Adnoc awarded Abu Dhabi National Petroleum Construction Corporation a $946 million contract to develop its offshore Umm Shaif oil field, a move that supports the company's plan to increase production by 2030.

Umm Shaif Oilfield Development Contract

Adnoc said that Adnoc Offshore awarded the contract, which covers the engineering, procurement, manufacturing, installation and commissioning activities required to maintain UmmShaif's 275,000 barrels of crude oil production capacity per day, improve efficiency, and enhance the long-term potential of the field. Yaser Almazrouei, Executive Director of Adnoc Upstream, said: "This important award for the long-term development of Adnoc's pioneer offshore Umm Shaif field will maximize efficiency while maintaining future production and supporting Adnoc to reach 5 million barrels of oil per day production capacity by 2030. Strategic goals.

Umm Shaif’s development plan reinforces Adnoc’s commitment to maintaining its position as a leading low-cost oil producer and strengthens our role as a reliable energy supplier for customers worldwide. The state-owned oil producer plans to substantially increase its investment in hydrocarbons. It has signed multiple contracts with different companies to increase its output to 5 million barrels per day by 2030. Adnoc's board of directors approved a plan to spend AED 466 billion between 2022 and 2026 to expand its upstream production capacity and downstream product portfolio, as well as its low-carbon fuel business and clean energy ambitions.

Umm Shaif is Adnoc's most historic offshore asset. Sixty years ago, in July 1962, the UAE exported oil from this field for the first time. The company stated that under Adnoc's domestic value (ICV) plan, more than 75% of the total contract value will be returned to the UAE economy to ensure more economic value from the contract awarded. The engineering, procurement and construction contracts will be completed in 2025, including two packages for network expansion and new wellhead towers. The first package includes modifications and extensions to the existing structure, as well as the installation of new submarine cables and pipelines to eliminate bottlenecks. The second package includes the design of three lean wellhead towers with associated new piping.

Adnoc said the contract includes technologies known as "fit for the future", including rig-less submersible pumps and other digital field technologies that will increase efficiency while maintaining current production capacity. Ahmad Al Suwaidi, CEO of Adnoc Offshore, said: "This contract is an important contributor to Adnoc Offshore's plan because we will increase production capacity to more than 2 million barrels per day in the next few years to support Adnoc's smart growth strategy." The award follows a fiercely competitive bidding process, which includes a rigorous assessment of the value of contracts that support the UAE’s economic growth and diversification through Adnoc’s ICV program." Keywords: engineering construction, engineering news

The UAE’s efforts to encourage locally manufactured products are part of a broader plan to achieve self-sufficiency in the production of basic commodities and increase the private sector’s contribution to manufacturing. In 2018, Adnoc launched a procurement-led ICV program to encourage UAEization, economic diversification and strategic considerations. As of December 2019, the Adnoc ICV program has pushed more than 44 billion dirhams back into the UAE economy and brought more than 1,500 Emirati into the private sector.Editor/XingWentao