Largest oil tender in Kuwait in 10 years launched
Waleed Mansour: The magazine “MEED” revealed that Kuwait is preparing to award what could become the largest tender in the oil and gas sector in over a decade, with the project for the construction of the onshore gas processing station linked to the Al-Durra field. The project is expected to exceed 1 billion dinars, equivalent to approximately $3.3 billion.
The magazine stated that, according to current plans, the project’s execution will make it the highest-value tender awarded in the Kuwaiti oil and gas sector since the main contracts for the Zour Refinery were awarded in 2015. This reflects the return of mega-projects to the forefront of the country’s oil activity after years characterized by low levels of contract awards.
According to “MEED,” the Kuwait Gulf Oil Company launched the tender for the onshore gas station contract on August 23, setting December 29, 2026, as the final deadline for bid submissions. A meeting with contractors is scheduled for September 14 next year. The proposed station will have a processing capacity of up to 632 million cubic feet of gas per day and 60,000 barrels per day of condensates coming from the offshore Al-Durra field, located in the waters of the Gulf within the Saudi-Kuwaiti Neutral Zone.
**Return of Billions**
The new tender gains particular significance due to its exceptional size compared to oil and gas contracts tendered by Kuwait in recent years. “MEED” noted that the last time the Kuwaiti oil sector saw the awarding of contracts of such magnitude was in July 2015, when the main contracts for the Zour Refinery project were awarded. This project is one of the largest refining projects in the Middle East and North Africa (MENA) region.
The Zour Refinery primarily produces gasoline, diesel, and kerosene to European “Euro 5” emission standards. Its execution at the time represented one of the largest waves of spending on energy projects in Kuwait.
**$4.1 Billion**
The Zour Refinery project included five main engineering, procurement, and construction (EPC) packages, with contracts awarded during the second half of 2015. The largest package was the Processing Facilities package, known as “Package One,” valued at approximately $4.1 billion. This package was awarded to a consortium comprising the Spanish company “Tecnicas Reunidas” and Chinese companies, including “Hanwa Engineering & Construction” and “Sinopec.”
These figures highlight the gap between the mega-project contracts witnessed by the sector in the mid-2010s and the levels of awards recorded in recent years.
**A Long Gap**
According to “MEED,” the Kuwaiti oil and gas sector did not witness the awarding of any contract exceeding $1 billion in value during the past eight years. The last contract to surpass this threshold was awarded in March 2017, when Kuwait Oil Company granted a $1.3 billion contract to the British company “Petrofac.” The contract aimed to develop the facility known as Gathering Center 32 in the Burgan field in southeastern Kuwait, before Petrofac completed the project works in 2022.
The value of the onshore gas station linked to the Al-Durra field exceeding $3.3 billion represents a significant jump compared to the size of oil contracts witnessed in the Kuwaiti market in recent years. The launch of the new onshore gas station tender comes amid signs of accelerating activity in Kuwaiti oil projects. Its award, if it proceeds according to the planned schedule, could mark a strong return of billion-dollar contracts to Kuwait’s energy sector after a gap lasting several years.
**Awarding Two Contracts Worth $250 Million in July**
“MEED” revealed that Kuwait signed two contracts in July 2026, with a total value of approximately $250 million. This occurred at a time when the project market in the MENA region experienced fluctuations in contract award activity, following the resumption of conflict in the region after a period of ceasefire.
According to “MEED,” the Kuwaiti contracts were led by the project to construct the permanent headquarters of the Direct Investment Promotion Authority. A contract worth $232 million was awarded to the Chinese company “China State Construction Engineering Corporation.” The contract includes the construction of a 275-meter-high, 55-story office tower in the East area of Kuwait City, with project completion expected by 2028.
**Regional Slowdown**
At the MENA level, “MEED” reported that the value of contracts signed in July reached $20.4 billion, compared to approximately $26.2 billion in June, representing a monthly decline of nearly 22%. This comes against much higher levels recorded at the beginning of the year, where award values reached approximately $40 billion in both January and February before the conflict erupted, then dropped to $26 billion in March, and around $18 billion in both April and May, before regaining some momentum in June.
The transport and gas sectors led the list of sectors by contract value in July, recording $6.7 billion and $6.5 billion respectively, totaling $13.2 billion.
The UAE led the region in terms of the value of contracts awarded in July, totaling $10.9 billion, driven by three contracts collectively valued at $6.2 billion within the gas pressure enhancement project in the Al-Shaheen field in Abu Dhabi. The field is located within the Al-Shaheen and Nasr offshore concession, managed by Abu Dhabi National Oil Company (ADNOC) as the largest shareholder, alongside Italy’s Eni, France’s TotalEnergies, and China National Petroleum Corporation (CNPC).
According to “MEED,” the main packages of the project were distributed among a consortium led by India’s Larsen & Toubro Energy Hydrocarbon and Saudi-Emirati company Lambrill, the US company McDermott, and China Petroleum Engineering and Construction.
**Saudi Decline**
In Saudi Arabia, the value of contracts awarded in July reached $1.9 billion, a sharp decrease compared to approximately $9.9 billion in June. The largest contracts signed during the month were two worth $261 million each, granted by Al-Qidiah Investment Company to the local company Faisal Electromechanical for the construction of a residential building for hotel employees within the Al-Qidiah project.
**Bahrain and Oman**
In Bahrain, a single contract worth $34 million was recorded in July, signed by the Electricity and Water Authority with Al-Kawthi Contracting Company for the construction of nine 66-kilovolt electrical substations in various areas of the country.
In the Sultanate of Oman, the value of the contract recorded during the month was $23 million, signed by the Dhofar Municipality with Al-Hashimi and Al-Rawas for Trade and Contracting. The project includes the construction of a dual carriageway extending from Al-Mamoorah Roundabout to Arzat Roundabout in Salalah city, completing the list of notable contracts witnessed by Gulf project markets in July.
