Expenditure on offshore oil and gas projects in the Middle East and North Africa (MENA) region is poised to hit a decade-long peak in 2023, with regional oil and gas entities collectively awarding contracts valued at $17.5 billion, marking one of the most lucrative years on record for such contracts.
A recent report highlights that this robust spending was buoyed by a stable oil price environment, with Brent crude averaging around $82 per barrel, and by the endeavors of government-backed companies in the MENA region to meet ambitious strategic targets for oil and gas production set by their respective governments, reports Al-Qabas daily.
MEED magazine anticipates that oil and gas producers in the MENA region will sustain a high level of investment in marine projects in 2024, with Saudi Aramco expected to spearhead this effort.
The magazine notes, “The majority of Saudi Arabia’s oil and gas output originates from its offshore fields, as Aramco aims to uphold and progressively enhance production from these fields. To achieve this objective, the company must persist in investing in the development and enhancement of existing infrastructure within these fields, as well as the installation of new structures.”
Additionally, MEED discusses progress in the neutral zone between Kuwait and Saudi Arabia, highlighting the joint venture between Aramco and Kuwait Petroleum Corporation in developing gas from the Dorra offshore field.
Technip Energies, a French company, has been selected to undertake engineering and design work for the project.
The report emphasizes that both sides anticipate producing approximately one billion cubic feet of gas daily from the Dorra field, with an equal split in production.
If Kuwait and Saudi Arabia resolve their differences with Iran over asset development, Aramco and Kuwait Petroleum Corporation could potentially award engineering, procurement, and construction contracts worth an estimated $5 billion for the development of the Durrah gas field by year-end.
MEED further notes that Abu Dhabi National Oil Company (ADNOC) emerged as the largest spender on marine projects in the region last year, with contracts valued at approximately $17 billion awarded for the sour gas development project in Al Hail and Ghasha.
Saudi Aramco ranked as the second-largest regional spender, having awarded $5.5 billion in engineering, procurement, construction, and installation contracts in 2023.
Looking ahead, ADNOC is poised to award engineering, procurement, and construction contracts for several major offshore projects, including endeavors to enhance production from the Upper Zakum offshore field in Abu Dhabi. Similarly, Qatar Energy Company is slated to award contracts for remaining packages of the second phase of the North Field Production Sustainability Project (NFPS).
