Jan 06 | 2022
Umm Shaif Overhaul Provides Project Opportunities
By Simon West
Abu Dhabi National Oil Co, or ADNOC, is spending nearly US$1 billion on the offshore Umm Shaif oilfield, ensuring project logistics a new source of cargo-carrying opportunities.
Investment in the field, located 150 kilometres northwest of Abu Dhabi city, will improve production efficiencies and sustain output capacity at 275,000 barrels per day, ADNOC said. The state oil giant is targeting a production capacity of 5 million barrels per day by the end of the decade.
An EPC contract worth US$946 million was awarded to Abu Dhabi-based engineer National Petroleum Construction Co., and will cover engineering, procurement, fabrication, installation and commissioning activities.
“The development plan for Umm Shaif underpins ADNOC’s commitment to maintain its position as a leading low-cost oil producer and strengthens our role as a reliable energy provider to customers around the world,” Yaser Saeed Almazrouei, ADNOC’s upstream executive director, said in a statement.
The EPC contract, slated for completion in 2025, comprises two packages.
A first package will focus on modifications and extensions to existing facilities and the installation of new subsea cables and pipelines for debottlenecking, while a second will include the design of three new well-head towers with associated new pipelines.
“The contract incorporates ‘fit for the future’ technology, including rigless electrical submersible pumps and other digital field technologies, which will increase efficiencies while maintaining current production capacity,” ADNOC said.
More than three-quarters of the contract value will flow back into the UAE economy through ADNOC’s in-country value program, an initiative launched in 2018 to spur opportunities for local suppliers and boost private sector participation.
Umm Shaif is ADNOC’s oldest offshore asset, with crude first exported from the field in 1962.
In December, the oil firm announced a US$127 billion spending plan through 2026 to bolster its upstream, downstream and clean energy businesses.
Find out more about the region's major projects at Breakbulk Middle East 2022, on 1-2 February at the Dubai World Trade Centre in Dubai.
