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  BP advances Egypt offshore gas plans

  1 April 2026

  London-headquartered BP is making progress on its campaign to drill five wells in Egypt’s portion of the Mediterranean, according to a statement from the North African country’s oil and gas ministry.

  The Fayoum 4 well is scheduled to start production in July, with an estimated output of around 100 million cubic feet of gas a day, according to the ministry.

  It said it expected the well to bolster domestic supply during the summer, helping meet demand from power stations and reducing Egypt’s import bill.

  BP is planning to invest about $1.5bn in exploration and field development in Egypt during the 2026/27 fiscal year.

  Karim Badawi, minister of petroleum and mineral resources, said that intensifying drilling for new wells is a top priority for the ministry, both to unlock fresh exploration opportunities and to increase output from existing fields.

  Egypt is currently a net importer of natural gas, and due to this, its economy is expected to be severely impacted by the recent spike in global gas prices as a result of the US and Israel’s war with Iran.

  ---

  MEED’s March 2026 report on Egypt includes:

  > COMMENT: Egypt’s crisis mode gives way to cautious revival
  > GOVERNMENT: Egypt adapts its foreign policy approach
  > ECONOMY & BANKING: Egypt nears return to economic stability
  > OIL & GAS: Egypt’s oil and gas sector shows bright spots
  > POWER & WATER: Egypt utility contracts hit $5bn decade peak
  > CONSTRUCTION: Coastal destinations are a boon to Egyptian construction

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

   

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  Wil Crisp
• 
  Algerian chemicals project faces delays

  1 April 2026

  

   

  The $1.1bn project to develop a linear alkyl benzene (LAB) plant in Algeria’s Skikda region is facing delays, according to industry sources.

  Under the terms of the original contract, it was expected to be completed over 44 months, with project execution starting in March 2024.

  One source said: “There have been some issues with the project and it is not currently progressing in line with the original schedule that was set out.”

  If the project had kept to the original schedule, it would have been completed in November 2027.

  The project client is Algeria’s national oil and gas company Sonatrach.

  When asked to comment on the delay, a spokesperson for Sonatrach said: “Please be informed that we do not confirm, deny or comment on rumours, speculation or any non-public information regarding project schedules, progress or commercial matters.”

  The main contract for the LAB project was awarded to Tecnimont, a subsidiary of Italy’s Maire, in March 2024.

  The contract it won uses the engineering, procurement, construction and commissioning (EPCC) contract model.

  It was originally tendered by Sonatrach with a technical bid submission deadline of 3 March 2023, which was then extended several times.

  The scope of the project entails the implementation of a new LAB plant with an annual production capacity of 100,000 tonnes, and the associated utilities, offsites and interconnections with the existing facilities.

  In December, China’s Jilin Chemical Construction (JCC) won a contract worth more than $100m to work on the project.

  Its contract is expected to be completed over 17 months after activation in March this year.

  JCC has said that its project scope includes engineering work “involving all disciplines”.

  JCC is wholly owned by China Huanqiu Contracting & Engineering and is affiliated to China National Petroleum Corporation (CNPC).

  Linear alkyl benzene

  LABs are a family of organic compounds mainly produced as intermediaries in the production of surfactants. Since the 1960s, LAB has emerged as the dominant precursor of biodegradable detergents.

  Hydrotreated kerosene is a typical feedstock for high-purity linear paraffins, which are subsequently dehydrogenated to linear olefins.

  Alternatively, ethylene can be oligomerised to produce linear alkenes. The resulting linear mono-olefins react with benzene in the presence of a catalyst to produce the LABs.

  Sonatrach has been planning to develop a large LAB project for at least a decade.

  In 2016, the energy major said it was planning a LAB project with a capacity of 100,000 tonnes a year (t/y) and that it would be developed in either Skikda or Arzew.

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  Wil Crisp
• 
  Frontrunner emerges for Safaniya field expansion tenders

  1 April 2026

  

   

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  Saudi Aramco is understood to be nearing a decision on contract awards for two key tenders that represent the next expansion phase of the Safaniya offshore oil field development.

  Italian contractor Saipem is said to have emerged as the frontrunner to win the two tenders – numbers 154 and 155 on Aramco’s Contract Release and Purchase Order System (CRPO) – according to sources.

  The combined contract value for CRPOs 154 and 155 is estimated at $600m, sources told MEED.

  Saipem has already secured the contract for CRPO 156, valued at about $500m, which forms the third package in Aramco’s latest Safaniya expansion phase.

  Aramco issued the three CRPOs to its Long-Term Agreement (LTA) pool of offshore contractors in February last year, with an initial bid submission deadline of 31 July. Aramco later extended the deadline to 28 August and then again to 31 August, with LTA contractors submitting bids on that date.

  The brief scope of engineering, procurement, construction and installation (EPCI) work on the three tenders is as follows:

  CRPO 154:

  EPCI of a water injection tie-in platform; two production deck modules (PDMs)/wellhead platforms; associated pipelines; hook-ups; and subsea valve skids

  CRPO 155:

  EPCI of four PDMs; intra-field and main trunklines to shore; and jackets

  CRPO 156:

  EPCI of a 48-inch trunkline, covering a distance of roughly 65 kilometres offshore and 12km onshore, from the Safaniya offshore oil field to the onshore processing facility; plus associated structures such as subsea hook-ups.

  The Safaniya field is the world’s largest offshore oil field, with a production capacity of nearly 1.2 million barrels a day (b/d). Discovered in 1951, the field is located in the Gulf waters, approximately 265 kilometres north of Aramco’s headquarters in Dhahran.

  Offshore contract awards galore

  Aramco spent almost $11bn on offshore EPCI contracts last year, which is more than double its capital expenditure on offshore projects in 2024, marking yet another year of robust upstream project spending in Saudi Arabia.

  In July, Aramco selected contractors for five CRPOs – numbers 150, 157, 158, 159 and 160 – worth over $3bn. These involve EPCI work and infrastructure upgrades at the Abu Safah, Berri, Manifa, Marjan and Zuluf offshore fields.

  The Saudi energy giant then picked contractors for four more CRPOs that are part of the large-scale project to expand infrastructure at the Zuluf offshore field development. The tenders are CRPOs 145, 146, 147 and 148, and their combined value is estimated to be almost $6bn.

  In late December last year, Saipem announced securing contracts for CRPOs 162 and 165. The scope of work on CRPO 162 covers the EPCI of two rigid pipelines – a 30-inch pipeline stretching 23.98km, and a 20-inch pipeline, 10.23km-long; replacement of a flexible 10-inch pipeline that spans 5.1km; along with modification work on topsides at the Berri and Abu Safah field developments. The duration of this contract is 32 months, Saipem said.

  The scope of work on CRPO 165, lasting 12 months, includes subsea interventions at the Marjan field development and the EPCI of 300 metres of onshore pipeline and associated tie-ins.

  MEED reported in early January this year that Aramco had selected US-based McDermott International for CRPO 166. The scope of work is understood to have been carved out of the major $15bn Marjan offshore field development project, as part of which Aramco issued contracts for 20 EPCI packages in 2019. McDermott won the largest share of work on the project, with an estimated $4.5bn-worth of contracts secured for two packages.

  The contract for CRPO 166 was single-sourced to McDermott without a competitive tendering process, and issued as a change order, sources told MEED.

  The contract award for CRPO 156 to Saipem was Aramco’s second offshore contract of this year.

  Healthy contract award pipeline

  Looking ahead, Aramco is evaluating bids it received from its offshore LTA contractors in July and August for at least three more tenders.

  These tenders are CRPO 161, which covers the EPCI of four gas jackets at the Arabiyah, Hasbah and Karan fields; and CRPOs 163 and 164, relating to the EPCI of key infrastructure at the Abu Safah, Berri, Karan, Marjan and Safaniya fields.

  MEED reported in January that Aramco had issued a new batch of five offshore tenders covering the EPCI of key structures at the Abu Safah, Berri, Manifa, Marjan and Zuluf fields, which are CRPOs 167, 168, 169, 170 and 171.

  Aramco issued the five CRPOs to its offshore LTA contractors in December, initially setting a bid submission deadline of 3 February, which it later extended until 31 March, and then further until 1 June.

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

  • Saipem (Italy)
  • McDermott International (US)
  • Larsen & Toubro Energy Hydrocarbon (LTEH, India) / Subsea7 (UK)
  • NMDC Energy (UAE)
  • Lamprell (UAE/Saudi Arabia)
  • China Offshore Oil Engineering Company (China)
  • Dynamic Industries (US)
  • Sapura Energy (Malaysia)
  • TechnipFMC (France) / MMHE (Malaysia)
  • Hyundai Heavy Industries (South Korea)

  Aramco renewed its LTAs last April with the following contractors, whose contracts had either lapsed or were close to expiry:

  • Saipem
  • McDermott International
  • Larsen & Toubro Energy Hydrocarbon / Subsea7
  • NMDC Energy
  • Lamprell
  • China Offshore Oil Engineering Company

  ALSO READ: Contractors submit bids for Safaniya onshore facilities project

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  Indrajit Sen
• 
  Dubai approves $272m stimulus package

  31 March 2026

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  Dubai has launched a AED1bn ($272m) economic support package for businesses operating in the emirate. Approved by Crown Prince of Dubai Sheikh Hamdan Bin Mohammed Bin Rashid Al-Maktoum, the measures roll out from 1 April 2026.

  The stimulus targets immediate liquidity through a broad deferral of government fees over the next three to six months. In the hospitality sector, hotels can now postpone 100% of sales and tourism fees for 90 days. This financial breathing room is designed to enhance cash flow and maintain the sector’s post-2025 momentum.

  Trade and logistics are also set for a boost via extended customs grace periods. Dubai Customs will move its data grace period from 30 to 90 days for compliant firms. Simultaneously, the government is streamlining residency permit processes. The goal is to lower the barrier for global talent entering the emirate’s labour market.

  Further structural reforms include the Virtual Warehouses Initiative to digitise the movement of temporary imports. The Council also approved the Dubai Empowerment Strategy to raise living standards for Emirati families. This is paired with a new Health and Safety Strategy for Workers’ Accommodations to improve conditions across the industrial and construction workforce.

  In a statement, Sheikh Hamdan emphasised that the package aims to turn global challenges into local opportunities. He added that the Executive Council remains focused on providing stability to families and businesses.

  Dubai’s economic support package is the latest to be announced in the UAE during the Iran War. Earlier in March, the Central Bank of the UAE (CBUAE) approved a comprehensive Financial Institution Resilience Package designed to reinforce the stability of the banking sector as the UAE economy deals with extraordinary market conditions resulting from the conflict.

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  Colin Foreman
• 
  Egypt approves $1.7bn capital spending in 2026-27

  31 March 2026

  Egypt’s cabinet has approved E£90bn ($1.7bn) in capital spending as part of the draft 2026-27 budget announced this week.

  Total spending under the new budget is projected to be about 13% higher than this year’s, aimed at supporting economic growth and reducing debt.

  Expenditure is estimated at E£5.1tn ($98bn), while revenue is projected at about E£4tn ($77bn), up 27.6% compared with the previous budget.

  According to remarks posted on the cabinet’s website, Finance Minister Ahmed Kouchouk said the draft budget – still subject to parliamentary approval – sets aside E£90bn for projects and other economic activities and seeks to lower the overall deficit by 2.1 percentage points to 4.9%.

  The budget will take effect on 1 July 2026 and aims to bring public debt down to around 78% by the end of the fiscal year, from nearly 78% the year before.

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  MEED’s March 2026 report on Egypt includes:

  > COMMENT: Egypt’s crisis mode gives way to cautious revival
  > GOVERNMENT: Egypt adapts its foreign policy approach
  > ECONOMY & BANKING: Egypt nears return to economic stability
  > OIL & GAS: Egypt’s oil and gas sector shows bright spots
  > POWER & WATER: Egypt utility contracts hit $5bn decade peak
  > CONSTRUCTION: Coastal destinations are a boon to Egyptian construction

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

   

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16186238/main.jpg

  Yasir Iqbal