Abu Dhabi National Oil Co. (ADNOC) has let a contract to McDermott International Ltd. for Package 4 of the Umm Shaif Integrated Gas Cap and Surface Pressure Boosting (SPB) project in the United Arab Emirates (UAE). The project is a component of the Umm Shaif Long Term Development Plan (LTDP), designed to maximize gas recovery from Umm Shaif field and increase gas production.

Under the contract, which McDermott values at over $1 billion, the service provider and its Qingdao McDermott Wuchuan (QMW) consortium will provide the complete engineering, procurement, construction and installation (EPCI) scope for new surface pressure-boosting infrastructure, including the construction and installation of a jacket and topside, as well as associated brownfield modifications. Upon completion, McDermott said, the topside will be among the heaviest offshore modules ever installed in the Middle East.

Engineering and project management activities will be led from McDermott's offices in the UAE. Fabrication will be carried out at QMW, McDermott's joint venture fabrication yard in Qingdao, China.

Umm Shaif Integrated Gas Cap project

Umm Shaif field lies in the Arabian Gulf about 85 miles northwest of Abu Dhabi. It produces both crude oil and natural gas. Earlier this year, ADNOC sanctioned development of the offshore field’s gas cap. With that July news, the operator 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 final investment decision, ADNOC said it had awarded three EPC contracts totaling $5.1 billion to consortiums including UAE and international contractors for large-scale offshore infrastructure.