Key facts
- ADNOC approved a $6.2 billion investment for the Umm Shaif Gas Cap project.
- The project aims to grow ADNOC's global gas portfolio and unlock over 600 million scfd of natural gas.
- ADNOC will partner with TotalEnergies, Eni, and CNPC on the development.
- Three EPC packages totaling $5.1 billion have been awarded for offshore infrastructure.
- Production from the Umm Shaif Gas Cap project is expected by 2030.
Abu Dhabi National Oil Company (ADNOC) has announced a $6.2 billion final investment decision for its Umm Shaif Gas Cap project, signaling a strategic move to expand its global gas portfolio amid rising international demand. The project, located in Abu Dhabi, is expected to unlock more than 600 million standard cubic feet per day of natural gas and associated gas liquids, a volume equivalent to nearly 10% of the UAE's current daily gas consumption.
ADNOC will develop the project in partnership with international energy firms TotalEnergies of France, Italy's Eni, and China National Petroleum Corporation (CNPC). The investment includes three engineering, procurement, and construction (EPC) packages totaling $5.1 billion for large-scale offshore infrastructure, awarded to consortiums involving UAE and international contractors. Additionally, ADNOC Drilling will undertake a $365 million program involving 14 wells and integrated drilling services over 18 months, utilizing three existing rigs.
This decision follows closely on the heels of a recent agreement where ADNOC granted BP and TotalEnergies a 10% stake each in the consortium developing the Bab Gas Cap project, one of Abu Dhabi's largest gas fields. The Bab Cap Gas concession is crucial for the UAE's objective of achieving gas self-sufficiency and bolstering domestic feedstock production, while also supporting ADNOC's ambitions for expanding its liquefied natural gas (LNG) exports.
Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, stated that the company is accelerating its integrated gas strategy to leverage the UAE's substantial gas resources and enhance its global LNG platform. This initiative aligns with the increasing global demand for natural gas. Earlier in the month, ADNOC Logistics and Services placed a $900 million order for four newbuild LNG carriers to expand its fleet, further underscoring Abu Dhabi's commitment to increasing gas exports.