meed-logo

line1 line2 line3
SIGN IN / REGISTER

Offshore spending to remain robust in 2024

27 February 2024

 

This report also includes: Aramco continues its hunt for hydrocarbons

Spending on offshore oil and gas projects in the Middle East and North Africa (Mena) region reached a 10-year high in 2023. Regional hydrocarbons producers collectively awarded $17.5bn-worth of contracts, also making last year one of the best on record for capital expenditure (capex) on offshore oil and gas projects.

The robust spending was facilitated by a steady oil price environment, with Brent crude averaging about $82 a barrel, and by Mena state enterprises’ pursuit of strategic oil and gas production potential goals set by their respective governments.

The UAE’s Abu Dhabi National Oil Company (Adnoc) emerged as the biggest spender on offshore projects in the region last year. It awarded an estimated $17bn-worth of contracts for engineering, procurement and construction (EPC) works on its Hail and Ghasha sour gas development project.

The $8.2bn contract that Adnoc awarded to a consortium of Abu Dhabi’s NMDC Energy and Italian contractor Saipem for offshore EPC works on the Hail and Ghasha project is the single-largest offshore contract to have ever been awarded in the UAE. The package includes EPC work on offshore facilities including those on artificial islands, as well as subsea pipelines.

Aramco offshore capex

Saudi Aramco was the second-highest regional offshore spender. In 2023, the company awarded $5.5bn-worth of offshore engineering, procurement, construction and installation (EPCI) contracts to entities in its Long-Term Agreement (LTA) pool of offshore contractors.

A consortium of Indian contractor Larsen & Toubro Energy Hydrocarbon (LTEH) and UK-based Subsea7 won seven offshore EPCI contracts from Aramco estimated to be worth nearly $2bn.

LTEH/Subsea7 won tender numbers 98, 120 and 121 in Aramco’s Contracts Release & Purchase Order (CRPO) system, which cover EPCI work on Saudi Arabia’s Zuluf, Hasbah and Manifa offshore oil and gas fields. The combined value of the three CRPOs, which were awarded in March 2023, is estimated to be $1bn.

In April, LTEH/Subsea7 won CRPOs 117, 118 and 119, which cover EPCI work on Saudi Arabia’s Marjan offshore oil and gas field development. The three tenders are estimated to be worth over $900m.

The LTEH/Subsea7 consortium is also understood to have secured the contract for CRPO 97, which relates to EPCI work on several units at the Abu Safah field.

Italian contractor Saipem confirmed in early April that it had won CRPO 96, estimated to have a value of $120m. The scope of work on the tender covers the EPCI of one platform topside and the associated subsea flexible, umbilical and cable systems at the Abu Safah and Safaniya fields.

Also in April, China Offshore Oil Engineering Company won CRPO 122, estimated to be worth $255m, covering the installation of 13 jackets at the Safaniya field.

Saipem also won CRPO 124, a contract that is part of the third gas development phase of the Marjan hydrocarbons field.

Lamprell announced that it had also won a pair of offshore contracts – CRPOs 125 and 126 – with a combined estimated value of more than $400m.

Meanwhile, NMDC Energy confirmed it had been awarded CRPOs 136 and 137 by Aramco, which are worth a total of $1.3bn, and Lamprell won CRPO 135 at an estimated $390m. These three tenders cover the EPCI work on several structures at the Zuluf offshore oil and gas field development.

In December, Lamprell won CRPO 141, an estimated $20m-$25m contract for EPCI work on one jacket at the Zuluf field.

More spending ahead

Mena oil and gas producers are expected to maintain a high level of spending on offshore projects in 2024, with Aramco likely to lead the pack.

Most of Saudi Arabia’s oil and gas production comes from its offshore fields, such as Abu Safah, Arabiyah, Berri, Hasbah, Karan, Manifa, Marjan, Ribyan, Safaniya and Zuluf. 

Aramco aims to maintain and gradually increase production from these fields, some of which are mature. In order to do this, the company must continue to invest in upgrading and modifying existing infrastructure at these fields and installing new structures.

Aramco is evaluating bids that it received in September for 10 offshore tenders – CRPOs 104 to 113 – which entail EPCI work on several structures at the Safaniya field, which is believed to be the world’s largest oil field. These contracts are estimated to be worth billions of dollars.

Moreover, Aramco has also received bids for two large CRPO tenders – numbers 134 and 127 – that are estimated to be worth a combined $3.8bn.

LTA contractors are also due to submit bids for a dozen new tenders in February. Aramco is expected to award contracts for most of these CRPOs in Q1, kicking off another year of significant spending on offshore oil and gas projects.

Separately, in the 5,770 square-kilometre Saudi-Kuwait Neutral Zone, the joint venture of Saudi Aramco and Kuwait Petroleum Corporation (KPC) is making progress with its plans to develop gas from the disputed Dorra offshore field. 

Aramco and KPC selected France’s Technip Energies to carry out pre-front-end engineering and design (pre-feed) and feed work on the project to develop the field.

The two sides expect to produce about 1 billion cubic feet a day of gas from the Dorra field and have agreed to split the output equally. If Saudi Arabia and Kuwait are able to resolve their differences with Iran over the development of the asset, Aramco and KPC could award an estimated $5bn-worth of EPC contracts for the Dorra gas field development by the end of this year.

Further regional spending

Adnoc is also in line to award EPC contracts for several major offshore schemes this year, including its project to boost output from Abu Dhabi’s Upper Zakum offshore field. The project aims to raise the production potential of Abu Dhabi’s largest offshore field – the world’s second-largest – to 1.2 million barrels a day (b/d). 

Adnoc is also expected to award EPC contracts for two projects to increase the crude output capacity of its Lower Zakum field.

In Qatar, state enterprise QatarEnergy is due to award contracts this year for the remaining packages of the second phase of its North Field Production Sustainability (NFPS) project. 

The tender for the third NFPS phase two package was released by QatarEnergy LNG last year. The work on that package – known as EPCI 3 – is estimated to be valued at about $500m and covers EPCI work on offshore riser platforms, wellhead platforms and intra-field pipelines. 

QatarEnergy LNG also issued the tender to contractors last year for the EPCI 4 package, estimated to be worth up to $4bn. The scope of work on this package covers two gas compression complexes that will weigh 25,000-35,000 tonnes, contributing to a total of 100,000 tonnes of fabrication.

Aramco continues its hunt for hydrocarbons

 

https://image.digitalinsightresearch.in/uploads/NewsArticle/11551206/main.gif
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • Contractors prepare bids for more Qiddiya infrastructure

    8 October 2026

     

    Saudi gigaproject developer Qiddiya Investment Company (QIC) has tendered a design-and-build contract covering infrastructure works at District 0 in Qiddiya City.

    The scope includes the design, supply, construction, testing, commissioning and defects liability period for Road I in District 17, Road Q in District 19 and the District 18 Ring Road.

    In total, the package covers approximately 17.4 kilometres of roads, including 1.4km of bridge structures.

    Contractors have until 14 October to submit proposals.

    Beirut-headquartered Dar Al-Handasah is the lead design consultant for districts 17 and 19, with a remit that also includes potable water and recycled water storage tanks and pumping stations.

    US-based Jacobs is the lead design consultant for the District 18 Ring Road.

    The tender is the third infrastructure package for Qiddiya’s District 0. The first two packages, tendered in March, remain under procurement, as MEED exclusively reported.

    MEED understands that bid evaluation for these packages is in its final stages and that awards are expected shortly.

    QIC is also advancing plans to develop additional assets at Qiddiya City.

    Last month, MEED exclusively reported that QIC had awarded an estimated $500m-$600m contract to build an e-games arena, known as the Fortress Arena.

    The scope of work includes the construction of an auditorium with a capacity of about 5,100 seats, as well as commercial areas, hospitality facilities and other associated infrastructure.

    The Fortress Arena is one of several major projects within the wider Qiddiya development.

    Other projects include the Dragon Ball theme park, Prince Mohammed Bin Salman Stadium, a horse-racing venue, a performing arts centre, the Speed Park, the National Tennis Centre, Six Flags Qiddiya City and Aquarabia water park.

    The project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom. According to UK analytics firm GlobalData, leisure tourism in Saudi Arabia has grown significantly in recent years.

    MEED’s October 2026 report on Saudi Arabia includes:

    > COMMENT: Saudi projects hold steady
    > GOVERNMENT: Riyadh looks to reset its regional defence outlook
    > ECONOMY: Conflict bolsters case for Saudi economic diversification
    > BANKING: Saudi lenders readjust to lower lending and deposit climate
    > UPSTREAM: Aramco upstream spending gathers pace
    > DOWNSTREAM: Sabic steps up Saudi petchems investment
    > POWER: Saudi Arabia’s power award activity slows
    > WATER: Saudi water sector hits sharp slowdown
    > CONSTRUCTION: Saudi construction defies the headwinds
    > TRANSPORT: Saudi infrastructure pushes forward amid conflict
    > DATABANK: Saudi data indicates project spending shift

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20384978/main.jpg
    Yasir Iqbal
  • Chinese contractors begin Jordan rail construction

    8 October 2026

     

    Beijing-headquartered firms China Civil Engineering Construction Corporation (CCECC) and China First Highway Engineering Company (CFHEC) have started construction work on the Aqaba-Al-Shidiyeh-Maan Railway project in Jordan.

    The 403-kilometre rail network is divided into six packages. CCECC is executing packages one to four, while CFHEC is undertaking packages five and six.

    The scope of work covers constructing railway tracks, about 55 bridges, six tunnels and related structures.

    The project aims to link Aqaba with key mining and production sites and the Maan logistics zone, establishing an integrated system for transporting bulk cargo and containers between ports, production centres and inland logistics facilities.

    The network is expected to carry around 16 million tonnes of phosphate and potash each year from production sites to Aqaba’s ports.

    In April 2025, a French-Swiss joint venture of Egis and Arx was awarded the project’s design consultancy contract.

    The estimated $2.5bn project is being developed by the Jordan-UAE Railway Company, which is jointly owned by Abu Dhabi’s L’imad Holding and Jordanian entities including the Jordan Phosphate Mines Company, the Government Investments Management Company, the Social Security Investment Fund and the Arab Potash Company.

    Jordanian and UAE officials attended a groundbreaking ceremony held earlier this week to mark the formal start of construction work.

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

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20371915/main.jpg
    Yasir Iqbal
  • Iraq discusses starting operations at $3.78bn refinery project

    8 October 2026

    Iraq’s Minister of Oil, Basem Muhammad Khudair Al-Abadi, has met with Japanese officials to discuss plans to commission the fluid catalytic cracking (FCC) unit at the Basra refinery upgrade project, according to a ministry statement.

    The meeting was attended by the Japanese Embassy’s executive officer as well as representatives from the Japan International Cooperation Agency (Jica) and Japan-based JGC, which is the main contractor on the project.

    According to the ministry, discussions focused on direct implementation steps and coordination between Iraqi authorities and the Japanese partners to bring the unit online using Japanese refining technologies.

    Iraq’s South Refineries Company (SRC) sent JGC notice of the main contract award for the Basra refinery upgrade project’s FCC package in August 2020.

    JGC was awarded the contract in consortium with South Korea’s Hyundai E&C.

    The official contract signing ceremony was held in Baghdad on 1 October 2020.

    The contract awarded to JGC, which uses the engineering, procurement, construction and commissioning model, was worth $3.78bn.

    Project delays

    The project has faced issues related to the ongoing regional conflict, which started when the US and Israel attacked Iran on 28 February.

    JGC evacuated its personnel from the site in the southern oil hub of Basra following the start of the regional war, stopping work on the project, which was in its final stages of construction.

    In August, JGC signed an agreement to restart work.

    The project will produce around 5 million litres a day of gasoline and 7 million litres a day of diesel.

    The FCC package is part of a broader project to upgrade the Basra refinery.

    Oil Ministry officials said in late 2025 that the Basra refinery upgrade project aims to slash Iraq’s fuel import bill and convert heavy refining residues into high-value petroleum products.

    The project site is located about 12 kilometres east of Iraq’s southern city of Basra.

    The wider upgrade project is installing new facilities on land adjacent to the existing Basra refinery, including a vacuum distillation unit and a diesel desulphurisation unit.

    In April 2021, France’s Axens won a contract to provide four process technologies to SRC for the Basra refinery upgrade project.

    The technologies that SRC selected are:

    • Diesel hydrotreatment unit (Prime-D)
    • Vacuum gasoil (VGO) hydrotreating unit
    • VGO fluid catalytic cracker unit
    • Oligomerisation unit (polynaphtha)

    In addition, Axens is providing catalysts and adsorbents and proprietary equipment, training and technical services.

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

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20366574/main.png
    Wil Crisp
  • Drilling resumes at Iraq’s Akkas field

    8 October 2026

     

    Drilling has resumed as part of the project to further develop Iraq’s Akkas gas field, according to industry sources.

    In March, MEED reported that development of the field had been disrupted by security issues related to the US and Israel’s war with Iran.

    Activity at the project site had been significantly reduced due to security concerns, which led to the evacuation of most non-Iraqi workers.

    Now, the project is progressing and drilling at the field is ongoing, sources said.

    One source said: “Many of the major issues that stopped drilling at the site have been dealt with in various ways, and the development of the field is proceeding.”

    Iraq held a ceremony in January to mark the start of drilling operations under the current phase of development. In July of the previous year, the Iraqi Oil Ministry announced a contract with US-based oilfield services provider SLB to develop the field. Under the agreement, SLB is drilling wells to raise initial output to 100 million cubic feet a day (cf/d), with a long-term production target of 400 million cf/d.

    The contract with SLB replaced a previous deal with Ukraine-based Ukrzemresurs, which has been terminated.

    It also covers the construction of surface infrastructure and pipelines to connect Akkas to central processing units.

    The gas produced at Akkas will fuel the Anbar combined-cycle power plant, which the Electricity Ministry is building.

    Akkas gas field development

    Located in western Anbar province, Akkas holds an estimated 5.6 trillion cubic feet of proven natural gas reserves. The field was discovered in 1992 and entered initial production in 1993, but efforts to develop it commercially have faced repeated delays.

    Development rights were originally awarded to a consortium of South Korea’s Kogas and Kazakhstan’s KazMunaiGas (KMG) during Iraq’s third licensing round in 2010. After KMG withdrew, Kogas took over as sole operator under revised contractual terms before work was subsequently halted.

    In April 2024, the Oil Ministry signed an agreement with Ukraine’s Ukrzemresurs targeting 100 million cf/d within two years and 400 million cf/d within four years. However, the deal faced strong domestic political resistance.

    Iraq’s parliamentary Oil and Gas Committee opposed the award, with committee member Ali Al-Mashkour telling Shafaq News Agency: “This contract involves a great waste of Iraq’s wealth, and there will be a waste of Iraq’s oil, and this confirms that Iraq is once again failing to choose reputable companies to work with in the most important economic field in the country.”

    He added: “We will work to uncover and expose the suspicions in this contract during the next stage, especially since this contract was made by some representatives for specific interests, which we will reveal soon with evidence.”

    The deal was subsequently terminated, paving the way for the current contract with SLB.

    The development of Akkas is central to Baghdad’s broader ambition to transition from a net gas importer into an exporter. Iraq remains heavily dependent on gas imports from Iran to meet domestic electricity demand. Both the US and Saudi Arabia have backed Iraq’s efforts to develop non-associated gas fields to reduce its economic and energy dependence on Tehran.

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

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20366494/main5816.jpg
    Wil Crisp
  • Neom extends bid deadline for Oxagon wastewater plant

    8 October 2026

     

    Neom has extended the bid submission deadline for a contract to build a wastewater treatment plant for Oxagon, its industrial cluster.

    According to a source, the new deadline is 25 October. The original deadline was 2 October.

    Enowa, Neom’s energy and water utility, is tendering the contract.

    The industrial wastewater treatment package will have an initial capacity of 35,000 cubic metres a day (cm/d), supplied in modular trains of 5,000 cm/d each. A separate sanitary wastewater treatment package will have a capacity of 1,000 cm/d.

    The contract is structured as a design-build-operate project and covers the supply, installation and commissioning of industrial and sanitary wastewater treatment packages, as well as three years of operation and maintenance.

    According to sources, local contractor Alfanar, Beijing-based PowerChina and France-based Veolia are among the companies preparing bids.

    The project follows an earlier tender for the Oxagon Village Water Recycling Plant, which was cancelled despite contractors submitting bids in 2024.

    MEED reported at the time that PowerChina, Alfanar and Cairo-headquartered Orascom had submitted bids for that project.

    The earlier scheme included truck-receiving facilities, pretreatment, biological treatment using food chain reactor technology, tertiary treatment, sludge handling and recycled-water storage.

    The latest procurement appears to take a reworked approach to wastewater treatment at Oxagon Industrial Quarter. It replaces the previous engineering, procurement and construction scheme with an interim modular and demountable facility.

    The plant is designed to provide “interim wastewater treatment” capacity for Oxagon Industrial Quarter as industrial development progresses.

    As MEED understands, this includes treatment systems that can be installed and subsequently removed or relocated as requirements at Oxagon evolve. The plant can be expanded to a maximum capacity of 45,000 cm/d.

    The tender documents also state that Neom may consider export credit agency (ECA) financing for the project. The strength of bidders’ ECA financing proposals will form part of the commercial evaluation.

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

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20347018/main.jpg
    Mark Dowdall