French engineering group Technip Energies has been awarded a detailed engineering contract for the Umm Shaif Gas Cap project in the offshore field in Abu Dhabi. As such, the company will act as subcontractor to Larsen & Toubro Energy Hydrocarbon for package 1. In July the Umm Shaif Gas Cap project, valued at $6.2 billion, was granted a final investment decision by Adnoc and its foreign partners. In the interim, production from the development is expected to start around 2030, with major gas production.

Technip Energies announced the award on 26 August, highlighting its local engineering skills and its experience of offshore projects. L&TEH entered into a contract with Saudi Arabia/UAE-based Lamprell for the main EPC contract of package 1. The Umm Shaif Gas Cap project will yield up to 600 million cubic feet of gas a day. Therefore, this represents almost 10% of the UAE’s current daily gas consumption needs. Oil projects across the Middle East such as the Kuwait oil project at Al-Rawdatain was granted earlier this month, thus opens the door to an official contract announcement. The Kuwait oil project is based on a key water separation plant at Al-Rawdatain. Meanwhile, state-owned Kuwait Oil Company operates as the client for this wide-ranging infrastructure upgrade.

Umm Shaif Gas Cap Project Comprises Three Major EPC Packages

Adnoc Offshore split the engineering, procurement, and construction work into three packages that are valued $5.1 billion in total. In addition, the first offshore package is a 30,000 tonne gas compression system, for the L&TEH/Lamprell consortium. McDermott International, headquartered in the U.S., won the second offshore order, worth more than $1 billion, for another compression system.

In addition, China Petroleum Engineering & Construction Company (CPE) was awarded the onshore contract for gas inlet and processing systems on Das Island. The Umm Shaif Gas Cap reserve is part of the offshore hydrocarbons concession of Umm Shaif and Nasr. Adnoc holds a 51 per cent stake with Italy’s Eni, France’s TotalEnergies and China National Petroleum Corp.

Development Reinforces UAE Energy Security and Export Capacity

The project will release more than 600 million scf of natural gas and associated gas liquids per day. Further, Adnoc subsidiary Adnoc Drilling won a $365 million contract for 14-well drilling and integrated services. Three existing drilling rigs will be used in the 18-month drilling program, with support to the gas cap development.

Project Overview

• Project Value: $6.2 Billion FID ($5.1B EPC packages + $365M drilling)
• Location: Umm Shaif offshore field, 150km northwest of Abu Dhabi
• Operator: Adnoc Offshore (60% stake)
• Partners: Eni (10%), TotalEnergies (20%), CNPC (10%)
• Status: FID approved July 2026, production targeted 2030

Scope

• Two 30,000-tonne offshore gas compression systems
• Onshore gas inlet and processing systems on Das Island
• 14-well drilling program over 18 months
• Surface pressure boosting facilities for Khuff reservoirs

Project Highlights

• Production capacity of 600 million cf/d natural gas
• Equivalent to 10% of UAE’s current daily gas consumption
• Increases condensate output by 50,000 b/d
• 520 million cf/d also feeds into Adnoc sales gas grid

Key Developments

• Technip Energies awarded detailed engineering subcontract 26 August
• L&TEH/Lamprell consortium secured offshore package 1
• McDermott confirmed “mega” contract for offshore package 2
• CPECC also awarded onshore package for Das Island facilities

Key Challenges

• Declining reservoir pressure expected by end of 2028
• Maintaining 90% gas recovery factor at Khuff reservoirs
• Coordinating three separate EPC packages simultaneously
• Fabricating and also installing 30,000-tonne offshore compression systems

Outlook

• Production startup targeted for 2030
• Reinforces UAE’s energy security and export reliability
• Supports industrial and AI infrastructure growth requirements
• UAE also holds seventh-largest gas reserves globally