ADNOC awards nearly $1 billion EPC contract to NPCC to develop Umm Shaif field

The contract covers the strategic long-term development of ADNOC’s Umm Shaif field and is part of the company’s plan to boost oil production capacity to five million barrels per day by 2030.

Abu Dhabi National Oil Company (ADNOC) announced Wednesday that it had awarded a $946 million engineering, procurement, and construction (EPC) contract to National Petroleum Construction Company (NPCC).

The contract covers the strategic long-term development of ADNOC’s Umm Shaif field and is part of the company’s plan to boost oil production capacity to five million barrels per day by 2030.

The EPC contract, named Long-Term Development Plan – Phase 1 (LTDP-1), was awarded to NPCC after a tender process and covers the engineering, procurement, fabrication, installation and commissioning activities required to maintain Umm Shaif’s 275,000 barrels per day crude oil production capacity, increase efficiencies and enhance the field’s long-term potential.

“This important award for the long-term development of ADNOC’s pioneer offshore Umm Shaif field will maximise efficiencies while maintaining future output and supporting ADNOC’s strategic objective of five million barrels of oil production capacity a day by 2030. In addition, 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 Upstream Executive Director, said in a statement.

In the statement, ADNOC said that over 75 percent of the total award value will return to the UAE economy as part of the company’s In-Country Value programme.

“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,” Almazrouei added.

The contract is set for completion in 2025 and comprises of two packages for network expansion and new well-head towers. The first package includes modifications and extension of existing facilities with installation of new sub-sea cables and pipelines for debottlenecking. The second package includes the design of three lean well-head towers with associated new pipelines.

“This contract is an important contributor to ADNOC Offshore’s plans as we build our production capacity to over two million barrels a day in the coming years in support of ADNOC’s smart growth strategy. The award follows a highly competitive bid process, which included a rigorous assessment of how much of the contract value would support the growth and diversification of the UAE’s economy through ADNOC’s ICV Program,” Ahmad Saqer Al Suwaidi, CEO of ADNOC Offshore, said.