KBR will continue to help BOC sustain production at the Majnoon oilfield.

KBR has secured a two-year extension of its engineering, procurement, and construction management (EPCM) contract with Basra Oil Company (BOC) for the Majnoon Oil Field 

Under the contract, KBR will continue to provide comprehensive EPCM services to help BOC sustain production capacity, enhance operational efficiency, maximise local content, and progress continued safety improvements.

The Majnoon Oil Field is a super-giant oil field located 60 km from Basra in southern Iraq. It is one of the richest oil fields in the world with an estimated 38 billion barrels of oil in place. Iraq’s state-run Basra Oil Company operates the field with support from China’s Anton Oil and KBR.

"This contract extension is a testament to the strong working relationship between KBR and BOC, and further reinforces KBR’s ongoing commitment to Iraq’s national energy strategy and the sustainable development of the Majnoon field, one of the most strategic assets in the country," said Jay Ibrahim, president, KBR Sustainable Technology Solutions. "KBR is committed to support local development and contribute to Iraq’s long-term domestic capacity enhancement."

“KBR will continue to be our strategic partner in EPCM projects in Majnoon, successfully supporting our long-term development goals and maximizing field potential through safe, efficient, and sustainable project execution,"  said Kadhim Kareem, CEO of the Majnoon Field at Basra Oil Company.

KBR has a significant involvement in Iraq. Last year it was awarded a US$46mn five-year contract to provide advisory and consultancy services to Iraq’s Ministry of Planning, to support the delivery of strategic infrastructure and energy megaprojects. This includes economic planning, strategy development, feasibility studies, technical reviews and large-scale project management.

The latest contract award follows hard on the heels of a FEED contract awarded by KAR Electrical Power Production Trading FZE (KEPPT) for the development of a major fertiliser facility in Basra, including a 2,300 metric tonnes per day (MTPD) ammonia production unit and a 3,850 MTPD urea production unit.

Flaring has risen to 150 bcm in 2024.

Global gas flaring at upstream oil and gas facilities has risen for a second year in a row, according to the World Bank’s annual Global Gas Flaring Tracker

Flaring rose by 2% to 151 billion cubic meters (bcm) in 2024, the highest level in almost two decades. Around 389mn tonnes of CO₂ equivalent – 46mn of that from unburnt methane, one of the most potent greenhouse gases – was needlessly emitted, wasting about US$63bn in lost energy and setting back efforts to reduce emissions and boost energy security and access.

While some countries have reduced flaring, the top nine largest-flaring countries continue to account for 75% of all flaring, but less than half of global oil production. Russia, Iran, Iraq, the USA, Venezuela, Algeria, Nigeria, Libya, and Mexico remain the top nine flaring countries in 2024. These countries are together responsible for over 75 % of global gas flaring while producing less than 50% of the world’s oil. The largest increases in flare volumes in 2024 occurred in Iran, Nigeria, the USA, Iraq, and Russia (in order of the flare volume increase). Together, these five countries accounted for 4.6 bcm of the additional gas flaring.

Iran’s 12% increase in flaring is primarily attributable to an equivalent rise in oil production, along with a continued lack of investment in associated gas recovery and utilisation. Consequently, the flaring intensity was more than three times the global average.

However reductions in gas flaring were observed in Algeria and Libya, mainly due to lower oil production.

Satellite data in the Global Gas Flaring Tracker shows that flaring intensity—the amount of gas flared per barrel of oil produced—has remained stubbornly high for the last 15 years. All top flaring countries saw an increase in their flaring intensity compared to 2012, except for Iraq and the USA. In Iraq, flaring intensity remained largely unchanged. The USA, which reduced its flaring intensity by almost 50% compared to 2012, now has one of the lowest intensities globally.

The report highlights that countries committed to the Zero Routine Flaring by 2030 (ZRF) initiative have performed significantly better than countries that have not made the commitment, achieving an average 12% reduction in flaring intensity since 2012, whereas those that did not saw a 25% increase. ZRF-endorsing countries with lower flaring volumes, including Brazil, Colombia, Egypt, Indonesia, and Kazakhstan, have demonstrated progress.

To accelerate progress, the World Bank’s Global Flaring and Methane Reduction (GFMR) Partnership is supporting methane and flaring reduction projects through catalytic grants, technical assistance, policy and regulatory reform advisory services, capacity building, and institutional strengthening. For example, in Uzbekistan, GFMR allocated US$11mn to identify and fix methane leaks in the gas transportation network, cutting methane emissions by 9,000 tonnes annually, and potentially reaching up to 100,000 tonnes each year.

“Governments and operators must make flaring reduction a priority, or this practice will persist. The solutions exist. With effective policies we can create favourable conditions that incentivise flaring reduction projects and lead to sustainable, scalable action. We should turn this wasted gas into an engine for economic development.” said Zubin Bamji, World Bank manager for the Global Flaring & Methane Reduction (GFMR) Partnership.

MENA companies and organisations have big ambitions for international expansion and investment. (Image Source: Adobe Stock)

MENA companies and organisations have the biggest ambitions for international expansion and investment, according to Bloomberg Media’s latest Global Foreign Direct Investment (FDI) Outlook

90% of senior business decision-makers in MENA surveyed for the Outlook are looking to expand their operations internationally, well above the global average of 76%, with an average investment plan of US$239mn, compared to the global average of US$194mn.

The MENA region also leads in terms of innovation, with 53% of respondents looking to invest in advanced technologies such as AI within the next one to three years, with an eye to long-term growth.

The region stands out in integrating ESG into FDI strategies, with 69% of senior business decision-makers currently doing so, compared to the global average of 56%, and 29% planning to do so in the future. While commitment to ESG varies by region, MENA businesses tend to take a pragmatic approach, with many already integrating sustainability into their investment strategies.

The escalation of conflict in the Middle East, cybersecurity threats, and increased trade barriers are the top three investment concerns for MENA senior business decision-makers, according to the report titled, “Rebalancing in Real Time: How Shocks Are Shaping the Global Investment Landscape”, which surveyed 2,600 senior business decision-makers in 31 key markets across six regions.

While FDI priorities remained broadly consistent globally, emerging regions tended to focus more on cost and productivity. Additionally, political instability and security risks are having an increasing impact in shaping FDI decision-making.

While growing concerns were reported about trade policy and its widespread global impacts, the easing of U.S.–China trade barriers is the leading driver of economic optimism in the MENA region, with 76% of respondents expressing strong positivity, the highest global rating for this scenario.

The acquisition will drive value for customers and shareholders. (Image source: SLB)

SLB has completed its acquisition of ChampionX Corporation, which is set to strengthen SLB's production and recovery capabilities

SLB will integrate ChampionX production chemicals and its complementary artificial lift, digital, and emissions technologies into its portfolio, helping to enhance performance and extend asset life along the production lifecycle. The combination of ChampionX’s leading production-focused solutions and customer relationships throughout North America and beyond, with SLB’s strong international presence and history of innovation, will drive significant value for customers and stakeholders globally. The acquisition will also strengthen SLB’s expertise, with domain knowledge and customer insights across the entire production and recovery space.

"This acquisition comes at a pivotal time in the industry as our customers increasingly prioritise advancements in production to maximise recovery of oil and gas,” said Olivier Le Peuch, chief executive officer of SLB. “This move expands SLB’s presence in this important, less cyclical, and growing market that aligns closely with our returns-focused, capital-light core growth strategy. It extends our capability to provide integrated production solutions and provides another platform for accelerating digital adoption, optimising production and reducing total cost of ownership for our customers.”

With the closing of the transaction, former ChampionX shareholders now own around 9% of SLB’s outstanding shares of common stock.

SLB remains on track to return US$4bn to shareholders in 2025 and expects to realise annual pretax synergies from the ChampionX acquisition of approximately US$400mn within the first three years post-closing through revenue growth and cost savings.