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  Kuwait Oil Company prepares to sign flowline contract

  29 April 2026

  

   

  State-owned upstream operator Kuwait Oil Company (KOC) is preparing to sign a contract worth KD174.2m ($565m) with Kuwait-based Heavy Engineering Industries & Shipbuilding Company (Heisco), according to industry sources.

  The contract is focused on developing flowlines and associated works in North Kuwait.

  One source said: “The contract is expected to be signed soon and everything associated with the contract award process is moving very smoothly.”

  Heisco announced in a stock exchange statement earlier this month that it had received a formal contract award letter for the project.

  While progress on the project is moving smoothly for now, the project may be impacted by fallout from the US and Israel’s war with Iran in the future.

  The project requires a large volume of pipelines to be transported into Kuwait, which would normally be shipped through the Strait of Hormuz.

  Heisco was the fourth-lowest bidder for the contract.

  Also this month, Heisco submitted the lowest bid for a project to upgrade part of the Mina Abdullah refinery’s export infrastructure.

  It submitted a bid of KD11,919,652 ($38.6m) for the project to implement renovation works on the artificial island that forms part of the port at the refinery.

  The only other bidder was Kuwait’s International Marine Construction Company (IMCC), which submitted a bid of KD12,480,113 ($40.4m).

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  Wil Crisp
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  UAE to withdraw from Opec and Opec+ alliance

  28 April 2026

  The UAE has announced its decision to withdraw from Opec and the Opec+ alliance from 1 May.

  In a statement, the UAE Ministry of Energy said the move followed a “comprehensive review” of its production policy.

  “While near-term volatility, including disruptions in the Arabian Gulf and the Strait of Hormuz, continues to affect supply dynamics, underlying trends point to sustained growth in global energy demand over the medium to long term,” the statement, issued on 28 April, said.

  “This decision follows decades of constructive cooperation. The UAE joined Opec in 1967 through the Emirate of Abu Dhabi and continued its membership following the formation of the United Arab Emirates in 1971. Throughout this period, the UAE has played an active role in supporting global oil market stability and strengthening dialogue among producing nations.”

  The announcement was timed to coincide with an Opec ministerial meeting in Vienna and was communicated through state news agency Wam.

  Abu Dhabi National Oil Company (Adnoc) has set a target of raising production capacity to 5 million barrels a day (b/d) by 2027 – up from a current capacity of around 4.85 million b/d, though the country has been constrained to producing approximately 3.4 million b/d under Opec+ quota agreements.

  Membership of a quota-constrained group sits uneasily with that ambition. The non-oil economy now accounts for roughly 75% of the UAE’s GDP, reducing the political cost of rupture with the organisation.

  The Iran war wiped out 7.88 million b/d of Opec production in March, cutting group output 27% to 20.79 million b/d – the steepest supply collapse in the organisation’s recorded history, exceeding the Covid-19 demand shock of May 2020 and the disruptions of both the 1970s oil crisis and the 1991 Gulf War. Gulf producers have been struggling to route exports through the Strait of Hormuz amid Iranian threats and attacks on vessels, further straining the group’s cohesion.

  Against that backdrop, the UAE’s departure deals a significant blow to Opec and its de facto leader, Saudi Arabia, which has sought to project unity despite persistent internal disagreements over quotas and geopolitics.

  The US-Israeli war on Iran since late February has had a detrimental effect on a number of Gulf states, including the UAE.

  The UAE was targeted by thousands of Iranian ballistic missiles and drones, damaging strategic oil and gas facilities, denting Dubai’s appeal as a luxury tourism hotspot and slowing oil exports to a trickle.

  Whereas some Gulf states have urged dialogue with Iran, the UAE has maintained a more hawkish position. Analysts say that position is partially due to its reliance on the Strait of Hormuz for oil exports and the UAE’s unwillingness to see Iran cement itself as a regional power in the Gulf.

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  Indrajit Sen
• 
  NWC tenders package 14 of sewage treatment programme

  28 April 2026

  

   

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  Saudi Arabia’s National Water Company (NWC) has tendered a contract for the construction of 10 sewage treatment plants as part of the next phase of its long-term operations and maintenance (LTOM) sewage treatment programme.

  According to the original scope, the Eastern A Cluster (LTOM14) package will have a total treatment capacity of 184,440 cubic metres a day (cm/d) at an estimated cost of $180m.

  The bid submission deadline is 30 September.

  The tender follows recent contract awards for North Western A Cluster Sewage Treatment Plants Package 11 (LTOM11) and the Northern Cluster Sewage Treatment Plants Package 10 (LTOM10).

  MEED exclusively reported that a consortium comprising China’s Jiangsu United Water Technology, the UAE’s Prosus Energy and Saudi Arabia’s Armada Holding had been appointed as a contractor for each of these projects.

  Package 11 will have a combined capacity of about 440,000 cm/d at an estimated cost of about SR211m ($56.3m).

  Package 12 will have a combined treatment capacity of 337,800 cm/d at an estimated cost of about SR203m ($54.1m).

  In April, NWC also opened finanical bids for North Western B Cluster (LTOM12) of its sewage treatment programme.

  The contract covers the construction and upgrade of seven sewage treatment plants with a combined capacity of about 162,000 cm/d.

  MEED previously reported that the following companies had submitted proposals:

  • Alkhorayef Water & Power Technologies (Saudi Arabia)
  • Civil Works Company (Saudi Arabia)
  • Miahona (Saudi Arabia)
  • Beijing Enterprises Water Group – BEWG (Hong Kong)
  • Al-Yamama (Saudi Arabia)

  These bids are currently under evaluaton, with an award expected in the coming weeks, a source said.

  The tender for the North Western C Cluster (LTOM13) project had been put on hold, although it is understood that this is now likely to be the next package to be tendered.

  Under the original scope, this package covers the construction of 10 sewage treatment plants.

  In total, the LTOM programme comprises 19 packages split into two phases. This contract for LTOM10 was the first to be awarded under the second phase of NWC’s rehabilitation of sewage treatment plants programme.

  As MEED understands, there have been several discussions in recent months regarding changes in scope details and potential expansions. This involves potentially grouping some upcoming projects.

  NWC previously awarded $2.5bn-worth of contracts in the first phase. This comprises nine packages covering the treatment of 4.6 million cm/d of sewage water for the next 15 years. Phase two of the programme includes 10 packages covering 117 treatment plants.

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  Mark Dowdall
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  Construction begins on Aman Dubai Hotel and Residences

  28 April 2026

  Dubai-based developer H&H Development and Switzerland’s Aman Group have broken ground on the Aman Dubai Hotel and Residences project in Dubai’s Jumeirah area.

  The project’s enabling works contract has been awarded to local firm Swissboring.

  Foundation works are expected to start this quarter.

  The developers said ground improvement works have now been completed. Another local firm, DBB Contracting, carried out the works.

  The project comprises a hotel, 78 branded residences and villas.

  Singapore-headquartered architectural firm Kerry Hill Architects is the project consultant.

  Dubai real estate developments continue to dominate the UAE’s construction market, with schemes worth more than $323bn either under execution or in planning.

  This aligns with a GlobalData forecast that the UAE construction sector will grow by 3% in real terms in 2026, supported by infrastructure, energy and utilities, and residential projects.

  

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  Yasir Iqbal
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  Regional war deepens Kuwait oil sector’s tender crisis

  28 April 2026

  Commentary
  Wil Crisp
  Oil & gas reporter

  Contractors in Kuwait expect the regional conflict and disruption to shipping to worsen the country’s existing oil and gas tendering problems, causing long-term disruption in the sector.

  In the months prior to the US and Israel attacking Iran on 28 February, contract tenders worth an estimated $9.1bn were cancelled after bids came in above the projects’ allocated budgets.

  Contractors largely blamed the cancellations on long delays to tender processes after budgets had been set.

  The delays, which often extended for several years, meant inflation drove up the cost of materials and labour, making it almost impossible for contractors to submit bids within the original budgets.

  One industry source said: “The reason all of these contracts were cancelled was because the tender processes for large projects had started moving again after stalling for a long time.

  “Bids came in and unfortunately they were over budget. It was then expected that tender processes would restart and these projects would ultimately be awarded – but now the war means that Kuwait is facing a whole new wave of project delays and nobody knows when it is going to end.”

  War impact

  Many industry insiders believe delays caused by the war and the closure of the Strait of Hormuz will once again seriously disrupt projects, just as many stakeholders believed the country was about to see an uptick in project progress.

  One source said: “Bid bonds are going to have to be renewed and some bidders might just use that as an opportunity to drop out of the bidding process.

  “It’s also possible that work that has already been done, like feasibility studies, will no longer be relevant and will have to be repeated.”

  2025 rebound

  Last year, Kuwait recorded its highest total annual value for oil, gas and chemicals contract awards since 2017, according to data from regional project tracker MEED Projects.

  A total of 19 contract awards with a combined value of $1.9bn were awarded.

  This was more than four times the value of contract awards across the same sectors in 2024, when awards were worth just $436m.

  It was also above the $1.7bn peak recorded in 2021, but it remained far lower than the values seen in 2014-17, when several large-scale, multibillion-dollar projects were awarded in the country.

  The surge in the value of contract awards came after Kuwait’s emir indefinitely dissolved parliament and suspended some of the country’s constitutional articles in May 2024.

  Prior to the suspension of parliament, Kuwait suffered from very low levels of project awards for several years amid political gridlock and infighting between the cabinet and parliament.

  This meant important decisions about projects could not be made – a major obstacle to the progression of strategic oil projects.

  Forward outlook

  With several major oil and gas projects under development in late 2025 and early 2026, some expected 2026 to record a far higher volume of oil and gas contract awards than 2025.

  Projects expected to be tendered – and potentially awarded – this year included a $3.3bn onshore production facility due to be developed next to the Al-Zour refinery.

  This project has already been delayed and put on hold as a result of fallout from the US and Israel’s conflict with Iran.

  Had it been awarded, it would have been the biggest single oil and gas contract award in Kuwait in more than 10 years.

  Now, as a result of the conflict, many of the large tenders expected to take place this year are likely to be significantly delayed.

  One source said: “Right now, everyone in the oil and gas sector is waiting for some sort of sign of improving stability before they make a decision and there’s a lot of uncertainty.

  “The state-owned oil companies aren’t communicating with contractors like they normally do and the price of a lot of materials has increased dramatically.”

  Even if the standoff between the US and Iran over reopening the Strait of Hormuz is resolved in the near future, it is likely to take months or years before Kuwait’s oil and gas project market regains the momentum it had at the beginning of 2026.

  Given the lack of flexibility within Kuwait’s existing tendering system, delays can easily lead to tenders being cancelled, and the conflict’s inflationary impact will make it even harder for contractors to meet budgets set before the latest disruption.

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  Wil Crisp