Oil and gas projects surge boosts GCC output

06 February 2019
The closing date for entries to the MEED Projects Awards 2019 in association with Mashreq is nearly upon us, so it is a good time to look at trends highlighted by this year’s awards

While volatility in the global oil markets over the past four years has created short-term uncertainty over project spending in the region, the long-term strategic objectives for the region’s oil producers remain unchanged: increase production capacity and diversify the product range.

The strategic goals received a major boost in 2018 with a 52 per cent surge in the value of oil, gas and petrochemicals projects completed in the GCC, adding new capacity and maintaining the output of existing facilities.

In total, some $34.6bn-worth of oil, gas and petrochemicals projects were completed in the GCC in 2018, more than any other year over the past decade.

The value of completed projects was 52 per cent higher than the $22.8bn completed in 2017, and 78 per cent up on the $19.5bn completed in 2016.

Saudi Arabia and the UAE accounted for the lion’s share of completed projects, with 80 per cent of all oil, gas and petrochemicals projects by value completed in the GCC in 2018 being in these two countries, largely through Abu Dhabi National Oil Company (Adnoc) or Saudi Aramco.

The 10 biggest oil, gas and petrochemicals projects completed in the GCC in 2018
ProjectProject sponsorCountryValue ($m)
Nasr field development: phase 2: full-field developmentAdnoc OffshoreUAE4,300
Divided Zone facilitiesKhafji Joint OperationsSaudi Arabia3,150
Nasr field developmentAdnoc OffshoreUAE3,000
Sohar refinery expansion projectOman Refineries & Petrochemicals CompanyOman2,700
Master gas system expansion: phase 1Saudi AramcoSaudi Arabia2,100
Jizan refinery project: CDU/VDI, flare & pipe rack - package 9Saudi AramcoSaudi Arabia1,900
Yanbu refinery expansionLuberefSaudi Arabia1,400
Nasr full-field development: phase 2: package 2: platforms & wellheadsAdnoc OffshoreUAE1,400
Master gas system expansion: phase 1: compressor booster stationSaudi AramcoSaudi Arabia1,300
Jubail methyl methacrylate & polymethylmethacrylate plantsSabic/LuciteSaudi Arabia1,200
Source: MEED Projects

The biggest oil and gas project to come onstream in 2018 by value was Adnoc Offshore’s $4.3bn Nasr field development: phase 2. Located in Abu Dhabi’s Western Region, the project included the development of 123 wells.

The second-biggest oil and gas project completed in the GCC in 2018 was the $2.6bn scheme to develop offshore oil in Saudi Arabia’s half of the Divided Zone it shares with Kuwait.

The client on the Divided Zone facilities project was Khafji Joint Operations, a 50:50 joint venture of Saudi Arabia’s Aramco Gulf Operations and Kuwait Gulf Oil Company (KGOC).

The top 10 biggest projects from the period are worth a total of $22.5bn, with projects in Saudi Arabia accounting for about $11.1bn.

The MEED Projects Awards 2019 in association with Mashreq recognise the best projects in the GCC. Reflecting the latest market trends, this year’s awards feature 17 different categories for entries. If you have been involved in a project completed in 2017 or 2018 that you believe deserves to be recognised, you can submit your entry at: MEED Projects Awards 2019.

 

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