Abu Dhabi invests $6.2bn in offshore gas field development

Investing.com -- Abu Dhabi National Oil Company announced Monday a $6.2 billion investment to develop the Umm Shaif Gas Cap, an offshore oil and gas field, as part of its plan to increase natural gas output and liquefied natural gas exports.

The project gains importance as disruptions in the Strait of Hormuz, which handles approximately 20% of global LNG trade, have exposed weaknesses in worldwide energy supply chains.

ADNOC is developing Umm Shaif, Abu Dhabi's oldest active offshore field, in partnership with TotalEnergies, Eni and China National Petroleum Corporation.

The field is projected to produce more than 600 million standard cubic feet of natural gas and associated gas liquids daily, representing nearly 10% of the UAE's current daily gas usage. Operations are scheduled to start by 2030.

The UAE aims to capitalize on its gas reserves while securing domestic energy needs and expanding its presence in international LNG markets. The nation possesses the world's seventh-largest proven gas reserves and currently produces over four million barrels of oil per day.

After exiting OPEC earlier this year, the UAE now operates without production caps. Abu Dhabi plans to exceed 5 million barrels per day of oil output by next year.

"ADNOC is accelerating its integrated gas strategy to further harness the UAE's vast gas resources and expand our global LNG platform, as global demand for natural gas continues to rise," ADNOC CEO Sultan Ahmed Al Jaber said in a statement.

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