(WO) — ADNOC has approved a $6.2 billion (AED22.6 billion) final investment decision (FID) for the Umm Shaif Gas Cap development offshore Abu Dhabi, advancing a major natural gas project expected to deliver more than 600 MMscfd of natural gas and associated gas liquids by 2030.
The project, located within the Umm Shaif and Nasr offshore concession, will be developed by ADNOC Offshore, which holds a 60% interest, alongside partners TotalEnergies (20%), Eni (10%) and China National Petroleum Corp. (CNPC) (10%). Umm Shaif, Abu Dhabi’s oldest producing offshore field, has been in operation since 1962.
ADNOC said the development is a key milestone in its integrated gas growth strategy and is expected to produce gas volumes equivalent to nearly 10% of the UAE’s current daily gas consumption, supporting domestic energy security while expanding supplies for international markets.
The investment includes three engineering, procurement and construction (EPC) contract packages totaling $5.1 billion (AED18.8 billion) for new offshore infrastructure. The project also includes a $365 million (AED1.3 billion) drilling and integrated drilling services program, under which ADNOC Drilling will drill 14 wells over an 18-month period using three existing offshore rigs.
“ADNOC is accelerating its integrated gas strategy to further harness the UAE’s vast gas resources and expand our global LNG platform, as global demand for natural gas continues to rise,” said Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO. “The Umm Shaif Gas Cap FID is another important milestone in delivering this strategy and reinforcing ADNOC’s position as a reliable gas supplier.”
The project will develop gas cap resources above the field’s existing oil reservoirs while maximizing condensate recovery. ADNOC said the investment follows the recent award of the Bab Gas Cap concession, which is expected to unlock an additional 1.5 Bcfd of natural gas and associated gas liquids, and supports the company’s target of reaching 47 million tpy of marketable LNG capacity by 2035.
TotalEnergies Chairman and CEO Patrick Pouyanné said the investment marks “another important step in developing Abu Dhabi’s significant gas resources” and will add low-cost, lower-emissions production to the company’s upstream portfolio beyond 2030.
The project will leverage existing offshore infrastructure and electricity supplied from the UAE grid to reduce development costs and emissions while strengthening the UAE’s integrated gas value chain.