ADNOC has taken a final investment decision on the Umm Al Shaif Gas Cap Development Project, committing 22.6 billion dirhams (6.2 billion dollars) to expand gas production at one of Abu Dhabi’s oldest offshore fields. TotalEnergies, Eni and China National Petroleum Corporation are partners in the project.
At full capacity, the development will produce more than 600 million standard cubic feet per day of natural gas and associated gas liquids, equivalent to roughly 10% of the UAE’s daily domestic gas consumption. Output is expected to begin by 2030.
“In line with the vision and directives of the UAE’s wise leadership to maximise the value of our resources, and against the backdrop of rising global demand for natural gas, ADNOC is focused on accelerating its integrated gas strategy,” said Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC’s managing director and group CEO.
The bulk of the capital commitment covers infrastructure: three engineering, procurement and construction contracts worth a combined 18.8 billion dirhams (5.1 billion dollars) have been awarded to consortia of Emirati and international contractors for offshore development work. A 14-well drilling programme adds a further 1.3 billion dirhams (365 million dollars), with ADNOC Drilling carrying out the work over 18 months using three existing platforms.
The decision follows a series of moves ADNOC has made to build out its gas position. Last month, Abu Dhabi’s Supreme Council for Financial and Economic Affairs granted ADNOC and partners a development and production concession for the Bab Gas Cap field, which could add up to 1.5 billion standard cubic feet per day. ADNOC has also launched a global LNG marketing and trading platform in Abu Dhabi Global Market, with a target of marketing 47 million tonnes of LNG annually by 2035.
The UAE holds the world’s seventh-largest gas reserves, and ADNOC has framed accelerated gas development as central to meeting demand from industrial and artificial intelligence infrastructure customers.
