Field/project development

ADNOC Rolls Out Fresh Upstream, Downstream Investments

Energy giant also forms venture with GE to reduce emissions from gas turbines.

ADNOC awards near-$1- billion EPC contract designed to keep Umm Shaif field production at capacity.

Abu Dhabi National Oil Company (ADNOC) has both pledged and welcomed several new investments designed to bolster crude oil production, its downstream and chemicals business, and its decarbonization road map. The company said it awarded a $946 million engineering, procurement, and construction (EPC) contract for the strategic long-term development of its Umm Shaif field to National Petroleum Construction Company after a competitive tender process. The scope of the award covers engineering, procurement, fabrication, installation, and commissioning activities required to maintain Umm Shaif’s 275,000 B/D crude oil production capacity, increase efficiencies, and enhance the field’s long-term potential.

“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 5 million barrels of oil production capacity a day by 2030,” said Yaser Saeed Almazrouei, ADNOC upstream executive director. “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."

The EPC contract, which is due to be completed in 2025, comprises two packages for network expansion and new wellhead towers. The first includes modifications and extension of existing facilities with installation of new subsea cables and pipelines for debottlenecking. The second includes the design of three lean wellhead towers with associated new pipelines.

Umm Shaif is ADNOC’s most historic offshore asset, and 2022 marks the 60th anniversary of the UAE’s first oil export of Umm Shaif crude oil.

Elsewhere, Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA’ZIZ) signed investment agreements with eight UAE-based investors, marking the first domestic public private partnership (PPP) in Abu Dhabi’s downstream and petrochemicals sector. The agreements comprise commitments by the investors to invest in an up to 20% stake in a portfolio of chemicals projects worth $4 billion within the TA’ZIZ Industrial Chemicals Zone, alongside ADNOC, ADQ, and other global strategic partners in Ruwais, Abu Dhabi.

Lastly, ADNOC and GE Gas Power formed a joint cooperation initiative to develop a decarbonization roadmap that includes reducing carbon emissions from gas turbines used to power ADNOC’s downstream and industry operations, including at the Ruwais Industrial Complex in Abu Dhabi. The deal follows ADNOC and TAQA’s $3.6 billion team-up on a project aimed at decarbonizing offshore operations.

This initiative further supports the UAE Net Zero by 2050 Strategic Initiative. The announcement follows the recent clean power agreement between ADNOC and Emirates Water and Electricity Company (EWEC) and enhances ADNOC’s pathway to decarbonization while enabling sustainable future growth.

Under the terms of the initiative, ADNOC and GE will explore using hydrogen and hydrogen-blended fuels for lower-carbon power generation; evaluate introducing ammonia as a fuel to power ADNOC’s GE gas turbines; integrate carbon-capture solutions at ADNOC’s power generation facilities; and explore joint research and development programs to develop solutions to reduce carbon emissions from gas-based power generation.

Globally, more than a hundred GE gas turbines have operated on fuels that contain hydrogen, accumulating more than 8 million operating hours.