Jordan’s oil and gas sector battles sluggish phase
6 June 2023
This package on Jordan’s oil and gas sector also includes:
> Jordanian and Turkish firms to build phosphoric acid plant
> Jordan selects refinery expansion winner
> Contractors await official award for Jordan refinery project
> Construction starts for phosphates plant in Jordan
Vital oil and gas projects in Jordan are witnessing little to no progress without the robust project finance structure needed to help the sector’s growth.
Jordan imports more than 90 per cent of its oil, gas and refined product requirements and therefore has a strong economic case for developing hydrocarbon infrastructure projects.
However, despite the government being willing to push through projects deemed essential for reducing reliance on energy imports, the lack of project financing options and inability to attract foreign investments into the energy industry has led to these projects stalling.
Delays to the fourth expansion phase of the Zarqa refinery complex, Jordan’s only oil refining asset, are a prime example of the sluggish environment in Jordan’s oil and gas sector.
Zarqa refinery expansion
Located in Zarqa governorate, roughly 35 kilometres east of the Jordanian capital Amman, the refinery has a capacity of 60,000 barrels a day (b/d).
The refinery’s first expansion project was completed in 1970, when capacity was boosted to 2,100 tonnes a day. The second expansion was completed in 1973, and the third in 1982, when the refinery’s production was increased to 8,700 tonnes a day.
Jordan Petroleum Refinery Company (JPRC) aims to increase Zarqa’s refining potential by two and a half times to 150,000 b/d. The expansion is also planned to allow the Zarqa refinery to upgrade residual fuel oil into lighter products, in accordance with Euro 5 emission standards, to reduce reliance on imports.
JPRC has been working to double the Zarqa refinery’s production capacity since 2017, but the project has experienced several start-stops.
JPRC signed two separate agreements in April 2017 with the US’ Honeywell UOP and KBR to facilitate the expansion project.
Under the terms of the agreement, Honeywell UOP was to provide manager licensor services, technology licensing, front-end engineering and design (feed) consultancy services and basic engineering designs, as well as catalysts and process equipment, training and start-up services.
KBR was to license its proprietary slurry-phase hydrocracking technology for the project. KBR’s scope of work increased in November 2017 when it signed another agreement with JPRC for the basic engineering design of a residue hydroprocessor to be installed as part of the expansion.
In October 2017, Spain’s Tecnicas Reunidas was appointed feed consultant for the project. Feed work resumed in July 2018 after a temporary suspension, with KBR selected as the new process technology licensor. France-based Technip Energies is the project management consultant.
Prevailing situation
The prospects for the Zarqa refinery’s fourth expansion brightened recently when JPRC was reported to have selected contractors to execute engineering, procurement and construction (EPC) works on the project.
JPRC’s CEO, Abdul Karim al-Alawin, told Jordan’s Arabic-language newspaper Alghad that the state-owned refiner had awarded the project’s main contract, but stopped short of revealing the winner.
MEED learned through sources that JPRC had selected a consortium of Italian contractor Tecnimont and China’s Sinopec Engineering to execute EPC works on the expansion project. According to the sources, JPRC issued a notification in “early May” to all bidders competing for the project, informing them of the selection of Tecnimont/Sinopec Engineering for the project’s main contract.
However, the official EPC contract is yet to be awarded as JPRC continues to secure funding from international credit agencies and other lenders for the project, which is estimated to cost $2.64bn, according to Al-Alawin.
“There is no definite date for this. We are still in the negotiation process for funding. We cannot decide when these negotiations are completed,” the CEO told Alghad.
Oil shale resources
To offset high energy import costs, Jordan is focusing on developing its oil shale resources. The country possesses the fourth-largest reserves of the mineral deposit globally, behind the US, China and Russia, with an estimated 90-100 billion barrels of oil in its shale deposits.
The kingdom has achieved some measure of success in its oil shale development efforts in the past. In June 2021, the first 235MW power generation unit of Jordan’s $2.2bn oil shale independent power producer (IPP) project was connected to the national electricity grid.
Also in 2021, Amman was reportedly planning to launch a hydrocarbon exploration licensing round for nine concession areas across the country – an exercise yet to occur. The proposed licensing round would have focused on the Al-Azraq, Jafr, West Safawi, Sirhan, Sirhan Development, Dead Sea, Northern highlands, Petra and Rum concession areas.
Progress has been made on a project to exploit oil shale reserves in the Isfir-Jafr area, which measures 380 square kilometres and is located approximately 200km south of Amman.
Canada’s Questerre Energy Corporation signed a memorandum of understanding (MoU) with Jordan’s Ministry of Energy & Mineral Resources in 2015 to appraise and develop oil shale in the Isfir-Jafr acreage. According to the latest information gathered by MEED Projects, the partners are preparing the main tender for the project.
Separately, in January this year, the ministry signed another MoU with Al-Majarrah Company for Shale Oil & Natural Resources to extract oil shale in Jordan’s Al-Lajoun area, which spans 15 sq km. Al-Majarrah is said to have begun a feasibility study for the project.
MEED's July 2023 report on Jordan also includes:
> POWER & WATER: Jordan sustains utility infrastructure progress
> CONSTRUCTION: Hospital boost for Jordan construction
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Deadlines extended for Kuwait oil projects worth $2.5bn
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Kuwait’s state-owned upstream operator Kuwait Oil Company (KOC) has extended bid deadlines for six vital oil projects, which are estimated to be worth a total of $2.5bn.
The first contract, estimated to be worth KD292m ($951m), is focused on developing a separation facility in the NK SA/BA Area, close to Gathering Centre 23 (GC-23) and GC-24.
The scope of the contract also includes a new injection facility at GC-31 and effluent water injection networks in north Kuwait. The project’s latest bid deadline has been set for 5 August.
The second contract is to develop the planned Mutriba remote boosting facility in northwest Kuwait. It was originally tendered earlier this year with a bid submission deadline of 29 June. The deadline has now been extended to 17 August.
The project has an estimated budget of about KD130m ($420m) and its scope includes:
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The onshore Mutriba oil field is located in northwest Kuwait.
In October 2024, KOC announced that it was preparing to tender a project management contract for a scheme to develop the field.
At the time, it said four international companies had been invited to participate in the tender process. These were:
- Schlumberger (US)
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KOC also said that the list of qualified companies could be extended before the invitation to bid was issued.
The third project, estimated to be worth $100m, is for an effluent water injection network in north Kuwait. The bid deadline has been extended to 5 August.
Effluent water injection or water flooding is a secondary hydrocarbons recovery technique where produced water is injected into a well’s formation under high pressure and temperature conditions to recover more of the oil initially in place.
The fourth project is estimated to be worth around $100m and is focused on the construction of a new injection network in north Kuwait that will service the Sabriyah/Bahra (SA/BA) area. Its bid deadline has also been extended to 5 August.
The fifth project that has had its deadline extended is focused on developing Jurassic Light Oil (JLO) export facilities and upgrading the existing export network.
The main contract bid submission date for the project, which is understood to have a budget of KD175m ($569m), has been changed to 3 August.
The project was originally tendered in November last year with a bid deadline of 1 December 2024. Other recent deadlines have included 15 July, 24 June, 27 May, 27 April and 6 April.
In an announcement in April last year, KOC prequalified up to 15 contractors to bid for these projects:
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- Hyundai Heavy Industries (South Korea)
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In September 2024, KOC announced a second list of 13 prequalified contractors, with Hyundai Heavy Industries and NMDC Energy removed from the list.
At the time, KOC said that companies not included on the list could file a complaint against their non-inclusion before the official invitation to bid on the project.
It is unclear whether more prequalified companies have been added or removed from the list since September.
The sixth project that has seen its bid deadline extended is focused on developing separation facilities at GC-25 and a water injection facility at GC-30.
The contract is estimated to be worth KD104m ($338m). In the latest extension, the bid deadline has been set for 10 August.
Kuwait is in the middle of an upstream projects push, in line with its goal of producing 4 million barrels a day of oil by 2035.
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Arada awards $16m retail complex construction deal
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Sharjah-based real estate developer Arada has awarded a AED60m ($16m) contract to build the Masaar Central project in the Suyouh district of Sharjah.
The contract was given to the local firm Intermass Engineering & Contracting.
Masaar Central will serve as the retail hub at the centre of the Masaar project.
Construction is expected to begin soon, with completion slated for 2026.
Masaar Central will offer retail, dining, wellness and education facilities over an area of 53,000 square feet.
In June last year, Arada awarded a AED830m ($226m) contract to Intermass Engineering & Contracting to build 597 units in the Saro cluster of the Masaar project.
Intermass has previously completed the Sendian cluster, the first residential phase of Masaar, and is currently working on Robinia, Masaar’s third phase.
Valued at AED8bn, the Masaar scheme includes 4,000 villas and townhouses across eight gated districts, featuring a nature-inspired masterplan with more than 50,000 trees.
Arada’s new project launches reflect increased activity in the UAE real estate market, where projects worth over $323bn are in execution or planning stages.
This aligns with a forecast from UK data analytics firm GlobalData, predicting that the UAE construction sector will grow by 4.2% in real terms in 2025, driven by infrastructure, energy, utilities and residential construction projects.
READ THE AUGUST 2025 MEED BUSINESS REVIEW – click here to view PDF
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Contract award nears for King Salman airport runway
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King Salman International Airport Development Company (KSIADC) has received best and final offers (bafos) for a design-and-build contract to develop the third runway at King Salman International airport (KSIA) in Riyadh.
"Bafos were submitted earlier this month [in July] and the contract is expected to be finalised soon," a source close to the project told MEED.
It is understood that the third and fourth runways will add to the two existing runways at Riyadh’s King Khalid International airport, which will eventually become part of KSIA.
In February, MEED exclusively reported that firms had submitted prequalification documents on 18 January for a contract to develop the third runway and taxiways at KSIA.
KSIADC, which is backed by Saudi sovereign wealth vehicle the Public Investment Fund, received interest from firms in December last year for the package.
KSIADC previously prequalified firms for the main engineering, procurement and construction packages and early and enabling works, as well as other elements of the construction work. These included specialist systems and integration; materials and equipment; engineering and design; professional services; health, safety, security, environment and wellbeing services; modular installation and prefabrication; local content; and environmental, social and governance (ESG) and other services.
The entire scheme is divided into eight assets:
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In August last year, KSIADC appointed several architectural and design firms for the various elements of the project.
KSIADC confirmed that it had signed up UK-based Foster + Partners to design the airport’s masterplan, including the terminals, six runways and a multi-asset real estate area.
US-based engineering firm Jacobs will provide specialist consultancy services for the masterplan and the design of the new runways.
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Mega airport project
The project covers an area of about 57 square kilometres (sq km), allowing for six parallel runways. It will include the existing terminals at King Khalid International airport, as well as 12 sq km of airport support facilities, residential and recreational facilities, retail outlets and other logistics real estate.
If the project is completed on time in 2030, it will become the world’s largest operating airport in terms of passenger capacity, according to UK analytics firm GlobalData.
The airport aims to accommodate up to 120 million passengers by 2030 and 185 million by 2050. The goal for cargo is to process 3.5 million tonnes a year by 2050.
Saudi Arabia plans to invest $100bn in its aviation sector. Riyadh’s Saudi Aviation Strategy, announced by the General Authority of Civil Aviation, aims to triple Saudi Arabia’s annual passenger traffic to 330 million travellers by 2030.
It also aims to increase air cargo traffic to 4.5 million tonnes and raise the country’s total air connections to more than 250 destinations.
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NMDC Energy begins fabrication at Saudi Arabia yard
29 July 2025
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Abu Dhabi-owned contractor NMDC Energy has started fabrication activities at its new yard in Ras Al-Khair, Saudi Arabia.
Built at a cost of AED200m ($54.5m), the yard covers 400,000 square metres within the Ras Al-Khair Special Economic Zone in the kingdom’s Eastern Province. It has a production capacity of 40,000 tonnes a year.
NMDC Energy held a steel-cutting ceremony on 28 July to mark the start of operations at the Ras Al-Khair yard.
The Abu Dhabi Securities Exchange-listed company inaugurated the facility in mid-January.
NMDC Energy signed a memorandum of understanding with Aramco to build the facility in 2018, when it was known as National Petroleum Construction Company (NPCC).
Nine offshore jackets are currently in production for NMDC Energy’s client, Saudi Aramco.
More than 1,800 employees will be mobilised from Abu Dhabi to the Saudi Arabia yard, NMDC Energy said.
“The Ras Al-Khair yard is central to NMDC Energy’s Saudi strategy and localisation roadmap. Over the past five years, the company has reinvested billions of riyals into the Saudi economy and is on track to increase its In-Kingdom Total Value Add score to 39% by 2025 and 51% by 2028,” NMDC Energy added.
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READ THE AUGUST 2025 MEED BUSINESS REVIEW – click here to view PDF
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Distributed to senior decision-makers in the region and around the world, the August 2025 edition of MEED Business Review includes:
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Miral moves Harry Potter theme park bid deadline
29 July 2025
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Abu Dhabi’s Miral has extended the bid submission deadline for a tender to build a Harry Potter-themed expansion at the Warner Bros World Yas Island entertainment destination in Abu Dhabi.
Earlier this month, MEED exclusively reported that the tender for the estimated AED2bn-AED3bn ($545m-$816m) main construction works had been issued to contractors, with bids initially due on 28 July.
Miral has extended the bid submission deadline until 4 August, according to sources.
The scope of the Warner Bros World phase two expansion includes adding 40,000 square metres (sq m) to the existing theme park. This will include a Harry Potter-themed zone with three new rides, retail outlets, and food and beverage facilities.
Enabling works for the project have begun and are being undertaken by local firm NSCC International. Another local firm, Emirates Electrical & Instrumentation Company, is carrying out the early works.
Canadian engineering firm EllisDon is the project consultant, and French firm Egis is the lead designer.
According to media reports, the Abu Dhabi project will be the world’s sixth Harry Potter-themed park. The others are in Florida and California in the US, Beijing in China, Osaka in Japan and Leavesden in the UK.
The Abu Dhabi project was first announced in November 2022.
Yas Waterworld
Miral has developed a series of theme parks and other entertainment-related attractions on Yas Island, working with several local and international contractors.
On 1 July, Miral opened a new 16,900 sq m expansion of its Yas Waterworld park to the public.
The expansion added 3.3 kilometres of slide sections to the park. The addition of 18 new rides and attractions, bringing the total number of rides to more than 60, is expected to increase visitor capacity by 20%.
Construction was carried out by local contractor Alec.
Disney park
In May, The Walt Disney Company and Miral signed an agreement to build a Disney theme park resort on Yas Island.
Disney, which is based in the US, said the Abu Dhabi site will be its seventh theme park resort. The others are in California and Florida in the US, Paris in France, Hong Kong and Shanghai in China, and Tokyo in Japan.
In a statement, Disney noted that the UAE is located within a four-hour flight of one-third of the world’s population, making it a significant gateway for tourism. It is also home to one of the world's busiest airline hubs, with 120 million passengers travelling through Abu Dhabi and Dubai each year.
The Disney theme park resort in Abu Dhabi will include entertainment areas, themed accommodations, dining venues and retail experiences.
In 2023, Miral opened SeaWorld Abu Dhabi, also on Yas Island. Alec was the contractor for the estimated $565m project.
In 2018, Miral opened the Warner Bros theme park on Yas Island. Belgium’s Besix was the contractor for the estimated $531m project.
Other Miral projects have included the Etihad Arena and the indoor climbing and skydive centre Clymb. Bam International of the Netherlands was the contractor for the arena and Germany’s Zublin was the contractor for Clymb.
Yas Island was launched as a project in 2006 by local developer Aldar Properties. The original centrepiece attractions were the Yas Marina Circuit, which hosts Formula 1 motor racing’s annual Abu Dhabi Grand Prix, and the Ferrari World theme park.
READ THE AUGUST 2025 MEED BUSINESS REVIEW – click here to view PDF
Gulf heads into a new era of aviation; Maghreb’s resilience rises despite global pressures; GCC banks expand issuance amid demand
Distributed to senior decision-makers in the region and around the world, the August 2025 edition of MEED Business Review includes:
> AGENDA 1: Middle East invests in giant airports> AGENDA 2: Broader region upgrades its airports> AGENDA 3: Global air travel shifts east> CURRENT AFFAIRS: Syria wrestles fragile security situation> GCC BANKS: Gulf banks navigate turbulent times> CONSTRUCTION: Soudah Peaks outlines project construction plans> INTERVIEW: SETS leads Saudi heritage preservation charge> LEADERSHIP: From plastic leakage to leadership in the Gulf> MAGHREB MARKET FOCUS: Maghreb pushes for stabilityTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/14358463/main.jpg