Longitude Engineering wins second offshore contract in Egypt’s West Delta Deep Marine project

Independent offshore design specialist Longitude Engineering, a subsidiary of Oslo-listed ABL Group ASA, has secured its second consecutive contract in Egypt’s West Delta Deep Marine (WDDM) natural gas concession. The new engagement—announced on July 3, 2025—covers detailed engineering and project management services for Phase XI of the concession and is being executed under subcontract to Petroleum Marine Services (PMS), the primary EPIC (Engineering, Procurement, Installation, and Commissioning) contractor.

The WDDM concession, located about 90 kilometers off Egypt’s Mediterranean coast in the northwestern Nile Delta, is operated by Shell via its joint venture Burullus Gas Company. One of the largest subsea gas developments in the region, the WDDM asset consists of 17 fields situated in water depths ranging from 300 to 1,200 meters. Phase XI of the project will tie in three new deepwater twin-well configurations into the live subsea network, marking a critical step in Shell’s long-term brownfield development strategy in Egypt.

Why is Longitude Engineering’s repeat award in Egypt’s offshore gas sector viewed as a strategic milestone?

Longitude Engineering’s latest contract underscores its growing technical credibility in subsea systems design within brownfield offshore environments. According to institutional investors tracking ABL Group ASA’s performance, the back-to-back awards for Phases X and XI of the WDDM development reflect sustained confidence in the engineering consultancy’s ability to deliver under complex offshore conditions. Analysts highlight that Longitude’s performance on Phase X, awarded in January 2024, helped solidify its status as a preferred engineering partner for projects led by PMS and Shell in the Eastern Mediterranean.

The new scope of work includes the detailed design of five subsea M-shape rigid jumpers, each outfitted with specialized deepwater connectors, multiphase gas meters, and sand detection units. These jumpers—approximately 25 meters in length—will be installed adjacent to live infrastructure in one of the most technically challenging brownfield environments in the region. The design also incorporates a novel tie-in spool base (TSB), a modular subsea structure capable of accepting multiple jumpers and providing production allocation flexibility across wells. Subsea control components to support chemical injection and real-time well monitoring are also part of the package.

What engineering and installation innovations are being deployed in the WDDM Phase XI deepwater gas project?

The WDDM Phase XI project brings together multiple advances in modular subsea architecture. Each of the twin-well configurations will be tied into existing infrastructure through a compact layout designed to minimize seabed footprint while optimizing hydraulic performance. The tie-in spool base (TSB) concept introduced in this phase allows for multiple jumper connections within a single subsea structure, reducing installation time and improving future scalability.

Longitude Engineering’s scope includes developing fabrication drawings, stress and process simulations, onshore and offshore handling protocols, and offshore installation engineering. These elements are paired with health, safety, and environmental (HSE) risk studies and execution planning workshops to ensure that operational risks are mitigated throughout the project lifecycle.

This technical approach—especially the ability to deliver pre-commissioning-ready subsea assemblies in a live production environment—is being closely watched by offshore operators seeking to extend the life of mature gas assets through efficient brownfield expansion. Industry observers believe this project could serve as a blueprint for modular tie-back deployments across similar geologies in the Eastern Mediterranean and West Africa.

How does this contract strengthen ABL Group’s strategic position in Egypt’s offshore energy ecosystem?

Longitude Engineering’s win feeds directly into the regional strategy of its parent organization, ABL Group ASA, which has been active in Egypt since 2018 through its local subsidiary ABL. The group’s Cairo office provides project management, marine warranty, and asset integrity services, and this contract marks a deepening of its engineering footprint in North Africa’s offshore sector.

Institutional sentiment surrounding ABL Group has remained stable, with the latest contract viewed as a moderate but meaningful contributor to backlog visibility in the high-margin engineering services segment. While no financial terms were publicly disclosed, typical subsea engineering contracts of this scale in the region can range from $3 million to $7 million, depending on the depth, scope, and complexity.

Investors tracking ABL’s performance on the Oslo Stock Exchange have not yet reacted significantly to the announcement, although industry analysts believe sustained contract flow from PMS and Shell could provide positive medium-term guidance. ABL’s broader portfolio—spanning renewables, marine operations, and upstream engineering—gives it a diversified exposure to both green and traditional energy markets.

How does the WDDM project fit into Egypt’s long-term natural gas production and export strategy?

The WDDM concession has been a cornerstone of Egypt’s offshore natural gas infrastructure since the early 2000s. Burullus Gas Company has methodically executed multiple phases to bring new wells online through tie-back systems, minimizing the need for new platform infrastructure and enabling incremental production gains. Egypt’s strategy—especially since its shift to net gas exporter status post-2018—relies heavily on sustained subsea development to supply both domestic users and its liquefied natural gas (LNG) export terminals.

The Phase XI project aligns with Egypt’s national objective to remain a regional LNG export hub servicing Europe and Asia. With the European Union’s diversification push away from Russian gas and increased interest in Eastern Mediterranean reserves, developments like WDDM are gaining renewed relevance. Phase XI will help offset natural declines in earlier producing fields and is expected to support feedstock supply for the Idku and Damietta LNG terminals.

Furthermore, Shell’s continued investments in brownfield optimization at WDDM are seen as a vote of confidence in Egypt’s regulatory and commercial gas framework. The technical complexity of subsea tie-ins in a live environment also offers local contractors, such as PMS, opportunities to upskill and expand capabilities, supporting domestic content targets.

What is the timeline for execution and what are future prospects for similar subsea gas contracts?

The execution timeline for Phase XI engineering is expected to span the remainder of 2025, with fabrication beginning in early 2026 and subsea installation targeted for the latter half of that year. Institutional observers anticipate that successful delivery of this package could position Longitude Engineering as a preferred bidder for upcoming Phases XII and XIII, both of which are in early-stage conceptual planning under Burullus Gas Company.

Analysts monitoring the regional offshore sector expect that the WDDM concession will remain a multibillion-dollar development corridor for Shell and its partners through the end of the decade. The continued use of modular subsea tie-back strategies and brownfield integration is also being studied by other operators in Lebanon, Israel, and Cyprus, where similar offshore gas formations are present.

Looking ahead, the operational success of Phase XI could create new opportunities for Longitude Engineering across the MENA offshore market, including similar deepwater tie-back systems in the Red Sea and offshore Libya. Industry sentiment remains positive for offshore EPC service providers with proven track records in managing engineering complexity in geologically challenging areas.