Capacity building spurs upstream spending
27 April 2023

The Middle East and North Africa (Mena) region, where a third of the world’s crude oil and about a quarter of its natural gas is produced, is increasing its hydrocarbons production potential.
There are an estimated $113.6bn-worth of upstream oil and gas projects in the engineering, procurement and construction (EPC) execution stage in the Mena region, according to data from regional projects tracker MEED Projects.
Most of these schemes are set to be commissioned between this year and 2025, helping the region to consolidate its position as the largest producer of crude oil, natural gas and liquefied natural gas (LNG).
With the world still heavily reliant on hydrocarbons, and green energy sources falling short of meeting global energy needs, oil and gas producers in the region see more merit in investing in building upstream production potential.
Regional oil and gas industry leaders have been making the case for increasing spending on boosting hydrocarbons output capacity. Their purpose has been to draw the world’s attention to the role of fossil fuels as a bridge to achieving a clean energy transition, as well as to justify their major upstream capital expenditure (capex) programmes.
Saudi Arabia dominates
Saudi Aramco tops MEED’s ranking of state energy enterprises in the Mena region by the volume of upstream oil and gas projects under EPC execution, with nearly $41bn-worth of project value.
Aramco aims to increase its maximum oil output spare capacity to 13 million barrels a day (b/d) by 2027 from about 12 million b/d currently. It also plans to raise gas production by 50 per cent by the end of this decade.
With a large portion of its under-execution projects expected to come online by the middle of this decade, the Saudi energy giant appears to be on track to meet its strategic output goals.
The largest Saudi Aramco project under execution is the $3bn-plus Berri increment programme, which was awarded to Italian contractor Saipem in July 2019. Through the project, Aramco plans to add 250,000 b/d of Arabian light crude from the offshore oil and gas field.
The planned facilities will include a new gas oil separation plant (GOSP) on Abu Ali Island to process 500,000 b/d of Arabian light crude and additional processing facilities at the Khursaniyah gas plant to process 40,000 b/d of associated hydrocarbons condensates.
The Berri increment programme will complement Saudi Aramco’s $15bn Marjan field development programme, EPC contracts for which were also awarded in July 2019. The scheme is an integrated project for oil, associated gas, non-associated gas and cap gas from the Marjan offshore oil and gas field.
The Marjan development plan includes provision of a new offshore GOSP and 24 offshore oil, gas and water injection platforms. The contract for the main GOSP, which is worth $3bn and is the first EPC package of the project, was awarded to McDermott International. The US contractor also won offshore package four, which involves the building of offshore gas facilities and is valued at about $1.5bn.
The offshore development project aims to increase the production of the Marjan field by 300,000 b/d of Arabian medium crude oil, process 2.5 billion cubic feet a day (cf/d) of gas and produce an additional 360,000 b/d of ethane and natural gas liquids.
Looking ahead, Aramco expects capital expenditure in 2023 to be $45bn-$55bn, including external investments. This projected spending is at least 20 per cent higher than the company’s $37.6bn capex in 2022.
Qatar’s LNG expansion
With the goal of consolidating its position as the world’s largest supplier of gas, QatarEnergy continues to progress with its North Field LNG expansion programme. The project, which is estimated to be worth about $30bn, will increase Qatar’s LNG production to 126 million tonnes a year (t/y) in two phases by 2027.
The two-stage North Field Production Sustainability (NFPS) programme will run in parallel, to help maintain gas production from the offshore reserve in order to match the feedstock requirements of the LNG expansion scheme.
QatarEnergy led spending on upstream projects in 2022 for the second year in a row, accounting for more than a third of the $18.9bn EPC contract awards in the Mena region. The firm’s overall value of EPC projects under execution stands at $27.3bn, putting it in second place in MEED’s ranking of the biggest national oil companies by volume of under-execution projects.
Launched in 2017, the North Field East (NFE) project constitutes the first phase of QatarEnergy’s North Field LNG expansion project. As well as an LNG output of 32 million t/y, NFE will produce 4,000 tonnes a day (t/d) of ethane as feedstock for future petrochemicals developments, 260,000 b/d of condensates, 11,000 t/d of liquefied petroleum gas (LPG) and 20 t/d of helium.
The EPC works on QatarEnergy’s NFE project were divided into six packages – four onshore and two offshore – and are currently progressing.
QatarEnergy awarded a $13bn contract for NFE package one to a consortium of Chiyoda and TechnipEnergies in February 2021. The package covers the EPC of four LNG trains, each planned to have an output capacity of about 8 million t/y.
QatarEnergy’s largest award in 2022 was a $4.5bn EPC contract that was won by Saipem for the building and installation of two gas compression facilities as part of the second development phase of its NFPS project. The gas compression complexes covered in the package known as EPCI 2 will weigh 62,000 tonnes and 63,000 tonnes and will be the largest fixed steel jacket compression platforms ever built.
Abu Dhabi ambitions
Abu Dhabi National Oil Company (Adnoc) adopted a five-year business plan in November last year that covers a capex budget of $150bn for 2023-27. The budget also sets the target of achieving its oil production capacity goal of 5 million b/d by 2027 rather than 2030.
The oil production increment projects that it has under execution are expected to play a key role in enabling the Abu Dhabi major to attain its accelerated oil capacity target.
The largest of Adnoc’s under execution projects is a $1.4bn EPC contract awarded to Spanish contractor Tecnicas Reunidas in late 2018 for upgrading the Bu Hasa onshore oil field development. Through this project, Adnoc plans to increase the Bu Hasa field’s production from 500,000 b/d to 650,000 b/d.
On the gas production front – a core priority for Adnoc – $1.5bn-worth of EPC contracts were awarded to Abu Dhabi’s National Petroleum Construction Company (NPCC) and Tecnicas Reunidas in November 2021 for the offshore and onshore packages, respectively, of the Dalma sour gas field development project.
When completed in 2025, the project will enable the Dalma field to produce about 340 million cf/d of natural gas.
The Abu Dhabi energy giant further intends to raise its total gas output by 3 billion cf/d in the next few years. The Hail and Ghasha offshore sour gas production project will be central to achieving this goal.
In January, Adnoc signed pre-construction services agreements (PCSAs) with France-headquartered Technip Energies, South Korean contractor Samsung Engineering and Italy’s Tecnimont for the Hail and Ghasha onshore package. Saipem, NPCC and state-owned China Petroleum Engineering & Construction Company secured a PCSA for the offshore package.
While the onshore and offshore PCSAs awarded to the two consortiums by Adnoc are valued at $80m and $60m, respectively, the EPC packages are estimated to be worth $5.5bn and $5bn.
As part of the PCSAs, the contractors are required to perform initial detailed engineering and procurement for important long-lead items.
Based on proposals to be submitted later this year, Adnoc is expected to award the same contractors the contracts for the main EPC works on the Hail and Ghasha project.
Production from the Ghasha concession, where the Dalma and Hail and Ghasha fields are located, is expected to start in 2025, ramping up to more than 1.5 billion cf/d before the end of this decade.
Main image: Saudi Aramco tops the ranking of state energy enterprises in the Mena region with almost $41bn-worth of projects under execution. Credit: Aramco
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WEBINAR: End-of-Year Mena Market Review13 November 2026
Webinar: The big questions shaping the Gulf market. You decide what gets debated.
Tuesday 24 November 2026 | 11:00 AM GST | Register now
What makes this session particularly interesting is that the audience gets to decide the agenda. Registrants can vote for the topics they’d like Ed and Colin to debate, with the most popular questions forming the final shortlist for the live session.
Topics in the ballot:
- Is the Gulf trying to build too much, too quickly?
- Saudi Arabia or the UAE: where would you place your next big bet?
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The session will also feature live audience polling and Q&A, giving attendees an opportunity to share their views.
Hosted by:
Edward James, head of content and analysis at MEED
A well-known and respected thought leader in Mena affairs, Edward James has been with MEED for more than 19 years, working as a researcher, consultant and content director. Today, he heads up all content and research produced by the MEED group. His specific areas of expertise are construction, hydrocarbons, power and water, and the petrochemicals market. He is considered one of the world’s foremost experts on the Mena projects market. He is a regular guest commentator on Middle East issues for news channels such as the BBC, CNN and ABC News and is a regular speaker at events in the region.
Colin Foreman, editor of MEED
Colin Foreman is editor and a specialist construction journalist for news and analysis on MEED.com and the MEED Business Review magazine. He has been reporting on the region since 2003, specialising in the construction sector and its impact on the broader economy. He has reported exclusively on a wide range of projects across the region including Dubai Metro, the Burj Khalifa, Jeddah Airport, Doha Metro, Hamad International airport and Yas Island. Before joining MEED, Colin reported on the construction sector in Hong Kong.https://image.digitalinsightresearch.in/uploads/NewsArticle/21380319/main.gif -
Syntys breaks ground on 20MW Qatar data centre13 November 2026
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Qatari data centre developer Syntys has broken ground on a 20MW facility to support hyperscale, cloud, artificial intelligence (AI) and advanced computing deployments.
The groundbreaking ceremony took place on 12 November. It was attended by Qatar’s Communications & Information Technology Minister, Mohammed bin Ali bin Mohammed Al-Mannai, along with representatives from Ooredoo Group, Microsoft, Google, Kahramaa, the National Cyber Security Agency, Qatar Free Zones Authority and local banks.
Syntys said the facility is being developed on an existing company campus, where power, fibre connectivity and an operational team are already in place. The company has yet to disclose the project value or planned completion date.
The facility is designed to meet Tier 3 requirements and accommodate a range of rack densities, including higher-density configurations for graphics processing unit (GPU)-based AI and high-performance computing workloads.
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The company also designs and operates the facilities supporting Ooredoo’s sovereign AI cloud, which uses Nvidia Hopper GPUs.
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The data centre is expected to support the growth of in-country digital services and enable sensitive workloads to remain within Qatar’s national borders.
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Jereh wins $392m Bu Hasa oil field facilities project13 November 2026
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The onshore oil and gas business of Abu Dhabi National Oil Company (Adnoc Onshore) has awarded China’s Jereh Group a contract valued at AED1.44bn ($392.1m) for the engineering, procurement and construction (EPC) of wellhead surface facilities and flowlines at the Bu Hasa cluster of oil fields in Abu Dhabi.
The cluster includes the Bu Hasa, Bida Al-Qemzan and Huwaila fields. The objective of the project is to build wellhead surface facilities and lay gathering flowlines that will connect new wells to the existing production network.
The scope of work on the project also covers the design, fabrication and installation of:
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The framework agreement awarded by Adnoc Onshore on a call-off basis has a duration of 36 months, with an extendable option of 24 months, Jereh said in a filing with China’s Shenzhen Stock Exchange, where it is listed.
Adnoc Onshore is Adnoc Group’s largest production subsidiary, accounting for about 2 million barrels a day (b/d) of crude and about 7 billion cubic feet a day of associated gas from four primary onshore asset clusters: Bab, Bu Hasa, North East Bab and South East.
Maintaining and enhancing oil output levels at the Bu Hasa asset is critical to Adnoc Onshore’s contribution to parent company Adnoc Group’s target of expanding crude oil production capacity to 5 million b/d by 2027, an initiative known as Accelerated Integrated Programme 5. The state energy company’s total production capacity currently stands at approximately 4.85 million b/d.
Prior to this contract, Adnoc Onshore selected Jereh Oil & Gas Engineering Company in 2024 for a project to digitally connect 2,443 wells at the Bab, Bu Hasa and South East cluster of onshore oil fields in Abu Dhabi for remote operations. The contract, formally awarded in 2025, was valued at $920m.
Abu Dhabi contracts
The contract for the Bu Hasa wellhead facilities and flowlines is among a trio of projects totalling approximately $2.7bn that has been awarded by Adnoc Group in recent weeks, Jereh announced in its stock market filing.
The largest of the three contracts, valued at $1.7bn, is for the Ruwais Diyab unconventional gas development in Abu Dhabi. Awarded to Jereh on a design, build and operate model, the contract has a duration of 29 months for construction works and 60 months of operations, with up to two five-year extensions available.
Adnoc achieved final investment decision on the Ruwais Diyab unconventional gas development project on 2 November, during the Abu Dhabi International Petroleum Exhibition and Conference 2026.
The project will deliver 345 million standard cubic feet a day (scf/d) of raw gas from 2029 over a 25-year period, with the potential to reach up to 1 billion scf/d in the future.
The scope of work on the Ruwais Diyab project covers:
- wellsite facilities
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- utilities
The plant will treat the raw gas and recover the liquids produced with it. It will also treat produced water, which is the water that comes up from the wells with the gas, and recover sulphur. Finished products will be delivered to designated receiving facilities.
When the operation period ends, Jereh will either hand the facilities over to Adnoc or decommission them and restore the site, as the contract and the owner require.
The third contract covers Adnoc Onshore’s Bab and North East Bab 1 tie-in project, where the main scope of work involves tying in new oil producer wells and removing and modifying surface facilities at existing producer wells.
The project’s scope also covers supporting works for water supply wells, water injection wells, disposal wells and water-alternating-gas injection wells. Several existing wells will also be upgraded with digital systems.
Jereh said the value of its contract is $599m, with a duration of 60 months. Similar to the Bu Hasa project, this contract also uses a framework model wherein Adnoc Onshore will issue work orders in batches according to its execution plans.
MEED previously reported that Adnoc Onshore had divided the scope of work on the Bab and North East Bab 1 tie-in project into 18 EPC packages. Along with Jereh, Adnoc Onshore has picked Abu Dhabi-based Robt Stone Middle East for a portion of work on the project.
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PDO awards contract for Al-Ghubar oil field project12 November 2026

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Petroleum Development Oman (PDO) has awarded the main contract for a project to build a facility to handle additional oil production from the Al-Ghubar field in the sultanate.
The Al-Ghubar field is located in the Ghaba Salt Basin at Qarn Alam, within majority state-owned PDO’s Block 6 concession area.
The Al-Ghubar gas-oil gravity drainage (GOGD) facility will be designed as a sour (hydrogen sulphide) facility and is expected to handle a maximum oil production rate of 1,800 standard cubic metres a day (cm/d), a total water flow rate of up to 10,421 standard cm/d and gas lift of up to 256,934 standard cm/d. Production from the planned Al-Ghubar GOGD facility will be exported to PDO’s main oil line.
China-based Jereh Group has won the contract for the Al-Ghubar GOGD facility project, sources told MEED.
A project kick-off meeting between PDO and Jereh has also recently taken place, the sources said.
MEED previously reported that Jereh had emerged as the lowest bidder for the project.
The following contractors, among others, are understood to have been bidding for the Al-Ghubar GOGD facility project:
- Engineering for the Petroleum & Process Industries (Egypt) / Petrojet (Egypt)
- GS Engineering & Construction (South Korea)
- Jereh (China)
- Larsen & Toubro Energy Hydrocarbon (India)
PDO floated the tender for the Al-Ghubar GOGD facility project in March, setting an initial bid submission deadline of 4 May, MEED previously reported.
PDO later extended the deadlines for the submission of technical and commercial bids to 26 July and 7 August, respectively. Contractors submitted technical proposals by the revised deadline, according to sources.
After receiving the technical bids for the project in July, PDO granted contractors until 16 August to submit commercial bids. It eventually extended the deadline to 1 September, with contractors submitting commercial proposals by that date, as MEED reported.
The scope of work on the Al-Ghubar GOGD project covers the engineering, procurement and construction (EPC) of the following:
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- Suction scrubber
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- Off-plot scope consisting of:
- Off-plot pipeline network (bulk header, test header, gathering infrastructure/ gathering line header, instrument air header, water disposal header)
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- Tie-in connection to main oil line
- Tie-in to gas network pipeline
PDO previously intended to tender the Al-Ghubar GOGD project under its framework structure with selected EPC contractors, but ultimately tendered it separately.
PDO is the operator of Oman’s Block 6 hydrocarbons concession, 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. PDO produces approximately 680,000 barrels a day of oil and condensates from the fields.
The Omani government holds a 60% stake in PDO through Energy Development Oman. The other shareholders are UK-based Shell (34%), France’s TotalEnergies (4%) and Thailand’s state-owned PTTEP (2%).
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Laing O’Rourke joins the international exit list12 November 2026
Commentary
Colin Foreman
EditorRegister for MEED’s 14-day trial access
Laing O’Rourke’s decision to seek a buyer for its Middle East business marks the end of an era for UAE construction.
In the early 2000s, the contractor was among the leading names in the market. Its work at Dubai International airport, the Atlantis hotel on the Palm Jumeirah and the ski slope at Mall of the Emirates made it arguably the UAE’s most prominent contractor during the pre-global financial crisis construction boom.
Its activities were not limited to Dubai. A partnering agreement with Aldar for Al-Raha Beach then made it the most active contractor in Abu Dhabi almost overnight.
The global financial crisis changed its fortunes. The Aldar Laing O’Rourke joint venture ended. Unsettled by payment problems and wider stress in the industry, the company took a more cautious approach to clients and projects in the region. One executive at the time told MEED: “You might see lots of tower cranes, but none of them are doing work that we would want to do.”
The contractor’s appetite partially returned in the late 2010s, when it won Al-Wasl Plaza at the Expo 2020 site in Dubai. It also became a leading player in the growing data centre market, delivering facilities for repeat clients, including Khazna and Equinix.
Data centres have since been its focus. These are significant projects, but they lack the public profile of the airport, Atlantis and Al-Wasl Plaza. As its profile faded, the company sold its UAE joinery arm to Dubai-based Arco Turnkey Solutions in 2025.
Laing O’Rourke now looks set to follow other international contractors that have, for various reasons, left the region, including Murray & Roberts, Balfour Beatty, Multiplex, Carillion and Bam. With a record £17.2bn order book anchored by UK and Australian infrastructure, the group’s priorities clearly lie elsewhere.
Whoever buys the business will inherit strong data centre credentials. For much of the market, however, Laing O’Rourke will be remembered for the landmark projects that defined the UAE’s boom years.
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