ADNOC Seals **$1 Billion** Offshore Gas Deal to Bolster Gulf's Natural Gas Prowess

ADNOC, the UAE's energy behemoth, has awarded McDermott a contract exceeding $1 billion for a major offshore pressure-boosting facility at Abu Dhabi's Umm Shaif field, signaling an accelerated push into natural gas production. This strategic move is central to the nation's ambitions to significantly enhance its gas capacity and fortify its position in the global energy market.

A New Chapter for Umm Shaif

■The engineering, procurement, construction, and installation (EPCI) contract covers Package 4 of ADNOC's Umm Shaif Integrated Gas Cap and Surface Pressure Boosting Project.

■McDermott and its Qingdao McDermott Wuchuan consortium will construct and install a new jacket and topside, while also modifying existing offshore infrastructure.

■Upon completion, the topside is anticipated to be among the heaviest offshore modules ever installed in the Middle East.

Strategic Alliances and Expanding Horizons

■This agreement follows ADNOC's $6.2 billion final investment decision in July to develop the Umm Shaif Gas Cap alongside TotalEnergies, Eni, and China National Petroleum Corporation.

■The broader project encompasses three EPC contracts worth a combined $5.1 billion and a 14-well drilling program.

■The development is expected to unlock over 600 million standard cubic feet per day of natural gas and associated liquids, equivalent to roughly 10% of current UAE domestic gas consumption. First production is targeted for 2030.

Ambitious Goals in the Global Energy Arena

■Umm Shaif also stands as one of Abu Dhabi's most critical oil assets, where ADNOC previously invested $946 million in its long-term development to maintain crude production capacity at 275,000 barrels per day.

■Engineering and project management for McDermott's latest contract will be executed in the UAE, with fabrication taking place at the QMW yard in Qingdao, China.

■This investment is integral to ADNOC's wider initiative to expand its gas business and achieve its goal of becoming a top-five global gas and LNG player by 2035.

Kemal Tekin's Note: ADNOC's aggressive gas expansion strategy solidifies the UAE's role in global energy markets, while the critical involvement of China in the supply chain, particularly for fabrication, reshapes the balance of risks and opportunities across Asia-Pacific. The sheer scale of the project and McDermott's utilization of Chinese facilities underscore the importance of regional collaboration and supply chain diversification. The 2030 and 2035 targets are key indicators to watch closely for long-term energy security and export potential.