ADNOC (oil and gas producer) has awarded McDermott (EPCI contractor) a mega engineering, procurement, construction and installation contract valued at over one billion dollars to advance development of the Umm Shaif field offshore the United Arab Emirates, marking a significant step in the field's long-term expansion strategy.

Contract Scope and Project Role

The contract covers Package 4 of the Umm Shaif Integrated Gas Cap and Surface Pressure Boosting Project, which ADNOC describes as a critical component of the Umm Shaif Long-Term Development Plan. The project is designed to maximize gas recovery from the field and increase gas production.

McDermott and its Qingdao McDermott Wuchuan consortium, referred to as QMW, will provide the complete EPCI scope for a new surface pressure boosting facility.

That scope includes the construction and installation of a jacket and topside, as well as associated brownfield modifications to existing infrastructure. Upon completion, the topside is expected to rank among the heaviest offshore modules ever installed in the Middle East, according to McDermott's announcement made on August 24, 2026.

McDermott defines a mega contract as any award exceeding one billion US dollars.

Execution Strategy and Geographic Footprint

Engineering and project management activities for the contract will be led from McDermott's offices in the United Arab Emirates (UAE). Fabrication work will be carried out at the QMW joint venture fabrication yard located in Qingdao, China. The arrangement reflects McDermott's model of combining regional engineering leadership with its global fabrication network.

The QMW consortium serves as the primary vehicle through which McDermott is delivering the fabrication-intensive elements of the contract, with the joint venture yard in China providing the industrial capacity required for a structure of this scale.

Executive Commentary

Mike Sutherland, McDermott's Senior Vice President for Offshore Middle East, said the award reflects ADNOC's confidence in McDermott's ability to deliver complex offshore developments safely and efficiently.

He pointed to the company's extensive regional experience and integrated execution capabilities as key factors underpinning its ability to support ADNOC's production objectives and contribute to the UAE's long-term energy ambitions.

Angela De Vincentis, McDermott's Vice President of Operations for Offshore Middle East, said the company is proud to expand its role in the advancement of the Umm Shaif field. She described the engagement as strategic and reliable and said it is aligned with ADNOC's vision for sustainable energy growth.

Umm Shaif Field Context

The Umm Shaif field is an established offshore oil and gas producing asset operated by ADNOC. The Integrated Gas Cap and Surface Pressure Boosting Project represents part of the field's longer-term development trajectory, with ADNOC pursuing a structured plan to enhance recovery rates and sustain production levels over time.

The surface pressure boosting facility being constructed under Package 4 is intended to support that goal by maintaining reservoir pressure and enabling continued extraction from the gas cap.

The scale of the topside module reflects the complexity of the surface pressure boosting infrastructure required for a field of Umm Shaif's maturity and production profile.

McDermott's Regional and Global Position

McDermott describes itself as a fully integrated provider of engineering and construction solutions to the energy industry, operating in more than 30 countries with a workforce exceeding 30,000 employees. The company maintains a diversified fleet of specialty marine construction vessels and fabrication facilities around the world.

The Umm Shaif contract adds to McDermott's presence in the Middle East offshore sector, where the company has an established track record of delivering large-scale projects for regional national oil companies.

The award comes alongside other recent activity for the company, including a letter of intent from ExxonMobil in Mozambique for the Rovuma LNG Project, and the company's second-quarter 2026 financial results, both announced through the same period.

Industry Significance

The contract underscores continued investment by ADNOC in the development and optimization of its offshore asset base, with the Umm Shaif Long Term Development Plan representing one of several major field-level programs the national oil company is advancing.

The engagement of a contractor at the mega contract threshold signals the scale of infrastructure investment being directed toward sustaining and growing gas production from the field.

For McDermott, the award represents a continuation of its strategy to secure large-scale integrated contracts in the Middle East, leveraging its UAE-based engineering teams in combination with its QMW fabrication capacity in China to execute projects of this complexity and value.

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