ADNOC Awards McDermott $1 Billion-Plus Contract for Major Offshore Gas Project

ADNOC Awards McDermott $1 Billion-Plus Contract for Major Offshore Gas Project

Mon, August 24, 2026 at 5:34 PM GMT+3 2 min read

ADNOC has awarded McDermott a contract worth more than $1 billion for a major offshore pressure-boosting facility at Abu Dhabi's Umm Shaif field, as the UAE accelerates investment in natural gas production.

The engineering, procurement, construction and installation contract covers Package 4 of ADNOC's Umm Shaif Integrated Gas Cap and Surface Pressure Boosting Project. McDermott and its Qingdao McDermott Wuchuan consortium will construct and install a new jacket and topside while modifying existing offshore infrastructure.

McDermott did not disclose the exact contract value but classified it as a "mega" award, which the company defines as exceeding $1 billion. The company said the completed topside will be among the heaviest offshore modules ever installed in the Middle East.

The contract follows ADNOC's $6.2-billion final investment decision in July to develop the Umm Shaif Gas Cap alongside TotalEnergies, Eni and China National Petroleum Corporation. The wider project includes three EPC contracts worth a combined $5.1 billion and a 14-well drilling program.

ADNOC expects the development to unlock more than 600 million standard cubic feet per day of natural gas and associated liquids, equivalent to roughly 10% of current UAE domestic gas consumption. First production is targeted for 2030.

Umm Shaif is also one of Abu Dhabi's most important oil assets. ADNOC previously invested $946 million in its long-term development to maintain crude production capacity at 275,000 barrels per day. The field produced the UAE's first exported crude in 1962.

Engineering and project management for McDermott's latest contract will be carried out in the UAE, while fabrication will take place at the QMW yard in Qingdao, China.

The investment forms part of ADNOC's broader push to expand its gas business and become a top-five global gas and LNG player by 2035.

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