meed-logo

line1 line2 line3
SIGN IN / REGISTER

Adnoc awards Upper Zakum field expansion contract

12 November 2024

Register for MEED’s 14-day trial access 

Adnoc Offshore has awarded the main contract for the second phase of a project to increase the oil production potential of Abu Dhabi’s largest producing oil asset – the Upper Zakum offshore field – to 1.2 million barrels a day (b/d).

Abu Dhabi-based Target Engineering Construction Company has won the contract for engineering, procurement and construction (EPC) works on the project, which is known as UZ 1.2MMBD EPC-2.

The value of the contract awarded by the offshore business of Abu Dhabi National Oil Company (Adnoc Offshore) is understood to be about $500m, according to sources.

MEED recently reported that Adnoc Offshore was close to awarding the main contract for the UZ 1.2MMBD EPC-2 project.

Apart from Target, the other bidders for the project included Greece-based Archirodon and UK-headquartered Petrofac.

Adnoc Offshore received technical bids for the project by the 14 August deadline. Contractors submitted commercial bids for the project by the deadline of 2 October, MEED previously reported.

Located 84 kilometres offshore in Abu Dhabi, Upper Zakum is the world’s second-largest offshore oil field and fourth-largest oil field.

The Upper Zakum offshore development consists of four main artificial islands: Al-Ghallan, Umm Al-Anbar, Ettouk and Asseifiya – also known as Central Island, West Island, North Island and South Island, respectively.

The scope of work on the UZ 1.2MMBD EPC-2 project covers the EPC of the following structures on Assefiya Island:

  • Integrated gas lift compressor and its associated facilities
  • Gas dehydration unit
  • Vapour recovery system
  • Electro-chlorination package
  • Seawater winning pumps
  • Seawater filtration package
  • Instrument air compressor
  • Air dryer package
  • Nitrogen generation package
  • Chemical injection package (scale inhibitor and biocide injection)
  • Pre-assembled pipe racks
  • Modular variable frequency drives room
  • Modular technical rooms
  • Piping tie-ins connection with existing facilities
  • Electrical, instrumentation and control and telecommunications tie-ins

Adnoc Offshore has performed the front-end engineering and design (feed) work on the project in-house, it said in the expression of interest (EoI) document.

MEED previously reported that Adnoc Offshore issued the EoI document for the EPC tendering phase on 8 February, with contractors submitting responses by 26 February.

Adnoc Offshore then issued the main EPC tender for the project “in early June”, sources told MEED.

Upper Zakum expansion

The first phase of the programme to raise the Upper Zakum offshore field development’s oil production capacity to 1.2 million b/d was launched in 2019. The initial goal was to increase the field’s output potential to 1 million b/d by 2024, which was later increased to 1.2 million, with the project execution timeline eventually extended.

In April, MEED reported that Adnoc Offshore had awarded the main EPC contract for the UZ 1.2MMBD EPC-1 project to UAE-based Target Engineering Construction Company. The value of the EPC contract won by Target is estimated to be $825m.

Spanish contractor Tecnicas Reunidas won the contract for the feed works on the UZ 1.2MMBD EPC-1 project in 2019. UK-headquartered Wood Group was appointed as the project management consultant for the EPC phase.

The project’s main scope involves the EPC of several surface facilities and plants at the Upper Zakum offshore development’s four main artificial islands.

Upper Zakum oil production

Adnoc has committed to a capital expenditure budget of approximately $30bn, along with its operating partners in the Upper Zakum hydrocarbons concession, Japan Oil Development Company (Jodco) and US-based ExxonMobil. 

The strategic objective is to first raise the asset’s oil output from 640,000 b/d to 750,000 b/d through the UZ 750 project, and then eventually to 1.2 million b/d through the two phases of the ongoing UZ 1.2 MMBD project.

Zakum Development Company (Zadco), which later merged into Adnoc Offshore, awarded EPC contracts for the UZ 750 project in 2012 and early 2013.

The $817m first package was awarded to a consortium of Abu Dhabi’s NMDC Energy (then known as National Petroleum Construction Company) and France-based Technip Energies. Package two, the project’s largest EPC package, worth $3.7bn, was awarded to a consortium of UK-headquartered Petrofac and South Korea’s Daewoo Shipbuilding & Engineering.

EPC work on UZ 750 began in 2014 and was completed in 2022.

In October 2022, Adnoc Group subsidiary Adnoc Drilling set a world record for drilling the longest oil and gas well at the Upper Zakum concession, stretching 50,000 feet.

The extended-reach wells will tap into an undeveloped part of the Upper Zakum reservoir, potentially increasing the field’s production capacity by 15,000 b/d without expanding or building any new infrastructure, Adnoc said.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12899839/main.jpg
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • Bahrain opens bids for first solar IPP project

    13 March 2026

    Two companies have made offers for a contract to develop Bahrain’s first solar photovoltaic (PV) independent power project (IPP).

    Bahrain’s Electricity & Water Authority (EWA) opened bids for the Bilaj Al-Jazayer solar IPP project on 12 March.

    The bidders include Saudi Arabia’s Acwa, formerly Acwa Power, and UAE-headquartered Yellow Door Energy.

    The 150 MWac Bilaj Al-Jazayer solar IPP project will be Bahrain’s first grid-connected solar PV power plant developed under a public-private partnership (PPP) framework on a build-own-operate basis. It will be delivered as a long-term concession and is intended to come online by 2027.

    The proposed site covers more than 1 square kilometre, with the private sector responsible for end-to-end development, including financing, design, construction and operation.

    Last August, EWA held a market consultation event during which it outlined plans for the country’s first solar PV IPP. The main contract was then tendered in October.

    EWA said Yellow Door Energy’s proposal was “accepted with conditions”, but did not disclose further details.

    The local KPMG Fakhro is the financial consultant, the US’ WSP Parsons Brinckerhoff is the technical consultant, and the UK’s Trowers & Hamlins is the legal consultant.

    Bahrain’s clean energy targets, as set by its national plans, include 20% renewables by 2035, and net-zero emissions by 2060.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15968088/main.jpg
    Mark Dowdall
  • DP World sees Red Sea port volumes rising as Hormuz shuts

    13 March 2026

    Register for MEED’s 14-day trial access 

    Dubai-based ports operator DP World is preparing for higher throughput at its Red Sea terminals as the Iran conflict approaches its second week, CEO Yuvraj Narayan said on Thursday.

    With the Strait of Hormuz effectively closed and tanker attacks escalating, shipping movements into Gulf ports have fallen.

    The disruption began after US and Israeli strikes on Iran, rattling energy and freight markets and cutting access through what is widely seen as the world’s most critical oil corridor.

    Since most major Gulf ports rely on the narrow Strait of Hormuz, the shutdown is weighing on regional trade flows.

    Narayan said Jebel Ali, DP World’s main hub in Dubai, has not suffered any infrastructure damage and is operating normally, but inbound vessel arrivals are down. Some cargo is still moving through terminals on the eastern side of the strait, he added.

    Ports in the UAE that sit outside Hormuz have limited headroom to absorb the shortfall. Khorfakkan can handle about 5 million 20-foot equivalent units (TEUs) and Fujairah under 1 million TEUs, which Narayan indicated would not be enough to offset lost volume from Jebel Ali or Abu Dhabi’s Khalifa Port.

    Jebel Ali alone processed 15.6 million TEUs last year, out of DP World’s 56.1 million TEUs globally.

    DP World is rolling out rerouting options and other operational measures to keep supply chains moving. Narayan said the company’s Red Sea assets, such as Jeddah in Saudi Arabia and Sokhna in Egypt, are likely to see increased traffic, though he did not quantify the additional volumes or specify cargo types.

    He cautioned that logistical and security risks remain elevated.

    Earlier this week, DP World announced record financial results for 2025, with revenue up 22% to $24.4bn and adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) up 18% to $6.4bn, delivering a 26.3% margin, as MEED reported.

    DP World said that this performance was driven by strong momentum across its ports and terminals and logistics business.

    The group’s gross throughput rose 5.8% to 93.4 million TEUs.

    Profit for the year increased 32.2% to $1.96bn, and operating cash flow grew 14% to $6.3bn.

    Return on capital employed increased to 9.9% in 2025, up from 8.9% in 2024, reflecting stronger earnings despite ongoing geopolitical and trade uncertainty.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15968045/main.jpg
    Yasir Iqbal
  • Frontrunner emerges for Saudi sewage treatment project

    13 March 2026

     

    A consortium led by China’s Jiangsu United Water Technology has emerged as the frontrunner for a contract to build and upgrade two sewage treatment plants in Saudi Arabia, according to sources.

    The contract covers the North Western A Cluster Sewage Treatment Plants Package 11 (LTOM11), part of the next phase of National Water Company’s (NWC) long-term operations and maintenance (LTOM) sewage treatment programme.

    The consortium comprising United Water, Prosus Energy (UAE) and Armada Holding (Saudi Arabia) offered “the lowest tariff” for the project, sources told MEED.

    It is understood that Turkey’s Kuzu has made the next-lowest bid.

    The development, estimated to cost about $211m, will have a combined capacity of about 440,000 cubic metres a day (cm/d).

    In February, MEED exclusively reported that six bidders were competing for the contract.

    The other companies that have submitted proposals include:

    • Alkhorayef Water & Power Technologies (Saudi Arabia)
    • Civil Works Company (Saudi Arabia)
    • VA Tech Wabag (India)
    • Aguas de Valencia (Spain)

    LTOM11, also known as the North Western A Cluster, forms part of the second phase of NWC’s rehabilitation of sewage treatment plants programme.

    The scheme is being procured on an engineering, procurement and construction (EPC) basis with a long-term operations component.

    The main contract was tendered last year, with an award initially expected by the end of 2025.

    It is now understood that NWC is preparing to offer the main contract in the second quarter.

    As previously reported, Saudi Arabia’s NWC is also evaluating five bids for package 12 of its long-term operations and maintenance (LTOM12) sewage treatment programme.

    Known as the North Western B Cluster, LTOM12 forms part of the second phase of NWC’s rehabilitation of sewage treatment plants programme.

    In January, the same United Water-led consortium won the main contract for the Northern Cluster Sewage Treatment Plants Package 10 (LTOM10).

    That project includes the rehabilitation and operation of nine sewage treatment plants located across the Hail, Qassim, Al-Jouf and Northern Borders provinces

    NWC is also preparing to tender a contract for the construction of 10 sewage treatment plants as part of package 14 of the programme.

    The final details of the Eastern A Cluster (LTOM14) package are being finalised, with a tender likely to be issued in March or April, sources told MEED.

    READ THE MARCH 2026 MEED BUSINESS REVIEW – click here to view PDF

    Riyadh urges private sector to take greater role; Chemical players look to spend rationally; Economic uptick lends confidence to Cairo’s reforms.

    Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15968035/main.jpg
    Mark Dowdall
  • Medina tenders Sikkah Al-Hadid PPP project

    13 March 2026

    Saudi entities including Al-Madinah Regional Municipality, in collaboration with the Ministry of Municipalities & Housing and the National Centre for Privatisation & PPP (NCP), have floated a request for proposal (RFP) notice for the development of the Sikkah Al-Hadid project.

    The project will be procured through build-own-operate-transfer contracts with a 50-year duration, using a public-private partnership (PPP) model.

    The deadline for bid submission is 23 June.

    The project will be located to the west of Medina on an 84,657-square-metre (sq m) site. 

    It includes a four-storey medical centre with a capacity of up to 200 beds and a shopping mall offering retail, food and beverage, and other entertainment facilities.

    In January last year, NCP asked firms to express their interest and prequalify for a contract to develop two mixed-use developments in Medina, which included the Sikkah Al-Hadid project and the Dhul Hulaifah project.

    The Dhul Hulaifah project will be built on a 30,112 sq m site located six kilometres from the Prophet’s Mosque. 

    The development will consist of a four-star hotel integrated with retail and healthcare facilities.

    MEED previously reported that Saudi Arabia had announced a P&PPP pipeline comprising 200 projects across 16 sectors.

    This pipeline aims to attract local and international investors and ensure their readiness to participate in the schemes tendered to the market.

    The initiative comes as the kingdom strives to increase the attractiveness of its economy and raise the private sector’s contribution to GDP.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15968021/main.jpg
    Yasir Iqbal
  • Fuel storage facility attacked in Bahrain

    13 March 2026

    Register for MEED’s 14-day trial access 

    Fuel storage tanks at a facility on Bahrain’s Muharraq Island were targeted in an attack attributed to Iran, according to a statement from Bahrain’s Interior Ministry.

    The ministry put out an alert for people in surrounding neighbourhoods “to remain in their homes, close windows and ventilation openings, as a precautionary measure against possible exposure to smoke”.

    Videos of the incident, which took place on 12 March, showed a large fire emitting black smoke. The fire was later extinguished by teams of firefighters.

    Bahrain’s international airport is also located on Muharraq Island.

    Iran has been firing missiles at a range of targets in nearby countries since it was attacked by the US and Israel on 28 February.

    On 11 March, a similar attack on fuel storage tanks in Oman led to the closure of some terminals at the port of Salalah.

    Footage recorded by vessel crews at the port, which is the largest in the country, showed explosions and a large fire.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15963333/main.png
    Wil Crisp