According to MEED magazine, the Dorra gas field development, a joint venture between Kuwait and Saudi Arabia, stands as the region’s most ambitious offshore project, with an estimated investment of $5 billion. Currently in its early engineering design phase, the massive project is expected to progress toward contract awards by 2026, marking a significant step in regional energy expansion.
MEED magazine highlighted that nearly half of the Middle East and North Africa’s hydrocarbon reserves are located in offshore basins, driving continued investment by regional oil and gas producers. These investments are primarily directed toward enhancing drilling capabilities, expanding subsea infrastructure, and developing floating production systems to boost output.
The magazine noted that oil and gas producers in the region are making significant investments in technological advancements while prioritizing safety and environmental sustainability. Despite market fluctuations, capital expenditures on offshore projects have remained steady over the past decade, with spending in 2024 reaching an impressive $23.5 billion, one of the highest levels ever recorded.
According to MEED Projects data, Qatar led the region in capital expenditure on offshore oil and gas projects last year, investing over $12 billion. The majority of this investment was directed toward expanding gas production from the massive North Field while also ensuring the sustainability of its crude oil output.
National oil companies across the region, particularly in the Gulf, are actively working to sustain investment in offshore projects. By capitalizing on favorable oil prices, they aim to enhance production capacity in the medium and long term, ensuring energy security and continued growth.
Data suggests that capital expenditure on offshore projects in 2025 could match 2024 levels. In the first two months of the year alone, offshore engineering and construction contracts reached $7.5 billion, entirely driven by ADNOC Offshore’s Lower Zakum Development Project (LTDP-1). This ambitious initiative aims to boost production to 520,000 barrels per day by 2027.
