ADNOC Approves $6.2 Billion Umm Shaif Gas Cap Project

The Abu Dhabi National Oil Company (ADNOC) approved a $6.2 billion final investment decision to develop the Umm Shaif Gas Cap, the longest-operating offshore field in Abu Dhabi. Executed alongside partners TotalEnergies, Eni, and China National Petroleum Corporation, the project aims to produce over 600 million standard cubic feet of natural gas and gas liquids per day by 2030. This output represents nearly 10% of the United Arab Emirates' current daily gas consumption, with the potential to eventually reach 1.5 billion cubic feet per day.

ADNOC allocated $5.1 billion for engineering, procurement, and construction contracts and awarded a $365 million 14-well drilling program to ADNOC Drilling. The project utilizes existing offshore facilities and the UAE power grid to lower costs and emissions. Ownership of the concession is split between ADNOC (60%), TotalEnergies (20%), China National Petroleum Corporation (10%), and Eni (10%), with ADNOC Offshore serving as the operator.

This expansion is part of a broader strategy to bolster domestic energy security, support AI infrastructure, and increase global LNG export capacity to 47 million metric tons annually by 2035. The development arrives amid regional instability, where conflicts and the closure of the Strait of Hormuz have disrupted global energy supplies and targeted UAE infrastructure, such as the Habshan gas-processing complex.