The Abu Dhabi offshore oil project continues to progress rapidly, with new engineering, procurement and construction (EPC) contracts awarded to expand capacity at the world’s second‑largest offshore field. The initiative aims to boost crude production potential and enhance hydrocarbon output efficiency, while integrating advanced drilling techniques and expanded surface facilities offshore Abu Dhabi.

Adnoc Offshore issued the main EPC tender during late 2024 for critical production expansion work at the Upper Zakum offshore field, aiming to raise output to about 1.2 million barrels per day (mbpd). Contractors such as Target Engineering Construction Company have secured contracts to deliver key structures on Assefiya Island, including drilling support, oil processing modules, and platform utilities.

Moreover, the project’s extended reach drilling program achieved a milestone with a new world record for the length of an oil and gas well approximately 50,000 feet drilled from Umm Al Anbar, one of four artificial offshore islands. This engineering feat underpins plans to unlock deeper parts of the reservoir and increase production capacity without extensive new infrastructure.

Development Focus and Technological Advances

The Abu Dhabi offshore oil project involves constructing artificial islands that house processing facilities, drilling rigs, and utilities, enabling efficient field expansion. Artificial island construction continues using innovative land‑based rigs and modular approaches, reducing costs and minimizing environmental impact compared with traditional offshore platforms. Extended‑reach wells and maximum reservoir contact technologies have been central to boosting recovery rates and production efficiency.

Additionally, subsea pipelines, bridge connections, and processing modules facilitate oil extraction, treatment, and export, while accommodation facilities support field personnel. Partners including ExxonMobil and INPEX/JODCO continue to collaborate with Adnoc Offshore to integrate international expertise across drilling and production operations.

Current Status in 2026

As of 2026, construction and expansion works at the Abu Dhabi offshore oil project are advancing into subsequent EPC phases, with significant civil, mechanical, and infrastructure installations ongoing. Contractors are executing fabrication of surface facilities, pipeline networks, and processing units on several artificial islands to support future production ramps. Extended drilling operations continue to target undeveloped reservoir zones to incrementally raise daily output while balancing operational efficiency and cost. Meanwhile, offshore logistics and safety systems are being refined in response to evolving industry standards and supply chain considerations. As development advances, this project reinforces Abu Dhabi’s position as a leading global energy producer.

Furthermore, the broader Middle East energy landscape shows complementary large‑scale projects. For instance, Jordan is evaluating its own strategic energy infrastructure needs, including efforts to boost domestic electricity generation through initiatives such as the proposed $1.25 billion Jordan shale power plant. That project reflects regional momentum in energy capacity expansion and security. Read more in our drafted article on the Jordan shale power plant.

The main scope for the Offshore Oil Project includes the engineering and procurement of several surface facilities. It also includes the construction of these facilities and plants at the upper Zakum’s offshore fields. This includes for main artificial islands namely the South, North, West and Central islands. There are three key bidding company among others that are understood to have taken a keen interest in being part of the project. This includes UK-based Petrofac, Spain’s Tecnicas Reunidas and UAE-based Target Engineering. The client company issued the main tender for the Offshore Oil Project production increment scheme in late February 2023.

Read also: Kuwait Issues a $800M Tender on Fuel Depot Project

Upper Zakum Expansion project will Improves Abu Dhabi’s Standings in the Oil Market

The world’s second largest offshore field and the fourth largest oil field is about to get a reboot in its oil production scheme. This means that the Offshore Oil project in prospect could change Abu Dhabi’s standings in the oil market for the better. Adnoc Offshore seeks under the initiation of UZ 1000 project, seeks to boost oil production to 1.2 million barrels a day. Adnoc has committed to a capital expenditure budget of an estimated $30 billion. The upper Zakum project also holds the record for the world’s longest oil and gas well stretching 50,000 feet. The aim of this is to tap to the unexplored parts of the offshore oil reservoirs. This will potentially increase the production to 15,000 b/d without expanding or building new infrastructure. The offshore oil project will also aid in boosting the untapped potential of the offshore oil field.

Project Fact Sheet: Abu Dhabi Offshore Oil Project

Project Name: Abu Dhabi Offshore Oil Project – Upper Zakum Expansion

Location: Upper Zakum offshore field, ~84 km northwest of Abu Dhabi islands, UAE

Field Operator: Adnoc Offshore (part of ADNOC Group)

Project Type: Offshore oilfield expansion, enhanced production capacity

Production Target: ~1.2 million barrels per day (mbpd) by phased completion

Key Components:

• Artificial island infrastructure (Assefiya, Umm Al Anbar, West, North, South)
• Extended‑reach wells and drilling platforms
• EPC surface facilities and processing units
• Subsea pipelines and utility networks

Technology Focus: Extended‑reach drilling, maximum reservoir contact, modular integration

Status (2026): Ongoing EPC execution and drilling expansion phases

Infrastructure Milestone: Record‑length 50,000‑foot oil and gas well achieved

Project Team: Abu Dhabi Offshore Oil Project

Client/Owner: Adnoc Offshore (Abu Dhabi National Oil Company subsidiary)

Engineering, Procurement & Construction Leads:

• Target Engineering Construction Company (EPC contracts)
• International EPC partners (subject to award)

Drilling Partner: ADNOC Drilling (world‐record extended wells)

Strategic International Partners: ExxonMobil, INPEX/JODCO

Artificial Island Construction: Multi‑discipline civil and marine contractors

Pipeline & Subsea Infrastructure: Integrated fabrication teams and subsea specialists

Field Operations & Safety: Adnoc Offshore operations and logistics units

Environmental & Compliance Advisors: Independent consultants (project‐wide)