en.Wedoany.com Reported - Abu Dhabi National Oil Company (ADNOC) has approved the final investment decision (FID) for the development of the Umm Shaif Gas Cap project, located in the Umm Shaif and Nasr offshore concession areas in the UAE. The total investment for the project is $6.2 billion, operated by ADNOC (holding a 60% stake), with TotalEnergies (20%), Eni (10%), and China National Petroleum Corporation (CNPC) (10%) as partners.
The project will achieve a production capacity of over 600 million standard cubic feet per day (MMscfd) of natural gas and associated liquids, equivalent to nearly 10% of the UAE's current daily natural gas consumption. First production is expected to commence in 2030, enhancing the country's energy security and its position as a reliable supplier in the international energy market.
Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and CEO of ADNOC, stated that the company is accelerating its integrated gas strategy. He noted that ADNOC is speeding up its comprehensive gas strategy to further leverage the UAE's abundant natural gas resources and expand its global LNG platform, in response to the sustained growth in global gas demand.
The decision includes three engineering, procurement, and construction (EPC) contracts totaling $5.1 billion for the project's offshore infrastructure construction. These contracts have been awarded to consortia comprising UAE companies and international contractors. The development also includes a 14-well drilling program and integrated drilling services valued at $365 million, with work to be carried out by ADNOC Drilling over 18 months using three existing rigs.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, emphasized the importance of this decision for the development of Abu Dhabi's gas resources. He expressed great pleasure in reaching this significant milestone with ADNOC and partners, stating that following the recent Bab Gas Cap concession, this final investment decision represents another important step in developing Abu Dhabi's abundant gas resources. The project will contribute to TotalEnergies' exploration and production segment beyond 2030 through low-cost, low-emission resources.
The Umm Shaif field is Abu Dhabi's oldest offshore oil field, having been in operation since 1962. According to TotalEnergies, the project will achieve a production capacity of over 600 million cubic feet of natural gas per day by 2030, while maximizing condensate recovery by utilizing the gas cap above the reservoir. Leveraging existing offshore infrastructure and power supply from the UAE grid will help reduce project costs and emissions. Additionally, the project has the potential to increase production to 1.5 billion cubic feet of natural gas per day, thereby strengthening the country's gas production growth strategy—the UAE holds the world's seventh-largest natural gas reserves.
