Kuwait power shift could spark oil boom

4 January 2024

 

The recent change of emir in Kuwait could potentially spark a record-breaking boom in oil and gas projects in the country, according to some stakeholders.

Over recent years, Kuwait has struggled to gain final approval for major oil and gas projects due to political issues.

This has led to a large backlog of significant projects that are now either ready or very nearly ready to tender.

Kuwait’s new emir, Sheikh Mishal al-Ahmad al-Sabah, was formally sworn in before parliament to begin his rule over the country on 20 December last year.

He has taken over from his half-brother, Sheikh Nawaf al-Ahmad al-Sabah, after his death on 16 December.

After being sworn in, Sheikh Mishal berated authorities for having previously appointed people to positions “that are not consistent with the simplest rules of justice and fairness”.

If he can prove that his statements in this speech were more than just rhetoric, it could have major implications for the country’s oil and gas industry.

Project potential

Industry sources believe that if Sheikh Mishal manages to form a government capable of working with parliament and pushing through legislation, it could lead to a surge in tendering and contract awards in the oil and gas sector.

MEED has revealed that the state-owned upstream oil company Kuwait Oil Company (KOC) has a list of 10 projects collectively worth $6.4bn, and aims to tender them all over the next three months.

If this goes according to plan and all of the projects are awarded before the end of 2024, it will make it the best year for upstream projects in more than 20 years.

The last time Kuwait awarded anything close to this figure was in 2015, when $4.15bn in upstream contracts was awarded.

Looking more broadly at the sector as a whole, these planned KOC contracts could put Kuwait on track to have its best year for oil and gas contract awards since 2015, which saw $18.29bn-worth of awards.  

Just $1.15bn in oil and gas projects was awarded in Kuwait last year, and only $372m the year before that.

Caution inevitable

While there is no doubt that Kuwait has the potential for a record-breaking year in terms of contract awards in 2024, many stakeholders are still uncertain whether the plans will be executed as planned.

Their caution is understandable, given that Kuwait has failed to push through significant projects for such a long time now, and the oil and gas sector is suffering from considerable inertia.

Over recent years, due to the lack of contract awards, many international contractors have closed their offices in Kuwait to focus on markets that provide more opportunities, such as Saudi Arabia and the UAE.

One stakeholder based in Kuwait said: “It’s still far too early to tell what is going to happen as a result of the new emir being named. We need time for the dust to settle before we raise our hopes.”

Talks under way

Others are more optimistic about the changes and believe the scene has been set for a new era in the country’s oil and gas sector.

Speaking to MEED, some contractors within Kuwait have said they are already in new talks with international engineering, procurement and construction (EPC) companies interested in potential oil and gas project opportunities in the country.

The more optimistic contractors believe that Sheikh Mishal’s background in the country’s security and intelligence apparatus has given him the skills he needs to push the political elite to work together and create momentum in the Kuwaiti project market.

Before becoming crown prince, Sheikh Mishal was deputy chief of the Kuwait National Guard (KNG), where he led a reform of the agency and a crackdown on corruption.

One source said: “Sheikh Mishal is well versed in how to make people do what he wants and he has made it very clear that he wants a functioning parliament and government.

“He has always been known for his discipline and his ability to persuade people to adopt certain positions that suit his objectives.

“We believe there will be a significant uptick in activity in the oil and gas projects sector this year.

“Already, we are seeing visits to Kuwait from Chinese companies and other international EPC contractors and developers.

“Kuwait remains a small country compared to Saudi Arabia and the opportunities are smaller, but they are still good opportunities and international contractors have recognised that the future is promising.”

New era

Sheikh Mishal is due to form his government next week. This process will likely be closely watched by international contractors considering a return to the country.

If he successfully puts together a government that international companies believe will be able to progress important projects, then it may well mark a new era for Kuwait’s oil and gas sector.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11409474/main.gif
Wil Crisp
Related Articles
  • Contractor wins $197m Doha infrastructure works

    6 November 2026

     

    Register for MEED’s 14-day trial access 

    Qatar’s Public Works Authority (Ashghal) has awarded an estimated QR722m ($197m) contract to develop roads and infrastructure north of Al-Rifaa Street in Doha.

    The contract was awarded to local firm Tadmur Contracting Company.

    Six other contractors submitted bids: 

    • Qatar Trading & Contracting Group ($244m)
    • Iris Construction Tourism Industry & Trade ($259m)
    • Lotus Trading & Contracting ($260m)
    • Generic Engineering Technologies & Contracting ($261m)
    • Alghanim International / National Industrial Contracting ($268m)
    • Hamad Bin Khalid Contracting Company ($281m)

    The scope of work covers the construction of more than 34 kilometres of roads, dedicated plot developments, site clearance, backfill and earthworks.

    The package also requires the installation of surface and groundwater drainage systems, a foul-water drainage network and treated sewage effluent lines.

    In addition, the contractor will deliver a dedicated pumping station, an emergency flood area pond, 3,735 car parking spaces, road cross-sectional elements and verge parking bays.

    Secondary infrastructure works include electrical distribution, water mains, utility lines, manholes, gully pots and house connections, along with kerbing, road pavement works, landscaping, street lighting, road markings and directional signage.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21204827/main.jpg
    Yasir Iqbal
  • Stakeholders aim to sign Iraq pipeline deal by year end

    6 November 2026

     

    Stakeholders expect a key contract to be signed before the end of the year for the development of a major oil export pipeline network in Iraq, according to industry sources.

    Iraq and Syria’s governments, state-owned oil companies and a consortium led by Qatar’s UCC are currently discussing the terms.

    If all parties agree to the proposed deal, the UCC-led coalition will become the selected developer responsible for tendering engineering, procurement and construction (EPC) contracts for the project.

    The consortium includes US-based Chevron, the investment company TI Capital and France’s TotalEnergies.

    The proposed plan will use a fast-track framework to bring the pipelines online as quickly as possible.

    One source said: “The plan that is being discussed is highly unusual, because it is such a large-scale pipeline project and it would be brought online in a relatively short timeframe.”

    A team from UCC is currently in Iraq for meetings with government officials to discuss the project, one source said.

    The project will be focused on four pipeline packages:

    • Basra to Najaf
    • Najaf to Haditha
    • Haditha to Fish Khapour
    • Haditha to Banias Port in Syria

    In July, Iraq’s cabinet approved state-owned Basra Oil Company signing a ​heads of agreement and a non-disclosure agreement with the UCC-led consortium to explore possible future oil pipeline projects.

    Under the terms of the agreement, the consortium is preparing technical and financial feasibility studies for strategic export pipeline projects.

    Also in July, US-based KBR was awarded a consultancy contract for the section of pipeline due to extend from Basra to Haditha.

    In April, Iraq announced the allocation of $1.5bn for the Basra-Haditha route, while the larger scheme is estimated at around $5bn.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21181262/main.jpg
    Wil Crisp
  • Taqa shortlists 17 contractors for Mirfa-Liwa scheme

    6 November 2026

     

    Up to 17 contractors have been invited to submit bids for a major water transmission and distribution scheme serving Mirfa, Madinat Zayed and Liwa in Abu Dhabi, a source close to the project has confirmed to MEED.

    The project, originally estimated to cost $775m, comprises a water transmission system from Mirfa, alongside distribution networks serving farms and settlements in Abu Dhabi’s western region.

    In October, MEED exclusively reported that a request for proposals had been issued, with bids due on 5 January 2027, following an extension from the initial deadline of 11 November 2026.

    The Mirfa-Liwa scheme has been in procurement for several years and was previously tendered in December 2024 as an engineering, procurement and construction scheme, divided between transmission and distribution works.

    As MEED understands, it was recently re-tendered under a design, build and operate model, extending the contractor’s responsibilities to operating the infrastructure after construction.

    According to sources, the full list of contractors invited to bid for the tender includes:

    • Afcons Infrastructure (India)
    • Alkhorayef Water & Power Technologies (Saudi Arabia)
    • China Machinery Engineering Corporation (China)
    • China National Chemical Engineering (China)
    • China Tiesiju Civil Engineering Group (China)
    • Danway Electrical & Mechanical Engineering (UAE)
    • Emarat Aloula Contracting (UAE)
    • FCC Aqualia (Spain)
    • Gulf Contractors Company (UAE)
    • Hydropower Energy & General Construction (UAE)
    • Jereh Oil & Gas Engineering Corporation (China)
    • Mapa (Turkiye)
    • Nesma & Partners Contracting Company (Saudi Arabia)
    • Orascom Construction (Egypt)
    • Power Construction Corporation of China (China)
    • Tecton Engineering & Construction (UAE)
    • Tristar Engineering & Construction (UAE)

    According to details seen by MEED, the scope includes a pumping station at Mirfa with a capacity of 128 million imperial gallons a day, approximately 125 kilometres of transmission pipelines to Muzairah, with branches to Madinat Zayed and Liwa Summit, and storage tanks at the three locations.

    The distribution network is divided into four geographic clusters covering Liwa East, Liwa West, Madinat Zayed and Seih Al-Kheir. The works include associated pipelines, pumping stations and storage facilities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21181223/main.jpg
    Mark Dowdall
  • Gulf conflict cuts Emirates Group profit by 66%

    6 November 2026

    Register for MEED’s 14-day trial access 

    Dubai’s Emirates Group made a profit before tax of AED4.1bn ($1.1bn) in the first half of its 2026-27 financial year, 66% less than the AED12.2bn it made in the same period last year.

    The six months to 30 September were the group’s first full half-year since military activity disrupted commercial air traffic across the Gulf on 28 February. Group revenue fell 12% to AED66.2bn ($18bn), from AED75.4bn a year earlier. Profit after tax fell 66% to AED3.6bn ($1bn).

    Earnings before interest, tax, depreciation and amortisation (Ebitda) fell 41% to AED12.5bn ($3.4bn).

    The results follow a record 2025-26 financial year. The group made a profit before tax of AED24.4bn in that year, on revenue of AED150.5bn.

    “It has been a demanding six months, and once again our business model and our people stood up to the test,” said Sheikh Ahmed Bin Saeed Al-Maktoum, chairman and chief executive of Emirates Airline and Group. “Customer demand held firm and our cargo operations made a strong contribution, keeping revenue and cash levels healthy even as global jet fuel prices doubled against the same period last year.”

    Airline performance

    Emirates airline’s profit before tax fell 68% to AED3.7bn ($1bn), compared with AED11.4bn a year earlier. Its revenue fell 13% to AED56.9bn ($15.5bn). The airline carried 21.8 million passengers, 22% fewer than a year earlier. Capacity measured in available seat kilometres fell 17%, and the passenger seat factor dropped to 72% from 79.5%.

    Cargo partly offset the drop in passenger numbers. Emirates SkyCargo carried 1.2 million tonnes, 1% less than a year earlier, but its revenue rose 52%. The conflict reduced the airfreight capacity available on the market, and disruption to shipping pushed shippers towards air transport.

    Before hedging gains, fuel costs rose 60%, even though the airline uplifted 12% less fuel. Gains of AED7.1bn ($1.9bn) from fuel hedging cut the net increase in fuel costs to 13%. Fuel accounted for 34% of operating costs.

    On 30 September, Emirates was operating 91% of its pre-disruption network, serving 150 airports in 78 countries and territories. On 31 March, it had been flying 58% of its passenger capacity to 122 destinations in 65 countries.

    Fleet investment

    The airline received nine Airbus A350s and five Boeing 777 freighters during the period. Its fleet grew to 289 aircraft, from 277 on 31 March. Emirates is continuing its cabin retrofit programme, a planned investment of more than $7bn. It refurbished 12 aircraft in the first half. In May, it broke ground on a $5.1bn engineering and maintenance, repair and overhaul (MRO) facility at Al-Maktoum International airport, which is expected to be completed in the mid-2030s.

    The group’s cash position was AED54.1bn ($14.7bn) on 30 September, down from a record AED59.6bn on 31 March. The group said it had used its reserves to make pre-delivery payments for aircraft and to service existing debt. It also paid the remaining AED2bn of the AED3.5bn dividend declared for 2025-26 to its owner, the Investment Corporation of Dubai.

    Ground services and travel company dnata made a profit before tax of AED410m ($112m), down 51%. Its revenue fell 7% to AED11bn ($3bn), and the group said dnata’s international businesses helped offset weaker traffic in the UAE.

    The group’s workforce fell 2% to 128,237 people.

    “We enter the second half of our 2026-27 financial year with measured optimism,” said Sheikh Ahmed.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21198114/main.jpg
    Colin Foreman
  • King Salman airport tenders roads and utilities package

    6 November 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s King Salman International Airport Development Company (KSIADC) has tendered the Zone C1+C2 roads, bridges and utility networks package for King Salman International airport (KSIA) in Riyadh.

    The tender was issued on 26 October, and bids are due by 6 December.

    The request for proposals covers the procurement, construction, testing and commissioning of civil infrastructure supporting Terminal 6, alongside the existing Terminals 1-5.

    The scope includes upgrades to Airport Road 539, which runs west of Terminals 1-5, and to part of Mohamed Bin Faraj Road 5333, west of Junction 6.

    It also includes new roads, ramps, service roads, and signalised at-grade junctions. An additional access road will connect the Terminal 6 site offices to Road 5333.

    Structures will include the Junction 6 and Terminal 6 bridges, retaining walls and reinforced-soil structures.

    The contractor will also construct the central ground services equipment (GSE) bridge. Before construction begins, the contractor must validate the design, complete any outstanding elements – including mechanically stabilised earth walls, approach slabs, drainage and lighting – and secure the required authority approvals.

    Dry utilities will comprise high- and extra-high-voltage containment, a 13.8kV medium-voltage network with package substations, low-voltage distribution and street lighting, and security-surveillance systems.

    Wet utilities will include potable water, fire water, irrigation water, treated sewage effluent, district cooling and wastewater networks. Wastewater pipes will range from 200mm u-PVC gravity lines to 1,700mm glass-reinforced plastic mains.

    The stormwater network will include channels, culverts, ponds and pipes ranging from 400mm to 1,400mm in diameter. Crossings will be constructed using open-cut excavation, horizontal directional drilling or microtunneling.

    Utilities serving the operational terminals will be diverted on a design-and-build basis. Enabling works will include earthworks and the relocation of the security fence and trees. The contractor will also demolish a temporary car park, existing bridges and a sewage pumping station.

    Optional works comprise two design-and-build elements that will proceed only at the client’s instruction.

    The first is the south GSE bridge. The second is an approximately 1,400-metre, multi-lane access road to the Terminal 6 Transportation Hub, including bridges, underpasses, ramps and tunnels, as well as provisions for future Wadi Loop utilities and structures.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21176175/main.png
    Yasir Iqbal