ADNOC has announced an investment of nearly $1billion to extend the life of the Umm Shaif oil field which started up 60 years ago.
The first oil field to be discovered in waters off Abu Dhabi, and described as ADNOC’s “most historic offshore asset”, Umm Shaif exported first oil in July 1962 and the new cash injection will see it maintain production capacity of 275,000 barrels per day “even as it matures”.
The investment supports plans from ADNOC to boost production capacity to five million barrels per day by 2030.
The “Long-Term Development Plan – Phase 1” engineering, procurement and construction contract, worth $946m, has been awarded by ADNOC Offshore to the UAE’s National Petroleum Construction Company after a competitive tender process.
It includes engineering, procurement, fabrication, installation and commissioning activities to maintain the output of Umm Shaif, while increasing efficiencies and boosting the field’s long-term potential.
Yaser Saeed Almazrouei, ADNOC Upstream executive director, said: “This important award for the long-term development of ADNOC’s pioneer offshore Umm Shaif field will maximize efficiencies while maintaining future output and supporting ADNOC’s strategic objective of five million barrels of oil production capacity a day by 2030.
“In addition, 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.
“We are pleased to be collaborating again with NPCC as a contractor bringing leading expertise and advanced technologies along with a proven industry track record.”
Mote than 75% of the total award value will flow back into the UAE economy under the ADNOC in-country value programme.
Mr Almazrouei added: “Importantly, the very high In-Country Value generated from this contract award will stimulate new business opportunities for the private sector and, in line with the directives of the UAE’s wise Leadership, support the UAE’s economic growth as we look to our next 50 years.”
Umm Shaif lies around 95miles north-west of Abu Dhabi.