More than 75% of the award value will flow back into the country’s economy through Adnoc’s in-country value programme.
The state-owned energy giant Abu Dhabi National Oil Company awarded a Dh3.47 billion ( $946 million) contract to Abu Dhabi’s National Petroleum Construction Company (NPCC) to develop its offshore Umm Shaif field, a move that backs the company’s production capacity plans of 5 million barrels per day by 2030.
Adnoc Offshore awarded the contract which 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, Adnoc said in a statement on Wednesday.
“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 5 million barrels of oil production capacity a day by 2030,” Yaser Almazrouei, Adnoc Upstream’s executive director, said.
“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.”
More than 75 per cent of the total contract value will flow back into the UAE economy under Adnoc’s In-Country Value (ICV) programme, ensuring that more economic value remains in the country from the contracts it awards, the company said.
The engineering, procurement and construction contract, which is due to be completed in 2025, includes 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 de-bottlenecking.
The second package includes the design of three lean well-head towers with associated new pipelines.
The contract incorporates “fit for the future” technology such as rig-less electrical submersible pumps and other digital field technologies, which will increase efficiencies while maintaining current production capacity, Adnoc said.
“This contract is an important contributor to Adnoc Offshore’s plans as we build our production capacity to over 2 million barrels a day in the coming years in support of Adnoc’s smart growth strategy,” Ahmad Al Suwaidi, chief executive of Adnoc Offshore, said.
“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 Programme.”
(Except for the headline, this story has not been edited by The Finance World staff and is published from a syndicated feed.)
