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Iraq has agreed contract terms with bp for the redevelopment of oil fields at Kirkuk, with work expected to begin in 2025

The deal will see bp invest in various Kirkuk fields, providing oil, gas, power and water rehabilitation work, with the potential for investment in exploration too.

The agreement — subject to final government ratification — is for an initial phase and includes production of more than three billion barrels of oil equivalent (boe). It includes the Baba and Avanah domes of the Kirkuk oil field and three adjacent fields – Bai Hassan, Jambur and Khabbaz – which are currently operated by the North Oil Company (NOC).

In a statement, bp said that the “wider resource opportunity” across the contract and surrounding area is up to 20 billion boe. The value of the work is expected to be worth in the region of US$25bn over the contract period, according to news agency Reuters.

“This agreement builds on our longstanding and strategic relationship with the Iraq government and delivers access to a material new resource opportunity, within one of the world’s most prolific hydrocarbon provinces,” said bp executive vice president William Lin.

The news comes after bp announced that it would ramp up oil and gas production, and scale back renewables investments, as part of a revised growth strategy focusing more on hydrocarbons.

Under the terms of the agreement, bp’s remuneration will be linked to incremental production volumes, price and costs.It will also be able to book a share of production and reserves proportionate to the fees it earns for helping to increase production.

New operator

The intention is to to set up a new operator, initially an unincorporated organisation comprising predominantly of personnel from NOC and North Gas Company (NGC), with secondees from bp. This will take over operations at Kirkuk from NOC, although bp said it later expects to form a standalone incorporated joint venture to hold its interests in the operator. Its first priority will be to stabilise and grow production, with work set to include a drilling programme, the rehabilitation of existing wells and facilities, and the construction of new infrastructure, including gas expansion projects.

bp said the investment will bring opportunity and growth to the Kirkuk region, as well as improving supply chain capability alongside job creation.

“It will enable us to bring our experience of managing giant fields to realise the potential of this important asset for Iraq, working alongside and in close partnership with NOC and NGC,” added Lin. “This opportunity is fully in line with our priority of pursuing new growth opportunities for bp as we strengthen and high-grade our portfolio across the world.”

The deal follows a memorandum of understanding signed by bp and Iraq in July 2024, of which technical terms were agreed in December and the majority of commercial terms in January.

bp has a long history at Kirkuk, supporting NOC and the Iraq government on technical studies between 2013 and 2019  to explore the potential for redevelopment. It was also a member of the consortium of firms that discovered oil at Kirkuk in the 1920s.

Middle East energy titans have called for a more realistic energy approach at CERAWeek 2025 in Houston

In a keynote address, Aramco president & CEO Amin H. Nasser highlighted the risks of current energy transition planning, and stressed the urgent requirement for a new global energy model.

“The greatest transition fiction was that conventional energy could be almost entirely replaced, virtually overnight… Hydrocarbons still provide over 80% of primary energy in the US, almost 90% in China, and even in the EU it is more than 70%… New sources add to the energy mix and complement existing sources. They do not replace them... New sources cannot even meet the growth in demand, while the proven sources needed to fill the gap are demonised and discarded. It is a fast track to dystopia, not utopia.”

Investment in all sources is needed, he said, with new and alternative energy sources complementing rather than replacing conventional energy, in a model that serves the needs of developed and developing nations alike.
“The future of energy is not only about sustainability. Security and affordability must share the stage. With all energy sources working in harmony as one team, delivering real results.”

Echoing this message, His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC managing director and group CEO said that he was glad to address the event at a time when “energy realism is taking centre stage”, highlighting the UAE’s pragmatic approach which focuses on “market realities rather than unrealistic mandates”, and calling for “pragmatic actions and policies that are pro-growth, pro-investment, pro-energy and pro-people.”

“We need every energy option available. An ‘and-and’ approach to meet rapidly growing energy needs.

“We know that by 2035, there will be almost nine billion people on this planet. In line with this growth, oil demand will increase from 103 to at least 109 million bpd. LNG and chemicals will expand by over 40% and total electricity demand will surge from 9,000GW to 15,000GW, which is a staggering 70% increase. We will need more LNG, more low-carbon oil, more nuclear and more commercially-viable renewables to meet all this demand.”

AI energy requirements

This lesson has been thrown into sharp focus by the rise of AI and its energy requirements.

“Applications like ChatGPT use 10 times as much energy as a simple Google search and are growing exponentially," said Dr Al Jaber. "By 2030, in the US alone, data centre power demand is expected to triple, accounting for more than 10% of US electricity use.

“You cannot scale AI without access to energy. Simply put, the true cost of AI is not just in code, it’s in kilowatts. The race for AI supremacy is essentially an energy play.”

CERA Week also heard from IEA chief Dr Fatih Birol who, in an about turn from the IEA’s earlier position that there should be no new investment in oil gas and coal in order to meet climate targets, highlighted the need for new oil and gas investments to offset the decline in existing fields.

While bp CEO Murray Auchincloss expanded on the company’s strategic reset, which will see it boost oil and gas investment and cut investment in renewables in a bid to maximise returns and value for shareholders. The company plans to ramp up oil and gas investment to US$10 bn a year and grow production to 2.3–2.5mn bpd in 2030, targeting 10 new major projects to start up by end 2027, and a further 8–10 by end 2030.

The US and the Middle East will be core areas for growth, he said.

“We’re back to our roots in terms of exploration, expanding in the UAE, Iraq, Libya and Oman.”

As the world pivots towards a low-carbon future, the petrochemical industry finds itself at a crossroads, balancing growth prospects with evolving regulatory and sustainability challenges

The global energy transition is reshaping industries, compelling them to integrate clean energy solutions alongside their continued reliance on fossil fuels. While much of the focus has been on the deceleration of oil and gas consumption as primary energy sources, petrochemicals remain a critical segment with sustained demand projected well into the coming decades.

This sector, heavily dependent on fossil fuel-based feedstocks, produces essential chemicals that form the backbone of numerous industries, including plastics, fertilizers, and pharmaceuticals. Unlike transportation fuels, whose consumption forecasts have fluctuated, petrochemicals are expected to witness steady demand with fewer disruptions. The International Energy Agency (IEA) projects that petrochemicals will account for more than a third of oil demand growth by 2030, primarily driven by rising consumption in developing economies. In India, for example, demand for key petrochemicals such as ethylene and propylene is expected to increase two- to three-fold over the next two decades, fueled by urbanisation, industrial expansion, and the drive for decarbonisation.

Complex sustainability imperatives

However, this growth trajectory exists alongside increasing scrutiny of the industry’s environmental footprint. Governments and regulatory bodies worldwide are tightening climate policies, imposing restrictions on single-use plastics, and advancing circular economy initiatives. As a result, petrochemical producers must navigate complex sustainability imperatives while maintaining competitiveness.

The environmental impact of petrochemical production has become a focal point for policymakers, investors, and consumers. The industry accounts for approximately 18% of global industrial carbon emissions, with energy-intensive processes such as refining and steam cracking being major contributors. Key challenges include:
• Regulatory pressures: Carbon pricing mechanisms, plastic bans, and stricter emissions controls are being implemented globally, increasing production costs and pressuring profit margins.
• Circular economy and recycling: Advances in chemical recycling, biodegradable alternatives, and closed-loop manufacturing systems threaten to reduce reliance on virgin petrochemical feedstocks, reshaping traditional demand patterns.
• Investor sentiment: ESG-focused investment strategies are compelling oil majors and petrochemical producers to present credible decarbonisation roadmaps, with capital allocation increasingly favouring companies with sustainable practices.

To ensure long-term viability, petrochemical producers are exploring multiple strategic pathways:
• Feedstock diversification: Investments in bio-based and recycled feedstocks are gaining traction as companies seek to lower emissions and align with sustainability goals.
• Carbon capture and utilisation (CCU): The integration of CCU technologies is emerging as a key solution to mitigate emissions, though economic feasibility remains a challenge.
• Advanced materials innovation: Research into high-performance polymers, biodegradable plastics, and alternative chemicals is accelerating, offering new avenues for growth beyond conventional petrochemicals.
• Integration with renewable energy: Shifting production facilities towards renewable power sources and hydrogen-based processes is becoming a priority for reducing the sector’s carbon footprint.

The petrochemical industry stands at a pivotal juncture, balancing robust demand with the imperative to adapt to a rapidly evolving regulatory and sustainability landscape. While traditional growth drivers remain intact, companies that embrace innovation, diversify feedstocks, and integrate low-carbon solutions will emerge as industry leaders. The coming decade will serve as a litmus test for the sector’s resilience, ultimately shaping its role in a decarbonising world.

This article is authored by Synergy Consulting IFA.

Enteq Technologies has launched SABER Vertical, an advanced drilling solution for vertical and top-hole drilling particularly suited to the Middle East and Africa market

SABER Vertical builds on the existing advantages of Enteq’s directional drilling rotary steerable, field-proven SABER Tool (Steer-At-Bit Enteq Rotary Tool) to vertical drilling, offering a low-service requirement and modular design that minimises both equipment needs and overall costs.

In the Middle East and Africa, vertical wells are often drilled in remote, challenging environments, where traditional methods can be costly and logistically complex. SABER Vertical is engineered to meet these demands, providing operators with enhanced accuracy, control, and wellbore stability, while delivering a lower total cost of ownership compared to existing systems.

The modular design enables adaptability to multiple hole sizes, reducing equipment requirements and enhancing operational flexibility. Its optimised wellbore stability improves drilling accuracy and control, ensuring greater precision throughout the process. The solution is also low-risk and can be deployed globally in a variety of environments, making it a practical and scalable option for operators worldwide.

Andrew Law, CEO at Enteq, said, "SABER Vertical is the result of listening to our customers and understanding the unique challenges of the market. It is inevitable that incumbent solutions for these applications are expensive due to the required large tool size, limiting commercially suitable options available to the market. With its compact design and cost-effective nature, SABER Vertical delivers a much-needed alternative, helping operators improve efficiency without compromising on performance."

Oil Review Middle East hosted a very well-attended webinar on 20 November on the future of offshore operations, in association with SAFEEN Group, part of AD Ports Group

The webinar explored the latest trends and challenges in the rapidly evolving world of offshore operations, focusing on groundbreaking innovations that are driving sustainable and efficient practices. In particular, it highlighted SAFEEN Green – a revolutionary unmanned surface vessel (USV), setting new benchmarks for sustainable and efficient maritime operations.

Erik Tonne, MD and head of Market Analysis at Clarksons, gave an overview of the offshore market, highlighting that current oil price levels are supportive for offshore developments, and global offshore capex is increasing strongly. The Middle East region will see significant capex increase over the coming years, with the need for rigs and vessels likely to remain high. Offshore wind is also seeing increased spending. Global rig activity is growing, while the subsea EPC backlog has never been higher, with regional EPC contracts seeing very high activity. Tonne forecast that demand for subsea vessels and other support vessels will continue to increase.

Tareq Abdulla Al Marzooqi, CEO SAFEEN Subsea, AD Ports Group, introduced SAFEEN Subsea, a joint venture with NMDC, which offers reliable and innovative survey, subsea and offshore solutions to support major offshore and EPC projects across the region. He highlighted the company’s commitment to sustainability, internationalisation and local content, and how it is a hub for innovations and new ideas, taking conceptual designs and converting them to commercial projects. A key project is SAFEEN Green, which offers an optimised inspection and survey solution.

Tareq Al Marzooqi and Ronald J Kraft, CTO, Sovereign Global Solutions ME and RC Dock Engineering BV. outlined the benefits and capabilities of SAFEEN Green as compared with commercial vessels, in terms of safety, efficiency, profitability and sustainability. It is 30-40% more efficient through the use of advanced technologies, provides a safer working environment given it is operated 24/7 remotely from a control centre, and offers swappable payload capacity. Vessels are containerised and can be transported easily to other regions. In terms of fuel consumption, the vessel is environment-friendly and highly competitive, reducing emissions by 90% compared with conventional vessels, with the ability to operate on 100% biofuel.

As for future plans, SAFEEN Green 2.0 is under development, which will be capable of carrying two inspection work-class ROVs simultaneously. A priority will be to collect data to create functional AI models for vessels and operations, with the first agent-controlled payload systems in prospect by around 2027.

To view the webinar, go to https://alaincharles.zoom.us/rec/share/mNHjZhAhQzn1sPzmFWZCgrq7_SckfLRcSb4w81I7aVlokO9sgHM_zVeOqgN3DgJS.bO4OIRqNeFP09SPu?startTime=1732095689000

Fadi Al-Shihabi, partner, sustainability solutions leader, KPMG Middle East discusses how the Gulf states are turning the fossil fuel legacy into a blueprint for a circular economy

The World Meteorological Association has predicted that global temperature is likely to exceed 1.5°C above pre-industrial levels temporarily in the next five years. Amid rising global investments in renewable energy, governments are strengthening their climate action plans as they target urgent implementation over the next few years.

In the GCC region, Gulf nations are embracing a forward-thinking policy to address environmental challenges, setting a global benchmark for how circular economy practices can drive sustainable economic growth. Their National Visions – including Saudi Vision 2030, UAE Green Agenda 2030, Oman Vision 2040 and Qatar National Vision 2030 – all envisage advancing sustainable industrial development, emphasising energy efficiency, waste reduction and renewable resources.

Transforming manufacturing is the key to reducing waste and energy consumption, promoting responsible consumption and reducing environmental impact. In this context, the evolution of the Gulf's manufacturing sector is a testament to the region's adaptability and foresight. We are also seeing the enhancement of value chains in the region through the production of more raw materials locally, fostering cross-sector synergies to boost industrial localisation efforts. By leveraging their expertise in energy production and their significant financial resources, GCC nations are not only keeping pace with global sustainability trends but are setting new standards in socio-economic development.

Making the circular economy a reality in the GCC

The GCC is steering toward zero landfill as part of its ambitious net-zero targets. Key efforts include waste-to-energy projects and increased recycling, both of which are reshaping the manufacturing sector, by promoting green, circular economy practices and advancing sustainable development across the region.

Additionally, research continues to drive innovation, particularly in advanced waste conversion technologies. The UAE introduced a circular economy policy in 2021, which implements resource efficiency, minimises waste, and fosters economic value from materials traditionally considered waste. Furthermore, Saudi Arabia's bold recycling initiative aims to recycle 95% of its waste, contributing US$31.99bn to GDP, creating 100,000 jobs, and positioning the Kingdom as a global leader in sustainability by 2040 through advanced waste management strategies. While Qatar's Ministry of Municipality plans to build an engineered landfill in Al Khor, adhering to the highest international standards, and operating a plant for recycling materials.

In Saudi Arabia, Clorox's Dammam and Jeddah plants have already achieved 100% zero waste to landfill. Additionally, KAUST startup Edama Organic Solutions has opened the Kingdom's first organic waste recycling facility at the KAUST Research. Oman too is launching its first Waste-to-Energy (WTE) project, which is expected to cut landfill carbon emissions by 50 million tons over 35 years.

Each of these projects exemplify the shift to a circular economy, with resource efficiency principles woven into national economic and environmental strategies. The approach goes beyond just waste reduction, aiming to extract value from it instead. An example is the ambitious e-waste recycling project in Salalah, the largest in Oman. This initiative tackles the rising issue of electronic waste while creating new economic opportunities, solidifying Oman’s position as a leader in sustainable waste management and resource efficiency.

Overcoming obstacles

There is no doubt that the shift towards sustainability is opening new markets and driving demand for eco-friendly products and services. Companies that prioritise sustainability are finding themselves at a competitive advantage, fostering both environmentally conscious consumers and investors.

Despite notable progress, several hurdles still impede the full implementation of effective waste management systems. With robust regulations still being in the works, and high initial costs, particularly for advanced technologies, remain a significant barrier. Additionally, on a wider scale, limited recycling infrastructure restricts broader adoption.

Additionally, greater public awareness and engagement are needed to drive meaningful behavioral change. These challenges also offer opportunities for innovation, investment, and policy reform. By addressing these issues, the region could unlock more cost-effective solutions, foster new partnerships, and pave the way for sustainable and efficient waste management practices.

Gulf nations are also tapping into their energy production expertise to drive waste-to-energy initiatives, marking a decisive move toward sustainable development. This niche area of expertise that had traditionally been utilised in oil wealthy nations but has been rare to find globally, is an essential piece of the puzzle to extend the reach of renewable energy and its accessibility.

The road ahead

The road to a circular economy and waste reduction is set to positively impact the employment market, as the Middle East invests around US$1 trillion in clean energy over the next decade, marking a transformative shift in the region’s economic landscape. This substantial investment is projected to generate around 300,000 new jobs by 2030 and inject an additional US$100bn into the regional economy, underscoring the Gulf's growing commitment to sustainable growth and energy diversification.

As we look to the future, the Gulf region's journey from oil dependency to green innovation offers valuable lessons for other resource-dependent economies within the region. It demonstrates that with vision, commitment, and strategic investment, it's possible to turn the legacy of fossil fuels into a blueprint for a sustainable, diversified economy.

The sands are shifting in the Gulf, and as they do, they are revealing a green oasis of opportunity – one that promises a more sustainable and prosperous future for the region and the world.
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