The project will support Aramco's production targets.

NesmaKent Energy Company (NKJV), a joint venture between Saudi Arabia’s Nesma & Partners (N&P) and global engineering company Kent, has won its first project management contract (PMC) from Aramco under the National EPC Champion Initiative

The inaugural seed project under this agreement focuses on enhancing water handling facilities in the South Ghawar Area, a critical initiative aligned with Aramco’s long-term corporate strategy to sustain crude oil production and meet Maximum Sustainable Capacity (MSC) targets. NesmaKent’s expertise in EPCM services, advanced execution technologies, and operational efficiency will play a crucial role in optimising the project's success while ensuring minimal operational disruptions.

Aramco’s National EPC Champion Program was launched to support a growing, sustainable national economy by creating jobs and contributing to the Kingdom’s GDP. NesmaKent was formed to support the execution of Saudi Aramco’s EPC projects within the industrial sector, integrating local expertise with global engineering standards. NesmaKent JV specialises in EPCM services, sustainability-driven solutions, and advanced digital execution technologies.

NesmaKent’s role in the current project will involve streamlining the transition from Design Basis Scoping Paper (DBSP) to the Front-End Engineering Design (FEED) stage; enhancing operational excellence and risk management; accelerating knowledge transfer and national workforce development; deploying advanced execution technologies; advancing sustainability solutions and boosting supply chain efficiency and regional expansion.

By adopting these innovative strategies and forward-thinking execution models, NesmaKent is setting new benchmarks in EPCM services and strengthening Saudi Arabia’s position as a leader in global energy infrastructure development, the company comments.

“Our partnership with Aramco under the National EPC Champion Program reflects our unwavering commitment to excellence, innovation, and sustainability,” said Ahmad Hamadah, general manager, NesmaKent. “With a combination of local market knowledge and world-class engineering expertise, we are not only delivering projects but actively shaping the future of Saudi Arabia’s energy sector.”

Rystad expects that oil prices will rise due to summer fundamentals and geopolitical uncertainty.

Driven by rising seasonal demand and geopolitical uncertainty, global oil markets could see tighter balances this summer, despite a projected surplus of supply in 2025, according to Rystad Energy

This year, global liquids demand is expected to grow modestly by 700,000 barrels per day (bpd), while supply surges by 2.2 million bpd—three-quarters of which is expected from non-OPEC+ producers. Of this, 1.8 million bpd will come from crude and condensate. Despite the challenges, Rystad maintains a constructive view of the crude oil balance heading into the Northern Hemisphere summer.

According to the forecast, refinery demand is said to rise by 2 million bpd during the summer months, which should help absorb the additional supply, tightening the market. If the summer sees a hotter-than-normal situation, it could further increase crude demand for power generation, especially in the heat-vulnerable regions.

Iran, however, remains a wildcard. Iranian oil production has rebounded despite ongoing sanctions, primarily due to continued purchases from China, estimates suggest. However, recent U.S. sanctions on several Chinese independent refiners, commonly known as ‘teapots’ and a Singapore-based trading firm, could curb Iran’s exports by as much as 500,000 bpd. But, if a deal were to be struck, Iran could add that amount back to the market by late 2025, with more upside in 2026 depending on investment.

Rystad Energy’s vice president of Commodity Markets, Priya Walia, cautions that geopolitical tensions could alter market dynamics. “The market isn’t pricing in a full-scale escalation between Israel and Iran, at least not yet,” she said, adding, “If tensions were to escalate, we’re likely looking at temporary trade shifts or a supply hit of around 500,000 barrels a day, something OPEC+ could offset fairly quickly.”

Still, any disruption to the Strait of Hormuz, through which nearly 26% of global seaborne crude flows could complicate logistics and trigger broader concerns,.“Any escalation that chokes Hormuz is not just a risk to the Middle East, but also a global issue,” she said, noting it would raise questions around strategic reserves and supply diversification.

The scope involves detailed engineering design for ‘Package 5’ of ADNOC Offshore’s Lower Zakum Long-Term Development Phase 1 (LTDP1) project.

Global consulting and engineering company Wood has been awarded an engineering design contract for ADNOC Offshore’s Lower Zakum development

The scope involves detailed engineering design for ‘Package 5’ of ADNOC Offshore’s Lower Zakum Long-Term Development Phase 1 (LTDP1) project, on the UAE’s Das Island. The contract was awarded by Target Engineering, the EPC contractor.

Located around 65 km northwest of Abu Dhabi, Lower Zakum Field is one of ADNOC’s most significant offshore assets as it seeks to meet its production target of 5mn bpd by 2027.

The LTDP1 project aims to expand sustainable production capacity to 450,000 up to 2035. ’Package 5’ facilities will include three new oil processing trains, including separation, a desalter, dehydration, oil stabilisation system, a new seawater offshore platform, and other related utility facilities. Wood will develop crude oil stabilisation mechanisms at Das Island, which will support the sustainable production of oil at the site until 2035.

Gerry Traynor, president of Eastern Hemisphere Projects at Wood, said, “The Lower Zakum long-term development is a major project in the UAE, which we are proud to work with Target Engineering on.

“Wood's experience in complex engineering design across the Middle East will support Target Engineering and ADNOC Offshore to deliver the goal of maximum energy with minimum emissions.”

He added that more than 200 Wood engineers from across the UAE, India and the UK will work on the project for the next two years. Wood currently employs over 4,000 people across the Middle East, having increased its headcount by 500 in 2024. 

Wood has previously completed a successful front-end engineering and design (FEED) scope for Lower Zakum.

ADNOC awarded US$7.5bn of EPC contracts for Packages 2, 4 and 5 of the LTDP1 Lower Zakum project earlier this year.

Utilities and industrial operators need to transition to next-generation distribution systems. (Image source: Bawan Engineering Group)

To meet today’s demands, utilities and industrial operators must transition to next-generation distribution systems, says Wael Gad, CEO and board member of Bawan Engineering Group

Frequent power outages, unexpected equipment failures, and rising maintenance costs are not just technical hiccups; they are business risks. As the CEO of a company that works extensively with various industries, I have seen these disruptions causing ripples across operations, delaying timelines, inflating budgets, and resulting in financial losses for my customers.

The pace at which energy demand is growing, combined with the increasing unpredictability of energy consumption, makes it clear that legacy systems are holding us back. It is time we treat power distribution as a strategic investment, not just an operational necessity.

Background

With the rise in manufacturing and the increasing use of machines, we have witnessed unprecedented transformations in various industries. As demand for industrial products has increased, factories have not kept pace in transforming their operations and equipment. As a result, industries have become inefficient and prone to breakdowns or failures.

A range of technologies and equipment ensures consistent operational readiness in critical industries, such as oil and gas (O&G), data centres, and other essential manufacturing applications. As a T&D expert, my focus is on power distribution infrastructure and its crucial role in ensuring the reliability of your manufacturing site. At the distribution level, switchgear is one of the most critical components, guaranteeing the safety of the entire network. However, ageing switchgear systems, limited automation, and reactive maintenance strategies have led to operational inefficiencies and frequent service disruptions in industries.

These issues result in prolonged power outages, decreased system reliability, and increased operational and maintenance (O&M) costs. Furthermore, outdated or insufficient electrical switchgear is a primary contributor to these inefficiencies, as it is essential for fault isolation, protection, and control functions. As a result, grid stability is compromised, leading to lower customer satisfaction and reduced system performance.

Why traditional switchgear no longer meets the needs of modern power systems

Now that we have outlined the problem and its impact, it is important to take a step back and ask: why is this happening in the first place? The answer lies in the limitations of traditional low-voltage (LV) and medium-voltage (MV) switchgear. Let’s take a closer look at some of the most critical shortcomings.

Lack of real-time visibility

Traditional switchgear gives you a binary view: on or off, fault or no fault. In dynamic industrial and manufacturing operations, these indicators are insufficient to assess the health of distribution assets.

Unpredictable maintenance and costly downtime

In my experience, unplanned outages can disrupt an entire production cycle or compromise service-level agreements (SLAs), resulting in high costs.

Slow response times and manual operations

In the event of faults or load imbalances, traditional systems primarily rely on field inspections to identify and address issues. The field team is dispatched without a definite fault location, delays recovery, and exposes personnel to hazards. Even a minute lost in response time can lead to increased disturbances in the system and negatively impact customer relationships.

Difficulties integrating modern energy systems

As electrical grids move toward decentralisation, integrating distributed energy resources, such as solar, wind, and battery storage, into the grid has become an imperative general practice. With the increasing number of installations having unknown risks, the traditional switchgear may not be able to handle this level of complexity.

Traditional switchgear solutions lack the ability to consistently communicate. Therefore, it becomes difficult for effective energy management systems and smart grid smarty pants to be very effective.

Turning challenges into opportunities

To meet today’s demands, whether it’s reducing downtime, improving safety, supporting the integration of renewable energy, or enabling advanced grid automation, utilities and industrial operators must transition to next-generation low- and medium-voltage switchgear. Smart switchgear turns traditional pain points into performance gains. Here’s how:

Maximised system reliability and lesser downtime

Smart switchgear solutions significantly enhance system uptime by identifying and mitigating faults before they impact operations. Predictive analytics and continuous monitoring enable preemptive maintenance, thereby reducing the need for emergency responses and minimising business disruptions.

With real-time fault location and the ability to switch remotely, engineers can achieve faster resolution times. In any industrial setting, where time is money, UTEC's solutions offer productivity and service availability by automating recovery while minimising manhours.

Extended lifespan of equipment

From a capital allocation perspective, extending the lifespan of electrical infrastructure is a game-changer. Intelligent switchgear continuously self-monitors, tracking insulation quality, temperature, and load conditions.

The result? We can replace or maintain components before they fail. Adopting a condition-based maintenance approach has effectively moved from reactive to proactive asset management. In financial terms, that translates to decades of additional service life, lower replacement costs, and a better return on infrastructure investment.

Lower operational and maintenance costs (OPEX)

UTEC's switchgear technology substantially lowers operational expenditure as it features intelligent asset management. Remote diagnostics and real-time operational status have diminished the requirement for manual site visits and emergency maintenance.

UTEC switchgear features predictive analytics that reduce energy losses, thereby optimising resource utilisation and facilitating efficient power system operation, ultimately lowering OPEX

Improved energy efficiency

Maintaining optimal energy use with UTEC's switchgear means intelligent load balancing and monitoring energy flow residuals across the network. This saves technical losses, contributing to improved power factors that support sustainability goals and save money.

Combining UTEC's switchgear capabilities with EMS and SCADA ensures that power is always distributed effectively and adaptively during periods of peak demand or when loads change.

Intelligent distribution: a strategic advantage

We have seen how smart switchgear can transform outdated infrastructure into a strategic asset, resulting in enhanced performance, improved safety, and more informed decision-making.
In today’s fast-paced world, your infrastructure strategy is your business strategy. Upgrading to intelligent distribution solutions is not just about keeping the lights on; it is about unlocking efficiency, resilience, and growth.

Wael Gad is the CEO and board member of Bawan Engineering Group, a subsidiary of Bawan Holding, a public listed KSA company. Bawan Engineering Group consists of several companies operating in the manufacturing and services of Electrical & Digitisation equipment (Transformers, Substations, Switchgears, e-Houses, Battery Energy Storage Systems (BESS) and Data Centres). Bawan Engineering Group sells its products in more than 20 countries across the world under the brand UTEC.

Wael has more than 30 years of diversified experience across Europe, Middle East and Africa leading several multinationals and regional organisations. He serves as a board member of several companies in Saudi and Egypt and has also served as an advisory board director and as a business development and governance advisor with several organisations. Previously Wael was the CEO of Philips Lighting in Saudi, the general manager of Microsoft MMD in Saudi & Yemen and also held several C-level assignments for Electrolux across EMEA.