McDermott Wins Over $1 Billion EPCI Contract From ADNOC for Umm Shaif Gas Cap Project

Abu Dhabi National Oil Company (ADNOC) has awarded McDermott an Engineering, Procurement, Construction, and Installation (EPCI) contract valued at more than $1 billion for the Umm Shaif Gas Cap development, per reports from Offshore Energy and World Oil published Monday. The contract advances ADNOC's $6.2 billion Umm Shaif Gas Cap project, which reached a final investment decision in July 2026. Co-investors in the project are TotalEnergies of France, Eni of Italy, and CNPC of China.

ADNOC is wholly owned by the Abu Dhabi government and serves as the United Arab Emirates' national oil company. The company has publicly targeted crude oil production capacity of 5 million barrels per day by 2030 as part of its expansion strategy. The Umm Shaif Gas Cap development represents one component of that growth program, targeting the natural gas accumulation above the existing oil reservoir in an offshore Abu Dhabi field that has produced oil since 1962.

McDermott filed for Chapter 11 bankruptcy protection in January 2020 following cost overruns on a series of large lump-sum EPC contracts. The company emerged as a private entity in June 2020, shedding legacy debt and returning to a leaner contract book. Since restructuring, McDermott has pursued Middle East offshore work as a core market, rebuilding its contracting relationships with regional national oil companies including ADNOC.

The EPCI Contract in Context

McDermott's contract exceeds $1 billion and represents approximately 16% of the total $6.2 billion project cost. EPCI contracts in offshore oil and gas typically account for 15% to 30% of total project capital expenditure, covering fabrication, installation, and commissioning of offshore structures. The Umm Shaif EPCI scope falls within that historical range, suggesting ADNOC awarded the full engineering and installation package in a single contract rather than splitting it across multiple contractors. Concentrating the EPCI scope with one lead contractor reduces interface risk on a complex offshore gas development.

The Multi-Stakeholder Ownership Structure

The three international co-investors in the Umm Shaif Gas Cap bring distinct corporate ownership and strategic rationale to the project. TotalEnergies, the French-headquartered integrated energy major, has maintained Abu Dhabi offshore production stakes for decades through successive concession agreements with ADNOC. Eni, the Italian integrated energy company, is majority-owned by the Italian government through the Ministry of Economy and Finance and Cassa Depositi e Prestiti, and has expanded its Abu Dhabi portfolio as part of its global upstream growth strategy.

CNPC, China National Petroleum Corporation, is the parent company of PetroChina and ranks as China's largest state-owned oil and gas enterprise. Its equity stake in Umm Shaif provides long-term gas supply exposure rather than relying on spot market purchases. For China, equity stakes in Middle East gas cap developments represent a strategic hedge against LNG price volatility.

Brent crude traded at $92.34 per barrel intraday Monday on the ICE, per OilPrice.com data updated midday on August 24. The EIA's August 2026 STEO projects Brent at approximately $85 per barrel for Q3 2026, making Monday's price roughly $7 above the agency's central forecast. The sustained elevated price environment strengthens the commercial case for the $6.2 billion capital commitment ADNOC and its partners approved in July 2026.