meed-logo

line1 line2 line3
SIGN IN / REGISTER

BP to acquire 49% stake in Hyport Duqm

31 July 2024

Register for MEED's 14-day trial access 

UK-headquartered energy giant BP will acquire a 49% stake in Hyport Coordination Company (Hyport Duqm), one of Oman’s first green hydrogen development companies.

BP said in its first-half 2024 financial report that it signed an agreement on 13 June with Oman’s state-backed energy company OQ and Belgium’s Dredging, Environmental & Marine Engineering (Deme) to acquire “a 49% stake and operatorship in the Hyport green hydrogen project in Duqm, Oman”.

The stake purchase is subject to customary regulatory approvals.

It is unclear how the deal with the Deme-led consortium will affect BP’s two planned legacy hydrogen projects in Duqm and Dhohar, which were announced last year.   

Having reached the pre-front-end engineering and design (feed) stage, Hyport Duqm is at the most advanced stage of development compared with the rest of the planned multibillion-dollar integrated green hydrogen and ammonia production facility projects in Oman.

In September last year, it invited companies to bid for a contract to provide project management consultancy services for its planned green hydrogen project in Duqm.  

The scope of work includes design review and project management during the feed stage, as well as procurement technical support. 

In June last year, the consortium signed a second land reservation agreement for a green hydrogen and ammonia production plant with the Public Authority for Special Economic Zones and Free Zones (Opaz) in Duqm.

The project will include a solar and wind park with a total installed capacity of about 1.3GW, a dedicated, high-voltage green electricity transmission line, and a utility-scale electrolysis and ammonia conversion plant.

Hydrogen will be produced from desalinated water and converted into green ammonia, which will be stored and shipped from the Port of Duqm to target export markets.

This entails a green hydrogen and green ammonia production facility with a 500MW electrolysis capacity on a site of 793,000 square metres.

The project’s first phase aims to produce around 57,000 tonnes a year of green hydrogen by 2029.

The renewable energy farms will be located in the Special Economic Zone at Duqm’s (Sezad) renewable energy area, where a site of 150 square kilometres has been allocated.

Hyport signed its first land reservation agreement with Opaz in 2021 for the green hydrogen and ammonia production facility it plans to set up in Sezad.

The agreement preceded the project’s early engineering work and site data collection.

In July 2021, MEED reported that the joint venture had signed a cooperation agreement with German energy firm Uniper to provide engineering services and negotiate an exclusive offtake agreement for the green ammonia produced at the planned facility.

Related read: Awards buoy Oman’s green hydrogen strategy

https://image.digitalinsightresearch.in/uploads/NewsArticle/12251990/main.gif
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • Dubai seeks consultants to develop drainage strategy

    18 March 2026

    Dubai Municipality has issued a request for qualifications (RFQ) for a study to develop a sustainable urban drainage systems (Suds) strategy across the emirate.

    The bid submission deadline is 9 April.

    The tender, issued through the Sewerage and Recycled Water Projects Department, covers the development of a strategy and conceptual implementation plan for Suds in Dubai.

    It follows a separate RFQ issued by the municipality in March for consultancy services to study the emirate’s sewage treatment strategy.

    The Suds project, designated TF-23-D1, aims to support the emirate’s flood protection and drainage infrastructure by promoting a more sustainable approach to stormwater management.

    The scope of work includes a review of international best practices in Suds and their applicability to Dubai. It also involves undertaking a Suds opportunity study and carrying out catchment-scale modelling and financial evaluation for a pilot study area.

    Consultants will be required to develop Suds design guidelines, specifications and standard drawings. The project also includes establishing a strategy, policy, legal and regulatory framework to support a Suds implementation roadmap.

    Dubai Municipality said the initiative represents “a significant step towards a more resilient, sustainable and forward-looking stormwater management approach for Dubai.”

    The study forms part of a broader review of Dubai’s water and wastewater infrastructure. Earlier this month, the municipality issued a separate consultancy tender (P115-D1) to assess the emirate’s sewage treatment and recycled water distribution strategy. 

    The study will focus on infrastructure requirements to support future population growth. 

    This includes identifying locations for potential future facilities such as treatment plants and pumping stations.

    The bid submission deadline is 23 March.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16027434/main.jpg
    Mark Dowdall
  • Oman awards power purchase agreements

    18 March 2026

    Oman’s Nama Power & Water Procurement Company (PWP) has issued letters of award (LoA) for new power purchase agreements (PPAs) to three independent power producers (IPPs), according to regulatory filings.

    The new PPAs will extend the operating life of existing gas-fired power plants beyond the expiry of their current contracts.

    The projects have a combined capacity of about 3,500MW.

    The agreements have been awarded to Phoenix Power Company, Al-Batinah Power Company and Al-Suwadi Power Company.

    Phoenix Power Company operates the 2,000MW Sur IPP.  It is owned by a consortium of international and regional investors, including Japan’s Marubeni Corporation and Chubu Electric Power, Qatar’s Nebras Power, Qatar Electricity & Water Company and Multitech of Oman’s Bahwan Engineering Company.

    Al-Batinah Power Company and Al-Suwadi Power Company operate the 750MW Sohar 2 IPP and the 750MW Barka 3 IPP, respectively.

    According to regional projects tracker MEED Projects, Nama PWP signed the original PPA for the Barka 3 project in 2010 with a consortium led by Gaz de France (GDF) Suez under a special purpose vehicle (SPC) called Al-Suwadi Power Company.

    The shareholders comprised GDF Suez (46%), Bahwan Engineering Company (22%), Shikoku Electric Power Corporation (11%), Sojitz Corporation (11%)  and the Public Authority for Social Insurance (10%).

    In 2015, GDF Suez was rebranded as Engie following a strategic shift towards low-carbon energy and utilities.

    All three companies said the new PPAs will run for 15 years under agreed commercial terms. Acceptance of the LOAs has been requested by 18 March 2026.

    The new agreements for Sohar 2 and Barka 3 will take effect on 1 April 2028 and run until 31 March 2043. The agreement for the Sur IPP will commence on 1 April 2029 and run until 31 March 2044.

    The awards form part of Nama PWP’s 2028-29 procurement programme. The programme aims to secure firm generation capacity from existing assets whose current PPAs are due to expire during that period.

    In Oman, IPP projects are developed under a build-own-operate model. This allows plant operators to continue running assets beyond the initial PPA term, either through contract extensions or by selling power into a future electricity market.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16027001/main.jpg
    Mark Dowdall
  • DP World awards Jafza warehouse construction deal

    18 March 2026

    Dubai-based ports operator DP World has awarded a contract to build a multi-tenant warehouse development at Jebel Ali Freezone in Dubai, UAE.

    The contract was awarded to local firm Group Amana.

    The development spans 141,916 square metres (sq m) and comprises 187 units across seven blocks.

    These comprise warehouses, light industrial units, a retail shop, a mosque and other associated infrastructure.

    The new contract builds on their existing partnership to deliver the logistics park at Jeddah Islamic Port in Saudi Arabia.

    In February last year, MEED exclusively reported that Dubai’s DP World and the Saudi Ports Authority (Mawani) had awarded a SR347m ($92m) design-and-build contract to Group Amana for the project.

    The scope of the contract covers construction work on the buildings under package two of the project’s first phase.

    Earlier this week, MEED reported that DP World has kept its 2026 capital expenditure budget at nearly $3bn, focusing on two domestic assets and four overseas projects.

    The company said in a statement that the priority developments include Jebel Ali and Drydocks World in Dubai.

    Earlier this month, the group 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.

    DP World said 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 20-foot equivalent units.

    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/16026660/main.png
    Yasir Iqbal
  • Egyptian firm starts building Sal’s Riyadh logistics centre

    18 March 2026

    Egyptian contractor Rowad Modern Engineering, a subsidiary of the Elsewedy Electric Group, has begun construction on the expansion of Saudi Logistics Services Company (Sal) facilities at King Khalid International airport in Riyadh.

    The scope of work includes the rehabilitation and upgrade of existing infrastructure, as well as the construction of new supporting facilities and services.

    Sal started the tendering process for its SR4.2bn ($1bn) logistics zone in the north of Riyadh in September last year, as MEED reported.

    UAE-based Global Engineering Consultants is the project consultant.

    The logistics hub aims to meet the demand for customised warehouses located near King Khalid International airport and the Riyadh Metro.

    The project is in line with Vision 2030 and the National Transport & Logistics Strategy, which aims to support the kingdom’s logistics sector and enhance Saudi Arabia’s position as a global logistics hub.

    Sal and Sela signed an agreement to develop the project in March last year.

    This was followed by another lease agreement for the project, which will span about 1.57 million square metres. 

    According to an official statement: “The lease will extend for 30 years, which is further extendable to an additional 15 years upon agreement of both parties.”

    GlobalData expects the kingdom’s construction industry to record an annual average growth rate of 5.2% in 2025-28, supported by investments in transport, electricity, housing and tourism infrastructure projects, as well as the $850bn-plus gigaprojects programme.

    Growth will also be supported by government investments in rail, dams, industrial and road infrastructure projects. 

    The industrial sector is estimated to grow by 3.3% in 2025-28, supported by investments in the development of manufacturing, logistics, chemicals and pharmaceuticals plants.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16026154/main.gif
    Yasir Iqbal
  • Jabal Omar plans next phase of its Mecca development

    18 March 2026

    Saudi Arabian developer Jabal Omar Development Company is carrying out planning for phase seven of its Jabal Omar master development in Mecca, according to a fourth-quarter 2025 financial presentation.

    The company said phase seven will be a mixed-use scheme comprising hotels, retail and residential components, but did not disclose a breakdown of the project elements.

    Jabal Omar plans to use a development partnership model for the phase to minimise capital expenditure.

    Separately, the developer said it is targeting the delivery of 1,346 hotel keys and more than 20,000 square metres of gross leasing area in phase four by 2027.

    Rotana Jabal Omar Makkah, comprising 655 keys, is due to be fully operational in the first quarter of 2026, after 450 keys began operating in the final week of December 2025.

    The 1,141-key Sofitel is scheduled to become operational in the fourth quarter of 2026, while the 20,000 square metres of gross leasable area is expected to be ready in 2027.

    Jabal Omar estimates its 2026 capital expenditure at SR1.1bn ($293m), with spending expected to fall once the phase four hotels are completed.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16026145/main.png
    Yasir Iqbal