Saipem wins $4bn Qatar offshore gas project contract
16 September 2024
Register for MEED's 14-day trial access
QatarEnergy LNG, a subsidiary of state enterprise QatarEnergy, has awarded Italian contractor Saipem an estimated $4bn engineering, procurement, construction and installation (EPCI) contract as part of the second phase of its North Field Production Sustainability (NFPS) project.
Saipem has won combined packages COMP3A and COMP3B of the NFPS project’s second phase, it said in a statement on 16 September.
The scope of work on the combined packages encompasses EPCI of a total of six platforms, approximately 100 kilometres (km) of corrosion resistance alloy rigid subsea pipelines of 28-inches and 24-inches diameter, 100km of subsea composite cables, 150km of fibre optic cables and several other subsea units.
The aim of the second phase of the NFPS project is to support QatarEnergy’s North Field liquefied natural gas (LNG) expansion programme.
The second NFPS phase will mainly involve building gas compression facilities to sustain and gradually increase gas production from Qatar’s offshore North Field gas reserve over the long term.
This is the second contract win for Saipem in the NFPS project’s second phase, which consists of four main EPCI packages.
Prior to winning combined packages COMP3A and COMP3B, QatarEnergy LNG awarded Saipem a $4.5bn order in October 2022 to build and install gas compression facilities.
The main scope of work on the package, which is known as EPCI 2, covers two large gas compression complexes that will comprise decks, jackets, topsides, interconnecting bridges, flare platforms, living quarters and interface modules.
The gas compression complexes – CP65 and CP75 – will weigh 62,000 tonnes and 63,000 tonnes, respectively, and will be the largest fixed steel jacket compression platforms ever built.
NFPS first phase
Saipem is executing the main EPCI works on the entire first phase of the NFPS project, which consists of two packages.
Through the first phase of the NFPS scheme, QatarEnergy LNG aims to increase the early gas field production capacity of the North Field offshore development to 110 million tonnes a year.
QatarEnergy LNG, formerly Qatargas, awarded Saipem the contract for the EPCI package in February 2021. The package is the larger of the two NFPS phase one packages and has a value of $1.7bn.
Saipem’s scope of work on the EPCI package encompasses building several offshore facilities for extracting and transporting natural gas, including platforms, supporting and connecting structures, subsea cables and anti-corrosion internally clad pipelines.
The scope of work also includes decommissioning a pipeline and other significant modifications to existing offshore facilities.
In addition, in April 2021, QatarEnergy LNG awarded Saipem two options for additional work within the EPCI package, worth about $350m.
QatarEnergy LNG awarded Saipem the second package of the NFPS phase one project, estimated to be worth $1bn, in March 2021.
Saipem’s scope of work on the package, known as EPCL, mainly covers installing three offshore export trunklines running almost 300km from their respective offshore platforms to the QatarEnergy LNG north and south plants located in Ras Laffan Industrial City.
Saipem has performed the front-end engineering and design work on the main production package of the first phase of the NFPS as part of a $20m contract that it was awarded in January 2019. This provided a competitive advantage to the Italian contractor in its bid to win the package.
Saipem expects to complete work on both packages of the first phase of the NFPS project by the end of 2024.
Exclusive from Meed
-
Riyadh sets December deadline for Prince Mishaal Road20 November 2025
-
Riyadh advances with rail link prequalifications20 November 2025
-
Local contractor bids low for $629m Kuwait oil project20 November 2025
-
Oman’s Marafiq retenders Duqm desalination plant20 November 2025
-
Wood Group wins Iraq oil contract20 November 2025
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Riyadh sets December deadline for Prince Mishaal Road20 November 2025

The Royal Commission for Riyadh City (RCRC) has allowed contractors until 3 December to submit bids for a contract to develop Prince Mishaal Bin Abdulaziz Road Axis-Taif Road in Riyadh.
The previous deadline was 19 November.
The scope of work covers general road improvement works, including street upgrades, drainage works, relocation of existing utilities, dry and wet utilities, and other associated infrastructure. RCRC is investing in improving the road network in and around the kingdom's capital.
Earlier in November, MEED reported that RCRC had begun post-tender clarifications with bidders for a contract covering upgrade works on Najm Al-Din Al-Ayoubi Road in Riyadh.
The scope of work covers general road improvement works, including upgrades to three bridges at Al-Zahabi Road, Abdulrahman Adakhel Road and Atia Al-Saady Road.
In February, RCRC announced plans to develop eight road projects in Riyadh at an estimated cost of more than SR8bn ($2bn).
The projects form part of the second group in the Riyadh Ring Roads and Main Axes development programme.
The schemes include:
- The northern part of the Prince Turki Bin Abdulaziz Al-Awwal Road development project, with a length of more than 6 kilometres (km). The scope includes the development of two main intersections, the construction of three bridges and a tunnel.
- The middle section of the Al-Thumama Road Axis development project. The scheme will cover about 10km and includes the development of five main intersections and the construction of 11 bridges and five tunnels.
- The Imam Abdullah Bin Saud Road development project, which will stretch about 9km and includes the development of four main intersections, the construction of three bridges and two tunnels.
- The Dirab Road development project, which will cover 9km and includes the development of two main intersections and the construction of nine bridges.
- The Imam Muslim Road development project, which stretches 12km and includes the development of four main intersections and the construction of four bridges. The project will serve as the future extension of the Prince Turki Bin Abdulaziz Al-Awwal Road Axis to the south.
- The road network development project surrounding King Abdullah Financial Centre, with a length of 20km. This includes the development of three main intersections and the construction of 19 bridges.
- The construction of a bridge at the intersection of King Salman Road in the east with Abu Bakr Al-Siddiq Road in the north.
- The first package of engineering modifications for crowded sites in Riyadh, encompassing improvements to alleviate traffic congestion during peak times.
In August last year, RCRC confirmed it had awarded four contracts worth SR13bn ($3.46bn) as part of the first phase of the programme to develop the city’s road network.
RCRC said the first phase will develop the axis of the main and ring roads to improve traffic movement in the city.
Other major projects by RCRC include Riyadh Metro, Riyadh Art, Sports Boulevard, King Salman International Park and the Green Riyadh project.
https://image.digitalinsightresearch.in/uploads/NewsArticle/15123861/main.jpg -
Riyadh advances with rail link prequalifications20 November 2025

Saudi Arabia Railways (SAR) is expected to begin the second stage of the prequalification process for a contract covering the construction of a new railway line, known as the Riyadh Rail Link, which will run from the north to the south of Riyadh.
MEED understands that the consortiums need to propose self-funded financing arrangements for the project as part of the new round of prequalifications.
Contractors submitted their initial prequalification documents earlier this month.
The scope of work includes constructing a 35-kilometre-long double-track railway line connecting SAR’s North-South Railway to the Eastern Railway network.
The contract also covers the procurement, construction and installation of associated infrastructure such as viaducts, civil works, utility installations, signalling systems and other related works.
The project is expected to form a key component of the Saudi Landbridge railway.
The Saudi Landbridge is an estimated $7bn project comprising more than 1,500km of new track. Its core component is a 900km new railway between Riyadh and Jeddah, which will provide direct freight access to the capital from King Abdullah Port on the Red Sea.
Other key sections include upgrades to the existing Riyadh-Dammam line and a link between King Abdullah Port and Yanbu.
The start of tendering activity for the Riyadh Rail Link project makes the construction of the Saudi Landbridge more likely.
The project is one of the kingdom’s most anticipated infrastructure programmes. Plans to develop it were first announced in 2004, but the project was put on hold in 2010 before being revived a year later.
Key stumbling blocks were rights-of-way issues, route alignment and its high cost.
In December 2023, MEED reported that a team of US-based Hill International, Italy’s Italferr and Spain’s Sener had been awarded the contract to provide project management services for the programme.
If it proceeds, the Landbridge will be one of the largest railway projects ever undertaken in the Middle East – and among the biggest globally.
https://image.digitalinsightresearch.in/uploads/NewsArticle/15123411/main.jpg -
Local contractor bids low for $629m Kuwait oil project20 November 2025
Kuwait-based Mechanical Engineering & Contracting Company (MECC) has submitted the lowest bid on a contract to develop oil and gas facilities at the Sabriya and Bahra oil fields.
The scope of the project is focused on developing a water separation facility next to Gathering Centre 23 (GC-23) and GC-24.
It also includes developing an injection facility at GC-31.
The full list of bidders for the project is:
- Mechanical Engineering & Contracting Company (MECC) – KD193m ($629m)
- Spetco – KD229m
- Alghanim International – KD239m
The tender was issued on 15 December 2024, with an initial bid submission deadline of 16 March 2025.
The bid deadline was extended more than 10 times before prices were submitted.
The client on the project is state-owned upstream operator Kuwait Oil Company (KOC).
The scope of the project includes:
- Installation of a high-integrity pressure protection system
- Installation of chemical injection systems
- Installation of effluent water transfer pumps
- Installation of a low-pressure (LP) gas pipeline from the new LP gas knockout drum (KOD) to existing LP separator gas crude accumulator (inside GC-23 & 24)
- Installation of interconnecting piping, instrumentation, electrical and civil works
- Installation of a new oil recovery system with pumps, flowmeter and analyser
- Installation of the substation and its equipment/systems
- Installation of tie-ins for process and utilities from/to existing GC-30 to new injection facility
- Installation of sludge collection, treatment and disposal system
- Associated facilities
Kuwait is trying to boost project activity in its upstream sector.
The country’s national oil company, Kuwait Petroleum Corporation, aims to increase oil production capacity to 4 million barrels a day (b/d) by 2035.
In August, Kuwait announced that it was producing 3.2 million b/d.
Earlier this month, KOC said it was planning to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.
https://image.digitalinsightresearch.in/uploads/NewsArticle/15120909/main.png -
Oman’s Marafiq retenders Duqm desalination plant20 November 2025
Register for MEED’s 14-day trial access
Oman-based Central Utilities Company (Marafiq) has reissued the main contract tender for its planned seawater reverse osmosis (RO) desalination plant in Duqm.
The revised submission deadline is 25 November.
The project has an estimated budget of $100m and will supply industrial water and support wastewater services in the Duqm Special Economic Zone.
The scheme involves building a seawater RO plant, an intake system, pre-treatment facilities, pumping stations, metering stations, pipelines and associated infrastructure.
Marafiq is developing the project in its capacity as the authorised utilities provider for the Duqm Special Economic Zone.
The company intends to develop a plant with a capacity of 45 million litres a day to serve industrial customers, including a planned hot-briquetted iron (HBI) facility proposed by an international steel manufacturer at Duqm Port.
Spain’s Cobra Group and Oman’s Global Chemicals & Maintenance System were previously prequalified to bid for the engineering, procurement and construction contract.
The main contract was initially tendered in December 2024, with the bid submission deadline in February.
https://image.digitalinsightresearch.in/uploads/NewsArticle/15116821/main.jpg -
Wood Group wins Iraq oil contract20 November 2025
Register for MEED’s 14-day trial access
Aberdeen-based Wood Group has won a contract to deliver project management and engineering services for PetroChina at the West Qurna-1 oil field in southern Iraq, according to a statement from the company.
Under the terms of the contract, Wood will manage engineering, procurement and construction (EPC) projects at the field.
Located approximately 50 kilometres northwest of Basra, West Qurna-1 holds more than 20 billion barrels of recoverable reserves.
Ellis Renforth, Wood’s president of operations for the Europe, Africa and Middle East region, said: “This contract award deepens our decade-long partnership at West Qurna-1 and reflects the continued trust placed in Wood to deliver complex energy solutions in Iraq.
“We’re proud to combine our global expertise with a strong local workforce to help support Iraq’s energy ambitions.”
The contract will be delivered by nearly 200 Wood employees based in Iraq and the UAE, the company said.
On 17 November, in a vote, 88% of Wood Group’s shareholders backed the company’s takeover by Dubai-based Sidara.
The vote came after months of delay, while Wood struggled to agree its accounts with its auditor.
The company’s accounts were eventually published on 30 October, showing a pre-tax loss of more than £2bn and evidence that the auditor was still not satisfied with the figures going back several years.
Wood Group accepted a $292m conditional takeover bid from Sidara in August.
As of February, Wood Group employed 35,000 people across about 60 countries, many in consulting and engineering roles.
In the Middle East, the company has project contracts in Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, where it has opened its third office in Sharjah.
https://image.digitalinsightresearch.in/uploads/NewsArticle/15122155/main.png


