meed-logo

line1 line2 line3
SIGN IN / REGISTER

BP in oil and gas talks across the Middle East

26 November 2024

Register for MEED's 14-day trial access 

UK-headquartered BP is engaged in oil and gas talks with countries across the Middle East as it looks to boost upstream production, according to the company’s chief executive, Murray Auchincloss.

Speaking at a conference in London, he said: “We’re back accessing the Middle East.”

He added: “We’re in advanced conversations in Iraq and we continue to talk to Abu Dhabi, Oman, Kuwait, Iraq – for further opportunities … let’s see how we do in those places.”

Commenting on the country’s potential return to the Kirkuk region in northern Iraq, he said: “I hope we come to an agreement with the nation fairly soon. I would like to see that by the end of February, but let’s see how that goes.

“It’s five domes, 20 billion barrels yet to produce [and] very competitive terms internationally now – and a government that is going to work with you and a much-stabilised security situation as well.”

In August, BP signed a memorandum of understanding (MoU) with the government of Iraq to develop oil fields in the Kirkuk region.

At the time, BP said that it had signed a non-binding agreement to “negotiate a material integrated redevelopment programme for the Kirkuk region”.

It said the scope of work would include oil and gas investment, power generation and solar, and “wider exploration activities”.

Plans in Iraq

The MoU signed for Kirkuk includes the Baba and Avanah domes and three adjacent fields – Bai Hassan, Jambur and Khabbaz – in Federal Iraq, which are operated by Iraq’s North Oil Company (NOC).

In its statement, BP said: “Rehabilitation of existing facilities, where required, and the construction of new facilities – including gas expansion projects – together with a drilling programme at the Kirkuk fields, has the potential to stabilise production and reverse decline, returning production from this nationally important oil field to a growth path.

“The integrated redevelopment programme has the potential to bring opportunity and investment into the Kirkuk region – unlocking future downstream growth while also bringing tangible benefits to the local population, with job creation and local supply requirements.”

In 2020, BP pulled out of Iraq’s giant Kirkuk oil field after its $100m exploration contract expired with no agreement on the field’s expansion, dealing a blow to Iraq’s hopes of increasing its oil output.

The move came as Western energy companies reassessed their operations in Iraq amid political turmoil following months of anti-government protests and a flare-up in tensions between the US and Iran in the country.

The UK-headquartered oil company’s 2013 service contract expired at the end of 2019.

Kirkuk was discovered in 1927 and marks the birthplace of Iraq’s oil industry. BP and Iraq’s Oil Ministry signed the letter of intent to study the development of the field in 2013, with a planned spending of $100m.

BP’s work included a three-dimensional seismic study of the field’s reservoir to expand on the existing 2D data.

BP already has a 50% stake in Iraq’s Rumaila oil field near the southern border with Kuwait, where it has operated for over a century.

Kuwait investments

The London-based company is also considering investing in Kuwaiti fields. In March 2016, BP signed a framework deal with state-owned Kuwait Petroleum Corporation (KPC), paving the way for joint investment and increased cooperation on oil and gas projects.

A statement released by BP at the time said both companies had agreed “to explore possible joint opportunities for investment and cooperation in future oil, gas, trading and petrochemicals ventures”.

The agreement involves collaborating on enhancing oil and gas recovery from Kuwait’s existing resource base.

It includes cooperation on studying opportunities for joint investment in future hydrocarbons exploration both inside Kuwait and globally, as well as possible future trading deals, including trading liquefied natural gas (LNG).

Cooperation on midstream and petrochemicals projects will also be covered by the deal, including potentially deploying BP’s proprietary paraxylene technology as part of KPC’s chemicals schemes.

BP was one of the founders of the original Kuwait Oil Company (KOC), which first discovered oil at Kuwait’s Burgan field in 1938.

In 1992, BP was the first oil company to be invited by the Kuwaiti government to assist in the redevelopment of Kuwait’s oil industry.

BP currently participates in the Greater Burgan field, which accounts for about 50% of Kuwait’s total output.

It participates through an enhanced technical service agreement (ETSA) with KOC, under which it provides support to sustain production, develop capabilities and deploy new technologies.

In 2018, BP signed a five-year technical services agreement with Kuwait Integrated Petroleum Industries Company (Kipic) to develop and implement an operational readiness programme for the Al-Zour refining complex and LNG terminal – some of the largest capital projects in Kuwait.

The oil refining facility reached mechanical completion in 2021. However, several factors prolonged the commissioning phase, including the Covid-19 pandemic and related measures designed to reduce the spread of the virus.

In May this year, Kuwait inaugurated the Al-Zour refinery with a ceremony to mark its completion.

The $2.9bn Al-Zour LNG facility came online in July 2021.

Expansion in Oman

In Oman, production from phase one of Block 61, Khazzan, started in 2017. In October 2020, production from phase two, Ghazeer, started ahead of schedule.

Combined, Khazzan and Ghazeer produce 1.5 billion cubic feet of gas a day and more than 60,000 barrels a day of associated condensate.

BP has been an investor in Abu Dhabi since 1939. It has partnerships in oil and LNG in Abu Dhabi and has a lubricants, aviation fuel and trading ‎businesses that is managed from Dubai.‎

In Abu Dhabi, BP’s interests include joint-venture partnerships with Abu Dhabi National Oil Company ‎‎(Adnoc) and shareholdings in Adnoc Onshore (BP’s share is 10%); Adnoc LNG (BP’s share is 10%); and the ‎National Gas Shipping Company (BP’s share is 10%).

Before becoming the CEO of BP, Auchincloss was interim CEO from September 2023 to January 2024 after the sudden resignation of Bernard Looney due to failing to reveal relationships with colleagues.

In October, it was reported that BP had abandoned a target to cut oil and gas output by 2030 as CEO Murray Auchincloss scaled back the firm’s energy transition strategy to regain investor confidence.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12999601/main0657.jpg
Wil Crisp

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

Click here to register
Exclusive from Meed
Related Articles
  • Contractors waiting for Algeria energy tender

    25 February 2026

     

    Contractors are waiting for a key tender to be issued by Algeria’s Groupement Berkine for the development of a solar power plant to help power oil and gas facilities in Algeria’s eastern desert region of Grand Erg Oriental.

    Companies submitted expression of interest (EOI) documents for the project in September last year.

    The client, Groupement Berkine, is a joint venture of Italy’s Eni and Algeria’s national oil and gas company Sonatrach.

    The contracts are expected to be tendered using the engineering, procurement and construction (EPC) model.

    The project is expected to focus on the development of two ground-mounted photovoltaic (PV) power plants.

    These will supply electricity to the central processing facilities (CPF) of the Hassi Berkine North South (HBNS) development, which comprises a cluster of oil fields, and the El-Merk development, another multi-field development.

    Both of these assets are located in the Berkine Basin.

    Currently, the CPF systems rely on electricity supplied by the Hassi Berkine power station.

    This provides all the energy for El-Merk and about half of the required electricity for the HBNS facilities.

    Sonatrach has said the PV plants are being developed to reduce greenhouse gas emissions from its oil and gas assets.

    The expected plant sizes are 35 MWp for HBNS and 20 MWp for El Merk.

    Each plant will be located within the asset perimeter and interconnected to the existing CPF at 30 kV.

    Previously, Sonatrach said it aimed to start construction in the second quarter of 2026, but there may now be delays to the project.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15762634/main.png
    Wil Crisp
  • Riyadh seeks contractors for Expo 2030 buildings

    24 February 2026

     

    Saudi Arabia’s Expo 2030 Riyadh Company (ERC), tasked with delivering the Expo 2030 Riyadh venue, has invited contractors to express their interest in a contract to deliver the first set of buildings at the site.

    The structures include several exhibition assets, an auditorium, food and beverage spaces, retail and other associated facilities.

    The buildings will be located on the main boulevard.

    Firms have been allowed until 26 February to express their interest in the contract.

    Tendering activity is gathering pace for several other packages that are part of the Expo 2030 masterplan. Earlier this month, MEED exclusively reported that ERC had tendered a contract for the construction of site offices required for the initial construction works.

    This followed the Royal Commission for Riyadh City issuing a design-and-build tender on 5 February for the construction of a new metro station serving the Expo 2030 site.

    The station will be located on Line 4 (Yellow Line) of the Riyadh Metro network.

    Construction work on the Expo 2030 Riyadh site is progressing at an accelerated pace. In January, ERC awarded an estimated SR1bn ($267m) contract to deliver the initial infrastructure works at the site.

    The contract was awarded to local firm Nesma & Partners.

    The scope of work covers about 50 kilometres of integrated infrastructure networks, including internal roads and essential utilities such as water, sewage, electrical and communication systems, and electric vehicle charging stations.

    Contractors are also bidding for infrastructure lots two and three. In December, MEED reported that ERC had floated another tender for the project’s initial infrastructure works.

    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 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.

    In a statement, Saudi sovereign wealth vehicle the Public Investment Fund 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.”

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15741954/main.jpg
    Yasir Iqbal
  • Kuwait considers cancelling $988m upstream tender

    24 February 2026

     

    State-owned Kuwait Petroleum Corporation (KPC) is discussing the potential cancellation of a contract worth nearly $1bn, according to industry sources.

    The contract is focused on developing Jurassic Light Oil (JLO) export facilities and upgrading the existing export network.

    India’s Larson & Toubro submitted a low bid of $988m for the contract in October last year.

    The two bids submitted for the contract were:

    • Larsen & Toubro (India): KD303.5m ($988m)
    • Petrofac (UK): KD310.6m ($1.01bn)

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

    The bid deadline was extended several times before bids were ultimately submitted.

    The client on the project is the state-owned upstream operator Kuwait Oil Company (KOC).

    One source said: “KOC has decided to let KPC take the decision, as it was launched as a KPC initiative project in 2019.

    “The KOC committee is waiting for KPC to schedule the meeting.”

    Another source said: “Everyone knows that this project is at risk of cancellation as the bids came in extremely high compared to the budget.

    “They came in at more than double the project’s proposed budget.”

    The latest discussions around the potential cancellation of the JLO contract come after four upstream contracts worth a total of $7.73bn were cancelled in January.

    The cancelled contracts were:

    • Separation Gathering Centre (SGC) 1 and Water Injection Plant (WIP) 1
      Low bidder: Tecnicas Reunidas (Spain) – $2.47bn
       
    • SGC 3 and WIP 3
      Low bidder: Larsen & Toubro (India) – $2.48bn
       
    • Effluent Water Disposal Plants (EWDP) 1 & 2 expansion project
      Low bidder: Larsen & Toubro (India) – $1.30bn
       
    • Installation of WIP 4
      Low bidder: Petrofac (UK) – $1.48bn

    All of the projects received low bids that exceeded their allotted budgets.

    In 2025, Kuwait recorded its highest total annual value for oil, gas and chemicals contract awards since 2017, according to data from regional project tracker MEED Projects.

    A total of 19 contract awards with a combined value of $1.9bn were awarded last year.

    This was more than four times the value of contract awards in the same sectors in 2024, when awards totalled just $436m.

    It was also above the $1.7bn peak recorded in 2021, but it remained well below the contract award values seen in 2014-17, when several large-scale, multibillion-dollar projects were awarded in the country.

    The surge in the value of contract awards in 2025 came after Kuwait’s emir indefinitely dissolved parliament and suspended some of the country’s constitutional articles in May 2024.

    Prior to the suspension of parliament, Kuwait suffered from very low levels of project awards for several years amid political gridlock and infighting between the cabinet and parliament.

    This meant that important decisions about projects could not be made, something that was seen as a major obstacle for the progression of strategic oil projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15721142/main.png
    Wil Crisp
  • Contractors express interest in Bab gas cap main plant

    23 February 2026

     

    Contractors have expressed interest to Adnoc Gas in participating in the main tendering exercise for a project involving the development of infrastructure to process incremental gas output arising from the unlocking of gas caps at the Bab onshore hydrocarbons development in Abu Dhabi.

    As part of its 2030 upstream production increase goals, Abu Dhabi National Oil Company (Adnoc Group) is working to extract gas from four underdeveloped gas cap reservoirs at the Bab onshore field development – Thammama A, Thammama B, Thammama F and Thammama H. While the Thammama A, B and H reservoirs are estimated to collectively produce 1.45 billion cubic feet a day (cf/d) of gas, output from the Thammama F gas cap is expected to be at a rate of 396 million cf/d.

    Existing trains at the Habshan processing complex in Abu Dhabi will be unable to handle the new gas volumes. Therefore, Adnoc Gas needs to build new facilities to process an additional volume of up to 1.85 billion cf/d of raw gas when its parent company starts production from the Bab gas caps.

    To this end, Adnoc Gas is planning to build a gas processing plant in the Bab area, about 170 kilometres from Abu Dhabi, along with associated pipeline networks and other ancillary units, as part of the broader Bab gas cap development project. It has divided the engineering, procurement and construction (EPC) scope of work on the project into four packages:

    • EPC package 1 – Main Bab gas cap plant
    • EPC package 2 – Early civil works
    • EPC package 3 – Pipelines
    • EPC package 4 – Non-process area works

    Abu Dhabi Securities Exchange-listed Adnoc Gas issued an expressions of interest (EoI) document to contractors for the main EPC tendering process for the main Bab gas cap plant on 10 February, setting an initial deadline of 17 February for submission of EoI responses, MEED recently reported.

    Adnoc Gas then extended the deadline for the submission of responses until 20 February, with contractors complying by that date, according to sources.

    The other three packages remain in the EoI and the main contract tendering stages, the sources said.

    Prior to issuing the EoIs for the Bab gas cap development project packages, Adnoc Gas completed an early engagement process with contractors in September and October last year, as MEED previously reported.

    In December last year, Adnoc Gas awarded the front-end engineering and design (feed) works for the Bab gas cap development project, which will increase its gas processing capacity by about 20%, to Australia-based consultancy Worley. The feed contract has a duration of more than 1.2 million man-hours, making it the largest-ever engineering job awarded by Adnoc Gas.

    Adnoc Gas currently has a capital expenditure (capex) commitment of $20bn for the 2023-29 period, which is on course to increase to about $28bn as the company strives to achieve financial investment decision (FID) on the second and third phases of its rich gas development programme in the first quarter of 2026.

    The second and third phases involve building a natural gas liquids fractionation train at the Ruwais gas processing facility and a new gas processing train at the Habshan complex, respectively, Peter Van Driel, the company’s chief financial officer, said recently on a call with journalists.

    Adnoc Gas’ capex commitment could exceed $30bn when the company is able to achieve FID on the Bab gas cap development project, which is currently expected to happen later this year, Van Driel further said.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15717536/main3120.jpg
    Indrajit Sen
  • Arada awards $408m W Residences Dubai Harbour contract

    23 February 2026

    Register for MEED’s 14-day trial access 

    Sharjah-based real estate developer Arada has awarded a AED1.5bn ($408m) contract for the main construction works on its W Residences project at Dubai Harbour.

    The contract was awarded to the local Engineering Contracting Company.

    The development comprises 490 branded residences across three towers.

    The project's enabling works, including excavation and piling, have begun and are being carried out by another local firm, APCC Piling & Marine Contracting.

     Arada has awarded APCC a separate AED51m ($14m) contract to undertake the enabling works.

    The development will consist of residential, retail and leisure facilities and will be operated by US-based Marriott International.

    Arada launched the project in October 2024, as MEED reported.

    The latest contract award follows Arada's award of two contracts, worth AED2.7bn ($735m), for construction work on all four phases of the Masaar 2 residential community in the Rowdat district of Sharjah.

    Arada awarded Sharjah-based Intermass Contracting a contract for the construction of phases one, three and four.

    Abu Dhabi-based contractor Pivot Engineering & General Contracting won a contract to build the second phase of the project.

    The overall scheme encompasses the construction of 1,997 residential units across all four phases.

    Construction is expected to begin shortly, and the project is slated for completion by 2028.

    Arada is the developer behind three masterplanned residential communities in Sharjah. The Aljada, Masaar and Nasma Residences communities are valued at a combined AED33bn.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15717440/main.jpg
    Yasir Iqbal