A special report published in the Middle East Economic Digest (MEED) reveals that an unprecedented number of engineering, procurement and construction (EPC) contracts will be awarded in 2006 in the GCC, worth at least $44 billion.
In 2005, according to the report, quoted in the Bahrain Tribune, $31 billion in contracts was awarded, also a record amount.
Qatari liquid petroleum gas (LPG) contracts were the main force behind 2005 business, while in 2006, focus is expected to turn to Saudi Arabia.
$18 billion in onshore contracts will be awarded by Saudi Aramco, which plans to increase output by more than 1.5 million barrels at the Khurais, Shaybah and Nuayyim fields.
Offshore projects are also in the works, with Saudi Aramco expected to place orders for some 20 production platforms and decks in multi-billion dollar projects at the Marjan, Zuluf, Berri and Safaniya fields by early summer.
Major offshore field developments will be a feature of the GCC oil and gas sector.
In addition, Maersk Oil and Gas of Denmark is operating a $5 billion program at the Al Shaheen field in Qatar.
Production there is then expected to double to some 525,000 barrels a day by 2010.
In Abu Dhabi, a $2 billion EPC contract will establish a gas reinjection super-complex at the Umm Shaif field.