McDermott wins Nasr expansion job from ADNOC

McDermott has secured a major contract from Abu Dhabi National Oil Co. (ADNOC) to expand the offshore Nasr oilfield in the Persian Gulf.

The award, valued at $750mn-$1bn, covers engineering, procurement, construction, and installation (EPCI) services for the Nasr-115 Expansion Project. This development marks a pivotal step in the Nasr Phase II Full Field Development project, which aims to boost oil production capacity to 115,000 barrels per day (bpd) by 2027.

The project is strategically located around 130km north-west of Abu Dhabi. Under the terms of the agreement, McDermott’s scope of work is comprehensive. It encompasses the delivery of two topside structures, a new manifold tower, a jacket, and a bridge. Furthermore, the contract includes the installation of all associated pipelines and cables, alongside necessary brownfield modifications to integrate new infrastructure with existing facilities.

This expansion is integral to ADNOC’s broader strategic objectives. According to a press release on McDermott’s website, the project supports ADNOC’s P5 project goals, which focus on increasing offshore production capacity. Mike Sutherland, McDermott’s Senior Vice President, Offshore Middle East, said that the company shares ADNOC’s commitment to expanding offshore capacity.

"McDermott shares ADNOC's commitment to increase offshore production capacity and will do its part with safe, efficient delivery of the Nasr-115 Expansion Project to the highest quality standards," Sutherland said. He further noted that McDermott’s "decades-long track record of delivering innovative, comprehensive solutions across complex offshore developments supports ADNOC's vision for sustainable energy growth and to meet its capacity goals as part of the P5 project."

The Nasr field – discovered in 1971 and operated by ADNOC Offshore – represents one of several strategic initiatives undertaken by ADNOC to elevate total Emirati oil production.

Initial production began in January 2015 under Phase I, following development efforts by Japan Oil Development Co. (JODCO), a subsidiary of Inpex Corp. At that time, production ran at a rate of 6,000 bpd with early targets set at 22,000 bpd. The current push towards 115,000 bpd represents a substantial scaling of operations, reflecting the continued vitality of the UAE’s offshore energy sector.

Industry observers view this award as a reinforcement of McDermott’s standing in the Middle East energy market. Angela De Vincentis, McDermott’s Vice President of Operations, Offshore Middle East, highlighted the significance of the partnership.

"This award underscores McDermott's position as a trusted partner in executing large-scale energy infrastructure projects in the region," De Vincentis said in the press release. "We are proud to further support development of the UAE's energy sector in a safe and sustainable manner."