meed-logo

line1 line2 line3
SIGN IN / REGISTER

Libya seeks insurance for $9bn gas project

13 April 2023

Mellitah Oil & Gas Company (MOG), a joint venture of Italian energy major Eni and Libya’s National Oil Corporation (NOC), has invited insurance companies to pre-qualify to bid to provide insurance for its planned Mellitah complex integrated expansion project.

The invitation to prequalify is one of several tender documents relating to the project released recently, increasing contractors' confidence that the scheme will make significant progress this year.

In its statement inviting companies to prequalify, MOG said it is seeking a “construction all risks (CAR) insurance policy for the project.

This type of insurance, also called contract works insurance or construction insurance, is a non-standard insurance policy that covers accidental physical loss or damage to a property insured during the construction period.

Usually, the policy will cover any loss or damage to the property and materials other than certain specific exclusions.

The deadline for submitting pre-qualification documents is 10 May 2023, according to the statement issued by MOG.

In January, NOC announced a partnership with Italy’s Eni for the project, which involves the development of two regions containing expected gas reserves of 6 trillion cubic feet with an estimated production capacity of 750 million cubic feet of gas per day (scf/d) for 25 years.

The deal was signed by the NOC chairman Farhat Ben Gdara and ENI chairman Claudio Descalzi.

The Italian oil and gas company said the agreement would generate between $7bn and $9bn of investment into the country’s oil and gas industry. It also said it would generate up to $13bn in net revenues for the state.

The deal was signed in Tripoli during a visit by Italy’s Prime Minister Giorgia Meloni, and it seeks to boost Libya’s gas output using offshore gas fields.

Since the deal was signed, there has been significant tendering activity by MOG.

On 12 April, the company invited contractors to pre-qualify for a project to replace the launching and receiving traps at a gas line at the Aby-Attifel Field. This invitation has a deadline of 27 April 2023.

On 5 April, MOG invited contractors to pre-qualify for a project to repair a breakwater for the company’s tugboats. This invitation has a deadline of 20 April 2023.

On 23 March, MOG invited companies to pre-qualify to provide certification and verification services and marine warranty surveyor services for Structures A and E, Mellitah Complex Expansion, and the Carbon Dioxide Management Integrated Development Project.

The deadline for submitting pre-qualification documents for this tender is 24 April 2023.

Commenting on the recent statements by MOG, one industry source said: “It is very encouraging to see tendering activity increasing at MOG.

“It sends a signal to stakeholders that this strategic project is going to make progress.”

In November last year, MEED revealed that the prequalification process for bidders on the main packages of the planned Mellitah complex integrated expansion project had been completed. The front-end engineering and design (feed) was completed in early 2022.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10752682/main.jpg
Wil Crisp

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

Click here to register
Exclusive from Meed
Related Articles
  • Wood leadership change holds promise for future

    20 October 2025

    Commentary
    Indrajit Sen
    Oil & gas editor

    UK energy engineering consultancy Wood Group’s announcement of a new CEO taking charge later this year is a positive signal, indicating the company is positioning itself for the future.

    The announcement also suggests that the proposed takeover of Wood by Dubai-based Dar Al-Handasah Consultants Shair & Partners Holdings (Sidara) is nearly a done deal. Wood’s board has already accepted a $292m conditional takeover bid from Sidara, with a shareholder vote scheduled for 12 November expected to be a formality.

    New ownership would naturally initiate a strategic reset and establish new priorities and goals. Iain Torrens, currently Wood’s interim group chief financial officer, will take over as CEO from Ken Gilmartin and lead the company towards these new goals.

    Despite financial difficulties in recent years, Wood has been largely successful in winning key consultancy and engineering contracts on critical oil and gas projects in the Middle East and North Africa (Mena) region. This year alone, the company has secured project contracts in Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, as well as in other international markets.

    Wood’s track record of delivering major Mena energy projects, combined with its strong regional presence, is the key factor that attracted Sidara, and the reason it has been pursuing an acquisition for the past two years.

    In addition to the takeover bid, Sidara has offered to assume $1.6bn of Wood’s debt and inject $450m in cash into the company, demonstrating its confidence in Wood’s capabilities.

    With a new owner committed to addressing the company’s financial challenges and a new CEO preparing to take the helm, Wood appears poised to enter a period of renewed stability and growth.

     Wood takeover could boost Sidara profits

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14906715/main.gif
    Indrajit Sen
  • Chinese firm wins Emaar Address Zabeel contract

    17 October 2025

    Register for MEED’s 14-day trial access 

    Beijing-headquartered China State Construction Engineering Corporation has been awarded a contract by UAE-based developer Emaar Properties to build a multi-tower complex in Dubai’s Zabeel area called Address Residences Zabeel.

    The development will comprise four towers offering more than 1,700 one- to four-bedroom residential units, 2,600 square metres of retail space and parking for 2,000 cars. The towers will be 50, 58, 52 and 54 storeys high.

    The project is expected to be completed in 2027.

    The latest contract award from Emaar follows the start of construction activity at the Dubai Square mall, which will be connected to the upcoming Dubai Creek Harbour tower within Emaar's Dubai Creek Harbour development.

    MEED recently reported that Dubai-based contractor Dutco Construction had started mobilising for the main works on the project.

    Dubai’s heightened real estate activity has led to record-breaking announcements from several UAE-based real estate firms. 

    In February this year, Emaar reported a total revenue of AED19.1bn ($5.2bn) in 2024, a 61% increase from 2023. It said it recorded a net profit before tax of about AED10.2bn ($2.8bn), a 20% rise compared to 2023.

    According to data published earlier this year by the Emirates News Agency (Wam), the total value of real estate transactions in the UAE reached AED893bn, with more than 331,300 transactions recorded last year.

    UK analytics firm GlobalData forecasts that the UAE construction industry will register an annual growth of 3.9% in 2025-27, supported by investments in infrastructure, renewable energy, oil and gas, housing, industrial and tourism projects.

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

    Private sector takes on expanded role; Riyadh shifts towards strategic expenditure; MEED’s 2025 power developer ranking

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

    > AGENDA 1: A new dawn for PPPs
    To see previous issues of MEED Business Review, please click here

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14892821/main.jpg
    Yasir Iqbal
  • Chinese company to build tyre plant in Morocco

    17 October 2025

    Chinese tyre manufacturer Shandong Yongsheng Rubber has launched a $675m project to build a tyre factory in Morocco.

    The plant will initially produce 6 million semi-steel radial tyres annually, with plans to gradually increase capacity to 12 million units per year, according to a company statement.

    The tyres manufactured will be primarily destined for export to European, African and American markets.

    Shandong Yongsheng Rubber also plans to capitalise on preferential tariffs offered through Morocco’s free trade agreements with numerous jurisdictions, including the European Union, the US and several West African countries, the company said.

    The factory, to be developed in Morocco’s Diouch province, will produce tyres that meet technical standards for developed markets.

    Preliminary administrative procedures, including regulatory registration, have already been completed for the project.

    Increased investment

    Chinese companies in the automotive sector have increased investments in Morocco and neighbouring Algeria in recent years.

    In August, Chinese automotive interior materials manufacturer Kuntai announced plans to establish a production facility in Morocco through its subsidiary Kuntai Hongjing.

    The project represents a total investment of RMB100m ($13.7m) and will focus on manufacturing car floor mats and carpets for vehicles.

    In March, Great Wall Motor, one of China’s top 10 car manufacturers, announced plans to build its first factory in Algeria, joining other companies in the country, including Fiat, Peugeot and Kia.

    Last November, the Algerian Ministry of Industry & Pharmaceutical Production announced that it had granted permits for six new vehicle manufacturing factories in the country.

    In March 2023, Dutch carmaker Stellantis announced plans to spend more than €200m ($213m) to manufacture several Fiat models in Algeria.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14889877/main.jpg
    Wil Crisp
  • Two cement plants to be built in Egypt

    17 October 2025

    Egypt is planning to issue two new cement plant licences before the end of the year, with the aim of cubing rising prices in the country.

    The two new licences were approved during a recent meeting between local cement producers and Kamel El-Wazir, Egypt’s minister of trade and industry, according to a news report by Asharq Business, which cited an anonymous official.

    “The two permits are expected to be released before the end of the year, with each licence including its own production line,” the official said.

    The two new plants are expected to add 1.5-2 million tonnes a year of production to Egypt’s cement output.

    The cement project approvals from Egypt’s government come amid heightened concerns about the cost of construction projects in the country.

    Importing materials and equipment for projects has become increasingly expensive over recent years due to Egypt’s currency weakening. Over the past 12 months, the price of cement has increased by almost 50%.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14889881/main2139.jpg
    Wil Crisp
  • Kuwaiti contractor submits lowest bid for oil project

    17 October 2025

    Ahmadi-based Spetco International has submitted a low bid of KD88.2m ($288.7m) for the contract to develop the planned Mutriba remote boosting facility in Kuwait.

    The project was originally tendered by Kuwait Oil Company (KOC) earlier this year, with a bid submission deadline of 29 June.

    The deadline was extended several times before three Kuwait-based companies submitted bids.

    The details of the bids submitted for the project are as follows:

    • Spetco International – KD88,209,236 ($288.7m)
    • Combined Group Contracting – KD123,000,000 ($402.5m)
    • Alghanim International General Trading & Contracting – KD129,450,000 ($423.7m)

    The project’s scope includes:

    • Development of the Mutriba oil field
    • Installation of the degassing station
    • Installation of manifolds
    • Installation of condensate facilities
    • Installation of wellhead separation units
    • Installation of the pumping system
    • Installation of wellhead facilities
    • Installation of oil and gas treatment plants
    • Installation of a natural gas liquids plant
    • Installation of a water and gas injection plant
    • Construction of associated utilities and facilities

    The onshore Mutriba oil field is located in northwest Kuwait and is being developed as part of Kuwait’s wider strategy to boost the country’s upstream capacity.

    Commercial output from Mutriba officially began on 15 June this year, after several wells were connected to KOC’s production facilities.

    The field, in a previously undeveloped part of Kuwait, covers more than 230 square kilometres and lies outside the area of fields already operated by KOC.

    In September, Kuwait’s Oil Minister Tareq Al‑Roumi said that the country’s oil production capacity had reached 3.2 million barrels a day (b/d), its highest level in more than 10 years.

    Despite the higher capacity, Kuwait says it will continue to abide by Opec+ agreements and will produce 2.559 million b/d.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14892763/main.png
    Wil Crisp