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
  • Stability holds as project work continues

    14 October 2026

     

    When Dean McGrail describes the performance of the region’s construction market, he keeps returning to a single word: “stable”.

    After initial concerns that the market would experience a sharp downturn and project cancellations following the onset of conflict in the region, regional president McGrail says WSP has yet to see a single major contract cancelled across its regional portfolio.

    “We have seen some projects re-evaluated – questions around whether the mix between residential and commercial is right, and whether it should be luxury residential,” he says. “But as of today, we have not seen any projects cancelled, which is a real sign of resilience in the market.”

    Under the surface

    That resilience does not mean nothing has changed. McGrail is careful to separate re-evaluation from cancellation. Projects already on site and selling into the market are pressing ahead. It is schemes that have not yet been released for off-plan sales that are being paused and reconsidered.

    “None of the projects we are currently involved in have been put on hold or suspended,” he says. “It is more re-evaluation. Some of that is investor sentiment, but some of it is materials and logistics as well, which people do not necessarily consider.”

    Logistics, in particular, is a pressure that rarely makes the headlines. According to McGrail, shipping disruption has complicated the delivery of heavy equipment on certain schemes. “If we have big pieces of kit coming in – chillers or turbines for a power station – that becomes challenging,” he says.

    The bigger question is viability. And while rising material costs, set against softening sales prices, are forcing developers to reappraise the numbers, for now the balance sits firmly on the side of continuity. McGrail estimates that revalidation and feasibility work accounts for less than 3% of the firm’s current order book, with the remainder progressing as normal.

    “Requests for proposals have not slowed down across any of our disciplines or business units,” he says. “We are definitely seeing an uptick in infrastructure.”

    Infrastructure pivot

    That focus points to where McGrail expects the next few years of growth to come from. Rail sits at the centre of the UAE story, alongside road upgrades and other major developments in Abu Dhabi. In Dubai, the clearest signal of intent is the expansion of Al-Maktoum International airport.

    “Al-Maktoum is a really good indicator of the future direction of travel,” he says. “That is not a project that is slowing down. There has been a commitment to Emirates that it will move there, and it is still progressing.”

    The scale of the airport – and the challenge of relocating an airline the size of Emirates in one move – raises the question of how it will be funded. Here, McGrail returns to the theme of stability and to the mechanism that underpins it.

    “One of the beauties of this region is the ability of government to step in,” he says. “They can fund it. If the private sector does start to suffer, that is the backstop. They push money into infrastructure – roads, rail, airports – which keeps our industry moving.”

    Saudi reset

    In Saudi Arabia, the recalibration story predates the conflict, and McGrail says the change should be read as a strength rather than a retreat.

    “I am positive,” he says. “When the reprioritisation started at the beginning of 2025, having lived through the global financial crisis here, I saw the decision to stop, re-evaluate and reprioritise expenditure as a positive. When Vision 2030 was set, Saudi Arabia had not won Expo or the World Cup, so the reprioritisation was the right thing to do. Saudi Arabia will come out of it stronger. Short-term pain, long-term gain.”

    The nature of the work is shifting with the budget. McGrail sees the kingdom moving towards a model long familiar in the UAE, in which core infrastructure and a handful of landmark buildings are delivered first, before surrounding plots are carved up and sold on.

    “You establish a few key iconic buildings, then the plots on the outside are carved up and they look for external investment to come in and develop them,” he says. “It is no different from Downtown Dubai, where Emaar built the Burj Khalifa and a few buildings, then started selling plots.”

    That approach is increasingly tied to public-private partnerships (PPPs), although McGrail is measured on how far the model will stretch.

    “PPP is definitely becoming more prevalent on some of the larger infrastructure projects, though still not as significant as it was made out to be when they first started talking about it,” he says. He sees industrials, mining, healthcare and schools as a natural fit, rather than PPP becoming a blanket procurement route.

    Aviation is another priority. WSP was recently appointed to the rehabilitation of the existing terminal at Jeddah’s King Abdulaziz International airport, alongside a new terminal. It also recently secured a role on the expansion and upgrade of King Fahd International airport in Dammam.

    “Aviation is definitely a key area of focus for us as we head into the next 12, 24, 36 months,” McGrail says.

    Beyond the two dominant markets, McGrail sees pockets of activity but no challenge to the balance of the portfolio. In Qatar, he points to a recovery taking shape towards the end of last year, with WSP active on the Qatar Children’s Museum and continuing its long-running work with the Public Works Authority (Ashghal). Oman is generating masterplanning work, including reviving the Blue City scheme.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20545689/main.gif
    Colin Foreman
  • Gas-fired projects drive resilience in UAE power sector

    14 October 2026

     

    The $3bn Taweelah C combined-cycle gas turbine (CCGT) project has been the UAE power sector’s standout contract award this year, accounting for the majority of the $4.17bn in awards as of early September.

    The total is well below the record $12.02bn awarded in 2025, when Abu Dhabi’s $6bn round-the-clock solar photovoltaic (PV) and battery energy storage system (bess) project lifted the market to record levels. However, 2026 remains broadly consistent with recent years, compared with $5.93bn in 2024 and $3.05bn in 2023.

    According to MEED Projects, generation accounted for $3.06bn across three awards, while transmission contracts totalled $1.11bn.

    Gas-fired focus

    Emirates Water & Electricity Company (Ewec) signed the power-purchase agreement (PPA) for Taweelah C in June with a consortium comprising Abu Dhabi National Energy Company (Taqa), Saudi Arabia’s Al-Jomaih Energy & Water Company and Singapore’s Sembcorp Industries.

    The scale of the 2.5GW independent power producer (IPP) provides a useful lens through which to view the wider market. Although the UAE continues to expand solar generation and battery storage, it is still investing heavily in flexible thermal capacity to support rising electricity demand and a grid with significant renewable generation.

    Major gas-fired opportunities are also moving into the Northern Emirates, with state utility Etihad Water & Electricity (EtihadWE) preparing to receive offers from five contractor groups for the 2.6GW Al-Zawra CCGT project in Ajman.

    The project follows the retirement of EtihadWE’s older 200MW Al-Zawra gas plant in 2023. With Ewec acting as offtaker, the scheme also points to a wider role for EtihadWE in developing large-scale generation.

    It is understood that the Ajman project will be the first of at least three planned power plant projects procured by the utility under a new long-term roadmap for future projects across both power and water.

    Abu Dhabi’s 3.3GW Al-Nouf IPP is another major gas-fired plant moving towards execution. Japan’s Sumitomo Corporation is expected to formally sign the PPA by the end of the year, while the joint venture of Spain’s Tecnicas Reunidas and Egypt’s Orascom Construction is also set to be confirmed as the engineering, procurement and construction (EPC) contractor.

    To put this into context, the deal would make 2026 the second most valuable year for power sector investment on record, eclipsing both 2017 and 2018, when contract awards in the UAE reached $7.39bn and $7.27bn, respectively.

    Solar and storage

    The UAE’s renewable procurement is increasingly combining solar generation with storage to provide electricity beyond daylight hours.

    Dubai Electricity & Water Authority (Dewa) is preparing to award the seventh phase of the Mohammed Bin Rashid Al-Maktoum Solar Park, with Abu Dhabi Future Energy Company (Masdar) submitting the lowest tariff for the project in July.

    China’s BYD will act as a bess supplier for the project, which combines 2,000MW of PV capacity with a 1,400MW bess designed to discharge for six hours, equivalent to 8,400MWh of stored energy.

    The storage component will allow Dewa to use more solar power after sunset, reducing the gap between daytime generation and the evening demand peak.

    The 1,800MW sixth phase is also nearing completion, with Larsen & Toubro delivering the estimated $1.5bn project for Shuaa Energy 4, the project company formed by Dewa and Masdar.

    Dewa has increased the planned capacity of the solar park to 7,260MW by 2030, from its earlier target of 5,000MW.

    Furthermore, Ewec is advancing its 1.5GW Al-Zarraf solar PV plant, with EDF and Korea Western Power Company selected as the consortium to develop the project.

    Grid expansion

    Multibillion-dollar IPP schemes have driven annual award values in recent years, while transmission work continues to provide a steadier flow of opportunities for contractors and equipment suppliers.

    Transmission awards fell to $1.11bn across 22 packages in 2026, from $2.98bn in 2025, reflecting the absence of a comparable large-scale package rather than a halt in network investment.

    Ewec and Taqa are expanding 400kV and 132kV networks across Abu Dhabi and the Northern Emirates, while Dewa continues to reinforce its cable and substation systems in Dubai.

    In September, EtihadWE received bids for a contract to carry out a techno-economic feasibility study for a proposed 2GW subsea electricity interconnector with India.

    The proposed 1,400-kilometre link would be the UAE’s first direct subsea cross-border electricity interconnector, illustrating a potential longer-term ambition to connect the UAE to wider regional and international power markets.

    Earlier this year, the GCC Interconnection Authority awarded Omexom, part of France’s Vinci Group, a contract to build a 400kV overhead transmission line between the UAE and Saudi Arabia.

    In October, the UAE and Saudi Arabia signed a memorandum of understanding to advance cross-border electricity interconnection, paving the way for feasibility studies on power exchange, commercial electricity trading and the expansion of the wider GCC interconnection grid.

    Waste-to-energy

    Waste-to-energy continues to become an increasingly important part of the UAE’s infrastructure pipeline as the country seeks to reduce landfill dependence and diversify its power mix through alternative generation sources.

    Dubai Municipality recently invited developers to submit expressions of interest for its planned Jebel Ali waste-to-energy public-private partnership, a greenfield facility designed to treat up to 6,000 tonnes of municipal solid waste a day.

    According to a source, the municipality plans to prequalify developers later this year, then issue a request for proposals in the first quarter of 2027.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20582379/main.gif
    Mark Dowdall
  • Riyadh awards $1.5bn metro rolling stock contracts

    14 October 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Royal Commission for Riyadh City (RCRC) has signed contracts worth about SR5.5bn ($1.5bn) to procure 94 additional trains for the Riyadh Metro network.

    Germany’s Siemens and France’s Alstom have been awarded the contracts. They cover rolling stock manufacture, onboard systems, equipment and related services.

    The procurement will increase the metro fleet from 183 to 277 trains. Deliveries are due to begin in phases in 2028, with the additional units subject to testing and operational trials before entering service.

    RCRC expects the programme to increase the network’s passenger capacity by 60%.

    The additional trains will be distributed across the six metro lines based on current demand and projected ridership.

    The Red Line will receive the largest capacity increase, at 142%, followed by the Yellow Line at 116% and the Blue Line at 60%. Capacity on the Orange and Purple lines will increase by 27% and 16%, respectively.

    Daily capacity on the Blue Line is set to increase from about 340,000 to 533,000 passengers. Capacity on the Red Line will rise from 154,000 to 370,000 passengers a day, while the Yellow Line will increase from 133,000 to more than 288,000.

    The expansion is intended to meet rising demand for public transport as Riyadh prepares to host Expo 2030 and the 2034 Fifa World Cup, alongside continued growth in residential, commercial and entertainment developments.

    Speaking at the 37th government press conference, RCRC chief executive Ibrahim Al-Sultan said the metro has carried more than 300 million passengers since it began operating.

    Average metro ridership rose by about 25% in the first nine months of 2026 compared with the same period in 2025, he added.

    The wider Riyadh public transport system, including buses and the metro, is approaching 500 million passenger journeys.

    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/20582763/main.png
    Yasir Iqbal
  • Jeddah extends bid deadline for drainage scheme

    14 October 2026

     

    Jeddah Municipality has extended the deadline for contractors to submit bids for the construction of a rainwater drainage network for the Prince Fawaz neighbourhood.

    The new deadline is 15 November. The original deadline was 12 October.

    The project aims to collect and convey rainwater away from residential streets and low-lying areas. It is valued at $60m and is intended to reduce flood risk during heavy rainfall.

    The scope includes manholes, stormwater catch basins and connections to existing manholes, as well as the restoration of road surfaces.

    Prince Fawaz is a residential district in southern Jeddah, divided into northern and southern sections.

    It is connected to the Mecca-Jeddah Expressway and Al-Harmain Road, with road improvements in the southern section designed to improve access for residents and neighbouring districts

    The municipality is also advancing a second stormwater drainage project for the first package of Zone (BC), Old Zahraa, in Jeddah Governorate. The project is valued at about $30m.

    According to a source, bids were submitted for the project on 16 September.

    The two projects are part of the municipality’s wider drainage programme, which includes the flagship King Abdullah Road-Falasteen Road tunnel project.

    MEED previously reported that Saudi contractor Thrustboring Construction Company had been selected for phases one and two of the project, each valued at about $175m, covering the construction of large-diameter stormwater drainage tunnels. As of August, an official agreement had yet to be signed.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20580980/main.jpg
    Mark Dowdall
  • US initiates procurement for Expo 2030 Riyadh pavilion

    14 October 2026

     

    Register for MEED’s 14-day trial access 

    The US Department of State has initiated market research to procure a design-and-build contract for the US Pavilion at Expo 2030 Riyadh.

    According to procurement documents released through the US federal contracting portal, the project covers the full design, construction, exhibition fit-out, maintenance, and eventual decommissioning and removal of the national pavilion.

    The total cost for the design, construction and decommissioning packages is estimated at $55m to $65m.

    The request for information notice was issued on 9 October.

    The pavilion will be developed on plot P5.N1.B03.01 within the Expo 2030 masterplan’s Technology district, fronting the Loop of Nations corridor.

    It spans 5,368 square metres (sq m), with a maximum permitted gross floor area (GFA) of 8,052 sq m and an overall building height limit of 20 metres.

    The planned temporary structure will rise approximately three storeys and house between 5,000 and 6,000 sq m of exhibition space. The brief requires the facility to accommodate at least 23,000 visitors a day over the event’s six-month duration.

    Additional programme elements include:

    • A rooftop garden and restaurant
    • Two commercial kitchens
    • A VIP reception suite
    • Dedicated retail and administrative office space
    • Back-of-house operational areas and exterior shaded public landscaping

    Interested contractors and joint ventures have been invited to submit capability statements by 11 November. Bidders must demonstrate prior experience delivering major pavilions or large-scale immersive exhibition spaces completed within the past 15 years, alongside international logistics and regional project delivery capabilities.

    UK-based engineering consultancy Buro Happold prepared the plot masterplanning and development guidelines for the zone.

    Another UK-headquartered firm, Trivandi, was selected in April as the operations partner for the US Pavilion at Riyadh Expo.

    Expo 2030 Riyadh will run from October 2030 to March 2031 under the theme Foresight for Tomorrow, with host authorities projecting roughly 42 million visits.

    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 near the future King Salman International airport and will provide direct access to Riyadh landmarks.

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

    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/20580855/main.jpeg
    Yasir Iqbal