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ENGINEERING,
PROCUREMENT
& CONSTRUCTION
IN THE MIDDLE EAST
OIL & GAS MARKET OUTLOOK 2013
www.meed.com
Sponsored by
01 EPC Cover.indd 1
Sponsored by
29/09/2013 18:16
Overview
contacts
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Tapping the regions

EPC opportunity
elcome to Engineering, Procurement & Construction in the Middle

East, sponsored by Arabtec and Samsung Engineering. The next
decade will be a golden age for the regions hydrocarbons industry.
With oil prices remaining at historically high levels, this will support substantial
spending, which is also driven by a need to extract more value from the hydrocarbons chain, rising regional and global demand for refined products, and the focus
on local job creation, training and long-term labour force enhancements.
With nearly $1trillion of oil, gas and related industry engineering, procurement
and construction (EPC) projects planned or under way in the Middle East and
North Africa (Mena) region, the EPC business in this sector will witness tremendous growth over the coming years, providing opportunities for new players to
enter the market as lead contractors or sub-contractors.
The oil, gas, power, and related infrastructure EPC sector is a key element of
Arabtecs growth strategy, and the companys goal is to become a major player
with significant market share over the coming five years.
Arabtec is already present in the oil and gas EPC sector with its subsidiary
Target Engineering, based in Abu Dhabi. Target Engineering has a long history
ofsuccessful EPC projects, with 38 years of operational experience.
Arabtec has experience in oil and gas EPC projects and substantial on-theground presence with more than 63,000 personnel in the region, especially in key
growth areas such as Saudi Arabia, the UAE, Qatar and Kuwait. Arabtecs recent
partnership with Samsung Engineering, the biggest oil and gas EPC contractor in
terms of contracts under execution, was a logical step and will create the foundations for a regional leader in this sector.
The Arabtec-Samsung Engineering partnership will provide EPC services on
large-scale, multibillion-dollar projects in the oil and gas, power and related infrastructure sectors in the Mena region. Arabtec-Samsung Engineering is incorporated and headquartered in Abu Dhabi and is owned 40per cent by Arabtec,
40per cent by South Koreas Samsung Engineering and 20 per cent by the local
Tasameem Property Investment.
The partnership will engage in a range of sectors from hydrocarbon processing,
refining, petrochemicals and fertilisers to industrial and related infrastructure
Contents
FEATURES
4 Overview Diversification and
job creation drives project activity
6 Saudi Arabia Kingdom set
toremain the major player in
project spending
8 Iraq The emerging Gulf giant
offers enormous potential, along
with significant challenges
10 UAE An increase in EPC contract
awards in 2013 is expected to
continue in 2014
12 Qatar Opportunities remain
firmly in the downstream and
chemicals sectors
13 Kuwait Crude oil production
tohit 4 million barrels a day
by2020
14 Oman Schemes pushed back
to2014 should make it a
bumper year
15 North Africa Algeria, Egypt
andLibya offer strong EPC
opportunities, but need stability
17 Databank Top 40 oil and gas
EPC projects
projects, such as power plants, water treatment and environmental schemes,

andmetallurgy and industrial projects.
Arabtec-Samsung Engineering is also focused on creating jobs and bringing
long-term skills and experience to the local market. A key part of the companys
strategy will be to establish a centre of excellence in Abu Dhabi for training
cover: shutterstock
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Emirati engineers, giving aspiring locals access to both the parent companies
expertise, technology, know-how, support and resources.
Shohidul Ahad-Choudhury
Head of Mergers and Acquisitions
Arabtec Holding PJSC
www.meed.com
03 Contents.indd 3
Oil and gas EPC 2013 | MEED | 3
29/09/2013 18:48
Overview
regions EPC market

set for a golden age
Rising demand
The record levels of investment have been
driven by rising oil, gas and refined product
demand at home and abroad, as well as the
pressure to create much-needed employment
through the development of a downstream
petrochemical industry in Saudi Arabia.
Boosting gas supplies has been a particular
priority as governments seek to meet high local
demand growth fuelled by power, oil and
industrial sectors.
All of the GCC states have faced an
increasingly constrained gas market, which has
resulted in sour and tight gas reserves being
developed and the first liquefied natural gas
(LNG) terminals being built.
The two biggest oil and gas project investors
are Riyadh and Abu Dhabi. Saudi Arabia has
awarded $78.65bn-worth of EPC contracts since
2008, while the UAE, predominantly Abu Dhabi,
4 | MEED | Oil and gas EPC 2013
04-05 Overview.indd 4
MENA energy epc awards, 2008-13*

($m)
80000
80,000
70,000
70000
60,000
60000
50,000
50000
40,000
40000
30,000
30000
20,000
20000
10,000
10000
08
Q Biggest spender: Riyadh has invested the most

came a close second, awarding more than
$64bn of EPC contracts. Abu Dhabi and Riyadh
both enjoyed several years of record oil
revenues and had the funds in place to support
a swathe of project spending across the whole
hydrocarbon value chain.
An important trend made clear from the
investments being made over this period is that
upstream oil fields are no longer the number
one priority for many of the regions producers.
Investing money across the full value chain to
develop non-associated gas, increase refining
capacities and make new investments in
petrochemicals, aimed at diversifying
economies and creating job opportunities,
is the new strategy.
Saudi Arabias national oil company (NOC),
Saudi Aramco, has been the biggest investor
over the past five years and, according to MEED
Projects, has spent more than $46bn since
2008. The state-owned oil company has
invested across several sectors covering
Looking at future
trends, it is likely that
therewill be another
paradigm shift in the
next10years
09
10
20
11
20
**
13
20
*=Oil, gas and related industries; **=Jan-Sep 2013. Source: MEED Projects
20
20
12
20
upstream and downstream oil and gas,

petrochemicals and power plants.
As well as having the responsibility of being
the worlds swing producer for crude oil, able to
raise and decrease oil production to counter
balance fluctuations in the energy markets, it
has also been thrust to the forefront of
Riyadhs industrial diversification strategy.
Thishas involved executing schemes that
other NOCs would have deemed not
economically viable.
However, Aramco has benefited from a huge
surge in oil revenues brought on by sharp falls in
oil production output in countries such as Iran
and Libya, meaning it has been able to initiate
unorthodox schemes. A good example of this is
the companys continued commitment to the
remote Jizan region on the kingdoms Red Sea
coast, where Aramco is constructing a $7bn
refinery project as well as a $5bn gasification
power plant, the largest of its type inthe world.
The vast majority of the UAEs investments
have been made by the Abu Dhabi National Oil
Company (Adnoc). Adnoc follows a more
conventional line than Aramco and is not obliged
or expected to initiate any project unless it feels
it will provide a tangible economic benefit.
Abu Dhabi produces significantly less
hydrocarbons than Saudi Arabia, but Adnoc still
invested $53.5bn in the hydrocarbons sector
between 2008-12. It is forecast to spend a
further $15bn in 2013.
photograph: shutterstock
Over the past five years, the Middle

East and North Africa (Mena) region
has seen an unprecedented surge
inproject activity in the energy sector, with
more than $234bn-worth of engineering,
procurement and construction (EPC) contracts
awarded on oil, gas and petrochemicals
schemes since 2008.
Currently, an estimated $270bn-worth of oil,
gas and petrochemicals projects are under way,
about 27 per cent of all projects in the region.
And the pipeline of future work is strong. There
are about $963bn-worth ofEPC projects
currently planned or under execution in Mena oil
and gas and related industries, approximately
one third of the value of all projects planned
orunder way.
The focus of the activity has been in the GCC,
which alone has signed EPC contract awards
worth about $35bn a year since 2006, although
there have been sharp fluctuations with a
historical low of $11.7bn recorded in 2008 and
a high of $52bn in 2009.
Last year, 2012, saw a decline to about
$25bn-worth of EPC contract awards in the GCC.
But 2013 has seen a robust recovery with EPC
awards picking up strongly, led by projects in the
UAE and Saudi Arabia.
Diversification and job creation

driving boom in project activity
www.meed.com
29/09/2013 18:15
Most of Abu Dhabis investments have been

spent on increasing gas production, which will,
in turn, be injected back into oil fields as well as
processed to provide feedstock for power plants
and industrial use. The emirate also plans to
increase oil production from 2.7 million barrels
a day (b/d) to 3.5 million b/d by 2020.
Algeria is the most active state in North
Africa, spending more than $28bn on its oil, gas
and petrochemicals sectors since 2008. While
still a significant investment programme, it is far
less than the $60bn heavily quoted in the media
in 2009.
The main challenge for the country was a highlevel corruption scandal at the state-owned oil
company Sonatrach, along with a change in
ownership rules that undermined several billion
dollars worth of potential deals.
Iraq is the fourth-biggest oil and gas investor
in the region and has spent more than $17bn on
EPC projects since 2008. This figure does not
include the tens of billions of dollars being
invested by international oil companies (IOCs) to
rehabilitate the countrys vast oil fields. Iraq has
still not fulfilled its enormous potential, but
some progress has been made interms of
infrastructure and increased oilproduction.
Baghdad is now confident that its
downstream operations can be rehabilitated
and is also trying to produce more gas in order
to provide feedstock for power and industry.
Iraq is some way behind schedule and many
EPC contractors still have serious reservations
about operating in the country, but Basra in the
south and Iraqi Kurdistan in the north offer
enormous long-term potential.
After a four-year investment drive to develop
its gas reserves, Qatar completed its massive
LNG infrastructure expansion programme in
2010 and a period of consolidation has
followed. However, it has still invested more
than $10bn in oil and gas projects since 2008.
Despite its huge oil wealth and highly
developed oil industry, Kuwaits relatively
meagre $13bn investment in oil and gas
projects since 2008 has been a
disappointment. But things could be set to
change. It now looks likely that at least $15bn
will be invested in Kuwaits refining industry over
the next two years with its long-planned clean
fuels project and fourth refinery project at
advanced stages of readiness.
Outside influences
Looking at future trends, it is likely that
therewill be another paradigm shift in the
next10 years as outside influences force a
change in commitments from the regions
major producers.
www.meed.com
04-05 Overview.indd 5
South Korean Success
Q Iraq: International oil firms are investing billions

mena oil and gas EPC awards ($m), 2008-12
Country
Petrochemicals
Algeria
3,250
Bahrain
Egypt
8,854
Iraq
200
Jordan
1,045
Kuwait
65
Lebanon
Libya
Morocco
174
Oman
635
Qatar
1,334
Saudi Arabia
27,429
Sudan
Syria
Tunisia
533
UAE
6,955
Yemen
Grand total
50,474
Gas
16,992
125
2,055
2,267
8,956
140
2,507
6,904
15,381
983
21,762
100
78,172
Oil
8,306
592
885
14,897
28
4,266
590
616
1,117
1,860
35,493
199
35,452
952
105,253
Mena=Middle East and North Africa. Source: MEED Projects
What is clear from the recent strategies

employed by the GCCs major oil and gas
producers is that they all have concerns about
unconventional oil and gas taking market share.
Qatar is also worried that its LNG market will
shrink as a result of US shale gas and new
producers pumping LNG into the Asian market.
This is causing an inward-looking trend, with
investments being sought that will further
lengthen value chains.
Saudi Arabia, Qatar, Kuwait, Oman and the
UAE are all now looking to invest heavily in
refining and petrochemicals operations. In
some nations, this is aimed squarely at job
creation, while in others it is purely for
diversifying income streams. Being able to
offer a vast array of different hydrocarbon
derivatives to a domestic and international
customer base is the next logicalstep for most
of the stable producers inthe region.
With most of the major established economies struggling in the doldrums during 2009,
the huge upsurge in spending in oil-producing
markets such as Saudi Arabia and the UAE attracted EPC contractors from across the world.
One country, however, has emerged as a clear
winner: South Korea.
The past five years has witnessed huge success for South Korean EPC contractors and
that has coincided with a new era, in which the
vast majority of risk falls squarely on the shoulders of the contractors and not the client.
The method by which the Korean firms have
won the vast majority of projects has even been
unofficially dubbed the South Korean model.
The strategy focuses on aggressive pricing, followed by pro-active project management aimed
at finishing the scheme ahead of schedule
wherever possible. The contracts are executed
on a lump-sum turnkey basis, meaning the EPC
contractor is responsible for all of the risk on
each project. The model has proved to be a success and the top five South Korean EPC contractors working in the region currently have
$43.24bn-worth of schemes under execution.
The success of the South Koreans since
2009 took many people by surprise and competitors now accept that to winwork in the regions project hotspots, theyare going to have
to emulate the SouthKorean model.
While EPC contractors from other nations
are, in 2013, enjoying some success in the
Middle East, it is solely because they have
adopted the methods favoured by their South
Korean competitors.
As recently as two years ago, many EPC

contracting executives believed that the
regioncould not sustain massive expenditure
in megaprojects and that many contractors
would look for new emerging markets due to
the smaller size of schemes aimed at
conversion industries. This is proving not to
bethe case and many EPC contractors are
nowgearing up for unprecedented spending
across the region.
However, this, in turn, could bring about its
own challenges with manpower resources
already stretched to the limit and many EPC
contractors reporting losses during 2013 due
to over-aggressive bidding on projects.
The next decade promises to be a golden
age in the Middle East hydrocarbon projects
sector. It will be interesting to see who is still
here in 2023.
Kevin Baxter
29/09/2013 18:15
Saudi Arabia
kingdom eyes
new frontiers
As the worlds biggest
producer and exporter of
crude oil, with the ability to
produce up to 12.5 million barrels
a day (b/d) of oil if required, it is no
surprise that Saudi Arabia is the
most prolific developer of oil and
gas projects in the region.
The kingdom is home to several
super-giant oil fields, offshore and
onshore, as well as the worlds
sixth-largest gas reserves. It also
has a domestic oil refining capacity
of 2.1 million b/d, with another
1.2million b/d expected by 2017.
In addition to its upstream and
downstream operations, the
kingdom is the worlds 13th-largest
exporter ofpetrochemicals.
Saudi Arabia has not only
beenthe biggest oil and gas
projects market in the Middle
East and North Africa (Mena)
region, awarding an estimated
$61bn-worth of EPC contracts
inthe period 2008-12, but it is
also the most consistent,
delivering $14bn-20bn of oil and
gas projects every year since
2006, except2008.
The kingdoms national energy
company, Saudi Aramco, is by far
the biggest sponsor of oil and gas
projects in the region, awarding
$29bn of major EPC contracts in
2006-11, as well as a further
$35bn through its downstream
joint ventures.
Giant market
Since 2008, Aramco has spent
$46bn on EPC contractors. This
figure does not include any
construction management awards,
which would push the total well
past the $50bn mark.
The past five years has witnessed
a change in strategy for Aramco, as
well as for other major players in the
kingdoms hydrocarbons industry,
06-07 Saudi Arabia.indd 6
such as Saudi Basic Industries

Corporation (Sabic). This has
resulted in several major
investments in gas projects and
huge capital expenditure in
petrochemicals schemes, as well
as significantly adding to domestic
oil refining capacity.
The paradigm shift can be
traced back to Riyadhs industrial
diversification vision, which was
initiated in order to increase job
opportunities across Saudi
Arabia. This change has ushered
in a new era of projects that have
attracted the worlds major EPC
contractors, with South Korean
firms emerging as the new
dominant force.
EPC contractors from Saudi
Arabia have enjoyed an extremely
fruitful period in Saudi Arabia over
the past five years and, despite
many industry experts predicting
the contrary, have shown
extraordinary resilience in
maintaining their initial success.
Upstream developments
The upstream sector has been
dominated by gas projects in
recent years, with both nonassociated and associated
schemes being initiated and
subsequently fast-tracked by
Aramco. The kingdom uses all of
its gas production domestically
and the resource is vital for
drivingthe local economy.
Saudi Arabias first nonassociated gas development was
the offshore Karan oil field, which
was awarded in early 2009 and cost
about $4bn to execute. Karan
provides Saudi with 1.5 billion
standard cubic feet a day (scf/d) of
gas. The scheme is now complete
and production is being ramped up.
Karan was followed in 2011
bythe $5bn-plus Wasit Gas
Saudi Arabia is set to remain the

major player in project spending
Development project. The scheme
involved the development of the
offshore non-associated Arabiyah
and Hasbah gas fields, with
processing facilities being
constructed at Wasit. Despite
delays of up to 12months due to
the high sulphur content of the
gas, the project will deliver a
massive 2.5 billion scf/d when
fully operational.
Around the same time as Wasit,
Aramco awarded a $3bn natural gas
liquids (NGL) project at its Shaybah
oil field in the Empty Quarter. The
Shaybah NGL project will separate
about 228,000 b/d of NGL from
crude oil produced at the field.
Although gas is the priority, there
has been one major oil field
Saudi Arabia
development over the past five

years. The $9bn Manifa offshore oil
field project has started
commissioning and is expected to
bring 900,000 b/d of heavy crude
oil onstream by 2015. It will also
add 120 million scf/d of gas.
The Manifa field development
was initiated with two criteria in
mind: to ease the burden on the
countrys mature operational fields
and to supply heavy crude to
newrefining capacity planned
forthe kingdom.
Much of Manifas production will
be processed at the $9.6bn Saudi
Aramco Total Refining and
Petrochemicals Company (Satorp)
refinery, which is undergoing
commissioning at Jubail in the
Saudi epc awards, 2008-15
($m)
25000
25,000
Iraq
20000
20,000
Kuwait
Iran
Saudi
Arabia
15000
15,000
10000
10,000
UAE
5000
5,000
00
Yemen
Oman
f
f
f
08 009 010 011 012 013 014 015
2
2
2
2
2
2
2
20
Chemicals
Gas
Oil
f=Forecast. Source: MEED Projects
saudi arabias Top 5 planned EPC projects

Budget Main contract
($m)
award due
1,500
End 2013
Project
Waad al-Shamal Phosphate City:
SAP/power plant/power distribution
Owner
Maaden/
Mosaic/Sabic
Ras Tanura refinery upgrade: offsites

and utilities
Saudi Aramco
800
End 2013
Waad al-Shamal Mining City:

Package 2: DAP/NPK/BOP
Maaden/
Mosaic/Sabic
750
Early 2014
Waad al-Shamal Mining City:

benefication/mine infrastructure
Maaden/
Mosaic/Sabic
750
Early 2014
Shedgum-to-Yanbu pipeline extension
Saudi Aramco
600
End 2014
Source: MEED Projects
www.meed.com
29/09/2013 18:26
Go to:
www.meed.com/energy
For more information and

data on Saudi Arabia, go to:
www.meed.com/saudiarabia
Go to:
www.meed.com/energy
PHOTOGRAPH: FRANCO PAGETTI/VII
Eastern Province. The facility is

designed to process 400,000 b/d
of heavy oil, reflecting future crude
grades that will be produced
in the kingdom.
The Yanbu Aramco Sinopec
Refining Company (Yasref) is
developing a near-identical project
to Satorp on the Red Sea coast,
which will bring 400,000 b/d of
additional refining capacity
onstream by 2015.
Highlighting Aramcos
commitment to more remote
regions is the $7bn Jizan refinery,
being built in the southwest of the
kingdom. Under execution and
expected to be fully operational by
2017, the 400,000-b/d complex
will be the main driver of the local
economy when completed.
The new refining capacity
will provide essential products
such as gasoline and diesel
locally, and will also give
Saudi Arabia an alternative
source of petrochemicals
feedstock to gas.
Petrochemicals
The kingdoms petrochemicals
industry has had a mixed five
years. Some of the most
ambitious chemicals projects
currently under execution
anywhere in the world are being
built in Saudi Arabia, yet, at the
same time, many producers have
complained that a lack of
feedstock has severely hindered
potential expansion.
The $20bn Sadara
Chemical Company project
under construction at Jubail is
the worlds largest single-phase
petrochemicals complex. The
scheme, a 50:50 joint venture
with the US Dow Chemical, will
produce about 8 million t/y of
chemicals when completed
and forms the bedrock of
Aramcos initial foray into the
petrochemicals industry.
On the other coast, Aramcos
$5bn PetroRabigh phase 2 joint
venture with Japans Sumitomo
Chemical is on a far smaller scale
to Sadara, but will still produce
about 3 million t/y of products.
www.meed.com
06-07 Saudi Arabia.indd 7
SAUDI CONTRACT AWARDS, 2008-14

(PERCENTAGE OF $70.13bn*)
Gas
18
39
43
Chemicals
Q Jubail: A petrochemicals hub

OIL PRODUCTION AND CONSUMPTION
(THOUSAND BARRELS A DAY)
GAS PRODUCTION*
(BILLION CUBIC METRES)
12,000
12000
120
120
10,000
10000
100
100
8,000
8000
Oil
*=Forecast. Source: MEED Projects
80
80
6000
6,000
60
60
4000
4,000
40
40
2000
2,000
00
90 92 94 96 98 00 02 04 06 08 10 12
19 19 19 19 19 20 20 20 20 20 20 20
Oil production
Oil consumption
Source: BP
Sabic is also executing its

ambitious $3.4bn elastomers
project in Jubail with the US
ExxonMobil. The product slate for
the scheme is expected to directly
feed fledgling industries, such as
automotive and electronics, when
completed in 2016.
Looking ahead, in the short to
mid-term, Saudi Arabia has offered
no indication that the massive
spending across the whole
hydrocarbons value chain is going
to stop, although MEED Projects
data suggests that the next two
years will be a relatively quiet time
for the kingdom.
According to MEED Projects,
there are more than $18.4bn-worth
of schemes at the advanced study,
design or main EPC contract tender
phase. This figure is lower than in
past years, and no large-scale gas
fields, oil refineries or greenfield
petrochemicals plants are planned
between now and 2015.
The majority of the projects
are medium sized by todays
standards, and most are
concentrated on petrochemicals
and oil field rehabilitation.
20
20
90 92 94 96 98 00 02 04 06 08 10 12
19 19 19 19 19 20 20 20 20 20 20 20
Gas production
*=All gas consumed domestically. Source: BP
Among the larger schemes

is the Ras Tanura refinery
rehabilitation in the Eastern
Province, which has a budget of
about $3.5bn and will include
petrochemicals production as well
as cleaner gasoline and diesel
from the kingdoms largest
oil refinery.
Satorp plans
Phase 2 of the Satorp refinery
is also expected to be approved
very shortly and should focus
on petrochemicals production,
with feedstock provided by the
adjacent refinery.
The plans for Satorp closely
mirror the long-term aspirations for
Saudi Arabias refining and
petrochemicals sectors.
MEED reported in August
that the next phase of expansion
would be focused on integrating
the kingdoms existing and
future refineries with large
petrochemicals complexes.
Three potential sites have been
identified at Jizan, Yanbu and Ras
Tanura. The potential scale of
these future operations is
enormous, with speculation

growing that $50bn could be
Go to:
spent in Yanbu
alone and
www.meed.com/energy
another $10bn in both Jizan
and Ras Tanura.
All of these
Goplans
to: are in their
infancy and,www.meed.com/energy
as with all long-term
projects, the scope could change
dramatically in the future. The
scale of theGo
potential
project
to:
www.meed.com/energy
activity in Yanbu
also offers a
tantalising hint at what could be
the next great frontier for the
regions oil Go
andto:
gas production.
www.meed.com/energy
The Red Sea
is currently
undergoing extensive seismic
surveys, the results of which have
to: public.
not yet beenGomade
www.meed.com/energy
However, some
experts believe
that if there are significant
hydrocarbons contained under
the Red Sea then Riyadh would
prefer to use them to create
jobs and domestic wealth
opportunities rather than offer
them up as exports.
Aramco has no plans to
drastically increase oil production
capacity above 12.5 million b/d,
but intends to add 500,000 b/d of
new capacity to ease the burden
on existing mature fields.
The oil major is also carrying out
extensive tests on its shale gas
deposits in the north of the
kingdom, near the Jordanian
border. No results have been
released into the public domain as
yet, but Aramco has made clear
that if viable recoverable reserves
are made available then it will fasttrack development in order to
access the gas.
Saudi Arabia has spent the past
five year years investing massively
in its domestic operations and, as
a result, EPC contractors have
enjoyed a boom that has been
absent elsewhere in the world.
The kingdom is expected to
remain a major player in project
spending in the short-to-mid term.
However, if Riyadh decides to go
ahead with its refinery integrations,
and discovers huge reserves of
hydrocarbons in the Red Sea, then
future spending could dwarf the
sums currently being invested.
Kevin Baxter
29/09/2013 18:14
Iraq
Gulf giant
emerges slowly
With more than
$300bn-worth of
engineering, procurement
and construction (EPC) contracts
scheduled to be awarded, Iraq is
set to become the focus of the
global hydrocarbons projects
market in the coming decade. Few
other countries can hope to offer
suchabundant opportunities for
EPC contractors.
After years of isolation and
conflict, Iraq is now emerging as a
viable market for international
companies. While the initial
excitement surrounding the
countrys vast hydrocarbon
resources has been tempered by
ongoing concerns over security
and politics, Iraq is attracting the
attention of investors in theregion.
Baghdad is planning an
unprecedented expansion of its oil
and gas production, lifting output
to more than 12 million barrels a
day (b/d) of oil by 2017 from
3.2million b/d in 2012. This will
be achieved with the help of more
than a dozen international oil
companies, which have been
working in the country for more
than two years and which are
pushing ahead with the
construction of new facilities.
Over the past five years, Iraqs
EPC projects market has grown
from one of the smallest inthe
region, with less than $1.5bn-worth
of EPC contracts awarded in 2009,
to approximately $5bn in 2012.
The country could award as much
as $29bn in EPC contracts by the
end of 2013, making this the breakout year for Iraq projects. Of the
schemes currently at the design
phase, $41bn-worth are due for
main contract award in 2014 and
$12bnin 2015.
08-09 IraqNew.indd 8
So far, spending has been

focused on delivering short-term
oil production increases at the
licensed fields. Longer-term
spending on permanent
infrastructure, such as processing
facilities, has yet to get under way
in earnest.
China National Petroleum
Corporation (CNPC) has been
Iraqs largest EPC contract issuer
over the past five years, awarding
some $3.5bn-worth of EPC
contracts for the development of
the Al-Ahdab oil field. Along with
Petrochina and China National
Offshore Oil Company, Chinese
firms will beamong Iraqs biggest
futureclients.
CNPC is followed by Italys Eni,
which is developing the Zubair field
in the south of Iraq and which has
awarded deals worth $1.9bn.
These include a major contract in
2012, worth $843m, awarded to
US oil field services firm
Weatherford for the construction
of six trains of early production
facilities, with a capacity of
300,000 b/d.
State-owned South Oil Company
(SOC) is the largest subsidiary of
the Oil Ministry, and oversees
production at most of Iraqs largest
oil fields. It has awarded more than
$1.7bn-worth of contracts over the
past few years for the expansion of
the countrys southern oil export
facilities. This includes a new
subsea pipeline and several singlepoint mooring stations to allow Iraq
to ramp up its exports; they will be
completed by 2015.
Russian oil firms have been
among the most active in Iraq.
Lukoil and Gazprom have awarded
about $1.5bn in contracts
between them. South Koreas
Samsung Engineering, which is
Iraqs largest EPC contractor by
Iraq offers enormous potential,

along with significant challenges
iraq
iraq epc awards, 2008-14

($m)
Turkey
Syria
Iraq
35000
35,000
Baghdad
Iran
30000
30,000
25000
25,000
Kuwait
20000
20,000
Jordan
15000
15,000
Saudi
Arabia
10000
10,000
5000
5,000
00
08
20
09
20
Chemicals
10
20
11 012 013f 014f

20
2
2
2
Gas
Oil
Top-spending EPC clients in Iraq, 2008-13

Total contracts
awarded ($m)
3,500
1,904
1,789
1,659
1,408
Client
China National Petroleum Corporation
Eni/Oxy/Kogas/Missan Oil Company JV
Iraq South Oil Company
Gazprom/Kogas/Petronas/Turkiye Petrolleri/OEC JV
Lukoil/South Oil Company JV
PetroChina/South Oil Company/Petronas/Total JV
Korea Gas Corporation (Kogas)
South Refineries Company
Shell/Petronas/Missan Oil Company JV
Petronas/Japex/South Oil Company JV
CNOOC/Iraq Drilling Company/Turkiye Petrolleri JV
Iraq State Company for Oil Projects
State Company Of Fertilisers
Iraq Oil Pipelines Company
Iraq Industry and Minerals Ministry
786
750
600
496
350
350
349
150
128
50
JV=Joint venture; OEC=Oil Exploration Company; CNOOC=China National Offshore Oil Corporation.
IRAQs Top 5 planned oil and gas Projects

Project
Nasiriyah integrated oil field
and refinery development
Owner
Oil Ministry

($m)
award due
12,000
Early 2014
Iraq-Jordan crude oil export

pipeline
Oil Ministry
11,250
Early 2014
Rumaila oil field central

processing facility
BP/China National
Petroleum Corporation/
South Oil Company
Iraq State Company for Oil
Projects
Eni/Occidental Petroleum/
Korea Gas Corporation/
Missan Oil Company
10,000
End 2014
7,800
End 2013
2,700
October 2013
Karbala refinery
Zubair field development:
degassing stations
www.meed.com
29/09/2013 18:14
Go to:
www.meed.com/energy

data on Iraq, go to:
www.meed.com/iraq
Go to:
www.meed.com/energy
PHOTOGRAPH: SHUTTERSTOCK
award value, has secured

contracts with both firms. It is
currently building a central
processing facility (CPF) for Lukoil
at the West Qurna-2 oil field, due
to be completed by the middle of
2014, and a second phase of
CPFs at Gazproms Badra field by
the end of 2015.
Downstream developments
South Korean firms are well
placed to continue their strong
showing in Iraqs EPC projects
sector. Daewoo Industrial was
awarded a $709m contract in
August for new processing
facilities at the Akkas natural gas
field in the western Anbar
province. The firm is also one of
three South Korean firms leading
the bids for a major oil scheme for
Eni at the Zubair field, worth
almost $3bn. Hyundai
Engineering & Construction
and Samsung are the other
leading bidders.
In desperate need of a major
overhaul after years of under
investment, Iraqs downstream oil
and gas sector is offering a
$50bn-plus opportunity for
investment in several new
refineries. Despite having huge
reserves of oil, Iraq is still reliant
on imports to meet growing
domestic demand for refined
products such as gasoline. To
address this problem, the Oil
Ministry is planning to build more
than five new refineries across the
country, along with new units at its
existing facilities.
Compared with the upstream
market, progress in the
downstream sector has been slow.
Front-end engineering and design
(feed) contracts were awarded in
2009 for the refineries, but so far
the government has failed to
attract international investors.
Only one tender has been released
to date, for the construction of a
140,000-b/d refinery in the
southern Karbala province. EPC
bids for the estimated $5bn facility
are due by the end of September.
Along with Karbala, the Oil
Ministry will hold a bid round for
www.meed.com
08-09 IraqNew.indd 9
IRAQ CONTRACT AWARDS, 2008-14

Gas
Chemicals 0
13
87
Oil
Q Ambitious: Capacity goals are high

OIL PRODUCTION
GAS PRODUCTION
3500
3,500
4.0
4.0
3000
3,000
3.5
3.5
2500
2,500
3.0
3.0
2000
2,000
2.5
2.5
1,500
1500
2.0
2.0
1,000
1000
1.5
1.5
500
500
1.0
1.0
00
90 92 94 96 98 00 02 04 06 08 10 12
19 19 19 19 19 20 20 20 20 20 20 20
0.5
0.5
90 92 94 96 98 00 02 04 06 08 10 12
19 19 19 19 19 20 20 20 20 20 20 20
Oil production
Source: BP
the integrated development of

the Nasiriyah oil field and a
300,000-b/d refinery, costing as
much as $15bn. The auction is set
to be held in December, with more
than a dozen oil firms and refinery
operators prequalified to bid.
More than $30bn will be needed
to develop Iraqs aged oil transport
and storage infrastructure, which
will struggle to keep up with
increases in oil production.
Without this, Iraq will simply be
adding idle capacity. While many
of these problems are not
particularly technically complex,
they place a huge burden on the
Oil Ministrys limited projecthandling capacity.
In the gas sector, UK/Dutch
Shell Group will be one of the
biggest future clients. The energy
major signed a controversial
agreement in 2008 with the Oil
Ministry to capture and utilise
associated gas from several of
Iraqs southern oil fields that
would normally be flared. After
lengthy delays, the Basra Gas
Company (BGC) was finally
incorporated earlier this year.
Gas production
Source: BP
As well as rehabilitating Iraqs

existing gas processing facilities,
BGC will build a number of new
plants in the coming years,
including facilities for the export
of liquefied natural gas.
Petrochemicals
The Oil Ministry and the Industry
& Minerals Ministry have held
talks with several integrated
energy and petrochemical firms,
including the US ExxonMobil
and Chevron, to discuss new
investments in the years following
the US-led invasion. Currently
still in the feasibility study
phases, these projects are
unlikely to proceed until Iraq
makes further progress on gas
and refining developments.
Despite improved conditions,
the Iraqi market comes with
considerable challenges. Political
instability and an increasingly
tense security situation are the
most apparent of the obstacles
ahead for the projects market and
there are a number of important
questions over the countrys ability
to deliver on its potential.
More than $30bn

to:
will be Go
needed
to
www.meed.com/energy
develop Iraqs
aged oilGo
transport
to:
www.meed.com/energy
and storage
infrastructure
Go to:
www.meed.com/energy
One critical factor for the

upstream sector
Iraqs own
Go is
to:
commitment towww.meed.com/energy
the ambitious
12 million-b/d production target,
which means the country would
Go to:
rival Saudi Arabia
by 2017. Such a
huge increasewww.meed.com/energy
in oil output over
such a short time period is
unprecedented and Iraq is unlikely
to be able to reach this level within
the timeframe set. The Oil Ministry
is in the midst of negotiations with
several of its international oil
company partners to quietly reduce
the scale of its ambitions at some
of the fields.
For now, the government
plans to increase production
capacity to 4.5 million b/d by the
end of 2014, before making a
decision on its longer-term
capacity goals. It is expected to
choose between the more
realistic figures of 6 million b/d by
2020 or 9 million b/d by 2025.
Whichever target the Oil
Ministry pursues, the challenges
remain considerable. Maintaining
9 million b/d will require
approximately $600bn in capital
expenditure up to 2030, with the
Iraq government bearing the
majority of the costs. This is
in addition to the logistical
challenges of sourcing and
deploying hundreds of drilling
rigs and thousands of trained
staff to man the new facilities.
Despite the many challenges,
however, for EPC projects in the
region, the decade ahead will be
all about Iraq. The question is
whether contractors and investors
can balance the enormous
potential with the huge risks
of working in Iraq.
Adal Mirza
29/09/2013 18:14
UAE
Offshore spending
drives uae market
In terms of the value of
engineering, procurement
and construction (EPC)
contract awards, 2013 is set to
mark a four-year high for the UAEs
oil and gas sector, with spending
revived by a spree of offshore
investments backed by Abu Dhabi
National Oil Company (Adnoc).
Oil, gas and petrochemicals
project sponsors in the country
areexpected to award about
$15.1bn-worth of EPC deals in
2013, a 268 per cent year-on-year
increase on the $4.1bn-worth
ofEPC contracts awarded in
2012and the $3.7bn spent the
year before.
The UAEs biggest offshore
operators, Abu Dhabi Marine
Operating Company (Adma-Opco)
and Zakum Development
Company (Zadco) both of which
are pushing ahead with greenfield
oil developments to boost Abu
Dhabis crude output have
dominated the spending in 2013.
Adma-Opco awarded
$4.9bn-worth of deals in 2013
ontwo oil field developments:
Satah al-Razboot (Sarb) and Umm
al-Lulu. South Koreas Hyundai
Engineering & Construction, the
local National Petroleum
Construction Company, Frances
Technip and the UKs Petrofac all
picked up work on the four
packages awarded.
Sarb and Umm al-Lulu are key
developments in Adma-Opcos
plans to increase its total crude
production to 1 million barrels a
day (b/d) by 2020, up from the
current capacity of 600,000 b/d.
The fields are expected to add
about 100,000 b/d each after the
full-field developments are
commissioned later this decade.
10-11 UAE.indd 10
A third full-field development, on

the Nasr field, was tendered at the
beginning of September, with
Adma-Opco inviting prequalified
companies to submit technical
proposals in December.
Zadcos expansion plans are
focused on the Upper Zakum field,
which, when combined with the
Lower Zakum section controlled
by Adma-Opco makes up the
worlds fourth-largest known
oilfield.
Zadco awarded a $3.8bn EPC
contract to a joint venture of
Petrofac and South Koreas
Daewoo Shipbuilding and Marine
Engineering (DSME) at the start of
2013. This is the largest single
EPC package under execution in
the Middle East and North Africa
(Mena) oil and gas sector.
The package is part of early
production facilities on the Upper
Zakum field, which precede a fullfield development expected to be
awarded in the coming years.
Developments planned on Upper
Zakum will increase the oil fields
production capacity from the
current 500,000 b/d.
Offshore awards are also
expected this year in the smaller
UAE emirates of Dubai, Ajman
andSharjah. Dubai Petroleum
Establishment is preparing to
select a contractor for a deal
involving pipelines and platforms
on the emirates Al-Jalila offshore
oil field.
Meanwhile, Sharjahs Dana Gas
is preparing to award three smaller
contracts on the development of
the Zora offshore gas field, the
ownership of which is split
between the emirate and Ajman.
While Abu Dhabi is investing
heavily in expanding its crude
production, the UAE is reportedly
falling behind on its capacity
An increase in EPC contract awards in

2013 is expected to continue in 2014
targets. The country has pushed

its target date for producing
3.5million b/d of oil from 2017 to
2020, due to delays in exploration
and production awards. Media
reports in July, citing sources
familiar withthe matter, said
delays on awarding the Upper
Zakum development deals
contributed to the setback.
Continued growth
The strong stream of EPC awards
is expected to continue in 2014 in
the UAE oil and gas sector. The
countrys energy projects market
has recovered from the lows of the
past two years, with several large
schemes in the pipeline for
contractors to target.
UAE
2013 is forecast to be the

highest-spending year for the UAE
since 2009, when the value of
contract awards reached close to
$30bn. Several major projects
gotunder way in Abu Dhabi in
2009, including the Ruwais
refinery expansion and the
integrated gasdevelopment.
Thiswas followed in2010 by
theBorouge 3 petrochemicals
upgrade and the $11bn Shah sour
gas development.
In addition to the Nasr full-field
development, several $1bn-plus
deals are set to reach the EPC
stage in 2013 and 2014. Abu
Dhabi Company for Onshore Oil
Operations (Adco), which holds the
concession on all of the emirates
UAE EPC awards, 2008-14
($m)
20000
20,000
Kuwait
Iran
15000
15,000
10000
10,000
Saudi
Arabia
UAE
5000
5,000
00
Oman
08
20
09
20
Chemicals
10 011 012 013f 014f

2
20
2
2
2
Gas
Oil
f= Forecast. Source: MEED Projects
UAEs Top 5 planned oil and gas projects

($m)
award due
3,500
2014
(total)
Project
Fujairah oil refinery:
phase 1 (various packages)
Owner
International Petroleum
Investment Company (Ipic)
Nasr full-field development:

package 2 (platforms and
wellheads)
Abu Dhabi Marine

Operating Company
(Adma-Opco)
Abu Dhabi Company for
Onshore Operations (Adco)
1,500
2014
1,300
2014
North East Bab, Rumaitha

and Shanayel: phase 3
Adco
1,000
End 2013
Umm al-Dalkh full-field

development
Zakum Development
Company (Zadco)
600
Early 2014
North East Bab, Al-Dabbiya:

phase 3
Sources: MEED Projects; MEED
www.meed.com
29/09/2013 18:13
Go to:
www.meed.com/energy

data on the UAE, go to:
www.meed.com/uae
Go to:
www.meed.com/energy
UAE CONTRACT AWARDS, 2008-14
active oil fields, has tendered a

large package on its North East
Bab phase 3 scheme to develop
the capacities of the Rumaitha
and Shanayel fields. The contract
is expected to be awarded by the
end of the year, followed by a deal
involving the Al-Dabbiya field.
A large spate of contracts
looms on the horizon in Abu
Dhabis gas industry this year,
with Adnoc choosing the UK/
Dutch oil major Shell Group in
April to develop its Bab sour
gas project. The megaproject
should be on a similar scale to
the under-development $11bn
Shah sour gas scheme, with
several high-value packages
planned to be tendered.
However, since Shells
appointment, there has been a
complete lack of progress on Bab,
according to market sources, with
no timeline announced for the
projects design phase, while the
Adnoc/Shell joint venture has not
been officially established.
In the UAEs downstream sector,
there is much anticipation
regarding the planned second
refinery in Fujairah on the countrys
east coast. The schemes frontend engineering and design (feed)
has been completed by Technip
and the project owner, Abu
Dhabis International Petroleum
Investment Company (Ipic), is
expected to tender the EPC
packages by the end of the year.
The planned 200,000-b/d refinery
is expected to be split into several
large packages, with the total
budget at more than $3bn.
Fujairahs oil storage capacity is
set to rocket, with more awards
expected on terminal schemes
after a strong run of spending in
2012 and 2013. Awards are
planned on oil storage expansion
projects owned by Azerbaijan/
Swiss joint venture Socar Aurora
and the Dutch/local joint venture
Vopak Horizon. The northern
emirate will also house the local
Emirates LNGs major liquefied
www.meed.com
10-11 UAE.indd 11
Chemicals
10
31
% 59
Gas
Q Deals: Offshore awards are expected

OIL PRODUCTION AND CONSUMPTION
(THOUSAND BARRELS A DAY)*
3,500
3500
3,000
3000
2,500
2500
2,000
2000
1500
1,500
1000
1,000
500
500
0
90 92 94 96 98 00 02 04 06 08 10 12
19 19 19 19 19 20 20 20 20 20 20 20
Oil production
Oil consumption
*=Includes condensate and natural gas liquids.
Source: BP
natural gas (LNG) import facility,

with South Koreas Samsung
Engineering selected for EPC work
on the first phase earlier this year.
In the petrochemicals sector,
awards have been non-existent
since the last packages on Abu
Dhabi Polymers Companys
(Borouges) Borouge 3 expansion
in Ruwais were signed off in the
first half of 2011. The limited
supply of gas in the UAE has
created doubts over the ethanefuelled chemicals industrys ability
to expand further, with proposed
plans on a Borouge 4 scheme
not forthcoming.
Amid this backdrop, contractors
eyeing the local petrochemicals
sector will be relieved to see the
long-delayed Tacaamol liquidsbased project in Ruwais making
progress. Project owner Abu
Dhabi National Chemicals
Company (Chemaweyaat)
awarded the feed contract on
the schemes aromatics plant to
the US CH2M Hill in September,
as reported by MEED. With the
firm now working on the project
and US-based Foster Wheeler
Oil
GAS PRODUCTION AND CONSUMPTION

80
80
70
70
60
60
50
50
40
40
30
30
20
20
10
10
90 92 94 96 98 00 02 04 06 08 10 12
19 19 19 19 19 20 20 20 20 20 20 20
Gas production
Gas consumption
Source: BP
appointed as the facilitys project

management consultant, the first
phase of Tacaamol now has a
timeline of progression and the
EPC phase could be tendered
in 2014.
The UAEs gas output declined
by 1.5 per cent in 2012 to
51.7 billion cubic metres (bcm)
a year, while consumption
increased by 0.4 per cent to
62.9 bcm a year. The gas
shortage has shaped much of the
countrys industrial strategy since
demand overtook supply in 2007.
Increasing gas
Schemes such as the Shah and
Bab gas developments, the
Dolphin Energy pipeline importing
gas from Qatar, the Dubai LNG
imports infrastructure and
planned LNG imports in Fujairah
have all been undertaken to
increase gas supplies for the
UAEs growing population and
industrial footprint.
Chemaweyaats project will use
naphtha from the Ruwais refinery
as feedstock rather than ethane
gas utilised by Borouge, enabling
2013 is forecast
Go to:
to become
the
www.meed.com/energy
highest-spending
year forGothe
to: UAE
www.meed.com/energy
oil and gas sector
since 2009
Go to:
www.meed.com/energy
Abu Dhabi to boost its chemicals

output withoutGo
further
to: straining
gas supplies. www.meed.com/energy
The constraints have also
pushed the UAE to review its
Go to:gas as LNG.
policy of exporting
www.meed.com/energy
Through Abu Dhabi
Gas
Liquefaction Company (Adgas),
the country currently sells LNG
to Japan under a 25-year
contract that is set to expire in
2019, even though it faces a
growing challenge to meet
domestic demand.
We are exporting to Japan,
[but] we are reviewing this policy to
see what is best for the country in
view of other elements, said
Abdulla al-Minhali, a manager at
Adnoc Gas Directorate, in January.
We will explore all the
opportunities available.
In the UAEs oil industry, the
most significant development
next year will be the renewal of
Abu Dhabis onshore concession,
which is currently operated by
Adco. The onshore fields account
for more than half of the emirates
crude production capacity of
about 2.6 million b/d. Up to
10 international oil companies
have been prequalified to bid for a
stake in a new joint venture, which
is due to be formed in January
next year.
This joint venture will face
the challenge of boosting
hydrocarbons production from
Abu Dhabis maturing onshore
fields using enhanced oil recovery
techniques, making it essential
for the UAE capital to select
capable partners to manage key
oil assets over the next two
decades and beyond.
Mark Watts
29/09/2013 18:13
Go to:
www.meed.com/energy

data on Qatar, go to:
Qatar
www.meed.com/qatar
Go to:
www.meed.com/energy
DOHA FOCUSES ON
PETROCHEMICALS
In terms of its oil and gas
statistics, Qatar is a nation
of extremes. Despite
being confined to a small outcrop
of the Arabian Peninsula, Qatar is
the worlds largest exporter of
liquefied natural gas (LNG). It is
also home to the worlds thirdlargest gas reserves.
Engineering, procurement and
construction (EPC) prospects in
the Gulf states oil and gas sector
have slowed down considerably
since the peaks of 2008, however.
Doha has invested heavily to
establish a world-class LNG export
capacity, which now totals
77 million tonnes a year (t/y). But
the vast majority of EPC contracting
work was completed by 2010.
Quiet period
This has meant that over the past
five years, the Qatar market has
been extremely quiet for EPC
contractors as the countrys LNG
industry shifted its focus from
installing export facilities to
operating them, following the
multibillion-dollar expansion.
Middle East projects tracker
MEED Projects states that, since
2008, more than $9.5bn-worth of
EPC contracts have been awarded
in Qatar, a very low figure in
relation to the size of the countrys
oil and gas industry. The majority
of this was awarded to just four
EPC contractors for two separate
projects: the $3bn Barzan gas
field development and the
$1.5bn Ras Laffan condensate
refinery expansion.
Although these two schemes
are in different sectors of Qatars
hydrocarbons industry, they are
connected. Both projects are
being initiated in order to drive
domestic expansion in
petrochemicals production, which,
12 Qatar.indd 12
in turn, is a way to reduce Dohas

reliance on LNG exports.
The offshore Barzan gas field will
add 1.4 billion cubic feet a day of
gas to Qatars domestic grid when
it is completed in 2015. South
Koreas Hyundai Heavy Industries
is carrying out the EPC work for the
offshore segment and Japans JGC
Corporation is responsible for the
EPC of the onshore facilities.
The Ras Laffan expansion was
awarded earlier in 2013 to a
consortium of Japans Chiyoda
Corporation and Taiwans CTCI
Corporation. The scope involves
the construction of facilities to
process a further 146,000 barrels
a day of condensate.
Petrochemicals
The major benefactor of both of
these schemes will be Qatars
petrochemicals industry, and it is
this sector that offers the most
opportunities to international
EPC contractors.
According to MEED Projects,
EPC contracts worth a total of
$14.63bn are in the design and
tender phases in Qatar. The
majority of this figure is accounted
for by two massive schemes, worth
a combined $14bn, that are being
planned for the Ras Laffan
industrial city in northern Qatar.
Qatar Petroleum (QP) is the lead
client behind both schemes, but
has also taken on a joint venture
partner for each project.
The Al-Karaana Petrochemicals
Complex is a $6.4bn joint venture
between QP and the UK/Dutch
Shell. The scope includes the
construction of a mixed-feed
cracker that will use ethane and
propane. This will feed three
process plants: a linear alpha
olefins unit, a monoethylene glycol
unit and an oxo-alcohols unit.
Go to:
www.meed.com/energy
Opportunities remain firmly in the

Go to:
www.meed.com/energy
downstream and chemicals
sectors
MEED reported in August that
the scheme has been split into
two separate EPC packages,
covering the cracker and the
technical units. Tenders will be
released in early 2014.
The second scheme is similar in
scope and is running about
12 months behind Al-Karaana. The
$7.4bn Al-Sejeel petrochemicals
complex is a joint venture
between QP and the local Qatar
Petrochemicals Company (Qapco)
and will produce 1.4 million t/y of
ethylene. This will feed technical
units comprising high-density
polyethylene, linear low-density
polyethylene, polypropylene
and butadiene.
The front-end engineering and
design tender was released in
September and the EPC phase is
expected towards the end of 2014.
QATAR
In the long term,

Qatars focus
Go to:
www.meed.com/energy
on downstream
petrochemicals
projects looks set to continue,
with Doha committed to raising
capacity to 23Go
million
to: t/y by 2020.
This suggestswww.meed.com/energy
that more worldscale schemes are planned
and that the hydrocarbons
Gobe
to:dominated
EPC market will
www.meed.com/energy
by petrochemicals.
Qatar is the only country in the
region that has the political stability
along with the availability of cheap
gas feedstock to allow a massive
hike in ethylene production.
With no end in sight for the
moratorium on upstream
development of the North Field, the
worlds largest non-associated gas
field, prospects for EPC contractors
remain firmly in the downstream
and chemicals sectors.
Kevin Baxter
QATAR EPC AWARDS, 2009-15
($m)
12000
10,000
Iraq
10000
8,000
Kuwait
Iran
Saudi
Arabia
8000
6,000
6000
Qatar
4,000
4000
UAE
2,000
2000
00
09
20
10
20
Chemicals
11 012 013f 014f 015f

20
2
2
2
2
Gas
Oil
QATARS TOP 5 PLANNED OIL AND GAS PROJECTS

Project
Owner
Al-Sejeel petrochemicals complex: Qatar Petroleum (QP)
aromatics project
Al-Karaana petrochemical package QP/Shell
2: MEG, olefins, alcohol units
Idd el-Shargi north dome
Occidental Petroleum
expansion: phase 5
Corporation (Oxy)
Gas-to-liquids plant: phase 2
Oryx GTL
Ras Laffan glycol regeneration
project
RasGas Company

($m)
award due
7,400
2015
6,400
2014
3,000
2014
1,500
2015
800
2015
MEG=Monoethylene glycol. Source: MEED Projects
www.meed.com
29/09/2013 18:12
Go to:
www.meed.com/energy

data on Kuwait, go to:
Go to:
www.meed.com/energy
Kuwait
www.meed.com/kuwait
Go to:
www.meed.com/energy
HOPES PINNED ON
MAJOR PROJECTS
Go to:
www.meed.com/energy
Go to:
www.meed.com/energy
Overto:
the past decade,
Go
www.meed.com/energy
major upstream oil and gas
tenders have been few and
far between in Kuwait. The most
recent came
in August 2013, when
Go to:
Kuwaits www.meed.com/energy
state-run oil field operator
Kuwait Oil Company (KOC) issued a
tender for the construction of three
Go gas
to: gathering centres in
new oil and
the northwww.meed.com/energy
of the country, a deal
worth up to $3bn. The designs were
completed in late 2011 and tenders
had been expected to be issued in
early 2012.
Looking further ahead, KOC is
planning the development of its
heavy oil resources in the north of
the country through an estimated
$6.5bn strategic investment
project. The heavy oil project is part
of Kuwaits plan to increase crude
oil production capacity to 4 million barrels a day (b/d) by 2020,
from about 3.1 million b/d in 2013.
The project is currently at the
front-end engineering and design
stage and could be launched in
early 2014.
The scheme is split into five main
packages: a steam-injection facility;
a central processing facility; a
production support complex; a tank
farm; and a 270,000-b/d pipeline,
which will transport heavy crude oil
to the planned new refinery in the
south of Kuwait. KOC expects to
increase heavy oil production
to 60,000 b/d by 2017 and
270,000 b/d by 2030.
Kuwait National Petroleum
Companys (KNPC) announced oil
and gas projects indicate that the
largest sector in future will be the
downstream oil industry. Two giant
refinery schemes are to be
launched as part of plans to
www.meed.com
13 Kuwait.indd 13
increase refining capacity to

1.4 million b/d from 956,000 b/d.
Worth a combined total of more
than $30bn, the two refineries
represent the largest projects ever
undertaken in the country, and, if
implemented concurrently, will
pose substantial logistical
challenges. However, the projects
are controversial, with many in
Kuwait opposed to their
development, and with Parliament
and government divided over the
plans, it is far from certain if or
when both schemes will go ahead.
Kuwait has been planning to
develop the two projects since the
start of the new millennium, driven
by the electricity shortages that
plague the country in summer, as
well as the decrepit state of the
Shuaiba refinery, Kuwaits primary
existing refinery. Project
management consultancy (PMC)
contracts have already been
awarded to the UKs Amec and the
US Foster Wheeler, but firms are
still awaiting news on the release of
engineering, procurement and
construction (EPC) tenders.
In April, KNPC finally issued the
long-awaited tender for the
estimated $16bn-plus EPC contract
for its Clean Fuels Project, which will
overhaul its existing refineries. It
covers the upgrade of the Mina
al-Ahmadi and Mina Abdullah
refineries, boosting their combined
capacity to 800,000 b/d from
736,000 b/d currently. The project
has been split into three packages.
Seven firms have been
prequalified to bid for the project,
with technical and commercial
proposals due to be submitted on
10 November. The scheme has
taken years to get to this point. The
Supreme Petroleum Council (SPC),
the highest decision-making body
in Kuwaits oil and gas sector, was
Kuwaits crude oil production to

hit 4 million barrels a day by 2020
expected to approve the deal in
early 2011, with tenders floated
the same year.
KNPCs other downstream project
is the construction of a 615,000b/d refinery at Al-Zour in the south
of Kuwait, which will produce lowsulphur fuel oil to replace the highsulphur fuel used in the countrys
power plants. The New Refinery
Project (NRP) has been tendered
twice before, with contracts awarded
before being cancelled by SPC.
KNPC is yet to announce the
prequalified groups that will bid for
the NRPs main packages. In May,
KNPC issued a tender for dredging
and preparatory works at the
planned site and the results are
expected before the end of 2013.
Kuwaits oil and gas EPC contract
awards averaged $2.4bn a year
between 2008 and 2012. So far in
2013, $1.4bn-worth of EPC
contracts have been signed.
Another $778m-worth of projects
are currently at the bidding stage,
KUWAIT
with awards expected to be made

before the end of the year.
Notwithstanding the potential for
politics to derail Kuwaits plans,
almost $46bn-worth of EPC
contracts are expected to be
awarded in 2014. Given the
countrys history of delays and the
limited size of its awards each year,
it is hard to see anything close to
this figure being reached. Kuwaits
oil sector underwent a major
reorganisation in May 2013, with
many senior managers, including
the oil minister and managing
director of KNPC, being removed
from their posts. It is still unclear
what impact those changes will
have on planned projects.
After awarding and cancelling the
NRP once before, Kuwait has to
rebuild its reputation for commitment
to projects. It has a chance to do
this by taking advantage of the
current lack of political opposition
in the National Assembly.
Adal Mirza
KUWAIT EPC AWARDS, 2008-14
($m)
50000
50,000
Iraq
Kuwait
40000
40,000
Iran
Saudi
Arabia
30000
30,000
20000
20,000
10000
10,000
00
08
20
09
20
Chemicals
10 011 012 013f 014f

2
20
2
2
2
Gas
Oil
TOP-SPENDING EPC CLIENTS IN KUWAIT, 2008-13

Client
Kuwait Oil Company
Kuwait National Petroleum Company
Kuwait Oil Tanker Company
EQUATE Petrochemical Company
Total contracts
awarded ($m)
9,985
2,737
190
65
29/09/2013 18:11
Go to:
www.meed.com/energy

data on Oman, go to:
Oman
www.meed.com/oman
Go to:
www.meed.com/energy
MUSCAT INVESTS
IN MEGAPROJECTS
Omans oil and gas
projects market has been
relatively quiet over the
past six years, with few major
projects being tendered. Activity
has picked up in the past two
years, however, and is set to
increase further. In 2012, energy
companies in Oman awarded an
estimated $1.3bn-worth of
engineering, procurement and
construction (EPC) contracts,
compared with $1.1bn the year
before and just $306m in 2010.
According to regional projects
tracker MEED Projects, as much as
$5.5bn-worth of oil and gas EPC
contracts could be awarded in
2013, although much of this is
likely to be delayed until next year.
The drivers of Omans increase
in oil and gas project activity are the
$15bn-20bn Khazzan tight gas
project in the central northern region
of the sultanate, increased use of
enhanced-oil-recovery techniques
in older fields, and a drive to develop
downstream refinery and
petrochemicals projects in Sohar
and Duqm.
Despite relatively small
investments in the oil sector in
recent years, Muscat has managed
to increase crude production year
on year. Petroleum Development
Oman (PDO), the countrys biggest
oil and gas producer, averaged
1.24 million barrels of oil
equivalent a day (boe/d) in 2012,
compared with the previous high of
1.21 million boe/d in 2001.
PDO increased aggregate
production for the fifth consecutive
year after recovering from a trough
of less than 1.1 million boe/d in
the middle of the last decade.
Oman is aiming to sustain oil
production in the medium term
14 Oman.indd 14
with investments of more than

$1bn each in three onshore
megaprojects being developed
by PDO: Rabab Harweel integrated
project, Yibal Khuff and Budour.
PDO is preparing to tender the
main packages on the Rabab
Harweel integrated project before
the end of the year. The firm expects
to award the off-plot contract in the
third quarter of 2014 after receiving
EPC bids. The oil field is located in
PDOs Block 6 concession in
onshore central Oman.
UK-based oil and gas group BP,
which is developing the Khazzan
tight gas project the first of its kind
in the region has asked interested
contractors to provide contact
details for the tendering process on
several major packages.
BP has yet to reach a final deal
with Muscat on the Khazzan
project. The two parties signed
a heads of agreement and
reached a deal on the price of
retail gas for the project in June,
but are yet to hammer out the
final commercial contract for the
full-field development.
The Oman Oil & Gas Ministry
expects a deal to be finalised by
the end of the year, which must
happen before any EPC contracts
can be awarded, likely pushing
contract awards on Khazzan
some way into 2014. The final
investment decision is expected
to pave the way for a 30-year
partnership on an operation
expected to produce about
1 billion cubic feet a day of sales
gas by 2017-18, boosting Omans
gas supplies by a third.
The downstream project pipeline
is also looking strong in the
sultanate, with Oman Refineries
and Petroleum Industries
Go to:
www.meed.com/energy
Schemes pushed back to 2014

Go to:
www.meed.com/energy
should make it a bumper
year
Company (Orpic) preparing to
award the Sohar refinery
expansion, and the new Duqm
refinery and petrochemicals
complex on the horizon. However,
Duqm project owners Oman Oil
Company (OOC) and Abu Dhabis
Investment Company (Ipic) have
yet to announce a front-end
engineering and design (feed)
contract for the project, which
looks likely to be delayed.
Petrochemicals
In July, Orpic announced and
tendered the feed for a new
$3.6bn steam cracker and
OMAN
petrochemicals
Goproject
to: named
www.meed.com/energy
Liwa Plastics in
Sohar. This will
give Oman the capacity to produce
polyethylene for the first time, as
well as polypropylene
Go to: and smaller
www.meed.com/energy
amounts of polyethylene
terephthalate, polyvinyl chloride
and polystyrene.
Go to:
If all of Omans
planned oil and
gas schemes www.meed.com/energy
progress as
intended, 2014 will be a bumper
year for EPC contractors in Omans
oil and gas projects market, with
over $10bn-worth of contracts.
This would make it one of the
biggest spenders in the Middle
East and North Africa region.
Mark Watts
OMAN EPC AWARDS, 2008-14
($m)
10000
10,000
8000
8,000
Kuwait
Saudi
Arabia
Iran
6000
6,000
4000
4,000
UAE
2,000
2000
00
Yemen
08
20
Oman
10 011 012 013f 014f

2
20
2
2
2
09
20
Chemicals
Gas
Oil
OMANS TOP 5 PLANNED OIL AND GAS PROJECTS

Project
Duqm oil refinery (various
packages)
Liwa steam cracker and

polyethylene plant (various
packages)
Khazzan gas development,
central processing facility
Khazzan gas development,
gas production and well site
facilities
Sohar refinery expansion
project
Budget
($m)
6,000
Main contract
award due
End 2014
3,600
Early 2015
2,000
Early 2014
BP
2,000
Early 2015
Oman Refineries &

Petroleum Industries
Company
1,500
End 2013
Owner
Development Company/
Oman Refineries &
Company
Oman Refineries &
Company
BP
EPC=Engineering, procurement and construction. Sources: MEED Projects, MEED
www.meed.com
29/09/2013 18:12
Go to:
www.meed.com/energy

data on Algeria, go to:
Go to:
www.meed.com/energy
North Africa
www.meed.com/algeria
Go to:
www.meed.com/energy
GROWTH SLOWLY
RETURNS IN REGION
Go to:
www.meed.com/energy
Algeria, Egypt and Libya offer strong

EPC opportunities, but need stability
Go to:
www.meed.com/energy
Corruption
and political
Go
to:
www.meed.com/energy
instability are restricting
the ability of North Africas
oil and gas producers to drive
forward their
energy projects.
Go to:
www.meed.com/energy
With EPC
contract awards of
more than $1bn forecast to be
awarded this year, Algerias oil and
Go to: procurement and
gas engineering,
www.meed.com/energy
construction
(EPC) market is the
biggest in North Africa.
Algeria growth
Algerias energy projects activity
peaked in 2009, when the country
signed a raft of EPC contracts and
development deals worth more
than $12.9bn. The figure fell to just
$920m in 2010 and has averaged
only $1.3bn a year over the past
three years.
In the first nine months of 2013,
Algiers has signed $1.1bn-worth of
energy sector EPC contracts and
another $1bn-worth of contracts
are at the bidding stage, and could
be awarded by the end of the year,
potentially taking the 2013 total to
$2.1bn. This is almost double the
countrys 2012 figure, but still well
below the 2009 peak.
The fall off in activity was due in
large part to investigations
launched in early 2010 into
alleged corruption in the award of
deals by Algerias main client,
state oil and gas company
Sonatrach, which accounts for
57 per cent of the $27.6bn of
contracts signed in the country
since 2008.
The investigations resulted in
the sacking of Sonatrachs
president, Mohamed Meziane, and
a number of senior executives.
The countrys oil minister also lost
his post in a cabinet reshuffle
shortly after. The Sonatrach
investigations resulted in a long
lull in the award of oil and gas
www.meed.com
15-16 North Africa.indd 15
projects, with no new major

schemes launched in 2010.
However, Algerias energy
sector is now starting to turn
around. A new management
team is now in place at Sonatrach,
and changes have been made
to the hydrocarbons law, which
the government hopes will
stimulate a revival of interest
in upstream oil and gas.
In 2011, Algeria set out
ambitious spending plans for the
sector, announcing $80bn of
investments between 2011 and
2015. Three years later, much
remains to be done. Looking
ahead to 2014, some $4.8bn of
projects are either at the design
or bidding stages, or have been
offered for prequalification.
This could mark another year of
improvement for the industry.
$4.1bn-worth of schemes are
expected to be awarded by the end
of 2015 in Algeria. The majority of
these are still in the study phase,
while only one the full-field
development of the Mouiat Oulad
Messaoud field is under bid.
The countrys second-largest
client is Algerian Omani Fertiliser
Company a joint venture between
Sonatrach and Omans Suhail
Bahwan Group. The firm awarded a
$2.4bn deal in 2008 to a joint
venture of Japans Mitsubishi
Heavy Industries and South
Koreas Daewoo Engineering &
Construction for the construction
of an ammonia fertiliser complex
in the Arzew industrial zone near
Oran, on the Mediterranean coast.
The project was completed in
March this year.
Egypt investment
While Algeria has focused on
upstream development schemes,
international EPC firms have
ALGERIA EPC AWARDS, 2008-14
EGYPT EPC AWARDS, 2008-14
($m)
($m)
8000
8,000
1000
1,000
7000
7,000
800
800
6000
6,000
5000
5,000
600
600
4000
4,000
400
400
3000
3,000
2000
2,000
200
200
1000
1,000
08
20
09
20
10
20
Chemicals
00
11 012 013f 014f

20
2
2
2
Gas
08
20
Oil
09
20
10 011 012 013f 014f

2
20
2
2
2
Chemicals
Gas
Oil
TOP-SPENDING CLIENTS IN ALGERIA, 2008-13

Client
Sonatrach
Algerian Omani Fertiliser Company
Groupement Berkine
Eni
In Salah Gas Company
GDF Suez/Sonatrach joint venture
Societe Nationale de Raffinage de Petrole
Anadarko Petroleum Corporation
Groupement Bir Seba
Societe Nationale de Raffinage de Petrole (Naftec)
Societe Nationale de l'Electricite et du Gaz (Sonelgaz)
BMS Operating Company
Total contracts
awarded ($m)
15,880
2,400
2,226
1,800
1,413
1,020
920
787
451
405
229
167
TOP-SPENDING CLIENTS IN EGYPT, 2008-13

Client
Egyptian Ethylene & Derivatives Company (Ethydco) JV
Burullus Gas Company
Total contracts
awarded ($m)
1,600
1,295
Alexandria Fertiliser Company (AlexFert)
600
Egyptian Natural Gas Holding Company (Egas)
385
Burullus Gas Company/Egyptian General Petroleum Corporation
300
Delta Company for Fertilisers and Chemical Industries
300
Vopak Horizon
250
Gulf of Suez Petroleum Company (Gupco)
234
Egyptian Natural Gas Company (Gasco)
220
Egyptian Indian Polyester Company
160
BP Global
100
Badr el-Din Petroleum Company
65
Middle East Oil Refinery (Midor)
56
JV=Joint venture. Source: MEED Projects
29/09/2013 18:10
Go to:
www.meed.com/energy

data on Libya, go to:
North Africa
www.meed.com/libya
Go to:
www.meed.com/energy
15-16 North Africa.indd 16
ALGERIA OIL SECTOR

2000
2,000
1500
1,500
1000
1,000
500
500
00
90 92 94 96 98 00 02 04 06 08 10 12
19 19 19 19 19 20 20 20 20 20 20 20
Oil production
Q Egypt: Positive outlook for refining

EGYPT OIL SECTOR
1000
1,000
2000
2,000
1500
1,500
800
800
1000
1,000
600
600
500
500
90 92 94 96 98 00 02 04 06 08 10 12
19 19 19 19 19 20 20 20 20 20 20 20
Oil production
Oil consumption
Source: BP
project will also manufacture

1.4 million t/y of polyethylene, as
well as 600,000 t/y of propylene,
210,000 t/y of butadiene and
420,000 t/y of benzene.
Germanys Linde has been
appointed to lead the EPC and
technology provision for the
petrochemicals complex in a
consortium with South Koreas
SK Engineering & Construction
and the UKs Petrofac. Linde will
also provide the cracker and
recovery technology.
Carbon Holdings had planned
to break ground on the scheme
in 2013, with construction work
due for completion in 2016,
but has been unable to secure
financing due to Egypts ongoing
political instability.
Libya plans
In Libya, the outlook for the
hydrocarbons sector is difficult to
predict. The country awarded a
mere $180m of EPC contracts in
2012, having just emerged from a
nine-month-long civil war at the end
of 2011. About 19 projects worth a
total of $16bn have been placed on
Go to:
www.meed.com/energy
Oil consumption
Source: BP
LIBYA OIL PRODUCTION*
400
400
About
Go to:
$4.2bn-worth
www.meed.com/energy
of projects are
at theGo
design,
to:
www.meed.com/energy
study or bidding
stage in Egypt
00
90 92 94 96 98 00 02 04 06 08 10 12
19 19 19 19 19 20 20 20 20 20 20 20
Oil production
*=Consumption data not available. Source: BP
hold. Most of the schemes had only

reached the conceptual or design
stages, and it is unclear whether
many of them will be revived.
Setting aside the countrys
political crisis, state-owned
National Oil Corporation (NOC) is
currently undertaking a sectorwide strategic study that will set
Libyas future ambitions and
investment requirements. The
government has been working on
tentative plans to increase oil
production to about 2.2 million
barrels a day (b/d) by the end of
the decade through the use of
enhanced recovery techniques, a
novelty in Libya, as well as the
reworking of existing fields.
The downstream segment of
the study was expected to be
completed in July, but has yet to be
published. It is expected to address
the inherent inadequacies in
Libyas oil transport, distribution
and storage infrastructure.
One of the major downstream
plans that could be resurrected by
the study is the $54bn scheme to
turn the Gulf of Sirte into an
industrial and energy hub. Energy
Cities Development Company, a

local privately
firm, is in
Go owned
to:
www.meed.com/energy
talks with potential
investors to
resurrect the project, which will
develop downstream units near the
Go to:
Brega and Ras
Lanuf refineries.
www.meed.com/energy
Launched more
than three years
ago, the scheme has faced many
problems and has so far failed to
advance past the planning stage.
In the upstream sector, Libya is
looking to exploit its offshore
fields, which until now have only
played a limited role in energy
production. So far, the only major
project that has come close to
being tendered is a new offshore
platform and onshore gas
processing facility at the NC-41
concession in the Mediterranean.
The concession is jointly operated
by NOC and Italys Eni through the
Mellitah Oil & Gas venture.
The planned offshore platform
will include gas separation and
dehydration facilities, which will
process 160 million cubic feet a
day of gas. Once processed, the
dehydrated gas and partially
stabilised condensate will be
exported to the onshore Mellitah
complex in the northwest through
two dedicated subsea pipelines
for final treatment. Gas from the
Mellitah facility is transported to
the Greenstream gas compression
facilities, based at the same site.
Looking ahead, several foreign
firms have resumed exploration in
Libya, but turning discoveries into
producing assets and building the
facilities to process the oil will
depend on the governments ability
to impose a level of security across
the country that it has so far failed
to achieve.
Adal Mirza
looked to Egypts downstream

sectors for potential new projects.
Egypts oil and gas sector has
been hit by political turbulence
since the overthrow of former leader
Hosni Mubarak in 2011, and the
ousting of his successor, Mohamed
Mursi, in August, just a year after
becoming the countrys first
democratically elected leader. The
country awarded only $965m of
EPC deals in 2012.
But while the Egyptian market
has been disrupted in the shortterm by the uprisings, the long-term
outlook for the countrys refining
and petrochemicals sectors
looks positive.
Two schemes in particular could
act as a catalyst for further
developments, bringing muchneeded investment into the
industry. The first is the $3.6bn
Egyptian Refinery Company
project in Cairo, first launched in
the mid-1990s by local private
equity firm Citadel Capital. The
refinery scheme plans to process
fuel oil produced at the nearby
Mostorod facility to make lighter
products for the local market. EPC
contracts were awarded in 2007
and design work has commenced.
The second project marks the
first stage of a major chemicals
scheme in Alexandria led by
Egyptian Ethylene & Derivatives
Company (Ethydco). The $1.3bn
scheme will involve building a
460,000-tonne-a-year (t/y)
ethylene and butadiene plant
by 2015. EPC deals were awarded
to Japans Toyo Engineering in
March 2012.
Some $4.2bn-worth of projects
are at the design, study or contract
bid stage in Egypt, with awards
expected before 2015. At the
same time, two major chemicals
schemes valued at a total of $5bn
have been placed on hold.
Carbon Holdings, a local
chemicals development company,
is seeking funding for a major
project at Ain Sokhna in Suez. The
scheme was conceived in 2007
and will include a 3.5 million-t/y
naphtha cracker, which will be the
first such facility in Egypt. The
www.meed.com
29/09/2013 18:10
Databank
Top 40 oil & gas

EPC projects
The Mena regions 40 biggest projects in
oil and gas, and related industries, including petrochemicals, is dominated by the
GCC-member countries and specifically by projects
in the UAE and Saudi Arabia.
Projects in the UAE account for seven of the
10 biggest EPC projects under execution and
46per cent of the regions 40 biggest projects.
Abu Dhabis offshore developments on the
Upper Zakum and Satah al-Razboot (Sarb) fields
The UAE and Saudi Arabia are

theregions biggest spenders
are the only projects to enter the top10 in 2013.

Much of the value of the 40 projects comes from
megaprojects that began construction in 200910, including the Ruwais refinery expansion, the
Shah sour gasdevelopment, and the integrated
gas development, which links offshore fields to
onshore gasprocessing.
Analysed by project owner, Saudi Arabias
national oil company Saudi Aramco is the clear
leader, with more than $19bn-worth of projects
under execution, while joint-venture operating companies take third and fourth place on the table.
South Koreas Samsung Engineering leads the
list of EPC contractors working on oil and gas contracts under execution. The company is engaged
in more than 15 projects in the region, including
two $2bn-plus schemes on Abu Dhabis downstream operations in Ruwais and several other
major packages in the UAE, Saudi Arabia and Iraq.
List compiled by Mark Watts
Top 40 Oil, Gas and petrochemicals projects under execution in the Middle East and North Africa, September 2013
Rank Client
1
Zakum Development
Company (Zadco)
2
3
4
5
6
7
8
9
Country Project
UAE
Upper Zakum full field development,
early production facilities: EPC1
Egypt Hydrocarbon
Egypt
Corporation
Abu Dhabi Oil Refining UAE
Company (Takreer)
Takreer
UAE
Yanbu Aramco Sinopec Saudi
Refining Company
Arabia
Takreer
UAE
Abu Dhabi Gas
Industries (Gasco)
Takreer
UAE
UAE
Tahrir Petrochemicals Complex
Contract
value
($m) EPC contractor
3,790 Petrofac/Daewoo
Shipbuilding & Marine
Engineering
2012
3,750 SK E&C/Linde/Petrofac
Contract
award
2013
Scope
Oil processing facilities and associated facilities
on artificial islands at Upper Zakum oil field
Naphtha cracker with polyethylene, propylene,
butadiene and benzene plants in Suez
Residue fluid catalytic cracking complex
Ruwais refinery expansion: process

package 2
Ruwais refinery expansion:
package 3
Yanbu export refinery: gasoline block
2009
3,109 GS E&C
2009
2,700 Samsung Engineering
2010
2,500 Daelim
Ruwais carbon black and delayed

coker
Integrated gas development: Ruwais
fourth natural gas liquids train
Ruwais refinery expansion: process
package 1
Shah gas development: gas process
plant
2012
2009
2,200 GS E&C/Petrofac
Offsites and utilities, including pipelines,

electrical and water systems
Gasoline block, including distillate hydrotreater,
naphtha hydrotreater and CCR reformer
Carbon black unit, delayed coker unit and
associated facilities
Natural gas liquids recovery train in Ruwais
2009
2,100 SK E&C
Crude distillation unit
2010
1,900 Saipem
Gas processing plant with capacity to process

1billion cubic feet a day (cf/d) of sour gas
Sarb full field development:

package 4
Mina al-Ahmadi refinery-to-powerplant oil and gas pipelines
Barzan gas development onshore:
phase 1
Umm al-Lulu full field development:
package 2
2013
1,880 Hyundai E&C
2010
1,802 Hyundai E&C/Petrofac
2011
1,700 JGC Corporation
2013
2011
1,690 National Petroleum

Construction Company/
Technip
1,650 Fluor
Main processing plant and associated facilities

on artificial islands
Various pipelines, including low-sulphur fuel oil
and fuel gas pipelines
Two gas processing trains with combined
capacity of 1.7 billion cf/d at Ras Laffan
Platforms, including oil separation, gas
processing, accommodation, utilities and riser
11
UAE
Abu Dhabi Gas
Development Company
(Al-Hosn Gas)
Abu Dhabi Marine
UAE
Operating Company
Kuwait Oil Company
Kuwait
12
RasGas
Qatar
13
Abu Dhabi Marine

Operating Company
UAE
14
Sadara Chemical
Company
Kuwait Oil Company
Saudi
Arabia
Kuwait
Jubail new petrochemical complex:

utilities and offsites
Jurassic non-associated gas reserves
expansion: phase 2
2009
2010
1,500 SK E&C
Saudi Aramco
2011
1,500 SK E&C
16
PetroRabigh
Arabiya-Hasbah development
programme: gas processing plant
programme: sulphur recovery unit
PetroRabigh phase 2: expansion of
aromatics complex
2011
16
Saudi
Arabia
Saudi
Arabia
Saudi
Arabia
Saudi
Arabia
Saudi
Arabia
Yanbu export refinery: offsites and

utilities
Yanbu export refinery: hydrocracker
16
Yanbu Aramco Sinopec

Refning Company
Yanbu Aramco Sinopec
Refning Company
Saudi Aramco

1,556 Mohammed Abdulmohsin Early production facility, installation of flowlines,
offsites and utilities
al-Kharafi & Sons/
Petrofac
1,500 Bonatti/KBR
1,500 Daelim
Hydrocracker unit and hydrogen generation unit
2012
1,500 Saipem
10
15
16
16
2010
Gas processing plant next to Manifa central

processing facility in Dharan
Four sulphur recovery trains, each with capacity
of 1,200 tonnes a day
Naphtha reformer, aromatics extraction and
fractionation and associated facilities
CCR=Continuous catalyst regeneration; E&C=Engineering & Construction. Source: MEED Projects
www.meed.com
17-18 Data.indd 17
29/09/2013 18:10
Databank
Top 40 Oil, Gas and petrochemicals projects under execution in the Middle East and North Africa, September 2013, continued
Rank Client
16
Al-Hosn Gas
22
Al-Hosn Gas
23
Abu Dhabi Company

for Onshore Oil
Operations (Adco)
Abu Dhabi Polymers
Company (Borouge)
Sonatrach/BP/
StatoilHydro
Qatargas
24
25
25
25
Country Project
UAE
Shah gas development: offsites and
utilities
UAE
Shah gas development: sulphur
recovery unit
UAE
Sahil, Asab & Shah (SAS) oil field
development: Sahil Shah field
UAE
Algeria
Qatar
25
Laffan Refinery
Company
Takreer
Qatar
UAE
29
Sonatrach
Algeria
30
Borouge
UAE
31
GDF Suez/Sonatrach
Algeria
32
Saudi Aramco
32
Saudi Aramco
Saudi
Arabia
Saudi
Arabia
32
32
Sadara Chemical
Company
Saudi Aramco
32
Saudi Aramco
32
Saudi Aramco
38
39
Lukoil/Southern Oil
Company
Saudi Aramco
40
Borouge
Saudi
Arabia
Saudi
Arabia
Saudi
Arabia
Saudi
Arabia
Iraq
Saudi
Arabia
UAE
Borouge 3 expansion project:

Ruwais polyolefins unit
In Salah gas compression project:
southern gas fields
Plateau maintenance project:
onshore facilities (AGX)
Laffan condensate refinery: phase 2
Contract
award
2010
Contract
value
($m) EPC contractor
2010
1,450 Saipem
2009
1,300 Tecnicas Reunidas
2010
1,250 Samsung Engineering/

Tecnimont
1,200 Petrofac
2011
2010
2013
Ruwais refinery expansion:

package 4
Qartzites de Hamra gas processing
facility
Ruwais ethane cracker
Touat gas processing and production
facilities
Karan gas development: platforms
and power cables
programme: natural gas liquids
fractionating column
Jubail new petrochemical complex:
mixed feed cracker
Jizan refinery project: package 9
2009
2009
2009
2013
2009
2011
Scope
Includes water, steam and condensate systems,
storage and shipping
Sulphur recovery, tail gas treating units, power
generation
Gathering system, oil and gas treatment facilities
Polyethylene and polypropylene plants as part of

2.5-million-t/y capacity expansion at Ruwais
Central production facility, gas gathering and
1,200 Chiyoda/Technip
Acid gas removal unit to remove sulphur from
feed gas at Ras Laffan
1,200 CTCI Corporation/Chiyoda Condensate refinery to double Laffan refinery
capacity to 292,000 barrels a day
1,200 Daewoo E&C
76 tanks ATM, propylene, spherical and
1,100 SNC Lavalin
Gas processing and reinjection facilities,
pipelines
1,075 Linde/Consolidated
Ethane cracker at Ruwais petrochemicals
Contractors Company
expansion
1,020 Tecnicas Reunidas
Production wells, gas gathering, processing
facilities
1,000 McDermott
Four platforms and power cables in Eastern
Province
1,000 SK E&C
Natural gas liquids fractionating column and
2011
1,000 Daelim
2012
1,000 SK E&C
2012
1,000 Petrofac
Mixed ethane/liquids cracker at Jubail

petrochemicals complex
Crude distillation unit, flare, pipe rack and
72 storage tanks and associated facilities
2012
1,000 JGC Corporation
Naphtha and aromatics chemicals complex
West Qurna-2 Mishrif early oil phase:

CPF and oil gathering system
Safaniyah field development:
platforms and power cables
Ruwais offsites and utilities
2012
998 Samsung Engineering
2010
950 McDermott
2010
937 Hyundai E&C
Central processing facility, oil gathering system,

well completion and associated facilities
Two new platforms, modification work for existing
nine platforms, power cables
Offsites and utilities, including storage and basic
processing facilities
CPF=Central processing facility; E&C=Engineering & Construction. Source: MEED Projects
Top 20 oil and gas EPC clients by projects under execution

Client
Saudi Aramco
Abu Dhabi Oil Refining Company (Takreer)
Sadara Chemical Company, Saudi Arabia
Yanbu Aramco Sinopec Refining Company, Saudi Arabia
Kuwait Oil Company
Abu Dhabi Marine Operating Company (Adma-Opco)
Abu Dhabi Gas Development Company (Al-Hosn Gas)
Zakum Development Company (Zadco), UAE
Abu Dhabi Gas Industries (Gasco)
Abu Dhabi Polymers Company (Borouge)
PetroRabigh, Saudi Arabia
Egypt Hydrocarbon Corporation
Egyptian Refining Company
Sonatrach, Algeria
Al-Jubail Petrochemical Company (Kemya), Saudi Arabia
Abu Dhabi Company for Onshore Oil Operations (Adco)
Kuwait National Petroleum Company
RasGas, Qatar
Qatargas
Ethylene & Derivatives Company, Egypt
17-18 Data.indd 18
Contract value ($m)

19,189
12,845
9,295
8,408
7,555
5,660
5,511
5,122
4,388
4,181
3,852
3,789
3,500
3,470
3,460
2,841
2,637
2,500
1,835
1,600
Top 15 oil and gas EPC contractors by contracts under execution*

Contractor
Samsung Engineering, South Korea
Petrofac, UK
Contract value ($m)

11,726
10,462
Daelim, South Korea
9,866
SK Engineering & Construction, South Korea
8,984
GS Engineering & Construction, South Korea
7,834
Saipem, Italy
7,815
Tecnicas Reunidas, Spain
5,534
Hyundai Engineering & Construction, South Korea
4,830
JGC Corporation, Japan
3,408
McDermott, US
2,256
Consolidated Contractors Company, Athens-based
2,255
Fluor Corporation, US
2,130
Larsen & Toubro, India
2,099
National Petroleum Construction Company, UAE
2,051
Technip, France
1,972
*=End of Q2 2013. Source: MEED Projects
www.meed.com
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ENGINEERING,

IN THE MIDDLE EAST

OIL & GAS MARKET OUTLOOK 2013

Tapping the regions

elcome to Engineering, Procurement & Construction in the Middle

projects, such as power plants, water treatment and environmental schemes,

All rights reserved 2013 MEED Media FZ LLC,

Oil and gas EPC 2013 | MEED | 3

regions EPC market

MENA energy epc awards, 2008-13*

Q Biggest spender: Riyadh has invested the most

upstream and downstream oil and gas,

Over the past five years, the Middle

Diversification and job creation

Most of Abu Dhabis investments have been

South Korean Success

Q Iraq: International oil firms are investing billions

Mena=Middle East and North Africa. Source: MEED Projects

What is clear from the recent strategies

As recently as two years ago, many EPC

06-07 Saudi Arabia.indd 6

such as Saudi Basic Industries

Saudi Arabia is set to remain the

development over the past five

f=Forecast. Source: MEED Projects

saudi arabias Top 5 planned EPC projects

Ras Tanura refinery upgrade: offsites

Waad al-Shamal Mining City:

Waad al-Shamal Mining City:

Shedgum-to-Yanbu pipeline extension

Source: MEED Projects

For more information and

PHOTOGRAPH: FRANCO PAGETTI/VII

Eastern Province. The facility is

06-07 Saudi Arabia.indd 7

SAUDI CONTRACT AWARDS, 2008-14

Q Jubail: A petrochemicals hub

*=Forecast. Source: MEED Projects

Sabic is also executing its

Among the larger schemes

enormous, with speculation

So far, spending has been

Iraq offers enormous potential,

iraq epc awards, 2008-14

11 012 013f 014f

f=Forecast. Source: MEED Projects

Top-spending EPC clients in Iraq, 2008-13

IRAQs Top 5 planned oil and gas Projects

Budget Main contract

Iraq-Jordan crude oil export

Rumaila oil field central

For more information and

award value, has secured

IRAQ CONTRACT AWARDS, 2008-14

Q Ambitious: Capacity goals are high

*=Forecast. Source: MEED Projects

the integrated development of

As well as rehabilitating Iraqs

More than $30bn

One critical factor for the

A third full-field development, on

An increase in EPC contract awards in

targets. The country has pushed

2013 is forecast to be the