McDermott Inks Major Deal for ADNOC's Nasr Offshore Oil Expansion

HOUSTON, TX – January 22, 2026 – McDermott has secured a major contract from the Abu Dhabi National Oil Company (ADNOC) to expand a critical offshore oil field, a move that reinforces the contractor's strategic position in the Middle East and underscores the UAE's commitment to aggressively boosting its oil production capacity.

The engineering, procurement, construction, and installation (EPCI) contract, which McDermott defines as being valued between $750 million and $1 billion, is for the Nasr-115 Expansion Project. Located approximately 130 kilometers northwest of Abu Dhabi, the project is a cornerstone of the broader Nasr Phase II Full Field Development, which aims to elevate the field's total oil production to 115,000 barrels per day (bpd) by 2027.

A Pillar in ADNOC's Production Push

This contract is not an isolated event but a strategic component of ADNOC's ambitious long-term vision. The state-owned energy giant has accelerated its production capacity target, aiming to reach 5 million bpd by 2027, a goal brought forward from an original 2030 deadline to meet rising global energy demand. The Nasr-115 expansion is a direct contribution to this so-called "P5 project," a suite of activities designed to achieve this significant output increase.

The Nasr field, which began initial production in 2015, has undergone several development phases. An earlier stage of Phase II, concluded in 2019, increased output to 65,000 bpd. This new expansion represents a substantial further investment to maximize the field's potential. McDermott's scope of work is extensive, involving the delivery of two large topside structures, a new manifold tower, a steel support jacket, a bridge, and all associated subsea pipelines, cables, and modifications to existing facilities. This complex integration of new and existing infrastructure is vital for achieving the new production target.

"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," said Mike Sutherland, McDermott's Senior Vice President, 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."

McDermott Solidifies Middle East Stronghold

The award solidifies McDermott's status as a premier contractor in the highly competitive Middle Eastern EPCI market. The region is a hotbed of activity, with major players like India's Larsen & Toubro (L&T), Italy's Saipem, and Abu Dhabi's own National Petroleum Construction Company (NPCC) all vying for a share of the multi-billion-dollar investments flowing into energy infrastructure. Notably, NPCC and South Korea's Hyundai Heavy Industries (HHI) were awarded packages in a previous phase of the Nasr development, highlighting the fierce competition.

For McDermott, this contract is a significant addition to an already robust backlog, which stood at approximately $15 billion following a successful financial restructuring in 2020. The win demonstrates continued confidence from key clients like ADNOC and showcases the company's operational strength and technical expertise in executing complex offshore projects.

"This award underscores McDermott's position as a trusted partner in executing large-scale energy infrastructure projects in the region," added Angela De Vincentis, McDermott's Vice President of Operations, Offshore Middle East. "We are proud to further support development of the UAE's energy sector in a safe and sustainable manner."

Balancing Barrels with a Greener Horizon

The push to extract more fossil fuels comes at a time when the UAE is also positioning itself as a leader in the global energy transition. This dual strategy—aggressively expanding oil production while simultaneously pursuing ambitious decarbonization goals—reflects the complex reality of balancing current global energy security needs with long-term climate commitments.

ADNOC has committed to achieving net-zero emissions in its operations by 2045 and is investing heavily in decarbonization technologies. The company reports that its upstream operations have one of the lowest carbon intensities in the world, at around seven kilograms of CO2 per barrel of oil equivalent, less than half the global industry average. Key initiatives include a $3.8 billion project to connect its offshore operations to clean onshore grid power, which is projected to cut its offshore carbon footprint by up to 50%. Furthermore, ADNOC is expanding its carbon capture, utilization, and storage (CCUS) capabilities and aims to eliminate routine gas flaring by 2030.

McDermott's own sustainability framework aligns with this approach. The company reported a 35% reduction in its carbon intensity in 2024 and has increased its sourcing of renewable energy. By focusing on operational efficiencies and lower-carbon solutions, both companies are framing the Nasr expansion not merely as an increase in oil volume, but as a project executed within a modern framework of environmental management. The successful and timely completion of the Nasr-115 project will therefore be a testament not only to engineering prowess but also to the industry's evolving approach to large-scale energy development in an era of transition.