The contract awarded by Adnoc Offshore to India’s Larsen & Toubro relates to a key offshore package of the $6.2bn Umm Shaif gas cap project
Indian contractor Larsen & Toubro (L&T) has announced that it has been awarded a major contract by the offshore business of Abu Dhabi National Oil Company (Adnoc Offshore).
Mumbai-headquartered L&T described the order as “ultra-mega”, a term the company uses for contracts valued at more than INR150bn ($1.57bn).
The project will be executed through a consortium, with its subsidiary LTEH Offshore serving as the lead partner, L&T said in a statement on 4 August.
MEED understands that the contract won by L&T relates to an offshore package that forms part of a major Adnoc Offshore project to produce up to 600 million cubic feet a day (cf/d) of natural gas by developing the Umm Shaif gas cap in Abu Dhabi.
L&T won the first offshore package of the Umm Shaif gas cap and surface pressure boosting project in a consortium with Saudi Arabia/UAE-based Lamprell, MEED reported in July.
The following contractors have secured the two offshore packages and one onshore package of the Umm Shaif gas cap project, MEED previously reported:
- First offshore package – fabrication of a 30,000-tonne gas compression system: Larsen & Toubro Energy Hydrocarbon (India) / Lamprell (Saudi Arabia/UAE)
- Second offshore package – fabrication of another 30,000-tonne gas compression system: McDermott (US)
- Onshore package – EPC of gas inlet and processing systems on Das Island: China Petroleum Engineering & Construction Company (CPECC)
“The project involves the development of multiple offshore facilities. As the lead consortium partner, LTEH Offshore will execute the major share of the project scope, covering engineering, procurement, construction, installation and commissioning (EPCIC) of the offshore facilities, in addition to the upgrade of existing facilities,” L&T said in its statement.
“A significant portion of the fabrication work will be undertaken at L&T’s state-of-the-art fabrication yards, leveraging the company’s integrated EPCIC capabilities and extensive track record in delivering large and complex offshore developments across the region,” the Bombay Stock Exchange-listed company added.
Umm Shaif gas cap project
Adnoc Offshore operates the Umm Shaif hydrocarbons development, which is located 150 kilometres (km) northwest of the city of Abu Dhabi. The field is located within Abu Dhabi’s offshore Umm Shaif and Nasr hydrocarbons concession, previously operated by former Adnoc Group companies Adma-Opco and Zadco.
In March and April 2018, Abu Dhabi’s Supreme Council for Financial and Economic Affairs (SCFEA) awarded a 10% stake in the Umm Shaif and Nasr offshore block to Italy’s Eni, 20% to France’s TotalEnergies and 10% to China National Petroleum Corporation (CNPC). Adnoc Group retained the majority 60% interest. The operators produce a total of about 460,000 b/d of oil from the Umm Shaif and Nasr block.
Adnoc, along with its foreign partners, announced achieving a final investment decision (FID) worth $6.2bn on the Umm Shaif gas cap project on 21 July. The FID includes three EPC packages totalling $5.1bn for large-scale offshore infrastructure, “awarded to consortiums comprising major UAE and international contractors,” the state enterprise said without disclosing the contractors it had selected or the scope of work on the packages.
Adnoc added that, as part of the FID, it has also awarded a $365m contract to its subsidiary Adnoc Drilling for a 14-well drilling and integrated drilling services scope, to be delivered over 18 months using three existing rigs.
Production from the development is expected by 2030, the Abu Dhabi energy giant said.
The primary objective of the Umm Shaif gas cap and surface pressure boosting project is to increase gas production by 550 million cubic feet a day (cf/d) and raise associated condensate output by 50,000 barrels a day (b/d).
Adnoc Offshore intends to feed about 520 million cf/d of the additional produced gas into Adnoc Group’s sales gas grid.
Adnoc Offshore is understood to have issued the main EPC tender for the Umm Shaif gas cap and surface pressure boosting project in the first quarter of 2025.
Contractors submitted technical bids for the three EPC packages by the 30 October deadline last year, while commercial bids were submitted by the deadline of 2 February this year.
The following contractors are among those understood to have been bidding for the three EPC packages, according to sources:
- Saipem (Italy) / Seatrium (Singapore)
- Larsen & Toubro Energy Hydrocarbon (India) / Lamprell (Saudi Arabia/UAE)
- NMDC Energy (UAE) / Hyundai Heavy Industries (South Korea)
Offshore package 2:
- China Offshore Oil Engineering Company (COOEC)
- McDermott (US)
- Larsen & Toubro Energy Hydrocarbon (India) / Lamprell (Saudi Arabia/UAE)
- NMDC Energy (UAE) / Hyundai Heavy Industries (South Korea)
Onshore package:
- Archirodon (Greece)
- China Petroleum Engineering & Construction Company (CPECC)
- Engineering for the Petroleum & Process Industries (Enppi; Egypt)
- Galfar Emirates (UAE branch of Oman’s Galfar Engineering & Construction)
- Target Engineering Construction Company (UAE)
Australian firm Worley has performed front-end engineering and design (feed) work on the project.
Gas is produced from the Umm Shaif Khuff and Uweinat reservoirs, as well as from the Arab C and Arab D Early Production Scheme 2. The Umm Shaif Khuff reservoir is a formation that consists of dry gas volumetric reservoirs located in the Umm Shaif field.
Khuff reservoirs have been in production in Abu Dhabi since August 1989. Umm Shaif Khuff gas is currently produced from 28 active wells within the Umm Shaif field. A majority of these wells supply gas to Adnoc Group subsidiaries Adnoc LNG and Adnoc Gas Processing, with the rest supporting oil reservoirs at the Umm Shaif field through gas injection.
The Umm Shaif Super Complex (USSC) processes and transports oil, condensates and natural gas in separate pipelines to Das Island for further processing and export. The condensates collected from the USSC are transported to Das Island through an 18-inch pipeline stretching 34.4km, or are spiked into the 36-inch Adnoc main oil line.
The gas collected from the USSC is transported to Das Island through two 46-inch pipelines, which also run 34.4km.
Pressure at the Umm Shaif Khuff gas reservoirs will start to decline by the end of 2028. The flowing wellhead pressures at some of the Khuff gas wellhead towers are likely to reduce, so boosting well deliverability and increasing the flowrates is necessary.
Therefore, new Khuff surface pressure boosting facilities are required to maintain the plateau – with a goal of achieving a 90% gas recovery factor – and increase production beyond the end of the plateau by lowering pressure at the Khuff reservoirs.
