Adnoc Accelerates $55 Billion Spending Drive with Umm Shaif Oilfield Expansion

Abu Dhabi National Oil Company (Adnoc) has launched the bid process for two major engineering, procurement, and construction (EPC) packages as part of the multibillion-dollar expansion of its offshore Umm Shaif oilfield. This initiative aligns with the state-owned giant's recent announcement of plans to award 200 billion dirhams ($55 billion) worth of projects between 2026 and 2028, signaling an accelerated spending drive. The announcement followed the UAE's departure from the Opec group of oil-producing nations.

Project Scope and Production Targets

The project, known as Umm Shaif Long Term Development Project 2.1 (LTDP-2.1), aims to sustain the field's oil production capacity at 390,000 barrels per day (bpd), with a peak target of 430,000 bpd. This expansion is part of Adnoc's broader goal to increase its overall oil production capacity to 5 million bpd from the current 4.85 million bpd, with some sources indicating the company may be targeting an even higher capacity.

EPC Package Details

The two EPC packages, collectively valued at upwards of $5 billion, cover onshore island facilities and related offshore infrastructure. Adnoc has floated expressions of interest (EoIs) inviting leading domestic and international contractors, with pre-qualification expected and an international tender process anticipated later this year.

• Onshore Island Facilities: The scope includes construction of a new Umm Shaif combined artificial island with topsides facilities for drilling, processing, and non-processing operations. It requires a three-phase separation system with two trains each capable of 135,000 bpd, two trains of associated gas compression, and a gas dehydration system with a capacity of 275 million cubic feet per day each. Additional work includes produced water treatment, water injection, utilities, process buildings, and tie-in facilities.
• Offshore Infrastructure: This package includes three water injection wellhead towers, one electrical submersible pump (ESP) wellhead tower, one riser platform, two flare towers, one manifold tower, offshore bridges, and associated support towers. It also covers segments of well fluid pipelines, main oil lines, injection water pipelines, export gas pipelines, subsea cables, and brownfield modification work on existing Umm Shaif platforms.

Previous and Related Developments

Adnoc has a history of advancing Umm Shaif expansion phases. Earlier this year, it awarded a front-end engineering and design contract to Australia's Worley for the LTDP-1 project. In 2022, NPCC (now NMDC Energy) secured a key EPC contract for the LTDP-1 programme. Additionally, McDermott International has been working on a $2 billion-plus offshore deal for the previous Phase 2.0, which involved multiple facilities including a large water injection platform and several wellhead platform topsides. Beyond Umm Shaif, Adnoc is also expanding production at other major offshore oilfields such as Upper Zakum, Lower Zakum, Umm Lulu, and Belbazem.

Strategic Context

Following the UAE's exit from Opec, Adnoc CEO Sultan Ahmed Al Jaber stated that the move provides greater ability to "accelerate investment," expand, and create value, reflecting confidence in the company's capabilities and ambition for a more diversified economy.