McDermott Wins Major UAE and Cyprus Gas Contracts
McDermott has secured two major offshore energy contracts covering ADNOC’s Umm Shaif gas development in the United Arab Emirates and Eni’s Cronos gas project offshore Cyprus.
What Readers Should Know
- McDermott received a contract valued at more than $1 billion for Package 4 of ADNOC’s Umm Shaif gas development.
- The Umm Shaif project is expected to unlock more than 600 million standard cubic feet per day of natural gas and associated liquids.
- McDermott also secured a subsea contract from Eni Cyprus valued within its $500 million to $750 million “substantial” contract range.
- The Cronos field contains more than 3 trillion cubic feet of gas initially in place.
- Cronos is targeting first gas in 2028, with production routed through Egypt for LNG export.
McDermott Secures Major Umm Shaif Contract
MONTREAL (Oil Monster): U.S.-based energy infrastructure contractor McDermott has secured two large offshore contracts covering major natural gas developments in the United Arab Emirates and the Eastern Mediterranean.
ADNOC awarded McDermott a “mega” engineering, procurement, construction and installation contract for Package 4 of the Umm Shaif Integrated Gas Cap and Surface Pressure Boosting Project offshore Abu Dhabi.
McDermott defines a mega contract as one valued at more than $1 billion.
Package 4 Covers New Pressure Boosting Infrastructure
McDermott and its Qingdao McDermott Wuchuan consortium will provide the complete EPCI scope for a new surface pressure boosting facility, including construction and installation of a jacket and topside as well as associated modifications to existing facilities.
McDermott said the topside will rank among the heaviest offshore modules ever installed in the Middle East once completed.
Engineering and project management will be led from McDermott’s offices in the UAE, while fabrication will take place at the Qingdao McDermott Wuchuan yard in China.
Umm Shaif Development Targets More Than 600 MMscf/d
ADNOC and its partners reached a $6.2 billion final investment decision for development of the Umm Shaif Gas Cap in July 2026.
The project is expected to unlock more than 600 million standard cubic feet per day of natural gas and associated gas liquids, equivalent to almost 10% of the UAE’s current daily gas consumption.
The development forms part of ADNOC’s broader strategy to expand domestic gas production and strengthen the UAE’s LNG supply platform.
McDermott Also Wins Cronos Subsea Contract
Separately, McDermott secured a “substantial” subsea contract from Eni Cyprus Limited for development of the Cronos gas field offshore Cyprus.
McDermott defines a substantial contract as one valued between $500 million and $750 million.
The scope covers project management, engineering, procurement and installation support for the offshore gas development.
Cronos Gas Will Use Existing Egyptian Infrastructure
Cronos is located in deep water in Block 6, approximately 185 kilometers southwest of Cyprus. The field was discovered in 2022 and holds more than 3 trillion cubic feet of gas initially in place.
Eni and project partner TotalEnergies approved development of the field in July, with first gas targeted for 2028.
Production is expected to reach approximately 500 million standard cubic feet per day.
Gas from Cronos will be transported through subsea infrastructure to existing facilities at Egypt’s Zohr field for processing before being transferred to the Damietta LNG plant for liquefaction and export to international markets, primarily Europe.
Project Supports Eastern Mediterranean Gas Development
The Cronos development is designed to use existing Egyptian infrastructure rather than requiring an entirely new LNG export system.
Eni has described the project as an important step toward establishing an Eastern Mediterranean gas hub and expanding the region’s role in supplying European gas markets.
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Courtesy: www.enr.com