ADNOC announces AED22.6bn investment to develop Umm Shaif gas cap

ADNOC approves AED 22.6bn final investment for Umm Shaif gas cap project

ADNOC approves AED 22.6bn final investment for Umm Shaif gas cap project with TotalEnergies, Eni and CNPC to boost UAE gas output by 2030 and jobs locally.

The Abu Dhabi National Oil Company (ADNOC) has taken the final investment decision to develop the Umm Shaif gas cap project, committing AED 22.6 billion ($6.2 billion) in partnership with TotalEnergies, Eni and CNPC. The Umm Shaif gas cap project is designed to produce more than 600 million standard cubic feet per day of gas and associated liquids, roughly 10% of the UAE’s current daily domestic gas demand. ADNOC says production from the field is expected to come online by 2030, reinforcing national energy security and supporting industrial growth.

ADNOC approves AED 22.6 billion final investment decision

ADNOC’s board has signed off on the capital allocation and project plan, marking the latest step in the company’s integrated gas growth strategy. The investment decision formalises the role of international partners TotalEnergies, Eni and China National Petroleum Corporation (CNPC) in developing offshore infrastructure and reservoir interventions. ADNOC framed the move as consistent with UAE leadership directives to maximise resource value and respond to rising global demand for reliable, lower‑carbon energy supplies.

Expected production volumes and timeline

The project targets production exceeding 600 million standard cubic feet per day of natural gas and associated gas liquids, which ADNOC says will supply around a tenth of domestic daily consumption. ADNOC projects first gas within the decade, with startup planned by 2030, aligning with broader national plans to secure feedstock for industry and power. Officials described the output as critical to meeting local demand while enabling expanded LNG marketing and exports through new trading platforms.

Partners, contracts and capital breakdown

ADNOC will carry out the project alongside strategic partners TotalEnergies, Eni and CNPC, combining international technical capacity with ADNOC’s operating experience. The company awarded three engineering, procurement and construction (EPC) contracts valued at AED 18.8 billion ($5.1 billion) to alliances of leading Emirati and international contractors to build the required offshore infrastructure. Separately, the drilling programme is budgeted at AED 1.3 billion ($365 million), and ADNOC has assigned integrated services to its drilling arm to execute that scope.

Drilling programme and operational execution

The development plan includes a programme of 14 wells to access the gas cap and associated reservoirs, with ADNOC Drilling contracted to deliver the wells over an 18‑month campaign. ADNOC Drilling will use three existing platforms to expedite operations and reduce mobilisation time, the company said. The use of established platforms and local drilling expertise is intended to accelerate delivery and limit disruption to ongoing offshore activities.

Strategic context within UAE gas policy

The Umm Shaif gas cap project is positioned as a central element of ADNOC’s wider strategy to accelerate gas investment and expand its LNG portfolio. The decision follows recent moves by Abu Dhabi’s Supreme Council for Financial and Economic Affairs to grant development and production rights for the gas cap at the Bab field to ADNOC and partners, a separate initiative expected to add as much as 1.5 billion standard cubic feet per day of gas and liquids potential. ADNOC has also launched a global LNG marketing and trading platform based in the Abu Dhabi Global Market, aiming to market up to 47 million tonnes per annum of LNG by 2035.

Economic and industrial implications for the UAE

Officials say the project will bolster the UAE’s credentials as a reliable destination for long‑term energy investment and provide feedstock stability for industrial, manufacturing and advanced technology sectors, including data centres and AI infrastructure. ADNOC framed the development as delivering sustainable value to the nation, building on decades of disciplined management of the country’s oldest producing offshore fields. The contracts and onshore service activity are also expected to generate local jobs and support supply‑chain contractors across the energy sector.

Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC’s Managing Director and Group CEO, said the decision reflects a strategic push to capture greater value from the UAE’s substantial gas resources while meeting rising global demand for lower‑carbon hydrocarbon supplies. He highlighted the role of international partners and the company’s decades‑long operational legacy in offshore Abu Dhabi as foundations for the project’s execution and long‑term value creation.

The Umm Shaif gas cap project will now move into detailed engineering, procurement and construction phases alongside the planned drilling campaign, with ADNOC overseeing coordination among partners and contractors to meet the 2030 production objective. Observers say successful delivery would strengthen domestic supply, expand ADNOC’s LNG-market ambitions and support the UAE’s broader industrialisation and energy transition goals.

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