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.”
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
Abu Dhabi seeks firms for Mid Island Parkway PPP15 May 2026
-
Oman seeks adviser for gas-fired IPPs15 May 2026
-
-
-
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
-
Abu Dhabi seeks firms for Mid Island Parkway PPP
15 May 2026
Register for MEED’s 14-day trial access
Modon Infrastructure, formerly known as Gridora, has invited firms to submit their registrations for the next phase of Abu Dhabi’s Mid Island Parkway Project (MIPP), which will be developed on a public-private partnership (PPP) basis.
The request for qualifications (RFQ) is expected to be issued to interested parties soon.
Modon Infrastructure will act as the lead developer with the majority of the equity in the project company. It will award the engineering, procurement, and construction contractor, the operations and maintenance providers, and the advisers.
The second phase of the MIPP involves the construction of about 11 kilometres (km) of highways, including a mix of three-, four- and five-lane highways. The highways will connect the Um-Yifeenah, Al-Jubail, Al-Sammaliyyah and Sas Al-Nakhl islands to Khalifa City and the E10 road.
The scope also covers the construction of three interchanges: the E20, E10 and Dumbbell interchanges on Al-Sammaliyyah Island.
The project includes several major structures, such as the E20 interchange featuring cast-in-place box girder and void slab bridges, and the E10 interchange with cast-in-place box girder bridges. It also includes I-girder bridges between Raha Beach West and Sas Al-Nakhl Island, as well as a causeway at Sas Al-Nakhl Island.
Further key elements include a cast-in-place balanced cantilever bridge between Sas Al-Nakhl Island and Al-Sammaliyyah Island, a tunnel between Al-Sammaliyyah Island and Bilrimaid Island, and a cut-and-cover (open) tunnel on Bilrimaid Island. The project is completed with another tunnel connecting Bilrimaid Island to Um-Yifeenah Island.
Abu Dhabi awarded three packages for phase one of the MIPP in 2024. The contract for package 1A was awarded to a joint venture of Turkish contractor Dogus Construction and UAE firm Gulf Contractors. Package 1B was awarded to a joint venture of Yas Projects (Alpha Dhabi Holding) and China Railway International Group. Beijing-headquartered China Harbour Engineering Company and the UAE’s Agility Engineering & Contracting Company won the contract for package 1C.
Phase one starts at the existing Saadiyat interchange, connecting the E12 to the MIPP, and ends at the recently constructed Um-Yifeenah highway.
It comprises a dual main road with a total length of 8km, including four traffic lanes in each direction, two interchanges, a tunnel and associated infrastructure works.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16858325/main.jpg -
Oman seeks adviser for gas-fired IPPs
15 May 2026
Oman’s Nama Power & Water Procurement Company (PWP) has issued a request for proposals for technical consultancy services for the development of new gas-fired independent power projects (IPPs) in the sultanate.
The state offtaker said the projects will have a total capacity of up to 2,800MW.
The bid submission deadline is 17 June.
While Oman is accelerating investment in renewable energy and battery storage, gas-fired thermal generation is expected to remain a core part of the country’s power mix over the coming decade.
The Misfah and Duqm combined-cycle gas turbine power plants are advancing towards construction following the appointment of China-headquartered Shandong Electric Power Construction No. 3 Company (Sepco 3) and South Korea’s Doosan Enerbility as contractors.
According to Nama PWP’s 2025 annual report, the Duqm IPP will have a total capacity of 877MW, including 555MW of early power capacity, which is scheduled to commence in Q2 2028.
The Misfah IPP will have a total capacity of 1,700MW, including 1,203MW of early power capacity, which is scheduled to commence in the same quarter.
Nama PWP has also recently awarded new power-purchase agreements (PPAs) to three IPPs to extend the operating life of existing gas-fired power plants beyond the expiry of their current contracts.
The new agreements for the 750MW Sohar 2 IPP and 750MW Barka 3 IPP will take effect on 1 April 2028 and run until 31 March 2043. The agreement for the 200MW Sur IPP will commence on 1 April 2029 and run until 31 March 2044.
The awards form part of Nama PWP’s 2028-29 procurement programme. The programme aims to secure firm generation capacity from existing assets whose current PPAs are due to expire during that period.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16857037/main4750.jpg -
Alghanim submits lowest offer for Kuwait oil refinery project
15 May 2026
Kuwait’s Alghanim International General Trading & Contracting has submitted the lowest bid for a contract to upgrade the country’s Mina Al-Ahmadi (MAA) refinery.
The client is state-owned downstream operator Kuwait National Petroleum Company (KNPC). The project scope covers upgrades to water transmission and storage infrastructure at the refinery.
The contract will be delivered under an engineering, procurement and construction (EPC) model. The tender was issued in October 2025 with an initial bid deadline of 4 January 2026, which was later extended several times. The most recent rescheduling moved the deadline from 19 April to 10 May.
Alghanim submitted a bid of KD37.0m ($120m), significantly lower than the other two bidders, both Kuwait-based: Heavy Engineering Industries & Shipbuilding Company (Heisco) at KD60.6m ($197m) and Gulf Spic General Trading & Contracting at KD63.9m ($207m).
The project is expected to take two years to complete and will expand water storage capacity at the facility by extending existing tanks or constructing new ones. The contractor will also develop associated infrastructure and upgrade systems that transport desalinated water to the refinery, including pipelines and related equipment.
In its 2024-25 annual report, KNPC said the project will help meet water demand for the facility’s refining and gas production units.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16852744/main.jpg -
Civil and piping work starts on Iraq field development
15 May 2026
Civil works and piping work have started for the project to develop a second central processing facility (CPF) at Iraq’s Ratawi oil and gas field, according to industry sources.
The project is part of the $27bn Gas Growth Integrated Project (GGIP), which is being developed by TotalEnergies along with its partners Basra Oil Company (BOC) and Qatar Energy.
Phase one of the GGIP is expected to be worth about $10bn.
Work is progressing on the project despite logistical problems related to the regional conflict that broke out after the US and Israel attacked Iran on 28 February.
While early works are ongoing, equipment needed for later stages of the project is being delayed as it was due to be transported to the project site using ships that would have travelled through the Strait of Hormuz.
Shipping through the Strait is still severely disrupted due to the regional conflict.
In September, Turkiye’s Enka signed a contract to develop the second CPF at Iraq’s Ratawi field as part of the second phase of the field’s development.
Enka did not give a value for the contract, but it is believed to be worth more than $1bn.
In November, US-based KBR was selected by Enka to provide detailed design services for the project.
Enka’s contract covers the engineering, procurement, supply, construction and commissioning of the CPF for the project known as the Associated Gas Upstream Project Phase 2 (AGUP2).
The aim of the AGUP2 project is to process oil and associated gas from the Ratawi oil field to increase production capacity to 210,000 barrels a day of oil and 154 million standard cubic feet a day of gas.
GGIP masterplan
The GGIP programme is being led by TotalEnergies, the operator, which holds a 45% stake.
Basra Oil Company and QatarEnergy hold 30% and 25% stakes, respectively. The consortium formalised the investment agreement with the Iraqi government in September 2021.
The four projects that comprise the GGIP are:
- The Common Seawater Supply Project (CSSP)
- The Ratawi gas processing complex
- A 1GW solar power project for Iraq’s electricity ministry
- A field development project at Ratawi, known as the Associated Gas Upstream Project (AGUP)
The CSSP is designed to support oil production in Iraq’s southern oil and gas fields – mainly Zubair, Rumaila, Majnoon, West Qurna and Ratawi – by delivering treated seawater for injection, a method used to boost crude recovery rates and improve long-term reservoir performance.
China Petroleum Engineering & Construction Corporation (CPECC) won a $1.61bn contract in May to execute EPC work for the gas processing complex at the Ratawi field development.
CPECC’s project team based in its Dubai office is performing detailed engineering work on the project.
In August last year, TotalEnergies awarded China Energy Engineering International Group the engineering, procurement and construction (EPC) contract for the 1GW solar project at the Ratawi field. A month later, QatarEnergy signed an agreement with TotalEnergies to acquire a 50% interest in the project.
The 1GW Ratawi solar scheme will be developed in phases, with each phase coming online between 2025 and 2027. It will have the capacity to provide electricity to about 350,000 homes in Iraq’s Basra region.
The project, consisting of 2 million bifacial solar panels mounted on single-axis trackers, will include the design, procurement, construction and commissioning of the photovoltaic power station site and 132kV booster station.
Separately, in June, TotalEnergies awarded China Petroleum Pipeline Engineering an EPC contract worth $294m to build a pipeline as part of a package known as the Ratawi Gas Midstream Pipeline.
Also, TotalEnergies awarded UK-based consultant Wood Group a pair of engineering framework agreements in April, worth a combined $11m, under the GGIP scheme.
The agreements have a three-year term under which Wood will support TotalEnergies in advancing the AGUP.
One of the aims of the AGUP is to debottleneck and upgrade existing facilities to increase production capacity to 120,000 b/d of oil on completion of the first phase, according to a statement by Wood.
READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDFGlobal energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.
Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
> REGIONAL LNG: War undermines business case for Middle East LNG> CAPITAL MARKETS: Damage avoidance frames debt issuance> MARKET FOCUS: Conflict tests UAE diversificationTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16852654/main.png -
Abu Dhabi selects Yas Island site for $1.7bn Sphere venue
14 May 2026
Abu Dhabi’s Department of Culture & Tourism (DCT Abu Dhabi) and US-based Sphere Entertainment have selected Yas Island as the location for the $1.7bn Sphere Abu Dhabi project.
The venue will be built on a plot between Yas Mall and SeaWorld Abu Dhabi, close to Yas Island’s theme parks and attractions. Construction is expected to be completed by the end of 2029. Dubai-listed Alec is understood to be the selected contractor and has been working on the project’s pre-construction phase.
The project will be the first Sphere venue outside the US. It is expected to echo the scale of Sphere Las Vegas, with a capacity of up to 20,000 depending on configuration.
DCT Abu Dhabi said it will coordinate enabling and infrastructure works with Abu Dhabi entities, including the Department of Municipalities & Transport and its Integrated Transport Centre, the Department of Energy, Taqa, Etihad Rail and Aldar. The scope includes road enhancements, site access and site-wide infrastructure integrated with surrounding Yas Island assets.
Sphere Abu Dhabi is the latest addition to Abu Dhabi’s integrated tourism and destination-development pipeline on Yas Island, alongside major attractions and the Disney theme park resort that was announced in 2025.
DCT and Sphere Entertainment finalised an agreement last year related to the construction, development and operation of the Sphere entertainment venue in Abu Dhabi. According to the agreement, Sphere Entertainment granted DCT the exclusive rights to build and operate the Sphere Abu Dhabi entertainment venue.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16837302/main.gif