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  Construction launched for final major projects of Iraq’s GGIP

  Administrator

  17 September 2025

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  Officials have announced the start of construction on Iraq’s Common Seawater Supply Project (CSSP) and the full field development of the Ratawi oil field, which is also known as the Artarwi field.

  The two projects are the two last major contracts of the Gas Growth Integrated Project (GGIP).

  The GGIP is led by France’s TotalEnergies, which is the operator and has a 45% stake in the project.

  Its partners are Iraq’s state-owned Basra Oil Company, which has a 30% stake, and QatarEnergy, which has a 25% stake.

  An event in Baghdad to mark the launch of the two projects was attended by senior officials including Patrick Pouyanne, the chairman and chief executive of TotalEnergies; and Saad Sherida Al-Kaabi, who is Qatar’s Minister of State for Energy Affairs, as well as the president and chief executive of QatarEnergy.

  In a statement, TotalEnergies said: “All four parts (natural gas, solar, oil, water) of the GGIP are now in the execution phase.”

  The CSSP will be built on Iraq's coast, near the town of Um Qasr. It will process and transport 5 million barrels a day (b/d) of seawater to the main oil fields in southern Iraq.

  Treated seawater will be substituted for the freshwater currently taken from the Tigris, Euphrates and aquifers to maintain pressure in the oil wells.

  The project is expected to help alleviate water stress in the region and free up to 250,000 cubic metres of freshwater a day for irrigation and local agriculture needs, according to TotalEnergies.

  The Ratawi redevelopment was launched in September 2023. Phase one aims to increase production to 120,000 b/d of oil and is expected to come on stream by early 2026.

  The launch of phase two, the full field development, will enable production to be increased to 210,000 b/d starting in 2028, with no routine flaring, according to TotalEnergies.

  In a statement, it said that all 160,000 cubic feet a day (cf/d) of associated gas produced will be fully processed by the 300,000 cf/d Gas Midstream Project (GMP), the construction of which began in early 2025.

  The GMP, which will also treat previously flared gas from two other fields in southern Iraq, will deliver processed gas into the national grid, where it will fuel power plants with a production capacity of approximately 1.5GW, providing electricity to 1.5 million Iraqi households.

  An early production facility to process 50,000 cf/d of associated gas will start in early 2026, together with the Ratawi phase one oil production.

  Pouyanne said: “We are delighted today to award the two final contracts of the GGIP, in particular the seawater treatment plant, which has been long awaited by the oil industry in Iraq.

  “In less than two years since the GGIP effective date in August 2023, TotalEnergies and its partners have fully executed their commitment towards the people of Iraq and launched all projects included in the multi-energy GGIP project, the best showcase of TotalEnergies' transition strategy.

  “All these projects will bring a significant contribution to the Iraq economy and employ during the construction phase 7,000 Iraqi nationals.

  “Furthermore, I am proud to confirm that the first phase of the associated gas, oil and solar projects will start up as soon as early 2026.”

  Turkiye’s Enka has signed a contract to develop a central processing facility at the Ratawi oil field as part of the second phase of the field’s development.

  

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  Wil Crisp
• 
  Saudi drilling firm raises acquisition offer for Dubai rival

  Administrator

  16 September 2025

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  Saudi Arabia-based ADES International Holding has increased its offer to buy Dubai-based, Oslo-listed rival Shelf Drilling to 18.50 Norwegian Krone ($1.88) per share, representing a 6% increase in the acquisition’s enterprise value.

  The offer was revised from an earlier deal of $1.42 per share or a total of $379.33m.

  ADES International Holding, a subsidiary of ADES Holding Company, signed a transaction agreement to acquire all issued and outstanding shares of Shelf Drilling through a cash merger, with ADES International Cayman (BidCo) also participating in the proposed merger.

  According to a joint statement, irrevocable commitments have now been provided by additional shareholders, including China Merchants, Anchorage Capital Group and Magallanes Value Investors, which, combined with ADES’ 17.9% stake in Shelf Drilling, represent 53.4% of the outstanding shares in the company.

  ADES International Holding raised its offer for Shelf Drilling after reassessing the company’s current market performance and revising its estimated annual cost synergies upwards by $10m, bringing the total to $50m-$60m.

  All other terms of the merger remain unchanged, along with the transaction timetable, with closing expected to occur in the last quarter of the year.

  Shelf Drilling is incorporated under the laws of the Cayman Islands, with its corporate headquarters in Dubai.

  In April this year, ADES International Holding secured a 10-year extension for one of its standard offshore jack-up rigs from Saudi Aramco, valued at approximately $290m.

  The contract for the offshore jack-up marks the re-entry of ADES International Holding into the Saudi offshore oil and gas market. The rig was among six jack-ups whose charters were suspended by Aramco last April.

  ADES International Holding has secured deployments for three of those jack-ups in Qatar, Thailand and Egypt, while the fourth was recently redeployed to Thailand.

  ADES International Holding also said it has increased its footprint since the start of 2025 by securing an offshore drilling job off the coast of Nigeria, marking its entry into West Africa.

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  Indrajit Sen
• 
  Oman tenders Rusayl power cable project

  Administrator

  16 September 2025

  State-owned Oman Electricity Transmission Company (OETC) has opened bidding for the construction of the cable connection from the Rusayl power plant (GT-5 & GT-6) to the Rusayl industrial grid station.

  The tender is open to local companies with tender board registration and valid commercial registration, the authority said.

  Bids must be submitted electronically, with hard copies of the bid bond and other documents delivered to OETC’s head office in Muscat.

  The last date to obtain documents is 23 September, with bids due by 7 October. 

  The new cable tender forms part of OETC’s strategy to expand transmission in line with industrial growth. The Rusayl power plant, located near Muscat, is one of Oman’s key natural gas-fired generation facilities and supplies electricity to the Main Interconnected System (MIS), the country’s largest grid.

  The adjoining Rusayl Industrial City is a major manufacturing hub hosting companies across chemicals, textiles, electrical materials and food production, which has driven steady growth in power demand.

  OETC is undertaking several major transmission projects to reinforce the MIS. These include the construction of new 132kV grid stations, network reinforcements around Muscat and the Masirah Island interconnection, which is valued at about RO72m ($187m).

  Local firm Bahwan Engineering won the main contract for this project and started construction earlier this year.

  

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  Mark Dowdall
• 
  QatarEnergy awards contract for 2GW Dukhan solar plant

  Administrator

  16 September 2025

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  State-owned petroleum firm QatarEnergy has signed an agreement with South Korea’s Samsung C&T to build a 2,000MW solar power plant in Dukhan, about 80 kilometres west of Doha.

  The plant will double Qatar’s solar generation capacity, supplying up to 30% of Qatar’s total peak electricity demand once complete. It will use a solar tracker system and inverters, capable of operating in high temperatures, to maximise efficiency.

  The project will be delivered in two phases and is expected to be fully operational by mid-2029.

  The first phase of the Dukhan solar plant will deliver 1,000MW of power to the Kahramaa grid by the end of 2028. 

  The agreement was signed by Saad Sherida Al-Kaabi, minister of state for energy affairs and QatarEnergy CEO, and Sechul Oh, president and CEO of Samsung C&T.

  Senior officials from Kahramaa and executives from both companies also attended the ceremony.

  Under QatarEnergy’s Sustainability Strategy, the country plans to generate more than 4,000MW of renewable energy by 2030.

  Qatar’s first utility-scale solar photovoltaic (PV) facility, the 800MW Al-Kharsaah solar independent power producer project, has been operational since 2022.

  In August 2022, Samsung C&T won contracts for two other solar PV plants with a total combined capacity of 875MW.

  One of the solar plants, which has a capacity of 458MW, is located in Ras Laffan. The other plant is located in Mesaieed and will have a capacity of 417MW.

  Construction work on both projects was completed earlier this year.

  

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  Mark Dowdall
• 
  Saudi firm awards $121m of housing construction contracts

  Administrator

  16 September 2025

  Saudi Arabian real estate developer Al-Majdiah has awarded construction contracts worth SR454m ($121m) for housing projects in Riyadh and Jeddah.

  The contracts were awarded to the local firm Tatweej Contracting.

  The two projects are part of Al-Majdiah’s portfolio in collaboration with the state-backed National Housing Company (NHC).

  In an official statement published on the Saudi stock exchange Tadawul, Al-Majdiah said the contract value for the Adeem Al-Fursan project in Riyadh is SR298m ($80m).

  The project comprises the construction of 540 villas and townhouses.

  The Al-Fursan development in northeast Riyadh spans over 35 million square metres (sq m) and includes over 50,000 residential units.

  The contract value for the Khayala 1 project in Jeddah is SR155m ($41m). The project includes the construction of 528 residential units.

  The Khayala development is located in north Jeddah and spans nearly 1.6 million sq m. It includes 3,680 residential units.

  The contracts have a scheduled completion period of 36 months.

  UK-based analytics firm GlobalData expects the construction industry in Saudi Arabia to grow by 4% in real terms in 2025, before recording an annual average growth of 5.4% from 2026 to 2029.

  The industry’s output in 2025 will be supported by allocations as part of the kingdom’s 2025 budget, which includes a total expenditure of SR1.3tn ($342.7bn) for 2025.

  The industry’s output over the remainder of the forecast period will be supported by investments in transport, electricity, housing and water infrastructure projects.

  The residential construction sector is expected to grow by 3.8% in real terms in 2025 before recording an annual average growth rate of 6.4% over the remainder of the forecast period, supported by public and private sector investments in the residential sector to address the national housing deficit.

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  Yasir Iqbal
• 
  Oman LNG shortlists bidders for fourth liquefaction train

  Administrator

  16 September 2025

  

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  Oman LNG has shortlisted contractors to bid for engineering, procurement and construction (EPC) works for a new processing train at its Qalhat liquefied natural gas (LNG) production complex in Sur.

  The LNG train will be the fourth at the Qalhat complex, located in the sultanate’s South Al-Sharqiyah governorate, Oman LNG announced last July. The new train will have an output capacity of 3.8 million tonnes a year (t/y) and is expected to be commissioned in 2029, raising Oman LNG’s total production capacity to 15.2 million t/y.

  According to sources, Oman LNG has issued the main EPC tender for the fourth LNG train project and invited the following contractors to submit bids:

  • Chiyoda (Japan) / Samsung C&T (South Korea)
  • JGC Corporation (Japan)
  • Saipem (Italy) / Daewoo Engineering & Construction (South Korea)

  MEED previously reported that Oman LNG hosted site visits in June for prequalified contractors, according to sources.

  Oman LNG has performed the preliminary engineering study for the planned fourth LNG train. It awarded US-headquartered KBR a contract to execute front-end engineering and design (feed) works on the project in November.

  Separately, in June, Oman LNG awarded Japan-based Kanadevia Corporation a contract to perform pre-feed work for a pilot methanation plant, and a detailed concept study for future commercial scaling of the facility.

  The proposed facility is expected to produce 18,000 normal cubic metres of e-methane an hour.

  The pilot plant will comprise three components: a seawater desalination unit, equipment for producing hydrogen via water electrolysis and a methanation system that combines hydrogen with captured carbon dioxide to produce e-methane.

  The agreement follows a memorandum of understanding that Oman and Japan signed in March 2024, covering collaboration in hydrogen, fuel ammonia and carbon recycling. 

  Oman LNG operations

  Oman LNG is a joint venture of the sultanate’s Ministry of Energy & Minerals, which holds the majority 51% stake, and foreign stakeholders.

  The remaining 49% is held by UK-based Shell (30%); France’s TotalEnergies (5.54%); South Korea’s Korea LNG (5%); Japan’s Mitsubishi Corporation (2.77%); Japan’s Mitsui & Company (2.77%); Thailand’s PTTEP, following the acquisition of Portuguese firm Partex (2%); and Japan’s Itochu Corporation (0.92%).

  Oman LNG presently operates three trains at its site in Qalhat, with a nameplate capacity of 10.4 million t/y. Following debottlenecking, total production capacity increased to approximately 11.4 million t/y.

  Oman LNG secured $2bn-worth of project financing in 1997 to set up its first LNG export terminal in the sultanate, the Qalhat LNG terminal, which was commissioned in 2000.

  On 1 September 2013, Qalhat LNG was integrated with Oman LNG to form a single entity.

  The terminal exports gas produced by state oil and gas producer Petroleum Development Oman from its central Oman gas field complex. Oman LNG’s customers are mainly based in Asia, although the company has been expanding its client base outside the continent in recent months.

  In April, Oman LNG announced the start of turnaround activities at the third LNG processing train, which has an output capacity of 3.3 million t/y. The third train commenced operations in 2006 and primarily processes gas produced at the Saih Nihayda field in central Oman.

  ALSO READ: TotalEnergies studies expansion of Marsa LNG project in Oman

  

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  Indrajit Sen
• 
  Transmission projects drive Saudi water sector growth

  Administrator

  16 September 2025

  

   

  Saudi Arabia’s water sector is on track for a strong year, driven by a surge in pipeline activity. 

  The market continues to be dominated by transmission projects, reflecting the kingdom’s focus on expanding networks to deliver water from supply facilities to cities and industrial hubs. 

  So far in 2025, $8.3bn of water contracts have been awarded, with pipelines accounting for $5.1bn, or more than 60% of total awards.

  Recent activity indicates that pipeline growth goes beyond awarded contracts, with major tenders pointing to more work ahead.

  Pipeline activity

  In September, Water Transmission Company (WTCO) opened bidding for the construction of two major water pipelines that will deliver over 1.38 million cubic metres a day (cm/d) of water across central and western Saudi Arabia. 

  The Jubail-Buraidah project, scheduled to begin construction in 2027, comprises approximately 348 kilometres of pipeline with a transmission capacity of 840,650 cm/d.

  The Ras Mohaisen-Baha-Mecca independent water transmission system project, which aims to supply the cities of Mecca and Al-Baha with desalinated water, has a maximum design flow rate of 542,000 cm/d. It requires a pipeline approximately 325km long, including four pumping stations. Both projects are being developed under the public-private partnership (PPP) model.

  Saudi Arabia also has even larger independent water transmission pipeline (IWTP) initiatives under way. 

  One such project, valued at $2.3bn, also linking Jubail and Buraidah, spans 587km and will carry 650,000 cm/d. In June, the local Mutlaq Al-Ghowairi Contracting Company secured the engineering, procurement and construction contract for this project.

  Pipeline activity is set to dominate in the short to medium term, with $6.9bn of projects under bid evaluation related to transmission networks, more than 60% of all bids. 

  This includes the Alshuqaiq to Jizan water transmission system: phase 4, for which an award is expected to be made by the end of the year, having first been tendered in 2023. 

  The project, valued at $3bn and procured by WTCO, will require a water pipeline of 523km in length with a capacity of 600,000 cm/d.

  Broader sector

  While pipelines clearly dominate, the wider water sector in 2025 is showing robust performance. Total awarded contracts in the sector stand at $8.3bn to date, highlighting sustained investment. 

  For context, total contracts awarded were $15.5bn in 2023 and $15.5bn in 2024, placing this year on track for another significant period of sector activity.

  Other segments continue to attract notable investment, with desalination projects contributing $2.4bn and water treatment plants accounting for $428m of awards so far.

  In June, construction work began on the second phase of the Shuaibah seawater reverse osmosis (SWRO) desalination plant, following the appointment of Al-Fatah Water & Power as the main contractor.

  Located on the Red Sea coast south of Jeddah, the $521m project involves the construction of a SWRO desalination plant, with a capacity of 545,000 cm/d, over an area of 25 hectares.

  In September, a consortium of Saudi utilities provider Marafiq, the regional business of France’s Veolia and Bahrain/Saudi Arabia-based Lamar Holding won a $500m (SR1.875bn) contract to develop an industrial wastewater treatment plant in Jubail Industrial City 2, located in Saudi Arabia’s Eastern Province.

  The project follows a concession-style model, similar to a PPP, where the developer consortium invests in building and operating the wastewater plant over a 30-year period. Construction is expected to begin by the end of the year.

  Key players

  Driving the market forward are a handful of key players, including Water Transmission & Technologies Company (WTTCO), which has awarded five contract awards worth $1.7bn in 2025.

  Saudi Water Partnership Company (SWPC) is also active at the top end, with three contracts valued at $2.75bn, often implemented under PPP models. 

  Saudi gigaproject developer Diriyah Company awarded one contract this year: a $1.1bn deal for a utilities relocation package for the King Saud University project located in the second phase of the Diriyah Gate development (DG2).

  The contract was awarded to the joint venture of Beijing-headquartered China Railway Construction Corporation and China Railway Construction Group Central Plain Construction Company.

  The deal involves the construction of several water infrastructure projects, including a district cooling plant, water storage facilities, a sewage treatment plant and irrigation water storage tanks.

  Saudi Water Authority, meanwhile, accounts for 20 awarded projects worth $1.46bn, reflecting its focus on more localised or smaller-scale works, as is the case with several other entities.

  The split of a few large, high-value megaprojects versus a larger number of smaller, lower-value contracts suggests opportunities for both top-tier players delivering megaprojects and mid-tier contractors participating in more localised or bundled works.

  Looking ahead, $26.9bn of water projects are currently out for tender, suggesting significant activity in the years ahead, with water pipeline work ($11.9bn) continuing to lead the way.

  ---

  MEED’s October 2025 special report on Saudi Arabia also includes:

  > ECONOMY: Riyadh looks to adjust investment approach
  > BANKING: New funding sources solve Saudi liquidity challenge
  > OIL & GAS: Aramco turns attention to strategic projects
  > GAS: Saudi Arabia and Kuwait accelerate Dorra gas field development
  > POWER: Saudi Arabia accelerates power transformation
  > CONSTRUCTION: Saudi construction pivots from gigaprojects to events
  > TRANSPORT: Infrastructure takes centre stage in Saudi strategy

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  Mark Dowdall
• 
  Riyadh announces bidders for defence ministry office

  Administrator

  16 September 2025

  Saudi Arabia’s Ministry of Defence (MoD), in collaboration with the National Centre for Privatisation & PPP (NCP), has shortlisted firms that can bid for a tender to develop the Administrative Office for MoD personnel in Riyadh.

  The project will be implemented under a design, build, finance and maintain contract, with a duration of 27.5 years.

  The administrative complex, to be located in northern Riyadh, will span an area of about 52,793 square metres. 

  It will accommodate 4,500 employees and provide 3,200 parking spaces.

  The qualified firms include:

  • Tamasuk / Alghanim International (local/Kuwait)
  • Mota-Engil / Tatweer Buildings Company / Alternative Resources Investments (Portugal/local/UAE)
  • Albawani / Areic (local/local)
  • Bonyan Real Estate Investment / Artar (local/local)
  • FCC / IHCC (Spain/local)
  • Vision Invest (local)
  • Own Real Estate (local)
  • Alfanar (local)
  • Lamar Holding (local)
  • Alyamama (local)
  • El-Seif Engineering Contracting (local)
  • Al-Kifah Holding Company (local)
  • Alargan (Kuwait) 
  • Asyad (Oman)

  The clients received the statements of qualifications on 3 June.

  According to a statement, “the selected private sector partner will be responsible for the design, construction and long-term maintenance of the facilities and supporting infrastructure, as well as coordination with stakeholders and obtaining all necessary permits.”

  Saudi PPP market

  The value of public-private partnership (PPP) projects in Saudi Arabia has risen sharply over the past two years as the government seeks to develop projects through the private sector and diversify funding sources.

  According to MEED Projects data, in 2023, the value of PPP concession contracts hit an all-time high of $28.2bn, equivalent to more than 23% of the total value of all project contracts awarded that year. Although that figure fell to 18.3% last year, it was still far higher than the historical average in the kingdom.

  

  The figures are even starker when taking only government spending into account. In 2023, the value of signed PPP contracts totalled more than a third of the value of government or government-related projects awarded in 2023, and more than a quarter last year. This is compared to the average of 15.6% between 2019 and 2022, and just 3.5% recorded in 2018. 

  Government contracts include awards made by ministries, municipalities and royal commissions, in addition to state-funded key project clients such as the Saudi Water Authority, National Housing Company and Jeddah Airports Company. Public Investment Fund (PIF) subsidiaries such as Neom, the National Water Company and Rua Al-Madinah are also included.

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  Yasir Iqbal