Related Articles

• 
  Adnoc builds long-term oil and gas production potential

  7 April 2026

  

   

  Between 2023 and 2024, Abu Dhabi National Oil Company (Adnoc Group) spent an estimated $37bn on projects critical to achieving its upstream targets: increasing oil production capacity to 5 million barrels a day (b/d) by 2027 and attaining gas self-sufficiency by the end of the decade.

  The state energy company spent more than $22.5bn in 2023 alone, marking the highest annual oil and gas project spending on record in the UAE. The Hail and Ghasha sour gas development – accounting for approximately $17bn – remains the single-largest contract award in the country’s hydrocarbons sector.

  A slowdown in capital expenditure (capex) following two years of elevated spending is therefore in line with expectations. While engineering, procurement and construction (EPC) contract awards for upstream projects declined in 2025 and into this year, Adnoc has still committed close to $10bn over the past 15 months.

  The largest award during this period came from Adnoc Offshore, which let contracts worth $7.5bn for three EPC packages under the Lower Zakum Long-Term Development Plan (LTDP-1). Spain’s Tecnicas Reunidas and Abu Dhabi-based NMDC Energy and Target Engineering Construction Company were selected last February to execute the works.

  The Lower Zakum field, located 65 kilometres northwest of Abu Dhabi, is majority-owned by Adnoc Offshore (60%). Other stakeholders include an Indian consortium led by ONGC Videsh (10%), Japan’s Inpex (10%), China National Petroleum Corporation (10%), Italy’s Eni (5%) and France’s TotalEnergies (5%).

  Adnoc Offshore aims to increase production capacity at Lower Zakum to 520,000 b/d by 2027 and sustain that level through 2034.

  Offshore contracts in 2026

  So far this year, Adnoc Offshore has awarded contracts for two key projects: the Satah Al-Razboot (Sarb) deep gas development and the expansion of the Nasr oil field.

  Adnoc achieved final investment decision (FID) on the Sarb project in January and awarded the main EPC contract to US-based McDermott International. The contract is estimated to be worth around $500m, sources told MEED.

  The project is expected to deliver 200 million cubic feet a day (cf/d) of gas by the end of the decade – enough to power more than 300,000 homes.

  The scope includes the EPC of an offshore wellhead tower with four gas production wells, which will be connected to Das Island for processing through Adnoc Gas facilities. Works also include the installation of pipelines and intra-field connections linking the Sarb field to Das Island.

  Also in January, Adnoc Offshore awarded McDermott a $942m contract for the Nasr-115 project, which will increase production capacity at the Nasr offshore field to 115,000 b/d. The field is located about 130km northwest of Abu Dhabi.

  McDermott’s scope covers full EPCI services for two topside structures, a new manifold tower, a jacket, a bridge, associated pipelines, subsea cables and brownfield modifications.

  Strategic projects in queue

  Over the next 12-18 months, Adnoc’s upstream spending is expected to shift from meeting near-term production targets –now largely within reach – to building longer-term capacity beyond 2030.

  Following $1.3bn in EPC awards in 2024 for the Upper Zakum expansion to 1.2 million b/d, Adnoc Offshore is advancing the next phase, which will increase capacity to 1.5 million b/d.

  Located 84km offshore, Upper Zakum is the world’s second-largest offshore oil field. Adnoc Offshore has divided the EPC scope into three packages, with contractors submitting commercial bids for the UZ1.5MMBD project in February.

  Adnoc Offshore is also progressing the Umm Shaif gas cap and surface pressure boosting project, aimed at increasing gas production by 550 million cubic feet a day (cf/d) and condensate output by 50,000 b/d. About 520 million cf/d of additional gas is expected to be fed into Adnoc’s sales gas network.

  The first phase of the project has been split into three EPC packages:

  • Offshore package 1: fabrication of a 30,000-tonne gas compression system
  • Offshore package 2: fabrication of a 30,000-tonne gas compression system
  • Onshore package: EPC of gas inlet and processing systems at Das Island

  Adnoc Offshore is currently evaluating commercial bids submitted in February for these packages.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16285814/main.gif

  Indrajit Sen
• 
  Contractor wins Oman housing substation contract

  7 April 2026

  Oman’s Public Authority for Social Insurance has awarded a contract for the supply, installation, execution and maintenance of a main power substation for its affordable housing project.

  The contract was awarded to Kuwait-based Al-Ahleia Switchgear Company.

  The project comprises a 400/132/11kV main substation for the Affordable Housing Project, known locally as Al-Masaken Al-Muyassara.

  The tender was announced last November, with the bid envelopes opened on 16 December 2025.

  Al-Ahleia Switchgear submitted another bid in March for a contract to build three 132/11kV main transformer stations for Kuwait’s Public Authority for Housing Welfare (PAHW).

  As reported by MEED, the company’s price of KD10.5m ($34.1m) was the lowest of two offers for the engineering, procurement and construction (EPC) contract.

  Separately, in December, Al-Ahleia Switchgear submitted the lowest bid of KD33.9m ($110.3m) for a contract to build a 400/132/11 kV substation at the South Surra township for Kuwait’s PAHW.

  The bid was marginally lower than the two other offers submitted by Saudi Arabia’s National Contracting Company (NCC) and India’s Larsen & Toubro.

  ---

  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:

  > AGENDA: Gulf economies under fire > GCC CONTRACTOR RANKING: Construction guard undergoes a shift > MARKET FOCUS: Risk accelerates Saudi spending shift > LEGAL: Redefining the region’s arbitration landscape > QATAR LNG: Qatar’s new $8bn investment heats up global LNG race > INTERVIEW: Leyla Abdimomunova, National Development Division, PIF > LEADERSHIP: Shaping the future of passenger rail in the Middle East

  To see previous issues of MEED Business Review, please click here

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16285335/main5555.jpg

  Mark Dowdall
• 
  UAE reviews $1.63bn fourth federal road project

  7 April 2026

  UAE authorities on 6 April unveiled details of the AED6bn ($1.63bn) fourth federal corridor scheme, a major highway programme aimed at boosting inter-emirate connectivity, increasing road capacity and easing congestion.

  The project comprises a 68-kilometre corridor with 10 major interchanges, four flyovers and six to eight lanes in each direction.

  Officials provided technical updates on the corridor, including revised connection points and coordination with local authorities to finalise route alignments in line with broader development plans.

  Suhail Mohamed Al-Mazrouei, minister of energy and infrastructure, said the programme underscores the central role of infrastructure in the UAE’s development agenda and competitiveness. He was speaking while chairing the first meeting of the UAE Infrastructure and Housing Council this year.

  The council also reviewed progress on federal infrastructure initiatives aimed at improving transport efficiency and strengthening coordination between federal and local authorities.

  Al-Mazrouei said the next phase will focus on accelerating the delivery of high-impact projects to enhance transport system performance and support the shift towards smart and sustainable mobility in line with population growth and urban expansion.

  The council also assessed progress on linking Ajman to the third and fourth federal corridors, which is expected to provide alternative routes, improve traffic flow and further enhance mobility between the emirates.

  On public transport, the council reviewed a study on transport links between Dubai, Sharjah and Ajman to address rising commuting demand.

  The proposed plan includes 10 priority routes incorporating bus rapid transit and dedicated lanes, with connections to key hubs such as the Dubai Metro and city centres.

  ---

  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:

  > AGENDA: Gulf economies under fire > GCC CONTRACTOR RANKING: Construction guard undergoes a shift > MARKET FOCUS: Risk accelerates Saudi spending shift > LEGAL: Redefining the region’s arbitration landscape > QATAR LNG: Qatar’s new $8bn investment heats up global LNG race > INTERVIEW: Leyla Abdimomunova, National Development Division, PIF > LEADERSHIP: Shaping the future of passenger rail in the Middle East

  To see previous issues of MEED Business Review, please click here

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16285296/main.jpg

  Yasir Iqbal
• 
  Operational resilience is now the Gulf’s real energy test

  7 April 2026

  

   

  For the past few weeks, the Gulf energy story has been told mostly through the lens of damage. That is understandable. We have seen attacks on industrial sites, ports and tankers, while the Strait of Hormuz remains the key constraint on exports and recovery. Around a fifth of global oil normally passes through the strait, and the latest attacks have again underlined how exposed regional and global markets remain to disruption in that corridor.

  But the more useful question now is not simply what has been hit. It is what still works, what can be rerouted, and how fast operators can adjust.

  Impact scale

  The current estimate is that the physical impact of this conflict now likely exceeds the energy industry impairments sustained during the 1990-91 Gulf War, including both physical damage and business interruption. This is a serious shock, and it will feed through into global inflation, insurance pricing, financing costs and downstream supply chains.

  This is why the story extends beyond oil and gas. Metals, aluminium and petrochemicals are part of the same resilience test. In energy-intensive industries, even a short interruption to power or logistics can create outsized losses. Aluminium is a clear example. Once power is curtailed for too long, the restart problem becomes expensive very quickly.

  But that does not mean the Gulf’s energy system has been structurally broken. A great deal of productive capacity, logistics infrastructure and operational capability remains in place. The real question is not whether the region can function at all, but how far operators can adapt, reroute and preserve output while the disruption continues.

  The physical impact of this conflict now likely exceeds the energy industry impairments sustained during the 1990-91 Gulf War

  What gives me some confidence is that the region is not standing still. Good operators are doing what good operators tend to do under pressure. They are changing production plans, prioritising domestic demand where needed, rerouting logistics and shifting product slates. In petrochemicals, some producers can move from liquid output to solid output, which is easier to truck overland and export through alternative routes. In plain terms, they are trying to keep molecules moving.

  Others are bringing planned maintenance forward. If an asset cannot export efficiently today, using this period for a turnaround can preserve future production once routes reopen. That does not remove the loss, but it can turn part of it into a timing effect rather than a permanent one.

  Risk management

  Insurance is part of that resilience equation, too. Cover is never uniform across the market, because it reflects each operator’s risk appetite. Some businesses are well protected, while others have chosen to retain more risk. In these situations, more proactive risk management actions may be preferred, such as moving inventory, reducing throughput and process operating severity [intensity] to add resiliency to energy infrastructure in case of damage.

  Prior investment in resilience is also showing its value more broadly. That includes pipeline networks, flexible logistics, broader product portfolios, experienced operating teams and, in some cases, stronger risk transfer strategies. The businesses under the most pressure are those still heavily reliant on moving bulk liquids through constrained maritime channels and with fewer options when disruption hits. Those with more routes, products and risk flexibility are coping better.

  None of this should be mistaken for complacency. Recovery will take time. Even when conditions improve, shipping patterns will not normalise overnight. The losses are real, and the fallout will be global. But this is no longer only a damage story. It is a test of operational resilience, and so far the region is showing it has more of that than many assume.

  

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16283065/main.gif
• 
  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