GCC states need to change procurement systems, approach on investments to improve project awards

Dubai set a March tender deadline for the 300-meter-long, 22-meter-wide signature Infinity Bridge, which is part of the larger Shindagha Corridor scheme that runs through Bur Dubai and Deira. (Courtesy Roads & Transport Authority)
Updated 19 February 2018
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GCC states need to change procurement systems, approach on investments to improve project awards

DUBAI: Countries in the six-member Gulf Cooperation Council (GCC) should overhaul procurement systems and processes and take a different approach on capital investments to improve the region’s environment regarding project awards.
“Dubai has proven that it can be done successfully, and provides a model for how this can be implemented. The other GCC states must now rise to the challenge,” regional projects tracker MEED Projects said in one of its report on Monday.
The industry monitor noted that just $108 billion worth of projects were signed in the GCC last year, $10 billion less than in 2016, and hopes that rising oil prices and more public spending would translate into higher project expenditures were quashed when major pipelined projects failed to take off.
“There was no better illustration of the variability of the projects market between geographies and sectors than in Dubai’s performance last year. The emirate was the saving grace of the UAE market, and saw almost as much work awarded ($29 billion) as the next four largest regional markets combined,” MEED Projects said.
Overall, the UAE awarded $43.5 billion worth of contracts last year, higher than 2016 and 2015.
“Dubai’s performance for the year highlighted how markets can prosper regardless of the crude price. The GCC projects market does not have to be inextricably linked to oil, but what 2017 has shown is that untangling it from crude is proving to be more complex than anticipated,” MEED Projects added.
Nakheel this week signed a 4.2-billion dirham contract for the construction of Deira Mall, seen to be UAE’s largest in terms of leasable space, with United Engineering Construction. Groundbreaking would start by March and the project was expected to be completed in 2021.
Dubai also set a March tender deadline for the 300-meter-long, 22-meter-wide signature Infinity Bridge. The crossing will be built near to the mouth of the Creek and is part of the larger Shindagha Corridor scheme that runs through Bur Dubai and Deira.


Shell, Exxon not to seek compensation for end of Dutch gas field production

Updated 25 June 2018
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Shell, Exxon not to seek compensation for end of Dutch gas field production

AMSTERDAM: Energy companies Royal Dutch Shell and Exxon Mobil will not submit a claim for missed revenue due to the Dutch government's decision to halt gas production at the Groningen field by 2030, the Dutch ministry of Economic Affairs said on Monday.
"A lot of gas will be left in the ground," Economy minister Eric Wiebes said at the presentation of his deal with the oil majors responsible for extracting Groningen gas.
"That gas is the property of the oil companies, but they will not submit a claim and the government is not required to compensate them."
The Dutch government in March said it would end gas production at the Groningen field by the end of the next decade, in an effort to stop a string of relatively small, but damaging earthquakes caused by gas extraction.
This will leave around 450 billion cubic meters (bcm) of gas in the ground, Wiebes said, with an estimated value of approximately €70 billion ($81.5 billion).
The decision to halt Groningen production forced the government to broker a new deal with Shell and Exxon Mobil, whose 50-50 joint venture NAM is responsible for the field.
NAM will be required to pump as much gas as the government says is needed in the coming years. In return, it will see its share of the revenue from Groningen rise from 10 to 27 percent, Wiebes said, starting this year.
As part of the deal, NAM will also contribute a total of €500 million to strengthen the economy in the Groningen region.