Meed | Offshore oil and gas sees steady capex

Offshore oil and gas sees steady capex

6 March 2025

This package also includes: Saudi Arabia to retain upstream dominance

With nearly half of the Middle East and North Africa’s (Mena) hydrocarbons reserves located in offshore basins, regional oil and gas producers spend significantly on maintaining and ramping up production levels. Offshore projects are predominantly geared at raising drilling capabilities, expanding subsea infrastructure and building floating production systems.

In addition to boosting production capacity, producers also invest in offshore projects to improve technological innovation, safety and environmental sustainability.

Capital expenditure (capex) on offshore projects in the region has remained steady in the past 10 years, with 2024 being one of the best years on record, witnessing total project spending of $23.5bn.

Qatar’s offshore goals

Qatar accounted for the largest capex on offshore oil and gas projects in Mena last year, according to data from regional projects tracker MEED Projects. The country invested more than $12bn in projects to produce incremental volumes of gas from its North Field reserve, as well to sustain its crude output.

In January 2024, North Oil Company awarded $6bn-worth of engineering, procurement and construction (EPC) contracts for a third capacity expansion project at the Al-Shaheen offshore field, to boost oil production by about 100,000 barrels a day (b/d).

North Oil Company – a joint venture of state enterprise QatarEnergy (70%) and France’s TotalEnergies (30%) – has been operating the Al-Shaheen field since July 2017. Situated 80 kilometres (km) north of Ras Laffan, at a water depth of 60 metres, Al-Shaheen holds one of the biggest oil reserves in the world and is Qatar’s largest field. It has a production potential of 300,000 b/d and accounts for about 45% of the country’s total oil production.

Meanwhile, Qatar’s North Field liquefied natural gas (LNG) expansion requires state enterprise QatarEnergy to pump large volumes of gas from the North Field offshore reserve to feed the three phases of the $30bn-plus programme. QatarEnergy has invested billions of dollars in EPC works on the two phases of the North Field Production Sustainability (NFPS) project, which aims to maintain steady gas feedstock for the North Field LNG expansion phases.

QatarEnergy LNG, a subsidiary of QatarEnergy, awarded Italy’s Saipem an order valued at $4bn for combined packages Comp3A and Comp3B of the NFPS Offshore Compression Programme’s second phase in September last year. The scope of work on the packages encompasses the engineering, procurement, construction and installation (EPCI) of six platforms, approximately 100km of 28-inch- and 24-inch-diameter corrosion-resistant alloy rigid subsea pipelines, 100km of subsea composite cables, 150km of fibre optic cables and several other subsea units.

The job for combined packages Comp3A and Comp3B is Saipem’s latest contract award as part of the NFPS scheme. The Italian contractor has secured work totalling almost $6bn on the two phases of the project.

UAE pushes offshore

With Abu Dhabi National Oil Company (Adnoc Group) striving to attain an oil production capacity of 5 million b/d by 2027 and become self-sufficient in gas production by the end of this decade, offshore oil and gas projects have received a significant boost. Adnoc was the second-highest spender on offshore projects in the region last year, as well as in the past 10 years.

In 2024, Adnoc Group subsidiary Adnoc Offshore spent about $6bn on major programmes to potentially increase oil production, such as the two phases of a project to raise output from the Upper Zakum offshore concession in Abu Dhabi to 1.2 million b/d.

In April last year, Adnoc Offshore awarded the project’s main EPC contract – known as UZ 1.2MMBD EPC-1 and worth $825m – to UAE-based Target Engineering Construction Company. In November, Target also won the contract for the project’s next phase, known as UZ 1.2MMBD EPC-2, which is understood to be valued at $500m.

Also last year, Adnoc Offshore awarded a contract, estimated to be worth $2bn, for a project to increase production from the Umm Shaif offshore oil field in Abu Dhabi.

US-based oil and gas contractor McDermott International won the main contract for the Umm Shaif Accelerated Development project, which aims to increase the Umm Shaif oil field’s output from about 275,000 b/d to 390,000 b/d by 2027, and to sustain that level of production until at least 2036.

Aramco maintains capex

In January 2024, the Saudi Energy Ministry directed Saudi Aramco to abandon its campaign to expand its oil production spare capacity from 12 million b/d to 13 million b/d by 2027. As a consequence of that government decision, Aramco cancelled the tendering process for at least 15 schemes involving the EPCI of structures at offshore oil and gas fields.

Aramco has since changed tack, spending an estimated $5bn in 2024 on offshore EPCI contracts and earning third place in the league table of highest offshore spenders in the Mena region last year.

Saipem was the biggest beneficiary of Aramco’s offshore spending, winning five of the eight Contracts Release and Purchase Orders (CRPOs) awarded last year.

In May, Aramco awarded Saipem the contract for CRPO 143, which involves replacing an oil line between the Berri and Manifa oil fields in the kingdom’s Gulf waters.

Aramco then awarded Saipem the contract for CRPO 138, which involves laying a trunkline at the Abu Safah offshore field. The contract is estimated to be worth $500m.

The Milan-listed contractor then scooped three CRPOs in August, starting with CRPOs 132 and 139, the combined value of which is estimated to be about $1bn. In September, Saipem began work on the two contracts, which involve the EPCI of structures to upgrade the Marjan, Zuluf and Safaniya offshore field developments.

Just days after the award of CRPOs 132 and 139, Aramco awarded Saipem CRPO 127, a $2bn contract that involves the EPCI of topsides and jackets for wellhead platforms, a tie-in platform jacket and topside, rigid flowlines, submarine composite cables and fibre optic cables at the Marjan oil and gas field.

In late November, Aramco awarded three further CRPOs worth more than $500m. China Offshore Oil Engineering Company won CRPOs 149 and 152, which are estimated to be valued at $30m and $250m-$300m, respectively. UK-based Subsea7 secured CRPO 153, which is understood to be valued at $200m-$250m.

Positive outlook

Regional national oil companies, particularly those in the Gulf, will seek to maintain a steady stream of investment in offshore projects this year, capitalising on the favourable oil price environment in pursuit of their goal of ramping up output potential in the mid to long term.

Their international counterparts are also likely to press ahead with projects to derive maximum value out of their offshore hydrocarbons assets in the Mena region, a large portion of which are located in prolific, shallow-water formations, making the production of oil and gas more cost-effective than in other regions.

Capex on offshore oil and gas projects this year may well match the level seen in 2024, according to MEED Projects data. In the first two months of 2025, offshore EPC contract awards reached $7.5bn.

Adnoc Offshore accounts for that entire spend through its Lower Zakum Long-Term Development Plan (LTDP-1) project. The company’s long-term objective is to raise output capacity at the Lower Zakum offshore hydrocarbons concession in Abu Dhabi to 520,000 b/d by 2027 and maintain that level until 2034.

Spanish contractor Tecnicas Reunidas and Abu Dhabi-based contractors NMDC Energy and Target Engineering Construction Company have been selceted by Adnoc Offshore to execute EPC works on the three main packages of the Lower Zakum LTDP-1 project.

Separately, Aramco is in the bid evaluation and tendering stages with a total of 12 more CRPOs. The biggest of these offshore tenders are a set of four CRPOs – numbers 145, 146, 147 and 148 – that are part of a project to further expand the Zuluf offshore field development.

These four CRPOs, estimated to be worth about $5.8bn, involve the EPCI of several structures at the Zuluf field, to maintain and raise its long-term oil and gas production potential.

In addition to CRPOs 145, 146, 147 and 148, entities in Saudi Aramco’s Long-Term Agreement (LTA) pool of offshore contractors submitted bids last year for CRPO 150 – an estimated $50m tender that involves the installation of structures at Aramco’s Northern Area Oil Operations.

In December, Aramco issued seven more CRPOs – 154, 155, 156, 157, 158, 159 and 160 – for which its LTA contractors are in the process of preparing bids. Work on these tenders relates to EPCI on structures at several offshore oil and gas fields in Saudi Arabia.

Aramco has been the biggest spender on offshore oil and gas projects in the region in the past 10 years, with capex exceeding $48.5bn. The world’s largest company is predicted to spend significantly on offshore EPC projects in 2025, too.

Saudi Arabia to retain upstream dominance

https://image.digitalinsightresearch.in/uploads/NewsArticle/13451668/main.gif

Indrajit Sen

Exclusive from Meed

Tender issued for Libyan gas project
17 September 2026
Nakheel awards $218m Dubai Islands buildings deal
17 September 2026
Aldar and Mubadala acquire Masdar City Square
17 September 2026
Dubai announces new 80km highway corridor
16 September 2026
Contractors submit Expo 2030 convention centre interest
16 September 2026

Tender issued for Libyan gas project
17 September 2026
An invitation to bid has been issued for a contract to conduct environmental assessments for the project to expand the Mellitah oil and gas complex in Libya.

The bid submission deadline is 2pm today (17 September) Libyan time.

The scope of the project includes provision of:
- An environmental baseline study (EBS)
- An environmental impact assessment (EIA)
- An environmental management plan (EMP)
The client is Mellitah Oil & Gas (MOG), which is a joint venture of Italy’s Eni and Libya’s National Oil Corporation (NOC).

MOG is based in Tripoli and operates both onshore and offshore oil and gas facilities.

The joint venture owns and operates six major oil and gas fields across the North African country.

According to the tender documents, the company that is awarded the contract will need to prepare environmental management measures in compliance with:
- Libyan environmental legislation
- Ministry of Environment requirements
- NOC environmental guidelines
- Applicable international environmental standards and best practices
The expansion of the Mellitah oil and gas complex is part of a project estimated to be worth $8bn.

The wider project is known as the Mellitah Complex Expansion & CO2 Management Integrated Development Project.

It has six main packages:
- Onshore package
- Offshore Structure A
- Offshore Structure E
- Subsea pipeline package
- Site preparation work
- Carbon capture and storage facility
Security issues and political instability have been a major problem for Libya’s oil and gas sector since the country’s civil war started in 2011.

Earlier this month, the Mellitah oil and gas complex was forced to shut down temporarily due to a protest over deteriorating public services.

The existing onshore complex includes housing, processing units, storage facilities and export facilities.

It also serves as the launch point for the Greenstream pipeline, which delivers Libyan gas directly to Italy.

The planned expansion of the complex will involve:
- Construction of a new fourth gas processing train
- Construction of a third condensate train
- Construction of a third natural gas liquids fractionation train
- Construction of a fourth sulphur recovery unit train
- Installation of a hydrogen sulphide enrichment unit
- Installation of a sulphur recovery unit
- Construction of other associated facilities
The Mellitah complex is located about 100 kilometres west of Tripoli and is a key energy facility in the west of the country.
https://image.digitalinsightresearch.in/uploads/NewsArticle/19748920/main.png

Wil Crisp

Nakheel awards $218m Dubai Islands buildings deal

17 September 2026

Register for MEED’s 14-day trial access

Dubai-based developer Nakheel, now part of Dubai Holding, has awarded a main construction contract worth more than AED800m ($218m) for phases one and three of Bay Grove Residences at Dubai Islands.

The contract was awarded to the local firm Metac General Contracting Company.

It covers the construction of 537 apartments, comprising one- to four-bedroom units, across seven residential buildings.

Phase one includes 296 units in four buildings, while phase three comprises 241 units across three buildings.

The works are scheduled for completion in late 2028.

Bay Grove Residences will ultimately comprise 1,154 homes across 15 buildings. Planning is under way for the remaining 617 homes in phases two and four, with further contract awards expected.

In August last year, Nakheel awarded a AED2.6bn ($708m) contract to Abu Dhabi-based Fibrex Contracting to build the Bay Villas project at Dubai Islands. The contract includes constructing 636 villas.

In April this year, another AED527m ($143m) contract was awarded to local firm Al-Nasr Contracting Company to construct the primary infrastructure and utilities works on Island B at the development.

The Dubai Islands development consists of five islands spanning 18.6 square kilometres. It features more than 59 kilometres (km) of waterfront and 20km of beaches, as well as parks, golf courses, promenades and cycling paths.

The offshore island project gained renewed momentum in 2022, when Nakheel unveiled a new masterplan and rebranded it as Dubai Islands.

The reclaimed islands were originally part of the Palm Deira project, which was partially completed before being put on hold in 2008.

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

Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

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

> AGENDA: Gulf nuclear revival takes shape

> MARKET FOCUS: Kuwait keeps dealmaking alive under fire

> INDUSTRY REPORT: Gas processing takes centre stage in Mena region

> INTERVIEW: Emsteel persists with business productivity and efficiency

> TUNNELS: The Gulf’s next construction boom is happening underground

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

https://image.digitalinsightresearch.in/uploads/NewsArticle/19748850/main.jpg

Yasir Iqbal

Aldar and Mubadala acquire Masdar City Square
17 September 2026

Abu Dhabi-based sovereign wealth fund Mubadala Investment Company and local developer Aldar have completed the acquisition of Masdar City Square at Masdar City, in a transaction valued at AED918m ($250m).

The deal was executed through their joint venture established in 2024.

Masdar City Square comprises more than 47,000 square metres (sq m) of net leasable area across seven office buildings.

Completed in Q1 2026, the development is 99% occupied. Tenants include Taqa, the Department of Energy, Emirates College and the Mohamed Bin Zayed University of Artificial Intelligence.

The transaction expands the joint venture’s real estate portfolio in Masdar City, which is now valued at AED4.7bn ($1.3bn).

Masdar City is one of the region’s leading hubs for clean energy, artificial intelligence, advanced research and sustainable urban development.

The joint venture acquired The Link project at Masdar City for AED654m ($178m) in April.

Comprising about 32,000 sq m of net leasable area across five buildings, The Link is fully leased to a portfolio of major tenants, including Abu Dhabi Future Energy Company (Masdar) and the Mohamed Bin Zayed University of Artificial Intelligence.

The asset includes Grade A, Leed Platinum office space, a net-zero-energy headquarters building, a multi-use hall and residential accommodation, supporting its position as a high-performing, integrated component of Masdar City.

https://image.digitalinsightresearch.in/uploads/NewsArticle/19748241/main5814.png

Yasir Iqbal
Dubai announces new 80km highway corridor
16 September 2026

Dubai has approved the construction of the new fourth corridor, a major highway programme aimed at boosting inter-emirate connectivity, increasing road capacity and easing congestion.

The corridor will extend 80 kilometres, from Al-Faya Road in Abu Dhabi to Al-Shanouf Road in Sharjah.

It will include 12 lanes, 72 bridges and 17 tunnels.

The project is expected to reduce travel times by up to 60% and serve more than 3.1 million people, while providing links to Al-Maktoum International airport and Etihad Rail.

It will have the capacity to accommodate 24,000 vehicles per hour in each direction.

The project will be delivered in two phases. The first phase, running from Al-Shanouf Road to Dubai-Al Ain Road, will be delivered at a cost of AED3.5bn ($953m).

The second phase will stretch from Dubai-Al Ain Road to Al-Faya Road in Abu Dhabi.

Hamdan bin Mohammed: In line with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum to boost investment in infrastructure, I approved the New Fourth Corridor to strengthen Dubai’s road network and enhance connectivity with the UAE’s federal road network.… pic.twitter.com/zlIyY2yKBN

— Dubai Media Office (@DXBMediaOffice) September 16, 2026

The scheme adds a fourth spine to a network that has long relied on three main corridors: the E11 (Sheikh Zayed Road/Al-Ittihad Road); the E311 (Sheikh Mohamed Bin Zayed Road) and the E611 (Emirates Road), which together carry more than 850,000 vehicles commuting between Dubai and the northern emirates daily.

That concentration has made the route one of the country’s most congested, with peak-hour bottlenecks a persistent problem for residents. The new corridor is designed to divert a significant share of that traffic onto a higher-capacity route, rather than add pressure to the existing network.

The project also aligns with the Dubai 2040 Urban Master Plan, which anticipates population growth to 5.8 million by 2040 and calls for the expansion of roads, railways, airports and ports to support that growth and reinforce Dubai’s position as a global trading hub. This is reflected in the corridor’s direct links to Al-Maktoum International airport and Etihad Rail.

https://image.digitalinsightresearch.in/uploads/NewsArticle/19725878/main.jpeg

Yasir Iqbal

Contractors submit Expo 2030 convention centre interest

16 September 2026

Register for MEED’s 14-day trial access

Expo 2030 Riyadh Company (ERC), responsible for delivering the Expo 2030 Riyadh venue, received contractor interest on 14 September for a contract to design and build a convention centre in the site's Collaboration District.

Construction is slated to begin in January 2027 and take 29 months. The development will cover a total gross external area of more than 28,000 square metres (sq m). The total programme area will be about 22,000 sq m and the gross floor area will be 17,000 sq m. The maximum height of the building will be 41.5 metres.

The venue will be laid out across two levels, with a mezzanine, roof terraces and a 4,030 sq m basement, in addition to mechanical, electrical and plumbing and back-of-house spaces.

Two flexible exhibition halls are planned, covering a combined 7,280 sq m, as well as 3,800 sq m of pre-function space, 650 sq m dedicated to meeting rooms and 2,200 sq m of outdoor exhibition space in the north and south plazas.

The appointed main contractor will assume responsibility for packages including the early works substructure and the lead design consultant's deliverables, while carrying out the full scope of superstructure, above-ground waterproofing, external facades, masonry, base build and specialised fit-outs for VVIP, VIP and visitor areas.

Further scope includes delivering comprehensive MEP services; vertical transportation; final infrastructure tie-points; public-realm hard and soft landscaping; testing, commissioning, handover documentation; and management of the defects liability period.

The expression of interest notice was floated on 13 September.

The unusually brief expression of interest deadline of just one day underscores a compressed procurement timeline.

This accelerated tender and evaluation schedule signals that project organisers are operating under time pressure to secure contractors and maintain the tight schedule required ahead of the event's opening.

ERC expects to award the formal contract by the end of this year and begin construction in January next year.

The project is due for completion in early 2030, in time for the main event in October of that year.

Site progress

Construction activity at the Expo site is accelerating, with Riyadh moving to award its first major vertical contracts and advancing infrastructure works across the programme.

Earlier this month, MEED exclusively reported that ERC has tendered a contract to deliver the Souq areas within the expo site.

These areas are divided into five precincts, with a total development area of about 300,000 sq m.

In September, Saudi Arabia’s Royal Commission for Riyadh City awarded a design-and-build contract for the construction of a new metro station catering to the Expo 2030 site.

In April, ERC awarded two contracts for the next phase of infrastructure works at the site to local firm Alyamama Company.

The scope covered the construction of road networks and infrastructure for water, sewage, electricity, telecommunications and electric vehicle (EV) charging.

These awards followed ERC’s January award of an estimated SR1bn ($267m) contract for initial infrastructure works at the site to local firm Nesma & Partners.

That scope covered about 50 kilometres of integrated infrastructure networks, including internal roads and essential utilities such as water, sewage, electrical and communications systems and EV charging stations.

The masterplan covers 6 square kilometres, making it one of the largest sites ever designated for a World Expo event. Situated north of the Saudi capital, the site will be located near the future King Salman International airport and will provide direct access to landmarks within Riyadh.

The Public Investment Fund, Saudi Arabia’s sovereign wealth vehicle, launched ERC – a wholly owned subsidiary – in June 2025 to build and operate facilities for Expo 2030.