Daily Briefing

Middle East & SEA Offshore: ADNOC's $10B Upper Zakum Awards, KBB Phase 2 Sanctioned, and Manpatu Platform Installed

Three offshore milestones signal sustained capital commitment to subsea infrastructure across the Middle East and Southeast Asia — each carrying distinct implications for regional talent markets and workforce planning

📅 June 5, 2026 ⏱ 5 min read 🏷 Project Awards · FID · Platform Installation

Executive Summary

The offshore sector across the Middle East and Southeast Asia closed the first week of June with three milestones signalling sustained capital commitment to subsea and offshore infrastructure. ADNOC Offshore confirmed its contractor lineup for the $10 billion-plus Upper Zakum expansion. ConocoPhillips sanctioned Phase 2 of the KBB gas field offshore Sabah, Malaysia. And Pertamina Hulu Mahakam completed installation of the Manpatu platform in East Kalimantan. Each carries distinct implications for regional talent markets, supply chain mobilisation, and workforce planning across the SEA–Middle East corridor.

ProjectValue / ScaleKey PlayersTimelineTalent Demand
ADNOC Upper Zakum Expansion $10B+ NMDC Energy, McDermott, Saipem (EPC); Technip Energies (FEED); ExxonMobil, INPEX, JODCO (partners) Phased delivery through 2027 2,000–3,000 skilled professionals at peak execution — project engineers, construction superintendents, commissioning & HSE specialists
ConocoPhillips KBB Phase 2 ~RM1.3 billion ConocoPhillips Sabah Gas (30%, operator); Petronas Carigali (40%); Shell Energy Asia (30%) FID May 21, 2026; drilling & expansion underway Drilling crews, subsea engineers, gas processing specialists with SE Asia operating experience
Pertamina Manpatu Platform 80 MMSCFD (~20% of Mahakam output) Pertamina Hulu Mahakam (operator); PT Meindo Elang Indah (fabrication) Installation complete; first gas targeted 2027 Offshore commissioning engineers, process technicians, O&M personnel with gas processing expertise

1. ADNOC Selects NMDC Energy, McDermott, and Saipem for $10B+ Upper Zakum Expansion

Offshore installation — ADNOC Upper Zakum expansion
📍 UAE, Upper Zakum Field, 84 km offshore Abu Dhabi 📅 June 4, 2026 Source: Construction Review Online / Industry Reports

ADNOC Offshore has named NMDC Energy, McDermott International, and Saipem as the selected EPCI contractors for the Upper Zakum UZ 1.5MMBD project — a more than $10 billion offshore expansion targeting production capacity of 1.5 million barrels per day at the world's second-largest offshore oil field.

The project encompasses offshore processing facilities, wellhead platforms, utility and water injection systems, pipelines, and extensive brownfield integration, with phased delivery through 2027. Technip Energies led the pre-FEED and FEED phases. The contractor selection represents one of the largest single-field offshore expansion milestones in recent memory and underscores ADNOC's drive toward a national production target of 5 million bpd by 2027.

The selection cements Upper Zakum's artificial-island development model — pioneered during the UZ 750 phase completed in 2022 — as the centrepiece of Abu Dhabi's offshore growth strategy. Strategic partners ExxonMobil, INPEX, and JODCO retain equity stakes.

💡 Talent Market Impact: Three tier-one EPCI contractors mobilising concurrently creates fierce competition for experienced project engineers, construction superintendents, commissioning specialists, and HSE professionals — not only in Abu Dhabi but across fabrication yards in the UAE, Saudi Arabia, and South Korea. The brownfield integration scope further drives demand for personnel with existing asset familiarity. Intellis Global estimates the programme could absorb 2,000–3,000 skilled professionals at peak execution, compounding existing supply shortages across the Gulf's offshore workforce and pushing day rates for senior discipline engineers higher through 2027.

2. ConocoPhillips Takes FID on KBB Phase 2, Deepening Sabah Gas Commitment

Offshore platform — KBB gas field Sabah
📍 Malaysia, KBB Field, 123 km offshore Sabah 📅 FID May 21, 2026 | Reported June 4, 2026 Source: Bernama / Industry Reports

ConocoPhillips Sabah Gas Ltd has taken final investment decision on May 21, 2026 for Phase 2 of the Kebabangan (KBB) gas field, with joint venture partners committing approximately RM1.3 billion to drill additional wells and expand production capacity.

Commissioned in 2013, KBB is the anchor supplier of LNG and domestic gas for Sabah. The KBB Cluster is jointly owned by ConocoPhillips Sabah Gas Ltd (30%, operator), Petronas Carigali (40%), and Shell Energy Asia (30%). This FID carries strategic weight — coming just over a year after ConocoPhillips assumed operatorship, during which reliability improved and safety performance strengthened, the decision validates the operator transition and signals long-term confidence in Sabah's upstream gas potential.

The development aligns with Petronas's plan to invest RM50–60 billion annually in upstream activities, with Sabah positioned as a cornerstone of Malaysia's energy security alongside recent PSC awards.

💡 Talent Market Impact: Phase 2 will generate demand for drilling crews, subsea engineers, and gas processing specialists familiar with Southeast Asian operating environments. The emphasis on strengthening local talent aligns with Malaysia's local content priorities, creating opportunities for nationals with offshore gas experience. For international contractors, the FID reinforces Sabah's trajectory as a sustained regional gas hub with follow-on potential across adjacent production-sharing contracts.

3. Pertamina Hulu Mahakam Installs Manpatu Platform, Targeting 20% Production Boost

Offshore installation vessel — Manpatu platform East Kalimantan
📍 Indonesia, South Mahakam, East Kalimantan 📅 June 4, 2026 Source: Balpos / Industry Reports

PT Pertamina Hulu Mahakam (PHM) has completed the jacket and topside installation for the Manpatu Offshore Platform in South Mahakam, East Kalimantan, marking a critical milestone ahead of targeted first gas in 2027. Located approximately 35 kilometres off Balikpapan, the platform is projected to add 80 million standard cubic feet per day (MMSCFD) — roughly 20% of the Mahakam Block's current output.

The installation involved a 1,000-tonne topside lift, following jacket sail-away in April and load-out from PT Meindo Elang Indah's Tanjung Pinang yard. The Manpatu development forms part of Pertamina's strategy to arrest production decline in the mature Mahakam Block, a cornerstone of Indonesia's domestic gas supply since the 1970s.

The on-schedule installation demonstrates growing in-house project execution capability following the transition from TotalEnergies to Pertamina operatorship. Indonesia's upstream regulator SKK Migas separately targets national output of 612,500 bpd of oil and 5,469 MMSCFD of gas in 2027 — targets that make projects like Manpatu essential.

💡 Talent Market Impact: The project highlights Indonesia's increasing domestic offshore construction sophistication, with key fabrication executed by Indonesian yards and heavy-lift operations managed through local contractor networks. As the platform moves toward commissioning, demand will shift toward offshore commissioning engineers, process technicians, and O&M personnel with gas processing expertise. The broader Mahakam Block's sustained investment programme positions East Kalimantan as one of SEA's most active offshore talent markets.

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Data Sources: Construction Review Online, Bernama, Balpos, ADNOC Official Communications, ConocoPhillips Investor Relations, Pertamina Hulu Mahakam, SKK Migas. Data as of June 5, 2026.

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