QMW Joins McDermott on ADNOC's $1 Billion-Plus Umm Shaif EPCI Contract
McDermott and QMW have secured a $1 billion-plus EPCI contract for Package 4 of ADNOC's Umm Shaif project, with engineering led from the UAE and major fabrication in Qingdao.
On August 24, McDermott and its consortium with Qingdao McDermott Wuchuan Offshore Engineering Co. (QMW) were awarded the engineering, procurement, construction and installation contract for Package 4 of ADNOC’s Umm Shaif Integrated Gas Cap and Surface Pressure Boosting project.
McDermott classified the award as “mega,” its designation for contracts valued at more than $1 billion. The specific contract value was not disclosed.
The scope covers complete EPCI delivery of a new offshore surface pressure boosting facility, including a jacket, topside and associated modifications to existing brownfield facilities. Once completed, the topside is expected to rank among the heaviest offshore modules ever installed in the Middle East.
McDermott’s offices in the United Arab Emirates will lead engineering and project management, while the jacket, large topside and other core fabrication work will be carried out at QMW’s yard in Qingdao, China.
Umm Shaif is not a newly discovered field. It is Abu Dhabi’s longest-operating offshore field and has been producing since 1962. After more than six decades of development, ADNOC is pursuing gas-cap development, surface pressure boosting and brownfield modifications to unlock additional gas and associated liquids.
A gas cap is an accumulation of natural gas above the oil in a reservoir. As a field produces over time, reservoir and wellhead pressures decline, which can restrict the movement of gas into processing and export systems. A surface pressure boosting facility uses large compression systems to lower the required inlet pressure and sustain gas flow, helping improve recovery and extend the field’s economic life.
Because the project must connect with operating offshore facilities, the contract also includes brownfield modifications. Compared with a standalone newbuild platform, this work requires closer management of existing interfaces, shutdown windows, offshore construction and systems commissioning.
Package 4 forms part of a much larger ADNOC gas investment. In July 2026, ADNOC took the final investment decision on the $6.2 billion Umm Shaif Gas Cap development. Three major offshore infrastructure EPC packages have a combined value of approximately $5.1 billion. ADNOC Drilling will invest a further $365 million in a 14-well drilling and integrated drilling-services program delivered over 18 months. Production is expected by 2030, unlocking more than 600 million standard cubic feet per day of natural gas and associated liquids.
QMW is a 50/50 joint venture between McDermott and Wuhan Wuchuan Investment Holding Co., Ltd. Its scope covers project management, procurement, engineering, fabrication, construction and pre-commissioning for onshore modules, offshore topsides, FPSO modules, subsea structures and manifolds. The Qingdao yard covers approximately 600,000 square metres, has annual fabrication throughput of up to 90,000 metric tons, and features a 300-metre skidway with a maximum loadout capacity of 50,000 metric tons, supporting the fabrication and loadout of large integrated offshore decks.
The execution model combines engineering and project management in the UAE, large-scale fabrication in Qingdao and McDermott’s offshore installation capability. QMW did not win the entire billion-dollar contract as an independent prime contractor; it is a key consortium member responsible for core fabrication. The significance is that QMW is participating directly in ADNOC’s major-project delivery chain rather than acting only as an ordinary fabrication subcontractor.
For McDermott, the award is another major offshore order during the company’s operational recovery.
McDermott reported backlog of approximately $15.8 billion at the end of June 2026 and second-quarter net income of $41 million, reversing a first-quarter loss. The billion-dollar-plus Umm Shaif award will further reinforce its position in the Middle East offshore engineering market.
If successfully delivered, the contract will provide QMW with a significant reference on a major ADNOC development. It will also test whether a consortium model combining international EPCI capability with large-scale Chinese offshore fabrication can be replicated across future ADNOC and Middle East projects.