Saudi Arabia Leads 2026 Offshore Energy Exploration

The offshore oil and gas exploration sector is expected to advance significantly in 2026, despite the challenges posed by the Israeli-American war on Iran. New contracts are in progress, with some moving to the construction phase.

A report from the Specialised Energy Platform (based in Washington) indicates that around $39.4 billion worth of engineering, procurement, and construction (EPC) contracts have been awarded in the sector during the first eight months of 2026, excluding letters of intent. Meanwhile, Westwood Global Energy Group forecasts an additional $45.1 billion in spending on engineering, procurement, and construction contracts for offshore oil and gas exploration for the rest of the year.

Therefore, contracts for 2026 may reach $84.5 billion, a 10% increase over previous forecasts, driven by capital expenditures on projects in Namibia, Indonesia, and the joint Saudi-Kuwait Durra field, as well as the potential approval of the Rovuma LNG project in Mozambique. This contrasts with $53.0 billion in EPC contracts in 2023, $60.3 billion in 2024, and $51.5 billion in 2025.

Offshore Exploration for Oil & Gas

The Al-Durra project of the Khafji Joint Operations Company (KJO) in the joint neutral zone between Saudi Arabia and Kuwait and the “VGN” project of the Oil and Natural Gas Corporation (ONGC) off the coast of India are two examples of projects that have advanced to the construction stage within the framework of improving offshore oil and gas exploration operations as a sign of the final investment decision.

The Al-Khafji Joint Operations Company awarded McDermott the contract for Package 2A of the Dorra gas field development in August 2026, which encompasses 7 production management units, flow lines, and control lines. Moreover, the L&T-Saipem alliance has secured the contract for Package 2B, encompassing a central gathering platform complex, export pipelines, and subsea lines. In addition, Baker Hughes will provide production support platforms for Searah’s Kuti North Hub development project in Indonesian waters.

Likewise, Italian company Saipem has secured a contract to engineer, procure, construct, and install 50 km of rigid pipelines and related subsea structures, including jointing systems, risers, subsea flow lines (SURF), and subsea production systems (SPS) for the third phase of Eni’s Balin field development offshore Côte d’Ivoire.

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Additional Oil & Gas Projects

Eni, the Italian corporation, reported in late July 2026 that the Kronos field project offshore Cyprus received approval, and China Merchants Heavy Industries (CMHI) had secured the floating console contract.
Shell, a British corporation, also approved the plans to develop the third phase of the Malikai field off Malaysia’s coast in August 2026.

According to the “Westwood” report, the British company Harbour Energy has made strides in the “Ho Dat East” subsea well connection project in the Gulf of America, to begin production in the second half of 2028.

The Oil and Natural Gas Corporation Pipeline Replacement Project 10 (PRP-10) involves the awarding of a contract to Larsen & Toubro (L&T), an Indian company, for work in Indian waters. This project will replace over 107 kilometres of pipelines and provide four wellhead platforms for the wellhead platform development programme. Furthermore, Larsen & Toubro will provide the ADR-1 and NLM-14 projects with four permanent platforms, over 70 km of pipelines, and 22.5 km of subsea lines.

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