Major projects currently under way in the Midle East’s hydrocarbons sector are worth in excess of $300bn, according to MEED’s latest update of oil and gas projects in the region.
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
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