meed-logo

line1 line2 line3
SIGN IN / REGISTER

Firms express interest in Lower Zakum project

8 May 2023

Contractors have expressed interest in bidding for the main contract for the first phase of the Lower Zakum Long-Term Development Plan (LTDP-1) project. The offshore arm of Abu Dhabi National Oil Company (Adnoc Offshore) owns the project.

The Lower Zakum LTDP-1 project is the larger of two projects that the offshore arm of Abu Dhabi National Oil Company has undertaken in line with its ambition to raise the oil and gas production potential of Abu Dhabi’s Lower Zakum offshore hydrocarbon concession over the long term.

Contractors submitted expression of interest (EoI) documents, as part of the prequalification process, for the LTDP-1 project by 27 April, according to sources.

Adnoc Offshore issued the EoI to contractors for the engineering, procurement and construction (EPC) tendering exercise for the Lower Zakum LTDP-1 “earlier in March”, sources previously told MEED, with contractors initially asked to respond by 10 April.

Lower Zakum oil production

The Lower Zakum hydrocarbons zone is 65 kilometres northwest of Abu Dhabi in the Gulf’s waters. Adnoc Offshore holds the majority 60 per cent stake in the Lower Zakum asset. Foreign partners include an Indian consortium of companies led by ONGC Videsh (10 per cent), Japan’s Inpex Corporation (10 per cent), China National Petroleum Corporation (10 per cent), Italy’s Eni (5 per cent) and France’s TotalEnergies (5 per cent).

Adnoc Offshore and its partners in the Lower Zakum concession intend to sustain oil production from the asset at its current level of 450,000 barrels a day (b/d) until 2025, and then increase output to 470,000 b/d. This target will be achieved through the Lower Zakum early production scheme 2 (EPS 2) and proved developed producing (PDP) project.

The larger, longer-term objective is to raise Lower Zakum’s oil production to 520,000 b/d by 2027 and maintain that level until 2034. This goal is to be accomplished through the LTDP-1 project.

Raising oil and gas production from the Lower Zakum asset is vital for Adnoc to achieve its accelerated target of increasing oil production capacity to 5 million b/d by 2027, and raising gas output potential by 3 billion cubic feet a day (cf/d) by the end of this decade.

Lower Zakum EPS 2/PDP project

Front-end engineering and design (feed) work is progressing on the Lower Zakum EPS 2/PDP project and is being performed by UK-headquartered Wood Group.

Adnoc Offshore, which, according to sources, awarded Wood the contract in November last year, expects feed work on the project to be completed by June.

The basic scope of work on the project involves the drilling of 17 additional producer and water injection wells on two new wellhead towers (WHTs) and the expansion of the gas compression capacity of the Zakum West Super Complex (ZWSC).

Integration of the Lower Zakum complexes with the onshore power grid at UZ AGI for electricity supply to the EPS 2/PDP project is also part of the scope.

Demolition of structures and as-built documentation and surveying are also included in the scope of work.

Adnoc Offshore solicited interest for the Lower Zakum EPS 2/PDP project EPC works in December last year. Contractors expressed interest in participating in the main contract tendering process in January, sources told MEED.

As per the schedule, Adnoc Offshore expects to issue the project’s main EPC tender in June, with the award of contracts to take place in September.

Lower Zakum LTDP-1 project

Feed work is progressing on the Lower Zakum LTDP-1 project and is being performed by France’s Technip Energies.

According to sources, Adnoc Offshore awarded Technip Energies the contract in November last year. The operator expects feed work on the project, which began in December, to be completed by January 2024.

Adnoc Offshore issued the expression of interest for the Lower Zakum LTDP-1 EPC tendering exercise “earlier in March”, with contractors asked to respond by 10 April.

The detailed scope of work on the Lower Zakum LTDP-1 project is as follows:

Topside facilities on G Island – Civil works on process facilities and associated buildings on the artificial greenfield G Island.

Process facilities include well pads, inlet and export reception, production separation, export pumps, gas compression, dehydration and lift, produced water treatment and disposal, vapour recovery units, water injection units, riser tower, flare towers, accommodation, drilling of high-pressure flare knock out drum, power distribution facility, substations and local equipment rooms.

Offshore WHTs and pipelines – Seven WHTs will be installed: six in the east area, and one in the AGI area. Five of the WHTs are to be 16-slot, while the two others are to be 9-slot.

Das Island Terminal, ZCSC and ZWSC – The five existing oil processing trains at the Lower Zakum offshore development are to be decommissioned in 2028, with the new configuration of the main processing plant at Das Island to be:

  • Two existing trains with a processing/stabilisation capacity of 110,000 b/d each
  • Three new trains with a processing/stabilisation capacity of 150,000 b/d

The scope of work also covers the installation of other structures such as:

  • Three high-pressure separator trains
  • High-pressure scrubber
  • Three low-pressure separator trains
  • Low-pressure scrubber
  • Three atmospheric separator trains
  • Four crude charge pumps
  • Three crude charge heaters
  • Three cold strippers integrated with a degassing vessel
  • Six stripped crude product pumps
  • Common ejector with a spare for three cold strippers
  • Closed drain drum with transfer pump
  • Blow case vessel

As per the schedule, Adnoc Offshore expects to issue the project’s main EPC tender in December, with the award of contracts to take place in March next year.

The operator expects the Lower Zakum LTDP-1 project to be commissioned by the end of 2027.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10825529/main4514.jpg
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • WEBINAR: GCC Data Centres Market 2026

    9 February 2026

    Webinar: GCC Data Centres Market 2026
    Tuesday 24 February | 11:00 GST  |  Register now

    Agenda:

    • Overview: Economic diversification, industrialisation, localisation and AI agendas
    • Data and AI strategies, regulations and framework
    • Data centre projects overview, pipeline and investments by country
    • Key trends and analysis: current and future capacity, construction cost per MW
    • GCC data centre top unawarded projects
    • GCC top clients, contractors, personalities
    • Data centre energy requirements, technologies and carbon footprint mitigation
    • Summary
    • Q&A session

    Hosted by: Edward James, head of content and analysis at MEED

    A well-known and respected thought leader in Mena affairs, Edward James has been with MEED for more than 19 years, working as a researcher, consultant and content director. Today he heads up all content and research produced by the MEED group. His specific areas of expertise are construction, hydrocarbons, power and water, and the petrochemicals market. He is considered one of the world’s foremost experts on the Mena projects market. He is a regular guest commentator on Middle East issues for news channels such as the BBC, CNN and ABC News and is a regular speaker at events in the region. 

    Click here to register

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15608655/main.gif
    MEED Editorial
  • Coastal destinations are a boon to Egyptian construction

    9 February 2026

     

    Egypt’s construction industry is poised for significant growth on the back of two large-scale schemes worth a combined $50bn that were announced last year.

    The key projects set to drive future growth are the $29.7bn North Coast development by Qatari Diar, the real estate arm of Qatar’s sovereign wealth fund, and the $19bn Red Sea Marassi project on Egypt’s Hurghada coast, being developed by Emaar Misr and City Stars.

    These large-scale, multi-phased schemes are expected to provide further impetus to a market that in 2024 also saw the launch of the $24bn Ras El-Hekma project, a 170-million-square-metre (sq m) development announced by Abu Dhabi-based holding company ADQ.

    Market performance

    The projects are a much-needed boon in an otherwise declining market. In 2025, contract awards in Egypt’s construction and infrastructure sectors fell by 35% year-on-year, with total awards amounting to just $10bn.

    The decline marked a deepening slowdown following a boom in 2022, when construction and transport contract awards reached a record $23bn, before sliding to $15.6bn in 2023, according to MEED Projects.

    The prolonged contraction in project activity has reshaped contractor behaviour. Faced with a thinning domestic pipeline, Egyptian firms have increasingly looked beyond their home market, with Saudi Arabia emerging as the clear beneficiary.

    Since the start of 2022, Egyptian contractors have secured more than $40bn in work in Saudi Arabia, underscoring their growing role in the kingdom’s expansive projects market. Leading players include Orascom Construction, Petrojet, Enppi, Elsewedy and Hassan Allam Construction.

    Future prospects

    With a pipeline of more than $110bn-worth of construction and infrastructure projects, Egypt offers potential that could entice contractors to return in the medium to long term.

    The most advanced of these schemes is the Ras El-Hekma project. The development involves constructing a new state-of-the-art city on the Ras El-Hekma peninsula, west of Alexandria, between Marsa Matrouh and the city of New Alamein.

    The project’s scope includes residential districts, hotels, resorts, entertainment venues and service facilities such as hospitals, schools and universities. Plans also feature administrative buildings, an economic free zone for the information technology sector, logistics hubs, a business district and a marina.

    Activity has stepped up recently. In January, Modon tendered several contracts for the first phase of development at Ras El-Hekma. These cover construction work across five packages that are expected to cost several billion Egyptian pounds.

    Modon Holding also awarded a $316m contract in January for one of the packages to the local firm Orascom Construction.

    With an initial investment of $24bn, the Ras El-Hekma project represents a significant financial infusion into Egypt’s struggling economy. The development is expected to provide an immediate stimulus to the construction industry and related sectors, with Egyptian contractors and real estate developers set to play key roles in the project’s development and operation.

    The other large-scale scheme expected to make progress is the Red Sea Marassi project. Design work for the project’s initial phase is complete, and tendering for the main construction works is expected to begin shortly.

    The development spans more than 10 square kilometres (sq km) and is located near Hurghada International airport. It features a 1.5-kilometre beachfront, 400 metres of sea docks, 12 hotels and more than 500 retail facilities.

    The Qatar-backed North Coast development, meanwhile, is expected to enter the market in the near future. The development, featuring residential assets, hotels, schools, universities and leisure facilities, will span an area of about 20 sq km in the Alamein Al-Roum area.

    Transport pipeline

    The most immediate transport infrastructure project anticipated to move ahead is the addition of a fourth terminal at Cairo International airport. Egypt completed the project’s financial and technical studies last year. Upon completion, the new terminal is expected to increase the airport’s capacity to 60 million passengers a year.

    Beyond aviation, the transport pipeline is dominated by plans to expand Egypt’s railway and urban transit networks. According to the National Authority for Tunnels (NAT), eight major schemes covering metro, high-speed rail and light rail transit (LRT) are currently at the study stage.

    The first of these is the extension of Cairo Metro Line 1 from El-Marg North to Shubra El-Kheima. The scheme will span about 19km and include 14 stations.

    Another major proposal is Cairo Metro Line 6, a 34km-long line running parallel to Line 1. The route will run north-south through Greater Cairo, linking Shubra El-Kheima and New Maadi, and terminating at the start of Ain El-Sokhna Road at Al-Khosos.

    Plans are also in place for Line 4 of the high-speed rail network, which will extend from Port Said to Abu Qir in Alexandria. In parallel, NAT is studying further phases of Cairo Metro Line 4.

    Additional projects under consideration include phase five of the LRT system linking Cairo with the New Administrative Capital and 10 Ramadan City, and phase five of Cairo Metro Line 3.

    The pipeline also includes the rehabilitation and maintenance of Cairo Metro Line 2, as well as a proposed line extending from the end of the second phase of Cairo Metro Line 4 at Al-Rehab to Cairo International airport.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15606679/main.gif
    Yasir Iqbal
  • Firms submit $1bn phosphate rail track doubling package

    9 February 2026

     

    Contractors have submitted bids to Saudi Arabian Railways (SAR) for a SR4bn-plus (approximately $1bn) contract to add another track to the existing phosphate transport railway network in the kingdom’s Eastern Province.

    According to sources, contractors submitted their bids on 1 February.

    SAR issued the tender notice in late November and set an initial bid submission deadline of 20 January, as MEED previously reported.

    The existing railway line runs from the Waad Al-Shamal mines to Ras Al-Khair. The new project will span about 100 kilometres, connecting the AZ1/Nariyah Yard to Ras Al-Khair.

    The scope includes track doubling, alignment modifications, new utility bridges, culvert widening and hydrological structures, as well as the conversion of the AZ1 siding into a mainline track.

    The scope also covers support for signalling and telecommunication systems.

    Switzerland-based engineering firm ARX is the project consultant.

    MEED understands that this is the first of four packages that SAR is expected to tender imminently for the phosphate railway line.

    The other packages expected to be tendered shortly include the second section of track doubling, the depot and the systems package.

    In 2023, MEED reported that SAR was planning two projects to increase its freight capacity, including an estimated SR4.2bn ($1.1bn) project to install a second track along the North Train Freight Line and construct three new freight yards.

    Formerly known as the North-South Railway, the North Train is a 1,550km-long freight line running from the phosphate and bauxite mines in the far north of the kingdom to the Al-Baithah junction. There, it diverges into a line southward to Riyadh and a second line running east to downstream fertiliser production and alumina refining facilities at Ras Al-Khair on the Gulf coast.

    Adding a second track and the freight yards will considerably increase cargo-carrying capacity on the network and facilitate growth in industrial production. Project implementation is expected to take four years.

    State-owned SAR is also considering increasing the localisation of railway-focused materials and equipment, including the construction of a cement sleeper manufacturing facility.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15606416/main.jpg
    Yasir Iqbal
  • Aldar and Dubai Holding announce new Dubai projects

    9 February 2026

    Abu Dhabi-based developer Aldar Properties and Dubai Holding have signed another joint-venture agreement to expand their partnership in Dubai by adding two new projects to their portfolio.

    The new developments will deliver 14,000 new residential units.

    The first project will be located in the Nad Al-Sheba area. It will span an area of about 4 million square metres (sq m) and comprises apartments, townhouses and villas. The project will be launched this year.

    The other project will be developed on Palm Jebel Ali. It will be a waterfront development featuring branded and non-branded residences.

    The project will cover about 250,000 sq m and will be launched next year.

    In a statement, Aldar said: “The partnership, which was announced in 2023, marks a significant milestone in Aldar’s continued growth in Dubai, following the successful launches of its first communities in the emirate, including Haven, Athlon and The Wilds.”

    Dubai Holding is a diversified global investment company with a portfolio of AED130bn ($35bn)-worth of assets, while Aldar is Abu Dhabi’s largest listed developer.

    The joint venture is currently developing three new communities across an area of 38.2 million square feet (3.55 million sq m) in Dubai.

    The new communities are located in the city’s suburban heart, along the E311 and E611 corridors, on some of the last remaining vacant, undeveloped plots in this popular area.

    Aldar will be responsible for the full development cycle, including concept design, sales, delivery and management of the developments.

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

    Spending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.

    Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15606426/main.jpg
    Yasir Iqbal
  • Contract award imminent for Etihad high-speed rail PMC

    9 February 2026

     

    The UAE’s Etihad Rail is preparing to finalise a contract covering project management consultancy (PMC) services for the civil works and station packages of the high-speed railway (HSR) line that will connect Abu Dhabi and Dubai.

    MEED understands that at least five groups submitted their best and final offers in late January.

    The contract will likely be finalised within a couple of weeks.

    Last week, MEED exclusively reported that Etihad Rail had awarded multibillion-dollar design-and-build contracts for the civil works and station packages of the HSR line connecting the two cities.

    MEED understands that the overall project is worth more than $8bn.

    The contract for the construction of the Abu Dhabi side of the railway was awarded to a consortium comprising Abu Dhabi’s National Projects Construction (NPC), Trojan Tunnelling, Turkiye’s Kalyon and Beijing-headquartered China State Construction Engineering Corporation.

    The other deal, comprising the construction of the Dubai side of the railway, was awarded to a consortium of India’s Larsen & Toubro (L&T), Beijing-based China Harbour Engineering Company and local firm Wade Adams.

    US-based Jacobs is the designer for the NPC group. French engineering firm Egis and Singapore’s Surbana Jurong are the designers for the L&T-led consortium.

    The design speed of trains running on the UAE’s HSR network will be 350 kilometres an hour (km/h), and the operating speed will be 320km/h.

    The proposed HSR programme will be constructed in four phases, gradually adding further connectivity to other areas within the UAE.

    The first phase involves constructing a railway line connecting Abu Dhabi and Dubai, which is expected to be operational by 2030.

    The second phase will develop an inner‑city railway network with 10 stations within the city of Abu Dhabi.

    The third phase of the railway network involves constructing a connection between Abu Dhabi and Al-Ain.

    The fourth phase involves developing an inter-emirate connection between Dubai and Sharjah.

    The 150km first phase of the HSR will stretch from the Al-Zahiyah area of Abu Dhabi to Al-Jaddaf in Dubai.

    The project’s civil works have been split into two packages – Abu Dhabi and Dubai – comprising four sections. The scope of these sections includes:

    • Phase 1A: Al-Zahiyah to Yas Island (23.5km) 
    • Phase 1B: Yas Island to the border of Abu Dhabi/Dubai (64.2km)
    • Phase 1C: Abu Dhabi/Dubai border to Al-Jaddaf (52.1km)
    • Phase 1D: Abu Dhabi airport delta junction and connection with Abu Dhabi airport station (9.2km)

    The rail line will have five stations: Al-Zahiyah (ADT), Saadiyat Island (ADS), Yas Island (YAS), Abu Dhabi International airport (AUH) and Al-Jaddaf (DJD).

    The ADT, AUH and DJD stations will be underground, while ADS will be elevated and YAS will be at grade.

    The overall construction package also includes provisions for rolling stock, railway systems and two maintenance depots.

    The high-speed project will slash journey times between the UAE’s two largest cities and economic centres. The journey time between the YAS and DJD stations will be 30 minutes.

    Spanish engineering firms Sener and Ineco are the project’s engineering consultants.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15606446/main.jpg
    Yasir Iqbal