2 months ago
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 ***** ociated liquids, equivalent to roughly 10% of current UAE domestic gas consumption. First production is targeted for 2030.
#mcdermott
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 ***** ociated liquids, equivalent to roughly 10% of current UAE domestic gas consumption. First production is targeted for 2030.
#mcdermott
3 months ago
ADNOC Gas reported net income of $665 million for the second quarter of 2026, exceeding its previously stated guidance range despite disruptions to operations and product shipments during the period.
The Abu Dhabi-listed gas processor also took final investment decisions on the second and third phases of its Rich Gas Development project, awarding engineering, procurement and construction contracts worth a combined $8.2 billion.
The investments form part of a broader expansion program that ADNOC Gas now expects will increase EBITDA by around 60% by 2030 compared with 2023 levels. The company had previously targeted growth of more than 40% between 2023 and 2029.
ADNOC Gas said it expects to invest about $28 billion between 2026 and 2030 to support the revised target.
Under the latest Rich Gas Development awards, China's Wison Engineering received a $3.9 billion contract for Phase 2, which will add a natural gas processing train at the Habshan complex.
#ADNOC #development #expects
The Abu Dhabi-listed gas processor also took final investment decisions on the second and third phases of its Rich Gas Development project, awarding engineering, procurement and construction contracts worth a combined $8.2 billion.
The investments form part of a broader expansion program that ADNOC Gas now expects will increase EBITDA by around 60% by 2030 compared with 2023 levels. The company had previously targeted growth of more than 40% between 2023 and 2029.
ADNOC Gas said it expects to invest about $28 billion between 2026 and 2030 to support the revised target.
Under the latest Rich Gas Development awards, China's Wison Engineering received a $3.9 billion contract for Phase 2, which will add a natural gas processing train at the Habshan complex.
#ADNOC #development #expects
3 months ago
ADNOC Gas, the gas business of the Emirati energy major, will spend more than $8 billion on its Rich Gas Development project, the company said today, as it eyes 60% growth in its earnings before interest, tax, depreciation, and amortization by 2030.
The Rich Gas Development project covers several gas production facilities, including the Habshah gas project, which is the UAE's largest gas processing facility, and the Ruwais LNG project, also in the UAE.
Of the total investment, $3.9 billion would go towards building a new gas processing train at the Habshah facility, to be built by Wison Engineering, and $4.3 billion would be invested in a new natural gas liquids fractionation unit at Ruwais LNG. The new investment follows a $5-billion commitment to the Rich Gas Development project made earlier.
The Ruwais project is set to be one of the largest liquefied natural gas facilities in the Middle East. Slated to enter operation in late 2028, it will more than double ADNOC Gas's existing LNG capacity to roughly 15 million tons per year. The plant's two 4.8-mtpa liquefaction trains will leverage artificial intelligence and advanced technologies to improve safety, efficiency, and emissions performance, ADNOC said earlier.
The Emirati company has been actively expanding in natural gas amid strong global demand projections, despite the current supply disruption in the Persian Gulf. "This is a defining moment for ADNOC Gas. With the final investment decision and contract awards for the Rich Gas Development Project, we are not only accelerating one of the world's largest gas-processing growth programs – we are raising our ambition, targeting 60% EBITDA growth by 2030," the company's chief executive, Fatema Al Nuaimi said.
#project #development
The Rich Gas Development project covers several gas production facilities, including the Habshah gas project, which is the UAE's largest gas processing facility, and the Ruwais LNG project, also in the UAE.
Of the total investment, $3.9 billion would go towards building a new gas processing train at the Habshah facility, to be built by Wison Engineering, and $4.3 billion would be invested in a new natural gas liquids fractionation unit at Ruwais LNG. The new investment follows a $5-billion commitment to the Rich Gas Development project made earlier.
The Ruwais project is set to be one of the largest liquefied natural gas facilities in the Middle East. Slated to enter operation in late 2028, it will more than double ADNOC Gas's existing LNG capacity to roughly 15 million tons per year. The plant's two 4.8-mtpa liquefaction trains will leverage artificial intelligence and advanced technologies to improve safety, efficiency, and emissions performance, ADNOC said earlier.
The Emirati company has been actively expanding in natural gas amid strong global demand projections, despite the current supply disruption in the Persian Gulf. "This is a defining moment for ADNOC Gas. With the final investment decision and contract awards for the Rich Gas Development Project, we are not only accelerating one of the world's largest gas-processing growth programs – we are raising our ambition, targeting 60% EBITDA growth by 2030," the company's chief executive, Fatema Al Nuaimi said.
#project #development
3 months ago
(By Oil & Gas 360) – This week underscored how quickly geopolitical uncertainty can reshape market sentiment, even as companies remain focused on long-term capital discipline. Oil prices strengthened on renewed uncertainty surrounding the Iran conflict, while producers continued investing in natural gas, offshore development, and high-quality shale **** ets.
At the same time, mergers and acquisitions slowed, balance sheets strengthened, and executive leadership changes signaled the industry's continued focus on creating shareholder value through disciplined growth rather than aggressive expansion.
Brent crude climbed as uncertainty surrounding the Iran conflict returned to the forefront. Goldman Sachs said Brent is likely to trade in an $80 to $90 per barrel range until markets receive clarity through either a U.S.–Iran agreement or a significant escalation. Meanwhile, reports indicated a proposed Strait of Hormuz agreement could give Iran greater control over inbound shipping traffic, adding another layer of uncertainty to global energy markets. ADNOC also issued a statement clarifying reports surrounding attacks on its facilities.
Why it matters:
Markets continue to trade on geopolitical expectations rather than purely on supply and demand. The future of Hormuz remains one of the most important variables influencing global oil prices.
U.S. upstream mergers and acquisitions declined sharply during the second quarter as commodity price volatility made buyers more cautious. Despite the slowdown, demand for high-quality Permian Basin **** ets remained strong. **** ex agreed to acquire U.S. tight oil and gas **** ets for $320 million, while bp expanded its natural gas portfolio by acquiring Woodside's stake in Trinidad's Calypso gas project.
#Iran #uncertainty #markets #surrounding
At the same time, mergers and acquisitions slowed, balance sheets strengthened, and executive leadership changes signaled the industry's continued focus on creating shareholder value through disciplined growth rather than aggressive expansion.
Brent crude climbed as uncertainty surrounding the Iran conflict returned to the forefront. Goldman Sachs said Brent is likely to trade in an $80 to $90 per barrel range until markets receive clarity through either a U.S.–Iran agreement or a significant escalation. Meanwhile, reports indicated a proposed Strait of Hormuz agreement could give Iran greater control over inbound shipping traffic, adding another layer of uncertainty to global energy markets. ADNOC also issued a statement clarifying reports surrounding attacks on its facilities.
Why it matters:
Markets continue to trade on geopolitical expectations rather than purely on supply and demand. The future of Hormuz remains one of the most important variables influencing global oil prices.
U.S. upstream mergers and acquisitions declined sharply during the second quarter as commodity price volatility made buyers more cautious. Despite the slowdown, demand for high-quality Permian Basin **** ets remained strong. **** ex agreed to acquire U.S. tight oil and gas **** ets for $320 million, while bp expanded its natural gas portfolio by acquiring Woodside's stake in Trinidad's Calypso gas project.
#Iran #uncertainty #markets #surrounding
3 months ago
ADNOC has approved a $6.2 billion final investment decision to develop the Umm Shaif Gas Cap, marking another step in its strategy to expand natural gas production and liquefied natural gas exports as global demand for gas continues to rise.
The offshore project, located at Abu Dhabi's longest-producing offshore field, is expected to deliver more than 600 million standard cubic feet per day of natural gas and ******* ociated gas liquids by 2030. According to ADNOC, that volume is equivalent to nearly 10% of the UAE's current daily gas consumption, supporting domestic energy security while increasing supplies available for international markets.
The development will be carried out alongside ADNOC's concession partners TotalEnergies, Eni and China National Petroleum Corporation.
As part of the project, ADNOC awarded three engineering, procurement and construction contracts worth a combined $5.1 billion to consortiums of UAE and international contractors. The company also approved a $365 million drilling program covering 14 wells, which will be executed by ADNOC Drilling over 18 months using three existing rigs.
The investment forms part of ADNOC's broader gas expansion strategy, which seeks to monetize the UAE's vast natural gas resources while growing its global LNG business. The company has previously announced plans to build a global LNG marketing and trading platform and is targeting 47 million tonnes per annum of marketable LNG capacity by 2035.
#natural #million #investment #offshore
The offshore project, located at Abu Dhabi's longest-producing offshore field, is expected to deliver more than 600 million standard cubic feet per day of natural gas and ******* ociated gas liquids by 2030. According to ADNOC, that volume is equivalent to nearly 10% of the UAE's current daily gas consumption, supporting domestic energy security while increasing supplies available for international markets.
The development will be carried out alongside ADNOC's concession partners TotalEnergies, Eni and China National Petroleum Corporation.
As part of the project, ADNOC awarded three engineering, procurement and construction contracts worth a combined $5.1 billion to consortiums of UAE and international contractors. The company also approved a $365 million drilling program covering 14 wells, which will be executed by ADNOC Drilling over 18 months using three existing rigs.
The investment forms part of ADNOC's broader gas expansion strategy, which seeks to monetize the UAE's vast natural gas resources while growing its global LNG business. The company has previously announced plans to build a global LNG marketing and trading platform and is targeting 47 million tonnes per annum of marketable LNG capacity by 2035.
#natural #million #investment #offshore
4 months ago
ADNOC and its international investment platform XRG have signed a Strategic Collaboration Agreement with ****** an's Mitsui & Co. to pursue new business opportunities spanning the energy value chain, deepening a partnership that dates back to the 1970s.
The agreement, signed during ADNOC Managing Director and Group CEO Sultan Al Jaber's visit to ****** an, establishes a framework for the companies to explore cooperation across liquefied natural gas (LNG), crude oil, sulfur, shipping, and chemicals, while also evaluating international energy investment opportunities through XRG.
The companies will ****** s collaboration on crude oil market development and long-term supply arrangements, LNG sales and portfolio optimization, sulfur procurement and logistics, and shipping solutions covering LNG, ammonia, sulfur, and other commodities.
The partnership will also examine opportunities in lower-carbon fuels and chemicals, including methanol and projects at the UAE's TA'ZIZ industrial and chemicals hub, alongside broader international investments across the energy sector through XRG.
The agreement builds on ADNOC's longstanding relationship with Mitsui and reinforces the UAE's role as a key supplier to ****** an, where ADNOC currently provides around one-third of the country's crude oil imports.
The agreement, signed during ADNOC Managing Director and Group CEO Sultan Al Jaber's visit to ****** an, establishes a framework for the companies to explore cooperation across liquefied natural gas (LNG), crude oil, sulfur, shipping, and chemicals, while also evaluating international energy investment opportunities through XRG.
The companies will ****** s collaboration on crude oil market development and long-term supply arrangements, LNG sales and portfolio optimization, sulfur procurement and logistics, and shipping solutions covering LNG, ammonia, sulfur, and other commodities.
The partnership will also examine opportunities in lower-carbon fuels and chemicals, including methanol and projects at the UAE's TA'ZIZ industrial and chemicals hub, alongside broader international investments across the energy sector through XRG.
The agreement builds on ADNOC's longstanding relationship with Mitsui and reinforces the UAE's role as a key supplier to ****** an, where ADNOC currently provides around one-third of the country's crude oil imports.
4 months ago
The Abu Dhabi National Oil Company (ADNOC) has finalised a 15-year sales and purchase agreement (SPA) to supply one million tonnes per annum (mtpa) of liquefied natural gas (LNG) to Inpex from the Ruwais LNG project.
Located in Al Ruwais Industrial City, Abu Dhabi, the Ruwais LNG project is due to begin commercial operations in 2028.
With this contract, long-term commitments now cover more than 90% of Ruwais LNG's projected 9.6mtpa production capacity. ****** anese customers account for nearly 23% of this committed volume.
The announcement took place during a visit to ****** an by the United Arab Emirates' Minister of Industry and Advanced Technology, Sultan Al Jaber, who also serves as ADNOC managing director and group CEO and XRG executive chairman.
Ruwais LNG is expected to become the first LNG export plant in the Middle East and Africa region to run on clean power.
Located in Al Ruwais Industrial City, Abu Dhabi, the Ruwais LNG project is due to begin commercial operations in 2028.
With this contract, long-term commitments now cover more than 90% of Ruwais LNG's projected 9.6mtpa production capacity. ****** anese customers account for nearly 23% of this committed volume.
The announcement took place during a visit to ****** an by the United Arab Emirates' Minister of Industry and Advanced Technology, Sultan Al Jaber, who also serves as ADNOC managing director and group CEO and XRG executive chairman.
Ruwais LNG is expected to become the first LNG export plant in the Middle East and Africa region to run on clean power.
4 months ago
Previously, we reported that Abu Dhabi's flagship crude, Murban crude, has rapidly risen to prominence, with Murban crude futures having rapidly evolved from a regional benchmark into a primary global pricing standard. Known for its high API gravity and low sulfur content, Murban serves as a globally recognized energy benchmark traded on the ICE Futures Abu Dhabi (IFAD) exchange. By offering continuous screen-trading, deep liquidity and the removal of destination restrictions, Murban has bypassed older, restricted benchmarks like Platts Dubai, introducing unprecedented transparency and price discovery to Middle Eastern crude.
However, the Middle East conflict has upended oil market dynamics, giving Asian refiners a distinctive advantage.
The Abu Dhabi National Oil Co. (ADNOC) is now transitioning the Official Selling Prices (OSPs) for its three offshore crude grades--Upper Zakum, Das, and Umm Lulu--from a differential against Murban futures to a differential against the Dubai benchmark. This change will apply to prompt cargoes loading two months ahead, while the flagship Murban crude remains tied to Murban futures.
ADNOC's decision to price its offshore crude grades against the Dubai benchmark instead of Murban corrects a structural economic distortion that has penalized buyers for years. Murban is a premium, light-sweet crude grade, whereas the offshore grades—Upper Zakum, Das, and Umm Lulu—are medium-sour barrels, yielding completely different product slates.
During the height of the U.S.-Iran conflict, extreme market backwardation and sudden premium demand for light ends caused front-month Murban futures on the IFAD exchange to surge. Because Upper Zakum and Das were priced as a differential pegged directly to Murban, these medium-sour barrels became artificially and prohibitively expensive for Asian refiners, completely detached from their actual physical market fundamentals. By shifting the offshore grades to a Dubai-linked formula—the undisputed global baseline for medium-sour crude—ADNOC is realigning these crudes with their true physical peers, such as Oman and Qatar's Al-Shaheen.
However, the Middle East conflict has upended oil market dynamics, giving Asian refiners a distinctive advantage.
The Abu Dhabi National Oil Co. (ADNOC) is now transitioning the Official Selling Prices (OSPs) for its three offshore crude grades--Upper Zakum, Das, and Umm Lulu--from a differential against Murban futures to a differential against the Dubai benchmark. This change will apply to prompt cargoes loading two months ahead, while the flagship Murban crude remains tied to Murban futures.
ADNOC's decision to price its offshore crude grades against the Dubai benchmark instead of Murban corrects a structural economic distortion that has penalized buyers for years. Murban is a premium, light-sweet crude grade, whereas the offshore grades—Upper Zakum, Das, and Umm Lulu—are medium-sour barrels, yielding completely different product slates.
During the height of the U.S.-Iran conflict, extreme market backwardation and sudden premium demand for light ends caused front-month Murban futures on the IFAD exchange to surge. Because Upper Zakum and Das were priced as a differential pegged directly to Murban, these medium-sour barrels became artificially and prohibitively expensive for Asian refiners, completely detached from their actual physical market fundamentals. By shifting the offshore grades to a Dubai-linked formula—the undisputed global baseline for medium-sour crude—ADNOC is realigning these crudes with their true physical peers, such as Oman and Qatar's Al-Shaheen.
4 months ago
The national oil company of the United Arab Emirates, ADNOC, has signed agreements with BP and TotalEnergies to let the European oil and gas supermajors take 10% each in the consortium developing one of Abu Dhabi's largest gas fields.
Both BP and TotalEnergies announced on Thursday they had signed their respective concession agreements to join the development of the Bab Gas Cap project in Abu Dhabi.
BP will now hold a 10% interest in the Bab Gas Cap concession, which is expected to produce up to 1.5 billion cubic feet per day (bcfd) of gas. The Bab Gas Cap project, the largest gas cap development of its kind globally, is made up of three reservoirs in the Bab Field – one of Abu Dhabi's largest onshore oil fields – and involves the co-production of gas and condensate.
The new concession for the Bab Gas Cap project will be operated by ADNOC Onshore, with ADNOC holding 60%, BP and TotalEnergies 10% each, China's CNPC with an 8% interest, ****** anese JODCO/INPEX with 5%, China's ZhenHua (4%), and South Korea's GS Energy with 3%.
"The Bab Gas Cap project is well in line with TotalEnergies' Upstream strategy by adding low-cost, low-emissions resources with significant potential for production growth," Patrick Pouyanné, chairman and chief executive of TotalEnergies, said in a statement today.
Both BP and TotalEnergies announced on Thursday they had signed their respective concession agreements to join the development of the Bab Gas Cap project in Abu Dhabi.
BP will now hold a 10% interest in the Bab Gas Cap concession, which is expected to produce up to 1.5 billion cubic feet per day (bcfd) of gas. The Bab Gas Cap project, the largest gas cap development of its kind globally, is made up of three reservoirs in the Bab Field – one of Abu Dhabi's largest onshore oil fields – and involves the co-production of gas and condensate.
The new concession for the Bab Gas Cap project will be operated by ADNOC Onshore, with ADNOC holding 60%, BP and TotalEnergies 10% each, China's CNPC with an 8% interest, ****** anese JODCO/INPEX with 5%, China's ZhenHua (4%), and South Korea's GS Energy with 3%.
"The Bab Gas Cap project is well in line with TotalEnergies' Upstream strategy by adding low-cost, low-emissions resources with significant potential for production growth," Patrick Pouyanné, chairman and chief executive of TotalEnergies, said in a statement today.
4 months ago
French energy major TotalEnergies has signed an agreement to acquire a 10% interest in the Bab Gas Cap Concession in Abu Dhabi, strengthening its long-standing partnership with the Abu Dhabi National Oil Company (ADNOC) as the UAE accelerates development of its natural gas resources.
The concession will be operated by ADNOC Onshore, which holds a 60% stake, alongside partners bp (10%), CNPC (8%), JODCO/INPEX (5%), ZhenHua (4%), and GS Energy (3%). The project is designed to develop the extensive gas cap resources above the Bab onshore oil field and is targeting production of 1.5 billion cubic feet of gas per day.
The development builds on the 40-year renewal of Abu Dhabi's onshore oil concession in 2015, when international partners, including TotalEnergies, secured continued participation in one of the emirate's largest producing ******* ets. Since then, the companies have advanced plans to commercialize the Bab field's gas resources, which also contain valuable condensates.
The project supports Abu Dhabi's strategy to expand domestic gas production, increase condensate output, and strengthen its growing liquefied natural gas (LNG) business. Additional gas supplies are expected to feed the UAE's expanding LNG value chain, including the Ruwais LNG project, where TotalEnergies also owns a 10% stake following its investment in 2024.
"The Bab Gas Cap project is well in line with TotalEnergies' Upstream strategy by adding low-cost, low-emissions resources with significant potential for production growth," Chairman and CEO Patrick Pouyanné said.
The concession will be operated by ADNOC Onshore, which holds a 60% stake, alongside partners bp (10%), CNPC (8%), JODCO/INPEX (5%), ZhenHua (4%), and GS Energy (3%). The project is designed to develop the extensive gas cap resources above the Bab onshore oil field and is targeting production of 1.5 billion cubic feet of gas per day.
The development builds on the 40-year renewal of Abu Dhabi's onshore oil concession in 2015, when international partners, including TotalEnergies, secured continued participation in one of the emirate's largest producing ******* ets. Since then, the companies have advanced plans to commercialize the Bab field's gas resources, which also contain valuable condensates.
The project supports Abu Dhabi's strategy to expand domestic gas production, increase condensate output, and strengthen its growing liquefied natural gas (LNG) business. Additional gas supplies are expected to feed the UAE's expanding LNG value chain, including the Ruwais LNG project, where TotalEnergies also owns a 10% stake following its investment in 2024.
"The Bab Gas Cap project is well in line with TotalEnergies' Upstream strategy by adding low-cost, low-emissions resources with significant potential for production growth," Chairman and CEO Patrick Pouyanné said.
11 months ago
Germany's economy ministry has given the green light for specialty plastics manufacturer Covestro's takeover by the United Arab Emirates' state-owned energy company.
Covestro and XRG - the investment arm of the Abu Dhabi National Oil Company (ADNOC) - announced on Friday that "all closing conditions of the transaction are fulfilled" after the European Commission approved it last week.
Formerly Bayer’s plastics division before being spun off in 2015, Covestro produces chemicals used in rigid foams for refrigerators and freezers and flexible foams for products such as car seats and mattresses.
Covestro and XRG - the investment arm of the Abu Dhabi National Oil Company (ADNOC) - announced on Friday that "all closing conditions of the transaction are fulfilled" after the European Commission approved it last week.
Formerly Bayer’s plastics division before being spun off in 2015, Covestro produces chemicals used in rigid foams for refrigerators and freezers and flexible foams for products such as car seats and mattresses.
1 yr. ago
