What ADNOC & McDermott's UAE Expansion Says About the Sector

McDermott has been awarded a US$1bn contract to deliver engineering, procurement, construction and installation (EPCI) works for ADNOC’s Nasr-115 project, a state-driven programme to increase the UAE’s output of oil.

American engineering giant McDermott’s latest deal with the Abu Dhabi National Oil Company (ADNOC) speaks to the enduring demand for hydrocarbons within the global energy system.

Valued between US$750m and US$1bn, the Nasr-115 Expansion Project is situated some 130km northwest of Abu Dhabi and forms part of the Nasr Phase II Full Field Development.

The programme aims to raise the field’s oil production capacity to 115,000 barrels per day (bpd) by 2027 – a contribution that will swell global supplies of the fuel.

Strengthening offshore energy systems

The scope of the contract between the two organisations speaks to ADNOC’s determination to maximise its energy output with a series of complex, engineered upgrades.

McDermott is set to oversee everything related to the EPCI of the project, including the fabrication and installation of two topside structures, a new manifold tower, a jacket and a connecting bridge.

This also covers the laying of pipelines and cables, alongside some modifications to the extant infrastructure that should integrate new, advanced hardware into live operations without disruption.

"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," says Mike Sutherland, McDermott's Senior Vice President for Offshore Middle East.

"Our 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 P5 strategy and national capacity growth

Nasr-115 forms an important part of ADNOC’s ambitious P5 strategy, which is all about pushing national oil production to five million barrels per day.

That initiative has become a cornerstone of the UAE’s approach to energy security, reflecting a long-term commitment to maintaining reliable supply amid shifting global dynamics with regards to both trade and geopolitics.

While Western energy companies are weighing transition investments against existing operations, national oil companies (NOCs) like ADNOC are taking advantage of their stable, sovereign reserves.

By expanding capacity, the UAE is reaffirming its status as a energy power that is able to mitigate supply risks and moderate fuel price fluctuations.

Angela De Vincentis, McDermott's Vice President of Operations for Offshore Middle East, sees the partnership as having a real importance to the region.

"This award underscores McDermott's position as a trusted partner in executing large-scale energy infrastructure projects in the region.

"We are proud to further support development of the UAE's energy sector in a safe and sustainable manner."

Technology, efficiency and the energy transition

The next phase of the global hydrocarbons market will likely depend on how effectively legacy infrastructure is able to accommodate and assimilate new technology.

The Nasr-115 project is representative of this meeting of worlds.

It is a fusion of traditional offshore development and digital optimisation, drawing on data-driven systems such as ADNOC’s Robowell technology to enhance control, reduce downtime and curb emissions intensity.

Such integration points toward a more efficient production model – one that balances high output with lower-carbon footprints, giving conventional energy a renewed role during the global transition.

With offshore hubs in places like the North Sea facing rising costs and regulatory headwinds, the UAE’s combination of scale, infrastructure maturity and investment capability will likely position the region well for the decade to come.