Abu Dhabi has cancelled an estimated $500m project aimed at sustaining crude production from the offshore Umm Shaif field, according to sources familiar with the scheme.

A spokesman for Abu Dhabi National Oil Company (Adnoc) said the scheme was not being pursued for technical reasons.

Engineers determined the project was not required as the gas-to-oil ratio of the field was controlled to maintain production levels, he said.

Project owner Abu Dhabi Marine Operating Company (Adma-Opco) received engineering, procurement and construction (EPC) bids in October 2015 from three companies vying for work on the Umm Shaif scheme.

UAE-based National Petroleum Construction Company (NPCC) emerged as the frontrunner to win the deal after submitting the low bid, sources told MEED. The other bidders were US-based McDermott and the UK’s Petrofac.

Commercial EPC bids were submitted in October, more than a year after the companies lodged technical bids, leaving a lengthy delay in the project’s pre-execution phase.

Adma-Opco aims to sustain the average annual output of the Umm Shaif field at 275,000 barrels a day (b/d) by enhancing the existing infield oil gathering network to sustain the production target.

The infield pipelines transfer crude from the field to the offshore processing platform, from where the oil is transported to Das Island for storage and export.

Adma-Opco plans to install a new manifold tower and riser platform along with the installation and modification of several other facilities.

Adma-Opco is a joint venture of state-owned Adnoc (60 per cent), the UK’s BP (14.67 per cent), France’s Total (13.33) and Japanese Oil Development Company (Jodco; 12 per cent).

The operator has a capacity of 500,000-600,000 b/d largely from two major fields – Umm Shaif and Lower Zakum. It is currently carrying out full-field developments at the Nasr, Satah al-Razboot (Sarb) and Umm al-Lulu fields.