Abu Dhabi National Oil Company (ADNOC) has secured a $6.2 billion final investment decision (FID) to develop the offshore Umm Shaif Gas Cap project in Abu Dhabi, reinforcing the country’s energy security and its role as a reliable global energy supplier, according to a press release by the company.
The project is a partnership between ADNOC and French TotalEnergies, Italian Eni and Chinese National Petroleum Corporation (CNPC). It aims to unlock more than 600 million cubic feet per day (mmcf/d) of natural gas and associated gas liquids, equivalent to almost 10% of the UAE’s current daily gas consumption. Production from the development is expected by 2030.
The FID includes three engineering, procurement and construction (EPC) packages totaling $5.1 billion for large-scale offshore infrastructure awarded by ADNOC to consortiums including major UAE and international contractors. It also includes a $365 million 14-well drilling and integrated drilling services program to be delivered by ADNOC Drilling over 18 months using three existing rigs.
The UAE holds the seventh-largest gas reserves in the world. As global demand for reliable, lower-carbon energy continues to grow, ADNOC is unlocking more of the nation’s gas resources and expanding its liquefied natural gas (LNG) portfolio to meet the needs of its domestic and international customers and power industrial and artificial intelligence (AI) infrastructure growth, the company said on July 21.
“ADNOC is accelerating its integrated gas strategy to further harness the UAE’s vast gas resources and expand our global LNG platform, as global demand for natural gas continues to rise,” said Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO.
The FID for Umm Shaif Gas Cap follows the Supreme Council for Financial and Economic Affairs’ (SCFEA) award of the concession agreement for the Bab Gas Cap, which is expected to unlock an additional 1.5 billion cf/d of natural gas and associated gas liquids.
It also builds on ADNOC’s launch of a global LNG marketing and trading platform in Abu Dhabi Global Market (ADGM), which is targeting 47 million tons per year (mmt/y) of combined marketable LNG capacity by 2035.
