U.S.-based energy infrastructure company McDermott International has secured two major contracts in the Middle East, strengthening its role in large-scale natural gas developments across the region.
The awards cover projects in the United Arab Emirates and the eastern Mediterranean. Together, the contracts could be worth more than $1.75 billion and are expected to support future gas production, export capacity, and energy security.
The larger of the two agreements was awarded by Abu Dhabi National Oil Company for work on the Umm Shaif integrated gas cap and surface pressure boosting project offshore Abu Dhabi.
McDermott described the contract as a mega engineering, procurement, construction, and installation award. The company said the project will help increase the UAE’s natural gas supply for domestic use while also supporting growth in liquefied natural gas production and exports.
The Umm Shaif gas cap sits above one of the UAE’s longest-producing offshore oil reservoirs. The field has been in operation since 1958 and remains an important part of the country’s energy sector.
Under the latest contract, McDermott and its Qingdao McDermott Wuchuan consortium in China will deliver a complete scope of work for a new surface pressure boosting facility.
The project includes engineering, procurement, fabrication, transportation, installation, and commissioning activities. It also involves the construction and installation of a large offshore jacket and topside structure.
According to McDermott, the topside module will rank among the heaviest ever installed offshore in the Middle East once construction is completed.
The contract is valued at more than $1 billion and forms part of a wider development plan approved earlier this year.
In July, ADNOC and its partners announced a final investment decision for the offshore project. The overall development is estimated to cost about $6.2 billion.
ADNOC holds a 60 percent stake and serves as operator of the project. The remaining interests are held by TotalEnergies, Eni, and China National Petroleum Corporation.
The current phase is designed to increase gas production capacity to 600 million standard cubic feet per day. According to ADNOC, that amount represents roughly 10 percent of the UAE’s daily gas consumption.
Future phases could further expand production to as much as 1.5 billion standard cubic feet per day.
Engineering and project management activities will be led from McDermott’s UAE offices. Fabrication work is expected to take place at the Qingdao McDermott Wuchuan yard in China over a period of between 24 and 36 months.
Australian engineering company Worley has also participated in the project through front-end engineering and design work.
Alongside the UAE award, McDermott secured another major contract from Eni Cyprus Ltd. to support the development of the Cronos gas field in the eastern Mediterranean.
The project is expected to be worth up to $750 million and will help transform the offshore discovery into a new gas supply hub.
Cronos was discovered offshore Cyprus in 2022 and is estimated to contain around 3 trillion cubic feet of natural gas.
McDermott’s work includes engineering, procurement, construction, and installation of subsea infrastructure required for field development.
The infrastructure will connect the Cronos field to existing offshore facilities linked to Egypt’s Zohr gas field.
The development forms part of a broader strategy to create additional gas export routes into European markets.
Under current plans, gas from Cronos will be transported through a new pipeline to the Zohr system. From there, it will be moved onshore to liquefaction facilities in Damietta, Egypt.
After processing, the liquefied natural gas will be exported to international markets, including Europe.
The project is expected to begin production by 2028 and could strengthen energy links between Cyprus, Egypt, and European customers seeking diversified gas supplies.
Industry analysts view both projects as important investments in future energy production. The developments are also expected to support growing demand for natural gas while expanding export opportunities from the Middle East and eastern Mediterranean regions.
With these new awards, McDermott has strengthened its position in two strategic energy markets and secured a key role in projects that are expected to shape regional gas production for years to come.
