meed-logo

line1 line2 line3
SIGN IN / REGISTER

Exxon yet to decide on Upper Zakum participation

27 November 2024

Register for MEED's 14-day trial access 

The US-based international oil company (IOC) ExxonMobil has yet to reach a final agreement with its partners on its level of participation in the next phase of the Upper Zakum field expansion project in Abu Dhabi, according to Liam Mallon, the president of the company’s upstream business.

Mallon said that financial terms have been a key issue in determining ExxonMobil’s future participation in the project.

Speaking at a conference in London, he said: “The challenge was getting an appropriate reward for that significant investment … we’ve been working hard on that, and we will participate in some form in the extension of Upper Zakum.

“We are pleased to do that. Exactly when and how that might get talked about is yet to be determined – but we will participate.”

Asked when Exxon’s level of participation in the expansion project would be finalised, Mallon said: “I will leave that for others.”

Commenting on Exxon’s relationship with the UAE, he said it was an example of “multi-decade partnerships where we bring our technologies and our capabilities – drilling the world’s longest wells week after week”.

The Upper Zakum field holds the record for the world’s longest oil well.

This record currently stands at 53,500 feet, according to Mallon.

Work under way

Earlier this week, MEED revealed that Adnoc Offshore had begun work on the next expansion phase of the Upper Zakum field development in Abu Dhabi, which aims to increase the asset’s oil production potential to 1.5 million barrels a day (b/d).

The offshore oil and gas production business of Abu Dhabi National Oil Company (Adnoc Offshore) recently awarded a contract for pre-front-end engineering and design (pre-feed) and feed services on the project, known as UZ 1.5MMBD, to France-headquartered contractor Technip Energies.

A kick-off meeting between Adnoc Offshore and Technip Energies took place on 21 November.

Located 84 kilometres offshore in Abu Dhabi, Upper Zakum is the world’s second-largest offshore oil field and fourth-largest oil field.

The UZ 1.5MMBD project is the latest in a series of crude output expansion projects that Adnoc Offshore has undertaken at the Upper Zakum field development.

Upper Zakum expansion

The first phase of the programme to raise the Upper Zakum offshore field development’s oil production capacity to 1.2 million b/d was launched in 2019. The initial goal was to increase the field’s output potential to 1 million b/d by 2024, which was later increased to 1.2 million b/d, with the project execution timeline eventually extended.

In April, MEED reported that Adnoc Offshore had awarded the main engineering, procurement and construction (EPC) contract for the UZ 1.2MMBD EPC-1 project to UAE-based Target Engineering Construction Company. The value of the EPC contract won by Target is estimated to be $825m.

The project’s main scope involves the EPC of several surface facilities and plants at the Upper Zakum offshore development’s four main artificial islands: Al-Ghallan, Umm Al-Anbar, Ettouk and Asseifiya – also known as Central Island, West Island, North Island and South Island, respectively.

Spanish contractor Tecnicas Reunidas won the contract for the feed works on the UZ 1.2MMBD EPC-1 project in 2019. UK-headquartered Wood Group was appointed as the project management consultant for the EPC phase.

Earlier in November, MEED reported that Adnoc Offshore had also selected Target Engineering Construction Company for the second phase of the Upper Zakum 1.2 million b/d project (UZ 1.2MMBD EPC-2). The value of the contract is estimated to be about $500m, according to sources.

The scope of work on the UZ 1.2MMBD EPC-2 project covers the EPC of several structures on Assefiya Island.

Adnoc Offshore performed the feed work on the UZ 1.2MMBD EPC-2 project in-house.

Upper Zakum oil production

Adnoc Offshore has committed to a total capital expenditure budget of approximately $30bn, along with its operating partners in the Upper Zakum hydrocarbons concession, Japan Oil Development Company (Jodco) and US-based ExxonMobil.

The strategic objective is to first raise the asset’s oil output from 640,000 b/d to 750,000 b/d through the UZ 750 project, then to 1.2 million b/d through the two phases of the ongoing UZ 1.2 MMBD project, and eventually to 1.5 million b/d.

Zakum Development Company (Zadco), which later merged into Adnoc Offshore, awarded EPC contracts for the UZ 750 project in 2012 and early 2013.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13006130/main.jpg
Wil Crisp

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

Click here to register
Exclusive from Meed
Related Articles
  • Shell approves Egypt offshore gas project

    31 August 2026

    BG Delta, a Shell subsidiary, has reached the final investment decision for phase 12a of the West Delta Deep Marine (WDDM) development project.

    The project will be implemented in partnership with Malaysia’s Petronas and state-owned Egyptian General Petroleum Corporation (EGPC).

    Shell, Petronas and EGPC formed a joint venture called Burullus Gas Company to operate the WDDM concession.

    Phase 12a includes drilling and completing three deepwater gas wells, with production expected to begin in 2028, according to a statement from the London-headquartered company.

    The wells will be tied into existing subsea infrastructure, helping accelerate development, improve capital efficiency and limit the need for additional facilities.

    Dalia El-Gabry, the vice-president and chairperson of Shell Egypt, said: “This investment demonstrates our commitment to maximising the remaining potential in WDDM where the right technical and commercial conditions exist.

    “By leveraging existing infrastructure and our proven development experience, we can accelerate delivery while reinforcing our partnership with the Egyptian government and joint venture partners to help meet Egypt’s energy needs.”

    The new development builds on phases 10 and 11, which brought six wells online during 2024 and 2025.

    Its scope also covers facility installation, tie-in operations, commissioning and connection to existing offshore infrastructure.

    Egypt’s Ministry of Petroleum & Mineral Resources said in May that about $350m had been allocated to phase 12a.

    In April, Egypt’s Petroleum Marine Services (PMS) was awarded a contract for offshore works for phase 12 of the WDDM field development project.

    The contract awarded to PMS uses the engineering, procurement, installation and construction contract model.

    Under the scope of the contract, PMS will install the required electrical, hydraulic and mechanical connections in deep waters to tie three new gas wells into production as part of phase 12.

    The scope also includes the installation of three final triple tie-in spool bases to complete the connection between the wells.

    During phases 10 and 11 of the WDDM project, PMS laid two offshore electrical cables at water depths reaching 660 metres, in addition to carrying out well tie-in and production connection works at depths of up to 880 metres.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19078753/main.jpg
    Wil Crisp
  • Contractors appointed for Group 1 battery storage projects

    27 August 2026

     

    Register for MEED’s 14-day trial access 

    Two contractors have been appointed for engineering, procurement and construction (EPC) works on Saudi Arabia’s four Group 1 battery energy storage system (bess) projects with a combined capacity of 2,000MW, a source has confirmed to MEED.

    Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), recently signed four storage service agreements for the bess projects, which will provide four hours of storage, equivalent to 8,000 megawatt-hours (MWh), and involve a total investment of more than SR4.35bn ($1.16bn).

    Three projects were awarded to a consortium comprising Saudi Energy, Acwa and Al-Sharif Contracting & Commercial Development Company.

    According to the source, India’s Larsen & Toubro will carry out EPC works for these three projects, comprising the Al-Muwyah and Haden bess independent storage providers (ISPs) in the Mecca region, and the Al-Kahafa bess ISP in the Hail region.

    Each has a capacity of 500MW for four hours. The three projects have a combined capacity of 1,500MW and 6,000MWh.

    L&T recently announced that it had secured “a major order” for bess projects in the Middle East but did not disclose the specific projects involved.

    The fourth project, the Al-Khushaybi bess ISP in the Qassim region, was awarded to a consortium of France’s Engie and local firm Haji Abdullah Alireza & Co. This also has a capacity of 500MW for four hours. 

    China’s Sepco 3 has been appointed as the EPC contractor for this project, a source said.

    The agreements cover the first group of ISP bess projects being procured by SPPC under a build, own and operate model. The projects are supervised by the Energy Ministry.

    The projects form part of Saudi Arabia’s efforts to achieve an electricity generation mix comprising approximately 50% renewable energy by 2030.

    As previously reported, the Group 2 programme comprises six ISP projects with a total capacity of 3GW, equivalent to 12,000MWh based on a four-hour storage duration.

    Developers recently submitted a first round of clarification requests to SPPC as they prepare their bids in advance of an October deadline.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19052381/main.jpg
    Mark Dowdall
  • Accor and Al-Qimmah plan 4,000 Saudi rooms

    27 August 2026

    France’s hotel operator Accor has expanded its partnership with local firm Al-Qimmah Hospitality, a subsidiary of Saudi Arabia’s BinDawood Investment Company, to develop more than 4,000 hotel rooms in the kingdom.

    The plan focuses on building a portfolio in Mecca and Medina.

    The expanded agreement was announced in Paris during the French-Saudi Investment Roundtable. It follows a master development agreement signed in 2025. The partnership now covers five hotels in Jeddah, Mecca and Medina across the premium, midscale and economy segments.

    One planned development is an 850-room Novotel in Mecca, due to open in 2030. The agreement also covers the Mercure Makkah Shesha, ibis Styles Makkah Mesfalah, Movenpick Madinah and Swissotel Jeddah properties.

    The partnership will also support job creation and Saudi workforce development through Tamayyaz by Accor, the group’s national talent programme run with the Saudi Ministry of Tourism. The programme aims to develop and hire more than 3,000 Saudi nationals by 2030.

    Accor has operated in Saudi Arabia for more than three decades and runs 48 hotels with more than 21,600 rooms nationwide. Its pipeline includes a further 47 properties comprising more than 11,400 rooms.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19051854/main.jpg
    Colin Foreman
  • Jeddah tenders stormwater drainage contracts

    27 August 2026

    Jeddah Municipality has invited contractors to bid for a contract covering the construction of a rainwater drainage network for the Prince Fawaz neighbourhood.

    The project aims to collect and convey rainwater away from residential streets and low-lying areas. It is valued at $60m and intended to reduce flooding risks during heavy rainfall.

    The scope includes manholes, stormwater catch basins and connections to existing manholes as well as the restoration of road surfaces.

    The bid submission deadline is 12 October.

    The municipality is also progressing with a second stormwater drainage project for the first package of Zone (BC), Old Zahraa in Jeddah Governorate, with bids due on 2 September. The project is valued at about $30m.

    The two projects are part of the municipality’s wider drainage programme, which includes the flagship King Abdullah Road-Falasteen Road tunnel project.

    MEED previously reported that Saudi contractor Thrustboring Construction Company had been selected for phases one and two of the project, each valued at about $175m, covering the construction of large-diameter stormwater drainage tunnels.

    It is understood that an official agreement has yet to be signed.

    In June, MEED reported that local contractor Alkhorayef Water & Power Technologies (AWPT) had signed two contracts with Jeddah Municipality to operate and maintain stormwater and surface water drainage networks across the city.

    The contracts have a combined value of SR202.06m ($53.9m), and each will run for five years.

    The first contract, valued at SR108.46m ($28.9m), covers the operation and cleaning of stormwater and surface water networks in the South and Al-Malisa sub-municipalities.

    The second contract, worth SR93.59m ($25m), covers similar services for the Airport Sub-Municipality.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19039514/main.jpg
    Mark Dowdall
  • Saur and Nesma sign water infrastructure deal

    26 August 2026

    French firm Saur and local contractor Nesma & Partners have signed a deal to jointly “pursue the design and construction” of two recycled water plants in Riyadh.

    The memorandum of understanding (MoU) was signed during the French-Saudi Investment Roundtable Meeting in Paris on 24 August.

    It builds on an earlier agreement by the companies last September focusing on developing desalination and sewage treatment plants across the kingdom, including project development, engineering, procurement and construction, and long-term operations and maintenance.

    At the time, the companies agreed to “target industrial water treatment through concession and operations contracts”, extending the agreement beyond municipal water infrastructure.

    The latest agreement appears to mark a move from the broader partnership towards specific project opportunities in the Riyadh market. Details of the projects were not disclosed.

    In May, MEED exclusively reported that a consortium including Saur, Nesma and another local firm, Al-Bawani, was preparing to bid for the Riyadh East independent sewage treatment plant (ISTP) project, for which the submission deadline was recently extended to 29 September.

    There are almost $2.5bn-worth of water treatment projects at the pre-execution stage in Saudi Arabia, according to regional tracker MEED Projects.

    The French-Saudi Investment Roundtable Meeting was organised as part of Saudi Crown Prince and Prime Minister Mohammed Bin Salman’s state visit to France.

    Saudi Aramco also announced agreements and an MoU with French companies worth a potential combined value of more than $3.7bn.

    Among the other agreements signed during the conference was a cooperation agreement between Saudi Energy and French public investment bank Bpifrance, valued at up to $3bn, to support financing for projects to develop and expand Saudi Arabia’s power grid.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19011713/main.jpg
    Mark Dowdall