ADNOC Approves $6.2B Investment for Offshore Umm Shaif Gas Cap Project
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Abu Dhabi National Oil Company (ADNOC) has greenlit a $6.2 billion (AED 22.6 billion) final investment decision (FID) for the offshore Umm Shaif Gas Cap development project. This major initiative is projected to produce over 600 million standard cubic feet per day (MMscfd) of natural gas and associated gas liquids by 2030.
The development is situated within the Umm Shaif and Nasr offshore concession. ADNOC Offshore holds a 60% operating stake in the project, with partners TotalEnergies holding 20%, and Eni and China National Petroleum Corp. (CNPC) each holding 10%. First launched in 1962, Umm Shaif is the oldest producing offshore field in Abu Dhabi.
According to ADNOC, this project represents a critical step in its integrated gas growth strategy. Once operational, the field is expected to yield gas volumes equivalent to roughly 10% of the UAE’s current daily consumption, bolstering domestic energy security and increasing supply capacity for global export markets.
The total investment allocates $5.1 billion (AED 18.8 billion) across three engineering, procurement, and construction (EPC) packages to build new offshore infrastructure. An additional $365 million (AED 1.3 billion) has been designated for an 18-month drilling campaign. Under this program, ADNOC Drilling will utilize three existing offshore rigs to drill 14 new wells.
“ADNOC is accelerating its integrated gas strategy to further harness the UAE’s vast gas resources and expand our global LNG platform, as global demand for natural gas continues to rise,” stated Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO. “The Umm Shaif Gas Cap FID is another important milestone in delivering this strategy and reinforcing ADNOC’s position as a reliable gas supplier.”
The project is designed to extract gas cap resources situated above the field’s active oil reservoirs while optimizing condensate recovery. This decision follows the company’s recent Bab Gas Cap concession award, which aims to unlock 1.5 billion cubic feet per day (Bcfd) of natural gas and liquids, supporting ADNOC’s broader goal to achieve 47 million tonnes per annum (tpy) of marketable LNG capacity by 2035.
TotalEnergies Chairman and CEO Patrick Pouyanné noted that the investment represents “another important step in developing Abu Dhabi’s significant gas resources,” adding that it will introduce low-cost, lower-emissions production to the company’s upstream portfolio after 2030.
To minimize environmental impact and lower capital costs, the project will utilize existing offshore facilities and draw electrical power directly from the UAE power grid.
