$1 Billion Contract Awarded for Abu Dhabi Offshore Gas Project

Abu Dhabi's state-owned oil company ADNOC has awarded US-based engineering firm McDermott a massive contract worth over $1 billion to build a major offshore gas project at the Umm Shaif field. The facility, part of ADNOC's broader push to expand its gas business, will unlock more than 600 million standard cubic feet per day of natural gas and associated liquids, equivalent to roughly 10% of current UAE domestic gas consumption.

The $1 billion-plus contract covers Package 4 of the Umm Shaif Integrated Gas Cap and Surface Pressure Boosting Project. McDermott, in a consortium with Qingdao McDermott Wuchuan, will construct and install a new jacket and topside while modifying existing offshore infrastructure. The completed topside will be among the heaviest offshore modules ever installed in the Middle East.

The project is part of ADNOC's $6.2 billion final investment decision to develop the Umm Shaif Gas Cap alongside TotalEnergies, Eni, and China National Petroleum Corporation. First production from the facility is targeted for 2030.

Umm Shaif is one of Abu Dhabi's most important oil assets, having produced the UAE's first exported crude in 1962. ADNOC previously invested $946 million in its long-term development to maintain crude production capacity at 275,000 barrels per day.