Petronas wins Abu Dhabi onshore concession licence

2 October 2024

Register for MEED's 14-day trial access 

Abu Dhabi’s government has awarded Malaysia’s state oil company Petronas full exploration rights for Onshore Block 2 in the emirate.

Onshore Block 2 is located within the Al-Dhafra region of Abu Dhabi, covering an area of about 7,320 square kilometres. Under the concession agreement issued by Abu Dhabi’s Supreme Council for Financial and Economic Affairs (SCFEA), Petronas will hold 100% equity and assume operatorship during the exploration period.

This is the third hydrocarbon exploration agreement Petronas has won in Abu Dhabi. The Malaysian firm previously won full exploration rights for Unconventional Block 1 in 2022 and Unconventional Block 5 in 2024.

Onshore Block 2 was initially offered in Abu Dhabi’s first-ever upstream licensing round launched in 2018, and conducted by Abu Dhabi National Oil Company (Adnoc), but went unsold.

Abu Dhabi included the block in the second bid round in 2019, but had, so far, been unsuccessful in attracting foreign exploration and production firms, who invested in the other blocks on offer.

The award of exploration rights for Onshore Block 2 to Petronas, therefore, concludes Abu Dhabi’s first and second upstream concession licensing rounds.

Separately, SCFEA recently awarded an Indian consortium of state-owned companies, Indian Oil Corporation and Bharat Petroleum Corporation Limited, a production concession agreement for Onshore Block 1 in the emirate.

The production concession agreement grants the Indian consortium, known as Urja Bharat, 100% concession rights for Onshore Block 1, which covers a total area of up to 6,162 sq km.

Onshore Block 1 was among six hydrocarbon blocks offered in 2018.

The award of the production licence follows 100% exploration rights for Onshore Block 1 that Urja Bharat won in March 2019. The Indian consortium invested nearly $164m during the exploration phase.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12634025/main.png
Indrajit Sen
Related Articles
  • French contractor begins work on Morocco’s Noor Atlas project

    24 March 2026

     

    France-headquartered Eiffage is carrying out construction works on phase one of Morocco’s 305MW Noor Atlas solar photovoltaic (PV) programme, according to sources close to the project.

    Morocco’s National Office of Electricity & Drinking Water (Onee) and the Moroccan Agency for Sustainable Energy (Masen) recently signed power purchase agreements (PPAs) for the programme covering the development, financing, construction, and operation of six solar PV power plants.

    The plants were tendered in two lots in 2022, covering the eastern and southern parts of the country.

    The first lot comprises the following four projects:

    • Ain Beni Mathar: 121MW
    • Enjil: 42MW
    • Boudnib: 33MW
    • Buonane: 29MW

    The second lot comprises two solar PV projects in Tan-Tan and Tata, with each having a planned capacity of 40MW.

    Eiffage, through its subsidiary Clemessy Maroc, previously carried out electrical works on Morocco’s Noor Tafilalt solar programme.

    However, it is understood that the contract for lot one is the company’s first role as full engineering, procurement and construction contractor for a solar project in the region.

    Local media reports previously said plants under the programme will be developed by consortiums comprising Moroccan and European companies.

    Contractor details for phase two of the project have not been disclosed. However, it is understood that construction work has begun, with the project scheduled to begin delivering electricity by July 2027.

    In 2025, Masen established a dedicated subsidiary (Noor Atlas Energy Company) to oversee the project’s implementation.

    Germany’s development bank KfW and the European Investment Bank (EIB) are providing concessional financing, while Bank of Africa is providing commercial financing (local) for the project.

    US/India-based Synergy Consulting is acting as consultant on the project.

    In May 2025, Onee obtained EIB financing of €170m and KfW financing of €130m to expand the national grid by 731  kilometres and increase its evacuation capacity by 1,850 MVA.

    EIB previously announced in 2018 that it is providing concessional financing of €129m under the ELM guarantee for Noor Atlas, against a total project cost of €272m.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16100781/main.jpg
    Mark Dowdall
  • Kuwait contractor wins Shagaya power grid deal

    24 March 2026

    Kuwait-based contractor Power Grid Company has won a KD48.6m ($158.7m) contract to build a 400kV overhead transmission line linking the Shagaya solar energy generation station with Wafra in southern Kuwait.

    The contract was awarded by Kuwait’s Ministry of Electricity, Water & Renewable Energy (MEWRE).

    Power Grid was one of three firms that submitted bids last year, according to regional projects tracker MEED Projects.

    The other bidders included India’s Larsen & Toubro, with an offer of $135m, and Kuwait’s National Contracting Company, with a bid of $140m.

    The transmission line will connect Shagaya to the Wafra (Z) transformer station. The project forms part of the wider Shagaya masterplan, which is being developed as a key component of Kuwait’s renewable energy strategy, including the Shagaya renewable energy complex.

    The Kuwait Authority for Partnership Projects (Kapp) is currently procuring a 500MW solar photovoltaic (PV) independent power project (IPP) in partnership with MEWRE.

    As MEED exclusively reported, the deadline to bid for a contract to develop the plant was recently pushed back to the end of April.

    The plant is being developed under zone two of the third phase of the Al-Dibdibah power and Al-Shagaya renewable energy project.

    In January, three consortiums submitted bids for a contract to develop Kuwait’s first utility-scale solar PV plant.

    The Al-Dibdibah power and Al-Shagaya renewable energy phase three, zone one IPP will have a total power generating capacity of 1,100MW.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16097432/main.jpg
    Mark Dowdall
  • Prequalification begins for Cairo Metro Line 2 upgrade

    24 March 2026

     

    Egypt’s National Authority for Tunnels (NAT) has issued a request for prequalification (RFQ) notice inviting firms to prequalify for a contract to rehabilitate and upgrade the Cairo Metro’s Line 2 network.

    The notice was issued in mid-March. The prequalification submission deadline is 30 April.

    According to the official notice, the scope of the works includes the design, execution, supply, installation, testing and commissioning of major system upgrades across the Cairo Metro Line 2 infrastructure and stations, along with integration into existing operational systems.

    The project aims to refurbish and modernise the metro line systems and enhance onboard communications across the current rolling stock fleet, to extend the metro system’s operational lifespan by at least 25 years.

    The contract duration is five years.

    The project is receiving a financing grant of €250m ($263m) from the European Bank for Reconstruction and Development (EBRD), €240m ($252m) from the European Investment Bank (EIB) and €60m ($63m) from the Egyptian government.

    Cairo Metro Line 2 has been operational since 1996. The line runs from Shubra El-Kheima to El-Mounib, spanning about 21.5 kilometres (km) with 20 stations.

    The route includes 12 underground stations, six at-grade stations and two elevated stations.

    The track infrastructure is built around two primary track configurations.

    The line carries about 1.8 million passengers a day.

    The project is part of NAT’s key planned railway projects in the country. According to NAT’s official website, eight key projects, including metro lines, high-speed rail and light rail transit, are currently in the pipeline.

    According to GlobalData, the Egyptian construction industry is expected to grow by 6.4% in 2026, supported by rising foreign direct investment in the country, coupled with the government’s investment in energy and industrial construction projects.

    The industry’s expansion in the forecasted period will be supported by investments outlined in Egypt’s financial year 2025-26 budget, approved in June 2025. The budget includes a total government spending of E£4.6tn ($91.3bn).

    The infrastructure construction sector is expected to expand by 6.9% from 2026 to 2029, supported by investments in road, rail and port infrastructure projects.

    According to MEED Projects, Egypt has been the most active market for the rail sector in the Mena region, with contracts worth over $34bn awarded in the past decade.


    MEED’s March 2026 report on Egypt includes:

    > COMMENT: Egypt’s crisis mode gives way to cautious revival
    > GOVERNMENT: Egypt adapts its foreign policy approach

    > ECONOMY & BANKING: Egypt nears return to economic stability
    > OIL & GAS: Egypt’s oil and gas sector shows bright spots
    > POWER & WATER: Egypt utility contracts hit $5bn decade peak
    > CONSTRUCTION: Coastal destinations are a boon to Egyptian construction

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

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16097414/main.jpg
    Yasir Iqbal
  • Contractors submit bids for Safaniya onshore facilities project

    24 March 2026

     

    Contractors have submitted bids to Saudi Aramco for a project to build onshore surface facilities to boost productivity at the Safaniya offshore oil field development in Saudi Arabia.

    The Safaniya field is the world’s largest offshore oil field, with a production capacity of nearly 1.2 million barrels a day (b/d). Discovered in 1951, the field is located in the Gulf waters, approximately 265 kilometres north of Aramco’s headquarters in Dhahran.

    Contractors submitted bids for the Safaniya onshore surface facilities project by the deadline of 17 March, according to sources.

    Aramco issued the main tender for engineering, procurement and construction (EPC) works on the Safaniya onshore surface facilities project on 9 July last year.

    Contractors were initially given deadlines of 24 October and 7 November to submit technical and commercial bids for the project, MEED previously reported. Aramco later merged the technical and commercial bid submission requirements and extended the techno-commercial proposal submission deadline until 31 January.

    Prior to that, Aramco is understood to have issued the solicitation of interest document for the Safaniya field onshore surface facilities project in May, with contractors submitting responses by 28 May.

    The EPC scope of work has been divided into two packages:

    • Package 1 – Water treatment and injection plant:
      • Building new water injection units
      • Expansion of gas-oil separation plant one
      • Building storage tanks, transfer pumps and substation
      • A central processing facility at the Zuluf field development, including water transfer pumps, chemical injection skids and other components
         
    • Package 2 – Produced water utilities:
      • Fire water system
      • Potable water units
      • Utilities
      • Nitrogen generation system
      • Site buildings
      • Electrical infrastructure
      • Security systems
      • Telecommunications networks

    In addition to pursuing the onshore facilities project to boost Safaniya’s productivity, MEED also previously reported that Aramco had issued three key offshore tenders last year for the field’s next expansion phase.

    Contractors in Aramco’s Long-Term Agreement pool of offshore service providers submitted bids for the three tenders – Contracts Release and Purchase Order (CRPO) numbers 154, 155 and 156 – by 31 August.

    Aramco awarded Italian contractor Saipem the EPCI contract for CRPO 156, valued at an estimated $500m, in February. The scope of work on the contract covers the EPCI of a 48-inch trunkline, comprising approximately 65 kilometres offshore and 12km onshore, as well as associated subsea facilities at the Safaniya oil field.

    The Saudi energy giant is evaluating bids for the other two tenders for the Safaniya offshore field expansion project and is expected to award contracts within the first quarter.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16097410/main1828.jpg
    Indrajit Sen
  • Local firm wins Al-Ras Dubai Walk masterplan deal

    24 March 2026

     

    Abu Dhabi-based firm Western Bainona Group has won a contract from Dubai’s Roads & Transport Authority (RTA) to develop the first phase of the Dubai Walk masterplan in the Al-Ras area.

    The project’s first phase focuses on developing the historic Al-Ras walkway, including 12 kilometres (km) of pedestrian paths and 5km of cycling tracks, along with the rehabilitation of 10 artistic spaces.

    The Al-Ras walkway project will link pedestrian routes with 11 metro stations, bus stops and marine transport points to improve first- and last-mile access.

    The RTA said that the works include upgrades to internal pedestrian paths and the waterfront promenade, using straightforward urban design interventions that will maintain the area’s historic identity.

    Planned improvements include wider sidewalks, added shade elements, more seating, increased greenery and heritage-sensitive wayfinding signage.

    The overall masterplan includes extending a connected pedestrian network across 160 locations, with plans to build and upgrade around 6,000km of walkways throughout the emirate by 2040.

    It also includes developing 110 pedestrian bridges and underpasses to improve links between districts, supporting a shift in walking and other low-impact mobility from 16% of trips in 2025 to 25% by 2040.

    Proposed highlights include a bridge on Al-Ittihad Street between Al-Nahda and Al-Mamzar; another on Tripoli Street linking Al-Warqa with Mirdif; a crossing on Al-Khawaneej Street connecting Mushrif and Al-Khawaneej; and a bridge on Dubai-Al-Ain Road tying Dubai Silicon Oasis to Dubailand.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16097076/main.jpeg
    Yasir Iqbal