ADNOC awards $946m contract for UAE’s Umm Shaif field

The Abu Dhabi National Oil Company (ADNOC) announced on Wednesday the awarding of a $946m Engineering, Procurement, and Construction (EPC) contract for the strategic long-term development of its Umm Shaif field.

The ‘Long-Term Development Plan – Phase 1’ (LTDP-1) EPC contract was awarded by ADNOC Offshore to National Petroleum Construction Company (NPCC) following a tender process.

Umm Shaif is ADNOC’s oldest offshore asset. This year marks the 60th anniversary of the UAE’s first oil export of Umm Shaif crude oil which took place in July 1962.

The scope of the latest award covers engineering, procurement, fabrication, installation and commissioning activities required to maintain Umm Shaif’s 275,000 barrels per day (bpd) crude oil production capacity, increase efficiencies and enhance the field’s long-term potential.

Significantly, over 75 per cent of the total award value will flow back into the UAE economy under ADNOC’s In-Country Value (ICV) programme.

#ADNOC has awarded an EPC contract worth nearly $1bn to NPCC for the development of Umm Shaif offshore field, with 75% of the total award value expected to flow back into the UAE’s economy under ADNOC’s In-Country Value program (ICV).#EnergyForLife pic.twitter.com/8E7LJ9dw6g

— ADNOC Group (@AdnocGroup) January 5, 2022

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 extension of existing facilities with 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 (ESP) and other digital field technologies, which will increase efficiencies while maintaining current production capacity, according to news agency WAM.

“This important award for the long-term development of ADNOC’s pioneer offshore Umm Shaif field will maximise efficiencies while maintaining future output and supporting ADNOC’s strategic objective of five million barrels of oil production capacity a day by 2030. The very high In-Country Value generated from this contract award will stimulate new business opportunities for the private sector,” said Yaser Saeed Almazrouei, ADNOC Upstream executive director.

Ahmad Saqer Al Suwaidi, CEO of ADNOC Offshore, added, “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. 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 Programme.”