Read the Digital Magazine

In a further boost for Iraq's oil and gas development prospects, Türkiye Petrolleri Anonim Ortaklığı (TPAO) is acquiring a 15% interest in BP Energy Company of Kirkuk Limited (BP ECKL), which is redeveloping several major oil and gas fields in the promising Kirkuk region of northern Iraq

Signed during the official visit of Iraqi Prime Minister Ali Al-Zaidi to Türkiye, the move builds on the strategic cooperation Memorandum of Understanding (MoU) signed by bp and Türkiye's national oil company in February 2026, and follows ConocoPhillips' recent acquisition of a 42% interest in BP ECKL. The two acquisitions bring together partners with complementary capabilities and expertise together with bp to support the next phase of redevelopment in Kirkuk. Following completion of the transaction, bp will remain the majority shareholder in BP ECKL with 43%.

Vast potential

Kirkuk, once among the most prolific regions globally, has vast potential, with a combined resource opportunity estimated at up to 20 billion barrels of oil equivalent.

bp received final government ratification for its contract to invest in the redevelopment of several giant oil fields in Kirkuk in March 2025, when bp said the investment will bring opportunity and growth to the Kirkuk region, as well as improving supply chain capability alongside job creation. Then bp executive vice president William Lin commented that the opportunity is fully in line with the company’s priority of pursuing new growth opportunities for bp as it strengthens and high-grades its portfolio across the world.

The contract between North Oil Company (NOC), North Gas Company (NGC) and bp includes the rehabilitation and redevelopment of the fields alongside investment in existing gas processing facilities, spanning oil, gas, power and water with potential for investment in exploration.

The Development and Production Contract covers an initial phase of oil and gas production of more than 3 billion barrels of oil equivalent from the Baba and Avanah domes of the Kirkuk oil field and the adjacent Bai Hassan, Jambur and Khabbaz fields in Federal Iraq, all currently operated by the North Oil Company (NOC) and North Gas Company (NGC). The contract area also includes additional exploration potential.

bp is drawing on its experience elsewhere in Iraq in developing Kirkuk, notably at the supergiant Rumaila field in southern Iraq, where with its partners it has helped to deliver a 40% increase in production since 2010. bp says it aims to grow a similar, modern upstream oil and gas industry centred around Kirkuk, bringing in technologies that transformed operations at Rumaila, such as real-time monitoring and digital surveillance. These can help to optimise well performance, predict and avert production issues, and facilitate data-driven decision making.

Chief executive officer Meg O’Neill said, “TPAO has been a trusted partner for more than 30 years through our work together across the Caspian region. This agreement builds on that long-standing relationship and, alongside our partnership with ConocoPhillips, positions us strongly for the next phase of redevelopment in Kirkuk. Kirkuk is a world-class resource base that can support Iraq's long-term energy ambitions, and we look forward to working closely with the Government of Iraq and our partners to deliver the next phase of redevelopment."

bp has a longstanding relationship with Iraq spanning more than a century with an involvement in both the north and south of the country. bp’s predecessor helped ‎Iraq to locate, produce and export oil from Baba Gurgur in Kirkuk, one of the largest oilfields ‎in the world at that time.

With decommissioning still at an early stage in the Middle East, getting the model right now will reduce risk, protect schedules and build the local skills, infrastructure and supply chains needed for future projects, says Lee Vettese, regional manager – Middle East at ASCO

The Middle East has spent decades building energy infrastructure at exceptional scale. Decommissioning will test a different part of that system, with requirements that extend well beyond offshore removal.

Meeting those requirements is not simply about having contractors available when projects move into execution. It is about building the physical capacity, regulatory frameworks, specialist skills and operating models needed to manage decommissioning safely and efficiently.

Much of the technical debate centres on wells, structures and removal methodology. But the success of a decommissioning programme is also shaped by what happens once material reaches shore.

Closing the infrastructure gap

The quayside and laydown space needed to receive, process and store decommissioning material is often there. What is missing is the investment and technical preparation needed to turn that space into something that meets the sector’s requirements. That includes segregation areas, licensed waste-handling capability, contamination controls and established routes for reuse, recycling, treatment and disposal.

A single project can bring ashore multiple material streams, including steel recovered from equipment, topsides, jackets and tubulars, alongside residual hydrocarbons, produced water, hazardous coatings and NORM-contaminated material. Managing that mix involves assessment, classification, decontamination, heavy lifting, dismantling, segregation and specialist treatment.

Bringing different disciplines, permits and contractors into one programme makes consistent control across the material chain essential. Without reliable traceability and clear ownership, reusable equipment can be treated as waste, while changes in classification or delays in documentation can leave material sitting in storage, create additional handling and compliance issues, and put both cost and schedule under pressure.

The practical test is whether ports and supply chains are equipped to coordinate that complexity at volume. Over the last two years alone, ASCO has managed projects involving more than 30,000 tonnes of material. Managing that volume requires coordinated quayside operations, full traceability and specialist processing. Ports without the right facilities become bottlenecks rather than solutions. If material remains in storage longer than planned, costs rise and schedules come under pressure.

If accountability is fragmented, the interfaces between them become the weak point. An integrated delivery model does not mean one company performs every task. It means there is one clear line of accountability across the onshore chain, from receipt and handling through to dismantling, material recovery and certified disposal. Specialist partners can still be brought in, but safety, schedule, compliance and delivery remain under coordinated control.

The importance of that control becomes clearest when site conditions challenge the plan. On one recent North Sea project, ASCO managed the onshore recovery and downsizing of an approximately 400-tonne subsea isolation valve. When concerns arose around protecting the quayside during cutting, ASCO’s environmental and lifting-assurance teams developed a bespoke load-spreading solution that allowed the work to continue safely. The project achieved a 99% recycling rate, with zero contamination incidents and no damage to port infrastructure.

Building a regional model

The Middle East can learn from mature decommissioning markets without repeating the same learning curve. The North Sea spent years developing port capacity, waste routes, contractor capability and regulatory practice. The region can apply those lessons earlier.

But this is not about importing another market’s model wholesale. Local regulation, geography, infrastructure and commercial priorities differ across the Middle East. The right approach will combine international delivery experience with the knowledge of regional authorities, port operators, asset owners and supply-chain partners.

Local content is central to that. Building decommissioning capability means developing practical expertise in lifting assurance, materials control, radiological supervision, environmental management, dismantling and project coordination. International specialists can support the early phases, but the long-term value comes from growing capability that remains in the region for future projects.

The strongest investment case will come from planning for programmes rather than isolated assets. Greater visibility of likely volumes, timings and material types allows ports and service providers to invest with more confidence and develop complementary regional capabilities.

Early projects will shape the region’s decommissioning model for decades. The opportunity is to create a connected, locally anchored capability that brings ports, specialist skills and supply chains together, giving clients confidence that recovered infrastructure can be managed from quayside receipt to final recovery. Getting that model right now will reduce risk, protect schedules and build the local skills, infrastructure and supply chains needed for future projects.

About the author:

Lee Vettese has more than ten years' experience working across diverse international energy markets in complex, regulated environments, with a specific focus on environmental and decommissioning operations. As regional manager – Middle East at ASCO, he is based in Qatar, where he leads the company's market development, strengthens strategic partnerships, and supports the region's evolving energy and environmental needs.

At the S&P Global Energy Middle East Petroleum & Gas Conference (MPGC) held in London, Musaab Al Mulla, Aramco's vice president of market analysis and sustainability, underlined the need for the recognition of the role refined products play in resilient energy systems, which has been brought into sharp focus in the current crisis

Al Mulla highlighted the need for a realistic approach to the role of oil and gas as the engine for economic growth and the impact of the crisis on products ranging from helium to materials and fertilisers, with shortages of the latter in turn impacting food supply.

A common theme of the event was the need for resilience and redundancy in the energy system to be able to weather such crises. Al Mulla highlighted Aramco’s focus on long-term strategic planning and investment for the future, as exemplified by its investment in the east-west pipeline which is now not only transporting crude but also products, building flexibility into the system, transporting crude to refineries for export and ensuring refined products get to market.

“The world has realised the need for more investment in pipeline infrastructure and domestic refining to ensure industry is working together,” he said.

He remarked that the crisis has demonstrated demand is resilient and has exposed the underinvestment in refineries, with capital flows being redirected towards the energy transition and resulting in a deficit of 3mn bpd.

“We need to build refineries and infrastructure while also reducing emissions,” he said, noting that Aramco has one of the lowest emissions intensities.

Discussing demand for refined products, he noted that demand for jet fuel continues to grow and refinery utilisation is at record rates.

“We believe demand will continue to be resilient, and low carbon products will be important as well,” he said.

He foresaw strong growth in chemicals with the market for durable materials growing in multiple sectors, noting that carbon-based materials can help reduce emissions. Replacing steel with polypropylene in cars can reduce emissions by 80%, for example. He also highlighted growth in demand for low carbon aviation fuel (lcaf), fossil-based jet fuel, which is 10% lower in emissions than conventional jet fuel, and complements sustainable aviation fuel (saf) as it addresses some of its limitations.

Highlighting the continuing long-term strategic importance of refining, he stressed that gasolene will still account for a significant proportion of transportation fuel by 2050.

With resilience, reliability and sustainability being global challenges, Al Mulla said that resilience for Aramco means building on operational excellence, long-term investment in oil and gas, new energies and low carbon, and localisation, noting Aramco’s 70% localisation target to ensure a resilient supply chain.

“Resilience is correlated with sustainability, you can’t be sustainable if you are not resilient,” he said. It involves not only having the flexibility to be able to adapt to shocks, but also having the capacity to innovate and grow supply while also reducing emissions, he added.

Commenting on the Middle East’s attractiveness as an investment destination, he said, “Clearly the region remains the hub for oil and gas petrochemicals and refining, and it has shown its infrastructure and energy system have been resilient in this historic crisis.”

He said Aramco is also looking at other regions, and urged the need for more investor-friendly policies in Europe, where there is a need for more domestic refining and chemicals so as not to be dependent on other regions.

Discussing the role of gas, Al Mulla said there will be increasing demand to fulfil the growing demand for power from data centres, highlighting the move towards regional data centres.

Margarita Kongawoin, senior vice president of software & HPC at DUG Technology, explains how DUG Insight brings the complete geoscience workflow into a single, integrated package – and why that's changing the way teams work

What do you see as the biggest bottleneck in geoscience software today?

Fragmentation seems to be a major issue slowing geoscience teams down. They often have to work with many different software programmes. Moving data between those applications requires data exchange and format conversion, which takes time and can lead to mistakes. When the data reaches the decision-maker’s desk, time (aka money) and attention have been wasted. This fragmented workflow also prevents people from working together and sharing their different skills in a complementary way.

How does DUG Insight overcome those challenges?

DUG Insight provides a single workspace where geoscientists can work together. For interpreters, this means interactive 2D/3D/gather visualisation with tools for fault and horizon picking, well management and manipulation, crossplotting and AI-assisted interpretation. They can also generate attributes including dip and azimuth, semblance, curvature, spectral decomposition and RGB blending, all on demand.

For processing geophysicists, it offers a full suite of time-processing and depth-imaging tools scalable to massive data volumes from any acquisition geometry – land, marine or ocean-bottom node – with dedicated capabilities for time-lapse (4D) and multicomponent data. Users are not required to run heavy batch processes to test a parameter. On DUG Insight, it takes just seconds to test and QC workflows.

QI specialists get the fastest path to rock properties and probabilistic lithology and fluid prediction, with tools from statistical rock physics, to traditional AVA inversion, to our revolutionary elastic MP-FWI imaging technology.

DUG Insight is the only geoscience software package on the market that spans the complete workflow from seismic data processing and depth imaging through to interpretation, visualisation and rock-property prediction – all in a single, integrated package.

AI is all the buzz now. How does it enhance DUG Insight? What about users who want to bring their own code?

AI tools are now being increasingly integrated into DUG Insight’s workflows for maximum efficiency, whether it’s lithology prediction, fault and horizon interpretation, or accelerated convergence of our MP-FWI.

We also don’t want to lock anyone into a closed box. The software’s API gives users the flexibility to bring their own code into the environment, supporting Java, C/C++, C# and Python. Ultimately, we want to ensure that your custom code is treated with the dignity it deserves. No additional licensing is required, and all intellectual property stays with you.

What’s next for DUG Insight?

We’ve got lots of exciting developments coming soon! Our R&D team continues to embed the latest technology, spanning signal processing to interpretation to algorithmic efficiency. For example, we’re now modelling complex acquisition effects like tides, water-column changes, currents and array geometry, which is vital for full-wavefield imaging and for superior time-lapse (4D) results. On land, we’re inverting ground roll to give high-resolution shear-wave velocity, while the new land statics methodology (AMGRT) solves near-surface complexity to correctly position deep targets. Watch this space!

Oil Review Middle East, in association with Flyability is hosting a webinar on “NDT drones for the oil and gas industry: from innovation to implementation" on Tuesday 14 July at 2pm GST

The oil and gas industry continues to face increasing pressure to improve safety, reduce operational downtime and enhance inspection efficiency. Increasingly, operators are deploying drone technology to improve inspection quality, enhance safety and drive greater operational efficiency across oil and gas assets, discovering new ways to conduct inspections in hazardous and confined spaces while minimising risks to personnel.

This practical session will explore how drone technology is being used to perform remote NDT inspections, collect critical asset data and create digital twins that support more effective asset integrity management. Through real-world case studies and industry experience, attendees will gain valuable insights into implementing drone solutions within their own operations.

Register here

Key highlights

• Visual inspections: Learn how drone technology is improving access to difficult and hazardous inspection environments
• Remote NDT applications: Explore the use of UT spot measurements and other remote inspection capabilities
• Digital twins: Understand how digital asset models are supporting integrity monitoring and maintenance planning
• Industry success stories: Hear practical examples from asset owners and service providers successfully utilising drone technology
• Implementation strategies: Gain insights into integrating drone-based inspections into existing operational workflows.

Our expert speakers:

• Fabio Fata, senior sales manager, Flyability
• Senan Khatib, certified AUV pilot/instructor and UAV field specialist Sagerdrone
• Abdullah Al-Rahmah, head of UAV team, Saudi Aramco
• Jacob Swidy, head of inspection technology and digital transformation, Saudi Aramco

Don’t miss this opportunity to take away exclusive insights from the leading lights of the drone technology world!
Register here

Abu Dhabi is forging ahead with hydrogen development and is emerging as one of the world’s leading global hydrogen hubs, according to a new report from the Abu Dhabi Chamber of Commerce and Industry (ADCCI)

The report, entitled Abu Dhabi's Positioning in the Hydrogen Economy, highlights that Abu Dhabi is moving from ambition to concrete project execution through investment in production, infrastructure, manufacturing, logistics and export-oriented value chains, even as progress slows in other markets due to the reassessment of hydrogen ambitions and policy uncertainty.

Competitive advantage

The report finds that the UAE benefits from a unique combination of structural advantages, including:
• abundant solar resources
• efficient electricity infrastructure
• strong industrial capabilities
• low cost of capital, and
• strong project delivery capability.

These factors combine to make Abu Dhabi among the most competitive global hydrogen hubs globally, with the levelised costs of hydrogen and ammonia set to be one of the lowest in the world by 2030, strengthening its position as a key exporter to early demand centres such as the European Union, Japan and South Korea. 

Abu Dhabi has set a 2031 production target of 1.4 Mt/year of low-carbon hydrogen. This is in line with the UAE’s hydrogen strategy, which aims to enhance the UAE’s position as one of the largest producers of hydrogen by that year and envisages the low-carbon fuel as a crucial tool in meeting the country’s net-zero commitments and reducing emissions in hard-to-abate sectors.

Shift to high-value hydrogen derivatives

The report highlights a global strategic shift away from just exporting pure hydrogen toward higher-value derivatives such as green ammonia, methanol, synthetic fuels, and Sustainable Aviation Fuel (SAF).

Abu Dhabi is pursuing a number of initiatives in these areas such as
• Development of methanol and SAF projects using green hydrogen and captured CO₂
• Exploration of e-methane production and bunkering infrastructure
• Expansion into green ammonia and synthetic fuels.

These initiatives could result in exports worth millions of dirhams, as well as creating new jobs and contributing to emissions reduction, creating new opportunities across manufacturing, trade, logistics and industrial production.

Offtake agreements critical

The report stresses that long-term offtake agreements are critical to accelerate investment and scale the hydrogen economy. As a recent IEA report notes, demand uncertainty remains a key constraint for scaling up low-emissions hydrogen development, and is cited by developers as one of the largest barriers to investment. Despite strong global momentum, the report notes that only around 12% of low-carbon hydrogen projects have secured confirmed customers.

Addressing these considerations, Abu Dhabi is demonstrating a viable delivery model through customer-aligned projects and partnerships:
• The EMSTEEL–Masdar green steel pilot (MENA’s first hydrogen-based steel project) is already operational
• Offtake agreements have been signed with Modon and Aldar to supply green steel to sustainable construction projects.

Equipment and technology offer opportunities

As well as production and derivatives, the report identifies opportunities in exporting hydrogen-related technologies and equipment to global projects, such as electrolysers, port infrastructure components and blending projects. Abu Dhabi's industrial zones — including KEZAD— and logistics infrastructure at Khalifa Port position the emirate as a manufacturing and re-export hub to markets such as China, Germany, the United Kingdom, the USA, and Australia. In a regional first, ADNOC, John Cockerill Hydrogen, and Strata Manufacturing signed an agreement in 2023 to produce electrolysers in the UAE for domestic use and export. Other similar arrangements will surely follow.