Construction industry project activity continues to rise, with near-50 per cent increase on 2005

Dubai, January 2005: Major engineering, procurement and construction (EPC) contracts awarded in the GCC in 2005 totalled almost $31 billion, according to a special report in MEED (Middle East Economic Digest).

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.

2005 review - EPC contracts
The highest market share of new contracts went to Paris-based Technip, which closed the year with almost $6 billion in GCC orders, including $4 billion 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 billion in 2005.

Returning to the GCC market in 2005 were two major US-based EPC contractors, Bechtel and Fluor Corporation, with $2.25 billion and $1.75 billion respectively.

Italy's Snamprogetti and Japan's JGC Corporation finished the year in third and fourth positions, with total orders of $3.15 billion and $2.5 billion respectively, with contract wins in Abu Dhabi and Saudi Arabia.

South Korean contractors won more than $3.5 billion worth of oil and gas contracts, while US-based Washington Group International won its first major EPC contract in years, taking the $360 million sulphur handling project at Ras Laffan in a JV 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 billion.

2006 forecast
In terms of contract awards, 2006 could again be a year of new highs, with more than $44 billion 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.

According to MEED's analysis, Saudi Aramco plans to award up to $18 billion worth of contracts onshore to increase output by more than 1.5 million 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 billion programme at the Al-Shaheen field in Qatar, to double production to 525,000 barrels a day by 2010.

In Abu Dhabi, an award is imminent for the $2 billion 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.

MEED is considered the authoritative voice in publishing on Middle East affairs, and is internationally recognised as providing essential information for anyone doing business in, or with, the Middle East and North Africa.

With journalists and contacts across the entire Middle East and North Africa region, MEED provides reliable, up-to-date business news, facts and data in both print and online. MEED now attracts over 70,000 individual readers each week, across 70 countries worldwide. www.meed.com.  

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About MEED
MEED (Middle East Economic Digest) is internationally recognised as providing essential information for anyone doing business in, or with, the Middle East and North Africa. With journalists and contacts across the entire Middle East and North Africa region, MEED provides reliable, up-to-date business news, facts and data in both print and online. MEED now attracts over 70,000 individual readers each week, across 70 countries world-wide.

MEED magazine and MEED.com are part of a portfolio of high quality, business information products and events, including conferences, market reports, investors' guides and practical guides. subscriptions@meed-dubai.com

About MEED Projects
MEED Projects is an online business opportunity tracker, which allows subscribers to access hundreds of the biggest contracts right across the GCC, Iran and Iraq and the ability to track projects daily as they evolve.

Subscribers get access to accurate project information on the top 1,000 projects in the region, tailored to their individual needs through packages across one, three, or all eight countries. www.meedprojects.com

Further information please contact:
Kirstie Hepburn
Euro RSCG Furness
MEED
Tel: +971 4 3903030
E-mail: kirstie.hepburn@eurorscgfurness.com  

Sheena Sudra
Marketing manager
Emap Communications Ltd
E-mail: sheena.sudra@emap.com 

© Press Release 2006