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  PDO floats tender for major flare gas monetisation scheme

  6 August 2026

  

   

  Petroleum Development Oman (PDO) has launched a major scheme to monetise gas flared across two of its largest hydrocarbon-producing zones in the sultanate. The initiative aligns with PDO’s commitment to achieve zero routine flaring and net-zero methane emissions by 2030, on the way to attaining full carbon neutrality by 2050.

  The scheme involves the monetisation of flare gas and gas associated with oil production in the Qarn Alam cluster and the Fahud field, both of which fall under PDO’s northern portfolio within its main hydrocarbon concession area, Block 6.

  The scope of the flare gas and associated gas monetisation scheme has been divided into two parts. Bundle A involves the offtake of associated gas from the Wadi Umayri oil field development, located in the Qarn Alam cluster. Bundle B relates to the monetisation of flare gas and natural gas liquids (NGLs) from the Fahud North Oman Crude Stabilisation (FNOCS) facility, located at the Fahud field.

  PDO issued the request for proposal document for the flare gas monetisation scheme on 21 July, inviting local and international developers to submit technical and commercial proposals by 25 August.

  Developers have the option of submitting proposals for the complete design, financing, construction, operation and maintenance of offtake or monetisation facilities for one or both bundles. PDO will evaluate proposals for each bundle separately and award contracts independently.

  PDO is the operator of Block 6, Oman’s largest and most prolific hydrocarbon concession. Situated onshore and covering an area of 75,119 square kilometres, Block 6 contains 202 oil fields and 43 gas fields, with PDO producing approximately 680,000 barrels a day (b/d) of oil and condensate from those fields.

  The Omani government holds a 60% stake in PDO through Energy Development Oman (EDO). The other shareholders are UK-based Shell (34%), France’s TotalEnergies (4%) and Thailand’s state-owned PTTEP (2%).

  Scope of Bundle A

  The Wadi Umayri field development, located within the Qarn Alam cluster, produces crude oil from the Lekhwair, Shuaiba and Sudair reservoirs. A permanent processing facility is planned to come onstream by the first quarter of 2030.

  As a by-product of oil production, the development will generate associated gas at an initial rate of approximately 60,000 to 68,000 standard cubic metres a day (cm/d), declining over field life.

  PDO will install a sweetening unit as part of its own scope to meet Oman’s regulatory requirement of all gas with sulphur dioxide (SO₂) concentrations above 0.035 g/m³ to be treated prior to any disposal.

  At the delivery point (battery limit flange), the gas made available to the future developer will consist of a blended stream from two sources: approximately 80% sweetened separator gas and 20% flashed gas recovered from atmospheric storage tanks. This blended gas composition forms the basis for downstream utilisation, processing, or disposal considerations under the development concept.

  The duration of the contract to be awarded by PDO to the developer is 10 years.

  The scope of work on Bundle A is split between PDO and the developer, and covers the following:

  PDO tie-in scope:

  • Tie-in works from the production separator and oil tank to the defined delivery point (flange at battery limit), including piping, metering and ESD/control valves.
  • Sweetening unit upstream of the delivery point to treat the main gas stream and meet regulatory SO₂ limits for any non-routine flaring events.
  • Allocate a designated plot plan adjacent to the permanent facility, at no cost to the developer.
  • The gas delivery point is defined as the flange at PDO’s battery limit of the Wadi Umayri permanent facility. Gas will be supplied as-is at approximately 1.00 bar, with PDO bearing no obligation to provide gas at higher pressure or low hydrogen sulphide (H₂S) concentration.

  Developer scope:

  • Design, build, maintain and operate the gas monetisation system outside PDO’s battery limit.
  • Provide all equipment, infrastructure, compression, conditioning and downstream handling from the delivery point onward.
  • Bear full capital expenditure (capex), operational expenditure (opex), leases, health, safety and environment (HSE), and regulatory responsibilities for all developer scope.
  • Self-generation of all required utilities, such as power, water and chemicals.
  • Handling, treatment and disposal of all product and by-product streams.

  Scope of Bundle B

  FNOCS is a centralised processing facility at the Fahud field. The facility processes associated hydrocarbons from producing fields in PDO’s northern portfolio, generating two primary streams: produced NGL stream at FNOCS is blended into the Main Oil Line (MOL), while the produced fuel gas is supplied to the Fahud power plant.

  The continued flaring of NGLs at FNOCS is an interim risk-mitigation measure and not a sustainable operating solution. To identify a viable long-term outlet for these volumes, and to meet PDO’s broader strategy to eliminate flaring and comply with its zero routine flaring commitment by 2030, the company is seeking third-party developers to monetise hydrocarbon streams currently being flared at FNOCS.

  PDO’s target is to secure an attractive commercial structure to stop flaring by offering two independently proposed operating options:

  Option 1 – Monetise the flare gas stream, upstream of main gas compressor: Take the currently flared gas, at an output rate of 90,000 standard cm/d, as-is in the current interim operating mode. Developer to design, build and operate a gas monetisation system outside PDO’s battery limit. This option has the highest zero routine flaring compliance impact and eliminates the need for re-operating the main gas compressor and its associated equipment.

  Option 2 – Monetise NGL + fuel gas: Restart the main gas compressor and stabiliser to separate NGL and fuel gas streams for sale. Vendor takes NGL (downstream of stabiliser), at a current rate of 106,000 standard cm/d and fuel gas (upstream of Fahud power plant), at a current rate of 44,000 standard cm/d, through a combined commercial structure.

  The duration of the contract to be awarded by PDO to the developer for Bundle B is five years, with the proposed facility to come onstream by the first quarter of 2029.

  The scope of work on Bundle B is also split between PDO and the developer, and covers the following:

  PDO tie-in scope:

  Approximately 200 metres of piping to FNOCS fence, including control/ESD/relief valves and a flowmeter.

  Allocate a designated plot plan approximately 4km from the existing FNOCS facility for the developer’s monetisation system.

  • The delivery point for option 1 is defined as the flange at FNOCS’s fence, upstream of the main gas compressor. The delivery points for option 2 are: (i) the NGL outlet downstream of the stabiliser, and (ii) the fuel gas outlet upstream of the Fahud power plant. Streams from both options will be supplied as-is at approximately 1.00 bar, with PDO bearing no obligation to provide gas at higher pressure or low H₂S concentration.

  Developer scope:

  • Design, build, maintain and operate the gas monetisation system outside PDO’s battery limit.
  • Provide all equipment, infrastructure, compression, conditioning and downstream handling from the delivery point onward.
  • Bear full capital expenditure (capex), operational expenditure (opex), leases, health, safety and environment (HSE), and regulatory responsibilities for all developer scope.
  • Self-generation of all required utilities, such as power, water,and chemicals.
  • Handling, treatment and disposal of all product and by-product streams.

  PDO has been striving to curb, and eventually end, flaring across its operations for several years, as part of its own targets, as well as in alignment with the environmental sustainability framework under Oman Vision 2040.

  In May last year, PDO initiated a flare gas recovery project at the Zulaiyah station in Hazar South in partnership with Hungary-based Enerhash, which aims to convert flare gas into a sustainable energy source through modular digital mining infrastructure.

  Enerhash’s technology powers containerised data centres directly with flare gas, offering a decentralised solution suitable for remote oil fields.

  The project is designed to avoid around 25,000 tonnes a year of carbon-dioxide-equivalent emissions, and builds on PDO’s earlier South AP flare recovery project, which sought vendors to recover gas from atmospheric dehydration tanks across sites such as Bahja, Rima, Amal, Marmul and Nimr.

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  Indrajit Sen
• 
  Sabic completes $450m divestment of thermoplastics business

  6 August 2026

  Saudi Basic Industries Corporation (Sabic) has completed a transaction to divest its engineering thermoplastics business in the Americas and Europe to German venture capital and private equity firm Mutares, for an enterprise value of $450m.

  Sabic’s Americas and Europe engineering thermoplastics business produces polycarbonate, polybutylene terephthalate and acrylonitrile butadiene styrene resins and compounds, and operates manufacturing sites in Mt Vernon, Bay St Louis and Burkville in the US; Ottawa, Canada; Tampico, Mexico; Campinas, Brazil; Cartagena, Spain; and Bergen op Zoom, the Netherlands.

  The divestment process was initiated by Sabic in January this year and marks a significant milestone in the company’s broader portfolio optimisation programme.

  “The transaction supports Sabic’s continued focus on exiting structurally underperforming assets, reducing cash losses, improving return on capital employed and maximising long-term shareholder value,” the Saudi chemicals giant said.

  The divested business reported an operating loss of approximately $498m for full-year 2025, and approximately $173m for the first half of this year.

  On a pro forma basis, the carve-out of the engineering thermoplastics business improved Sabic’s earnings before interest, taxes, depreciation and amortisation (Ebitda) margin by approximately 130-140 basis points, “reflecting the positive impact of the transaction on the company’s overall profitability and portfolio quality”.

  In addition to agreeing the sale of its engineering thermoplastics business in January, Sabic also began a process to divest its European petrochemicals business to Aequita for an estimated enterprise value of $500m.

  Aequita is a Munich-based venture capital and private equity firm.

  Sabic’s European petrochemicals business produces and markets ethylene, propylene, low- and high-density polyethylene, polypropylene and value-added polymer compounds, and operates manufacturing sites in Teesside, the UK; Geleen, the Netherlands; Gelsenkirchen, Germany; and Genk, Belgium.

  Q2 2026 financial results

  Sabic reported a net loss of $100m for the second quarter of 2026, which it attributed to the impact of the Iran-US regional conflict on its business.

  The company had only returned to profit in the first quarter, registering a net income of $3.52m, after posting a full-year 2025 loss of $6.87bn.

  The Saudi petrochemicals giant also said Q2 2026 revenue fell 5% year-on-year to $6.62bn.

  Sabic posted adjusted Ebitda of $900m for the three months to 30 June, a drop of 18% compared to the previous quarter.

  Adjusted earnings before interest and taxes in Q2 also fell by 72% quarter-on-quarter to $110m, while adjusted earnings per share stood at $0.03.

  Saudi Exchange-listed Sabic said its net debt position remained largely unchanged at $730m at the end of June, compared with $740m at the end of March.

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  Indrajit Sen
• 
  UAE leads Mena project pipeline recovery

  6 August 2026

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  The Middle East and North Africa’s construction project pipeline strengthened in June 2026, recovering some of the momentum lost earlier in the year as the effects of the Israel-Iran conflict continued to work through regional project markets.

  GlobalData’s Construction Projects Momentum Index (CPMI) for the Mena region rose to 0.84 in June, up 5% from 0.80 in May, leaving the region third globally behind South Asia and Sub-Saharan Africa. The three-month moving average held at 0.95, unchanged from May.

  The recovery was led by execution-stage activity, where the score rose to 1.18 in June from 1.06 in May. Pre-execution momentum, however, continued to soften, falling to 0.68 from 0.73. The pre-execution stage captures project planning, design development and procurement preparation, and a sustained decline there can point to a thinning of the future pipeline even when near-term execution holds up.

  Infrastructure drove the sector-level gains, with momentum rising sharply to 1.03 in June from 0.25 in May, the largest increase among the region’s sectors. Industrial momentum rose to 0.78 from 0.40. Residential activity remained elevated at 1.17, easing only marginally from 1.22.

  The gains were partly offset by a steep pullback in institutional activity, where momentum fell to 0.45 in June from 1.72 in May, the largest decline of any sector. Commercial and leisure momentum eased to 0.88 from 1.13, and energy and utilities to 0.59 from 0.82.

  The UAE posted the region’s highest score in June at 1.52, up from 1.16 in May. Algeria rose to 1.26 from 0.68, and Kuwait recovered to 0.76 from 0.26. Egypt reached 1.36, Oman held at 0.87, Qatar rose to 0.86 and Iran eased to 0.81.

  Saudi Arabia was the main exception among the larger markets, with its score falling to 0.31 in June from 1.16 in May. GlobalData linked the decline to procurement disruption on renewable energy projects under the Public Investment Fund’s giga developments and to the Najran-Asir-Jizan direct road, which faced consecutive bidding delays and consortium withdrawals.

  Israel recovered to 0.65 in June from -1.66 in May, having recorded the region’s weakest scores through the earlier phase of the conflict.

  Whether the June recovery is sustained will depend on the direction of pre-execution activity, which continued to weaken even as execution-stage momentum firmed.

  ---

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

  Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

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

  > AGENDA: Expo 2030 Riyadh construction gathers pace > WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034 > MARKET FOCUS: Maghreb fortunes diverge > INDUSTRY REPORT: GCC banks prove resilient amid turmoil > LEADERSHIP: Private capital and the GCC infrastructure inflection > PORTS: Geopolitical risk shapes $513bn of global ports projects > INTERVIEW: Developers look beyond standalone solar

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

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  Colin Foreman
• 
  Mubadala backs Moove in $250m funding round

  6 August 2026

  UAE-headquartered mobility company Moove has raised $250m in a Series C funding round led by Abu Dhabi’s Mubadala Investment Company, giving the company a valuation of $2.1bn.

  The round was co-led by Woven Capital, the growth fund of Japan’s Toyota, and by Ion Pacific. It also brought in BlueCrest Capital Management and Sona Capital, alongside existing backers including BlackRock, Japan’s MUFG, Franklin Templeton, Uber and the Ontario Power Generation Pension Plan.

  Moove said the funding will support the expansion of its autonomous vehicle business, including fleet ownership and what it terms robotics-first depot infrastructure, or “Nests”, where autonomous fleets are charged, serviced, maintained and orchestrated. The company said the funds will also support new market launches.

  The company expects to grow its autonomous vehicle workforce by more than 220% by the end of the year, increasing from about 150 employees to about 500.

  Founded in 2020 and headquartered in the UAE, Moove finances, owns and operates mobility assets for ride-hailing platforms. It employs 3,300 people and operates about 42,000 vehicles across 29 cities in 13 countries, and has grown to $420m in annual recurring revenue. It has expanded through organic growth and acquisitions, including Kovi in Brazil and Tokyo Taxi in Japan.

  Moove is the largest global fleet partner of ride-hailing company Uber. Through a partnership with Waymo, the autonomous driving unit of US technology group Alphabet, it operates autonomous vehicle fleets in Phoenix and Miami in the US, with operations also planned in London.

  Mubadala first invested in Moove three years ago. The Series C round marks its continued backing of the company as it moves into autonomous fleet operations.

  ---

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

  Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

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

  > AGENDA: Expo 2030 Riyadh construction gathers pace > WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034 > MARKET FOCUS: Maghreb fortunes diverge > INDUSTRY REPORT: GCC banks prove resilient amid turmoil > LEADERSHIP: Private capital and the GCC infrastructure inflection > PORTS: Geopolitical risk shapes $513bn of global ports projects > INTERVIEW: Developers look beyond standalone solar

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

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  Colin Foreman
• 
  Contractors submit interest for Oman oil storage park expansion

  5 August 2026

  

   

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  Contractors have submitted prequalification documents to state-owned Oman Tank Terminal Company (OTTCO) for a major project related to the expansion of the Ras Markaz crude oil storage complex at Duqm, on the sultanate’s Arabian Sea coast.

  The project involves the engineering, procurement and construction (EPC) of eight large storage tanks, each with a capacity of 650,000 barrels. This will increase the Ras Markaz terminal’s total storage capacity by 5.2 million barrels.

  OTTCO issued the prequalification notice on 28 July, with contractors submitting responses by 4 August, according to sources.

  The project represents the second phase of the Ras Markaz oil storage terminal within the Special Economic Zone at Duqm (Sezad).

  OTTCO commissioned the first phase of the Ras Markaz crude oil storage park – which covers 10 square kilometres and has a capacity of 26.7 million barrels – in December 2022.

  The storage facility has two parts. The first is a marine services area, which includes a floating station for crude import and export. This zone is about 7 kilometres (km) offshore and is connected via two 42-inch pipelines and associated facilities.

  The floating station, with a depth of up to 42 metres, can accommodate very large crude carriers (VLCCs). It is linked to four main pumps that transfer crude oil to the storage area, which is located more than 120 metres above sea level. OTTCO could add pumps at a later stage to keep pace with future demand for oil storage.

  The second part of the storage facility features oil pumping systems, water treatment facilities, reservoirs, power station networks and other associated systems.

  Region’s largest oil storage park

  The Ras Markaz oil storage facility will be built in five phases over several years, across an area measuring about 40 square kilometres, for which OTTCO signed a land agreement with Sezad in July 2017.

  It will be able to hold 200 million barrels of crude a year. The total investment commitment for the scheme is understood to be $5.2bn.

  The storage terminal at the first phase of the Ras Markaz facility is connected to the estimated $7bn Duqm refinery and other oil derivative production plants at Sezad via a pipeline that will supply crude feedstock, when required, to the refinery.

  In 2017, Sezad awarded Netherlands-based dredging and maritime services specialist Royal Boskalis Westminster a $510m contract to construct the bulk liquid terminal at the Port of Duqm.

  The contract called for, among other things, the construction of a 980-metre quay wall, deepening the port basin to 18 metres and the approach channel to 19 metres, dredging and reclamation works and the establishment of a new double berth jetty island.

  In conjunction with the liquid berth project, about 79 hectares of terminal capacity was developed adjacent to the 4.6km-long secondary breakwater.

  ALSO READ: Omani storage tank operator prepares crude pipeline tender

  Following increased investor interest in Duqm – due to the refining and petrochemicals industrial potential it offers – a further 55 hectares was reclaimed from the sea to create new terminal capacity for existing and future companies looking to invest in Sezad.

  Following the completion of the marine infrastructure works at the liquid terminal, a consortium of Italy’s Saipem and US-based Chicago Bridge & Iron commenced work on a crude tank farm, product export terminal and other facilities. The group was awarded the contract for the Duqm refinery project’s EPC package three in February 2018.

  As a result, storage capacity at the bulk liquid terminal will increase to cater for a variety of refined products from the Duqm refinery. In addition, the pipeline network running from the refinery to the berth will facilitate direct shiploading, particularly of liquefied petroleum gas and high-sulphur fuel oil.

  Dry bulk products, such as petroleum coke and elemental sulphur from Duqm refinery, will be transported by truck to the liquid bulk terminal and stored in warehouses pending export.

  ---

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

  Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

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

  > AGENDA: Expo 2030 Riyadh construction gathers pace > WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034 > MARKET FOCUS: Maghreb fortunes diverge > INDUSTRY REPORT: GCC banks prove resilient amid turmoil > LEADERSHIP: Private capital and the GCC infrastructure inflection > PORTS: Geopolitical risk shapes $513bn of global ports projects > INTERVIEW: Developers look beyond standalone solar

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

  https://image.digitalinsightresearch.in/uploads/NewsArticle/18128607/main.jpg

  Indrajit Sen