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 $19.5bn completed in 2016.
Saudi Arabia and the UAE accounted for the lion’s share of completed projects, with 80 per cent of all oil, gas and petrochemicals projects by value completed in the GCC in 2018 being in these two countries, largely through Abu Dhabi National Oil Company (Adnoc) or Saudi Aramco.
|The 10 biggest oil, gas and petrochemicals projects completed in the GCC in 2018|
|Project||Project sponsor||Country||Value ($m)|
|Nasr field development: phase 2: full-field development||Adnoc Offshore||UAE||4,300|
|Divided Zone facilities||Khafji Joint Operations||Saudi Arabia||3,150|
|Nasr field development||Adnoc Offshore||UAE||3,000|
|Sohar refinery expansion project||Oman Refineries & Petrochemicals Company||Oman||2,700|
|Master gas system expansion: phase 1||Saudi Aramco||Saudi Arabia||2,100|
|Jizan refinery project: CDU/VDI, flare & pipe rack – package 9||Saudi Aramco||Saudi Arabia||1,900|
|Yanbu refinery expansion||Luberef||Saudi Arabia||1,400|
|Nasr full-field development: phase 2: package 2: platforms & wellheads||Adnoc Offshore||UAE||1,400|
|Master gas system expansion: phase 1: compressor booster station||Saudi Aramco||Saudi Arabia||1,300|
|Jubail methyl methacrylate & polymethylmethacrylate plants||Sabic/Lucite||Saudi Arabia||1,200|
|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.