GCC awards $ 31 bn in EPC contracts in 2005

Major engineering, procurement and construction (EPC) contracts awarded in the GCC in 2005 totalled almost $ 31 bn. This represents the highest annual figure of all time for the region and reflects on the startling growth experienced in the GCC across all sectors, including energy and construction.
The highest market share of new contracts went to Paris-based Technip, which closed the year with almost $ 6 bn in GCC orders, including $ 4 bn worth of new work on Qatar's liquefied natural gas (LNG) expansion programme.

Following on from its two-train contract from QatarGas at the end of 2004, Technip has been awarded two more mega train contracts on the RasGas III and QatarGas 3 and 4 development. These contracts are a joint venture with Japan's Chiyoda Corporation, whose GCC orders totalled $ 4 bn in 2005.
Returning to the GCC market in 2005 were two major US-based EPC contractors, Bechtel and Fluor Corporation, with $ 2.25 bn and $ 1.75 bn respectively. Italy's Snamprogetti and Japan's JGC Corporation finished the year in third and fourth positions, with total orders of $ 3.15 bn and $ 2.5 bn respectively, with contract wins in Abu Dhabi and Saudi Arabia.

South Korean contractors won more than $ 3.5 bn worth of oil and gas contracts, while US-based Washington Group International won its first major EPC contract in years, taking the $ 360 mm sulphur handling project at Ras Laffan in a joint venture with Abu Dhabi's Al-Jaber Energy Services.
Spain's Tecnicas Reunidas was awarded two packages in Saudi Arabia, on the Rabigh refinery upgrade and the Hawiyah natural gas liquids (NGL) project. UAE-based Petrofac International ended the year with major contract awards of more than $ 1.65 bn.

Forecast for 2006
In terms of contract awards, 2006 could again be a year of new highs, with more than $ 44 bn worth of new contracts expected to be awarded. The focus for 2006 will shift to the Kingdom of Saudi Arabia and its oil fields, while 2005 was driven by Qatari LNG schemes.
Saudi Aramco plans to award up to $ 18 bn worth of contracts onshore to increase output by more than 1.5 mm barrels through the Khurais, Shaybah and Nuayyim field developments. Significant work is also planned offshore, with Saudi Aramco expected to place orders by early summer for about 20 new production platforms and decks to be installed at the Marjan, Zuluf, Berri and Safaniya fields, in a multi-billion-dollar programme.

Major offshore field developments will be a feature of the GCC oil and gas sector. Denmark's Maersk Oil & Gas is operating a $ 5 bn programme at the Al-Shaheen field in Qatar, to double production to 525,000 bpd by 2010.
In Abu Dhabi, an award is imminent for the $ 2 bn EPC contract to fabricate a gas reinjection super-complex at the Umm Shaif field; partner selection is also expected for two new Saudi Aramco export refineries.