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Larsen & Toubro announces EPC agreement with PDO31 July 2026
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Indian contractor Larsen & Toubro (L&T) has announced that it has signed a six-year engineering, procurement and construction (EPC) framework agreement with Petroleum Development Oman (PDO).
Under the agreement, L&T said its subsidiary, L&T Energy Hydrocarbon Onshore, has been selected as one of four EPC contractors to participate in PDO’s upcoming front-end engineering and design (feed) and EPC projects over the agreement period.
MEED recently reported that Mumbai-headquartered L&T had become the fourth contractor to join the pool of EPC service providers created by PDO to facilitate the tendering and award of future greenfield and brownfield projects within its Block 6 concession in the sultanate.
Prior to picking L&T, majority state-owned PDO selected the following contractors:
- Engineering for the Petroleum & Process Industries (Enppi) (Egypt) / Petrojet (Egypt)
- GS Engineering & Construction (South Korea)
- Jereh (China)
L&T was previously expected to join these contractors in the initial round of framework agreement signings that took place on 19 July, but it later engaged in a final round of discussions with PDO over terms and conditions, sources previously told MEED.
“L&T remains committed to supporting In-Country Value (ICV) development in Oman through opportunities for local suppliers, subcontractors and service providers, and the continued development of local capabilities,” the Bombay Stock Exchange-listed company said on 31 July.
Separately, the Egyptian consortium of Enppi and Petrojet confirmed its EPC framework agreement with PDO, adding that its duration is six years.
Contractors holding EPC framework agreements will be invited by PDO to participate in tenders for up to eight projects under the arrangement, which are estimated to have a combined value of up to $6bn.
The framework pool of contractors will be structured similarly to the Long-Term Agreement pool of EPC service providers operated by Saudi Aramco for its offshore and onshore projects.
MEED previously reported that contractors submitted proposals for the EPC framework structure by 27 April.
Before that, PDO issued the tender for the proposed EPC framework agreement on 22 February, setting a deadline of 9 March for technical clarifications and a cut-off date of 11 March to confirm or decline participation, according to sources.
MEED reported last year that PDO had issued a prequalification document on 17 April 2025, outlining its requirements, criteria, planned projects and other aspects of the EPC framework agreement. At that time, PDO aimed to appoint two tiers of contractors for two categories of projects, known as Wave 1 and Wave 2.
PDO’s Wave 1 and Wave 2 projects are as follows:
Raba hub development – Oil
The Raba hub project forms part of the Qarn Alam growth development in the northern area of the PDO concession. The strategy covers nearby fields, including Raba Infill and Raba East.
Production from Raba Infill will be routed to the existing Raba gathering station (RGS), while output from Raba East will be directed to the proposed Raba hub station (RHS).
Modifications to the RGS are planned to accommodate additional volumes from Raba Infill. An interconnection between the RGS and RHS is also proposed to enhance operational flexibility. The project is expected to unlock an estimated 176 million barrels of unconventional reserves and increase production by about 50,400 barrels a day (b/d) by 2029.
Wadi Umairi development – Oil and gas
Scope includes oil and gas processing facilities such as separators, storage tanks, water injection pumps, a gas sweetening unit, off-plot infrastructure and utilities.
Rabab Harweel Integrated Project (RHIP) tranche 2 – Oil and gas
The RHIP involves miscible gas injection at several fields and is divided into two tranches. Tranche 2, scheduled to come on stream from 2028, aims to expand oil production capacity and enhance gas injection.
The scope also includes sustaining gas supply from the reservoir through the installation of a depletion compression facility and expansion of the off-plot gas network.
Bout full-field development – Oil and gas
Scope includes remote manifold stations (RMSs), a gathering station, multiport selector valves, water injection manifolds, separators, a hydrocyclone package, water injection pumps and utilities.
Dulaima carbon dioxide-based enhanced oil recovery – Carbon capture, utilisation and storage
Scope includes a processing facility to handle incremental hydrocarbons and carbon dioxide (CO2) volumes, including CO2 recycle injection.
Makarem development – Sour oil and gas
Scope includes a gathering station, RMSs, water injection systems, manifolds, pumps, separators and utilities. It also involves a greenfield sour gas facility with gas sweetening and sulphur recovery units.
Amal South-East Development South – Gas
Hawqa Hasirah Development South – Gas
PDO previously intended to tender a project to build a new facility to handle additional oil production at the Al-Ghubar field reservoir in the Ghaba salt basin of Qarn Alam under its framework structure with selected EPC contractors, but eventually tendered it separately.
PDO is the operator of the Block 6 hydrocarbons concession in Oman, which is the sultanate’s largest and most prolific concession. Situated onshore and covering an area of 75,119 square kilometres, Block 6 contains 202 oil fields and 43 gas fields, with PDO producing a total of approximately 680,000 b/d of oil and condensates from those fields.
The Omani government holds a 60% stake in PDO. The other shareholders are UK-based Shell (34%), France’s TotalEnergies (4%) and Thai state-owned PTTEP (2%).
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Client seeks fresh PMC bids for Dorra gas project31 July 2026

Al-Khafji Joint Operations (KJO) has sought fresh proposals from engineering firms for a revised tender for project management consultancy (PMC) services for the multibillion-dollar Dorra gas field facilities development project.
MEED has been reporting since last March on KJO’s efforts to advance a project to produce gas from the Dorra offshore field, located in Gulf waters in the Neutral Zone shared by Saudi Arabia and Kuwait.
KJO, which is jointly owned by Aramco subsidiary Aramco Gulf Operations Company and KPC subsidiary Kuwait Gulf Oil Company, has divided the engineering, procurement and construction (EPC) scope of work for the Dorra field gas production project into four EPC packages – three offshore and one onshore.
The tender’s broad scope involves providing PMC services for the EPC works for the Dorra gas facilities development project.
KJO issued the tender for PMC services on 29 September last year, and engineering firms submitted bids on 19 January this year, MEED previously reported.
In the months following bid submission, KJO held discussions with bidders on contract terms and pricing, sources said. The client ultimately decided to retender the PMC services contract with a revised scope of work.
“The regional conflict in the first and second quarters, and Iran’s hostilities against Gulf states, made the future of the [Dorra gas] project uncertain,” one source said.
“[For KJO], developing a gas field that lies in disputed waters with Iran seemed risky business at the time, and that explains the large part of the delay [in the PMC tendering process],” the source added.
KJO has now set a bid submission deadline of 17 August for the revised PMC tender for the Dorra gas facilities development project, sources said.
The following firms, among others, are understood to have been invited by KJO to bid for the revised PMC tender:
- Fluor (US)
- KBR (US)
- Technip Energies (France)
- Wood (UK)
- Worley (Australia)
In addition to these bidders, firms that submitted proposals in the first tender round on 19 January included Saudi Arabia/UAE-based Kent and Spain’s Tecnicas Reunidas.
Dorra offshore and onshore facilities
KJO, meanwhile, is moving forward with the EPC tendering exercise for the main Dorra gas field facilities project.
Indian contractor Larsen & Toubro Energy Hydrocarbon (L&TEH) has won package 1 of the Dorra facilities project, which covers the EPC of seven offshore jackets and the laying of intra-field pipelines. The contract is estimated to be worth between $140m and $150m, MEED reported last October.
A consortium of Italian contractor Saipem and L&TEH is understood to have submitted the lowest bid for offshore packages 2A and 2B, MEED reported in March. The only other consortium said to have submitted bids for packages 2A and 2B comprises Abu Dhabi-based NMDC Energy and South Korea’s Hyundai Heavy Industries.
The EPC scope of work for package 2A includes Dorra gas field wellhead topsides, flowlines and umbilicals. Package 2B involves the central gathering platform complex, export pipelines and cables.
Tecnicas Reunidas is understood to have emerged as the lowest bidder for onshore package 3, sources previously told MEED. Package 3 covers the EPC of onshore gas processing facilities.
Saudi Arabia and Kuwait have been pressing ahead with their plan to jointly produce 1 billion cubic feet a day of gas from the Dorra gas field.
The two countries have been producing oil from the Neutral Zone – primarily from the onshore Wafra field and the offshore Khafji field – since at least the 1950s. With a growing need to increase natural gas production, they have been working to exploit the Dorra offshore field, understood to be the only gas field in the Neutral Zone.
Discovered in 1965, the Dorra gas field is estimated to hold 20 trillion cubic metres of gas and 310 million barrels of oil.
The Dorra facilities scheme is one of three multibillion-dollar projects launched by subsidiaries of Aramco and KPC to produce and process gas from the Dorra field that have advanced in the past few months.
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Saudi Arabia to localise desalination equipment production31 July 2026
Saudi Water Authority (SWA) has announced plans to establish a factory in Saudi Arabia to manufacture energy recovery devices used to reduce power consumption at reverse-osmosis desalination plants.
US-based Energy Recovery will operate the facility with a capacity to produce 2,000 devices a year. Production is scheduled to begin in the first quarter of 2027.
SWA said the facility will be the first factory outside the US to manufacture the specialised equipment.
Domestic demand in Saudi Arabia is estimated at 1,200 devices a year. About 40% of the factory’s production is expected to be supplied to markets in the GCC, Africa and Asia.
Energy recovery devices improve the efficiency of desalination plants by recovering energy from the reverse-osmosis process, reducing power consumption and operating costs.
SWA said local manufacturing will reduce dependence on imports, shorten supply times and improve the reliability of supply chains serving desalination plants.
The authority estimates the market opportunity for the industry at more than SR547m ($146m). This includes about SR247m ($69.5m) in Saudi Arabia and SR300m ($80m) across the Middle East and North Africa.
The project is expected to contribute about SR137m ($36.5m) to Saudi Arabia’s GDP by 2033. SWA expects localisation within the product’s value chain to exceed 80%.
The project is also intended to support knowledge transfer and develop local capabilities in the manufacture of desalination technologies.
SWA led efforts to establish the project in cooperation with Saudi Arabia’s Ministry of Investment, Ministry of Industry & Mineral Resources and Local Content & Government Procurement Authority.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17853316/main.jpg -
EtihadWE seeks bids for retendered substations31 July 2026
Etihad Water & Electricity (Etihad WE) has retendered a contract for the construction of two 33/11kV substations and associated underground cabling works in the Northern Emirates.
The bid submission deadline is 24 August.
Estimated to cost $100m, the project had originally been tendered earlier this year, with bids due on 20 May.
The scope covers a new 33/11kV substation at Umm Dera (UMDR) in Umm Al-Quwain and another at Rams-3 (RMS3) in Ras Al-Khaimah. The contract also includes associated 33kV underground cabling works at both locations.
The works are divided into four packages:
- A1: New Umm Derra 33/11kV Substation (UMDR)
- A2: New Rams-3 33/11kV Substation (RMS3)
- A3: Umm Derra 33kV Underground Cabling Works
- A4 : Rams-3 33kV Underground Cabling Works
Etihad WE has invited prequalified engineering, procurement and construction (EPC) contractors to bid for the project on a lump-sum turnkey basis.
According to the utility, contractors prequalified for both substation and cabling works can bid for the full scope. Contractors qualified only for substation works can bid for the complete substation scope, while those qualified only for cabling works can bid for the complete cabling scope.
The project includes design, engineering, supply, construction, installation, testing and commissioning.
The substation scope includes switchgear, transformers, protection and control systems and Scada systems. The project also covers civil works and supporting infrastructure.
Etihad WE is responsible for electricity and water services in Ajman, Umm Al-Quwain, Ras Al-Khaimah, Fujairah and parts of Sharjah. The utility has been investing in new substations and transmission infrastructure as electricity demand continues to increase across the Northern Emirates.
Earlier in July, the utility tendered a contract to build three new substations in Ajman.
Estimated to cost $150m, the project involves the construction of three new 132/11kV substations in the Bahya, Rumaila and Liwara districts. It also includes associated 132kV underground cabling works to connect the substations to the existing transmission network.
The bid submission deadline is 10 August.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17857843/main.jpg -
Taqa raises $750m to finance water projects30 July 2026
Abu Dhabi National Energy Company (Taqa) has issued a $750m five-year blue bond to finance sustainable water and wastewater management projects.
The company said the transaction is the largest blue bond issuance in the Europe, Middle East and Africa region. It is also the largest blue bond issued by an integrated power and water utility globally.
Issuing the bond allows Taqa to raise money from investors specifically to support water-related environmental projects. These can include desalination, wastewater treatment, water recycling and reuse, and infrastructure that improves water efficiency.
It is the first blue bond issued under Taqa’s Green and Blue Finance Framework, and follows another blue financing transaction in the UAE earlier this year.
On 8 January, Dubai-based Emirates NBD bank announced the completion of a $1bn dual-tranche sustainable bond issuance, comprising a $300m blue tranche with a three-year tenor and a $700m green tranche with a five-year tenor.
Emirates NBD said at the time that the $300m tranche was the largest blue bond issued in the UAE and GCC. The proceeds are intended to support marine conservation and sustainable water projects, while proceeds from the green tranche will finance green initiatives.
Taqa launched its original Green Finance Framework in 2023 and updated it in 2026 to include blue financing instruments. The latest issuance takes its total green and blue labelled bond issuances to $2.6bn since 2023.
The Taqa financing also comes as the company expands and modernises its water infrastructure. Taqa is targeting reverse-osmosis technology for 66% of its desalination capacity by 2030, up from about 40% in 2025.
In June, Taqa awarded a contract for the construction of a 1-million-cubic-metre emergency lagoon in Abu Dhabi. The project will be developed in two phases.
Phase one has a capacity of 500,000 cubic metres and is planned to be completed within 18 months of the contract award.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17845953/main.jpg -
UAE renewables firm secures $375m in financing30 July 2026
Positive Zero, the UAE-based renewable energy firm, has announced the successful closing of a financing facility of up to $375m.
The long-term financing was arranged by Paris-headquartered Natixis Corporate & Investment Banking (Natixis CIB) and Saudi Arabia-based The Arab Energy Fund.
Natixis CIB also acted as financial adviser, facility agent, security agent and green loan coordinator for the transaction.
“The non-recourse financing is the first transaction of its kind in the region for a diversified portfolio of decentralised infrastructure assets, including distributed solar power generation, energy efficiency and clean mobility solutions,” Positive Zero said in a statement.
“The financing will provide substantial long-term capital to support Positive Zero’s continued expansion in the United Arab Emirates, Saudi Arabia, Bahrain, Oman and Qatar, funding the growth of its distributed infrastructure portfolio, capital expenditure programme and strategic development initiatives,” the Dubai-based firm said.
The new debt facility secured by Positive Zero builds on US-based BlackRock’s investment of up to $400m in the company in 2023, “further strengthening the company’s capital structure and supporting the next phase of its growth”.
Positive Zero has the largest distributed solar capacity in the region with more than 500MW in operations and under construction, avoiding more than 450,000 metric tonnes a year of carbon emissions.
The company has also saved over 100 million kilowatt-hours (kWh) in energy consumption across its client portfolio through its energy-efficiency solutions.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17845491/main3835.jpg -
US-Saudi consortium to build $5bn refinery outside Strait of Hormuz30 July 2026
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A consortium of privately owned US and Saudi companies has announced an investment commitment of $5bn to build an integrated oil refining, storage and export facility outside the volatile Strait of Hormuz shipping lane.
After three years of evaluating sites across the Gulf, the consortium has shortlisted three GCC locations beyond the Strait of Hormuz. Discussions have advanced over the past two years, with a preferred site expected to be selected by the end of 2026.
The consortium, Mera Oil, comprises Fort Worth, Texas-based MWG Enterprises; the US-based Patel Family Office; and PWS, an associate company of Saudi Arabia’s AHQ Group.
Mera Oil said it remains open to alternative proposals that meet its infrastructure, resilience and development requirements.
The proposed project will feature a 200,000-barrel-a-day refinery, deepwater port connectivity, large-scale crude and refined-product storage, and marine export facilities.
A pre-feasibility study covering refinery design, logistics, capital requirements and execution planning is at an advanced stage.
Once a host jurisdiction is confirmed, the project will proceed to detailed site assessments and engineering design, with mechanical completion targeted for end-2029, followed by commissioning and the start of commercial operations.
The consortium plans to focus on producing high-specification middle distillates, including ultra-low sulphur diesel and jet fuel, for selected international markets.
The project is expected to occupy about 1,200-1,500 acres of port-connected industrial land and could create up to 3,000 direct jobs, and around 15,000 indirect and induced jobs, during construction and operations.
Mera Oil is also progressing discussions with feedstock suppliers and expects financing to include sponsor equity, sovereign and institutional investment, project finance, export-credit support and sharia-compliant funding structures.
“Designed as a route-resilient energy hub, the development aims to strengthen regional manufacturing, logistics, technical expertise and energy security,” Mera Oil said.
The first phase of the planned investment will “incorporate energy-efficient refining technologies, emissions-control systems, and potential future capabilities including sustainable aviation fuel co-processing and carbon management.”
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17843946/main.jpg -
Sabic posts $100m loss in Q2 2026 due to regional conflict30 July 2026
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Saudi Basic Industries Corporation (Sabic) has reported a net loss of $100m for the second quarter of 2026, which it attributed to the impact of the Iran-US regional conflict on its business.
The company had only returned to profit in the first quarter, registering a net income of $3.52m, after posting a full-year 2025 loss of $6.87bn.
The Saudi petrochemicals giant also said Q2 2026 revenue fell 5% year-on-year to $6.62bn.
Sabic posted adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of $900m for the three months to 30 June, a drop of 18% compared to the previous quarter.
Adjusted earnings before interest and taxes in Q2 also fell by 72% quarter-on-quarter to $110m, while adjusted earnings per share stood at $0.03.
Saudi Exchange-listed Sabic said its net debt position remained largely unchanged at $730m at the end of June, compared with $740m at the end of March.
“In the second quarter of 2026, Sabic delivered a resilient operating performance and continued to meet its strategic priorities, navigating a market shaped by geopolitical uncertainties, supply disruptions and elevated energy prices. Our focus remained on disciplined execution, operational excellence, portfolio optimisation, corporate transformation, and selective growth to create sustainable long-term value,” Faisal Mohammed Alfaqeer, Sabic’s CEO and executive board member, said.
“While the current market environment continues to be challenging, our strong balance sheet and disciplined approach to capital allocation enable us to remain resilient while continuing to create value for our shareholders,” Alfaqeer added.
Sabic announced $880m in dividends for the first half of 2026. “We continue our long-standing dividend track record even as we preserve flexibility to support our strategic priorities for long-term value creation,” the CEO said.
“At the same time, our corporate Transformation Programme continues to deliver recurring Ebitda improvements, realising $547m during the first half of 2026, maintaining our track toward our cumulative $3bn annual target by 2030,” he said.
“Despite the geopolitical circumstances during the concluded quarter, our resilient supply chain management successfully adapted to changing trade flows. The volume of polymers shuttled from the kingdom’s east to the west more than doubled.
“Through close collaboration with our partners and the utilisation of the newly launched Red Sea Express container service, we maintained reliable service for our customers.”
“Additionally, Sabic Agri-Nutrients completed its first shipment of bagged and solid bulk urea via the west coast, further strengthening its global supply network and supporting food security,” Alfaqeer said.
Portfolio optimisation
Sabic said its transactions to divest its European Petrochemicals business and its Engineering Thermoplastics business in the Americas and Europe are progressing towards completion as planned.
The company entered into those two transactions to divest its European Petrochemicals business to Aequita and its Engineering Thermoplastics business in the Americas and Europe to Mutares, for a total combined enterprise value of $950m, in January this year.
Aequita and Mutares are venture capital and private equity firms based in Munich, Germany.
The divestment transactions are part of its broader portfolio optimisation programme, Sabic had said earlier.
Additionally, in line with the programme, Sabic announced reaching an agreement on the key terms for combining its equity stakes in midstream firms Sabtank and Chemtank through a share exchange, subject to customary regulatory approvals and other closing conditions.
Sabic Terminal Services Company, or Sabtank, is a Saudi Arabia-based joint venture between Sabic and Royal Vopak, which operates storage and export terminal facilities at King Fahd Industrial Port in Jubail, as well as in Yanbu, in partnership with Netherlands-based Royal Vopak.
Jubail Chemical Storage and Services Company (Chemtank) operates a bulk liquid chemical storage terminal with a capacity of 568,000 cubic metres, also at King Fahd Industrial Port in Jubail. Sabic holds a 58% stake in Chemtank, with Vopak owning 22% and Jubail Yanbu Investment Company (JYIC) holding the remaining 20%.
“This transaction is expected to maximise operational efficiency, strengthen the terminals’ strategic positioning, and create a national petrochemicals logistics champion,” Sabic stated.
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Larsen & Toubro announces EPC agreement with PDO31 July 2026
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Client seeks fresh PMC bids for Dorra gas project31 July 2026
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