meed-logo

line1 line2 line3
SIGN IN / REGISTER

Wood seeks to improve grip on Gulf market

23 July 2024

Considering the cyclical nature of the oil and gas industry, which often takes a toll on the financial health of service providers, Wood Group has done well to maintain stability in its business. In a recently published update on its trading in the first half of 2024, the UK-based oil and gas industry consultant said its order book of $6.1bn is up 2% compared to June 2023.

Contract wins in the Gulf region have significantly contributed to Aberdeen-headquartered Wood’s financial standing. “We have been very successful in the past 18-24 months,” says Gerry Traynor, senior vice-president of Middle East projects at Wood.

“We have got a really strong position in Iraq through our operations business. In the countries that I look after – Saudi Arabia, the UAE, Qatar, Oman and Kuwait – we’ve seen a strong growth. I see that continuing in the next 18-24 months,” he tells MEED.

Saudi business growth

Wood has been a key service provider to Saudi Aramco and is part of the General Engineering Services-plus pool of consultants. The firm is currently involved in “some huge programmes” by Aramco, according to Traynor.

“We have been successful in signing up contracts with engineering, procurement and construction (EPC) contractors” for the third expansion phase of the Master Gas System, he says.

“Wood has also been successful in winning framework agreements for gas increment programmes with Aramco. We signed those contracts during the last four weeks,” he adds.

In October 2023, MEED reported that Aramco appointed firms to deliver project management consultancy (PMC) services for different segments of its estimated $100bn liquids-to-chemicals (LTC) programme. Wood was among those selected – along with US-based KBR, France's Technip Energies and Australia's Worley.

Aramco’s global LTC programme aims to convert 4 million barrels a day (b/d) of its oil production into high-value petrochemicals and chemical feedstocks by 2030. Aramco, and its subsidiary Saudi Basic Industries Corporation (Sabic), plan to establish 10-11 large mixed-feed crackers by 2030 as part of the petrochemicals investment scheme.

“[LTC] is a very exciting programme," Traynor says, adding that Wood was involved in the pre-front-end engineering and design (pre-feed) and study for the project. "It was a combined effort from our team in Reading [UK] and in Saudi Arabia.”

Front-end engineering and design (feed) for the LTC projects is expected to “kick-off in the second half of this year”, he adds.

Another major Aramco project that Wood has played a key role in is the Accelerated Carbon Capture and Sequestration (ACCS) programme, which is expected to become the world’s largest carbon capture and sequestration (CCS) hub.

Through the scheme, Aramco aims to transport 9 million tonnes a year (t/y) of emissions and sequester it within onshore geological storage by 2027. Aramco plans to store up to 14 million t/y of carbon dioxide (CO2) equivalent by 2035 – contributing to Saudi Arabia's CCUS goal of 44 million t/y by 2035.

In June, Wood announced that it had completed feed works for the first phase of the ACCS project. “In terms of the next phase, our desire is to support Aramco with PMC services, over their EPC contractor,” Traynor says.

Contract wins in the Gulf region have significantly contributed to the company’s financial standing

Key player in Abu Dhabi

Wood's business in the UAE, meanwhile, is predominantly about serving Abu Dhabi National Oil Company (Adnoc).

“We have the two largest feed contracts going on right now, in that we are supporting Adnoc Sour Gas and Adnoc Gas with their P5 programmes,” Traynor says.

Adnoc's P5 production enhancement plan aims to increase Abu Dhabi's crude production to 5 million b/d by 2027.

“We also have a number of PMC contracts where we supply [staff] to Adnoc,” Traynor adds.

Separately, Wood is looking to increase its involvement in the upcoming chemicals and derivatives complex in Ruwais, which is being developed by Taziz – a 60:40 joint venture of Adnoc and Abu Dhabi’s industrial holding company ADQ.

Wood, which performed feed work on projects in the first phase of the Taziz Industrial Chemicals Zone, is keen to get involved in the second phase. “We have been talking to the team in Taziz,” Traynor says.

Positioning in Oman

“Oman has been really good for us,” continues Traynor, adding that the company provided PMC services for the Duqm Refinery project, which was commissioned in February this year.

OQ8, the 50:50 joint venture of Oman’s state energy holding company OQ and Kuwait Petroleum International, the overseas business unit of Kuwait Petroleum Corporation, is the operator of the estimated $7bn refining complex in the sultanate.

“It has certainly gone quiet through 2024 as we start to wind down and hand that project over to the full operations team," Traynor says.

“Our focus in Oman as we move forward is to support clients with feed and PMC services. It is going to be very slow with demand projections in Oman for the next two years or so, but I do see it picking up for us as we get into 2025, and then through 2026 and 2027, when we will start to see more decarbonisation projects come through.

“Also, we are doing pre-feed and feed works for other projects in Oman from our offices in the UK,” he adds.

With regards to new projects in the sultanate, Shell recently announced that it has begun work on the Blue Horizons project – a scheme to develop a blue hydrogen and blue ammonia production facility in Oman. It has appointed Wood to perform pre-feed work on the proposed complex and its associated CO2 pipeline and injection facilities.

“We have been working with Shell on the Blue Horizons project for quite some time. The kick-off will happen soon,” says Traynor.

“We are mainly executing the pre-feed work on the project from our Milan office,” he says, adding: “We will be employing local graduates to help support the work.”

https://image.digitalinsightresearch.in/uploads/NewsArticle/12166409/main3920.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Dubai real estate buys time

    17 March 2026

    Register for MEED’s 14-day trial access 

    The outbreak of the Iran-US-Israel war has injected a powerful dose of uncertainty into Dubai’s residential real estate market, a sector already bracing for a cyclical cooldown.

    A new report from S&P Global Ratings, published on 16 March, outlines the parameters of the risk.

    The core argument is that while Dubai is not facing an immediate 2008-style collapse, the market’s resilience is now a function of time. If the conflict intensifies beyond a one-month horizon, the strains on prices, investor confidence and developer balance sheets could become severe.

    Momentum stalls as caution takes hold

    The most immediate impact of the conflict has been psychological. According to S&P, official sources are already reporting lower transaction volumes since the war began. The prolonged war could mark the end of the post-pandemic boom, shifting the market into a phase of guarded caution.

    The luxury segment, which has driven much of the recent growth, is seen as the most vulnerable. High-net-worth individuals who relocated to Dubai for its perceived safety and tax advantages may now reconsider their positions, given that the city’s ‘safe haven’ status is being tested.

    S&P’s baseline forecast assumes the most intense phase of fighting will last up to four weeks. Under this scenario, the market will likely experience a slowdown in both volumes and prices, with the declines being more pronounced the longer the uncertainty drags on.

    The report notes a flight to liquidity, predicting that secondary market transactions will become more prevalent as investors seek to offload properties, further suppressing values.

    Apartments are expected to suffer steeper price drops than villas due to a robust supply pipeline.

    Regulatory shields and the threat of a prolonged conflict

    One of the central tenets of the report is that Dubai’s post-2008 regulatory framework provides a crucial buffer. Escrow accounts and stringent payment plans mean that for projects already under way, developers should be able to complete construction, barring a wave of mass investor defaults.

    The rules offer significant protection: developers can retain up to 40% of the property value if construction is on schedule, refund the remainder, and repossess the unit for resale.

    However, this protection has limits. S&P warns that a prolonged war scenario would test these regulations. If the Strait of Hormuz remains closed, supply chains for construction materials could bottleneck, driving up input costs. More critically, the rules that protect developers would only be effective up to a point.

    In a deep and lasting downturn, project cancellations would become likely, particularly for newly launched developments that have not secured substantial presales.

    The analysis suggests that while top-tier developers weathered past downturns with delinquency rates of just 3-10%, the figure for newer, less experienced players could be much higher.

    Rated developers have headroom, but it is not infinite

    The four major developers rated by S&P with exposure to Dubai are Emaar Properties, Damac Properties, PNC Investments and Omniyat Holdings. All of these players enter the period of uncertainty from a position of relative strength.

    The report highlights that years of strong sales have created significant revenue backlogs covering several years.

    Emaar leads with the revenue backlog of about $37bn, equivalent to 2.7 years, while Damac holds about $22bn of backlog, representing 2.3 years.

    Their leverage is low, and cash positions are meaningful. As of 31 December 2025, Emaar held $7.5bn in cash and liquid investments, with $11.7bn as escrow cash balance.

    Damac holds $1.7bn in total cash, including $6bn in escrow, while PNCI and Omniyat hold more modest balances of $600m and $600m, respectively.

    S&P has built “substantial headroom” into their credit ratings to absorb sudden shocks.

    The liquidity assessments for all four companies are adequate, with manageable debt maturities in 2026.

    The critical question is duration. If the conflict grinds on, the buffers will narrow.

    S&P states that in a prolonged scenario, its reassessment will focus on construction progress, cash collection and working capital.

    The financial policies of management teams, specifically their willingness to maintain low leverage and cut dividends, will be key to preserving creditworthiness.

    Capex and dividends under review

    The war will also force a recalibration of corporate strategy. The report notes that investment decisions are likely to be postponed or cancelled. While commitments for projects nearing completion will proceed, companies will prioritise liquidity over new land purchases.

    This is most pronounced for Emaar, which has sizeable capital expenditure plans of AED10bn-AED11bn ($2.7bn-$3bn) annually in 2026-27 for projects such as Dubai Creek Tower, Dubai Creek Mall and the expansion of Dubai Mall. S&P believes a significant portion of this spending is flexible and can be delayed if needed.

    Dividend policies will also be tested. The report expects dividend distributions to remain substantial but potentially adjustable. 

    S&P’s analysis paints a picture of a market that is braced for impact but not yet broken. The fundamentals are stronger than they were in 2008, thanks to tighter regulations and well-capitalised developers with $10bn in combined cash reserves.

    However, the market’s fate is now externally determined. If the conflict remains contained and short-lived, Dubai’s real estate sector should absorb the shock with manageable declines.

    But if the war becomes a protracted regional crisis, the meaningful correction that S&P flags as a possibility will move from the realm of the theoretical to the probable, testing the resilience of both the developers and the regulatory framework designed to protect them.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16012971/main.gif
    Yasir Iqbal
  • Saudi Energy pushes back deadlines for power projects

    17 March 2026

    Saudi Energy, formerly Saudi Electricity Company (SEC), has extended bid submission deadlines for three substation projects in Riyadh Province.

    The utility has pushed back the deadline for the estimated $50m King Khalid International airport 132/13.8kV substation project to 9 April.

    The contract was originally tendered in December, and the deadline had previously been extended to 9 March.

    Local firms Al-Babtain Contracting and Al-Haider are understood to have prequalified to bid for the scheme. 

    The company has also extended the deadline for a $40m engineering, procurement and construction (EPC) contract for a 132kV underground cable project in Al-Kharj, Riyadh Province.

    The new bid submission date is 26 March.

    The project covers the installation of underground cable circuits linking a proposed substation (S/S #8721) north of Al-Kharj to BSP #9028. The scope also includes associated civil works and infrastructure.

    Prequalified bidders include Saudi Services for Electro Mechanic Works, Al-Babtain Contracting and Al-Haider, according to regional project tracker MEED Projects.

    In addition, the utility has extended the deadline for a $50m contract to replace the existing 132/13.8kV substation (S/S #8044) with the new Al-Sharafiyah-2 substation (S/S #8407) in Riyadh.

    The revised submission date is 9 April.

    The scope includes construction of the new substation, installation of switchgear and conductors, and associated infrastructure works.

    Saudi Services for Electro Mechanic Works, Al-Babtain Contracting and Al-Haider are expected to submit bids for the project.

    Riyadh Expo substations

    Separately, Saudi Energy is understood to be moving forward with procurement for a project to develop three 132/13.8kV substations in Riyadh to support Expo 2030.

    The utility is said to have invited bids for the engineering, procurement and construction (EPC) contract to deliver the three substations along with associated works to connect the facilities to the national grid.

    The project forms part of wider infrastructure preparations for Expo 2030 Riyadh, scheduled to take place from October 2030 to March 2031

    No bid submission deadline has been publicly disclosed.

    Last September, Saudi Energy outlined plans to invest $58.7bn in power projects between 2025 and 2030.

    This includes $36bn and $22.7bn for transmission and distribution, respectively, and is part of long-term plans to meet growing electricity demand while improving grid efficiency and reliability.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16012147/main.jpg
    Mark Dowdall
  • Fujairah oil hub targeted in fresh drone strike

    17 March 2026

    Register for MEED’s 14-day trial access 

    The Fujairah Oil Industry Zone (FOIZ) was hit by another drone attack early on 17 March, causing a fire, authorities in Fujairah said.

    No injuries have been reported in the attack, and the emirate’s civil defence teams are dealing with the situation and trying to control the fire, the official Emirates News Agency (Wam) reported, citing the media office of the Government of Fujairah.

    This is understood to be the fifth attack since the start of March that FOIZ has suffered from drone or debris resulting from interceptions by the UAE’s air defence systems, as Iran continues to hit energy and industrial facilities in the UAE.

    Fujairah benefits from its strategic geopolitical location outside the Strait of Hormuz, which Iran has blockaded in its ongoing conflict with Israel and the US, choking about a fifth of the world’s oil and gas supplies.

    Consequently, oil prices have soared since the start of the conflict on 28 February. Global benchmark Brent broke the $100 mark on 9 March, for the first time since Russia’s invasion of Ukraine in February 2022, rising to a high of $119 a barrel on that day. Prices have dropped since, but it is still trading well above the $100 mark, with Brent recorded at $103.87 a barrel as of 12pm GST on 17 March.

    Major midstream oil and gas companies operate key storage and export hubs for oil and refined products in Fujairah, including Abu Dhabi National Oil Company (Adnoc Group), Saudi Aramco – through its subsidiary Aramco Trading – Vopak Horizon, VTTI, Shell, Fujairah Oil Terminal, Brooge Petroleum & Gas Investment Company (BPGIC), Emirates National Oil Company (Enoc), Ecomar, Mount Row and GPS Chemoil.

    ALSO READ: Iran sees economic pressure as key to ending war

    Fujairah is crucial to the operations of Adnoc Group subsidiary Adnoc Onshore, which operates a main oil terminal (MOT) there. Located approximately 300 kilometres north of Abu Dhabi, the terminal facilitates the import and export of various crude oil grades, particularly Murban, from the company’s onshore and offshore fields.

    Meanwhile, the Abu Dhabi Crude Oil Pipeline (Adcop) connects milestone pole (MP) 21 at the Habshan oil facility in Abu Dhabi, where stabilised crude produced from Adnoc Onshore fields is gathered for dispatch, to the Fujairah MOT.

    BPGIC is an oil storage and services firm that was established in 2013 in Fujairah and started operations with a capacity of 400,000 cubic metres spanning 14 tanks. In March 2022, it announced its intention to increase the storage capacity of four of those storage tanks in the first phase complex.

    Separately, in September 2021, BPGIC began operations at the second phase of its Fujairah oil storage complex, adding 600,000 cubic metres of storage capacity across eight tanks. As a result of that expansion, BPGIC’s storage capacity more than doubled to 1 million cubic metres, or 6.3 million barrels, from 400,000 cubic metres.

    BPGIC then undertook a third expansion phase of its oil storage facility, which is understood to have been commissioned in 2023.

    The third phase increased BPGIC’s oil storage capacity by 3.5 times, raising it to 3.5 million cubic metres, or 22 million barrels, and making the firm the largest oil storage services provider in the UAE emirate of Fujairah.

    The third-phase expansion project consists of an oil storage facility with a capacity of 2.5 million cubic metres, a modular 25,000-barrel-a-day (b/d) refinery, and a larger 180,000-b/d conventional refinery.

    BPGIC also co-owns a topping refinery in Fujairah with Nigeria-based Sahara Energy Resources, which produces low-sulphur bunker fuel for ships and vessels. It is understood that the new naphtha upgradation unit could be integrated with the existing topping refinery unit.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16011988/main.jpg
    Indrajit Sen
  • Oman signs $2bn real estate deals at Mipim 2026

    17 March 2026

    Oman has signed 17 international investment and development agreements worth over RO762m ($1.98bn) at the Mipim 2026 event held in Cannes, France.

    The deals were concluded through the Ministry of Housing & Urban Planning (MHUP) and partners at the Oman pavilion, and span mixed-use real estate, healthcare, agri-investment and digital planning tools.

    A key agreement was a memorandum of understanding with Turkiye’s Artas Holding for the Al-Khuwair Downtown project, with planned investments exceeding RO150m ($390m).

    In Sultan Haitham City, an agreement was signed with Saudi Arabia’s Retal Development to develop neighbourhoods 3, 15 and 17, covering more than 1.39 million square metres, with a combined investment of over RO320m ($832m).

    Other agreements include Vogue Homes Portugal investing more than RO25m ($65m) in the Al-Thuraya City project, and another residential scheme led by international firms including Avant Garde Properties, F&M International, Metrogramma and The One Atelier, with an investment of about RO50m ($130m).

    MoHUP also signed agreements covering smart planning and project delivery, including advanced 3D digital modelling, with investment exceeding RO408,000 ($1m).

    Healthcare-related agreements include a partnership between local Al-Daham Real Estate and Kubba to develop hospital and stem-cell treatment facilities, valued at RO11.5m ($30m), and a deal between local firm Al-Abrar Real Estate Group and Vienna Hospital & University to operate Ibn Al-Haitham Hospital in Sultan Haitham City, with an investment of more than RO40m ($104m).

    In Dhofar, investments will be made in planting one million olive trees under a usufruct arrangement, valued at RO15m ($39m), as part of agriculture sustainability plans.

    The programme also includes architectural and branding collaborations involving international firms such as Chapman Taylor Architects, 3DTouch Studio, Hawk & Impact Communication and Atelier Entropic, alongside luxury brands including Pagani, Armani and Elie Saab for branded residential concepts.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16011061/main.jpg
    Yasir Iqbal
  • Ashghal tenders northern Smaisma infrastructure

    17 March 2026

     

    Qatar’s Public Works Authority (Ashghal) has issued a tender covering infrastructure development in the northern Smaisma area.

    The tender was floated on 14 March, with a bid submission closing date of 12 May.

    The scope includes the airstrip road, coastal road and connections to the existing Al-Khor Expressway, spanning an area of about 18.5 kilometres.

    The contract duration is four years from the start of construction works.

    The latest tender follows Ashghal’s announcement of contract awards for 12 new projects, with a total value exceeding QR4.5bn ($1.2bn).

    According to a notice published on its website, these include six building projects, most notably the redevelopment of Hamad General Hospital, with a contract value of about QR1.1bn ($301m).

    The other projects awarded include the construction of a post office building in Al-Thumama, the renovation of the Qatar Racing & Equestrian Club and the Qatar Equestrian Federation, as well as the implementation of phase four of the Al-Uqda Equestrian Complex development.

    In the roads and infrastructure sector, four projects have been awarded, led by packages one and two of the road and infrastructure development works in Izghawa and Al-Thumaid.

    The awards also include a project covering landscaping and an air-conditioned walkway at Qatar University, as part of broader public facilities improvement initiatives.

    According to UK analytics firm GlobalData, Qatar’s construction industry is expected to expand by 4.3% in 2026, supported by investments in renewable energy and transportation infrastructure.

    According to the Planning & Statistics Authority, Qatar’s construction value-add grew by 6.6% year-on-year in the first half of 2025. 

    GlobalData expects the industry to grow at an annual average growth rate of 4.6% in 2027-29, supported by investments in construction, energy and infrastructure projects.

    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:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16010960/main.gif
    Yasir Iqbal