Despite further escalations in the conflict in Iran, energy producers in the Persian Gulf are pushing ahead with major projects, aiming to return the region’s hydrocarbon industry to normal operations.
Abu Dhabi National Oil Co. (ADNOC) and its partners announced on July 21 a final investment decision for the massive offshore Umm Shaif Gas Cap project, estimated at $6.2 billion in development and scheduled for production by 2030. State-owned ADNOC owns 60% of the project, with partner energy companies TotalEnergies of France, Enke and National Petroum Corps 20% each. with 10% shares.
The development of the Umm Shaif gas cap, a layer of natural gas covering an underground UAE oil reservoir that has been operating since 1958 off the coast of Abu Dhabi, would increase the country’s gas for domestic use and improve its LNG production and export capacity, ADNOC said. It foresees Asian population growth and broader energy demand, and is targeting 47 million metric tons per year of combined commercial LNG capacity by 2035, the statement said. The United Arab Emirates has the seventh largest gas resource in the world.
Australian engineer and contractor Worley has been involved in the front-end engineering design of the project, according to ADNOC.
The project has been under consideration for a number of years and is part of the integrated gas strategy announced by the company to commercialize the Umm Shaif gas supply. The first phase of development has an estimated production capacity of 600 million standard cubic feet per day of natural gas and associated liquids, equivalent to almost 10% of the UAE’s daily consumption. Additional phases will increase production to 1.5 billion standard cubic feet per day, the UAE company and TotalEnergies said.
“The investment includes three engineering, procurement and construction packages totaling $5.1 billion for large-scale offshore infrastructure, awarded to consortia of major UAE and international contractors,” ADNOC said in a statement.
The names of the EPC awardees were not disclosed. But bidders for the project are believed to include consortiums of UAE-based NMDC Energy and TechnipFMC; India-based Larsen & Toubro Hydrocarbon Engineering and Lamprell, a UAE-Saudi company; and Italy-based Saipem and Singapore-based Seatrium with UK-based Petrofac; Other bidder names are believed to include KBR, Wood. McDermott International, China Offshore Oil Engineering Co., Hyundai Heavy Industries, Greece-based Archirodon, China Petroleum Engineering and Construction, Egypt-based Enppi and UAE-based Target Engineering, but contracts and roles were not confirmed.
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The final investment decision “marks another important step in the development of Abu Dhabi’s significant gas resources,” TotalEnergies chairman and chief executive Patrick Pouyanne said in a statement.
The scope of the Umm Shaif project includes onshore infrastructure that will require the construction of new processing and separation facilities, new and modified wellhead towers, lift platforms, flare structures and water disposal systems, according to ADNOC.
“Together with our international partners, we are building on decades of responsible management of Abu Dhabi’s longest-running offshore field,” said Sultan Ahmed Al Jaber, ADNOC’s managing director and group chief executive, who is also the UAE’s Minister of Industry and Advanced Technology.
The Umm Shaif action follows the award of a concession in late June for the Bab Cap onshore project, which consists of three reservoirs in the Bab field and is described as the largest gas cap development of its kind globally. That project aims to produce about 1.5 billion cubic feet of gas per day, said a statement from energy company bp, which has a 10 percent stake in the project. ADNOC owns 60%, with TotalEnergies holding 10% and various smaller interest groups.
