Abu Dhabi National Oil Company (ADNOC) announced today the award of a $946 million (AED3.47 billion) Engineering, Procurement, and Construction (EPC) contract to the National Petroleum Construction Company (NPCC) for the strategic long-term development of its Umm Shaif field.
The investment supports ADNOC’s oil production capacity plans of 5 million barrels per day (mmbpd) by 2030 while ensuring energy security for the United Arab Emirates and partners around the world, the company said in a statement. The ‘Long-Term Development Plan – Phase 1’ (LTDP-1) EPC contract was awarded after a competitive tender process.
The award covers engineering, procurement, fabrication, installation and commissioning activities required to maintain Umm Shaif’s 275,000 barrels per day (mbd) of crude oil production capacity, increase efficiencies and enhance the field’s long-term potential.
Over 75 percent of the total award value will flow back into the UAE economy under ADNOC’s In-Country Value (ICV) program, ensuring that more economic value remains in the country from the contracts it awards.
Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said, “We are pleased to be collaborating again with NPCC as a contractor bringing leading expertise and advanced technologies along with a proven industry track record.”
” Importantly, the very high In-Country Value generated from this contract award will stimulate new business opportunities for the private sector and, in line with the directives of the UAE’s wise Leadership, support the UAE’s economic growth as we look to our next 50 years.,” he said.
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 the installation of new subsea cables and pipelines for debottlenecking, the statement said
The second package includes the design of three lean well-head towers with associated new pipelines. The contract incorporates ‘fit for the future’ technology including rigless electrical submersible pumps (ESP) and other digital field technologies, which will increase efficiencies while maintaining current production capacity.
Umm Shaif is ADNOC’s most historic offshore asset. The year 2022 marks the 60th anniversary of the UAE’s first oil export of Umm Shaif crude oil (July 1962).
Continuing investment and development at Umm Shaif ensures responsible maximization of profitability, enabling greater value for the UAE, ADNOC and its partners, the statement said.