ADNOC Offshore, a subsidiary of Abu Dhabi National Oil Company (ADNOC), and its partners – France’s Total Energy, Italy’s Eni, and China National Petroleum Corporation (CNPC) – have revealed the final investment decision (FID) for the Umm Al Shaif and Nasr offshore concession development project in the UAE.
While a final investment decision worth $6.2 billion (AED 22.6 billion) was announced to develop the project. Umm Al-Sheif for gas cap In Abu Dhabi, the Emirati giant explained that the Direct Investment Department is working to accelerate its integrated strategy for global gas growth. This development in the Umm Al Shaif and Al Nasr offshore concessions is operated by ADNOC Offshore (60%), with Total Energy (20%), CNBC (10%), and Eni (10%), as partners.
The final gas cap investment project in the Umm Al Sheif region will provide more than 600 million standard cubic feet per day of natural gas and associated gas liquids, equivalent to about 10% of the current daily gas consumption in the United Arab Emirates. This investment is set to enhance the country’s energy security and its role as a reliable global energy supplier. The first production from the project is expected to take place by 2030.
Dr. Sultan Ahmed Al JaberThe UAE Minister of Industry and Advanced Technology and Managing Director and CEO of Abu Dhabi National Oil Company (ADNOC) told the group: “ADNOC is accelerating its integrated gas strategy to advance the exploitation of the UAE’s vast gas resources and expand our global LNG platform, as global demand for natural gas continues to rise.
“The Umm Sheif gas cap development project is another important milestone in implementing this strategy and strengthening ADNOC’s position as a reliable gas supplier. Together with our international partners, we are building on decades of responsible management of Abu Dhabi’s longest offshore field to create lasting value for the UAE and our customers.”
The final investment agreement includes three engineering, procurement and construction packages worth a total of $5.1 billion (AED 18.8 billion) for large-scale marine infrastructure awarded by ADNOC to consortia, including major Emirati and international contractors. The project also includes a program to drill 14 wells and integrated drilling services worth $365 million (1.3 billion dirhams), which ADNOC Drilling will implement over a period of 18 months using three existing drilling platforms.
The final investment decision for the Umm Sheif gas cap project comes after the Supreme Council for Financial and Economic Affairs obtained a concession agreement for the Umm Sheif project. Gas door capwhich is expected to release an additional 1.5 billion cubic feet of natural gas and associated gas liquids, based on the UAE player’s launch of a global platform for marketing and trading liquefied natural gas in Abu Dhabi Global Market (ADGM)which targets 47 million tons per year of total marketable LNG capacity by 2035.
Patrick BoyaniChairman and CEO of TotalEnergies commented: “We are pleased to achieve this important milestone with ADNOC and our partners. Following the recent award of the Bab Gas Concession, this final investment represents another important step in the development of Abu Dhabi’s important gas resources. This development will contribute to Total Energy’s production after 2030 with low-cost, low-emission resources.”
Umm Al Sheif is Abu Dhabi’s oldest offshore field, having been in production since 1962. Total Energies confirms the project will release more than 600 million cubic feet per day of gas production by 2030 while maximizing condensate recovery through developing gas cap resources above the field’s oil reservoirs.
By leveraging synergies with existing offshore facilities and clean energy from the UAE grid, the Umm Sheif gas cap is designed to reduce costs and reduce emissions. The project has the capacity to increase gas production to up to 1.5 billion cubic feet per day, which supports the UAE’s long-term gas growth strategy, as the country is said to have the seventh largest gas reserves in the world.
“As global demand for reliable, low-carbon energy continues to grow, ADNOC is working to exploit more of the country’s gas resources and expand its LNG portfolio to meet the needs of its domestic and international customers and foster the growth of artificial and industrial intelligence infrastructure.” The Emirati giant confirmed.
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