meed-logo

line1 line2 line3
SIGN IN / REGISTER

Kuwait engages firms for new Dorra gas processing plant

23 July 2025

 

Register for MEED’s 14-day trial access 

With inputs from Indrajit Sen

Kuwait Gulf Oil Company (KGOC), a subsidiary of state energy conglomerate Kuwait Petroleum Corporation (KPC), has set in motion a project to develop an onshore gas processing plant that will receive gas feedstock from the Dorra offshore gas field located in the Saudi-Kuwait Neutral Zone.

KGOC has started an early engagement process with contractors for the main engineering, procurement and construction (EPC) tendering exercise for the Dorra onshore gas processing facility, which is to be located in Kuwait, according to sources.

France-based Technip Energies is performing front-end engineering and design (feed) on the project, and is expected to complete the work by the end of the year, sources told MEED.

Based on the progress of the feed work, KGOC is expected to issue the main EPC tender for the Dorra onshore gas processing facility in September, as per sources.

The proposed facility will receive gas via a pipeline from the Dorra offshore field, which is being developed in a separate project by Al-Khafji Joint Operations (KJO) – a joint venture of KGOC and Saudi Aramco subsidiary Aramco Gulf Operations Company (AGOC).

ALSO READ: Arabian Drilling wins contract extension from KJO

The planned KGOC facility will have the capacity to process up to 632 million cubic feet a day (cf/d) of gas and 88.9 million barrels a day of condensates from the Dorra field.

The KGOC onshore gas processing facility will be located in the vicinity of the Al-Zour refinery, owned by KPC subsidiary, Kuwait Integrated Petroleum Industries Company (Kipic).

A 700,000 square-metre plot has been allocated next to the Al-Zour refinery for the gas processing facility and discussions about survey work are ongoing. The site will potentially need to be shored, backfilled and dewatered.

Shoring involves installing supporting infrastructure that prevents oil from collapsing or shifting. Backfilling involves filling any holes or voids on the site to provide stability to the area, and dewatering is the process of removing excess water from the site.

The planned onshore gas processing plant will also supply surplus gas to KPC’s upstream business Kuwait Oil Company (KOC) for possible injection into its oil fields.

Additionally, KGOC plans to award licensed technology contracts to US-based Honeywell UOP and Shell subsidiary Shell Catalysts & Technologies for the gas processing plant’s acid gas removal unit and sulphur recovery unit, respectively.

Dorra offshore gas field

The Dorra gas field, located in Gulf waters of the Saudi-Kuwait Neutral Zone, is estimated to hold 20 trillion cubic metres of gas and 310 million barrels of oil.

MEED reported in September 2023 that Aramco and KPC had selected Technip Energies to carry out pre-feed and feed work on the Dorra offshore field development project.

The original feed work for a project to develop the field was performed more than a decade ago. However, due to changes in technology, the engineering design needed to be updated before the project could reach a final investment decision.

KJO is understood to have issued the tenders for the Dorra offshore field development project in August last year. It has divided the scope of work on the Dorra gas field development project, which is estimated to be valued at up to $10bn, into four EPC packages – three offshore and one onshore.

The EPC scope of work on the Dorra gas field development project packages and their bid submission deadlines are as follows:

  • Package 1: Seven offshore jackets and laying of intra-field lines – bids submitted on 2 June
  • Package 2A: Seven production deck modules and associated corrosion-resistant, alloy-lined pipes connecting to the gas compression plant – 31 July
  • Package 2B: Compression and auxiliary platforms, an accommodation platform, associated trunklines and cables connecting to the shoreline – 31 July
  • Package 3: Onshore gas processing plant – 31 July

The following contractors are understood to be among those bidding for the three offshore packages:

  • Lamprell (Saudi Arabia/UAE)
  • Larsen & Toubro Energy Hydrocarbon (India)
  • McDermott (US)
  • NMDC Energy (UAE)
  • Saipem (Italy)

Kuwait and Saudi Arabia have been collaborating to develop the offshore field since its discovery in 1965. The two sides expect to produce about 1 billion cubic feet a day of gas from the asset and have agreed to split the gas output equally.

A geopolitical tussle over ownership of the asset has hampered progress.

Iran, which calls the field Arash, claims that it partially extends into its territory and that Tehran should be a stakeholder in any development project. 

Kuwait and Saudi Arabia maintain that the Dorra field lies entirely in the waters of their shared territory, known as the Neutral Zone or Divided Zone, and that Iran has no legal basis for its claim. 

In February 2024, Kuwait and Saudi Arabia reiterated their claim over the Dorra field in a joint statement issued during an official meeting between Kuwaiti Emir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah and Saudi Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al-Saud in Riyadh.

READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF

UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:

> PROJECTS MARKET: GCC projects market collapses
> GULF PROJECTS INDEX: Gulf projects index continues climb
To see previous issues of MEED Business Review, please click here
https://image.digitalinsightresearch.in/uploads/NewsArticle/14286249/main0643.jpg
Wil Crisp

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

Click here to register
Exclusive from Meed
Related Articles
  • UAE growth exceeds predictions

    28 October 2025

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14963005/main.gif
    MEED Editorial
  • Iraq leads non-GCC project finance activity

    28 October 2025

    This package also includes: Region sees evolving project finance demand

     

    Iraq’s first airport public-private partnership (PPP) project is making steady progress, with bids submitted for the contract to redevelop the country’s main aviation hub, Baghdad International airport.

    The project, which could cost up to $600m, involves rehabilitating, expanding, financing, operating and maintaining the airport and increasing its capacity to around 15 million passengers a year. It is emblematic of Iraq’s growing position in the PPP market in the wider Middle East and North Africa (Mena) region outside of the GCC, where the country now outpaces the likes of Egypt and Morocco.

    Iraq’s Transport Ministry and General Company for Airport & Air Navigation Services released a tender for the airport project in July. In early October, bids were submitted for the scheme by three international consortiums. 

    The bidders were a UK/Turkish group of ERG International, Terminal Yapi and ERG Insaat; a Luxembourg/Iraq pairing of Corporacion America Airports and Amwaj International; and a larger consortium of five companies drawn from Saudi Arabia, Turkiye and Ireland, made up of Asyad Holding, Top International Engineering Corporation, Lamar Holding, YDA Insaat and Dublin Airport Authority. 

    The International Finance Corporation (IFC), part of the World Bank Group, signed an agreement with the Iraqi government in September 2023 to be the lead transaction adviser on the project – in what was its first PPP mandate in Iraq.

    Prominent sectors and frameworks

    Transport is one of the key sectors for project finance outside of the busy markets of the GCC, with $69bn-worth of schemes planned or under way across the 11 other countries of the region, according to regional project tracker MEED Projects. 

    The only sector that sees more activity is power, with $120bn-worth of projects in total. Between them, the wider region’s power and transport sectors account for more than half of the total market of $332bn of projects and more than 60% of the schemes by number.

    A few other areas have also been seeing significant amounts of activity, including the oil and gas sector with $57bn; chemicals projects, valued at $39bn; and construction, at $33bn. Most schemes are still in the planning rather than the execution phase, however, with around $118bn-worth of projects currently being built, or 36% of the total.

    In geographic terms, Iraq is the most active market, with $117bn-worth of project finance schemes in the works. It is followed by Egypt with $79bn, Morocco with $39bn and Iran with $38bn.

    Almost all countries have developed a project finance market of some description, although in the war-ravaged countries of Syria, Libya and Yemen the amount of activity is very limited.

    By far the most popular model for project finance deals in the region is build-operate- transfer (BOT) contracts, which account for $182bn-worth of all project finance activity under way or planned, equivalent to 55% of the total.

    BOT contracts are particularly prevalent in the power sector, with $65bn of deals, but they are also the most popular option in the chemicals, construction, transport and water sectors. In the oil sector, there is a slight preference for build-own-operate-transfer (BOOT) models over BOT contracts, although the latter are also widely used.

    Project finance trends

    There has been something of a slowdown in PPP activity in 2025 across the Mena region, excluding the GCC states – at least in valuation terms.

    There was a particularly strong market performance in 2024, when more than $39bn-worth of schemes using project finance were awarded. 

    In contrast, $19.2bn-worth of awards are expected to have been made by the end of December this year – down on 2024, but still well ahead of the figures for the years prior to that. 

    By other measures, activity is picking up, however. In 2025, the number of PPP contract awards is expected to rise to 32 by the end of the year. This compares to 18 contracts in 2024, which was itself twice as many as the year before. 

    Seven of the awards in 2025 are worth $1bn or more, for projects in Egypt, Iraq, Jordan and Morocco. 

    The largest is the $3.5bn Aqaba-Amman Water Desalination and Conveyance project, the main contract for which was awarded to a joint venture of Orascom Construction and Vinci in January. It is due to be completed by 2029. 

    In the same market, the $1bn Al-Shidiya to Aqaba phosphate railway line is due to be awarded in December by National Infrastructure Construction Company, a subsidiary of the UAE’s Etihad Rail.

    The Iraqi projects include the $2bn, 1GW solar independent power project (IPP) in Najaf that is being developed by Saudi Arabia’s Acwa Power; and the $1.5bn first phase of the Najaf-Karbala metro, which has yet to be awarded.

    Egypt’s leading PPP project this year is the $1.5bn, 1.1GW Suez wind farm IPP, which was awarded in January to Power China. Further west, two large renewable power plants are the biggest PPP contracts in Morocco, with phases two and three of the Noor Midelt solar complex. Each phase comprises a 400MW solar power plant and a battery energy storage system, and each is valued at an estimated $1bn, with Acwa Power undertaking both projects.

    None of these are on the scale of the largest PPP projects awarded last year, however, which was led by the $14bn Southern Refineries Company’s Al-Faw Investment Refinery project in Iraq. 

    Indeed, the six largest projects awarded in the non-GCC markets last year were all in Iraq. The country’s reliable tendering of clearly bankable projects as it steadily rebuild its infrastructure after decades of violence and economic stagnation is a success story to watch – and for many countries, one to emulate.

    Region sees evolving project finance demand

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14962656/main.gif
    Dominic Dudley
  • Aldar announces new asset development plan

    28 October 2025

    Abu Dhabi-based real estate developer Aldar Properties has announced a series of major projects across the residential, commercial and logistics sectors in Abu Dhabi, with a combined gross development value of AED3.8bn ($1bn).

    In an official statement, Aldar said it will develop a new residential community in Alreeman, offering more than 2,000 rental units in the Al-Shamkha area.

    Aldar will deliver 665 residential units to the rental market on Yas Island. The new developments include a gated community offering 217 units.

    Aldar will also develop 448 new apartments on the island as an extension to Yas Residential Village.

    On the commercial front, Aldar said it will focus on developing office space in key business districts across the UAE to meet demand for Grade A office space.

    In Abu Dhabi, Aldar is currently developing Yas Business Park, an office development comprising four towers that will offer 47,500 square metres (sq m) of leasable space. The project is slated for completion in 2027. 

    In the logistics sector, Aldar said it is developing high-quality warehousing and distribution space across the UAE. Aldar added that it will expand the Abu Dhabi Business Hub by adding 175,000 sq m of gross floor area to the Musaffah site.

    Aldar will also deliver Abu Dhabi’s first Tesla Experience Centre on Yas Island. The facility will span 5,000 sq m and will include a showroom, service centre and delivery operations. 

    “Upon completion, the new residential, commercial and logistics assets will become part of Aldar Investment’s portfolio, which comprises income-generating real estate valued at AED47bn,” Aldar said in its statement.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14960800/main.gif
    Yasir Iqbal
  • Petrofac collapse could impact $5.83bn of Mena projects

    28 October 2025

     

    On 27 October, Petrofac announced that it had applied to appoint administrators, a move that has potentially put thousands of jobs at risk and increased uncertainty for projects worth billions of dollars in the Middle East and North Africa (Mena) region.

    The total value of projects awarded to Petrofac and under construction in the region is $5.83bn, according to information recorded by the regional project-tracking service MEED Projects.

    Petrofac also has bids under evaluation for 15 projects in the region worth a total of $19.28bn, according to MEED Projects data.

    Over recent years, Petrofac has aggressively sought to win new contracts in the Mena region, bidding on a range of projects in an effort to improve its financial situation.

    Some of the tender processes in which Petrofac is currently participating could ultimately be disrupted due to the company’s financial problems, especially when there is only one other bidder for the contract.

    Regional impact

    The UAE is potentially the most exposed to disruption from Petrofac filing for administration. It is executing major projects worth $2.87bn in the UAE.

    Algeria is second in the region in terms of exposure to contracts under execution, with $1.8bn in projects.

    Petrofac also has projects in Oman, Bahrain and Iraq, worth $483m, $353m and $320m, respectively.

    UAE projects under execution

    In the UAE, Petrofac has five active projects, all awarded by Abu Dhabi’s state-owned Adnoc Gas.

    The biggest of these is a $1.2bn project for the planned Das Island gas liquefaction facility, which was awarded in June this year and expected to be completed by the fourth quarter of 2027.

    The second-biggest contract that Petrofac has in the UAE is a $700m contract as part of Adnoc Gas’ project to upgrade its sales gas pipeline network across the UAE.

    The scope of the package is focused on developing a new compressor plant at the Habshan gas compressor facility.

    This contract was awarded in June 2023 and was previously expected to be completed before the end of next year.

    The other significant contracts that Petrofac has in the UAE include a $615m contract for a carbon capture, utilisation and storage (CCUS) facility at the Habshan site, as well as a $335m contract to upgrade the Habshan gas processing complex.

    Adnoc Gas awarded the CCUS contract in October 2023, and the upgrade contract was awarded in January this year.

    In addition to the projects Petrofac has won in the UAE, it has bids currently under evaluation worth $6.6bn in the country.

    Petrofac in Algeria

    Petrofac’s largest ongoing project in the Mena region is the $1.5bn project that it is executing to develop a major petrochemicals project in Algeria.

    The Scotland-based company is executing the project in partnership with China Huanqiu Contracting & Engineering Corporation (HQCEC) in Algeria’s Arzew region.

    Petrofac and HQCEC signed the engineering, procurement and construction (EPC) contract for the Algerian petrochemicals project in June 2023.

    HQCEC is a subsidiary of China National Petroleum Corporation.

    In July 2024, MEED reported that concerns about the project’s future were increasing due to Petrofac’s financial difficulties.

    The project is being developed in the Arzew Industrial Zone, west of Algiers, and the contract was signed with STEP Polymers, a wholly owned subsidiary of Algeria’s national oil company, Sonatrach.

    When the contract was signed, Petrofac said that its portion of the project was valued at about $1bn.

    The project’s scope includes the design and construction of two major integrated processing units.

    It includes the delivery of a new propane dehydrogenation unit and polypropylene production unit, as well as associated utilities and infrastructure for the site.

    It is expected to produce 550,000 tonnes of polypropylene a year.

    Petrofac has been active in Algeria since 1997, when it opened its first office in Algiers. The company has since developed some of the country’s most significant oil and gas assets.

    On top of the projects under execution in Algeria, Petrofac has bids under evaluation for projects worth $7.19bn in the country.

    Petrofac in Oman, Bahrain and Iraq

    Petrofac is working on a range of strategic upstream projects across Oman, Bahrain and Iraq.

    These contracts include a $370m project to expand the central processing facility (CPF) at Iraq’s Majnoon field.

    In August this year, MEED reported that Petrofac was pushing to complete the project contract.

    The EPC contract for the project was awarded to Petrofac by Basra Oil Company (BOC) in 2018.

    Originally, the contract had a 34-month time period, but, like many other projects awarded at a similar time, the project was delayed due to complications related to the Covid-19 pandemic.

    In August, MEED reported that the final part of the project that needed to be addressed was an issue relating to a single unit of the expansion project.

    The oil processing trains were mechanically complete in October 2022 and were ready for startup in late 2023.

    The facility then started operating in 2024. However, due to issues related to product specifications, it was taken offline.

    Majnoon is Iraq’s fourth-biggest oil field and is estimated to contain 12.6 billion barrels of oil.

    Petrofac does not currently have any bids under evaluation in Iraq or Oman, but it has submitted bids for projects worth $900m in Bahrain.

    Over recent years, Petrofac has been attempting to expand in Kuwait, Saudi Arabia and Libya.

    In these countries, it currently has bids under evaluation for projects worth a total of $4.63bn.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14960597/main5727.gif
    Wil Crisp
  • Petrofac files for administration

    28 October 2025

    The UK-based engineering company Petrofac, which is active across much of the Middle East and North Africa (Mena) region, has filed for administration amid escalating financial challenges.

    In a statement, the company said that its directors had “applied to the High Court of England and Wales to appoint administrators”.

    The statement added: “This is a targeted administration of the group’s ultimate holding company only.”

    Petrofac is actively working on projects in the UAE, Algeria, Kuwait and Bahrain. Projects in the UAE include an engineering, procurement and construction management contract awarded by Adnoc Gas in June.

    The company’s collapse followed the termination of an offshore electricity transmission contract by Netherlands-based TenneT, derailing a restructuring plan.

    The group’s operations will continue to trade, and options for alternative restructuring, as well as potential solutions such as mergers or acquisitions, are being explored, the company said.

    It added: “When appointed, administrators will work alongside executive management to preserve value, operational capability and ongoing delivery across the group’s operating and trading entities.”

    Petrofac has suffered from high debt levels for several years and was negatively impacted by shutdowns during the Covid-19 pandemic.

    Its financial problems led to the suspension of its shares from the London Stock Exchange in May.

    Petrofac collapse could impact $5.83bn of Mena projects

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14960595/main.jpg
    Wil Crisp