ADNOC Approves $6.2 billion Investment To Develop Umm Shaif Gas Cap

Abu Dhabi National Oil Company (ADNOC) said it has approved a final investment decision (FID) worth $6.2 billion (22.6 billion dirhams) to develop the Umm Shaif Gas Cap project with partners TotalEnergies, Eni and China National Petroleum Corporation (CNPC).

The state-owned energy company said the project is expected to produce more than 600 million standard cubic feet per day (scfd) of natural gas and associated gas liquids by 2030, equivalent to nearly 10% of the United Arab Emirates’ current daily gas consumption.

The investment forms part of ADNOC’s strategy to increase domestic gas production and expand its liquefied natural gas (LNG) business as demand for natural gas continues to grow.

The United Arab Emirates holds the world’s seventh-largest proven natural gas reserves.

ADNOC said the project includes three engineering, procurement and construction (EPC) contracts worth a combined $5.1 billion (18.8 billion dirhams), awarded to consortiums comprising UAE and international contractors.

The development also includes a $365 million (1.3 billion dirhams) drilling and integrated drilling services programme to be carried out by ADNOC Drilling over 18 months. The programme covers 14 wells and will use three existing drilling rigs.

ADNOC Managing Director and Group Chief Executive Sultan Ahmed Al Jaber said the project would support the company’s strategy to expand gas production and strengthen its position as a supplier of liquefied natural gas.

Production from the Umm Shaif Gas Cap project is expected to begin in 2030, according to the company.