NPCC wins $946 million ADNOC long-term contract to develop Umm Shaif field

Abu Dhabi National Oil Company (ADNOC) announced on Wednesday the award of a US $946 million Engineering, Procurement, and Construction (EPC) contract to the UAE’s National Petroleum Construction Company (NPCC) for the strategic long-term development of its giant Umm Shaif field – a key component in Abu Dhabi’s ambitious oil output capacity increase plans.

The company said that the investment supports its oil production capacity plans of five million barrels per day (mmbpd) by 2030 while ensuring energy security for the UAE and partners around the world.

The ‘Long-Term Development Plan – Phase 1’ (LTDP-1) EPC contract was awarded by ADNOC Offshore to NPCC after a competitive tender process, the company said in a statement.

The scope of the award covers engineering, procurement, fabrication, installation and commissioning activities required to maintain Umm Shaif’s 275,000 barrels per day (mbd) crude oil production capacity, increase efficiencies and enhance the field’s long-term potential.

Abu Dhabi has been carrying out multiple greenfield and brownfield developments aimed at ramping up its oil production capacity to 5 million barrels per day by 2030, up from the existing 4 million bpd.

According to ADNOC, more than 75 percent of the total award value will flow back into the UAE economy under energy major’s In-Country Value (ICV) programme, ensuring that more economic value remains in the country from the contracts it awards. “This reinforces ADNOC’s commitment to the UAE’s ‘Principles of the 50’, the economic blueprint for sustainable growth announced by the UAE’s leadership in 2021,” the statement said.

“This contract is an important contributor to ADNOC Offshore’s plans as we build our production capacity to over 2 million barrels a day in the coming years in support of ADNOC’s smart growth strategy,” said Ahmad Saqer Al Suwaidi, CEO of ADNOC Offshore.

The EPC contract, which is due to be completed in 2025, comprises two packages for network expansion and new well-head towers. The first package includes modifications and extension of existing facilities with installation of new subsea cables and pipelines for debottlenecking. The second package includes the design of three lean well-head towers with associated new pipelines. The contract incorporates ‘fit for the future’ technology including rigless electrical submersible pumps (ESP) and other digital field technologies, which will increase efficiencies while maintaining current production capacity.

Umm Shaif is ADNOC’s most historic offshore asset, and 2022 marks the 60th anniversary of the UAE’s first oil export of Umm Shaif crude oil (July 1962).