Umm Shaif Gas Project has gained a major construction boost after ADNOC awarded McDermott a contract exceeding $1 billion. The award covers Package 4 of the Umm Shaif Integrated Gas Cap and Surface Pressure Boosting Project. McDermott and its Qingdao McDermott Wuchuan consortium will deliver engineering, procurement, construction and installation (EPCI) services.
The contract supports ADNOC’s wider plan to maximise gas recovery from the offshore Umm Shaif field. It also strengthens the UAE’s drive to expand domestic gas production and energy security.
Importantly, McDermott has not disclosed the contract’s exact value. However, the contractor classifies the award as a mega contract exceeding $1 billion.
Umm Shaif Gas Project accelerates offshore construction
The construction package will deliver a new surface pressure boosting facility at the Umm Shaif field. The scope includes a new offshore jacket and topside structure.
Additionally, the contractor will execute brownfield modifications across existing offshore infrastructure. These modifications will connect the new facilities with Umm Shaif’s existing production systems.
The topside will rank among the heaviest offshore modules ever installed in the Middle East. Consequently, its fabrication, transportation and installation will require substantial marine construction capabilities.
McDermott will manage engineering and project activities from its offices in the UAE. Meanwhile, the QMW joint-venture yard in Qingdao, China, will handle fabrication.
This delivery structure combines regional engineering expertise with large-scale offshore fabrication capacity. It also supports coordinated execution across engineering, fabrication and offshore installation activities.
The award follows ADNOC’s July 2026 final investment decision for the wider development. ADNOC approved $6.2 billion to develop the Umm Shaif Gas Cap project.
The latest award also strengthens ADNOC’s wider offshore construction pipeline. This follows the $1.2 billion North East Bab Expansion, where ADNOC’s 1,400-square-kilometre concession area attracted interest from Petrofac and ENPPI.
The two developments highlight ADNOC’s continued investment in major upstream infrastructure across Abu Dhabi. While the North East Bab project focuses on expanding oil production, the Umm Shaif development targets additional gas recovery and production
Umm Shaif Gas Project targets major gas production gains
The wider Umm Shaif development will unlock more than 600 million standard cubic feet of gas daily. That output represents almost 10% of the UAE’s current daily gas consumption.
Furthermore, the development will produce associated gas liquids while strengthening Abu Dhabi’s offshore energy infrastructure.
ADNOC plans to begin production from the development in 2030. The company expects the project to support growing domestic and international gas demand.
The $6.2 billion investment includes $5.1 billion for three major engineering and construction packages. ADNOC will also invest $365 million in a 14-well drilling program.
ADNOC Drilling will execute the drilling program over 18 months using three existing rigs. The program will complement the offshore facilities covered under the development plan.
Moreover, ADNOC operates the Umm Shaif development through its offshore business. The company targets increased gas recovery while maintaining the field’s broader production role.
The field remains strategically important because it has supported Abu Dhabi’s energy industry for decades. Umm Shaif produced the UAE’s first exported crude in 1962.
ADNOC previously invested $946 million in the field’s long-term development. That investment supported crude production capacity of 275,000 barrels per day.
The latest investment therefore adds significant gas infrastructure to an established offshore production hub.
The project also aligns with ADNOC’s strategy to expand its gas and LNG portfolio. Rising demand from domestic industries, international markets and emerging infrastructure supports that strategy.
Overall, McDermott’s award moves another critical construction package forward within Abu Dhabi’s wider gas expansion program.
Project Fact Sheet
Name: Umm Shaif Integrated Gas Cap and Surface Pressure Boosting Project.
Location: Umm Shaif offshore field, Abu Dhabi, United Arab Emirates.
Contract package: Package 4.
Contract value: More than $1 billion.
Wider project investment: $6.2 billion.
Construction scope: Engineering, procurement, construction and installation.
Main facility: Offshore surface pressure boosting facility.
Major structures: Jacket and topside.
Additional scope: Brownfield modifications to existing offshore infrastructure.
Fabrication location: QMW joint-venture yard in Qingdao, China.
Engineering location: McDermott offices in the UAE.
Expected gas output: More than 600 million standard cubic feet daily.
Expected production start: 2030.
EPC investment: $5.1 billion across three packages.
Drilling investment: $365 million.
Wells: 14.
Drilling duration: 18 months.
Existing rigs: Three ADNOC Drilling rigs.
Wider project partners: TotalEnergies, Eni and CNPC.
Strategic objective: Maximize gas recovery and increase UAE gas production.
Project Team
Project owner: ADNOC.
Offshore operator: ADNOC Offshore.
EPCI contractor: McDermott.
Consortium partner: Qingdao McDermott Wuchuan.
Fabrication facility: QMW joint-venture yard.
International partner:
Drilling contractor: ADNOC Drilling.
Development framework: Umm Shaif Long Term Development Plan.
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