ADNOC approves $6.2 billion Umm Shaif gas development
Umm Shaif will unlock over 600 million scfd, with production expected by 2030
Abu Dhabi: ADNOC has approved a $6.2 billion investment to develop the Umm Shaif Gas Cap, a project expected to unlock gas volumes equivalent to almost 10% of the UAE’s current daily consumption.
The final investment decision covers the development of the gas cap at Abu Dhabi’s longest-operating offshore field, alongside ADNOC’s international partners TotalEnergies, Eni and China National Petroleum Corporation.
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Production is expected to begin by 2030, adding more than 600 million standard cubic feet per day of natural gas and associated gas liquids to the UAE’s energy supply.
The additional output will support domestic energy security while supplying industrial customers and infrastructure linked to the growth of artificial intelligence, according to ADNOC.
Expanding the UAE’s gas supply
The UAE holds the world’s seventh-largest gas reserves, giving ADNOC a substantial resource base as it expands production and builds its liquefied natural gas business.
Natural gas from Umm Shaif will serve ADNOC’s domestic and international customers while increasing the volume available to meet rising industrial and power demand.
"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 Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO. "The Umm Shaif Gas Cap FID is another important milestone in delivering this strategy and reinforcing ADNOC's position as a reliable gas supplier. Together with our international partners, we are building on decades of responsible stewardship of Abu Dhabi’s longest-operating offshore field to unlock lasting value for the UAE and our customers."
The Umm Shaif decision follows the award of the Bab Gas Cap concession agreement by the Supreme Council for Financial and Economic Affairs.
Bab is expected to add a further 1.5 billion standard cubic feet per day of natural gas and associated gas liquids, expanding the supply available from Abu Dhabi’s onshore resources.
Three major construction contracts
The Umm Shaif investment includes three engineering, procurement and construction packages valued at a combined $5.1 billion, or Dh18.8 billion.
ADNOC awarded the packages to consortiums that include major UAE and international contractors, covering the large-scale offshore infrastructure needed to bring the gas into production.
A further $365 million, or Dh1.3 billion, will be invested in a 14-well drilling and integrated drilling services programme.
ADNOC Drilling will deliver the programme over 18 months using three existing rigs, allowing the company to carry out the work without adding new rigs to the development.
LNG capacity targeted for 2035
The investment also forms part of ADNOC’s plan to expand its international LNG presence and increase the volume of gas it can market globally.
The company recently launched a global LNG marketing and trading platform at Abu Dhabi Global Market, targeting a combined marketable LNG capacity of 47 million tonnes per year by 2035.
