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Studies indicate total recoverable resources of up to 43mn barrels of oil. (Image source: Adobe Stock)

Exploration & Production

OMV has announced that its Essar well in Libya’s Sirte Basin is commercially viable, following the completion of technical and economic studies

The well is in the concession area C 103, where OMV holds a 12% interest.

Zueitina Oil Company will be responsible for developing the field, where studies indicate total recoverable resources of up to 43mn barrels of oil. Due to its proximity to existing production and processing facilities, the field can be developed quickly and brought on stream in a cost-efficient manner, OMV says.

OMV has a long history of exploration and production of oil and gas in North Africa, in close cooperation with local partners, and the region plays an important role in the company’s upstream growth strategy. Libya is a core focus, where the company has been active for around 50 years with a long-standing partnership with the NOC. At the end of 2024, the company resumed exploration activities in Libya after an interruption of more than ten years.

“The Essar discovery is a major milestone for OMV and our partners at the NOC. It confirms not only Libya’s considerable potential, but also the value of long-term partnerships, technical excellence, and our unwavering commitment on the ground. Strategic collaborations such as this are essential to providing the energy the world needs,” said Berislav Gašo, OMV executive vice president Energy.

Strong potential

The recent discovery is good news for Libya, and is a further indication of its energy potential. Libya holds Africa’s largest proven oil reserves and its fifth largest gas reserves. Libya’s oil production currently stands at around 1.4mn bpd, its highest level since 2013. Libya’s NOC is keen to revitalise the country’s oil and gas industry and aims to produce 1.6mn bpd by the end of 2026, rising to 2mn bpd in the medium term, seeing the participation of international companies as crucial to achieving its growth plans. Libya’s efforts to boost oil and gas production following years of civil war have met with considerable success. In recent developments, Eni, in partnership with the Libyan National Oil Corporation (NOC) through the Mellitah Oil & Gas joint venture, has started hydrocarbon production enabled by the Sabratha Compression Project, a strategic offshore development designed to boost gas output from the Bahr Essalam gas field, located around 100 km off the coast.

NOC has signed production sharing agreements recently with Spain’s Repsol, in partnership with the Turkish Petroleum Corporation (TPAO); and Eni, in partnership with QatarEnergy and MOL Group, with its partners, Repsol and Türkiye Petrolleri A. O. (TPAO). Five blocks were recently awarded in Libya’s recent bid round, its first in eighteen years, which attracted significant international interest.

AGPC has supplied around 360,000 metres of LSAW steel pipes for a major oil pipeline project. (Image source: AGPC)

Industry

The Middle East occupies a pivotal position in the global energy landscape, and any disruption on vital shipping lanes has a huge impact on international supply chains, as shown with the disruption to shipping in the Strait of Hormuz, through which at least 20% of global oil flows passed prior to the current crisis

This underscores the importance of developing alternative routes and strengthening regional infrastructure to keep the energy flowing.

The UAE is accelerating construction of a new oil pipeline to the port of Fujairah, the West-East pipeline, which is expected to begin operations next year. The UAE’s existing Habshan-Fujairah pipeline carries 1.8mn barrels bpd, but the new pipeline will significantly increase capacity. Meanwhile Saudi Arabia earlier this year expanded the capacity of the East-West pipeline, which has been critical in enabling the Kingdom to bypass the Strait of Hormuz and maintain oil exports.

Al Gharbia Pipe Company (AGPC), an Abu Dhabi–based producer of longitudinally submerged arc welded (LSAW) steel pipes, is contributing to the region’s energy security objectives with the supply of around 360,000 metres or 220,000 metric tons of LSAW steel pipes for a major oil pipeline project. The project is an alternative export pathway that enhances flexibility and reinforces the UAE's energy supply chain. The company's access to the UAE's ports on both the Arabian Gulf and the Gulf of Oman allow its steel plate imports and LSAW pipe exports to reach international destinations unimpeded.These multiple port options keep deliveries moving in the event of regional disruption.

"Resilient supply chains are essential for regional and global economies to mitigate disruption of passage along key trade routes," said Noritsugu Mifune, CEO of Al Gharbia Pipe Company. "Al Gharbia Pipe Company's advanced manufacturing and logistics capabilities help supply steel pipes for strategic pipeline networks. This helps strengthen reliability and security of energy flows across the region."

AGPC's AI-powered quality inspection and safety monitoring systems identify possible defects quickly and accurately and prevent workplace safety incidents. Combined with advanced automation and digital production technologies, these capabilities improve traceability, reduce operational risk and ensure that critical pipeline infrastructure meets the rigorous standards required by major energy transit projects, supporting the development of robust pipeline networks in the UAE and wider Middle East region that underpin both today's energy needs and long-term energy transition ambitions.

AGPC has also enhanced its precision manufacturing capabilities, expanding its maximum pipe wall thickness from 44.50 mm to 47.30 mm. According to Mifune, the production of thicker pipe walls is a significant technical achievement for the company due to the increased complexity associated with forming, welding, dimensional control, testing, and inspection of heavy-wall pipes.

AGPC's commitment to manufacturing excellence has led to it winning its second consecutive Impact Champion award at ADIPEC 2026. The award recognises exhibitors that demonstrate their role in strengthening energy systems through innovation, interactive technology, strategic messaging, and compelling visual storytelling.

As the Middle East navigates an increasingly complex operating environment, advanced, AI-enabled manufacturing technologies and multiple supply chain routes are helping ensure that critical pipeline assets meet the highest standards of performance and reliability, contributing to a stronger, safer and more reliable infrastructure that supports regional energy security.

The agreements will expand the chemicals ecosystem. (Image source: ADNOC)

Petrochemicals

TA’ZIZ, a joint venture between ADNOC and ADQ, has signed long-term agreements spanning offtake, feedstock and sales across its chemicals portfolio, valued at US$28.5bn (AED104.6bn)

Signed at the Make it in the Emirates Forum, the agreements, valued at US$28.5bn, secure both global offtake and reliable local feedstocks, allowing for large-scale chemical production within the UAE and reinforcing TA’ZIZ’s role in building a fully integrated domestic chemicals ecosystem. The deals include sale agreements with ADNOC and Proman for methanol; Emirates Global Aluminium (EGA) for caustic soda; Mitsubishi Corporation for ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda; Mitsui & Co. for EDC and caustic soda; Sanmar Group for EDC and VCM; Tricon for PVC, EDC and caustic soda; and Vinmar for EDC and polyvinyl chloride (PVC).

ADNOC Gas secured a 25-year feedstock agreement to supply natural gas to the TA'ZIZ methanol project valued at over $5 billion (AED18.4 billion). TA’ZIZ also agreed a 20 year salt supply agreement with Abu Dhabi based Sama Salt to support production at its PVC complex.

Mashal Saoud Al-Kindi, CEO of TA’ZIZ, said, “These long term agreements represent a defining milestone for TA’ZIZ and for the UAE’s industrial growth ambitions. By securing both global demand and reliable local feedstock, we are translating vision into delivery, anchoring world scale chemicals production, strengthening domestic value chains and creating enduring economic value, jobs and supply chain resilience for the UAE.”

Together, these agreements leverage local resources to secure a reliable and sustainable supply of critical raw materials, further strengthening domestic value chains and advancing the UAE’s industrial self sufficiency.

TA’ZIZ is a manufacturing, industrial services, logistics and utilities ecosystem that enables the production of transition fuels and new products across the chemicals value chain, supporting ADNOC’s ambition to become a top three global chemicals player as well as the UAE’s industrial development and economic diversification ambitions.

The TA’ZIZ Industrial Chemicals Zone is set to produce 4.7 million tonnes per annum (mtpa) of chemicals once construction is completed in 2028. This includes a 1 mtpa ammonia plant, a 1.8 mtpa methanol plant and 1.9 mtpa of marketable products from its integrated polyvinyl chloride (PVC) complex. The PVC complex, which produces PVC, ethylene dichloride (EDC), vinyl chloride monomer (VCM), and caustic soda, will be one of the world’s top three largest single site PVC complexes.

Also at the Make it at the Emirates Forum, TA’ZIZ and Alpha Dhabi Holding announced a strategic collaboration agreement for around US$10 bn (AED36.7bn) in capital investment in new industrial chemicals in the TA’ZIZ industrial chemicals ecosystem in Al Ruwais Industrial City, Al Dhafra region of Abu Dhabi.

The partnership could produce up to 14 new chemicals, delivering around 2.2mn tonnes per annum (mtpa) of additional chemical capacity in the TA’ZIZ industrial chemicals ecosystem in Al Ruwais Industrial City. The new chemicals, which include styrene and polystyrenes, acrylic acid and derivates, polyols, MDI, epoxy resins and linear alpha-olefins, are based on domestic demand and could substitute key products currently imported into the UAE, while strengthening local supply chain resilience. The partnership supports the UAE’s national industrial priorities, including the Make it in the Emirates (MIITE) initiative and the country’s industrial strategy, by strengthening domestic manufacturing capability and advancing self-sufficiency in strategically important chemical products.

Space42, the UAE-based AI-powered SpaceTech company, and IEC Telecom Group are introducing a new approach to offshore operational resilience at ADIPEC 2026, combining the capabilities of the next-generation mobile communications satellite Thuraya-4 NGS, with intelligent network orchestration powered by IEC Telecom's OptiView ecosystem

The joint Orion NEO EDGE solution demonstrates how a satellite connection delivering over 1 Mbps can become a strategic business continuity asset when supported by intelligent traffic management and automated bandwidth optimisation.

The announcement comes as the energy sector accelerates its transition towards increasingly digital and AI-powered operations. According to industry research, the digital oilfield market in the UAE is projected to grow to US$1.21bn by 2030. Yet digital transformation brings a fundamental operational reality: once digital, always digital. As offshore installations become increasingly dependent on connected systems, uninterrupted access to digital applications is no longer optional. Maintaining a dependable always available operational channel is essential to preserving the continuity of critical processes, from core business applications, video conferencing to real-time remote troubleshooting, even when primary networks are disrupted.

Addressing this challenge, Space42 and IEC Telecom have joined forces to deliver Orion NEO EDGE, an integrated solution combining satellite connectivity powered by Thuraya-4 with IEC Telecom's intelligent network management ecosystem.

Designed as a dependable connectivity companion for offshore operations, Orion NEO EDGE combines an emergency voice line and tracking capabilities through the Thuraya MarineStar product, with data connectivity delivering over 1 Mbps via Orion NEO, enhanced by an intelligent orchestration layer powered by IEC Telecom's OptiView ecosystem. By dynamically prioritising critical applications and optimising bandwidth allocation, the solution maximises the operational value of available network capacity, enabling offshore operators to maintain essential business communications, asset visibility and continuity of critical digital processes when primary networks are disrupted.

Elmuiz Saad, senior vice president of Commercial at Space42 said, “As offshore operations become digitally dependent, L-band connectivity continues to prove its value as a critical layer supporting business continuity. Anchored in our strategy to be a leader in Non-Terrestrial Networks, we are scaling Thuraya-4 services through an ecosystem of trusted partners. By combining Thuraya-4 connectivity with IEC Telecom’s intelligent orchestration, Orion NEO EDGE enables operators to maximize their available bandwidth and advance operational resilience.”

The intelligence layer is what transforms connectivity into operational resilience. Rather than distributing limited bandwidth equally across all applications, OptiView dynamically directs traffic according to operational priorities, ensuring that mission-critical processes receive the resources they need. Through application-aware routing, automated policy enforcement and intelligent consumption management, the platform enables operators to maintain control over network performance, even with constrained bandwidth, delivering up to 30% improvement in overall network capacity utilisation.

“Our long-standing partnership with Space42 has always been driven by a shared commitment to delivering reliable connectivity for mission-critical operations. Today, by combining the capabilities of Thuraya-4 with OptiView's intelligent network orchestration, we are taking this collaboration to the next level. Together, we are bringing to market a resilient, dependable solution designed to meet the compliance requirements of offshore operations while maximising the performance of available network resources. We are moving beyond traditional backup connectivity towards intelligent business continuity, ensuring that digital operations remain supported even under constrained network conditions,” said Alaa Alsadi, Group VP – Energy and COO Middle East at IEC Telecom.

Visitors to ADIPEC 2026 can explore the joint Orion NEO EDGE solution and live demonstration of the OptiView's intelligent network orchestration capabilities at IEC Telecom's Stand 9253, French Pavilion, ADNEC Centre Abu Dhabi, from 2–5 November 2026.

The webinar will address the risks and realities of dissimilar flange connections. (Image source: Adobe Stock)

Webinar

Oil Review Middle East is hosting an exclusive webinar by GPT Industries on Dissimilar Flange Connections: Corrosion Risks, Misconceptions, and Practical Solutions, on Thursday 18 June at 9.30am GST

Dissimilar flange connections are widely used across industries, yet they remain a misunderstood and underestimated source of corrosion risk, operational failure, and unexpected cost. This webinar will explore why these connections exist, how they behave in real-world environments, and the critical factors that influence their performance. It will provide practical insight into the risks and realities of dissimilar flange connections, with a focus on corrosion mechanisms, common misconceptions, and effective mitigation strategies to improve reliability and reduce long-term costs.

The session will cover:
✔️ Understanding galvanic corrosion in dissimilar flanges
✔️ The dangers of localised corrosion and its impact on asset reliability
✔️ Common misconceptions around cladding and sealing methods
✔️ Available mitigation strategies, including coatings, bolting practices, and flange isolation kits
✔️ How to apply practical decision-making frameworks based on risk, environment, and lifecycle cost considerations

Register here

GPT Industries is a leading global manufacturer of critical pipeline sealing and electrical isolation products to protect the world’s pipelines, people and environment. With a focus on safety, performance and reliability, the company employs advanced engineering and manufacturing processes to meet the challenging demands of the oil and gas, water/wastewater, hydrogen and construction and infrastructure industries.

Expert presenters will be Rebecca ZImbra – product engineer, GPT Industries, metallurgical/materials engineer with industry, management, and research and development experience and expertise in materials testing, cathodic protection, failure analysis, and weld inspection; and Nick Bander, director – Engineering and Product Management at GPT Industries, an experienced technical team manager with a focus on manufacturing, pipeline corrosion mitigation, oil and gas, energy, and water/wastewater industries, and expertise in team/people development, product application, product design, pipeline, sealing, corrosion, and cathodic protection.

Don't miss this opportunity to gain exclusive practical insights into corrosion risks, mitigation strategies, and decision-making approaches for dissimilar flange connections!
Register here

the crisis and the increased focus on energy security are renewing interest in hydrogen and hydrogen-based fuels. (Image source: Adobe Stock)

Energy Transition

The conflict in the Middle East has disrupted global production and trade in hydrogen-based products such as fertilisers, fuels and industrial feedstocks, exposing vulnerabilities in supply chains, according to the latest edition of the IEA’s Global Hydrogen Review

The report finds that the crisis and the increased focus on energy security are renewing interest in hydrogen and hydrogen-based fuels, although low-emissions hydrogen remains at a relatively small scale.

Demand for hydrogen worldwide surpassed 100 million tonnes in 2025, according to the report, while production of low-emissions hydrogen grew by 20% to almost 1 million tonnes. However, persistent barriers including high costs, uncertain demand, complex regulations and a lack of infrastructure continue to slow the development of low-emissions hydrogen, putting 2030 targets announced by governments increasingly out of reach.

"The current crisis has highlighted how deeply economies around the world depend on trade in hydrogen-based products and the significant role of the Middle East in those supply chains," said IEA executive director Fatih Birol. "Countries are looking for ways to make their energy systems more resilient and diversified. Low-emissions hydrogen can play an important role in those efforts over time, but stronger policy support and much faster deployment will be needed before it can make a meaningful contribution at scale."

Fertiliser markets have been particularly affected by the conflict in the Middle East, which is home to around one-sixth of global hydrogen production, the majority dedicated to the production of chemicals, fertilisers and refined oil products. The region accounts for more than 10% of global refining capacity, ammonia and urea production, and close to 17% of methanol production.

The region makes up over one-quarter of global trade in ammonia, almost 40% of urea trade and almost 45% of methanol trade, and one-third of its refining capacity is export-oriented. The closure of the Strait of Hormuz has severely disrupted the supply of all these products. The production of hydrogen-based fuels outside the Middle East has also been affected, particularly in Asia, where countries are very dependent on natural gas imports from the Middle East.

Disruptions to production, exports and shipping routes have contributed to shortages and price volatility across global markets with the increase in fertiliser costs posing risks for food supply chains, especially in import-dependent agricultural economies.

Low-emissions hydrogen

Low-emissions hydrogen production grew by 20% in 2025 to reach almost 1 Mt and is set to exceed 1% of global hydrogen production for the first time, but progress is concentrated in a small number of projects. However investment momentum weakened in 2025, with delays to final investment decisions and a shrinking pipeline of projects highlighting the challenges facing the sector.

Despite continued policy support in some markets, low-emissions hydrogen and hydrogen-based products remain significantly more expensive than conventional alternatives in most markets. The pipeline of announced projects for producing low-emissions hydrogen by 2030 has shrunk by around a quarter since last year to 27 million tonnes due to delays and cancellations, and the number of projects likely to become operational by 2030 has fallen significantly.

Demand uncertainty remains a key constraint for scaling up low-emissions hydrogen development, with offtake agreements at low level. This is cited by developers as one of the largest barriers to investment.