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• 
  Contractors submit bids for Adnoc Onshore field facilities project

  7 August 2026

  

   

  Contractors have submitted technical bids to Abu Dhabi National Oil Company’s onshore business (Adnoc Onshore) for a key project to build on-plot and off-plot facilities at the Rumaitha and Shanayel fields, part of the Northeast Bab cluster of oil fields in Abu Dhabi.

  The project aims to enhance and sustain oil production at the Rumaitha and Shanayel fields at a rate of 45,000 barrels a day (b/d). It forms part of Adnoc Onshore’s contribution to parent company Adnoc Group’s broader objective of increasing oil production capacity to 5 million b/d by 2027 through its Accelerated Integrated Programme 5 (AiP5). Adnoc Group currently has a production capacity of 4.85 million b/d.

  Contractors submitted technical bids for the project by the final deadline of 5 August set by Adnoc Onshore, according to sources.

  Adnoc Onshore issued the main tender for the engineering, procurement and construction (EPC) works package for the Rumaitha and Shanayel on-plot and off-plot facilities project on 19 June, MEED previously reported.

  Prior to that, Adnoc Onshore issued an expression of interest for the Rumaitha and Shanayel on-plot and off-plot facilities project in early December, with contractors submitting their responses later that month, MEED previously reported.

  The prequalification and ongoing tendering process is understood to result from Adnoc Onshore revising its strategy for executing EPC works on an earlier, larger project covering the Northeast Bab cluster, which comprises the Al-Nouf, Rumaitha and Shanayel fields.

  MEED reported in December that Adnoc Onshore cancelled an engineering, procurement and construction management (EPCm) phase it launched in 2024 for the Northeast Bab on-plot and off-plot facilities project, in favour of executing the scheme under a conventional EPC model.

  The operator awarded a contract to state-owned China Petroleum Engineering & Construction Corporation (CPECC) to carry out EPCm services for the Northeast Bab off-plot facilities package in October 2024. However, the contract was subsequently cancelled.

  Separately, Adnoc Onshore received bids during the second quarter of 2025 for the EPCm tender covering the Northeast Bab on-plot facilities package, but that procurement process was also later cancelled.

  Project scope of work

  The detailed scope of work on the Rumaitha and Shanayel on-plot and off-plot facilities project is as follows:

  On-plot facilities:

  • Oil train: One new oil train with slug catcher, two-stage separation, desalting, exchangers for crude heating and stabilisation, and all associated interconnections, utilities and civil/structural works, etc.
  • Produced water treatment (PWT): New produced water treatment package to enable 100% produced water reinjection (PWRI), including chemical dosing, tanks, pumps, all associated controls and blending with aquifer water, etc.
  • Water injection system: New water injection system, including surface water injection pumps, necessary connections and controls from produced water systems, headers, chemical dosing, power and controls, etc.
  • Gas handling and export:
    • Low-pressure gas compression system
    • Medium-pressure gas compression system
    • Gas dehydration and regeneration system
    • Export gas compression system
  • Utilities and offsites: Plant air and instrument air systems, nitrogen generation system, potable water system, vapour recovery system (liquid ejector package), fuel gas import and distribution, closed and open drain systems, hot oil heater, snuffing nitrogen package, enclosed ground flare systems (high-pressure and tank flares), etc.
  • Modifications in existing systems, including, but not limited to, installation of a slug catcher at phase-I, connectivity of gas systems, water systems, existing high-pressure compressors modifications, etc
  • Electrical, instrumentation and control, and safety: Electrical systems, instrumentation and control system (ICSS, F&G system, field instrumentation, HIPPS, etc.), substation and ITR room building, fire water system, etc.
  • Overhead line (220 kV): Installation and extension of overhead lines and 220 KV GIS compound or equivalent power distribution solutions to the central processing plant and other designated areas, as necessary.

  Off-plot facilities:

  • New gas-lifted oil producers and water injectors installation with necessary piping, controls, etc. and their connections to the new or existing clusters and pipeline networks
  • New clusters with facilities such as control panels, ITR, production and test manifolds, headers, chemical injection skids, multiphase flow meters, closed drain systems, HIPPS valves, WHCPs, pig traps, ICSS/telecom extensions, etc.
  • Modifications in existing clusters, including the addition or extension of manifolds, headers, additional pipelines with pig traps, ICSS/telecom extensions, chemical injection kids, etc.
  • Gathering and injection networks: Construction of new and modified oil gathering and water injection trunklines/laterals, pigging facilities (launchers/receivers), valve stations, block valves, corrosion protection and monitoring, and all associated equipment, etc.
  • Export gas pipelines and Adnoc Gas interface: Provision for export gas pipeline and facilities from Rumaitha central processing plant to new manifold station and from NMS to Adnoc Gas, including isolation/blowdown, etc.
  • Overhead line: Installation and extension of 33kV overhead lines to clusters, etc., as required.

  The tendering exercise for the Rumaitha and Shanayel on-plot and off-plot facilities project is taking place as Adnoc Onshore continues to make progress with EPC works on another, similar project to build off-plot facilities at the Southeast cluster of oil fields in Abu Dhabi, which is also integral to Adnoc Group’s AiP5 campaign.

  The Southeast cluster comprises the Asab, Mender, Qusahwira, Sahil and Shah fields and accounts for approximately a third of Adnoc Onshore’s oil production capacity.

  MEED previously reported that Adnoc Onshore had awarded EPC works on the Southeast off-plot facilities project to state-owned China Petroleum Engineering & Construction Corporation (CPECC), with the value of the contract estimated to be around $1.2bn.

  The overall scope of work on the Southeast off-plot facilities project includes tying in more than 150 wells across the area’s fields, upgrading remote and central degassing stations, laying more than 270 kilometres of flowlines, digitising wells for remote monitoring, and implementing artificial intelligence-driven telemetry technologies.

  MEED also recently reported that CPECC awarded subcontracts on the Southeast off-plot facilities project, in its capacity as the main EPC contractor.

  The off-plot facilities project is a component of the overall $2bn-$3bn Southeast AIP5 development, with the on-plot facilities project forming the other part of the programme.

  CPECC is also performing EPC works on the Southeast on-plot facilities project in a consortium with Greece-headquartered Archirodon. Adnoc Onshore awarded an estimated $1.5bn contract for that project to the consortium in December 2024, with EPC works scheduled for completion in 2027.

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  Indrajit Sen
• 
  Consultant progresses work on Petro Rabigh project

  7 August 2026

  

   

  Saudi Arabia's Rabigh Refining & Petrochemical Company (Petro Rabigh) is overseeing progress on a project to build additional units at its integrated refining and petrochemical complex in Rabigh, on the kingdom’s Red Sea coast.

  Petro Rabigh, which is majority-owned by Saudi Aramco, appointed Australia-headquartered Worley to provide engineering and project management consultancy (PMC) services for the project in the first quarter of this year, sources told MEED.

  The overall scope of work on the project covers the construction of the following units:

  • Light naphtha isomerisation unit
  • De-asphalting and dewaxing unit
  • Ebullated bed configuration
  • Sulphur block (SRU/ARU/SWS/SFU)
  • Sales gas allocation and pipeline construction
  • Utilities unit outside battery limit
  • Auxiliary piping modifications
  • Utility and hydrocarbon tie-ins.

  Under the contract, the consultant will perform engineering studies and PMC functions, and assist the client in developing cost estimates and project-specific execution and technical procedures, based on Aramco guidelines for both the design basis scoping paper (DBSP) stage and, subsequently, the front-end engineering and design (feed) stage.

  Petro Rabigh will draw on the consultant’s advice on design, procurement and the development of new processing technologies, including for light naphtha isomerisation; vacuum residue processing technologies such as de-asphalting and dewaxing; an ebullated-bed configuration integrated with the diesel hydrotreating section; and unconverted oil hydrotreatment.

  According to sources, Petro Rabigh issued the tender for engineering and PMC services for the additional units project on 30 May last year.

  It set an initial bid submission deadline of 29 June last year, which it then extended to 17 July and again to 24 July, with engineering firms submitting their proposals by that date, sources said.

  Following months of evaluation, discussions and negotiations with bidders, Petro Rabigh selected Worley for the contract.

  Red Sea downstream complex

  Petro Rabigh was originally established in 1989 as a basic topping refinery with crude oil processing facilities in Rabigh, along Saudi Arabia’s Red Sea coastline, about 165 kilometres to the north of Jeddah in Mecca Province.

  Saudi Aramco and Japan’s Sumitomo Chemical Company formed an equal joint venture in 2005 to transform the Petro Rabigh crude oil refining complex into an integrated refinery and petrochemicals complex, with the strategic objective of expanding Saudi Arabia’s annual production capacity of refined products and petrochemicals.

  Three years after the creation of the Petro Rabigh joint venture, the partners floated 25% of its shares in an initial public offering on the Saudi Stock Exchange (Tadawul) in 2008, following which Aramco and Sumitomo Chemical each held 37.5% shares in Petro Rabigh, with the remaining shares listing on the Tadawul.

  In October last year, however, Aramco completed the acquisition of an additional 22.5% stake in Petro Rabigh from Sumitomo Chemical. Following the completion of the transaction, valued at $702m or SR7 a share, Aramco became the majority shareholder in Petro Rabigh, with an equity stake of 60%, while Sumitomo retains an interest of 15%. The remaining 25% shares of Petro Rabigh continue to trade on the Tadawul.

  ALSO READ: Petro Rabigh and Indian firm to study joint project investment

  Following the formation of the Petro Rabigh joint venture in 2005, Aramco and Sumitomo Chemical launched the expansion of the refining facility into an integrated refining and petrochemicals complex in 2006, investing $9.8bn in the project, 60% of which was secured through external financing. Engineering, procurement and construction works on phase one were completed in 2009, with the integrated downstream complex entering operations in November of that year.

  The Petro Rabigh downstream complex consists of a topping refinery that has a 340,000 barrel-a-day (b/d) crude distillation unit, a 47,000 b/d hydrotreater, a 12 million cubic-feet-a-day hydrogen plant, a 75,000 b/d naphtha merox unit and a 60,000 b/d kerosene merox unit, along with supporting utilities, product tankage and a marine terminal.

  Aramco and Sumitomo Chemical initiated Petro Rabigh’s phase two expansion project, valued at $8bn, in 2014. The second expansion phase was commissioned in 2018 and added 15 chemicals plants to the Petro Rabigh complex, raising the facility’s total production capacity to 18.4 million tonnes a year (t/y) of petroleum-based products.  

  The expansion also increased Petro Rabigh’s capacity to process an additional 30 million cubic feet a year of ethane into 2.4 million t/y of ethylene and propylene-based derivatives, and achieved a naphtha output of 3 million t/y.

  Expansion of the main existing chemicals plant and the establishment of a clean fuels complex comprising polyether polyols, naphtha treating and sulphur recovery units were also part of the phase two project.

  In addition to awarding Worley the engineering and PMC services contract this year, Petro Rabigh awarded US-based KBR a 10-year contract in February this year to provide maintenance services covering the company’s polymer plants in Rabigh, on the kingdom’s Red Sea coast.

  Work on the operations and maintenance contract will be executed by KBR’s  business line, which operates under the Houston-headquartered firm’s Technology Solutions portfolio, sources told MEED.

  Prior to this contract, in March 2024, Petro Rabigh awarded KBR a similar five-year asset condition monitoring programme contract. As part of that job, KBR is to provide predictive maintenance services at Petro Rabigh’s main plant.

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  Indrajit Sen
• 
  Seven opens entertainment complex in Abha

  7 August 2026

  Saudi Entertainment Ventures (Seven) has opened its integrated recreational complex in Abha, the first of 14 entertainment destinations the company plans to develop across the kingdom.

  Local contractor Modern Building Leaders (MBL) built the complex under an estimated SR950m ($253m) contract awarded in December 2022. The scheme has a built-up area of more than 70,000 square metres and features go-karting, edutainment, bowling and indoor golf facilities.

  Seven is a wholly owned subsidiary of Qiddiya Investment Company. The Abha complex is the first Seven project to be completed, and supports the Public Investment Fund’s strategy to develop the entertainment and sports sector in line with Saudi Vision 2030.

  The destination is located within the Abha International airport cluster and connects the airport with the region’s cultural, tourism and entertainment sites. Entertainment experiences at the complex include Formula E Karting alongside Seven-developed concepts such as Kawaken, GolFi, Cyber Bowling and Scene Cinema.

  Consultants on the project include Dar Engineering and Lebanon’s Khatib & Alami, with the UK’s Mace International as project management consultant, according to regional projects tracker MEED Projects.

  Seven plans to invest SR50bn ($13.3bn) in developing 21 integrated entertainment destinations across 14 cities in the kingdom as Riyadh pursues its strategy to diversify away from hydrocarbons, create jobs and improve quality of life.

  ---

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

  Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

  Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

  > AGENDA: Expo 2030 Riyadh construction gathers pace > WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034 > MARKET FOCUS: Maghreb fortunes diverge > INDUSTRY REPORT: GCC banks prove resilient amid turmoil > LEADERSHIP: Private capital and the GCC infrastructure inflection > PORTS: Geopolitical risk shapes $513bn of global ports projects > INTERVIEW: Developers look beyond standalone solar

  To see previous issues of MEED Business Review, please click here

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  Colin Foreman
• 
  Necessity is the mother of invention for Kuwaiti lenders

  6 August 2026

  

   

  If 2025 was marked by the advent of reform in the shape of public debt and mortgage laws, 2026 has been a year of resilience in the face of sharp shifts in the operating environment.

  Like their peers across the GCC, Kuwait’s banks have stood out this year for their crisis preparedness. With Kuwait facing sustained attacks from Iran – testing a hydrocarbons-based economy that is uniquely vulnerable to such shocks – banks are focusing on maintaining durability under especially challenging conditions.

  The sector entered 2026 in a relatively strong position. As of March 2026 – one month into the US-Israeli campaign against Iran – the non-performing loan (NPL) ratio stood at a creditable 1.7%. A capital adequacy ratio of 17.5% in Q1 is another sign of resilience, underscoring banks’ capacity to absorb unexpected losses.

  Kuwaiti banks’ reserve coverage stands at 223% of problem loans, one of the highest levels of loan-loss allowance coverage for Stage 3 exposures in the region. This is in large part due to the Central Bank of Kuwait’s (CBK’s) strict regulatory requirements.

  Overall, banks have strong capitalisation, solid liquidity, high loan loss-absorption buffers and sound asset quality. That mix provides confidence that the banking sector can continue to support the economy in difficult circumstances.

  Kuwait has retained significant sovereign financial strength. There are large fiscal buffers, there is the existential hydrocarbon wealth, and there is a long track record of supporting the banking sector when required
  Abdulla Al-Hammadi, Moody’s

  Bank dominance

  Banks also remain central to Kuwait’s economy. As the Washington-based IMF has noted, financial intermediation is overwhelmingly bank-based, with domestic currency bond and equity markets underdeveloped by emerging-market standards.

  “Kuwait has retained significant sovereign financial strength. There are large fiscal buffers, there is the existential hydrocarbon wealth, and there is a long track record of supporting the banking sector when required,” says Abdulla Al-Hammadi, an analyst at Moody’s.

  Bank assets reached 250% of GDP in 2024 – among the highest in the GCC, according to the IMF. This is supported by strong balance sheets, high liquidity and a large Islamic finance segment. Kuwait Finance House, Boubyan Bank, Kuwait International Bank and Warba Bank – the four main Islamic lenders – together account for KD53bn ($172bn), or 51% of total banking sector assets.

  Early 2026 performance metrics show a solid rise in assets at listed Kuwaiti banks, growing by 12.5% year-on-year to KD130.82bn ($366.4bn) in Q1. Net profits increased by a smaller margin, 1.1%, to KD382.96m ($1.07bn) in the same quarter, according to KPMG.

  National Bank of Kuwait (NBK), the largest bank by assets, reported net profit of KD324.8m ($1.06bn) for the first half of 2026, a 3% year-on-year increase. Despite the impact of the conflict, the second quarter saw profits rise 4.5% to KD181.2m ($588.4m).

  Ratings support

  Ratings agencies have retained their confidence in Kuwaiti banks. In a rating action announced on 18 June, Moody’s affirmed the long-term deposit ratings of eight Kuwaiti banks, reflecting their resilient credit profiles supported by strong capital, provisioning reserves and liquidity buffers.

  Under Moody’s central scenario – which assumes a prolonged disruption to the Strait of Hormuz through autumn and persistently high and volatile energy prices – the expected deterioration in operating conditions remains within the absorption capacity of these banks’ baseline credit assessments.

  Kuwait’s strong sovereign ratings and high level of system support provide additional comfort. Government financial assets are estimated at more than 475% of GDP, while the debt burden was around 19% of GDP as of March 2026 – factors that underpin the government’s capacity to support the banking system in the event of stress.

  Nor is Kuwait at particular risk of external funding outflows. According to S&P Global, Kuwait has a comfortable net external asset position that mitigates such risks.

  “Depositor confidence has remained stable. The banks continue to access international interbank markets,” says Al-Hammadi. “Their liquidity buffers will support their ability to continue lending and absorb any potential shock.”

  Regulatory response

  Regulatory supervision is another core strength. The CBK has a reputation for hands-on oversight of the banking sector. In March, it rolled out a stimulus package to encourage banks to lend as the Iran conflict buffeted the region. The measures included a temporary easing of macroprudential requirements, with the minimum liquidity coverage ratio and net stable funding ratio reduced from 100% to 80%. The minimum regulatory ratio was cut from 18% to 15%.

  These measures appear to have had the intended effect. According to NBK’s research arm, domestic credit growth picked up in May, rising by half a percentage point over the previous month to 6.7% in year-on-year terms. Signs of stronger business lending, with gains across services, trade and real estate, will have been particularly welcome.

  “Many Kuwaiti banks have concentrated their lending activity around the Kuwait economy,” says Al-Hammadi. “Overall GDP is under pressure given recent developments in the hydrocarbon sector. It’s still an oil-driven economy, but if you look at non-oil activity, it has continued to benefit from government investment.”

  Credit growth will be supported by improving economic sentiment, so long as deposit growth keeps pace. However, lending is unlikely to match previous years’ levels.

  “Our expectation is that lending growth will drop, given what is happening in the macroeconomic environment. Growth could be a bit slower compared to previous years,” says Al-Hammadi.

  The CBK has urged local banks to be flexible towards customers, although anecdotal evidence suggests greater caution, including tighter personal loan limits.

  Reforms, including the mortgage and housing law, provide an additional opportunity for Kuwaiti banks to support broader growth. The Real Estate Financing Law permits banks to offer supported loans under which the state covers interest payments via the Kuwait Credit Bank, while borrowers repay only the principal.

  Although hydrocarbon-sector growth will be negatively impacted by events in the Gulf this year, banks should be able to secure growth by focusing on the non-hydrocarbon economy.

  “We see growth driven by the non-oil economy and some of the project finance opportunities, which will benefit from the banking sector’s capital and liquidity position. It places the banks in the right place to grab this opportunity,” says Al-Hammadi.

  ---

  MEED’s September 2026 report on Kuwait also includes:

  > OIL & GAS: Regional war to have lasting impact on Kuwaiti oil sector
  > CONSTRUCTION: Kuwait construction holds up despite regional strife

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  James Gavin
• 
  Abu Dhabi firm invests in Petrofac

  6 August 2026

  Oil and gas industry contractor Petrofac has announced that Abu Dhabi-based, privately held investment company Al-Mazrui International has completed an investment in Petrofac HoldCo, the holding company of UAE-based Petrofac Emirates.

  Following the investment, Al-Mazrui has joined the existing consortium of investors led by New York-headquartered hedge fund Mason Capital Management and UK-based asset manager Pearlstone Alternative, which acquired Petrofac Emirates in late May.

  “The investment strengthens Petrofac’s long-term ownership structure and reflects continued confidence in the business strategy, capabilities and growth prospects. Al-Mazrui brings significant regional expertise and a strong track record of investing in businesses that support the UAE’s industrial and energy sectors,” Petrofac said in a statement on 6 August. 

  “The addition of Mazrui as a strategic shareholder reinforces Petrofac’s commitment to supporting customers across the UAE and the wider region and positions the business for its next phase of growth,” the company said without disclosing the value of Al-Mazrui’s investment or the terms of the deal.

  “The transaction has now completed, and Petrofac looks forward to working closely with Al-Mazrui and its existing shareholders to build on its strong market position,” it added.

  Petrofac has turned a corner this year after completing the sale of its Asset Solutions business in April and its UAE-based unit, Petrofac Emirates, in late May – marking the end of a tumultuous period for the UK-headquartered company that began at least as early as 2019.

  Following its takeover by the Mason Capital-led consortium, Petrofac formed a new board of directors in July.

  The board will be supported by CEO Tareq Kawash and chief financial officer Suresh Swaminathan. It will be chaired by Michael Martino, founder and principal of Mason Capital Management, who brings nearly 30 years of capital markets and restructuring experience and currently serves as executive chairman of ATS Corporation and CB&I Holding, as well as a director at McDermott International.

  The non-executive directors are Samuel Read, a Mason Capital partner focused on restructurings and special situations and formerly with Carlyle’s distressed investing team; Cesar Canals, a global energy and engineering leader and former CEO and president of CB&I; David Davies, a former chief financial officer at Austria’s OMV and a deputy chairman with audit committee and public-company board experience, including prior service on Petrofac’s board; and Farhan Mujib, an engineering, procurement and construction and international energy projects executive, formerly president and representative director at JGC Corporation, with previous senior roles at KBR.

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  Indrajit Sen