meed-logo

line1 line2 line3
SIGN IN / REGISTER

Chinese firm confirms Aramco offshore contract awards

2 January 2025

Register for MEED's 14-day trial access 

China Offshore Oil Engineering Company (COOEC) has announced that Saudi Aramco has awarded it a pair of offshore engineering, procurement, construction and installation (EPCI) contracts.

The statement by COOEC confirms an earlier report by MEED that the Tianjin-headquartered contractor won Aramco’s Contracts Release and Purchase Order (CRPO) numbers 149 and 152.

CRPOs 149 and 152 are estimated to be valued at $30m and $250m-$300m, respectively. The scope of work on the two contracts covers the EPCI of structures at the Abu Safah and Arabiyah-Hasbah offshore field developments in Saudi Arabia.

The brief EPCI scope of work on the two CRPOs won by COOEC and their bid submission dates are as follows:

  • CRPO 149 – 29 September: 
    Installation of one offshore jacket at the Abu Safah field development
     
  • CRPO 152 – 24 September:
    Installation of structures at the Arabiyah and Hasbah offshore fields:
    – Two jackets at the Arabiyah field
    – One simultaneous operations-capable jacket at the Hasbah field
    – One gas lift production deck module
    – A 16-inch subsea pipeline running 5 kilometres (km)
    – 13.8kV subsea cables covering 5km

CRPOs 149 and 152 were among a batch of three offshore EPCI contracts that Aramco awarded in late November. The third contract – CRPO 153 – was won by Oslo-listed Subsea7.

The scope of work on CRPO 153, for which bids were submitted by Aramco’s Long-Term Agreement (LTA) pool of offshore contractors on 29 September, involves replacing a 17km flank pipeline at the Abu Safah field, related demolition work and modification of other units.

The value of the CRPO 153 contract is estimated to be $200m-$250m.

Robust offshore spending

In January last year, the Saudi Energy Ministry directed Aramco to abandon its campaign to expand its oil production spare capacity from 12 million barrels a day (b/d) to 13 million b/d by 2027. As a direct consequence of that government decision, Aramco cancelled the tendering process for at least 15 tenders involving the EPCI of structures at offshore oil and gas fields.

Since that decision, however, Aramco has gone the other way. The Saudi energy giant spent an estimated $5bn in 2024 on offshore EPCI contracts, which included CRPOs 149, 152 and 153.

Italian contractor Saipem was the biggest beneficiary of Aramco’s robust offshore spending, winning five of the eight CRPOs awarded last year.

In early May, Aramco awarded Saipem the contract for CRPO 143, which involves replacing an oil line between the Berri and Manifa oil fields in the kingdom’s Gulf waters.

Aramco then awarded Saipem the contract for CRPO 138, which involves laying a trunkline at the Abu Safah offshore field. The contract is estimated to be worth $500m.

The Milan-listed contractor then scooped three major CRPOs in August, starting with CRPOs 132 and 139, the combined value of which is estimated to be about $1bn. In early September, Saipem began work on the two contracts, which involve the EPCI of structures to upgrade the Marjan, Zuluf and Safaniya offshore field developments.

Just days after awarding CRPOs 132 and 139 to Saipem, Aramco awarded the Italian contractor CRPO 127, a $2bn contract that involves the EPCI of topsides and jackets for wellhead platforms, a tie-in platform jacket and topside, rigid flowlines, submarine composite cables and fibre optic cables at the Marjan oil and gas field.

Offshore jobs under bidding

Meanwhile, Aramco is evaluating technical and commercial bids it has received from LTA contractors for CRPO 150, which involves installing structures at its Northern Area Oil Operations.

Separately, contractors in Aramco’s LTA pool are preparing bids for eight more CRPOs.

MEED previously reported that Aramco has allowed its LTA contractors additional time to prepare bids for four tenders that will further expand the Zuluf offshore field development in Saudi Arabia.

The four tenders are CRPOs 145, 146, 147 and 148, and their total value is estimated to be about $4bn, sources previously said.

Aramco recently issued four more CRPOs to its LTA pool of contractors: CRPOs 157, 158, 159 and 160. Bids for CRPOs 158, 159 and 160 are due by 15 January, while 15 March has been set as the bid submission deadline for CRPO 157.

Aramco’s LTA pool of offshore service providers comprises the following entities:

  • Saipem (Italy)
  • McDermott International (US)
  • Larsen & Toubro Energy Hydrocarbon (India) / Subsea7 (UK)
  • Dynamic Industries (US)
  • NMDC Energy (UAE)
  • Lamprell (UAE/Saudi Arabia)
  • Sapura Energy (Malaysia)
  • Technip Energies (France) / MMHE (Malaysia)
  • China Offshore Oil Engineering Company (China)
  • Hyundai Heavy Industries (South Korea)
https://image.digitalinsightresearch.in/uploads/NewsArticle/13211769/main0927.jpg
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • Adnoc Gas to rally UAE downstream project spending

    7 April 2026

     

    Despite the impact of recent Iranian attacks on its assets, the gas processing business of Abu Dhabi National Oil Company (Adnoc Gas) is on course to emerge as the largest spending entity in the UAE’s downstream oil and gas sector this year.

    Adnoc Group created Adnoc Gas, which began operating as a commercial entity in 2023, through the merger of its former subsidiaries Adnoc Gas Processing and Adnoc LNG. The consolidation of Adnoc’s gas processing and liquefied natural gas (LNG) operations formed one of the world’s largest gas processing entities, with a capacity of about 10 billion standard cubic feet a day (cf/d) across eight onshore and offshore sites, including Asab, Bab, Bu Hasa, Habshan and Ruwais.

    The scale of its infrastructure – particularly its 3,250-kilometre pipeline network, which is being expanded under the $3bn Estidama project – positions Adnoc Gas as a critical enabler of both domestic industrial growth and export competitiveness.

    Resilience amid geopolitical risk

    The recent drone-related disruptions highlight the growing exposure of Gulf energy infrastructure to regional conflict. However, the limited operational impact reported by Adnoc Gas suggests a high degree of system redundancy and resilience, supported by networked infrastructure and diversified processing capacity.

    This resilience is crucial as the company pushes ahead with its $20bn-$28bn capital programme for 2023-29. Continued investment despite security risks signals confidence in both project economics and the UAE’s ability to safeguard critical assets.

    Rich Gas Development

    At the core of Adnoc Gas’ expansion strategy is the Rich Gas Development (RGD) programme, which aims to increase processing capacity by 30% by 2030.

    The RGD project will enable the development of new gas reservoirs, helping to boost gas liquids exports, support UAE gas self-sufficiency and provide feedstock to the country’s growing petrochemicals sector, Adnoc Gas says.

    The first phase of the RGD project is under construction. Adnoc Gas awarded $5bn-worth of engineering, procurement and construction management (EPCm) contracts in three tranches for phase one last June – its largest-ever capital investment.

    The contracts cover the expansion of key gas processing plants to increase throughput and improve operational efficiency across four facilities: Asab, Bu Hasa, Habshan (onshore) and the Das Island liquefaction facility (offshore).

    The first tranche, valued at $2.8bn, was awarded to UK-headquartered Wood for the Habshan facility. The company said the contract value includes pass-through revenue and that it expects to recognise about $400m in EPCm revenue.

    Wood’s scope includes upgrades and debottlenecking of the Habshan and Habshan 5 gas processing complexes and pipelines, including brownfield modifications and the installation of new facilities.

    The remaining two tranches – $1.2bn for the Das Island liquefaction facility and $1.1bn for the Asab and Bu Hasa facilities – were awarded to UAE-based Petrofac and Dubai-based Kent, respectively.

    Petrofac, separately, said it will provide EPCm services and oversee procurement and construction contracts for a new inlet facility; two gas dehydration and compression trains, each with a capacity of 420 million cf/d; and associated infrastructure at Das Island. The company will also upgrade existing facilities to increase capacity for collecting and transporting raw gas.

    RGD growth phases

    Adnoc Gas’ capital expenditure commitment of $20bn for the 2023-29 period is expected to rise to about $28bn as it targets final investment decisions (FIDs) on the second and third phases of the RGD programme in the first quarter of 2026.

    These phases involve building a natural gas liquids (NGL) fractionation train at the Ruwais facility and a new gas processing train at Habshan. Adnoc Gas has selected main contractors for EPC works on both projects, although official contract awards are pending.

    Italy’s Tecnimont has been selected for the Ruwais NGL Train 5 project, which will have a capacity of 22,000 tonnes a day, or about 8 million tonnes a year.

    China-based Wison Engineering has been selected for the Habshan 7 gas processing train. The Habshan complex is one of the largest in the UAE and the wider Middle East and North Africa region, with a capacity of 6.1 billion cf/d across five trains and 14 processing units.

    With Adnoc Group advancing its P5 programme to raise oil production capacity to 5 million barrels a day by 2027, higher volumes of associated gas are set to enter the grid. The new train at Habshan, scheduled for commissioning in 2029, will help process these additional volumes.

    Bab Gas Cap development

    As part of its upstream expansion plans, Adnoc Group is working to extract gas from four underdeveloped gas cap reservoirs at the Bab onshore field: Thammama A, B, F and H. The Thammama A, B and H reservoirs are expected to produce a combined 1.45 billion cf/d, while Thammama F is projected to produce 396 million cf/d.

    Existing processing capacity at Habshan will be insufficient to handle these volumes. As a result, Adnoc Gas plans to build new facilities to process up to 1.85 billion cf/d of additional gas.

    The company is planning a new gas processing plant in the Bab area, about 170 kilometres from Abu Dhabi, along with associated pipelines and supporting infrastructure, as part of the broader Bab gas cap development project.

    Adnoc Gas has divided the EPC scope into four packages. It completed contractor prequalification in February and is expected to issue main EPC tenders in the second quarter.

    The company’s capital expenditure commitment could exceed $30bn once it reaches FID on the Bab gas cap development, which is expected later this year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16281839/main.gif
    Indrajit Sen
  • Israel ramps up gas exports to Egypt

    7 April 2026

    Israel’s gas flows to Egypt have returned to pre-war levels after restarting on 4 April, helping to ease the ongoing gas shortage in the North African country.

    Around 1.1 billion cubic feet a day is being transported by pipeline from Israel’s Leviathan and Tamar gas fields, according to a Bloomberg report.

    This is the same level that was being transported prior to Israel shutting down production from its offshore gas fields due to security concerns, and halting flows to Egypt on 28 February.

    Despite having its own gas reserves, Egypt is a net importer of natural gas and has been impacted by the surge in global prices since the US and Israel started their war with Iran.

    Last month, Egypt increased the prices of several petroleum products and natural gas for vehicles due to higher global energy prices.

    On 9 March, Egypt raised the price of natural gas for vehicles by 30% to E£13 ($0.25) a cubic metre.

    Egypt’s Petroleum & Mineral Resources Ministry said the increase was introduced due to “exceptional circumstances” resulting from geopolitical developments in the Middle East and their direct impact on global energy markets.

    It said that the regional conflict had led to a significant increase in import and domestic production costs.

    Egypt, the Middle East and North Africa region’s biggest liquefied natural gas (LNG) importer, is facing uncertainty over its LNG supplies in the coming months.

    Between March 2025 and February 2026, Egypt imported 9,440 kilotonnes of LNG, with the majority purchased under short-term agreements, mainly with third parties such as trading houses.

    Last year, it was reported that Egypt had signed deals for around 150 cargoes through to the summer of 2026.

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

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16280784/main.jpg
    Wil Crisp
  • Egypt gas sector activity surges amid regional conflict

    7 April 2026

     

    There is a surge of activity in Egypt’s gas sector as investors pour money into boosting domestic production and the country makes deals to leverage its existing liquefied natural gas (LNG) export infrastructure.

    The increase in activity has come as the disruption to shipping through the Strait of Hormuz continues to prevent the shipment of around 20% of the world’s LNG supplies to consumer nations.

    While Egypt remains a net importer of natural gas, its geographical position, significant gas reserves and existing infrastructure, including two LNG export terminals, mean it can potentially capitalise on the current supply crunch.

    Harmattan development

    On 6 April, Arcius announced the final investment decision (FID) to develop the Harmattan gas field offshore Egypt.

    Arcius is a joint venture between UK-based BP and the UAE’s Adnoc, focused on developing gas assets in Egypt and the wider Eastern Mediterranean.

    The company acquired the El-Burg offshore concession area, which includes the Harmattan field, in February.

    An engineering, procurement, installation and commissioning (EPIC) contract for the project has been awarded to Egypt’s Enppi, while Cairo-based Petrojet and Petroleum Marine Services (PMS) have been awarded work as subcontractors.

    In a statement, Naser Al-Yafei, the chief executive of Arcius, said: “The FID to develop the Harmattan field marks an important milestone in advancing one of our first projects in Egypt toward production.”

    Idku LNG

    UK-based Shell also held a meeting with Egypt’s Petroleum Minister Karim Badawi recently, with talks focusing on increasing domestic natural gas production and utilising the Idku LNG export terminal.

    The terminal has a nameplate capacity of 7.2 million tonnes a year, but is not currently operated at full capacity.

    The Idku facility is owned by a consortium of companies, with Shell and Malaysia’s Petronas holding the biggest stakes.

    Gas corridor

    On 30 March, Egypt signed a natural gas cooperation agreement with Cyprus, laying the groundwork for a regional gas corridor that will allow Nicosia to transport its gas to Egypt to use its export infrastructure.

    The signing ceremony took place on the sidelines of a conference in Cairo, where both parties agreed to cooperate on the development and exploitation of gas resources.

    The text of the agreement focused on technical and commercial aspects of the deal, establishing a basis for future negotiations.

    Under the agreed terms, Cyprus’ gas will be processed in Egypt’s liquefaction facilities before being shipped to export markets.

    The agreement built on a memorandum of understanding (MoU) signed in February last year, in which Egypt agreed to buy gas from Cyprus’ Aphrodite field.

    Block 6

    It is also expected that Italy’s Eni, which operates Cyprus’ Block 6 concession with France’s TotalEnergies, will announce FID for the development of the Kronos field in the coming weeks.

    The field has reserves of 3.1 trillion cubic feet and, under current plans, the field’s gas will be transported to Egypt via pipeline before being exported from Egypt’s Damietta LNG terminal.

    Future investment

    As a net importer of natural gas, Egypt faces short-term economic problems due to the current high-price environment, forcing the country to pay more for energy imports.

    While this is a major setback for the country and is likely to erode its foreign currency reserves over the coming months, the current global shortage of natural gas could lead to increased investment in the country’s oil and gas sector.

    This could accelerate existing project plans within the sector as well as the development of new projects.

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

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16280782/main.jpg
    Wil Crisp
  • Adnoc Gas and Borouge facilities suffer Iranian attacks

    6 April 2026

    Debris from Iranian drones intercepted by the UAE’s air defence systems has caused damage at the Habshan gas processing facility operated by Adnoc Gas in Abu Dhabi, killing one person on site, as well as at the petrochemicals complex operated by Borouge.

    In a disclosure to the Abu Dhabi Securities Exchange (ADX) on 5 April, Adnoc Gas, a subsidiary of Abu Dhabi National Oil Company (Adnoc Group), said debris resulting from a successful interception by UAE air defences in the area caused damage to a limited number of facilities within the Habshan gas complex on 3 April.

    The incident resulted in the death of an engineer working at the facility for Egyptian contractor Petrojet during evacuation. Four other contractors sustained minor injuries and were discharged from hospital after receiving treatment.

    Specialised teams were immediately dispatched to isolate the affected area and begin a comprehensive assessment of the damage to the production line, which is ongoing, Adnoc Gas said.

    “We are profoundly saddened by the loss of life and extend our deepest condolences to the family and loved ones of the deceased. Our thoughts are also with the injured colleagues, and we wish them a full and speedy recovery. The safety, security and wellbeing of our people remains our highest priority,” Fatema Al-Nuaimi, CEO of Adnoc Gas, said in the filing.

    “We remain committed to delivering shareholder value. Our balance-sheet strength and capital discipline support the resilience of the company,” she added.

    Adnoc Gas further said it is meeting domestic demand in the UAE through other facilities, with no impact on customer supply. “The company continues to actively collaborate with international customers and partners where needed,” it said in its disclosure.

    The Habshan gas processing facility has been attacked at least twice in March during Iran’s ongoing war with Israel and the US.

    Borouge incident

    Authorities in Abu Dhabi reported fire damage at Borouge’s main petrochemical facility caused by fragments from a drone interception falling on the complex on 5 April. No injuries were reported, the Abu Dhabi Media Office said.

    “Production activity in affected areas has been suspended following the incident whilst damage assessment and repairs are carried out,” the company said in a filing with ADX on 6 April.

    The company also highlighted market conditions. “A global shortage of polyolefins is driving a strong recovery in prices in March, which has continued in April,” it said.

    Borouge said it remains financially positioned to manage near-term impact. “Borouge retains significant financial resilience to navigate short-term operational disruption due to its strong cash generation and significant available liquidity.”

    Borouge pointed to strong operating performance heading into the disruption. “In the first quarter of 2026, Borouge achieved high utilisation rates and was able to sell a significant proportion of its production during the month of March via alternative routes,” the statement said.

    ALSO READ: Sultan Al-Jaber calls Strait of Hormuz blockade “economic terrorism”
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16273020/main1639.jpg
    Indrajit Sen
  • Bapco Energies reports Iranian drone attack on facility

    6 April 2026

    Bahrain’s state energy conglomerate, Bapco Energies, said a fire broke out at one of its storage facilities following a drone strike, in the latest attack by Iran on the kingdom’s energy and industrial assets amid its ongoing war with Israel and the US.

    The tank fire, which resulted from the 5 April drone attack, has been fully extinguished and the situation is under control, Bapco Energies said.

    The state enterprise said the attack caused no injuries, adding that it is assessing the damage.

    “Emergency response teams acted immediately, working closely with the Civil Defence and relevant authorities to contain the incident and safeguard the site. The safety of our employees remains a top priority,” Bapco Energies said in its statement.

    This is understood to be at least the third major Iranian attack on a Bahraini energy complex, after Bapco Energies declared force majeure across its operations last month following two missile strikes on the Sitra oil refinery on 5 and 9 March.

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

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16271286/main.jpeg
    Indrajit Sen