ADNOC has awarded McDermott a contract worth more than $1 billion to build a pressure-boosting facility at the Umm Shaif offshore field. The award advances a $6.2 billion gas project the UAE approved in July as it pushes to expand natural gas output and become a top-five global gas and LNG player by 2035.
ADNOC has awarded McDermott a contract worth more than $1 billion for a major offshore pressure-boosting facility at Abu Dhabi's Umm Shaif field. The engineering, procurement, construction and installation deal covers Package 4 of ADNOC's Umm Shaif Integrated Gas Cap and Surface Pressure Boosting Project.
McDermott to build one of the region's heaviest offshore modules
McDermott, working with its Qingdao McDermott Wuchuan consortium, will construct and install a new jacket and topside while modifying existing offshore infrastructure. The company did not disclose the exact contract value but classified it as a "mega" award, a category it defines as exceeding $1 billion. McDermott said the completed topside will be among the heaviest offshore modules ever installed in the Middle East.
Engineering and project management will be carried out in the UAE, while fabrication takes place at the QMW yard in Qingdao, China.
Part of a $6.2 billion gas expansion
The award follows ADNOC's $6.2 billion final investment decision in July to develop the Umm Shaif Gas Cap alongside TotalEnergies, Eni and China National Petroleum Corporation. The wider project includes three EPC contracts worth a combined $5.1 billion and a 14-well drilling program.
ADNOC expects the development to unlock more than 600 million standard cubic feet per day of natural gas and associated liquids, equivalent to roughly 10% of current UAE domestic gas consumption, with first production targeted for 2030. The investment forms part of ADNOC's broader push to expand its gas business and become a top-five global gas and LNG player by 2035.
Umm Shaif is also one of Abu Dhabi's most important crude oil assets. ADNOC previously invested $946 million in its long-term development to maintain crude production capacity at 275,000 barrels per day. The field produced the UAE's first exported crude in 1962.
Source: McDermott
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