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• 
  Chevron yet to agree terms for Iraq oil field takeover

  12 March 2026

  

   

  US-based oil company Chevron is yet to agree terms with Iraqi state-owned Basra Oil Company (BOC) for its potential takeover of Iraq’s West Qurna-2 oil field, according to industry sources.

  Last month, Chevron signed a preliminary agreement with BOC to explore taking control of the West Qurna-2 oil field.

  Until recently, West Qurna-2 was operated by Russia’s Lukoil, which faces a 28 February deadline to divest its assets in Iraq under sanctions.

  One industry source said: “Chevron is yet to agree terms, and it has made it clear that it wants different terms to the contract that Lukoil had.”

  In January, Iraq’s cabinet approved temporarily nationalising petroleum operations at the West Qurna-2 oil field until a new operator was found.

  Lukoil declared force majeure at the West Qurna-2 oil field in November, after sanctions by the UK, EU and US were announced in October.

  The Russian company had a 75% stake in the asset.      

  Prior to Russia’s Lukoil declaring force majeure, Iraq’s state oil authorities froze all cash and crude payments to Lukoil in compliance with the sanctions.

  In a statement released on 1 December 2025, Iraq’s Oil Ministry said that it had extended “direct and exclusive invitations to a number of major American oil companies”.

  Awarded to Lukoil in 2009, West Qurna-2 lies about 65 kilometres northwest of Basra in southern Iraq and produces about 480,000 barrels a day (b/d) of oil, accounting for roughly 10% of the country’s total oil output.

  At the same meeting on 23 February, Chevron also signed a deal relating to the development of the Nasiriyah field, four exploration sites in the province of Dhi Qar and a field in the province of Salahaddin.

  Chevron signed an agreement in principle with Iraq in August 2025 to develop the Nasiriyah oil project in the province of Dhi Qar.

  At the time, Iraq said it expected the Nasiriyah project to reach a production capacity of 600,000 b/d within seven years.

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  READ THE MARCH 2026 MEED BUSINESS REVIEW – click here to view PDF

  Riyadh urges private sector to take greater role; Chemical players look to spend rationally; Economic uptick lends confidence to Cairo’s reforms.

  Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes:

  > AGENDA: Saudi Arabia’s private sector picks up the baton > RAMADAN: Data disproves the Ramadan slowdown story > INDUSTRY REPORT: Chemicals producers look to cut spending > INDUSTRY REPORT: Global petrochemical project capex set to rise until 2030 > MARKET FOCUS: Egypt’s crisis mode gives way to cautious revival > LEADERSHIP: Delivering Saudi Arabia’s next phase of rail growth > POWER: Lessons learnt from a power plant decommissioning > INTERVIEW: Abu Dhabi’s Enersol charts acquisitions path > INTERVIEW: Lina Noureddin, CEO of Lamar Holding, on the evolving PPP landscape > INTERVIEW: Contract award marks Metito’s return to municipal projects

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

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  Wil Crisp
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  Egyptian/Saudi firms to invest $1.4bn in Cairo project

  12 March 2026

  Saudi Arabia’s Sumou Investment, through its subsidiary Adeer International, and Egyptian developer Paragon Developments have signed an agreement to jointly develop a mixed-use project in Mostakbal City, East Cairo.

  According to local media reports, the project will cover about 500,000 square metres and will be developed with a total investment of about $1.4bn.

  The project will be developed by Paragon-Adeer, a joint venture of Paragon Developments and Adeer International.

  The announcement follows a $1.4bn deal signed in July last year between Adeer International and another Egyptian developer, Midar, to jointly develop a mixed-use project in Mostakbal City.

  Midar, Sumou Investment and Hassan Allam Properties are partnering to develop $2bn in hospitality and leisure projects across several locations in Cairo within Midar-owned land parcels. 

  According to GlobalData, Egypt’s residential construction sector is expected to grow by 8.3% from 2026 to 2029, supported by investments in the housing sector and the government’s focus on addressing the country’s growing housing deficit amid a rising population.

  The commercial construction sector is expected to register real-term growth of 6.6% during 2026-29, supported by a rebound in tourism and hospitality markets and an improvement in investment in office buildings and wholesale and retail trade activities.

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  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

   

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  Yasir Iqbal
• 
  Egypt raises gas prices by 30% amid Iran war

  11 March 2026

  Register for MEED’s 14-day trial access 

  Egypt’s Petroleum & Mineral Resources Ministry increased the price of several petroleum products and natural gas for vehicles on 9 March, according to official statements.

  The price of natural gas for vehicles has been put up by 30% to E£13 ($0.25) a cubic metre.

  The price of diesel has gone up by 17% to E£20.5 a litre, while 95-octane petrol has been put up by 14.2% to E£24 a litre.

  The new prices were put into effect early on 10 March and come amid soaring global energy prices in the wake of the US and Israel attacking Iran on 28 February.

  Egypt’s Petroleum & Mineral Resources Ministry said: “This comes in light of exceptional circumstances resulting from geopolitical developments in the Middle East and their direct impact on global energy markets, which have led to a significant increase in import and domestic production costs.

  “Disruptions in supply chains, increased risk levels and higher shipping and insurance costs have resulted in a substantial surge in global crude oil and petroleum product prices, levels not seen in energy markets for years.”

  The statement also said that Egypt is continuing efforts to boost domestic production and reduce the country’s import bill.

  Egypt, the Middle East and North Africa region’s biggest liquefied natural gas (LNG) importer, is facing uncertainty over its LNG supplies in coming months.

  Between March 2025 and February 2026, Egypt imported 9,440 kilotonnes of LNG, with the majority of its imports purchased through short-term agreements, mainly with third parties like trading houses.

  Last year, it was reported that Egypt had signed deals for around 150 cargoes through to the summer of 2026.

  While much of Egypt’s LNG is likely to come from the US, and will not be directly impacted by the effective closure of the Strait of Hormuz, the recent surge in LNG prices could mean that the North African country will struggle to afford shipments.

  Exacerbating the need for increased LNG imports, on 28 February, Israel shut down production from its offshore gas fields due to security concerns, cutting pipeline exports to Egypt.

  Prior to the fields being taken offline, Egypt was importing about 1.1 billion cubic feet a day from the Tamar and Leviathan fields.

  On 4 March, addressing concerns about energy supplies in the country, Prime Minister of Egypt Mostafa Madbouly said that Egypt had just concluded “several contracts” to procure gas shipments at “preferential prices”, in cooperation with several countries and international companies.

  However, he did not provide details about the exact pricing of the deals.

  On top of the LNG deals Egypt has with trading houses, in January, Cairo signed a memorandum of understanding with Qatar related to 2026 LNG imports.

  The preliminary deal included plans for 24 LNG deliveries through the summer of this year, when energy demand typically peaks.

  Now, the shuttering of Qatar’s export terminals and the effective closure of the Strait of Hormuz are casting a shadow over the deal and there is increased uncertainty over whether these deliveries will be executed.

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  Wil Crisp
• 
  Delays expected to $3.3bn Kuwait gas project due to Iran war

  11 March 2026

  Register for MEED’s 14-day trial access 

  Significant delays are now expected for state-owned Kuwait Gulf Oil Company's (KGOC's) planned tender for the development of an onshore gas plant next to the Al-Zour refinery, according to industry sources.

  The project budget is estimated to be $3.3bn and the last meeting with contractors to discuss the project took place in Kuwait on 10 February.

  In February, contractors were told to expect the invitation to bid to be issued in late March, but this schedule is now expected to be extended significantly due to uncertainties created by the US and Israel attacking Iran on 28 February

  Under current plans, the plant will have the capacity to process up to 632 million cubic feet a day (cf/d) of gas and 88.9 million barrels a day of condensates from the Dorra offshore field, located in Gulf waters in the Saudi-Kuwait Neutral Zone.

  Ownership of the field is disputed by Iran, which refers to the field as Arash.

  Iran claims the field partially extends into Iranian territory and asserts that Tehran should be a stakeholder in its development.

  One source said: “Developing this gas field in the waters so close to Iran will be impossible in the current security environment.

  “Everyone is expecting extended delays to progress on this project and all related projects, such as the planned onshore processing facility in Kuwait.

  “The offshore elements of the project would be especially vulnerable to attacks from Iran and there are likely to be security concerns over the development of this field for some time to come.”

  In July last year, MEED reported that KGOC had initiated the project by launching an early engagement process with contractors for the main engineering, procurement and construction tender.

  France-based Technip Energies completed the contract for the front-end engineering and design.

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  Wil Crisp
• 
  Sharakat plan signals next phase of Saudi water expansion

  10 March 2026

  

   

  Sharakat, formerly Saudi Water Partnership Company, released its latest seven-year statement in March, outlining the next phase of the kingdom’s water infrastructure plans.

  According to the document, desalination capacity from Sharakat-procured projects is expected to rise from about 3.88 million cubic metres a day (cm/d) in 2025 to roughly 7.18 million cm/d by 2031, reflecting the continued reliance on desalinated water to meet rising urban demand.

  The expansion will be supported by seven additional independent water plants (IWPs) with a combined capacity of about 2.8 million cm/d, alongside projects already operating, under construction or in procurement.

  Against this backdrop, 2025 proved to be the busiest year for desalination awards since before the Covid-19 pandemic. Total water infrastructure awards also remained strong at $10bn, despite dipping on the two previous years.

  Desalination projects accounted for $2.2bn across four schemes. The largest award was the $700m Shoaiba 6 seawater reverse osmosis (SWRO) desalination plant, which will have a capacity of 500,000 cm/d.

  Another key development came when Sharakat awarded the contract to develop the Ras Mohaisen IWP on the Red Sea coast.

  The project will treat 300,000 cm/d of seawater using reverse osmosis technology and will supply areas including Mecca and Al-Bahah. The developer consortium is led by Acwa Power, which holds a 45% stake, alongside Haji Abdullah Ali Reza & Partners with 35% and Al-Kifah Holding with 20%.

  Transmission projects

  Large transmission infrastructure continues to move forwards, with new contracts reaching $6.2bn in 2025, more than 60% of total awards.

  This includes a contract with Sharakat to develop and operate the kingdom’s second independent water transmission pipeline (IWTP) project. The winning consortium comprises local firms Aljomaih Energy & Water, Nesma Company and Buhur for Investment Company.

  The 587-kilometre (km) pipeline, capable of transporting 650,000 cm/d of water, will link Jubail in the Eastern Province with Buraydah in the Qassim region. Construction is expected to begin in the second quarter of 2026.

  In December, local firm Vision Invest was named as the preferred bidder to develop and operate the 859km Riyadh-Qassim IWTP, Sharakat’s third IWTP project.

  Vision Invest’s offer to develop the project with a levelised tariff of SR2.627 ($0.70) a cubic metre was almost 20% lower than the next nearest bidder

  Further transmission projects are also advancing through Saudi Arabia’s Water Transmission Company (WTCO). 

  Bidding opened in September for the Jubail-Buraydah transmission scheme and the Ras Mohaisen-Baha-Mecca independent water transmission system, which together will deliver more than 1.38 million cm/d of water across central and western Saudi Arabia. An initial deadline was set for the end of the year, although this has been extended several times.

  WTCO has also issued a tender for the construction of a $700m IWTP project in Qassim, including a 350km water transmission pipeline and 11 storage tanks. The main contract bids are expected in the coming weeks.

  Storage and wastewater treatment

  Saudi Arabia’s national water strategy aims to build reserves equivalent to seven days of municipal demand, requiring more than 115 million cubic metres of storage capacity by 2030.

  Alongside this, Sharakat’s seven-year plan envisages wastewater treatment capacity rising from 1.79 million cm/d to about 3.19 million cm/d.

  In February, a consortium of Saudi utilities provider Marafiq, the regional business of France’s Veolia and Bahrain/Saudi Arabia-based Lamar Holding reached financial close on a $500m wastewater treatment plant in Jubail Industrial City 2

  The project will be developed under a concession-style model similar to a public-private partnership, with the developer consortium responsible for building and operating the plant over a 30-year period.

  Some developers have also started to return to the Saudi water market, with Metito CEO, Rami Ghandour, explaining: “We took a break for a few years from bidding for municipal projects in the kingdom as we felt the market was overheating.”

  A consortium of Metito, Etihad Water & Electricity (EtihadWE) and SkyBridge was named the preferred bidder for the Hadda independent sewage treatment (ISTP) in December with a levelised tariff of SR2.354 ($0.63) a cubic metre.

  Meanwhile, a group comprising Miahona, Marafiq and Buhur for Investment Company was selected as the preferred bidder for the Arana ISTP with a levelised tariff of SR1.35 ($0.36) a cubic metre. Both the Hadda and Arana ISTP projects in Mecca Province are set to reach financial close this year.

  Outlook

  The project pipeline suggests that large transmission projects will continue drive contract activity. About $9.3bn of projects are currently under bid evaluation, with water pipeline schemes accounting for more than half, while a further $12bn of projects are in prequalification.

  The request for proposals has already been issued for the Riyadh East ISTP, which will have a treatment capacity of 200,000 cm/d in its first phase, expanding to 400,000 cm/d in the second phase. The bid submission deadline is 2 April.

  On the desalination front, IWP schemes at Ras Al-Khair, Tabuk, Shuqaiq and Jizan, have seen shifts in expected procurement timelines following earlier prequalification rounds.

  The largest of these is phase two of the Ras Al-Khair IWP, which has been in development for more than a decade and involves the construction of a 600,000 cm/d reverse osmosis desalination plant.

  According to the revised timeline, the $400m Al-Shuqaiq 4 IWP project will be the first of seven planned IWPs to reach commercial operations in 2029. The main contract is set to be tendered later this year.

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  Mark Dowdall