Spanish engineering contractor Técnicas Reunidas has been awarded two contracts by Abu Dhabi's state-owned oil company ADNOC for work on the Upper Zakum megaproject, according to Splash247. The combined packages are valued at more than €5bn ($5.75bn), making them the largest contracts the company has ever received as a sole contractor, the company's financial results showed.
Contract packages at a glance
Splash247 reported that Técnicas Reunidas will undertake engineering, procurement, construction, and installation (EPCI) works under both contract packages. The awards form part of the development of Upper Zakum, described as the world's second-largest offshore oil field.
The new phase of development aims to expand Upper Zakum's production capacity to 1.5m barrels per day. The official contract details, as summarised by Splash247, include:
| Key figure | Value |
|---|---|
| Total contract value | More than €5bn ($5.75bn) |
| Upper Zakum capacity target | 1.5m barrels per day |
| Técnicas Reunidas backlog (end-June 2026) | €13.9bn ($16bn) |
| Third package award | NMDC Energy (UAE) |
Scope of work at Upper Zakum
Under the two packages, Técnicas Reunidas will install new facilities on existing artificial islands and on Zirku Island, including key equipment such as compressors, storage tanks, and water treatment units. Construction activities will also cover:
- Offshore production facilities
- Subsea infrastructure
- Utility systems
- Export pipelines
- Brownfield modifications
The scale of the work underscores the complexity of expanding a mature offshore field while tying new infrastructure into existing production systems, Splash247 noted.
Backlog and prior experience
The two packages are a major addition to Técnicas Reunidas' order book. According to Splash247, the company's backlog stood at €13.9bn ($16bn) at the end of June 2026. The third remaining package for the Upper Zakum project was awarded to the Emirati company NMDC Energy.
Técnicas Reunidas already has experience in Upper Zakum, having been awarded the design engineering works for the same oil field in 2019, Splash247 reported. This prior involvement may support execution of the new EPCI scope, given the project's technical complexity.
Implications for oil supply infrastructure
The Upper Zakum expansion is a key upstream development in the UAE, targeting 1.5m barrels per day of crude production capacity. Técnicas Reunidas, as the lead contractor on two packages, will handle offshore production facilities, subsea infrastructure, utility systems, export pipelines, and brownfield modifications, according to Splash247.
For commodity market participants tracking Gulf supply, the contract awards highlight continued capital investment in offshore oil production capacity. Técnicas Reunidas' backlog growth to €13.9bn ($16bn) at end-June 2026 reflects sustained demand for engineering and construction services in the region's energy sector, the company's financial results cited by Splash247 indicated.
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