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  Iraq to start procurement for $1bn rail modernisation

  2 July 2025

  

   

  Iraq’s Ministry of Transport and its General Company for Railways division will soon start procurement for a $1bn-plus modernisation programme of its north-south main rail line.

  Known as the Iraq Railways Extension & Modernisation (IREM) project, the scheme comprises the rehabilitation, upgrade and modernisation of 1,047 kilometres (km) of existing single-line track linking Umm Qasr Port in the south with Mosul in the north, running through Basra and Baghdad.

  There will be two main construction packages. The first contract, expected to be tendered in October, covers:

  • Renewal of 32km of track between Al-Yussifia and Baghdad, totalling 32km, with an estimated cost of $33m
  • Renewal of 20km of track between Baghdad and Taji, totalling 20km, with an estimated cost of $21m
  • Renewal of the line between Baiji and Mosul, totalling 189km, with an estimated cost of $197m

  The second deal involves the largest element of the programme: an estimated $570m deal to install European Train Control System (ETCS) signalling and ducts for optical fibre along the entirety of the line, including a safety level-crossing protection system for all official crossings along the alignment, and the modernisation of selected train stations.

  The package will also include the:

  • Spot rehabilitation of the 72km-long Umm Qasr-Basr line, with an estimated cost of $4m
  • Spot rehabilitation of the 520km-long section between Basra and Baghdad, with an estimated cost of $32m

  Requests for proposals for this second deal are due to be issued in January 2026.

  Before then, the client is expected to tender an estimated $15m contract for the capex management role on the scheme this month.

  Iraq’s rail sector consists of a 2,272km standard gauge network with 115 stations, most of which are in poor condition and provide only limited transport options.

  The system features two main routes: the north-south line and an east-west line running from Baghdad to near the Syrian border.

  There are also several short branch lines. Service is limited, with a few freight trains carrying oil and grain, as well as passenger services, including an overnight Baghdad–Basra train and a weekly train to Samarra.

  The southern section of the north-south line was partly restored in 2014, allowing trains to run up to 80km an hour (km/h) with a 25-tonne axle load.

  The northern segment, from Baghdad to Rabiaa and linking to Syria, operates at 40-60 km/h with an axle load limit of 18-20 tonnes. This section sees limited and irregular freight movement and contains a major workshop at Baiji that will be refurbished under the programme at an estimated cost of $10m.

  The modernised railway line is expected to carry 6.3 million tonnes of domestic freight, 1.1 million tonnes of exports and imports, and 2.85 million passengers by 2037.

  The IREM project is a central component of Iraq’s Development Road (IDR) Initiative, which aims to position Iraq as a regional transportation hub linking the GCC states with Turkey and then Europe. In the long run, the network is hoped to connect with the planned GCC railway in Kuwait.

  The launch of the project follows confirmation from the World Bank of a loan agreement worth $930m to fund almost all of the project. 

  Prior to the extension of the loan, Italy’s BTP Infrastrutture carried out the initial feasibility study and preliminary design work.

  The firm is also conducting a similar contract covering a new multibillion-dollar 1,700km high-speed railway between Al-Faw on the Gulf coast and Fishkabour on the Syrian border, along with a major highway along the same alignment.

  It has also been engaged on the design of the Al-Faw Grand Port project. 

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  Edward James
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  Indian contractor wins Ruwais LNG jetty construction

  2 July 2025

  India-based ITD Cementation India has announced winning a contract worth $67.7m for jetty construction work on Abu Dhabi National Oil Company’s (Adnoc) upcoming liquefied natural gas (LNG) processing terminal at Ruwais in Abu Dhabi.

  The job is understood to have been awarded by a consortium of France’s Technip Energies, Japan-based JGC Corporation and Abu Dhabi-owned NMDC Energy, the main contractors performing engineering, procurement and construction (EPC) works on the $5.5bn project.

  Prior to awarding this sub-contract to ITD Cementation India, the consortium of Technip Energies, JGC Corporation and NMDC Energy awarded Abu Dhabi-based Dutch Foundations a contract to perform piling works on the Ruwais LNG project.

  Also, in January, US-based midstream energy and storage services provider Chicago Bridge & Iron (CB&I) won an order from the main EPC consortium to supply two cryogenic tanks for the Ruwais LNG project. CB&I described the contract as “substantial”, a term it uses to denote values between $250m and $500m.

  Ruwais LNG terminal project

  The upcoming LNG export terminal in Ruwais will have the capacity to produce about 9.6 million tonnes a year (t/y) of LNG from two processing trains, each with a capacity of 4.8 million t/y. When the project is commissioned, Adnoc’s LNG production capacity will more than double to about 15 million t/y.

  Adnoc awarded the full EPC contract to the consortium of Technip Energies, JGC Corporation and NMDC Energy, and achieved the final investment decision for the Ruwais LNG terminal complex in June last year.

  The complex will also feature process units, storage tanks and an export jetty for loading cargoes and LNG bunkering, as well as utilities, flare handling systems and associated buildings.

  The planned LNG facility will run on electric-powered rotary equipment and compressors instead of gas-fired units. Adnoc awarded a $400m contract in October 2023 to US-based Baker Hughes for the supply of all-electric compression systems for the project. The LNG trains will run on energy-efficient Baker Hughes technology, including compressors driven by 75MW electric motors.

  Separately, Adnoc has also signed agreements with international energy companies to divest a total stake of 40% in the Ruwais LNG project.

  UK energy producer BP, Japan's Mitsui & Co, London-headquartered Shell and French energy producer TotalEnergies will each hold 10% stakes in the Ruwais LNG terminal project, with Adnoc retaining the majority 60% stake in the facility.

  Adnoc Group subsidiary Adnoc Gas will acquire its parent company’s 60% stake in the Ruwais LNG facility at cost in the second half of 2028, when first production from the complex is due.

  ALSO READ: Adnoc to supply LNG to Mitsui from Ruwais project

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  Indrajit Sen
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  Firm wins $27m Dubai Ras Al-Khor wildlife sanctuary work

  2 July 2025

  

   

  Austrian firm Waagner Biro, part of French engineering group Egis, has won a AED100m ($27m) contract for the first phase of the Ras Al-Khor wildlife sanctuary development project in Dubai.

  Dubai Municipality awarded the contract.

  The project’s first phase covers an area of over 6.4 square kilometres (sq km) and is expected to be completed by 2026.

  The scope involves rehabilitating mangrove habitats and increasing mangrove coverage from 40 hectares to 65 hectares. This includes adding new irrigation channels, rehabilitating mangrove forests, creating new habitats such as the mangrove lake, north edge lake and reed ponds, and adding a green spine.

  According to an official statement, the first phase also involves increasing the water bodies by 144%, expanding their total area to 74 hectares. Additionally, 10 hectares of mudflats will be added.

  Dubai Municipality awards contract for first phase of AED650 million Ras Al Khor Wildlife Sanctuary Development Project. The initial phase of the project is expected to be completed by the end of 2026. The project is expected to multiply the number of visitors to the sanctuary… pic.twitter.com/iVsg5Qqq0p

  — Dubai Media Office (@DXBMediaOffice) June 30, 2025

  Ras Al-Khor Wildlife Sanctuary was established in 1985 and is on the list of wetlands of international importance under the Ramsar Convention 2007, making it the first Ramsar site in the UAE. Birdlife International has also declared it an important bird area.

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  Yasir Iqbal
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  Kuwait extends deadline for Jurassic oil project

  2 July 2025

  State-owned upstream operator Kuwait Oil Company (KOC) has extended the bid deadline for its planned project to develop Jurassic Light Oil (JLO) export facilities and upgrade the existing export network.

  The main contract bid submission date for the project, which is understood to have a budget of KD175m ($569m), has been changed to 15 July 2025.

  The previous bid deadline was 24 June 2025.

  The project was originally tendered in November last year with a bid deadline of 1 December 2024.

  Other recent deadlines have included 27 May, 27 April and 6 April.

  In an announcement in April this year, the list of prequalified bidders was made up of 15 companies:

  • CTCI (Taiwan)
  • Daewoo (South Korea)
  • Fluor (US)
  • Hyundai Engineering & Construction (South Korea)
  • Hyundai Engineering Company (South Korea)
  • Hyundai Heavy Industries (South Korea)
  • JGC Corporation (Japan)
  • Larsen & Toubro (India)
  • NMDC Energy (UAE)
  • Petrofac (UK)
  • Saipem (Italy)
  • Samsung Engineering Company (South Korea)
  • Sinopec Engineering Corporation (China)
  • Sinopec Luoyang Engineering Company (China)
  • Tecnicas Reunidas (Spain)

  In September 2024, KOC made a second announcement about the project, stating that just 13 companies were prequalified.

  Both Hyundai Heavy Industries and NMDC Energy had been removed from the list.

  At the time, KOC said that companies not included on the list could file a complaint against their non-inclusion before the official invitation to bid on the project.

  It is unclear whether more prequalified companies have been added or removed from the list since September.

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  Wil Crisp
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  Oman’s PDO receives proposals for planned EPC framework

  1 July 2025

  

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  Petroleum Development Oman (PDO) has received proposals from contractors for a proposed pool of contractors to which it will tender engineering, procurement and construction (EPC) works on its greenfield and brownfield projects at its Block 6 concession in the sultanate.

  Majority state-owned PDO intends to sign framework agreements with selected contractors that will be invited to participate in the tendering process for two categories of projects, known as Wave 1 and Wave 2.

  The structure of the proposed contractors’ group will be similar to the Long-Term Agreement pool of EPC service providers that Saudi Aramco operates for its offshore and onshore projects, it was previously reported.

  Contractors submitted proposals to PDO for the proposed EPC framework agreement by the deadline of 22 June, sources told MEED.

  PDO floated a prequalification document on 17 April, detailing its requirements, criteria, planned projects and other aspects of the EPC framework agreement.

  The oil and gas producer set an initial deadline of 8 May for submission of proposals, which it then extended until 15 June, and eventually until 22 June.

  The projects earmarked by PDO for the Wave 1 and Wave 2 categories are as follows:

  Wave 1:

  Al-Ghubar GOGD project – Oil and gas

  The Al-Ghubar Gas-Oil Gravity Drainage (GOGD) project is located in Qarn Alam, in the northern area of PDO’s Block 6 concession. The scope of the project is to build a new facility. The production from this facility will be exported to the main oil line. The Al-Ghubar GOGD facility will be designed as a sour facility (hydrogen sulfide) to handle a maximum oil production of 1,800 standard cubic metres a day (cm/d), a maximum total water flow rate of 10,421 standard cm/d and a maximum gas lift of 256,934 standard cm/d.

  Raba hub development – Oil

  The Raba hub project is part of the Qarn Alam growth development located in the northern area of the PDO concession. The strategy encompasses fields in the nearest surrounding area, the Raba Infill and Raba East fields. The production from Raba Infill will be directed to the existing Raba gathering station (RGS) and the production from the Raba East field will be directed to the newly proposed Raba hub station (RHS). With the additional production from Raba Infill to RGS, some modifications to the RGS are also proposed. For better operational flexibility, interconnection between the existing RGS and the new RHS facility is also proposed, to accelerate an estimated 176 million barrels of unconventional reserves and accelerate production growth by adding an additional 50,400 barrels a day (b/d) of output by 2029.

  Rabab Harweel Integrated Project (RHIP) tranche 2 – Oil and gas

  The RHIP involves miscible gas injection across multiple fields, subdivided into two tranches. Scheduled to come on-stream starting in 2028, tranche two aims to expand oil production capacity in existing fields and enhance gas injection into these fields. The scope also includes sustaining gas supply from the gas reservoir by installing a depletion compression facility and expanding the off-plot gas supply network.

  Wave 2:

  Nimr NRPS atmospheric pressure flare recovery – Gas

  The EPC of microturbine, gas sweetening and gas compression facilities.

  Dulaima carbon dioxide-based enhanced oil recovery – Carbon capture, utilisation and storage (CCUS)

  A processing facility to handle the incremental hydrocarbons and carbon dioxide (CO2) volumes, including CO2 recycle injection.

  Wadi Umairi development – Oil and gas

  Oil and gas processing facilities, such as separators, tanks, water injection pumps, gas sweetening unit, off-plot network and utilities.

  Makarem development project – Sour gas

  A greenfield sour gas facility involving gas sweetening and sulphur recovery.

  Bout full field development project – Oil and gas

  RMSs and a gathering station, multiport selector valves, water injection manifolds, separators, hydro-cyclone package, water injection pump and utility units.

  Burhan NW depletion compressor – Gas

  Inlet separators, air coolers, depletion compression, condensate pumps, electrical infrastructure and utilities.

  Makarem full development project – Sour oil

  A gathering station, RMSs, water injection, manifold, pumps, separators and utility units.

  Therm NMT ALSE development – Sour gas

  OTSGs, cyclic steam stimulation wells, manifolds skids, CS production/steam headers, splitter, air coolers and export pumps.

  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.

  The Omani government holds a 60% stake in PDO, with the other shareholders being UK-based Shell (34%), France’s TotalEnergies (4%) and Thai state-owned PTTEP (2%).

  ALSO READ: Contractors line up for Oman LNG fourth train project

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  Indrajit Sen