ADNOC Offshore, a subsidiary of Abu Dhabi National Oil Company (ADNOC), and its partners – France’s TotalEnergies, Italy’s Eni, and China National Petroleum Corporation (CNPC) – have unveiled a final investment decision (FID) for a development project in the Umm Shaif and Nasr offshore concession in the United Arab Emirates (UAE).
While reporting a $6.2 billion (AED22.6 billion) final investment decision to develop the Umm Shaif Gas Cap in Abu Dhabi, the UAE’s giant explained that the FID was accelerating its integrated global gas growth strategy. This development in the Umm Shaif and Nasr offshore concession is operated by ADNOC Offshore (60%), with TotalEnergies (20%), CNPC (10%), and Eni (10%), as partners.
The FID for Umm Shaif Gas Cap will unlock more than 600 million standard cubic feet per day (scfd) of natural gas and associated gas liquids, equivalent to almost 10% of the UAE’s current daily gas consumption. The investment is set to reinforce the country’s energy security and its role as a reliable global energy supplier. The first production from the project is expected by 2030.
Dr. Sultan Ahmed Al Jaber, UAE’s Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, commented: “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.
“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 FID entails three engineering, procurement and construction (EPC) packages totaling $5.1 billion (AED 18.8 billion) for large-scale offshore infrastructure awarded by ADNOC to consortiums, including major UAE and international contractors. The development also encompasses a $365 million (AED 1.3 billion) 14-well drilling and integrated drilling services program to be delivered by ADNOC Drilling over 18 months using three existing rigs.
The FID for Umm Shaif Gas Cap follows the Supreme Council for Financial and Economic Affairs’ (SCFEA) award of the concession agreement for the Bab Gas Cap, which is expected to unlock an additional 1.5 billion (scfd) of natural gas and associated gas liquids, building on the UAE player’s launch of a global LNG marketing and trading platform in Abu Dhabi Global Market (ADGM), which is targeting 47 million tonnes per annum of combined marketable LNG capacity by 2035.
Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies, commented: “We are delighted to reach this important milestone together with ADNOC and our partners. Following the recent award of the Bab Gas Cap concession, this FID marks another important step in developing Abu Dhabi’s significant gas resources. This development will contribute to TotalEnergies’ Upstream production beyond 2030 with low-cost and low-emissions resources.”
Umm Shaif is Abu Dhabi’s oldest offshore field, producing since 1962. TotalEnergies emphasizes that the project will unlock more than 600 million cubic feet per day of gas production by 2030 while maximizing condensate recovery by developing the gas cap resources above the field’s oil reservoirs.
By leveraging synergies with existing offshore facilities and clean power from the UAE grid, Umm Shaif Gas Cap is designed to minimize costs and limit emissions. The project has the potential to increase gas production to up to 1.5 billion cubic feet per day, further supporting the UAE’s long-term gas growth strategy, as the country is said to hold the seventh-largest gas reserves in the world.
“As global demand for reliable, lower-carbon energy continues to grow, ADNOC is unlocking more of the nation’s gas resources and expanding its liquefied natural gas (LNG) portfolio to meet the needs of its domestic and international customers and power industrial and artificial intelligence (AI) infrastructure growth,” emphasized the UAE giant.
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