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The Abu Dhabi National Oil Company (ADNOC) today announced the award of an engineering, procurement and construction (EPC) contract valued at US$946 million (Dh3.47 billion) for the strategic long-term development of its Umm Shaif oil field.
The investment supports ADNOC’s plan to achieve 5 million barrels per day (mmbpd) of oil production capacity by 2030, while ensuring the energy security of partners in the United Arab Emirates and around the world.
After a competitive bidding process, ADNOC Offshore awarded the “Long Term Development Plan-Phase One” (LTDP-1) EPC contract to the National Petroleum Construction Company (NPCC). The scope of the award covers the engineering, procurement, manufacturing, installation and commissioning activities required to maintain Umm Shaif’s 275,000 barrels (mbd) per day crude oil production capacity, improve efficiency, and enhance the long-term potential of the oil field.
Importantly, according to ADNOC’s Domestic Value (ICV) program, more than 75% of the total reward value will flow back to the UAE economy to ensure that the contracts awarded by it retain more economic value in the country. This strengthens ADNOC’s commitment to the UAE’s “50 Principles”, which is the economic blueprint for sustainable growth announced by the UAE leadership in 2021.
ADNOC Upstream Executive Director Yaser Saeed Almazrouei said: “This important award for the long-term development of ADNOC’s pioneer offshore Umm Shaif field will maximize efficiency while maintaining future production and supporting ADNOC’s strategic goal of 5 million barrels of oil per day. By 2030. In addition, Umm Shaif’s development plan reinforces ADNOC’s commitment to maintain its position as a leading low-cost oil producer and strengthen our role as a reliable energy supplier for customers worldwide.
“We are very happy to work with NPCC again as a contractor, bringing leading expertise and advanced technology as well as a proven industry record. Importantly, the very high domestic value generated by the contract award will stimulate new business opportunities in the private sector. And in accordance with the instructions of the UAE’s wise leadership to support the UAE’s economic growth as we look forward to the next 50 years.”
The EPC contract will be completed in 2025, including two packages for network expansion and the new wellhead tower. The first package includes modification and expansion of existing facilities, and installation of new submarine cables and pipelines to eliminate bottlenecks. The second package includes the design of three lean wellhead towers and related new piping. The contract includes “future-adapted” technologies, including drillless electromechanical submersible pumps (ESP) and other digital field technologies, which will increase efficiency while maintaining current production capacity.
ADNOC Offshore CEO Ahmad Saqer Al Suwaidi said: “This contract is an important contributor to the ADNOC Offshore program because we will increase our production capacity to more than 2 million barrels per day in the next few years to support ADNOC’s smart growth strategy. The award Follow a highly competitive bidding process, which includes a rigorous assessment of the value of contracts that support the UAE’s economic growth and diversification through ADNOC’s ICV program.”
Umm Shaif is ADNOC’s most historic offshore asset. 2022 is the 60th anniversary of the first export of Umm Shaif crude oil by the UAE (July 1962). The continuous investment and development of Umm Shaif ensure responsible profit maximization and create greater value for the UAE, ADNOC and their partners.
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