Abu Dhabi National Oil Co. (ADNOC) said Wednesday it has awarded a 3.47 billion dirhams ($946 million) engineering, procurement, and construction (EPC) contract to develop its Umm Shaif offshore field.
The contract, awarded by ADNOC Offshore to National Petroleum Construction Company (NPCC), will support the UAE state oil company's plans to boost production capacity to five million barrels per day (mmbpd) by 2030, it said in a statement.
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 state-owned giant which pumps nearly all the oil in the UAE, said over 75 percent of the total award value will flow back into the UAE economy under its in-country value (ICV) program.
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.
Umm Shaif, which began exporting crude oil in 1962, is among Abu Dhabi's key offshore oilfields which also include Upper Zakum, Lower Zakum, Al Nouf and Belbazem.
ADNOC’s board of directors in November approved a capital expenditure budget of $127 billion for a five-year period between 2022 to 2025, to increase upstream production capacity and increase its downstream assets, of which $43.6 billion is set to be spent on local projects.
In August 2021, ADNOC said it would invest $187 million to expand the production capacity of the Al Nouf oilfield to 175,000 bpd by 2024 from the current 160,000 bpd.
(Reporting by Brinda Darasha; editing by Seban Scaria)
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