Adnoc Accelerates Oilfield Expansion with Umm Lulu Project

Abu Dhabi National Oil Company (Adnoc) has initiated a major maintenance and expansion project for its Umm Lulu oilfield, following its recent announcement of plans to award $55 billion (200 billion dirhams) worth of projects from 2026 to 2028. This accelerated spending strategy comes shortly after the United Arab Emirates exited the Opec group of oil-producing nations. Adnoc is expanding its oil production capacity from 4.85 million barrels per day (bpd) to 5 million bpd, while also heavily investing in scaling up Abu Dhabi’s gas production capacity.

Umm Lulu Future Development Phase 1

Adnoc is pre-qualifying engineering, procurement, and construction (EPC) contractors for the Umm Lulu Future Development Phase 1 project offshore Abu Dhabi, ahead of launching an international tender process. The project aims to increase and sustain the field's oil production capacity to 125,000 bpd from 2029 until 2034, while also boosting water injection capacity and increasing crude oil recovery. Two key EPC packages are planned: EPC-1 and EPC-2, with Adnoc currently seeking interest only for the EPC-1 package.

EPC-1 and EPC-2 Package Details

The EPC-1 workscope includes a multi-slot wellhead platform (WHT-10) that will connect to four oil producing wells, two water injection wells, and four water alternating gas (WAG) injection wells, with six additional slots for future expansion. Associated subsea pipelines, cables, and brownfield modifications are also part of this package. The EPC-2 package includes the multi-slot WHT-9 wellhead platform, potentially linked to seven producer wells and four water injection wells, with at least five spare slots for future expansion.

Operational Context and Strategic Implications

Adnoc Offshore, a subsidiary, operates Umm Lulu, which currently produces over 100,000 bpd of oil and is critical to Abu Dhabi’s plans to reach 5 million bpd capacity. Crude from Umm Lulu is transported via subsea pipeline to Zirku Island for processing and export. Adnoc holds a majority stake in the asset, with partners including TotalEnergies, OMV, and Socar. The UAE’s exit from Opec in May, amid disruptions to Middle East crude production and shipping through the Strait of Hormuz, provides Adnoc with increased leverage for spending on oilfield expansion schemes. CEO Sultan Ahmed Al Jaber stated this decision accelerates investment, expansion, and value creation. Adnoc’s $55 billion projects pipeline spans upstream and downstream operations, aiming to boost the UAE’s manufacturing capacity and in-country value localization program. In addition to Umm Lulu, Adnoc is expanding production at other major offshore oilfields, including Upper Zakum, Lower Zakum, Umm Shaif, and Belbazem.