’s economic growth as we look to our next 50 years,” he added.

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 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. The contract incorporates ‘fit for the future’ technology including rigless electrical submersible pumps and other digital field technologies, which will increase efficiencies while maintaining current production capacity.

“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,” Ahmad Saqer Al Suwaidi, CEO of ADNOC Offshore, claimed

As for Umm Shaif, it is ADNOC’s most historic offshore asset. In 2022, ADNOC will mark its 60th anniversary of UAE’s first oil export of Umm Shaif crude oil – more precisely July 1962.

What do you think? We’d love to hear from you, join the conversation on the Rigzone Energy Network.

The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.

Most Popular Articles