Oman gas contract is worth $683m

12 December 2025

 

The contract that Petroleum Development Oman (PDO) has awarded to Kuwait-based Spetco to develop an integrated natural gas facility is worth $683m, according to industry sources.

The facility, which will produce natural gas from the Budour and Tayseer fields in Oman, will be constructed over a 30-month period under the terms of the contract, sources said.

In September, MEED reported that PDO had awarded Spetco the main design, build, own, operate and maintain (DBOOM) contract for the combined Budour-Tayseer sour gas processing facility project.

PDO recently held an official signing ceremony with Spetco for the DBOOM contract, which has an operations and maintenance period of 15 years.

The project aims to expand the capacity of the existing gas production and processing facilities at Tayseer. It represents the second development phase of the gas field.

Through the project, PDO is also seeking to appraise, produce and process sweet gas from the Budour field, which is about 50 kilometres (km) west of the Tayseer field.

The following firms, among others, are understood to have submitted proposals to PDO:

  • Enerflex (Canada)
  • Jereh Group (China)
  • Spetco (Kuwait)

The three developers originally submitted proposals for the project by 30 November 2024.

PDO issued the DBOOM tender for the Budour‑Tayseer combined gas processing facility project in the first quarter of 2024, after completing a prequalification exercise in June 2023.

MEED previously reported that PDO suspended the DBOOM tendering exercise earlier this year and tested an alternative execution model, initiating a front‑end engineering and design (feed) to engineering, procurement and construction (EPC) competition.

PDO floated a prequalification document for the feed-to-EPC contest in March. Contractors submitted responses to the prequalification questionnaire by the deadline of 27 April.

The feed-to-EPC competition model involves the project operator selecting contractors to execute feed work and then choosing the contractor with the most competitive feed proposal to execute EPC works on the project, while also compensating the other contestants for their work.

However, PDO did not select contractors to take part in the feed‑to‑EPC contest and is understood to have cancelled the exercise, sources told MEED. The client eventually reverted to the DBOOM model.

Tayseer and Budour field development

The Tayseer field was discovered in November 2014 after the successful well-testing of Tay-1. It is approximately 50km north of the Birba field and 20km west of the Al-Noor production station.

Since the Tayseer field is part of the A1C platform carbonate, which has proven aquifer support in the Budne A1C field, some formation water production can be expected.

PDO developed the Tayseer field through a project in 2016. US-based Exterran was awarded a design, build and operate contract in 2017.

Currently, three Tayseer wells are being processed in the existing Tayseer early development facility and sweet gas from the facility is being exported to PDO’s South Oman gas pipeline.

As part of the expansion phase, new production wells will be drilled at Tayseer. The produced gas will be processed at a new sour gas processing facility located at Budour.

The Budour A4C non-associated gas field was discovered in 2001 and appraised until 2009. The field has never been appraised since. The development concept for the Budour non-associated gas field involves depletion through a standalone sour gas processing facility, with sweet gas exported to the South Oman gas pipeline.

No formation water is expected, so only the condensation water requires handling and disposal. New production wells are to be drilled at Budour and production from those wells will be processed at the planned new sour gas processing facility.

The DBOOM contractor was required to provide the following on-plot facilities and services as part of the project:

  • Inlet production/ test manifold
  • Well testing
  • Inlet separation
  • Sour gas processing facility, including export gas compressors
  • Sulphur recovery and storage
  • Crude de-salting
  • Condensate stabilisation
  • Condensate storage and export
  • Produced water treatment
  • Storage, export and raw water treatment with all the associated plant utilities
  • Controls and instrumentation

The planned combined Budour-Tayseer sour gas processing facility is projected to have a capacity of 78.39 million cubic feet a day (cf/d) and unstabilised condensate of 1,167 cubic metres a day (cm/d). The facility will handle gas exports of about 70 million cf/d, stabilised condensate exports of 950 cm/d and will have a water handling capacity of 340 cm/d.

Outside the scope of services under the original DBOOM contract, PDO intended to build off-plot facilities to support the Budour-Tayseer combined gas processing facility.

These were:

  • Wellhead hook-ups
  • Sour gas flowlines from the wellhead to the on-plot facilities
  • Remote manifold station at the Tayseer field
  • Wash water distribution network from the on-plot facility boundaries to gas production wellheads
  • Sour gas production pipeline from the Tayseer field to the Budour field
  • Sweet gas export pipeline from the on-plot facility to the Salalah gas line
  • Condensate export pipeline from the on-plot facility to the main oil line
  • Produced water pipeline from the on-plot facility to the Marmul water treatment plant in southeastern Oman for further processing and deep water disposal
  • Raw water supply line from the water supply well to the on-plot facility and electrical overhead line from the PDO grid to the DBOOM facility

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

Prospects widen as Middle East rail projects are delivered; India’s L&T storms up MEED’s EPC contractor ranking; Manama balances growth with fiscal challenges

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

> BAHRAIN MARKET FOCUS: Manama pursues reform amid strain
To see previous issues of MEED Business Review, please click here
https://image.digitalinsightresearch.in/uploads/NewsArticle/15235584/main.png
Wil Crisp
Related Articles
  • Adnoc steps up crude expansion

    15 October 2026

     

    Abu Dhabi National Oil Company (Adnoc Group) is entering a new phase of upstream investment as the UAE’s withdrawal from Opec opens the way for greater oil production flexibility. After spending an estimated $37bn on upstream projects in 2023 and 2024, the state-owned energy company continues to invest heavily in expanding crude production capacity and developing domestic gas supplies.

    The investment programme supports two key targets: raising crude production capacity to 5 million barrels a day (b/d) by 2027 and achieving gas self-sufficiency by the end of the decade.

    Following the UAE’s withdrawal from Opec in May 2026, Adnoc Group has nearly matched its 2024 upstream project spending level so far this year and is on course to surpass it by a significant margin.

    The UAE had invested billions of dollars in expanding crude production capacity, but output quotas under the Opec+ framework had constrained its ability to translate that capacity into higher production and additional oil revenues in a high-price environment.

    The UAE’s exit from Opec gives Adnoc greater flexibility to utilise its spare capacity, accelerate progress towards its 5 million b/d target and potentially exceed it. The company is positioning itself to capitalise on rising oil demand while retaining the flexibility to respond to market conditions.

    Robust offshore spending

    So far this year, Adnoc Offshore has awarded major contracts for projects involving the Satah Al-Razboot (Sarb) deep gas development, the expansion of the Nasr oil field and an increase in the Upper Zakum oil field’s output capacity to 1.5 million b/d.

    Adnoc reached a final investment decision (FID) on the Sarb project in January and awarded the main engineering, procurement and construction (EPC) contract to US-based McDermott International. The contract is estimated to be worth around $500m, sources told MEED.

    The project is expected to deliver 200 million cubic feet a day (cf/d) of gas by the end of the decade – enough to power more than 300,000 homes.

    The scope includes the EPC of an offshore wellhead tower with four gas production wells, which will be connected to Das Island for processing through Adnoc Gas facilities. The works also include the installation of pipelines and intra-field connections linking the Sarb field to Das Island.

    Also in January, Adnoc Offshore awarded McDermott a $942m contract for the Nasr-115 project, which will increase production capacity at the Nasr offshore field to 115,000 b/d. The field is located about 130 kilometres northwest of Abu Dhabi.

    McDermott’s scope covers engineering, procurement, construction and installation services for two topside structures, a new manifold tower, a jacket, a bridge, associated pipelines, subsea cables and brownfield modifications.

    UZ 1.5MMBD project

    Located 84km offshore Abu Dhabi, Upper Zakum is the world’s second-largest offshore oil field and fourth-largest oil field overall. The UZ 1.5MMBD project is Adnoc Offshore’s latest crude production expansion scheme at the Upper Zakum field.

    The project scope is divided into three packages. The first EPC package covers surface facilities required on the field’s existing artificial islands, including integrated gas-lift compressors, produced-water reinjection units, water treatment plants, pre-assembled manifolds and related facilities.

    The second package covers offshore facilities and comprises several segments of subsea pipelines and subsea cables.

    The third package covers work on Adnoc’s existing Zirku Island and will require additional oil tanks, a water treatment unit, an export gas compressor, a condensate treatment unit, and associated power and utilities facilities.

    Adnoc Offshore awarded the first and third EPC packages of the UZ 1.5MMBD project to Spanish contractor Tecnicas Reunidas, while Abu Dhabi-based NMDC Energy won the second package. The overall scheme is estimated to be worth more than $10bn.

    Umm Shaif Gas Cap

    Gas production has also been a key capex area this year, with Adnoc and its foreign partners reaching a $6.2bn FID in July for a major project to produce up to 600 million cf/d of natural gas by developing the Umm Shaif Gas Cap in Abu Dhabi.

    The Umm Shaif Gas Cap reserve lies within the offshore Umm Shaif and Nasr hydrocarbons concession, in which Adnoc is the majority stakeholder. Other stakeholders in the concession are Italy’s Eni, France’s TotalEnergies and China National Petroleum Corporation.

    Adnoc said the FID includes three EPC packages totalling $5.1bn for large-scale offshore infrastructure, awarded to the following contractors:

    • First offshore package – fabrication of a 30,000-tonne gas compression system: Larsen & Toubro Energy Hydrocarbon (India) / Lamprell (Saudi Arabia/UAE)
    • Second offshore package – fabrication of another 30,000-tonne gas compression system: McDermott (US)
    • Onshore package – EPC of gas inlet and processing systems on Das Island: China Petroleum Engineering & Construction Company (CPECC)

    As part of the FID, Adnoc also awarded a $365m contract to its subsidiary Adnoc Drilling for a 14-well drilling and integrated drilling services scope, to be delivered over 18 months using three existing rigs.

    Separate from the Umm Shaif Gas Cap development, Adnoc Offshore is preparing to issue the main tender for the next expansion phase of the Umm Shaif oil and gas field offshore Abu Dhabi.

    Contractors expressed interest to Adnoc Offshore in June in participating in the main tendering exercise for the Umm Shaif long-term development plan 2.1 (LTDP-2.1) project.

    The project’s primary objective is to maintain Umm Shaif’s oil production capacity at approximately 390,000 b/d, while enabling peak output of up to 430,000 b/d.

    The project includes constructing a new combined artificial island at Umm Shaif, equipped with drilling, processing, utilities and supporting infrastructure. It also includes installation of an optimised crude-stabilisation train at Adnoc’s existing Das Island facilities.

    Located about 150km northwest of Abu Dhabi city, Umm Shaif is one of Adnoc’s oldest offshore oil-producing assets. In 2022, the company marked the 60th anniversary of the UAE’s first export of Umm Shaif crude, which took place in July 1962.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20634497/main.gif
    Indrajit Sen
  • Joint venture wins Oman desalination contract

    15 October 2026

    Bahwan Veolia Water, a joint venture of France’s Veolia and Oman’s Bahwan Engineering Company, has signed a five-year operations and maintenance (O&M) contract for the Al-Asilah desalination plant in the sultanate.

    The Al-Asilah plant has a production capacity of 80,000 cubic metres a day and helps supply drinking water to about 600,000 residents across South Al-Sharqiyah governorate. It also has an on-site solar farm to support lower-carbon water production.

    The plant entered commercial operation in January 2022 under a build-own-operate arrangement. A consortium of Bahwan Engineering and Japan-headquartered JGC Corporation developed it.

    South Korea’s Doosan Heavy Industries & Construction, now known as Doosan Enerbility, carried out the engineering, procurement and construction (EPC) works.

    Oman’s first independent water project (IWP), the Sur IWP, also serves residents in Al-Sharqiyah governorate.

    The main contract for the project was awarded in 2007, with Veolia carrying out EPC works and acting as shareholder in Sharqiyah Desalination Company, which owns the plant.

    Bahwan Veolia Water signed a 22-year O&M agreement for the project that same year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20631273/main.jpg
    Mark Dowdall
  • Adnoc funnels billions into boosting gas processing

    15 October 2026

     

    Abu Dhabi National Oil Company (Adnoc Group) is accelerating investment in gas processing and associated downstream infrastructure as demand in the UAE rises and the government prioritises lower-carbon energy growth.

    Rising gas consumption in the UAE is being driven by rapid population growth, greater household electrification, expanding industrial bases and demand from gas-intensive downstream segments such as petrochemicals, fertilisers and metals.

    Power generation and water desalination are also key sources of demand, while new industrial zones – as well as data centres supporting the expansion of artificial intelligence (AI) use in the country – add further baseload requirements.

    Adnoc Gas, Adnoc Group’s gas processing subsidiary, is leading the UAE’s push to expand gas processing capacity and is executing a major capital expenditure (capex) programme worth $28bn over 2026-30.

    As part of that capex plan, Adnoc Gas achieved a final investment decision (FID) on the second and third phases of its Rich Gas Development (RGD) programme earlier this year.

    Adnoc Gas awarded $8.2bn of engineering, procurement and construction (EPC) contracts for the second and third phases of the RGD programme. These cover a new gas processing train at the Habshan complex and a natural gas liquids fractionation train at the Ruwais gas processing facility, respectively.

    Under the awards, China-based Wison Engineering will execute phase 2 under a $3.9bn contract, while Italy’s Tecnimont has secured the $4.3bn phase 3 contract.

    Adnoc Gas has also reiterated its $5bn capex for the first phase of the RGD scheme, which is under construction. The company awarded $5bn of engineering, procurement and construction management contracts in three tranches for phase 1 of the RGD programme in June last year, marking the company’s largest-ever capital investment.

    Across all three phases, Adnoc Gas has committed a total of $13.2bn to the RGD programme.

    Bab Gas Cap development

    Looking ahead, Adnoc Gas is advancing towards FID on the estimated $8bn Bab gas cap development. The project will process up to 1.85 billion cubic feet a day (cf/d) of raw feed gas once Adnoc Group begins extracting reserves from four underdeveloped onshore reservoirs at the Bab field: Thammama A, B and H (projected to yield a combined 1.45 billion cf/d) and Thammama F (projected at 396 million cf/d).

    Because existing trains at the Habshan complex cannot accommodate these supplementary volumes, the project entails building a processing plant approximately 170 kilometres from Abu Dhabi city, alongside pipeline networks and ancillary units.

    Adnoc Gas has split the EPC scope into four packages, with technical bids due on 16 November:

    • Package 1: Main Bab gas cap processing plant
    • Package 2: Early civil works
    • Package 3: Pipeline network
    • Package 4: Non-process facilities and associated infrastructure

    Four contractor consortiums prequalified to bid for the main contracts:

    • Larsen & Toubro Energy Hydrocarbon (India) / Samsung E&A (South Korea)
    • Saipem (Italy) / NMDC Energy (UAE)
    • Technip Energies (France) / JGC Corporation (Japan) / Sinopec (China)
    • Tecnimont (Italy) / China Petroleum Engineering & Construction Corporation 

    Gas pipeline investments

    Adnoc Group continues to invest in projects to enhance its gas transmission networks across the UAE, following its $3.5bn-plus capex on the Estidama programme earlier this decade to expand its sales-gas network in the country.

    Adnoc Gas recently awarded the main contract for a project to build a new pipeline that will supply gas from the Habshan scraper launcher station at its Habshan gas compression complex in Abu Dhabi to the Al-Nouf customer receiving station, for delivery to Emirates Water & Electricity Company (Ewec).

    The proposed 56-inch, 127km pipeline will help the UAE’s state utility, Ewec, meet additional gas demand to power the second phase of an AI data centre in Abu Dhabi, as well as support the relocation of some of its key assets in the Mirfa area of the emirate.

    Adnoc Gas awarded the EPC contract for the project to India-based Kalpataru Projects International.

    Separately, Adnoc is moving ahead with plans to build an oil pipeline network that will transport crude from its main offshore oil processing islands in the Gulf to its onshore crude export terminal at Jebel Dhanna, Abu Dhabi.

    The planned network will source crude from Zirku Island and Das Island, where Adnoc gathers and treats oil produced at Abu Dhabi’s offshore fields, among other processing hubs, and transport it about 300km inland to the Jebel Dhanna terminal.

    The proposed pipelines will eventually connect to the West-East crude pipeline network currently being built from Jebel Dhanna to the emirate of Fujairah, which is expected to be commissioned in 2027.

    Boosting chemicals output

    Meanwhile, following major investments over the past three years to set up specialty chemical plants under the first phase of its chemical derivatives complex in Ruwais Industrial City, Taziz is firming up plans for the second phase of the complex.

    Taziz has partnered with local conglomerate Alpha Dhabi to undertake a joint feasibility and market study and, subject to FIDs and regulatory approvals, the second phase of the Taziz Industrial Chemicals Zone could produce up to 14 new chemicals, with total output capacity of about 2.2 million tonnes a year (t/y).

    The chemicals under study include styrene and polystyrene, acrylic acid and derivatives, polyols, methylene diphenyl diisocyanate (MDI), epoxy resins and linear alpha-olefins. These are widely used across construction, automotive, packaging, consumer goods, infrastructure and advanced manufacturing.

    Taziz, Germany-based chemicals producer Covestro and XRG – all wholly or majority-owned subsidiaries of Adnoc Group –  have launched a joint feasibility study to assess the development of a world-scale MDI plant in Ruwais Industrial City.

    The partners aim to establish a facility in the Taziz Industrial Chemicals Zone with a production capacity of 660,000 t/y of MDI. The study will evaluate the technical, commercial and economic feasibility of the proposed plant, with the aim of informing a future investment decision.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20622502/main.gif
    Indrajit Sen
  • Morocco extends deadline for El-Menzel pumped-storage plant

    15 October 2026

    Morocco’s Office National de l’Electricite (One) has extended the deadline for contractors to submit bids for the 362MW El-Menzel pumped-storage hydropower project.

    The new deadline is 25 November. Bids were previously due on 28 October.

    The project is located about 35 kilometres southeast of Sefrou in the Fes-Meknes region. The engineering, procurement and construction contract covers engineering, equipment supply, construction, installation and commissioning.

    The scope includes two reversible pump-turbine units, upper and lower reservoirs, underground water conduits, a 400kV substation and a transmission line connecting the facility to the national grid.

    One tendered the project in July following an earlier prequalification process that began in May 2023, when six consortiums submitted applications.

    Three consortiums were subsequently prequalified to bid for the main contract. These include:

    • China International Water & Electric Corporation (China) / Yellow River Engineering Consulting Company (China) / Harbin Electric International Company (China) / Harbin Electric Machinery Company (China) / Jet Contractors (Morocco)
    • Sinohydro (China) / Andritz Hydro (Austria)
    • Webuild (Italy) / Dongfang Electric International Corporation (China)

    The project aims to support Morocco’s renewable energy programme and help the country reach its target of sourcing 52% of its energy mix from renewables by 2030. It is being financed by the African Development Bank and Germany’s KfW Development Bank.

    One already operates the 464MW Afourer and 350MW Abdelmoumen pumped-storage stations, while the 300MW Ifahsa project is under development.

    In August, the Office National de l’Electricite et de l’Eau Potable (Onee) approved a MD248bn ($26.4bn) investment programme for 2026-30. The spending plan covers electricity and drinking water infrastructure.

    The programme allocates $21.9bn to electricity projects and $4.5bn to drinking water infrastructure. According to Onee, the private sector will finance about 72% of the investment.

    The electricity programme includes $11.1bn of investment to develop 11.6GW of renewable energy capacity and 2.6GW of energy storage. It also provides for 2,230MWh of battery energy storage systems, the El-Menzel pumped-storage hydropower plant and 3,744MW of gas-fired generation to support grid flexibility.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20621738/main.jpg
    Mark Dowdall
  • Contractors given extension on Riyadh airport aviation complex

    15 October 2026

     

    Contractors have been given an extension until 19 November to submit proposals for an estimated SR3bn ($817m) contract to build an aviation complex within the King Salman International airport master development in Riyadh.

    Government-owned aviation organisation Saudi Royal Aviation (SRA) tendered the contract in August, with an initial bid submission deadline of 8 October.

    Phase one of the programme comprised the concept design stage, which the design consultant has completed.

    SRA is now seeking to deliver the second phase, which covers design development, detailed design, procurement, construction, testing, commissioning and close-out of the works.

    The scope covers 30 landside buildings, including 16 screening areas and gates, plus 15 airside buildings, including four gates.

    The assets include maintenance hangars, workshops, office and administrative buildings (including interior fit-out), warehouses, storage, security and catering facilities, aprons and access roads, and site utilities and civil works.

    King Salman International airport will provide primary utilities to designated tie-in points, with the contractor taking responsibility from there.

    Although the site is within King Salman International airport’s boundaries, it is classified as landside and is a greenfield development. The contractor must therefore meet airport security, safety and access requirements, in addition to SRA’s own clearance processes.

    Project scale

    The King Salman International airport project covers an area of about 57 square kilometres (sq km), allowing for six parallel runways, and will include the existing terminals at King Khalid International airport. It will also include 12 sq km of airport support facilities, residential and recreational facilities, retail outlets and other logistics real estate.

    The airport aims to accommodate up to 100 million passengers by 2030. The goal for cargo is to process 2 million tonnes a year by 2030.

    Saudi Arabia plans to invest significantly in its aviation sector. The Saudi Aviation Strategy, announced by the General Authority of Civil Aviation, aims to triple Saudi Arabia’s annual passenger traffic to 330 million travellers by 2030.

    It also aims to increase air cargo traffic to 4.5 million tonnes and raise the country’s total air connections to more than 250 destinations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20619953/main.png
    Yasir Iqbal