In The Spotlight
Libya’s National Oil Company (NOC) has reported three new discoveries
Firstly, the NOC and Eni North Africa, the operator of Contract 4/16, have made a new discovery in offshore western LIbya, around 95 km from the coast, following successful drilling of the exploration well J1-4/16.
Drilling was completed to a final depth of 10,458 feet. Tests of the Metlawi reservoir produced flow rates across two tests: 14 million cubic feet per day (MMcf/d) through a 32/64-inch choke in the first test, and 24 MMcf/d through a 62/64-inch choke in the second.
This well is the final one in fulfilling nine contractual obligations for offshore Contract Block D, as stipulated in the agreement signed in June 2008.
The NOC and Repsol Libya Branch (REMSA) have reported a new oil discovery following the drilling of the exploratory well “J1-4/130” in Contract Area “131/130” in the Murzuq Basin, around 800 km south of Tripoli. The well reached a final depth of 4,325 feet and is producing an average of 763 barrels of oil per day from the Mummiyat Formation.
This well is the fifth of the company’s eight contractual commitments under the Exploration and Production Sharing Agreement (EPSA) signed between the NOC and REMSA in 2008.
The NOC and Sonatrach Petroleum Exploration and Production Corporation Libya Branch (SIPEX), the operator of Contract Area 95/96 in Libya’s Ghadames Basin, have made a new oil and gas discovery following the drilling of the A1-69/02 exploration well, located 70 km from the Wafa field.
The well was completed to a final depth of 8,440 feet and is delivering production rates of 13 million cubic feet of gas and 327 barrels of condensate per day from the Awynat Wanin and Awyn Kaza formations.
This is the sixth well drilled by Sonatrach out of eight planned under the Exploration and Production Sharing Agreement (EPSA) signed in May 2008 between NOC and Sonatrach.
As reported in the Libya Herald, the chairman of the NOC, Masoud Suleiman, affirmed that the new discoveries made in the Murzuq and Ghadames basins, as well as the offshore area, reflect the significant potential of Libya’s oil and gas sector and support the NOC’s strategic directions in developing its hydrocarbon resources. He stressed the NOC’s commitment to continuing exploration activity to increase reserves and production.
The discoveries follow two earlier discoveries by Eni reported in mid-March, together estimated at around one trillion cubic feet, approximately 85 km off the coast, and 16 km south of the Bahr Essalam gas field, Libya’s largest offshore field. These discoveries are projected to add about 130 million cubic feet of gas per day, boosting the NOC’s capacity to meet both domestic and international market demands and helping to address any gas supply shortages.
“This discovery highlights the promising potential of Libya’s offshore basins and continues the NOC’s efforts to boost production rates and develop the country’s natural resources,” the NOC commented.
LNG trains, refineries, fuel terminals and critical gas-to-liquids facilities across the region have incurred damage. (Image source: Adobe Stock).
Repair and restoration costs of Middle East war-damaged infrastructure are likely to top US$25bn, and could rise further, according to Rystad Energy assessments
Particularly hard hit has been Qatar’s Ras Laffan Industrial City, where the destruction of LNG trains has triggered force majeure and a 17% capacity reduction, equivalent to about 12.8 million tonnes per annum (Mtpa). A full recovery could take up to five years, given that the gas turbines required to power LNG main refrigeration compressors are supplied by only three original equipment manufacturers (OEM) globally, all of which have production backlogs.
Bahrain has also been badly impacted, says Rystad. BapcoEnergies’ Sitra Refinery was struck twice, damaging two crude distillation units (CDU) and a tank farm, with force majeure declared across group operations. The facility had just been completed under its US$7bn modernisation program in December 2025. Restoring the units could require international contractors to be re-mobilised at considerable cost, as the damaged assets had only recently come online.
There were also disruptions in other countries, including the UAE, Kuwait, Iraq and Saudi Arabia. It is noteworthy that Saudi Aramco was able to swiftly restart operations at Ras Tanura, where maintenance teams were already onsite for a planned turnaround when debris fell inside the perimeter, reflecting its domestic capability.
The speed of recovery in the region will depend on execution capacity and capital deployment timing, as repair spending ramps up. Operators are likely to prioritise restoring existing fields, creating demand for EPC contractors and OEMs, especially those with regional experience and existing agreements with national oil companies. Near-term work will most likely focus on inspection, engineering and site preparation, followed by equipment replacement and construction as procurement constraints ease. In Iran, domestic and East Asian companies will likely carry out most of the repair work given continued Western sanctions, which could be slower and more expensive.
“The Gulf region’s recovery will be defined less by financial capital and more by structural constraints,” said Audun Martinsen, head of Supply Chain Research at Rystad Energy.
“While some assets may be restored within months, others could remain offline for years. Beyond the status of the Strait of Hormuz, every day of damaged or shut-in infrastructure pushes pre-war production capacity further out of reach. Iran’s South Pars offshore field and Qatar’s Ras Laffan facility stand out as particularly concerning cases. The scale of damage and long lead times for critical equipment could result in slow recovery. Urgent repairs will have to take precedence in place of planned expansion.”
At CERAWeek, taking place in Houston from 23-27 March, Shaikh Nawaf S. Al-Sabah, deputy chairman and CEO of Kuwait Petroleum Corporation (KPC) reaffirmed progress on key strategic projects, including Project Seif and Project Peregrine, despite the current situation
Project Seif involves the development of Kuwait’s recently-discovered offshore fields, in which Kuwait is inviting IOCs to participate, and will ensure “additional production resilience and capacity to help meet production targets in the future,” Shaikh Al-Sabah said in his virtual address. Kuwait aims to lift production capacity to 4mn bpd by 2035 from around 2.5mn bpd currently.
“This is something that is of paramount importance in Kuwait, it is a project with real international scope and we’re moving ahead with this,” he confirmed.
“At the same time, on a shorter timescale, we have Project Peregrine, which is the project by which we lease and lease back our pipelines,” he continued. “This will be the largest single foreign investment in Kuwait.”
He added that the principal partners and investors had confirmed that they are still keen for the project to go ahead, and to continue to participate.
“This is a recognition that Kuwait remains open for business through these attacks,” he said, in reference to Iran’s drone attacks on the country's critical infrastructure facilities.
Shaikh Al-Sabah highlighted the global implications of any disruptions in the Strait of Hormuz, noting its “vital concern” to the world economy, with around 75% of Asia’s oil and 83% of its LNG passing through it.
“It’s a domino effect,” he said. ”The costs of this war don’t stay in geographical lines in this region, they extend all the way through the supply chain.” He noted the impact on petrochemical supply chains and even food security, given the use of polyethylene in food packaging. He added that most of the world’s urea fertiliser comes from the Gulf.
Echoing other Gulf energy leaders, he said, “We are outraged by this attack on us. These attacks are no just on the Gulf, but are holding the world’s economy hostage. This is an attack on our sovereignty in Kuwait, on our people, and on our facilities. This act is unjustified and illegal by all standards."
Libya’s National Oil Company (NOC) has reported three new discoveries
Firstly, the NOC and Eni North Africa, the operator of Contract 4/16, have made a new discovery in offshore western LIbya, around 95 km from the coast, following successful drilling of the exploration well J1-4/16.
Drilling was completed to a final depth of 10,458 feet. Tests of the Metlawi reservoir produced flow rates across two tests: 14 million cubic feet per day (MMcf/d) through a 32/64-inch choke in the first test, and 24 MMcf/d through a 62/64-inch choke in the second.
This well is the final one in fulfilling nine contractual obligations for offshore Contract Block D, as stipulated in the agreement signed in June 2008.
The NOC and Repsol Libya Branch (REMSA) have reported a new oil discovery following the drilling of the exploratory well “J1-4/130” in Contract Area “131/130” in the Murzuq Basin, around 800 km south of Tripoli. The well reached a final depth of 4,325 feet and is producing an average of 763 barrels of oil per day from the Mummiyat Formation.
This well is the fifth of the company’s eight contractual commitments under the Exploration and Production Sharing Agreement (EPSA) signed between the NOC and REMSA in 2008.
The NOC and Sonatrach Petroleum Exploration and Production Corporation Libya Branch (SIPEX), the operator of Contract Area 95/96 in Libya’s Ghadames Basin, have made a new oil and gas discovery following the drilling of the A1-69/02 exploration well, located 70 km from the Wafa field.
The well was completed to a final depth of 8,440 feet and is delivering production rates of 13 million cubic feet of gas and 327 barrels of condensate per day from the Awynat Wanin and Awyn Kaza formations.
This is the sixth well drilled by Sonatrach out of eight planned under the Exploration and Production Sharing Agreement (EPSA) signed in May 2008 between NOC and Sonatrach.
As reported in the Libya Herald, the chairman of the NOC, Masoud Suleiman, affirmed that the new discoveries made in the Murzuq and Ghadames basins, as well as the offshore area, reflect the significant potential of Libya’s oil and gas sector and support the NOC’s strategic directions in developing its hydrocarbon resources. He stressed the NOC’s commitment to continuing exploration activity to increase reserves and production.
The discoveries follow two earlier discoveries by Eni reported in mid-March, together estimated at around one trillion cubic feet, approximately 85 km off the coast, and 16 km south of the Bahr Essalam gas field, Libya’s largest offshore field. These discoveries are projected to add about 130 million cubic feet of gas per day, boosting the NOC’s capacity to meet both domestic and international market demands and helping to address any gas supply shortages.
“This discovery highlights the promising potential of Libya’s offshore basins and continues the NOC’s efforts to boost production rates and develop the country’s natural resources,” the NOC commented.
Saudi Arabia’s Ministry of Energy has announced that full pumping capacity on the critical East-West pipeline has been restored and full production recovered at the Manifa oilfield following Iranian attacks, while work is still ongoing to restore full production capacity at the Khurais field
It was announced on 9 April that important energy facilities in the Kingdom have been subject to multiple attacks, including oil and gas production, transportation and refining facilities, as well as petrochemical facilities and the electricity sector in Riyadh, the Eastern Province and Yanbu Industrial City, resulting in one death and seven injured as well as the disruption of operations.
TotalEnergies reported that the SATORP refinery, a joint venture between TotalEnergies and Aramco in Jubail industrial City, was hit on the night of 7-8 April, causing damage to one of the refinery’s two processing trains. No casualties were reported, and the units were shut down as a safety precaution. An assessment of the consequences for the refinery’s operations is currently underway.
The East-West pipeline, which has a capacity of up to 7mn bpd has played a vital role in maintaining Saudi exports as an alternative route to passage through the Strait of Hormuz, bringing crude from processing facilities in the east of the country to the Yanbu export terminal on the Red Sea. The Iranian attack on the pipeline cut pumping capacity by 700,000 bpd, according to the Ministry of Energy.
The attacks on the Manifa and Khurais fields had resulted in a reduction in production of 300,000 bpd at each field.
“The quick recovery reflects the high operational resilience and crisis management efficiency of Saudi Aramco and the Kingdom’s energy ecosystem as a whole, thereby enhancing the reliability and continuity of supplies to local and global markets, and supporting the global economy,” the Ministry of Energy said.
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.”
The acquisition creates a comprehensive and industry-leading drilling automation portfolio. (Image source: Adobe Stock)
Halliburton is strengthening its drilling automation services offering with the acquisition of Sekal, a leader in advanced drilling automation solutions
The acquisition of Sekal, formerly a subsidiary of Sumitomo Corporation, combines Halliburton’s LOGIX automation and remote operations with Sekal’s advanced DrillTronics automation platform and services to deliver a comprehensive and industry-leading drilling automation portfolio. These solutions can also be combined with Halliburton’s LOGIX Automated Geosteering service, which combines automation, real-time intelligence and advanced geological modelling to optimise well placement, maximise recovery and improve operational efficiency. This integration supports seamless automated control and optimisation of drilling operations, integrating well placement, wellbore hydraulics, and rig operations in real time.
The Halliburton-Sekal automation solution is currently deployed across a number of projects worldwide and provides real-time advanced models of subsurface, wellbore fluid, and pressure systems, along with smart directional drilling tools and automated rig controls, thereby facilitating accurate drilling and well placement along with automated tripping operations and enabling a reduction of up to 25% in well delivery times.
"This acquisition rapidly expands our automation capabilities and delivers industry-leading digital solutions that lower well construction costs, increase recovery, and reduce operational risks for our customers. By bringing together our field-proven technologies, we unlock the full potential of digital well construction and set a new standard for automated drilling operations", said Jim Collins, vice president, Halliburton Sperry Drilling.
Jarle Vaag, Sekal CEO, added, "Joining Halliburton is a natural evolution for Sekal. The team at Sekal has worked closely with our clients providing our technology and services to the industry regardless of the service providers. While we will continue to support this market, the opportunity with the combined expertise of Halliburton and Sekal to advance our technical capability and accelerate the adoption of digitally integrated well construction will deliver a unique automation solution to our new and existing customers worldwide."
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.
Join us to discover the Pelco advantage
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.
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The Middle East and North Africa (MENA) is set to become the world’s largest hydrogen exporter by 2060, while maintaining a dominant position in global oil and gas markets, according to DNV’s Oil & Gas Decarbonization in the Gulf Region report
The report highlights how Gulf Cooperation Council (GCC) countries are cutting the emissions intensity of their core oil and gas production while continuing to play a central role in global energy supply, presenting a picture of a region approaching the energy transition from a position of confidence and capital strength. Reductions in emissions intensity are occurring alongside continued hydrocarbon production and investment across renewables, electrification, hydrogen, methane abatement, digitalization, and carbon capture.
Since 2005, the GCC has produced nearly 18% of global oil and gas, a share expected to increase as investment continues in low-cost, advantaged resources. As global energy demand increasingly shifts toward Asia, the region’s location and cost competitiveness strengthen its position as a preferred supplier. At the same time, decarbonization measures are becoming an integral part of long-term competitiveness.
“The global energy transition will not progress at the same pace across regions, nor will it follow a single pathway,” said Brice Le Gallo, vice-president & regional director for Southern Europe, MEA & LATAM, Energy Systems at DNV. “In the Middle East, oil and gas remain central to economic stability and global energy security. The key challenge is to reduce their emissions footprint while accelerating investment in the technologies needed for a lower-carbon energy system.”
Electrification is being used to cut Scope 2 emissions from pumps, compressors, and offshore facilities, through grid connections, renewable power, and hybrid solutions. These efforts are supported by energy-efficiency measures and the use of digital tools and artificial intelligence to optimise drilling, reservoir management, and asset operations, reducing energy intensity and emissions per barrel produced.
Methane reduction remains one of the most immediate and cost-effective options for lowering emissions. Across the GCC, routine flaring is planned to be phased out by 2030 and leak detection and repair (LDAR) programmes are increasingly standard. National oil companies are also aligning with international methane initiatives, enabling continued production growth while reducing methane intensity in line with national net-zero targets.
GCC countries are realigning domestic energy systems to reduce oil and gas use domestically and free up volumes for export and low-carbon fuel production. Growth in renewables, electrification of transport and buildings, and efficiency gains are driving this shift. Investment in downstream industries, petrochemicals, and low-carbon fuels is also changing export profiles, moving beyond crude oil toward higher-value and lower-carbon energy products.
With access to low-cost natural gas, strong solar resources, and established industrial and export infrastructure, the region is well placed to scale both low-carbon hydrogen (produced from natural gas with carbon capture) and renewable hydrogen produced through electrolysis. By 2060, the Middle-East and North Africa region is projected to produce around 19 million tonnes of hydrogen and 13 million tonnes of ammonia per year, exporting about 50%, mainly toward Europe and advanced Asian economies.
“Hydrogen, ammonia, and carbon capture are becoming core elements of the GCC’s energy export model,” said Jan Zschommler, market area manager for the Middle East, Energy Systems at DNV. “As emissions requirements tighten, access to international markets will increasingly depend on carbon intensity. Integrating hydrogen production with renewable power, carbon capture, and existing industrial clusters allows the region to remain competitive while meeting these requirements.”
Carbon capture, utilization and storage (CCUS) is also set to grow. In January 2026, the UAE's Supreme Council for Financial and Economic Affairs has introduced Carbon Capture Policy as a further commitment to meeting their carbon reduction targets. Captured CO₂ volumes (including CO₂ removal) are expected to reach around 250 million tonnes per year by 2060, equivalent to roughly 8% of regional energy-related and industrial emissions.
Bioenergy with carbon capture (BECCS) and direct air capture (DAC) combined are expected to remove around 81 million tonnes of CO₂ per year by 2060, helping to offset emissions from sectors that are more difficult to decarbonise.
The full report is available at https://www.dnv.com/energy-transition-outlook/oil-and-gas-decarbonization-in-the-gulf-region/
