Adnoc invests Dh3.5b to develop historic Umm Shaif field

More than 75 per cent of the total award value will flow back into the UAE economy under Adnoc’s in-country value (ICV) programme. — Wam
More than 75 per cent of the total award value will flow back into the UAE economy under Adnoc’s in-country value (ICV) programme. — Wam

The engineering, procurement, and construction (EPC) contract awarded by Adnoc Offshore is for the strategic long-term development of Adnoc’s Umm Shaif field.



by

Ashwani Kumar

Published: Wed 5 Jan 2022, 4:05 PM

Last updated: Wed 5 Jan 2022, 4:07 PM

Abu Dhabi National Oil Company (Adnoc) awarded Abu Dhabi-headquartered National Petroleum Construction Company a contract worth $946 million (Dh3.47 billion) to develop its historic offshore asset.

The engineering, procurement, and construction (EPC) contract awarded by Adnoc Offshore is for the strategic long-term development of Adnoc’s Umm Shaif field. It was in July 1962 that the UAE exported its first oil shipment from Umm Shaif crude oil. And 2022 marks the 60th anniversary of the historic achievement.

The major investment supports Adnoc’s 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.

Yaser Saeed Almazrouei, Adnoc Upstream executive director, said: “This important award for the long-term development of Adnoc’s pioneer offshore Umm Shaif field will maximise efficiencies while maintaining future output and supporting Adnoc’s strategic objective of five million barrels of oil production capacity a day by 2030.”

The scope of the ‘Long-Term Development Plan – Phase 1’ (LTDP-1) EPC contract 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.

“The development plan for Umm Shaif underpins Adnoc’s commitment to maintain its position as a leading low-cost oil producer and strengthens our role as a reliable energy provider to customers around the world,” Almazrouei noted.

More than 75 per cent of the total award value will flow back into the UAE economy under Adnoc’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.

“We are pleased to be collaborating again with NPCC as a contractor bringing leading expertise and advanced technologies along with a proven industry track record. Importantly, the very high In-Country Value generated from this contract award will stimulate new business opportunities for the private sector and, in line with the directives of the UAE’s wise leadership, support the UAE’s economic growth as we look to our next 50 years,” Almazrouei added.

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.

Ahmad Saqer Al Suwaidi, CEO, Adnoc Offshore, 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. The award follows a highly competitive bid process, which included a rigorous assessment of how much of the contract value would support the growth and diversification of the UAE’s economy through Adnoc’s ICV Programme.” — ashwani@khaleejtimes.com


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