Although the number of engineering, procurement and construction contracts signed in the Gulf’s oil and gas sector in the 12 months to April 2008 fell to $15bn, down from $45bn in the previous 12 months, MEED’s data shows that infrastructure development is still booming.

Regional

Client Project Scope Cost ($m) Status
Tunisian-Libyan Gas Transportation Company (Joint Gas) Melitah-Gabes pipeline 266-kilometre-long, 26-inch-diameter pipeline to supply Libyan gas to Tunisia 250 EPC launch pending; due to come on stream 2009
Turkish Energy and Natural Resources Ministry Arab Gas pipeline extension 240-kilometre-long, 36-inch-diameter gas pipeline between Homs, Syria, and Kilis, Turkey; capacity 10 bcm na Planned 2008; an Egyptian/Syrian/Turkish joint venture company will be set up to build the extension
East Mediterranean Gas Egypt-Israel pipeline Subsea pipeline from El-Arish to Ashkelon; capacity 7 bcm na Due for completion 2008

Algeria

Client Project Scope Cost ($m) Status
Sonatrach/ Anadarko El Merk field development Development of oil production hub on El-Merk field including major wet gas processing programme to recover oil from four fields in the Berkine basin 3,000-4,000 Technical bids submitted February 2008 for main construction package; April deadline for commercial bids postponed pending reserves review
Sonatrach/ FCP Block 405b field development 200-400 million cf/d gas processing plant and export pipelines from MLE discovery, block 405b, Berkine basin; development of CACF 1,000-1,300 Four bidders for main package: JGC Corporation, Petrofac International, SNC Lavalin, Italy’s Saipem. Financial close due end-July. Development plans for CACF due to be submitted end-August
Sonatrach/ BP/ Statoil In Salah field development Installation of gas compression facilities to maintain gas production at 9 bcm/y 600 Petrofac International carrying out main EPC contract; start-up set for early 2010
Sonatrach/ Rosneft Block 245 south field development Development of oil block in Illizi basin up to 4,000 Oil extraction due to begin in 2011
Medgaz Medgaz pipeline 8 bcm/y, 220-kilometre-long subsea pipeline between Beni Saf in northwest Algeria and Almeria on Spanish coast 1,500 Saipem carrying out EPC for subsea pipeline; first gas due mid-2009
Galsi Galsi pipeline 8 bcm/y subsea pipeline to Italy via Sardinia 3,000 FEED under way. Shore approach study and marine survey due for completion mid-2008. Final investment decision due mid-2009; start-up H1 2012
Sonatrach/NNPC Trans-Saharan Gas Pipeline 4,188-kilometre-long pipeline to bring 20-30 bcm/y of Nigerian gas to Algeria for export to Europe 13,000 Abuja confirmed gas supply for the pipeline early 2008; decision on go-ahead due within 12 months. Project completion 2015
Sonatrach Tiaret refinery 15 million t/y grassroots refinery project 5,000-7,000 Feasibility studies completed March 2007; decision on go-ahead expected by end-2008
Sonatrach Arzew LNG (Gassi Touil) 4 million-t/y LNG train at Arzew; formerly part of the Gassi Touil integrated LNG project 3,000-4,000 KBR, Technip, Snamprogetti and Petrofac International invited to submit basic technical proposals and price estimates in mid-April. Detailed technical proposals due in late summer
Sonatrach Skikda LNG 4.5 million-t/y LNG train to replace 3 of 6 trains destroyed in an explosion in January 2004 3,000 KBR carrying out EPC; first gas due 2012

Bahrain

Client Project Scope Cost ($m) Status
Bahrain Petroleum Company (Bapco) Refinery Gas Desulphurisation project BitmapBapco is constructing a new gas desulphurisation plant to handle the propane and butane that will be generated from its Sitra refinery 150 Foster Wheeler expected to complete EPC by mid 2008
Bahrain Petroleum Company (Bapco)/Neste Oil Lube Oil Refinery BitmapBapco is constructing a lube oil refinery at Sitra capable of producing 400,000 t/y of sulphur-free very high viscosity index base oil for blending top-tier lubricants. 300 Bids for EPC contract due on 22 April
Bahrain Petroleum Company (Bapco) Offshore Exploration Occidental Petroleum and PTT Exploration won contracts to explore offshore in late 2007 na Exploratory work under way
Bahrain Petroleum Company (Bapco) Awali field development Bapco has announced plans to double output at its Awali field to 70,000 b/d na Three companies – ExxonMobil Corporation, Occidental Corporation and AP Moller Maersk are understood to be interested. A tender will be awarded by the end of the year.

Egypt

Client Project Scope Cost ($m) Status
Egyptian Refining Company Mostorod refinery New refinery to process 4.2 million t/y of fuel oil residue from existing refineries to produce 2.3 million t/y of high-grade diesel and 700,000 t/y of gasoline. 2,400 Financial close due April 2008;
JV of Mitsui and GS Engineering & Construction set to complete FEED by mid-2008 and will begin construction in H2. Due to come on stream October 2011.
Ain Sokhna Refining & Petroleum Company Ain Sokhna export refinery 150,000-200,000-b/d export refinery at Ain Sokhna including fluid catalytic converter to process heavy crude into diesel and gasoline 2,000-3,000 Uhde and Foster Wheeler carrying out FEED and expected to carry out EPC
Local/ Kuwait joint venture Ain Sokhna domestic refinery 140,000-b/d refinery to produce diesel for local market 2,500 In planning stages
Segas Damietta train 2 Addition of 6.9 bcm/y train 3,000-4,000 Not yet agreed. Planned start-up 2011
ELNG Idku train 3 Addition of 4.97 bcm/y train 2,500-3,000 Not yet agreed. Planned start-up 2011
Egas El-Hamra GTL plant 47,000 b/d / 94,000 b/d GTL plant, west of Alexandria 5,000-10,000 MoU signed 2005; proposals submitted to Egas
Egas/ Apic/ Danagaz Ras Shukheir gas liquids plant 1.54 bcm/y natural gas processing plant, producing 120,000 tonnes a year of propane and butane in liquid form na Due for completion late 2009

Iran

Client Project Scope Cost ($m) Status
NIOC / ONGC / Sinopec Yadavaran oil field development Development of the field which straddles the Iran-Iraq border with potential output of 300,000 b/d 2,000 Iran and Sinopec to finalise the deal by May.
POGC South Pars Gas Field Development – Phases 22-24, Iran Phases 22-24 will involve the supply of 40 million cm/d of treated natural gas to the domestic gas network, the recovery of petrochemical quality ethane at a rate of 750,000 t/y, 800,000 t/y of liquefied petroleum gas (LPG) for export, 60,000 b/d of condensate for export and sulphur recovery of 360 tonnes per day, also for export. 3,500 Petropars and Iranian Offshore Engineering & Construction Company have recently been prequalified for the EPC contract. An award is expected by the fourth quarter of 2008.
NIOC / INA Moghan 2 block exploration The deal is on the exploration and development of Moghan 2 block in Ardebil province, covering an area of 3230 square kilometres. 200 Exploration deal awarded to INA Naftaplin (INA) in April.
NIORDC Khuzestan refinery Construction of 180,000 b/d greenfield crude refinery to process heavy crude oil from the Azadegan field. 2,200 Iran’s Energy Industries Engineering & Design (EIED).
IOOC Forouzan and Esfandiar oil field development The development aims to increase oil production to 37,000 b/d after development stalled in the last few years. 500 Foreseen production of phase 1 of development of Esfandiar is at 10000 b/d and of its phase 2 at 20000 b/d.
NIOC / Shell South Pars phase 13 Exploration and production from phase 13 of the field. 10,000 NIOC has demanded a final investment decision from Shell by the end of June.
NIOC / Total South Pars phase 11 and associated LNG development Exploration and production from phase 11 of the field with the feedstock of the first two LNG trains of about 4.5 million tonnes a year (t/y). 10,000 NIOC has demanded a final investment decision from Total by the end of June.
IOOC Lavan gas field development IOOC has firmed plans for the giant Lavan gas field which boasts recoverable gas resources estimated at more than 6 trillion cubic feet (tcf). The volume of gas-in-place of Lavan gas field is around 12 tcf. 500 Invitations to bid for the EPC contract due by the end of the second quarter of 2008.
NIOC Iran-Pakistan-India gas pipeline To support the rapid economic growth, the Indian government has proposed the construction of a 2700-kilometre-long Iran-Pakistan-India natural gas pipeline to transport gas from Iran to India. 7,400 The three countries are due to meet to discuss the logistics of the pipeline on 23 April.
PEDCO Salman oil and gas field development The plan aims at commissioning the field’s Dalan reservoir to produce some 540 mcf/d of gas and 6500 bpd of condensate, as well as boosting its oil production by 50000 bpd. 800 NIOC is locked in a dispute with Dana Gas shareholder Crescent Petroleum over gas supplies from the Salman field.

Kuwait

Client Project Scope Cost ($m) Status
KNPC New refinery at Al-Zour Construction of 615,000-b/d grassroots refinery to produce low-sulphur fuel-oil 15,000 Bids for the four main process packages were submitted in December, with awards scheduled to be made by end of April
KNPC Clean fuels project Upgrade of Mina al-Ahmadi and Mina Abdulla refineries to produce cleaner refined products and increase overall refining capacity 6,000-8,000 Prequalifiction applications for all three main EPC packages due in May
KNPC Fifth gas train Construction of new fractionation train at Mina al-Ahmadi to process up to 1 billion cf/d 800-1,000 Under feasibility study
KOC Sea and effluent water injection programme Treatment and injecton of water into three northern oil fields to maintain reservoir pressure 700 EPC bids are due to be submitted on 5 May
KOC BS 160 Construction of new booster station in southeast Kuwait 660 Snamprogetti is low bidder. Award due soon
KOC New gas pipeline Installation of new gas pipeline from BS 131 to LPG plant at Mina al-Ahmadi refinery 200 Bids are due by 23 April
KOC GC 16 Construction of new gathering centre in west Kuwait, with handling capacity of more than 200,000 b/d 700 Tender due to be issued by end of April
KOC EPF phase 2 Second phase five-year BOT of EPF to increase free gas production to 600 million c/fd by 2010 500-1,000 Tender to be issued this year
KOC New oil pipeline Installation of new oil line between transit line 3 and Doha east power plant 100 Bids are due by 16 April
KOTC Four new VLCCs Delivery of four VLCCs 600 Four shipyards have until 30 April to submit their proposals

Libya

Client Project Scope Cost ($m) Status
NOC Ras Lanuf refinery upgrade Restore 220,000-barrel-a-day capacity; installation of delayed coker to upgrade fuel oil to coke and vacuum gas oil for diesel production 2,000-3,000 Al-Ghurair subsidiaries Trans-Asia Gas International and Star Petro Energy – the Star Consortium – signed framework agreement with NOC in January.
NOC Azzawiya refinery upgrade Restore capacity and upgrade 120,000-b/d refinery 2,000 NOC in talks with potential international partners
BP/ NOC Sirte and Ghadames exploration Seven-year exploration and development of more than 50,000 square kilometres of acreage for gas development 2,000 Exploration and production sharing agreement May 2007
SOC/ Shell Marsa el-Brega LNG upgrade and expansion Modernisation of existing plant and restoration of 4.4 bcm/y nameplate capacity and extension of lifespan by 25 years. 600 Construction tenders for upgrade due to be issued H1 2008. First exploration rig mobilised early 2008, second to follow later in year; 3-4 wells due to be drilled by end of 2008.
SOC/ Shell Ras Lanuf LNG plant Grassroots LNG plant 3,000-4,000 Site selection complete; soil investigation under way. Project dependent on results of national gas allocation study due for completion June 2008.

Morocco

Client Project Scope Cost ($m) Status
Samir/ ONE/
Akwa Holding
LNG receiving terminal 5 bcm/y receiving terminal, construction of new port and gas pipeline infrastructure 1,400 Pre-feasibility studies carried out by Tractebel. Awaiting go-ahead from Rabat. Expected completion 2013

Oman

Client Project Scope Cost ($m) Status
BP Tight gas development Production of up to 2 billion cf/d of tight gas from two fields 2,000+ Engineering and seismic acquisition is under way
Oil Ministry Duqm refinery and petrochemical complex Development of grassroots refinery and integration with associated petrochemical complex 10,000 Final government approval awaited. Feasiblity study carried out by Jacobs
PDO Nimr water treatment BOT development of effluent water treatment plant at Nimr field and reuse to grow reed beds for biofuel 500 Shell is understood to be in line for concession

Qatar

Client Project Scope Cost ($m) Status
Qatar Petroleum, ExxonMobil Corporation Qatargas II Two separate LNG trains of 7.8m tonnes a year each 4,000 To be completed in Sep 2008 and March 2009 respectively
Qatar Petroleum, ExxonMobil Corporation RasGas 3 Two separate LNG trains of 7.8m tonnes a year each 4,000 Train 6 to be completed in 2008 and Train 7 by 2009
Qatar Petroleum, ConocoPhillips, Mitsui Qatargas 3 One LNG train of 7.8m tonnes a year 4,000 2009
Qatar Petroleum, Shell Qatargas 4 Train 7, 7.8m tonnes a year 4,000 2010
Qatar Petroleum, ExxonMobil Corporation Barzan gas project Capacity of 1.6bn cubic feet a day of gas 1,700 FEED contract to be awarded shortly
Qatar Petroleum, ExxonMobil Corporation Laffan Condensate Refinery Capacity of 146,000 b/d, which is expected to double by 2010. 700 Daewoo/GS Engineering to complete EPC contract by fourth quarter of 2008

Saudi Arabia

Client Project Scope Cost ($m) Status
Saudi Aramco Ras Tanura East Coast Refinery 400,000-b/d heavy oil refinery 8,000 EPC contract to be awarded in 3Q08. WorleyParsons doing FEED
Saudi Aramco Ras Tanura Refinery Upgrade To reduce sulphur content 500 Samsung Enginnering Company carrying out FEED
Saudi Aramco/ Dow Chemical Ras Tanura Integrated Refinery and Petrochemicals Complex Upgrading of the existing 550,000-barrel-a-day refinery and integration with a new petrochemicals complex, which will have a 1.2 million-tonne-a-year ethane/naphtha steam cracker as its central element. 22,000-26,000 Final investment decision to be made in summer 2008. KBR is management consultant
Saudi Aramco/ Total Jubail refinery 400,000-b/d export oil refinery 10,000-12,000 Final investment decision to be made in summer 2008. Technip currently finishing FEED
Saudi Aramco/ ConocoPhillips Yanbu refinery 400,000-b/d export oil refinery 10,000-12,000 Final investment decision to be made in summer 2008. KBR working on FEED
Saudi Aramco Khurais Oil Field development Construction of a gas oil seperation plant and seawater pipeline 4,450 Snamprogetti, Foster Wheeler, Hyunudai Engineering & Construction, Saipem and Suedrohrbau carrying out EPC contracts
Saudi Aramco Khursaniyah Oil Field development Producing facilities for 500,000 b/d crude oil 700 Snamprogetti finishing off its EPC work
Saudi Aramco Khursaniyah Gas Plant Gas plant to treat gas from central Khursaniyah facilities 500 Bechtel Corporation and Technip carrying out EPC work
Saudi Aramco Shaybah field development Expansion of central processing facilities to increase output by 250,000 b/d 1,000 SNC Lavalin carrying out EPC work
Saudi Aramco Manifa offshore field development Expansion of oil field to 900,000 b/d 4,000 Foster Wheeler carrying out FEED. Halliburton and Schlumberger sharing drilling. EPC contract to be awarded
Saudi Aramco Ras Al-Zour refinery 300,000-350,000 b/d topping refinery under study 2,000 EPC contract to be tendered next year

Sudan

Client Project Scope Cost ($m) Status
Petronas Port Sudan refinery 174,000-b/d grassroots refinery 3,000 Three bids received for construction contract, but tender on hold pending review of contract model; due to come on stream end-2011

Syria

Client Project Scope Cost ($m) Status
Petro-Canada Ebla gas treatment plant Gas plant treatment plant on Ash Shaer field in northwest to produce 88 million cubic feet a day of gas, 150 tonnes a day of liquified petroleum gas (LPG) and some condensate. 477 Petrofac International signed main contract April 2008. First gas due 2010.

Tunisia

Client Project Scope Cost ($m) Status
BG Group/ ETAP Hasdrubal field development 4.8 million-cm/d 1,200 Petrofac International working on onshore package. First gas expected in June 2009.
Qatar Petroleum International La Skhira refinery

United Arab Emirates

Client Project Scope Cost ($m) Status
Adco SAS full-field development Increase of crude production from three onshore fields by 150,000 b/d 3,600 Bids for the main EPC contract are due in May. Four groups are competing
Adco 1.8 million project Increase of oil production from four onshore fields by 400,000 b/d 5,000+ WGI is carrying out FEED. PMC contract out to bid. First EPC tenders expected next year
Adco Bab compression facilities Installation of compressors at Bab field to increase gas output 1,500 Technip is carrying out re-FEED after original FEED/EPC bids came double the initial budget last year
Adnoc Shah gas development Production of up to 1,000 million cf/d of sour gas from Shah field 5,000+ ConocoPhillips has been provisionally selected to take stake in scheme
Adnoc Bab gas development Production of sour gas from Bab field 5,000+ Proposals from IOCs believed to be under evaluation
Dolphin Energy Taweelah-Fujairah pipeline Design and build of gas pipeline to supply fuel for IWPP 500+ Six companies have submitted technical offers. Commercial bids due in May
Gasco Hail gas field development Production of up to 500 million cf/d of sour gas from shallow offshore field 1,000+ Under feasibility study
Gasco Gas network Installation of gas network in Abu Dhabi city 300 Three groups are due to submit bids in May for EPC contract
Gasco Field modifications work Upgrade and modifications to Asab, Bu Hasa and Bab fields 1,000+ Veco is the FEED contractor. EIL is PMC. Tenders for EPC packages due next year
Gasco/ Adgas/ Adma-Opco Integrated gas development Production of more than 700 million cf/d of gas from offshore fields and processing at Ruwais and Habshan 5,000+ Prequalification applications have been submitted for five main EPC packages of first phase of development. Tenders expected soon
IPIC Grassroots Fujairah refinery Construction of refinery with capacity of about 250,000 b/d 5,000 Client is in talks for partner position
Takreer Ruwais refinery expansion Construction of 400,000-b/d refinery at Ruwais 8,000+ Bechtel is the FEED contractor, PMC is Fluor. Tenders for EPC packages due next year
Takreer/ Neste/ OMV Ruwais lube oil plant Construction of lube oil facility with capacity of 50,000 b/d 500 Bechtel has been awarded FEED contract
Zadco Offshore crude increment programme Eight major projects to increase output by 250,000 b/d to 750,000 b/d 5,000+ Amec has just been selected for programme management consultancy. FEED is being carried out by various different firms. EPC tenders due next year
Zadco Satah field development Upgrade of facilities to maintain capacity of 25,000 b/d 600 Project has been reactivated after being put on hold last year

Company names

Adco=Abu Dhabi Company for Onshore Oil Operations; Adnoc=Abu Dhabi National Oil Company; APIC = Arab Petroleum Investment Corporation; EGAS = Egyptian Natural Gas Holding Company; EIL=Engineers India; ELNG = Egyptian LNG; ETAP = Entreprise Tunisienne d’Activites Petrolieres; FCP = First Calgary Petroleums; Gasco=Abu Dhabi Gas Industries Company; IOC=international oil company; IPIC=International Petroleum Investment Company; KNPC=Kuwait National Petroleum Company; KOC=Kuwait Oil Company; KOTC=Kuwait Oil Tanker Company; NNPC = Nigerian National Petroleum Corporation; NOC = National Oil Company; ONE = Office National de l’Electricite; PDO=Petroleum Development Oman; SOC = Sirte Oil Company; Takreer=Abu Dhabi Oil Refining Company; WGI=Washington Group International; Zadco=Zakum Development Company

Terminology

b/d =barrels a day; bcm/y billion cubic metres a year; bcm=billion cubic metres; BOT=build-operate-transfer; BS=booster station; CAFC=Central Area Field Complex; cf/d=cubic feet a day; cm/d cubic metres a day; cm/y = cubic metres a year; EPC=engineering, procurement and construction; EPF=early production facility; FEED=front-end engineering and design; GC=gathering centre; GTL = gas-to-liquids; H1 = first half; LNG = liquefied natural gas; LPG=liquefied petroleum gas; MoU = memorandum of understanding; VLCC=very large crude carrier

Source: MEED