ADNOC approved a $6.2 billion final investment decision Tuesday to develop the Umm Shaif Gas Cap, an offshore field off Abu Dhabi. The project is expected to add over 600 million cubic feet of gas and gas liquids each day once production starts in 2030, a volume the company pegs at nearly a tenth of what the UAE currently burns through daily.
TotalEnergies, Eni, and China National Petroleum Corporation are ADNOC’s partners on the field. The investment splits into $5.1 billion in engineering and construction contracts for offshore infrastructure and a $365 million, 14-well drilling program that ADNOC Drilling will complete over 18 months using three existing rigs.
Iran has kept the Strait of Hormuz disrupted amid its ongoing war with the US, and that waterway typically moves about a fifth of the world’s LNG cargoes.
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ADNOC Managing Director and Group CEO Sultan Ahmed Al Jaber called the FID part of an effort to “harness the UAE’s vast gas resources and expand our global LNG platform.”
Last month, ADNOC awarded BP and TotalEnergies 10% stakes each in the Bab Gas Cap concession, which the company says will add 1.5 billion cubic feet of gas per day, and it placed a $900 million order earlier this month for four new LNG carriers. The company is targeting 47 million tonnes of LNG capacity annually by 2035.
