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.

QatarEnergy is looking to increase its trading of both Qatari and non-Qatari LNG.

Qatar plans to significantly boost its LNG trading business to complement its expanding domestic production and is not worried about a supply glut, according to Energy Minister and CEO of QatarEnergy Saad Sherida Al-Kaabi

Speaking at the Qatar Economic Forum, as reported by Bloomberg, the minister said QatarEnergy’s trading unit is already handling 10 million tons of physical LNG annually, more than 50% of which is non-Qatari volumes, and is seeking to increase this to around 30-40 mn tons of non-Qatari LNG by 2030.

The world’s second-biggest LNG producer typically sells its own output through long-term contracts. Some spot cargoes from Qatar are sold via QatarEnergy’s trading business, which also buys and sells third-party volumes. As global demand for LNG grows, flexible and short-term volumes allow sellers and buyers to quickly react to market volatility.

Qatar is also expanding its own production from 77 million tons now to 160 million tons of LNG, both domestically as well as at its project in the USA. The company has 70 ships today and is adding 128 more, as not all volumes will be locked in long-term contracts, Al-Kaabi said.

Al-Kaabi said there is room for growing supply from the USA, the world’s top-LNG producer, as well as Qatar. US volumes typically go to Europe and South America and Qatari LNG will predominately serve Asia. The need for the fuel and electricity is rising globally with population growth and the expansion of AI, Al-Kaabi said.

“We need all that volume,” he said. “The need for electricity and power is huge. So we are not worried at all about having a supply glut or anything like that.”

This bullish forecast for LNG demand is corroborated by Shell, which in its LNG Outlook 2025 forecasts that global demand for LNG will rise by around 60% by 2040 to reach 630-718mn tonnes a year, largely driven by economic growth in Asia, the need to decarbonise heavy industry and transport and the impact of energy-intense AI.

QatarEnergy is discussing sales of additional volumes with buyers in China and India, as well as counterparts in other countries, the minister said.

QatarEnergy continues to implement projects to expand LNG production from the North Field, the largest non-associated natural gas field in the world. The North Field East (NFE) project will raise Qatar’s LNG production capacity from its current 77mn metric tons per year (MTPA) to 110 MTPA. NFE represents the first phase of expansion; the second phase, the North Field South (NFS) project, will further increase Qatar’s LNG production capacity to 126 MTPA. A third phase, the North Field West (NFW) project, will boost Qatar’s LNG production to 142 MTPA by the end of 2030.

The agreement will support the UAE's industrialisation objectives. (Image source: ADNOC)

ADNOC has signed a strategic partnership agreement with Tubacex, a global leader in advanced tubular solutions, to localise critical oilfield technology, strengthening the resilience of ADNOC’s supply chain

The agreement grants ADNOC perpetual and exclusive rights to utilise Tubacex’s Sentinel Prime premium tubular joint connection technology, which is used for completing oil and gas wells and is designed to handle extreme conditions such as deep-water wells and carbon capture.

Tubacex will establish a dedicated research and development (R&D) centre in Abu Dhabi, advancing the development of the country’s industrial base. Thie facility will act as a hub for advanced engineering and train highly skilled technicians in-country, contributing to the development of local talent.

Musabbeh Al Kaabi, ADNOC Upstream CEO, said, "This strategic partnership secures ADNOC access to an important technology for completing oil and gas wells, reinforcing our role as a reliable global energy provider and our efforts to boost domestic manufacturing capacity. We welcome Tubacex’s investment in a new research and development center in Abu Dhabi which will enable knowledge and technology transfer, help develop local talent and support the goals of the Make it in the Emirates initiative.”

Josu Imaz, Tubacex Group CEO, added, “The licensing arrangement with ADNOC confirms Tubacex’s commitment to innovation and excellence in the energy sector and reinforces our position as a strategic contributor for major players in the industry.”

The announcement was made at the ‘Make it in the Emirates’ forum in Abu Dhabi, the UAE’s flagship industrial event, designed to accelerate the localisation of manufacturing. Over four days, this event highlights opportunities, showcases innovation, and fosters collaboration across 12 key sectors, bringing together innovators, investors and policy makers to shape the future of industry.