meed-logo

line1 line2 line3
SIGN IN / REGISTER

PDO awards Budour-Tayseer gas project contract

24 September 2025

Petroleum Development Oman (PDO) has awarded the main contract for a project to build an integrated facility to produce natural gas from the Budour and Tayseer fields in Oman.

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 west of the Tayseer field.

Kuwait‑based Spetco International Petroleum Company (Spetco) has won the main design, build, own, operate and maintain (DBOOM) contract for the combined Budour-Tayseer sour gas processing facility project, sources say.

MEED recently reported that Spetco was the frontrunner for the DBOOM contract, with PDO expected to issue the official award within days.

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

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

PDO issued the DBOOM tender for the Budour‑Tayseer combined gas processing facility project in Q1 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.
ALSO READ: Oman makes strides forward in global LNG race

https://image.digitalinsightresearch.in/uploads/NewsArticle/14730670/main0131.jpg
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • Engineering progresses on Ras Laffan LNG terminal berths

    16 September 2026

     

    Register for MEED’s 14-day trial access 

    Front-end engineering and design (feed) works are progressing on a QatarEnergy LNG project to build 13 liquefied natural gas (LNG) loading berths at the south export terminal in Qatar’s Ras Laffan Industrial City.

    Ras Laffan Industrial City, which lies about 90 kilometres north of Doha, is the world's largest integrated LNG production and export complex, comprising 15 processing trains with a total capacity of 77.5 million tonnes a year (t/y). QatarEnergy began LNG operations at the facility, which houses all its processing trains and export infrastructure, in 1984.

    According to sources, QatarEnergy LNG, a subsidiary of state enterprise QatarEnergy, awarded the feed contract for the project to build 13 LNG berths at the south export terminal at Ras Laffan to Australia-headquartered Worley.

    The contract was awarded to Worley in the second quarter of this year. Its duration is estimated to be 200,000-250,000 man hours, sources told MEED.

    Ras Laffan’s LNG processing and export capabilities will increase by up to about 63% when the three phases of QatarEnergy’s estimated $40bn North Field LNG expansion project come into operation by the end of this decade. Engineering, procurement and construction (EPC) works on all three projects are progressing.

    QatarEnergy is understood to have committed nearly $30bn to the first two phases – North Field East (NFE) and North Field South (NFS) – which will lift Qatar’s LNG production capacity from 77.5 million t/y to 126 million t/y by 2028.

    QatarEnergy awarded the main EPC contracts for NFE in 2021. The project was intended to raise LNG output to 110 million t/y by 2025. The $13bn EPC package – covering the engineering, procurement, construction and installation of four LNG trains, each with a capacity of 8 million t/y – was awarded in February 2021 to a consortium of Japan’s Chiyoda and France’s Technip Energies.

    In May 2023, QatarEnergy awarded the $10bn main EPC contract for NFS to a consortium of Technip Energies and Consolidated Contractors Company (CCC). The contract includes two LNG trains, each with a capacity of 7.8 million t/y.

    Once fully operational, the first two phases are expected to add 48 million t/y of LNG supply to the global market.

    QatarEnergy took the final investment decision on the third phase, North Field West (NFW), this year, awarding an EPC contract estimated at $8bn to a joint venture comprising Technip Energies, CCC and Gulf Asia Contracting in February.

    Chiyoda carried out the feed work for the NFW LNG project.

    The NFW scope covers the EPC of two LNG trains with a combined capacity of 16 million t/y, as well as associated facilities for gas treatment, natural gas liquids recovery and helium extraction.

    In addition to LNG, NFW is expected to produce about 175,000 barrels of oil equivalent a day of condensate, ethane and liquefied petroleum gas.

    With all three phases under EPC execution – and NFE scheduled for commissioning later this year – QatarEnergy is positioning itself to remain one of the world’s largest LNG suppliers in the long term.

    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:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19715235/main5946.jpg
    Indrajit Sen
  • Design completed for Libyan oil field development

    16 September 2026

     

    Register for MEED’s 14-day trial access 

    Design work has been completed for a project to develop Libya’s I/R oil field, according to industry sources.

    The front-end engineering and design work was completed by a team in the London offices of Italy’s EniProgetti and paves the way for the main engineering, procurement and construction contract to be tendered.

    One source said: “At the moment, there is no fixed date for when the invitation to bid for the main contract will be issued, but the project has a lot of momentum and is progressing towards tendering.”

    The I/R oil field is located in Murzuq Basin in southwestern Libya.

    In June this year, Libya's National Oil Corporation (NOC) signed a unified operating agreement for the field.

    The I/R field is operated by Akakus Oil Operations, which is a joint venture of NOC in partnership with Spain’s Repsol, France’s TotalEnergies Repsol, Austria’s OMV and Norway’s Equinor.

    The agreement in June was signed by NOC as well as its concession partners.

    NOC said the agreement would unify operational and administrative procedures related to field management, optimise resource utilisation and support production sustainability.

    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:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19711588/main.jpg
    Wil Crisp
  • QatarEnergy selects contractors for offshore oil field expansion

    16 September 2026

     

    Register for MEED’s 14-day trial access 

    QatarEnergy has selected contractors for the two main engineering, procurement and construction (EPC) packages of its estimated $4bn-$5bn Maydan Mahzam offshore oil field expansion project in Qatar.

    The Qatari energy giant has selected a consortium of state-owned PetroVietnam Technical Services Corporation (PTSC) and Singapore-based Seatrium for package one of the Maydan Mahzam field expansion project, according to sources.

    State-owned China Offshore Oil Engineering Company (COOEC) has secured package two of the project, sources told MEED.

    Additionally, PTSC has confirmed its contract award for the first engineering, procurement, construction and installation (EPCI) package in a disclosure to the Hanoi Stock Exchange, saying its wholly owned subsidiary PTSC Mechanical & Construction had received a letter of award from QatarEnergy. The company added that “the parties will continue discussions to finalise and execute the definitive contract, which is expected to be signed in October 2026”.

    In its filing, PTSC added that its scope of work covers “the provision of engineering, procurement, construction, transportation, offshore installation, hook-up, commissioning and brownfield modification services for the [Maydan Mahzam] project”.

    MEED reported in late August that the consortium of PTSC and Seatrium had emerged as the frontrunner for package one of the expansion project.

    At the time, US-based McDermott was ahead in the race to win package two. However, COOEC is understood to have presented "better terms to the client in the final rounds of negotiations”, sources said.

    QatarEnergy issued the main tender for the Maydan Mahzam oil field expansion project in February 2025, with EPC works divided into four packages, MEED previously reported.

    Contractors submitted technical bids for the project’s two main EPC packages in September 2025, sources said.

    After QatarEnergy granted several extensions to the deadline for the submission of commercial bids for the two packages – initially set for 1 March – contractors submitted their prices by 21 June, MEED reported.

    The following contractors, among others, are understood to have submitted bids for the two main packages of the project:

    Package one:

    • China Offshore Oil Engineering Company (China)
    • Hanwha Ocean (South Korea)
    • Hyundai Heavy Industries (South Korea)
    • Larsen & Toubro Energy Hydrocarbon (India)
    • PetroVietnam Technical Services Corporation (Vietnam) / Seatrium (Singapore)
    • Saipem (Italy)

    Package two:

    • Allseas (Netherlands)
    • China Offshore Oil Engineering Company (China)
    • Larsen & Toubro Energy Hydrocarbon (India)
    • McDermott (US)
    • Saipem (Italy)

    The Maydan Mahzam oil field lies about 100 kilometres (km) northeast of the Qatari coastline and 28km southeast of Halul Island, located in water depths of about 40 metres. The field, together with the nearby Bul Hanine field, was discovered in the 1960s and has been in production since 1965.

    QatarEnergy is undertaking the project to upgrade infrastructure at Maydan Mahzam to extend the life of this maturing asset and maintain productivity over the long term.

    The scope of work for package one includes the EPC of seven new topsides, requiring the fabrication of structures weighing more than 78,000 metric tonnes in total. The main process topside will weigh 19,400 metric tonnes, while the other topsides will consist of 10-legged jackets.

    The scope also includes modifications to five existing topsides, four new bridges, eight-tonne support platforms with jackets, brownfield work on Halul Island and the installation of pipelines and cables.

    The scope of work for package two covers the EPCI of topsides, umbilicals and cables.

    ALSO READ: Contractors submit bids for Dukhan field facilities upgrade

    In addition to advancing its gas production and liquefied natural gas ambitions, QatarEnergy committed significant capital expenditure last year to increasing oil output capacity from its offshore fields.

    In August 2025, QatarEnergy selected contractors for the EPC works on a project to maintain and increase production potential at the Bul Hanine offshore oil field. The EPC scope was divided into three main packages, with COOEC being awarded the first two packages and Qatari contractor Doha Petroleum Construction Company (Dopet) being selected for the third. In addition, COOEC appointed US-based KBR to provide detailed engineering services for the first and second packages.

    Separately, last September, QatarEnergy awarded the main EPC contract for a project to add a fifth natural gas liquids (NGL) train at its complex in Mesaieed Industrial City. Indian contractor Larsen & Toubro Energy Hydrocarbon won the contract.

    The project, estimated to be worth $2.5bn, aims to build a fifth NGL train with the capacity to process up to 350 million cubic feet a day of rich associated gas from QatarEnergy’s offshore and onshore oil fields.

    ALSO READ: Contractors prepare bids for North Field West offshore platforms

    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:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19688942/main3340.jpg
    Indrajit Sen
  • Contractors prequalify for Bahrain sports stadium

    15 September 2026

     

    Register for MEED’s 14-day trial access 

    Twenty-one local and Saudi Arabia-based contractors have been prequalified for a contract to build the first phase of the Bahrain International Sports City project in the Sakhir area.

    The prequalification stage closed on 13 September.

    The notice was first issued on 24 May, with an initial submission deadline of 26 July.

    The prequalified firms are:

    1. Alfanar Projects (Saudi Arabia)
    2. Al-Ayuni Investment & Contracting (Saudi Arabia)
    3. Nesma Infrastructure & Technology (Saudi Arabia)
    4. Shar Construction (Saudi Arabia)
    5. Saudi Binladin Group (Saudi Arabia)
    6. Kooheji Contractors (local)
    7. B1 Trading & Services (local) 
    8. Nass Contracting (local)
    9. RTCC / IC Ictas (Saudi Arabia / Turkiye)
    10. Moffareh Alharbi & Partners (Saudi Arabia)  
    11. Al-Sharif Group Holding (Saudi Arabia)
    12. Cebarco (local)
    13. Midmac Contracting (Qatar)
    14. BEC Arabia (Saudi Arabia)
    15. Shibh Al-Jazira Contracting Company (Saudi Arabia)
    16. Poullaides Construction Poullaides Construction 
    17. Isam Khairi Kabbani Partners (Saudi Arabia)
    18. El-Seif Engineering Contracting Company (Saudi Arabia)
    19. AlBawani (Saudi Arabia)
    20. Nesma & Partners (Saudi Arabia)
    21. Modern Building Leaders (Saudi Arabia)

    The latest development follows US-based engineering firm Populous winning a BD5m ($13.5m) contract for the development, as MEED reported.

    Populous’ scope covers pre-contract consultancy services, including finalising the masterplan and internal infrastructure, completing phase 1A design works and preparing tender documents.

    The contract was first tendered in 2021, when Populous emerged as the sole bidder.

    At the time, it was reported that the Sports City project would include Bahrain’s largest sports stadium and a multipurpose indoor sports arena.

    The project is expected to provide renewed impetus to Bahrain’s construction and transport sector, which has struggled in recent years, with the total value of awarded contracts falling for a third consecutive year.

    According to regional project tracker MEED Projects, about $400m-worth of contracts had been awarded in Bahrain by the end of October last year – less than half the $1.2bn recorded during the same period the previous year.

    The sector has yet to return to pre-pandemic levels. Before 2020, Bahrain consistently awarded more than $2bn in contracts annually, peaking at nearly $4bn in 2016.

    Bahrain’s construction industry is forecast to record average annual growth of 4.9% in 2026-29, supported by investments in transport infrastructure and renewable energy projects aligned with Bahrain’s Economic Vision 2030.

    Vision 2030 includes the BD11.3bn ($30bn) Strategic Projects Plan, unveiled in October 2021, encompassing 22 national infrastructure projects. It also includes plans to create five new cities by 2030: Fasht Al-Jarm, Suhaila Island, Fasht Al-Azem, Bahrain Bay and Hawar Islands.

    Growth over the forecast period is also expected to be driven by investments under the National Renewable Energy Action Plan, which targets a 30% reduction in carbon emissions by 2035, compared to 2015 levels, and aims to achieve net-zero emissions by 2060.

    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:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19670426/main.jpg
    Yasir Iqbal
  • Riyadh Expo signs private real estate development deal

    15 September 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia's Expo 2030 Riyadh Company (ERC) has signed an agreement with Riyadh-based developer Mohammed Al-Habib Real Estate Company to develop and deliver Expo Village, the event's residential community.

    The project will comprise about 2,300 apartments, housing around 5,500 residents, alongside retail and dining outlets, amenities, services and operational facilities.

    The community will be connected to the Expo 2030 Riyadh site via the Expo metro station, as well as to King Khalid International airport and the city’s wider transport network.

    The deal marks ERC’s first private-sector partnership deal for the site.

    The latest agreement comes as ERC is gearing up to deliver several components of the site. Tendering is ongoing for the Saudi Arabia pavilion, and another tender is out for the delivery of the Souq areas within the expo site.

    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, 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 to the 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.

    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:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19665616/main.jpg
    Yasir Iqbal