Abu Dhabi National Oil Co. (ADNOC) has taken final investment decision to develop the gas cap at the offshore Umm Shaif field, one of Abu Dhabi’s oldest producing assets.

Discovered in 1958, Umm Shaif is Abu Dhabi’s longest-operating offshore field. In 2022, ADNOC awarded a nearly $1-billion contract to help support long-term oil development at the field. Now, after more than six decades of oil production, ADNOC will invest $6.2 billion to develop the natural gas accumulation overlying the reservoir’s oil column as part of its integrated gas strategy.

In a release July 21, ADNOC said the development is expected to unlock more than 600 MMcfd 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.

With the decision, ADNOC awarded three engineering, procurement, and construction (EPC) contracts totaling $5.1 billion to consortiums including UEA and international contractors for large-scale offshore infrastructure.

The development 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 company said.

ADNOC is operator of the project. Partners are TotalEnergies, China National Petroleum Corp. (CNPC), and Eni.

ADNOC’s larger integrated gas strategy

The investment decision is part of a larger strategy to unlock more UAE gas resources and ADNOC's LNG portfolio to help meet the needs of its domestic and international customers. 

Recently, the Supreme Council for Financial and Economic Affairs’ (SCFEA) awarded the concession agreement for the Bab Gas Cap, which is expected to unlock an additional 1.5 bcfd of natural gas and associated gas liquids.

Earlier this year, ADNOC launched a global LNG marketing and trading platform (Abu Dhabi Global Market), which is targeting 47 million tonnes/year of combined marketable LNG capacity by 2035.