meed-logo

line1 line2 line3
SIGN IN / REGISTER

Kuwait suspends Petrofac from oil and gas tender participation

3 December 2025

 

Register for MEED’s 14-day trial access 

The UK-headquartered engineering company Petrofac has been temporarily banned from participation in tenders in Kuwait’s oil and gas sector, according to industry sources.

The decision was made earlier this month by Kuwait Petroleum Corporation (KPC), the country’s national oil company.

In Kuwait, when a company is temporarily banned from participating in tenders, it is described as being “Q-listed”.

The decision to suspend Petrofac from tender participation came after the company announced that it had applied to appoint administrators, a move that potentially put thousands of jobs at risk and increased uncertainty for projects worth billions of dollars in the Middle East and North Africa (Mena) region.

One source said: “KPC wants to wait and see what happens with Petrofac’s ongoing restructuring.

“Senior officials at KPC believe there is just too much uncertainty about the company’s future and, because of this, it would be unwise to award it more contracts or allow it to submit bids for new tenders.

“If Petrofac becomes more stable and demonstrates clearly that it can still reliably execute projects in the Middle East, it is highly likely that KPC will end the suspension and allow it to participate in new tenders.”

Another source said: “Kuwait has paused new tender participation for Petrofac while the restructuring is under way.

“This isn’t unusual in the market and relates to the process itself, not to performance or capability.”

Petrofac declined to comment on the suspension when it was contacted by MEED.

Ongoing restructuring

On 25 November, Petrofac released a statement saying that it was seeking to appoint administrators to its subsidiary Petrofac International Limited (PIL).

This subsidiary was previously focused on the group’s engineering and construction activities in the Mena region.

In its statement, Petrofac said that its subsidiary would “shortly make an application to the Royal Court of Jersey seeking a letter of request under section 426 of the Insolvency Act 1986”.

It added: “The purpose of this application is to ask the Royal Court of Jersey to issue a letter of request to the High Court of England and Wales and seek its assistance in appointing administrators to PIL.”

Petrofac said that PIL had no ongoing contracts in the Mena region and it intends to redeploy PIL’s 120 staff to other subsidiaries “wherever possible”.

It added: “The administration of PIL is expected to facilitate the purpose of Petrofac Limited’s administration, to help preserve the value of the wider Group and to facilitate the planned M&A solutions.”

Petrofac has said that it is continuing to push ahead with options for alternative restructuring and M&A solutions with key creditors.

https://image.digitalinsightresearch.in/uploads/NewsArticle/15180266/main.jpg
Wil Crisp

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Local contractor wins Saudi substation deal

    3 December 2025

    Saudi-based Nesma Infrastructure & Technology has signed a contract with state-owned utility Saudi Electricity Company (Sec) for the replacement of the Jubail Southeast 230/115/34.5kV substation.

    The project includes overhead transmission line (OHTL) works and is valued at more than SAR 840m ($224m). It is scheduled to be delivered within 20 months.

    The award form part of Sec's ongoing programme to upgrade ageing substations and reinforce network capacity in the Jubail industrial area.

    In September, local contractor Al-Fanar Projects was appointed to replace the Jubail South West 230/115KV substation, one of several transmssion assets in the region undergoing phased renewal.

    As MEED recently reported, Sec has plans to invest SR220bn ($58.7bn) in power projects by 2030. This includes SR135bn ($36bn) and SR85bn ($22.7bn) for transmission and distribution, respectively.

    According to the utility, its planned upgrades will cover 130 high-voltage substations, 135,000 MVA of capacity, 12,900 kilometres of overhead transmission lines and 1,100km of underground cables.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15195824/main.jpg
    Mark Dowdall
  • SEC signs $347m power works deal for Soudah Peaks

    3 December 2025

    Register for MEED’s 14-day trial access 

    Saudi Electricity Company (SEC) has announced that its transmission subsidiary, National Grid, has signed a SR1.3bn ($347m) agreement with Soudah Development to deliver the electrical infrastructure for Saudi Arabia’s Soudah Peaks project.

    Soudah Peaks is a major high-altitude tourism and real estate development in the Asir mountains, led by Soudah Development, a wholly owned Public Investment Fund (PIF) company.

    The $7.7bn project includes hotels, resorts, residential units, entertainment facilities and outdoor activity zones at elevations of up to 3,000 metres. It will be developed over three phases, with full completion scheduled for 2033.

    Under the agreement, National Grid will develop a full integrated electrical network to support the project’s phased construction.

    The scope includes a central 380/132kV transmission substation with a capacity of 500MVA and two 13.8/132kV substations. The company will also build the electrical interconnection needed to supply all stages of the development.

    The first phase of the initiative will see the development of 454 residential units, 1,010 hotel keys and retail space with a gross leasable area of 20,625 square metres by 2027.

    The overall project includes the development of six main areas: Red Rock Mountain, Tahlal gateway to Soudah Peaks, Sahab, Sabrah, Jareen and Rijal.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15194632/main.jpg
    Mark Dowdall
  • Jeddah Economic Company appoints new CEO

    3 December 2025

    Register for MEED’s 14-day trial access 

    Jeddah Economic Company (JEC), the developer of the world’s tallest tower project, has appointed Fabian Toscano as its new CEO.

    In an official statement, JEC said: “Toscano will lead the next phase of development for Jeddah Economic City and the Jeddah Tower. His focus will include accelerating development activity, strengthening global collaborations, and shaping a world-class destination aligned with the ambitions of Saudi Vision 2030.”

    Toscano has previously served as the CEO of AlUla Development Company.

    Last year, JEC signed an estimated SR8bn, 42-month contract with SBG to resume construction work on the tower. SBG then began engaging with the supply chain to work on the project. SBG awarded Beijing-headquartered Jangho Group a facade works contract that involves engineering design and technical services for the project’s structural glass and adhesive curtain walls. 

    At the time, Jeddah Tower’s superstructure was about one-third complete, with 63 floors out of a total 157. SBG was the main contractor on the project in the early and mid-2010s. Germany’s Bauer completed the tower’s piling work.

    The architect is US-based Adrian Smith & Gordon Gill, and the engineering consultant is Lebanon’s Dar Al-Handasah (Shair & Partners).

    Jeddah Tower is the centrepiece of the Jeddah Economic City development. The project’s first phase, which includes the main tower, covers an area of 1.5 million square metres.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15194477/main.gif
    Yasir Iqbal
  • Saudi Arabia approves 2026 state budget

    3 December 2025

    Saudi Arabia has approved a SR1.313tn ($349bn) state budget for fiscal year 2026, maintaining an expansionary spending stance as it pursues its Vision 2030 economic transformation agenda.

    The Ministry of Finance’s Final Budget Statement, released on 2 December, projects revenues of SR1.147tn, leaving an estimated deficit of SR165bn, equivalent to about 3.3% of GDP. The figures are broadly in line with the projections set out in October’s pre-budget statement.

    Finance Minister Mohammed Aljadaan said the 2026 budget underlines Riyadh’s commitment to sustaining economic diversification and social development while preserving fiscal sustainability over the medium term. He stressed that citizens remain the core focus of spending plans, with continued allocations for education, health and social services, alongside investments in infrastructure and quality-of-life improvements across the kingdom’s regions.

    Non-oil activities are expected to remain the main engine of growth. Initial estimates for 2025 point to a 5% expansion in non-oil GDP, supported by higher investment and consumption, while real GDP is forecast to grow by 4.6% in 2026, driven primarily by non-oil sectors.

    Public debt is projected to rise to SR1.457tn in 2025 (31.7% of GDP) and SR1.622tn in 2026 (32.7% of GDP). Aljadaan said the debt profile remains sustainable by international standards and confirmed that the government will continue to tap local and international debt markets and alternative financing channels to cover the deficit and refinance maturing obligations.

    Government reserves held at the Saudi Central Bank are expected to remain stable at around SR390bn through the end of 2026, supporting the kingdom’s capacity to absorb external shocks. The minister said ongoing structural and fiscal reforms have strengthened public finance management and enhanced the resilience of the Saudi economy amid a challenging and uncertain global environment.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15194673/main.gif
    Colin Foreman
  • Buro Happold appointed for Riyadh expo masterplan

    3 December 2025

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Expo 2030 Riyadh Company (ERC), which is tasked with delivering the Expo 2030 Riyadh venue, has signed a contract with UK-based engineering firm Buro Happold.

    Buro Happold will provide detailed design services for infrastructure works, utilities, the public realm, landscape and engineering, as well as technical support during construction.

    According to an official statement published on its website, Buro Happold said that it is coordinating with Expo 2030’s concept master planner, Lava.

    The company is also coordinating with other firms working on the project. These include: 9e Global, Barc Solutions, Christine Losecaat MBE, Design Confidence, DPA Lighting, Expo Pavilion Group, Event Planning Group, Gorgeous Group, LAND Italia, LAND Research Lab, Montana, Omrania, Plan A, REDAS, Samantha Cotterell, Schlaich Bergermann Partner, Space Agency, Think Hospitality, Thornton Tomasetti, Transsolar KlimaEngineering, Tricon and Linesight.

    The masterplan encompasses an area of 6 square kilometres, making it one of the largest sites designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport, providing direct access to various landmarks within Riyadh.

    Countries participating in Expo 2030 Riyadh will have the option to construct permanent pavilions. This initiative is expected to create opportunities for business and investment growth in the region.

    The expo is forecast to attract more than 40 million visitors.

    The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth vehicle, launched ERC in June as a wholly owned subsidiary to build and operate facilities for Expo 2030.

    In a statement, the PIF said: “During its construction phases, Expo 2030 Riyadh and its legacy are projected to contribute around $64bn to Saudi GDP and generate approximately 171,000 direct and indirect jobs. Once operational, it is expected to contribute approximately $5.6bn to GDP.”

    In November, MEED exclusively reported that contractors submitted commercial bids on 23 November for the tender to undertake the initial infrastructure works at the site.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15194456/main.jpg
    Yasir Iqbal