In The Spotlight
Fatih Birol, IEA executive director. (Image source: IEA)
The 32 Member countries of the International Energy Agency have agreed to make 400 million barrels of oil from their emergency reserves available to the market, the largest release of emergency oil stocks in the Agency’s history, to address the loss of supply stemming from the war in the Middle East and the effective closure of the Strait of Hormuz
In a statement, IEA executive director Fatih Birol noted that the conflict in the Middle East is having a significant impact on global oil and gas markets, with major implications for security, affordability and the global economy.
The conflict in the Middle East that began on 28 February 2026 has impeded oil flows through the Strait of Hormuz, with export volumes of crude and refined products currently at less than 10% of pre-conflict levels. Without sufficient routes to market and without sufficient storage, regional operators have been forced to shut in or curtail a substantial amount of production. They are also experiencing attacks on their energy and energy-related infrastructure.
An average of 20 million barrels per day of crude oil and oil products transited the Strait of Hormuz in 2025, or around 25% of the world’s seaborne oil trade. Options for oil flows to bypass the Strait of Hormuz are limited.
Refinery operations are also being disrupted, with implications for the jet fuel and diesel supplies.
“The situation of the natural gas markets is challenging, with few options to replace LNG cargoes from Qatar and the UAE. These have been reduced by 20%, leaving balances even tighter than for oil,” Birol remarked. Asia has been the most profoundly affected, and is forced to compete with other markets for LNG cargos.
“The oil market challenges we are facing are unprecedented in scale, therefore I am very glad that IEA Member countries have responded with an emergency collective action of unprecedented size,” said Birol. “Oil markets are global, so the response to major disruptions needs to be global too. Energy security is the founding mandate of the IEA, and I am pleased that IEA Members are showing strong solidarity in taking decisive action together.”
While this will alleviate the immediate disruption, the most important thing is to stabilise flows and allow traffic to resume through the Strait of Hormuz, he said.
The emergency stocks will be made available to the market over a timeframe that is appropriate to the national circumstances of each Member country and will be supplemented by additional emergency measures by some countries.
IEA members hold emergency stockpiles of over 1.2 billion barrels, with a further 600 million barrels of industry stocks held under government obligation. The coordinated stock release is the sixth in the history of the IEA, which was created in 1974. Previous collective actions were taken in 1991, 2005, 2011, and twice in 2022.
The IEA Secretariat will provide further details of how this collective action will be implemented in due course. It will also continue to closely monitor global oil and gas markets and to provide recommendations to Member governments, as needed.
“The IEA will continue its mission of upholding energy security, as we have done today for the oil markets, and will continue to do across the entire energy sector,” Birol concluded.
Brent and WTI prices pushed past US$115 a barrel on 9 March 2026. (Image source: GlobalData)
As Brent and WTI prices pushed past US$115 a barrel on 9 March 2026, the world was in for a major supply shock
“The latest price spike indicates that the market is rapidly transitioning from pricing in a logistics disruption to factoring in a potential supply shock. Initially, traders reacted to maritime risks in the Strait of Hormuz, which raised shipping costs and delayed cargoes. However, recent developments suggest that actual production and export volumes across key Gulf producers are now at risk, fundamentally tightening global supply expectations," said Jaison Davis, economic research analyst at GlobalData, an intelligence and productivity platform.
He went on to explain how the sharp price rise exposed the market’s spare capacity buffer. "Even relatively small disruptions to Gulf production can trigger outsized price movements because the region accounts for a disproportionate share of globally traded crude," Davis said.
“The current surge in prices also reflects the concentration risk within the global oil system. A large share of exports from Saudi Arabia, Iraq, Kuwait, and the UAE passes through the Strait of Hormuz, leaving global energy supply exposed to geopolitical disruptions in a single maritime corridor. Financial markets have already begun pricing in the broader macroeconomic consequences of the oil shock, including rising inflation expectations, currency volatility, and pressure on equity markets across energy-importing economies," he said.
Duration remains the most influential determining factor at this point. While prices may find balance if stability is restored in the Strait of Hormuz, it can easily lead to a structural supply deficit situation if there's no end in sight for the conflict.
“At the same time, should GCC states, along with Turkey, manage to influence the US and international diplomatic channels toward de-escalation, markets may begin to unwind some of the current geopolitical risk premiums. Tanker flows through the Strait of Hormuz could stabilise, insurance and freight costs could moderate, and production cuts could be reversed, gradually pushing oil prices closer to pre-crisis levels. Residual volatility would likely persist, but a credible ceasefire or mediation effort could alleviate worst-case supply fears and ease pressure on energy-importing economies.
"Nonetheless, oil markets will remain acutely sensitive to developments in the Gulf region. Pricing dynamics are increasingly shaped by security conditions and the resilience of export routes through the Strait of Hormuz. Even with short-term stabilisation in shipping, any lingering disruption to production, infrastructure, or tanker traffic risks sustaining elevated volatility, as well as renewed inflationary pressures for oil-importing countries,” said Davis.
New developments have driven oil prices sharply higher
A wave of force majeure declarations has swept through the Middle East's energy sector this month as the ongoing US-Israel war with Iran disrupts production, shipping, and exports across the Gulf region, writes Sania Aziz.
The declarations, which relieve companies from contractual obligations due to unforeseen events beyond their control, stem from Iranian retaliatory attacks on facilities, threats to maritime routes, and the near-total blockage of the Strait of Hormuz, which is a vital chokepoint for one-fifth of global oil supplies.
QatarEnergy, the world's largest liquefied natural gas (LNG) exporter, was among the first to act. On 4 March, the state-owned firm declared force majeure on LNG shipments after halting production at key facilities in Ras Laffan and Mesaieed following Iranian drone strikes.
The company cited attacks on its infrastructure and the inability to operate safely, with sources indicating restarts could take weeks or longer to avoid equipment damage.
Qatar supplies around 20% of global LNG, and the move has sent shockwaves through Asian and European markets reliant on these deliveries.
Kuwait Petroleum Corporation (KPC) followed suit on 7 March, declaring force majeure on crude oil and product exports while slashing output.
The decision was prompted by explicit Iranian threats to shipping safety in the Strait of Hormuz, ongoing regional attacks, and a severe shortage of available vessels in the Gulf.
KPC, a major naphtha and jet fuel supplier to Asia and Europe, cited these factors as making normal operations impossible.
Bahrain's Bapco Energies joined the list today, 9 March, announcing force majeure on group operations after an Iranian strike set its Sitra refinery ablaze, which is the kingdom's sole refining complex.
The company assured that domestic supplies remain secure under contingency plans, but exports and broader activities are severely impacted by the conflict.
Aluminium Bahrain (Alba), operator of one of the region's largest smelters, declared force majeure earlier in March on shipments.
Unlike others, Alba stressed that its facilities remain undamaged; the issue lies solely in halted shipping through the Strait of Hormuz, preventing outbound metal deliveries despite continued production.
The ripple effects extend beyond Gulf producers. China's Wanhua Chemical declared force majeure on for supplies to Middle East customers, blaming severe regional shipping disruptions.
These developments have driven oil prices sharply higher and raised fears of prolonged supply shortages.
Analysts warn that further escalations could prompt additional declarations from Saudi Arabia, the UAE, and others as storage fills and export routes remain blocked.
The situation remains fluid, with global energy markets on high alert.
The acoustic MP-FWI imaging implementation has demonstrated significant uplifts. (Image source: DUG)
Technological advancements in geoscience are often incremental—small steps that help refine our ability to understand the subsurface. But occasionally, we witness a genuine leap. DUG Technology’s Chief Geophysicist, Tom Rayment, considers the impact of elastic MP-FWI imaging and asks, "Is traditional seismic processing finally a thing of the past?"
For the past century, seismic data has been an invaluable tool for detecting hydrocarbons. Although methods have become more sophisticated, the fundamental workflow for turning acquired data into interpretable products largely remains the same. The advent of elastic multi-parameter full waveform inversion (MP-FWI) imaging represents a significant shift away from the traditional approach.
The acoustic MP-FWI imaging implementation has demonstrated significant uplifts without needing conventional time-processing, model-building, or depth-migration techniques. Elastic MP-FWI imaging is a further step-change, also deriving rock properties and effectively rendering the amplitude variation with angle (AVA) inversion workflow redundant. The approach will soon make conventional workflows obsolete, if it hasn't already.
Despite this monumental leap, the technology is still young, with ample room for more progress. Most FWI implementations use a single component of the acquired data (hydrophone for marine, vertical geophone/accelerometer for land). However, additional components offer complementary information that can further constrain results. Recent developments show that two-component towed streamer and ocean-bottom seismic MP-FWI imaging can further improve results and accelerate convergence.
The logical next step is to include horizontal components. Shear waves provide valuable subsurface information, especially in areas of strong P-wave absorption like gas bodies. Recent DUG projects are already demonstrating that the benefits of converted-wave processing can be realised with elastic MP-FWI imaging. Furthermore, on land, exploiting shear waves in the form of ground roll is now viable. What was once noise is now a useful signal, inverted via elastic FWI to provide high-resolution shear-wave-velocity models. Capturing near-surface complexity is crucial for successfully illuminating deeper targets.
Another benefit is the seamless integration of expertise. Processing, imaging, and quantitative interpretation geophysicists can now work simultaneously on a project, abandoning the siloed conventional workflows. Closer collaboration fosters better understanding, which translates to optimal results. This will soon extend beyond AVA inversion into reservoir characterisation and modelling. Elastic MP-FWI imaging will produce a suite of outputs, providing a rich model space for reservoir engineers to make probabilistic predictions that honour both seismic and well data.
This technological leap was first conceived by the FWI pioneers in the 1980s. Its reality today is thanks to the skills of research and development teams and modern high performance computing. This essential work continues in earnest at DUG; as the technology evolves, it will continue to extend what is possible with seismic data, ultimately allowing the industry to make better, faster decisions.
AD Ports Group remains fully operational.
AD Ports Group has reported continuation of all operations across its clusters without any disruption given current regional developments
The Group has already taken precautionay measure with the activation of its crisis management and business continuity protocols, as it remains in constant coordination with the authorities concerned in the UAE to safeguard its workforce, partners and stakeholders.
All UAE ports and terminals managed and operated by the Group’s Ports Cluster, in addition to related services remain fully operational.
While inaccessibility of the Strait of Hormuz will affect vessel calls at Khalifa Port, services at the port will go on uninterrupted. Closure of the Strait of Homruz will be compensated by increased volumes from the Group's diversified global maritime network, as it shifts trading routes.
Across the Group’s Maritime & Shipping Cluster, the majority of its 122 shipping vessels including container, bulk, Ro-Ro, and multipurpose vessels are operating outside the Strait of Hormuz. Those currently within the Strait continue to operate intra-Gulf services. Overall, the impact on the Maritime & Shipping Cluster is expected to be limited. The Group’s Economic Cities & Free Zones and Logistics Clusters are likewise expected to experience limited impact.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, said: “Global trade has historically demonstrated resilience during periods of geopolitical tension. Through disciplined execution, operational excellence and proactive risk management, AD Ports Group remains well positioned to support supply chain stability and uphold its commitments to customers across its global network, in line with vision with our wise leadership.’’
Oil is now a question of access, geography and timing.
The oil market is no longer asking how much crude is being produced. It is asking who gets it, and when
Over the past week, attention has focused on the number of strikes across ports, refineries, power plants and LNG facilities in the Gulf. Depending on assumptions, the direct loss of wellhead, pipeline and refinery liquids to market may already exceed 1 million barrels per day. That figure alone is significant. But it remains secondary to the larger question hanging over the Strait of Hormuz.
Even if Hormuz begins to flow again in something close to normal volumes, the region’s infrastructure is clearly vulnerable. The market is now being forced to price not just a temporary blockage, but the risk of ongoing disruption to oil and gas facilities. Each passing hour of uncertainty adds incremental supply chain strain, and Brent has begun to reflect that reality.
There are various scenarios between full closure and full normalisation. Even a return to 75% of normal transit would present a severe logistical challenge. Insurance costs, naval escorts and rerouting all reduce effective supply. Freight markets are already reacting accordingly. Prompt tanker rates are surging, sharply raising landed crude procurement costs.
In this environment, traditional pricing logic begins to break down. The landed price of crude grades becomes less relevant when freight cannot be reliably fixed and spot premiums are difficult to establish. The market shifts from price optimisation to access management.
The West is relatively long crude and less dependent on Arabian Gulf supply than the East. It also holds freight advantages. Asia, by contrast, is more exposed to Gulf flows. As a result, refining runs in Asia are more at risk than in Europe or the United States. That divergence is already appearing in product markets via East-West spreads.
Brent-Dubai spreads may widen further regardless of freight direction. There is effectively no competition for the marginal Western barrel into Asia if Gulf supplies are constrained. In that context, Dubai-linked pricing can tighten independently of freight economics, while Brent can move in ways that do not necessarily align with historical arbitrage logic.
Freight costs themselves are becoming a direct transmission mechanism. Aframax rates to Europe imply roughly $9 per barrel to move WTI into the Atlantic Basin, pushing prompt WTI-Brent spreads wider. VLCC routes to Asia are similarly expensive. Yet benchmark differentials do not always adjust cleanly to reflect this because physical flows are constrained by risk, not simply by economics.
The longer the stand-off persists, the more structural these shifts become. Refiners must make procurement decisions based on security of supply rather than margin optimisation. Strategic reserves in the US, Europe, China, Japan and South Korea provide buffers measured in months, but releasing stocks is a policy decision. Governments may choose to loan or auction volumes to smooth disruption, but those tools are not immediate substitutes for steady Gulf exports.
Infrastructure risk now extends beyond crude production. There are concerns around storage capacity, with reports suggesting some export terminals may face tank-top pressures if flows remain restricted. Ullage becomes part of the conversation. Even if Hormuz reopens, infrastructure security will remain in question for some time.
Products will increasingly act as the demand-adjustment valve. Refining margins may need to rise to justify higher crude procurement costs and ensure available barrels flow eastward. Natural gas pricing is already signalling potential substitution toward fuel oil and crude in power generation where possible.
For now, the market’s priority is evidence that Hormuz can move safely and consistently, including clarity on insurance and escort arrangements. Without that, prices will continue to reflect supply chain risk rather than just supply loss.
This is no longer simply a production story. It is a logistics and allocation story. In a fragmented and risk-sensitive market, oil does not disappear evenly. It becomes a question of access, geography and timing. And that is where volatility truly begins.
The writer of the article is Neil Crosby, AVP Oil Analytics at Sparta
Location of Ras Tanura
An official source at Saudi Arabia’s Ministry of Energy has confirmed that the Ras Tanura oil refinery sustained limited damage on Monday morning after debris from intercepted drones fell in its vicinity.
According to the Saudi Press Agency, the incident occurred at approximately 7:04 AM local time when two drones were intercepted near the facility. Falling fragments reportedly caused a small fire within the refinery complex.
Emergency response teams acted swiftly to contain the blaze, preventing any escalation. Authorities said the fire was brought under control in a short period of time, and no injuries or fatalities were recorded as a result of the incident.
As a precaution, certain operational units at the refinery were temporarily shut down while safety checks were carried out. Officials stressed that the measures were taken to ensure the continued protection of personnel and infrastructure.
Despite the disruption, the Ministry of Energy confirmed that the incident has not affected the supply of petroleum products to domestic markets. Fuel deliveries and distribution channels are continuing as normal, with contingency protocols ensuring stability in local supply chains.
Ras Tanura is one of the Kingdom’s key refining hubs, playing a central role in processing and distributing petroleum products. While the reported damage was described as limited, the event underscores the importance of protective and rapid-response measures at critical energy infrastructure sites.
Authorities have not released further details regarding the origin of the drones or the broader security context surrounding the interception. However, officials reiterated that safeguarding energy facilities remains a top priority, with emergency and security teams maintaining heightened vigilance.
The situation remains under monitoring, with the Ministry indicating that updates will be provided if necessary.
There is strong international interest in Libya's exploration potential. (Image source: Adobe Stock)
Libya’s NOC has announced the winners of the latest oil exploration bidding round, launched in February 2025, which offered 20 blocks for investment, both onshore and offshore
They include the USA’s Chevron; a consortium of Eni and QatarEnergy; a consortium of Repsol and state-owned Türkiye Petrolleri A. O. (TPAO), a consortium of Hungary’s MOL, Repsol and TPAO; and Nigeria’s Aiteo.
The licensing round was Libya’s first for eighteen years and attracted more than 40 bids, signalling growing international interest in Libya’s largely untapped hydrocarbon potential. Only five blocks out of the 20 offered were awarded.
Chairman of NOC Engineer Masoud Suleiman highlighted that the success of this round, conducted with the highest standards of quality and transparency, marks a significant turning point in the development of the Libyan oil sector. He noted that it will double Libya’s crude oil production, leading to an economic revival that aims to steer the country toward stability and prosperity, while also safeguarding Libya’s crude oil reserves for future generations.
He stressed that the success of this round also signified the restoration of the world’s confidence in Libya, which will in turn have a positive impact on the Libyan economy.
Chevron, through its subsidiary Chevron Business Development EMEA Ltd won Contract Area 106 located in the Sirte Basin, marking its entry into Libya. In January, Chevron separately signed an MoU with NOC in Tripoli to evaluate the development and exploration potential onshore Libya.
"Chevron is excited to enter Libya with the award of onshore Contract Area 106, which underscores our focus on North Africa and the Eastern Mediterranean region, and is a good fit in our exploration strategy to grow our portfolio with high-quality acreage and high impact prospects," said Kevin McLachlan, vice president of Exploration at Chevron.
"Libya has significant proven oil reserves and a long history of producing its resources. Chevron is confident that its proven track record in developing oil and gas projects and its technical expertise gives it the ability to support Libya to further develop its resources."
A consortium led by Eni (60%) in partnership with QatarEnergy (40%) has been awarded the offshore exploration License O1, which covers approximately 29.000 sq km in the offshore extension of the prolific Sirte Basin. It offers notable exploration potential, including wide areas without 3D seismic coverage that could host additional hydrocarbon accumulations. The block also features various hydrocarbon indications, including stranded oil and gas discoveries.
Under the terms of the agreement, Eni will operate the concession, with the consortium holding a 100% stake during the exploration and development phases. The partners plan to conduct 2D/3D seismic acquisition and drilling activities over the first five-year exploration period.
Eni sees the award as “a significant step forward in strengthening Eni’s upstream position in the country”. Eni has been active in Libya since 1959, with equity hydrocarbon production of approximately 162,000 barrels of oil equivalent per day in 2025.
For QatarEnergy, the licence marks its entry into Libya’s upstream sector.
His Excellency Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the president and CEO of QatarEnergy, said, “We are pleased to be awarded this exploration block and enthusiastic about the prospects of Libya’s offshore upstream sector and about expanding our upstream footprint in North Africa.”
A consortium of Repsol (operator with 40% share), state-owned Türkiye Petrolleri A. O. (TPAO) with a 40% share and Hungary’s MOL Group (20%) won the 07 offshore block which covers more than 10,300 sq.km in water depths exceeding 1,500m, located approximately 140 km northwest of Benghazi. Its deepwater setting aligns with the consortium’s extensive offshore experience, according to a statement from MOL.
The deal sees the entry of MOL into Libya, and follows the signing of a strategic partnership between MOL and Libya’s NOC. That agreement outlines plans for joint work across several key areas, including hydrocarbon exploration and production, technological and field development innovations, as well as crude supply, trading, and oilfield services opportunities in Libya.
Nigeria’s Aiteo won the M1 block in the Murzuq Basin, while Repsol and TPAO also won the onshore C3 block in the northeastern Sirte Basin.
Libya’s oil production currently stands at around 1.3mn bpd. NOC aims to produce 1.6mn bpd by the end of 2026, rising to 2mn bpd in the medium term, and sees the participation of international companies as crucial to achieving its growth plans.
Mabruk oilfield onshore Libya, located in concession C17, around 130 km south of Sirte. (Image source: TotalEnergies)
The agreement relates to exploration in Oman's offshore Block 18. (Image source: Adobe Stock)
Amin H. Nasser, president and CEO of Aramco. (Image source: Aramco)
Aramco CEO Amin H. Nasser has warned of ‘catastrophic consequences’ for the oil markets and the global economy if the conflict in the Middle East continues
Speaking in a media call for the energy giant’s 2025 full year financial results, he said, “Global spare capacity is mostly concentrated in this region, so it’s absolutely critical that shipping resumes in the Straits of Hormuz.
“The disruption has caused a severe chain reaction in not only shipping and insurance but there’s also a drastic domino effect on aviation, agriculture, automotive and other industries,” Nasser continued.
“While we have faced disruptions in the past, this one by far is the biggest crisis the region’s oil and gas industry has faced.”
Nasser gave assurances that Aramco has contingency plans in place for various scenarios, crises and challenges to ensure it continues to deliver to its customers, leveraging its significant operational capabilities, and the flexibility of its advantaged infrastructure and network in Saudi Arabia and globally.
The company is managing to reroute some of its crude exports via the East-West pipeline to the port of Yanbu on the Red Sea to bypass the Strait of Hormuz, but this is now close to capacity and is unable to fully compensate, with 3-4mn bpd of Saudi exports remaining exposed to the closure, according to Rystad Energy.
While Saudi Arabia is reported to have begun reducing oil production in response to the crisis, Nasser said at the earnings call that Aramco could restore output in days rather than weeks once the Strait of Hormuz reopened.
Aramco has also said its Ras Tanura refinery, one of the Kingdom’s key refining hubs, is restarting after sustaining limited damage from debris from intercepted drones.
2025 results
Aramco reported profits of US$104.7bn in 2025, down from US$110.3bn in 2024, reflecting a lower average oil price of US$69.2 compared with US$802 the previous year. It recorded capital expenditure of US$50.8bn, up slightly from US$50.4bn the previous year.
In terms of operations, Aramco reported significant progress in expanding gas production capacity, with start of production at Jafurah in December 2025, and commencement of operations at Tanajib Gas Plant. The two plants will provide about 1.3bn standard cubic feet per day of combined sales gas production capacity. Jafurah Phase II and the Fadhili Gas Plant expansion are set for 2027 completion, while the Master Gas System Phase III is progressing, and due to add 3.15bn standard cubic feet per day of transmission capacity by 2028. The Marjan crude oil increment was brought onstream and water injection operations commenced at Berri crude oil increment, while on the exploration front, Aramco discovered six new fields and two new reservoirs of Arabian oil.
Downstream, the energy giant is progressing towards its long-term target of 4mn barrels per day of liquids-to-chemicals capacity, with Shaheen in South Korea, Amiral in Saudi Arabia and HAPCO projects in China, which are under development and on track for completion in 2026 and 2027.
Nasser said, “Aramco delivered robust growth and strong cash flows in 2025, reinforcing confidence in our strategy. Our disciplined capital allocation, combined with our lower-cost, adaptable, and highly-reliable operations, drove strong financial performance in a year marked by price volatility. This enabled a 3.5% increase to our base dividend, reinforcing our focus on delivering sustainable and progressive shareholder returns.
“We continue to leverage advanced technologies including AI to enhance efficiency and unlock value across our business. We also continued to maintain our impressive safety track record in 2025, with our lowest total recordable case rate since the IPO.
“Following another year of record oil demand in 2025, we believe ongoing investments in our operations position us well for the future…Our strong project momentum underscores potential for future operating cash flow growth, creating further opportunities and reinforcing our position as a global energy leader.”
Oil prices remain high due to the US/Iran war. (Image source: Adobe Stock)
Envorem’s modular sludge remediation system installed in Saudi Arabia. (image source: Envorem)
The new collaboration aims to scale up the development of CTC technology. (Image source: KAUST)
Aramco, Honeywell and King Abdullah University of Science and Technology (KAUST) are collaborating to scale up the development of Crude-to-Chemicals (CTC) technology in a bid to maximise the value of crude oil and reduce costs associated with CTC conversion
The new CTC pathway will entail converting crude oil directly into light olefins and other high-demand chemicals, resulting in improved fuel efficiency, carbon utilisation, and process economics—allowing for more efficient and cost-effective production at scale.
The collaboration aligns with Saudi Arabia’s Vision 2030 by helping to advance economic diversification, build national research and technology capabilities, and strengthen the Kingdom’s position in the global chemicals market, combining academia and industry expertise to accelerate technology development and national capabilities.
Dr. Ali A. Al-Meshari, Aramco senior vice president of technology oversight & coordination, said, “This collaboration with Honeywell UOP and KAUST furthers Aramco's efforts to drive innovation and shape the future of petrochemicals. By harnessing the power of cutting-edge technologies, we aim to enhance energy efficiency and unlock increased value from every barrel of crude. This novel Crude-to-Chemicals process is aligned with our vision of supporting the global transition towards cleaner, high-performance chemical production. Moreover, this initiative demonstrates our focus on contributing to the growth of a vibrant ecosystem, where the deployment of innovative technologies can create lasting value for our stakeholders, our communities, and the environment.”
Rajesh Gattupalli, Honeywell UOP president, added, “This agreement marks a defining moment in our strategic collaboration with Aramco and KAUST – and in the global evolution of Crude-to-Chemicals technology. With Honeywell UOP’s deep expertise in catalytic process design and commercial scale-up, we’re well positioned to drive this innovation forward.”
Vitol Bahrain EC has a long-standing presence in Uganda's downstream sector.
The companies will explore capital investments to upgrade and diversify production. (Image source: Adobe Stock)
The acoustic MP-FWI imaging implementation has demonstrated significant uplifts. (Image source: DUG)
Technological advancements in geoscience are often incremental—small steps that help refine our ability to understand the subsurface. But occasionally, we witness a genuine leap. DUG Technology’s Chief Geophysicist, Tom Rayment, considers the impact of elastic MP-FWI imaging and asks, "Is traditional seismic processing finally a thing of the past?"
For the past century, seismic data has been an invaluable tool for detecting hydrocarbons. Although methods have become more sophisticated, the fundamental workflow for turning acquired data into interpretable products largely remains the same. The advent of elastic multi-parameter full waveform inversion (MP-FWI) imaging represents a significant shift away from the traditional approach.
The acoustic MP-FWI imaging implementation has demonstrated significant uplifts without needing conventional time-processing, model-building, or depth-migration techniques. Elastic MP-FWI imaging is a further step-change, also deriving rock properties and effectively rendering the amplitude variation with angle (AVA) inversion workflow redundant. The approach will soon make conventional workflows obsolete, if it hasn't already.
Despite this monumental leap, the technology is still young, with ample room for more progress. Most FWI implementations use a single component of the acquired data (hydrophone for marine, vertical geophone/accelerometer for land). However, additional components offer complementary information that can further constrain results. Recent developments show that two-component towed streamer and ocean-bottom seismic MP-FWI imaging can further improve results and accelerate convergence.
The logical next step is to include horizontal components. Shear waves provide valuable subsurface information, especially in areas of strong P-wave absorption like gas bodies. Recent DUG projects are already demonstrating that the benefits of converted-wave processing can be realised with elastic MP-FWI imaging. Furthermore, on land, exploiting shear waves in the form of ground roll is now viable. What was once noise is now a useful signal, inverted via elastic FWI to provide high-resolution shear-wave-velocity models. Capturing near-surface complexity is crucial for successfully illuminating deeper targets.
Another benefit is the seamless integration of expertise. Processing, imaging, and quantitative interpretation geophysicists can now work simultaneously on a project, abandoning the siloed conventional workflows. Closer collaboration fosters better understanding, which translates to optimal results. This will soon extend beyond AVA inversion into reservoir characterisation and modelling. Elastic MP-FWI imaging will produce a suite of outputs, providing a rich model space for reservoir engineers to make probabilistic predictions that honour both seismic and well data.
This technological leap was first conceived by the FWI pioneers in the 1980s. Its reality today is thanks to the skills of research and development teams and modern high performance computing. This essential work continues in earnest at DUG; as the technology evolves, it will continue to extend what is possible with seismic data, ultimately allowing the industry to make better, faster decisions.
The new pumps integrate modern sensor technology and proprietary motor control. (Image source: KNG)
The Goktepe field will be connected to Phase 3 FPO. (Image source: Subsea7)
Oil and gas operations in the Middle East span harsh deserts, sprawling refineries and high-risk offshore environments. (Image source: Adobe Stock)
In the oil and gas industry, where every second counts and every decision impacts profitability and safety, robust security is not just a luxury – it's a necessity
From protecting critical assets to safeguarding human lives, security systems must meet the highest standards of reliability and performance.
Pelco, a leader in video security, is uniquely positioned to address the challenges faced by oil and gas companies in the Middle East, offering a fresh perspective on how to optimise security systems seamlessly. With our upcoming online event, we invite you to explore how Pelco can help tackle worker safety, asset protection and operational efficiency in this complex industry.
Addressing oil and gas challenges head-on
Oil and gas operations in the Middle East span harsh deserts, sprawling refineries and high-risk offshore environments. Physical, environmental and digital threats are converging, and security systems must evolve to meet these overlapping demands. Our upcoming online event will focus on three critical areas where Pelco's expertise can make a difference:
1. Improve worker safety and HSE compliance
Ensuring worker safety is both a moral responsibility and a regulatory imperative. Health, Safety and Environmental (HSE) compliance is a top priority for oil and gas operations. Pelco's advanced portfolio is designed to help you meet these standards.
Edge-based analytics and intelligent video security can be valuable tools in supporting site safety. These systems can help detect safety incidents, such as slips or falls, especially in areas where oily surfaces, heat or dust create additional hazards. When incidents occur in remote areas, automated detection can prompt faster intervention, thereby closing the gap between the event and the response.
Personal Protective Equipment (PPE) compliance is another key safety concern. High temperatures in the Middle East can lead to discomfort, and in some cases, workers may be tempted to remove protective gear, such as hard hats or vests, for temporary relief. In this case, AI-enabled video analytics can help identify instances of non-compliance, enabling safety teams to address the issue before it becomes a liability.
Zone-based behavioural analytics can help detect when someone enters a restricted or hazardous area or remains in a dangerous zone longer than necessary. For example, loitering detection near flare stacks or storage tanks can support situational awareness and proactive incident mitigation.
2. Improve security and asset protection
From refineries in the desert to offshore rigs in corrosive marine environments, your assets operate under pressure, so your security systems must withstand these harsh conditions. In areas where explosive gases or dust particles may be present, even basic equipment can pose risks. That’s why choosing video solutions built for hazardous environments is critical.
ExSite Enhanced cameras, featuring 316L stainless steel construction and certifications such as ATEX and IECEx, are designed for use in hazardous atmospheres. Whether it’s observing pipeline manifolds, wellheads or chemical storage areas, these systems deliver dependable performance in high-risk environments. In corrosive coastal locations, such as LNG terminals or offshore rigs, Pelco’s anti-corrosion models withstand salt spray, humidity and chemical exposure without compromising visibility.
For perimeter defence, long-range Silent Sentinel cameras give security teams early warning of approaching threats, detecting vehicles, vessels or drones from kilometres away in fog, darkness or dust. These systems are especially valuable for remote desert pipelines or unstaffed offshore installations, where rapid detection is critical to prevent disruptions.
3. Minimise downtime and maximise uptime
Every minute of downtime impacts revenue. For oil and gas operations, the cost of unplanned outages is measured in millions of dollars. With Pelco, your video security can become an operational asset.
Radiometric thermal cameras can detect overheating in transformers, compressors and electrical panels, allowing teams to take action before equipment failure occurs. At the same time, Pelco’s camera image health analytics help ensure your video infrastructure is always performing at its best. Our cameras automatically detect issues such as lens obstructions, misalignment or tampering, reducing the need for manual inspections and helping ensure your security coverage is always clear, optimised and ready when it matters most.
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We invite you to join our upcoming online event, where industry leaders and Pelco experts will dive deeper into these challenges and solutions. Together, we'll explore how Pelco can be the missing ingredient to supercharge your security and drive operational excellence in the Middle East oil and gas sector.
Don't miss this opportunity to gain actionable insights and position your operations for success. Register now and discover how Pelco can transform your approach to security.
Competence is a must for high-risk tasks. (Image source: Adobe Stock)
The event will address the security challenges in the Middle East oil and gas sector, and how Pelco solutions can help.
Progress has been reported in developing action plans to reduce methane emissions and end routine flaring. (Image source: Adobe Stock)
Coinciding with COP30, significant progress has been reported in driving forward the aims of the Oil & Gas Decarbonization Charter (OGDC) launched at COP28
The Oil & Gas Decarbonization Charter (OGDC), a global coalition of leading energy companies championed by the CEOs of ADNOC, Aramco, and TotalEnergies and supported by the Oil and Gas Climate Initiative (OGCI), highlights expanded reporting coverage, strengthened action plans for emissions reduction and enhanced collaboration to accelerate industry decarbonisation in its 2025 Status Report: Implementing Action.
The Charter now brings together 55 signatories operating across more than 100 countries, representing around 40% of global oil production. Signatories invested approximately US$32bn in low-carbon solutions including renewables, carbon capture, hydrogen and low-carbon fuels in 2024.
This year, for the first time, the companies shared emissions data based on the OGCI Reporting Framework, laying the foundation for consistent reporting across 55 companies. 50 of the 55 signatories submitted data for this year’s report, covering 98% of OGDC operated production, most of which has received third-party assurance.
Forty-two signatories have now set interim Scope 1 and 2 emissions reductions ambitions for 2030, and 36 have developed corresponding action plans, reflecting tangible progress since the Charter’s 2024 Baseline Report, with six more companies sharing interim ambitions and seven more developing corresponding action plans on methane and flaring.
Extensive collaboration programme
An extensive collaboration programme is underway, with a focus on methane, flaring and reporting. TotalEnergies for example is sharing its AUSEA technology with several national oil companies to strengthen methane detection and measurement. Peer-to-peer exchanges, regional partnerships and technical workshops have strengthened capacities, while engagement with OGCI, the United Nations Environment Programme, the World Bank and many others, are helping scale practical solutions. At the company level, OGDC is helping to embed tailored, industry-specific training programmes.
Dr Sultan Ahmed Al Jaber, managing director, Group CEO of ADNOC, COP28 president and OGDC CEO Champion, said, “Two years ago, at COP28 we came together to create the world’s first truly industry-wide coalition to decarbonise at scale. Together, we are turning the Charter’s words into action by delivering tangible progress, scaling innovation and reporting transparently against our shared commitments.”
Patrick Pouyanné, chairman and CEO of TotalEnergies and OGDC CEO Champion, added, “OGDC is about action and collective delivery. This year we moved from baseline to implementation, with almost all signatories reporting data that covers 98% of operated production and more companies setting 2030 targets backed by plans. This reflects that progress starts with what we measure and a shared reality that this is a journey where we advance faster together. Our focus now is clear. We must cut methane, end routine flaring and report progress consistently. We invite all IOCs and NOCs to join and show measurable results by the next COP.”
Bjørn Otto Sverdrup, head of the OGDC Secretariat, said, “With OGDC, we have established a platform for companies willing to take action and collaborate across North, South, East, West, to share best practices and accelerate decarbonisation – particularly towards reducing methane and zero flaring by 2030.”
“We are encouraged by the progress made, and we look forward to the work ahead.”
At COP30, TotalEnergies announced a US$100mn commitment to Climate Investments Venture Strategy funds, which supports technologies that cut emissions across the oil and gas value chain. Climate Investments (CI) is an OGDC Partner.
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The fossil fueld sector is responsible for approximately one third of total global methane emissions. (Image source: Adobe Stock)
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