McDermott scoops contract for ADNOC Umm Shaif gas project

McDermott has been awarded an engineering, procurement, construction and installation (EPCI) contract worth more than US$1bn by ADNOC for Package 4 of the Umm Shaif Integrated Gas Cap and Surface Pressure Boosting (SPB) Project

Umm Shaif project

The project is a critical component of the Umm Shaif Long Term Development Plan (LTDP), designed to maximise gas recovery from the field and increase gas production. The Umm Shaif Gas Cap project, in the Umm Shaif and Nasr offshore concession, represents an acceleration of ADNOC’s gas growth strategy and will unlock more than 600mn standard cubic feet per day (scfd) of natural gas and associated gas liquids, equivalent to almost 10% of the UAE’s current daily gas consumption by 2030. The US$6.2bn project is being developed by ADNOC with its international partners TotalEnergies, Eni and China National Petroleum Corporation (CNPC). It will bring more natural gas and associated gas liquids into ADNOC Gas’s integrated value chain, supporting additional feedstock, processing volumes, LNG exports and higher revenue streams.

The project includes:
• Three engineering, procurement and construction (EPC) packages totalling US$5.1 bn (AED18.8bn) for large-scale offshore infrastructure, awarded by ADNOC to consortiums including major UAE and international contractors. The development also includes a
• US$365mn (AED1.3 bn) 14-well drilling and integrated drilling services programme to be delivered by ADNOC Drilling over 18 months using three existing rigs.

McDermott contract

Under the contract won by McDermott, McDermott and its Qingdao McDermott Wuchuan (QMW) consortium will provide the complete EPCI scope for a new surface pressure boosting facility, including the construction and installation of a jacket and topside, as well as associated brownfield modifications. Upon completion, the topside will rank among the heaviest offshore modules ever installed in the Middle East.

Engineering and project management activities will be led from McDermott's offices in the United Arab Emirates, with fabrication taking place at QMW, McDermott's joint venture fabrication yard in Qingdao, China.

"This award reflects ADNOC's confidence in McDermott's ability to deliver complex offshore developments safely and efficiently," said Mike Sutherland, McDermott's senior vice president, Offshore Middle East. "Leveraging our extensive regional experience and integrated execution capabilities, we look forward to supporting ADNOC's production objectives and contributing to the UAE's long-term energy ambitions."

ADNOC’s gas development plans

With its exit from OPEC, which have freed it from production quotas, the UAE is accelerating its oil and gas capacity expansion plans. Holding the seventh-largest gas reserves in the world, ADNOC is developing its gas resources and expanding its LNG portfolio to meet the growing domestic and global demand for reliable, lower-carbon energy.

ADNOC Gas recently announced it is set to invest US$28bn between 2026 and 2030. It recently confirmed the award of US$8.2bn in EPC contracts for Phases 2 and 3 of the Rich Gas development (RGD) project, one of the world’s largest gas growth programmes, which will see a total of US$13.2bn invested across three phases.