Trending Reads: Big contracts, new ventures, and a sector doubling down

Vijay Valecha, January 18, 2026, Oil & Gas Middle East

Major EPC awards, new ventures, and renewed offshore activity signal strong confidence in the Middle East’s oil and gas sector as 2026 begins.

From offshore EPC momentum to new onshore execution platforms, the Middle East’s oil and gas sector is opening 2026 with a clear message: capital is flowing, activity is accelerating, and long-term confidence remains intact.

This week, McDermott International is set to secure multiple offshore EPC contracts from Abu Dhabi National Oil Company, with awards estimated at up to $1.5 billion. The anticipated contracts are linked to ADNOC’s expansive offshore development programme, part of its wider plan to invest up to $150 billion over the next five years as it scales production capacity and strengthens asset reliability.

For McDermott, the potential awards reinforce its position as a preferred offshore EPC partner in the region. Under CEO Michael McKelvy, the contractor has sharpened its focus on disciplined execution, cost control, and operational efficiency — attributes increasingly prized as national oil companies push for scale without sacrificing delivery certainty:

Onshore, capacity is also being reshaped. NMDC Group has launched NMDCCC, a new EPC venture formed through its subsidiary NMDC Infra in partnership with Consolidated Contractors Company. The new entity will deliver full-spectrum onshore EPC services for the UAE’s oil and gas sector, combining CCC’s project delivery pedigree with NMDC’s scale, resources, and integrated capabilities.

The move strengthens NMDC Group’s ability to execute complex energy infrastructure at scale while mitigating supply chain risk and reducing turnaround times — a strategic response to accelerating demand across the UAE’s onshore energy market as Vision 2031 priorities translate into projects:

Meanwhile, offshore drilling activity is showing renewed momentum. Saipem has restarted operations of its Perro Negro 7 jack-up rig in Saudi Arabia following a temporary suspension in 2024. The high-specification rig, capable of operating in water depths of up to 375 feet, is now back in service under a long-term contract that runs through to 2034.

The restart is being viewed as a tangible signal of recovery across the region’s offshore drilling market, underpinned by sustained upstream investment and steady global energy demand. For Saipem, it reinforces Saudi Arabia’s role as a core strategic market within its offshore drilling portfolio:

Beyond projects and contracts, the industry’s achievements will once again take centre stage with nominations now open for the Oil & Gas Middle East Awards 2026. The awards will recognise trailblazing companies, projects, and individuals driving excellence across the full oil and gas value chain — from EPC delivery and digital transformation to decarbonisation, leadership, and operational excellence.

With 27 categories, the programme offers a platform to celebrate innovation, resilience, and leadership shaping the region’s energy future. Nominate here:

Looking ahead to market fundamentals, the January 2026 edition of Oil & Gas Middle East features Vijay Valecha, Chief Investment Officer at Century Financial, on the cover. Valecha outlines a cautiously balanced outlook for oil markets in 2026, with Brent expected to trade largely between $58 and $65 per barrel amid oversupply, disciplined OPEC+ production, and persistent geopolitical risk premiums:

While volatility remains, the message for Middle East producers is clear: sustained global demand, particularly from non-OECD markets, continues to underpin long-term opportunity. Export flexibility, petrochemical integration, and disciplined capital allocation will be critical as the industry navigates another year shaped by both uncertainty and strategic opportunity.

Source

Oil & Gas Middle East