Abu Dhabi National Oil Company (ADNOC) has made a $6.2bn (AED 22.6bn) final investment decision to further develop the Umm Shaif offshore gas field, partnering with TotalEnergies, Eni, and CNPC, according to a report by Splash247. The Umm Shaif Gas Cap project will unlock more than 600 million standard cubic feet per day of natural gas and associated gas liquids, equivalent to almost 10% of the UAE’s current daily gas consumption. Production from the development is expected by 2030.
Project Components and Contracts
The FID includes three EPC packages totalling $5.1bn (AED 18.8 billion) for large-scale offshore infrastructure, awarded by ADNOC to consortiums comprising major UAE and international contractors. Additionally, a $365m (AED 1.3bn) 14-well drilling and integrated drilling services program will be delivered by ADNOC Drilling over 18 months using three unnamed rigs.
| Component | Value | Details |
|---|---|---|
| Total FID | $6.2bn (AED 22.6bn) | Umm Shaif Gas Cap development |
| Offshore EPC packages | $5.1bn (AED 18.8bn) | Large-scale offshore infrastructure |
| Drilling program | $365m (AED 1.3bn) | 14 wells, 18 months, by ADNOC Drilling |
Strategic Context
“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,” said Ahmed Al Jaber, ADNOC managing director and CEO, according to Splash247. He added that with international partners, ADNOC is “building on decades of responsible stewardship of Abu Dhabi’s longest-operating offshore field to unlock lasting value for the UAE and our customers.”
The Umm Shaif FID follows the award of the concession agreement for the Bab Gas Cap, which is expected to unlock an additional 1.5 billion standard cubic feet per day of natural gas and associated gas liquids. The Bab Gas Cap project thus represents a larger volume than Umm Shaif, highlighting ADNOC’s broader gas expansion push.
LNG Ambitions
The project also builds on ADNOC’s launch of a global LNG marketing and trading platform, which is targeting 47 million tonnes per year of combined marketable LNG capacity by 2035. This target underscores the company’s commitment to expanding its presence in the global LNG market, leveraging the increased gas output from both Umm Shaif and Bab Gas Cap developments.
Implications for Energy Markets
For commodity traders and analysts tracking global gas and LNG flows, ADNOC’s investment signals a sustained increase in UAE gas production that could support its export capacity in the next decade. The 600m scf/d from Umm Shaif alone contributes to a growing supply pool in the Middle East, even as demand for natural gas rises worldwide. The involvement of international oil majors TotalEnergies, Eni, and CNPC as partners also indicates strong collaboration in the region’s offshore gas development. With production not expected until 2030, near-term market impact is limited, but the long-term outlook for UAE LNG supply is bolstered by these investments.
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