Meed | Wood seeks to improve grip on Gulf market

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.”

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Indrajit Sen

Exclusive from Meed

Saudi Arabia raises electricity tariffs
26 October 2026
Dubai Municipality confirms AED3bn Tasreef drainage awards
26 October 2026
Nakheel awards $259m Dubai Islands buildings contract
26 October 2026
Morocco plans second high-speed rail phase to Agadir
26 October 2026
Riyadh tenders King Salman Stadium works
26 October 2026

Saudi Arabia raises electricity tariffs
26 October 2026

Saudi Energy, formerly Saudi Electricity Company, has announced revised electricity tariffs, which will take effect on 1 January 2027.

The revised tariff schedule, published on the company’s official website, covers residential, commercial, industrial, agricultural, charitable and government customers.

The largest percentage increase in consumption rates is 16.7%, for residential customers using up to 6,000 kilowatt-hours (kWh) a month. Residential customers will pay 21 halalas/kWh for monthly consumption of up to 6,000kWh, up from 18 halalas. For consumption above 6,000kWh, the rate will rise from 30 to 33 halalas/kWh, a 10% increase.

The industrial tariff will increase by 15%, from 20 to 23 halalas/kWh. Commercial customers, private healthcare facilities and private educational facilities will pay 25 halalas/kWh, up from 22 halalas, for consumption up to 6,000kWh a month, and 35 halalas/kWh above that level, up from 32 halalas.

Tariffs for charities and government customers will also increase. In addition to consumption-based charges, customers will pay a fixed monthly fee based on the capacity of their electricity meter. This replaces the previous separate charge for meter reading, maintenance and billing, with VAT applied to the revised tariffs.

Electricity investment

The new tariffs coincide with changes to water consumption tariffs announced by the National Water Company, also effective from 1 January 2027.

King Salman Bin Abdulaziz Al-Saud directed support measures following a proposal presented by Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al-Saud.

This includes raising the minimum wage required for Saudi nationals to count as full employees towards private sector localisation quotas under the Nitaqat programme.

The tariff changes come as Saudi Arabia plans substantial investment in its electricity infrastructure. In September 2025, Saudi Energy announced plans to invest SR220bn ($58.7bn) in power infrastructure projects between 2025 and 2030.

A June 2025 report by Fitch Ratings forecast negative free cash flow of about SR16bn a year over the period and rising leverage, reflecting the financial demands of the programme.

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Mark Dowdall
Dubai Municipality confirms AED3bn Tasreef drainage awards
26 October 2026

Dubai Municipality has confirmed it has awarded four contracts worth AED3bn ($817m) to expand the emirate’s stormwater drainage network by about 100 square kilometres under phase three of the Tasreef programme.

The projects will cover Jumeirah, Umm Suqeim, Al-Quoz, Al-Barsha, Al-Wasl and Al-Marmoom. The works include constructing and extending main stormwater drainage lines with diameters of up to three metres.

The four packages are part of Dubai’s AED30bn Tasreef programme, which aims to increase the emirate’s stormwater drainage capacity by 700% and reduce costs associated with pumping stations, network operations and maintenance by 20%.

The contracts have been awarded to China State Construction Engineering Corporation (CSCEC) and three local firms: Arifco Group, Nael Construction & Contracting (NCC) and Detech Contracting. Dubai Municipality did not state which projects the awards relate to.

According to sources, the contract awards include packages TF-15-C1, TF-15-C2 and TF-13-C1.

The first package, TF-15-C1, involves the construction of 21 kilometres of main and secondary drainage lines along Al-Wasl Road and in surrounding areas. It will cover Za’abeel 2, Al-Wasl, Jumeirah 1 and 2, Al-Bada’a, Al-Satwa and Dubai World Trade Centre. The estimated $100m contract was awarded to Detech in July, as exclusively reported by MEED.

The second package, TF-15-C2, covers the corridor between Sheikh Zayed Road and Al-Khail Road. It includes about 14km of main drainage lines serving Al-Quoz Industrial Areas 1, 3 and 4, and Al-Barsha 1. In July, MEED reported that CSCEC had won the engineering, procurement and construction contract for this project.

The third package, TF-13-C1, covers Al-Marmoom, where 23km of drainage infrastructure will be developed. According to a source, Arifco has been awarded this contract.

The final package covers Jumeirah and Umm Suqeim, where about 42km of main drainage lines will serve Umm Suqeim 1, 2 and 3; Umm Al-Sheif; Jumeirah 3; Al-Safa 1 and 2; and Al-Manara.

In May, MEED reported that NCC had been awarded a contract to build a sewage and stormwater drainage system, DS-204. However, it is unconfirmed whether this relates to the same project.

Earlier, in February, the municipality confirmed it had awarded contracts for five new projects under phase two of the programme to expand and strengthen Dubai’s stormwater drainage network.

These included two contracts awarded to Detech and one to CSCEC for stormwater drainage infrastructure. In addition, two consultancy contracts were awarded for the study and design of drainage systems in selected areas across the emirate.

Cumulatively valued at AED2.5bn, the new projects will serve 30 vital areas, spanning approximately 430 million square metres and supporting an estimated population of three million residents by 2040.

Previously, in April 2025, an earlier package of awards was announced under phase one of the Tasreef programme. The overall masterplan aims to expand Dubai’s rainwater drainage capacity by 700% by 2033.

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Mark Dowdall
Nakheel awards $259m Dubai Islands buildings contract
26 October 2026

Dubai-based master developer Nakheel, part of Dubai Holding Real Estate, has awarded local firm Parkway International Contracting a construction contract valued at about AED950m ($259m) for phases two and four of Bay Grove Residences on Dubai Islands.

The package covers 617 residential units across eight buildings, ranging from one to four bedrooms, together with basement structures, infrastructure and community amenities including swimming pools, sports courts and fitness centres.

Phase two comprises 360 homes across four buildings, with main construction scheduled for completion in late 2028.

Phase four includes 257 homes across four buildings, with completion targeted for the second quarter of 2029.

The award follows an earlier contract valued at about AED800m ($218m) awarded to local contractor Metac General Contracting Company for phases one and three, covering 537 homes across seven buildings.

Together, the two contracts total more than AED1.75bn ($476m) and account for all 1,154 planned homes across the 15 buildings of Bay Grove Residences.

Project activity on Dubai Islands has gathered pace in recent months. Earlier this month, Nakheel awarded local firm Mar Marine & Building Contracting a contract for marine and coastal works on Island B. The scope includes constructing breakwaters, removing existing rock revetments and creating a new 320-metre beach near the Bay Villas development, as well as remedial and refurbishment works along approximately 3 kilometres of the island’s western shoreline.

In August 2025, Nakheel awarded Fibrex Contracting a AED2.6bn ($708m) construction contract for the Bay Villas residential project. That followed a AED527m ($143m) contract awarded to Al-Nasr Contracting Company in April 2026 for primary infrastructure and utilities on Island B.

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Yasir Iqbal
Morocco plans second high-speed rail phase to Agadir
26 October 2026

Morocco has outlined a second rail investment cycle for 2030-35, which includes beginning construction of a high-speed rail extension from Marrakech to Agadir and connecting Essaouira to the national rail network.

The pipeline forms part of the government’s 2026-31 programme, presented to parliament last week.

The Marrakech-Agadir link is estimated to cost close to MD55bn ($5.5bn) and will cover a 240-kilometre (km) route through the High Atlas Mountains via Chichaoua. Civil engineering structures, including tunnels and viaducts, are expected to account for nearly 70% of the alignment.

In September, the government issued a decree declaring the Marrakech-Agadir and Chichaoua-Essaouira rail corridors to be of public utility, paving the way for land acquisition and expropriation procedures.

Under the long-term masterplan Plan Rail Maroc 2040, Essaouira is expected to connect to the network via a separate line branching off at Chichaoua, designed for operating speeds of up to 200km an hour. The mainline to Agadir is designed for speeds of up to 320km/h.

The 2030-35 cycle also includes rehabilitating the Casablanca-Khouribga-Oued Zem line; constructing a new line between Oued Zem and Beni Mellal via Bejaad, with a branch to Fquih Ben Salah; doubling and upgrading the 140km Benguerir-Safi line; expanding capacity on the Fez-Oujda corridor; and building new-generation passenger stations.

The plans follow Morocco’s ongoing MD134bn ($13.4bn) 2024-30 rail investment programme, which focuses on completing the Kenitra-Marrakech high-speed line ahead of the 2030 Fifa World Cup.

The programme also includes developing regional express network services across five regions, electrifying the Fez-Oujda line and completing a freight rail link to the Nador West Med port.

Work on the Kenitra-Marrakech line had reached about 30% by May 2026, with commercial services targeted to begin in September 2029.

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Yasir Iqbal

Riyadh tenders King Salman Stadium works

26 October 2026

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Saudi Arabia’s Sports Ministry has tendered a contract covering early works at King Salman International Stadium in Riyadh.

The scope includes enabling works, site preparation and initial construction activities.

The tender was issued on 11 October, with a submission deadline of 19 November.

The stadium will cover about 660,000 square metres (sq m) and seat 92,000. Facilities will include a 150-seat royal suite, 120 hospitality suites, 300 VIP seats and 2,200 dignitary seats.

The wider development will include sports facilities covering more than 360,000 sq m, including two training fields and fan zones; a closed sports hall; an Olympic-sized swimming pool; an athletics track; and outdoor courts for volleyball, basketball and padel.

The stadium is set to host the final of the 2034 Fifa World Cup and will serve as the Saudi national football team’s main base.

US-based architectural firm Populous is the lead architect for the stadium.

Construction of the stadium is expected to be completed by 2029.

The stadium will be located next to King Abdulaziz Park.

Firms submitted prequalification statements for the main design-and-build contract in February.

Saudi stadium plans

In August 2024, MEED reported that Saudi Arabia planned to build 11 new stadiums and refurbish four facilities for the 2034 Fifa World Cup.

Eight stadiums will be located in Riyadh, four in Jeddah and one each in Al-Khobar, Abha and Neom.

A further 10 cities will host training bases: Al-Baha, Jazan, Taif, Medina, Alula, Umluj, Tabuk, Hail, Al-Ahsa and Buraidah.

There are expected to be 134 training sites in the kingdom, including 61 existing facilities and 73 new venues.

Saudi Arabia was officially selected to host the 2034 Fifa World Cup during an online convention of Fifa member associations at the Fifa Congress on 11 December 2024.

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