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
  • Kuwait receives bids for Al-Khairan phase one IWPP

    2 June 2026

     

    Two developer consortiums have submitted bids for the first phase of Kuwait’s Al-Khairan independent water and power producer (IWPP) project, according to a source.

    Bids were received by the Kuwait Authority for Partnership Projects (Kapp) on 1 June.

    The facility will have a capacity of 1,800MW and 150,000 cubic metres a day of desalinated water. It will be located in Al-Khairan, adjacent to the Al-Zour South thermal plant. 

    The bidders include:

    • Abu Dhabi National Energy Company (Taqa) / A H Al-Sagar & Brothers (Saudi Arabia) 
    • Acwa (Saudi Arabia) / Gulf Investment Corporation (Kuwait)

    The Al-Khairan IWPP is being procured by Kapp in partnership with the Ministry of Electricity, Water & Renewable Energy (MEWRE).

    The main contract was tendered last September. Three consortiums and two individual companies were previously prequalified to participate in the tender.

    Ernst & Young, BNP Paribas, AtkinsRealis and Addleshaw Goddard are financial advisers on the project. Chadbourne & Parke is acting as legal adviser.

    The winning bidder will sign a set of public-private partnership agreements covering financing, design, construction, operation and transfer of the project. The energy conversion and water-purchase agreement is expected to cover a 25-year supply period.

    Future phases

    The Al-Khairan IWPP project is expected to run on low-sulphur fuel oil as the primary fuel and to accommodate crude oil, gas oil and natural gas as backup fuels. Future phases will further expand capacity.

    It is understood that the estimated $750m second phase of the Al-Khairan IWPP project will add a further 1,800MW of generation capacity through a combined-cycle gas-fired power plant.

    The project, first mooted over a decade ago, remains in the early development stages, with no plans currently to advance to procurement in 2026, a source said.

    According to the source, the immediate focus is on advancing plans for the 3,600MW Nuwaiseeb power and water desalination IWPP project.

    The Nuwaiseeb IWPP plant will have a desalination capacity of 75 million imperial gallons a day.

    Kapp plans to release a transaction advisory tender for the project by the end of the year.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17072685/main.jpg
    Mark Dowdall
  • Doosan confirms Saudi Jafurah 2 cogen contract

    2 June 2026

    South Korea’s Doosan Enerbility has confirmed it has signed an engineering, procurement and construction (EPC) contract worth about $556m for the second phase of the Jafurah combined heat and power (CHP) plant in Saudi Arabia.

    The project is being developed by Korea Electric Power Corporation (Kepco) in partnership with Saudi Aramco.

    Doosan said the contract covers design, equipment supply, installation, construction and commissioning of the facility.

    The Jafurah CHP phase 2 project will be built near the Jafurah gas field, about 400 kilometres east of Riyadh. Once operational, it will generate 330MW of electricity and produce 465 tonnes of steam an hour for the nearby gas field.

    According to the firm, the project’s main steam turbine will be supplied by Doosan Skoda Power, a subsidiary of Doosan Enerbility.

    WSP is acting as the project management consultant for the project, which is scheduled for completion in 2029.

    The Jafurah gas development is part of Aramco’s $3.2bn unconventional resources programme, which aims to develop shale gas in three areas. Jafurah lies southeast of Ghawar, the world’s largest conventional oil field.

    The programme is part of Riyadh’s plans under Vision 20230 to ensure the kingdom remains self-sufficient in gas supply amid rising demand from the residential and industrial power sectors.

    Jafurah phase one

    In February 2025, MEED exclusively reported that talks were under way to expand the capacity of the $500m Jafurah cogeneration independent steam and power plant (ISPP).

    Construction works were completed on the facility last November.

    At the time of its procurement, the plant’s first phase was to have a power capacity of 270-320MW, and a low-pressure (LP) steam demand of 77-166 thousand pounds an hour (klb/hr) and high-pressure (HP) steam demand of 29-126 klb/hour by 2023.

    The LP and HP steam demand will increase to 283-373 klb/hr and 66-321 klb/hr by 2027, respectively.

    The oil giant issued the letter of award to Kepco for the contract to develop the Jafurah ISPP scheme in July 2022.

    Kepco subsequently awarded South Korea’s Doosan Heavy Industries & Construction the project’s EPC contract.

    US/India-based Synergy Consulting provided financial advisory services to Kepco on its bid.

    Sumitomo Mitsui Banking Corporation (SMBC) served as the client’s financial adviser for the project. Germany’s Fichtner Consulting Engineers is technical consultant, while the UK’s Wood Group is project management consultant.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17072199/main.jpg
    Mark Dowdall
  • Al-Mabanee submits lowest bids for Kuwait infrastructure

    2 June 2026

    Kuwait’s Public Authority for Housing Welfare (PAHW) has opened commercial bids for two major infrastructure and public buildings packages at South Al-Mutlaa Residential City.

    Local firm Al-Mabanee United Company has emerged as the lowest bidder for both contracts, submitting combined offers worth KD44m. Both packages entail the construction, completion and maintenance of services, infrastructure works and public buildings for different district centres within the city.

    The first contract covers the infrastructure and public buildings for the N3 District Centre. PAHW received proposals from eight bidders, with Al-Mabanee United Company submitting the lowest price at KD20.9m. The second-lowest offer was submitted by The Contractor General Trading & Contracting Company at KD22.4m, followed by Golden Engineering Group for General Trading & Contracting at KD22.7m, though Golden Engineering Group was flagged for not providing a bid bond.

    Al-Khonaini General Trading & Contracting Company, operating as Inshat Al-Khonaini, ranked fourth with a bid of KD22.7m, followed closely by Kuwait Industrial Centre Company at KD22.8m. Combined Group Contracting Company submitted a bid of KD23.8m, Al-Dar Engineering & Construction Company bid KD25.7m, and China’s Sichuan Road & Bridge Group Corporation submitted the highest active proposal at KD29m. 

    The second contract is for identical infrastructure and public building works at the N1 District Centre. Al-Mabanee United Company submitted the lowest bid of KD22.8m. Its closest competitor was The Contractor General Trading & Contracting Company, which submitted an offer of KD23.9m.

    Al-Khonaini General Trading & Contracting Company came in third with a bid of KD24.2m, followed by Kuwait Industrial Centre Company at KD24.4m and Golden Engineering Group for General Trading & Contracting at KD24.4m. Combined Group Contracting Company placed a bid of KD26m, Al-Dar Engineering & Construction Company bid KD26.5m, and United Construction Company, known as Al-Inshat Al-Muttahida, submitted an offer of KD 30.9m. Al-Ghanim International General Trading & Contracting filed the highest bid at KD344m and was also noted for lacking a bid bond.

    South Mutlaa Residential City is a large-scale planned development designed to accommodate around 400,000 residents in a modern, fully serviced urban environment. Once completed, it will offer contemporary housing alongside extensive logistical services and a wide range of public and commercial areas, including hospitals, schools and other social services.

    The project also includes major infrastructure works such as approximately 150 kilometres of roads and related structures, lighting and other public works, as well as integrated systems for water distribution, rainwater collection and sewage. In addition, it will provide the civil infrastructure needed for electricity distribution, telecommunications networks and traffic control to support a well-connected, functional city.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17071938/main.gif
    Colin Foreman
  • Local developer secures finance for three Riyadh projects

    2 June 2026

    Qimam Noshoz for Real Estate Development Company, a subsidiary of Saudi Arabia’s Banan Real Estate Company, has signed a sharia-compliant credit facility agreement worth SR84m ($22.4m) with Riyad Bank to fund three commercial, hospitality and sports developments in the kingdom.

    The financing agreement is split into two distinct tranches to align with the projects’ development timelines. The first tranche consists of SR49m with a maturity duration of seven years, while the remaining SR35m has been secured for an eight-year term.

    Qimam Noshoz will utilise the capital to fund construction works for the Al-Rahmaniyah Gem and Al-Wadi District Gem projects. Both of these projects are already leased to the fitness operator Armah Sports Company. The other project is an independent hotel located within the Al-Wadi District.

    The Al-Wadi development is designed as an integrated commercial complex spanning approximately 7,818.5 square metres of land, with a built-up area of about 975 square metres. It includes a men’s gym, a women’s gym and a hotel building.

    The Al-Rahmaniyah project is an integrated commercial development combining fitness facilities with retail. The asset features men’s and women’s gyms operating alongside an independent commercial zone.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17071628/main.jpg
    Colin Foreman
  • SLB wins $385m contract for Kuwait oil research centre

    2 June 2026

    Schlumberger Oilfield Eastern, a unit of the US-headquartered oilfield services company SLB, has been awarded a KD118m ($385m) contract to develop an oil and gas research centre in Kuwait.

    The contract was awarded by the state-owned upstream operator Kuwait Oil Company (KOC), according to a report by Kuwait’s Al-Rai newspaper.

    The Ahmadi Innovation Valley (AIV) project is planned as an advanced research and innovation hub equipped with specialised facilities and technical teams focused on applied research for Kuwait’s oil and gas sector.

    The contract was awarded after the Higher Purchase Committee (HPC) of Kuwait’s national oil and gas company Kuwait Petroleum Corporation (KPC) determined the bid to be compliant with the project’s technical and commercial requirements.

    In February 2025, KOC signed memorandums of understanding (MoUs) with five international oilfield service companies to support the development of the AIV initiative.

    These companies were:

    • SLB (US)
    • Baker Hughes (US)
    • Weatherford (US)
    • Halliburton (US)
    • National Energy Services Reunited (US)

    Under the preliminary agreements, each of the five companies agreed to establish a world-class research and development centre at the project site, focused on helping KOC meet challenges in the upstream sector.

    KOC’s CEO Ahmad Jaber Al-Eidan had said in February 2025 that the project will enable Kuwait to keep pace with global transformations while investing in advanced technologies to ensure the sector’s sustainability and achieve operational excellence.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17063475/main.gif
    Wil Crisp