The Abu Dhabi National Oil Company (ADNOC) has taken the final investment decision (FID) to deploy $6.2 billion to develop the Umm Shaif Gas Cap in Abu Dhabi, along with its partners including French firm TotalEnergies, Italy’s energy company Eni and the China National Petroleum Corporation (CNPC).
The FID includes three engineering, procurement and construction (EPC) packages totalling $5.1 billion for large-scale offshore infrastructure, which ADNOC awarded to consortia of UAE and international contractors, according to a statement. The development also includes a $365 million 14-well drilling and integrated drilling services programme to be delivered by ADNOC Drilling over 18 months using three existing rigs.
The state-backed energy company said the move marks an acceleration in its gas growth strategy, which will “unlock more than 600 million standard cubic feet per day (scfd) of natural gas and associated gas liquids”, and expand its liquefied natural gas (LNG) portfolio to meet global demand.
Production from the development is expected by 2030.
The UAE holds the seventh-largest gas reserves in the world with the Umm Shaif field operating for 64 years.
(Writing by Bindu Rai, editing by Seban Scaria)