ADNOC Awards McDermott $1B+ Contract for Umm Shaif Gas Cap Boosting Project
ADNOC has selected McDermott for a "mega contract" valued at over US$1 billion for the Umm Shaif Integrated Gas Cap and Surface Pressure Boosting Project, a critical step in boosting the UAE's natural gas output.
The short version
- ADNOC awarded McDermott and its Qingdao McDermott Wuchuan (QMW) consortium a contract valued at over US$1 billion for Package 4 of the Umm Shaif Integrated Gas Cap and Surface Pressure Boosting (SPB) Project.
- The contract's scope includes the complete Engineering, Procurement, Construction, and Installation (EPCI) of a new surface pressure boosting facility, featuring one of the Middle East's heaviest offshore topsides upon completion.
- This award is a key component of the broader $6.2 billion Umm Shaif Gas Cap development, which aims to unlock over 600 million standard cubic feet per day of natural gas.
- Engineering and project management activities will be led from McDermott's offices in the UAE, while fabrication will occur at QMW, its joint venture yard in Qingdao, China.
- Production from the Umm Shaif Gas Cap development is expected to commence by 2030, supporting ADNOC's strategic energy objectives.
ADNOC has chosen McDermott and its Qingdao McDermott Wuchuan (QMW) consortium for a contract valued at more than US$1 billion, marking a significant step in the UAE's efforts to boost its natural gas production. The contract, confirmed by McDermott on August 24, 2026, and independently reported by outlets like Oil Review Middle East and Offshore Energy, targets Package 4 of the crucial Umm Shaif Integrated Gas Cap and Surface Pressure Boosting (SPB) Project. This substantial award underscores ADNOC's confidence in McDermott's capabilities for complex offshore developments, a key pillar in the nation’s long-term energy strategy.
What is the Umm Shaif Integrated Gas Cap and Surface Pressure Boosting Project?
McDermott's scope of work encompasses the complete Engineering, Procurement, Construction, and Installation (EPCI) for a new surface pressure boosting facility. This involves the construction and installation of a jacket and topside, alongside necessary brownfield modifications. A notable feature of the project is the topside, which upon completion, is expected to be one of the heaviest offshore modules ever installed in the Middle East, according to reports from McDermott and Offshore Energy. The project's engineering and management will be handled from McDermott's UAE offices, with fabrication occurring at its joint venture fabrication yard, QMW, in Qingdao, China.
Mike Sutherland, McDermott's Senior Vice President, Offshore Middle East, highlighted the significance, stating, "This award reflects ADNOC's confidence in McDermott's ability to deliver complex offshore developments safely and efficiently. Leveraging our extensive regional experience and integrated execution capabilities, we look forward to supporting ADNOC's production objectives and contributing to the UAE's long-term energy ambitions."
What is the broader context of ADNOC's investment?
This "mega contract" is a critical piece of the Umm Shaif Long Term Development Plan (LTDP), a broader initiative with a final investment decision (FID) value of $6.2 billion (AED 22.6 billion) announced on July 21, 2026. The overarching goal of the Umm Shaif Gas Cap development project is to maximize gas recovery from the Umm Shaif field and significantly increase gas production. The project is designed to unlock more than 600 million standard cubic feet per day (scfd) of natural gas and associated gas liquids, a volume equivalent to nearly 10% of the UAE's current daily gas consumption.
This development aligns with ADNOC's accelerated integrated global gas growth strategy. The strategy aims to harness the UAE's extensive gas resources – the world's seventh-largest – and expand its Liquefied Natural Gas (LNG) portfolio. This move is crucial for meeting the rising domestic and global demand for reliable, lower-carbon energy. ADNOC Gas has outlined plans to invest $28 billion between 2026 and 2030 to support these ambitions.
Who are the key players in the Umm Shaif field?
ADNOC holds a 60% operating interest in the Umm Shaif and Nasr offshore concession through ADNOC Offshore. Its international partners in this venture include TotalEnergies (20%), Eni (10%), and China National Petroleum Corporation (CNPC) (10%). The Umm Shaif field itself is steeped in history, discovered in 1958 and commencing production in 1962, making it one of Abu Dhabi's longest-operating offshore fields. Located approximately 85 miles northwest of Abu Dhabi in the Arabian Gulf, it produces both crude oil and natural gas.
Prior to McDermott's award, the FID for the Umm Shaif Gas Cap project in July 2026 also included the award of three other EPC contracts totaling $5.1 billion for various large-scale offshore and onshore infrastructure. Additionally, a $365 million (AED 1.3 billion) 14-well drilling and integrated drilling services program is being executed by ADNOC Drilling over 18 months, utilizing three existing rigs.
When is production expected to begin?
Production from the Umm Shaif Gas Cap development is anticipated to commence by 2030. The successful completion of this project is instrumental in supporting ADNOC's broader strategic objectives, which include achieving five million barrels of oil production capacity per day by 2030, in addition to significantly boosting the UAE's overall gas output.
Frequently asked questions
What is the primary goal of the Umm Shaif Integrated Gas Cap and Surface Pressure Boosting Project?
The primary goal is to maximize gas recovery from the Umm Shaif field and significantly increase natural gas production, aiming to unlock over 600 million standard cubic feet per day (scfd) of natural gas and associated gas liquids.
When is the Umm Shaif Gas Cap development expected to begin production?
Production from the Umm Shaif Gas Cap development, including the facilities built by McDermott, is expected to begin by 2030.
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