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OMV has announced that its Essar well in Libya’s Sirte Basin is commercially viable, following the completion of technical and economic studies

The well is in the concession area C 103, where OMV holds a 12% interest.

Zueitina Oil Company will be responsible for developing the field, where studies indicate total recoverable resources of up to 43mn barrels of oil. Due to its proximity to existing production and processing facilities, the field can be developed quickly and brought on stream in a cost-efficient manner, OMV says.

OMV has a long history of exploration and production of oil and gas in North Africa, in close cooperation with local partners, and the region plays an important role in the company’s upstream growth strategy. Libya is a core focus, where the company has been active for around 50 years with a long-standing partnership with the NOC. At the end of 2024, the company resumed exploration activities in Libya after an interruption of more than ten years.

“The Essar discovery is a major milestone for OMV and our partners at the NOC. It confirms not only Libya’s considerable potential, but also the value of long-term partnerships, technical excellence, and our unwavering commitment on the ground. Strategic collaborations such as this are essential to providing the energy the world needs,” said Berislav Gašo, OMV executive vice president Energy.

Strong potential

The recent discovery is good news for Libya, and is a further indication of its energy potential. Libya holds Africa’s largest proven oil reserves and its fifth largest gas reserves. Libya’s oil production currently stands at around 1.4mn bpd, its highest level since 2013. Libya’s NOC is keen to revitalise the country’s oil and gas industry and aims to produce 1.6mn bpd by the end of 2026, rising to 2mn bpd in the medium term, seeing the participation of international companies as crucial to achieving its growth plans. Libya’s efforts to boost oil and gas production following years of civil war have met with considerable success. In recent developments, Eni, in partnership with the Libyan National Oil Corporation (NOC) through the Mellitah Oil & Gas joint venture, has started hydrocarbon production enabled by the Sabratha Compression Project, a strategic offshore development designed to boost gas output from the Bahr Essalam gas field, located around 100 km off the coast.

NOC has signed production sharing agreements recently with Spain’s Repsol, in partnership with the Turkish Petroleum Corporation (TPAO); and Eni, in partnership with QatarEnergy and MOL Group, with its partners, Repsol and Türkiye Petrolleri A. O. (TPAO). Five blocks were recently awarded in Libya’s recent bid round, its first in eighteen years, which attracted significant international interest.

The Middle East occupies a pivotal position in the global energy landscape, and any disruption on vital shipping lanes has a huge impact on international supply chains, as shown with the disruption to shipping in the Strait of Hormuz, through which at least 20% of global oil flows passed prior to the current crisis

This underscores the importance of developing alternative routes and strengthening regional infrastructure to keep the energy flowing.

The UAE is accelerating construction of a new oil pipeline to the port of Fujairah, the West-East pipeline, which is expected to begin operations next year. The UAE’s existing Habshan-Fujairah pipeline carries 1.8mn barrels bpd, but the new pipeline will significantly increase capacity. Meanwhile Saudi Arabia earlier this year expanded the capacity of the East-West pipeline, which has been critical in enabling the Kingdom to bypass the Strait of Hormuz and maintain oil exports.

Al Gharbia Pipe Company (AGPC), an Abu Dhabi–based producer of longitudinally submerged arc welded (LSAW) steel pipes, is contributing to the region’s energy security objectives with the supply of around 360,000 metres or 220,000 metric tons of LSAW steel pipes for a major oil pipeline project. The project is an alternative export pathway that enhances flexibility and reinforces the UAE's energy supply chain. The company's access to the UAE's ports on both the Arabian Gulf and the Gulf of Oman allow its steel plate imports and LSAW pipe exports to reach international destinations unimpeded.These multiple port options keep deliveries moving in the event of regional disruption.

"Resilient supply chains are essential for regional and global economies to mitigate disruption of passage along key trade routes," said Noritsugu Mifune, CEO of Al Gharbia Pipe Company. "Al Gharbia Pipe Company's advanced manufacturing and logistics capabilities help supply steel pipes for strategic pipeline networks. This helps strengthen reliability and security of energy flows across the region."

AGPC's AI-powered quality inspection and safety monitoring systems identify possible defects quickly and accurately and prevent workplace safety incidents. Combined with advanced automation and digital production technologies, these capabilities improve traceability, reduce operational risk and ensure that critical pipeline infrastructure meets the rigorous standards required by major energy transit projects, supporting the development of robust pipeline networks in the UAE and wider Middle East region that underpin both today's energy needs and long-term energy transition ambitions.

AGPC has also enhanced its precision manufacturing capabilities, expanding its maximum pipe wall thickness from 44.50 mm to 47.30 mm. According to Mifune, the production of thicker pipe walls is a significant technical achievement for the company due to the increased complexity associated with forming, welding, dimensional control, testing, and inspection of heavy-wall pipes.

AGPC's commitment to manufacturing excellence has led to it winning its second consecutive Impact Champion award at ADIPEC 2026. The award recognises exhibitors that demonstrate their role in strengthening energy systems through innovation, interactive technology, strategic messaging, and compelling visual storytelling.

As the Middle East navigates an increasingly complex operating environment, advanced, AI-enabled manufacturing technologies and multiple supply chain routes are helping ensure that critical pipeline assets meet the highest standards of performance and reliability, contributing to a stronger, safer and more reliable infrastructure that supports regional energy security.

TA’ZIZ, a joint venture between ADNOC and ADQ, has signed long-term agreements spanning offtake, feedstock and sales across its chemicals portfolio, valued at US$28.5bn (AED104.6bn)

Signed at the Make it in the Emirates Forum, the agreements, valued at US$28.5bn, secure both global offtake and reliable local feedstocks, allowing for large-scale chemical production within the UAE and reinforcing TA’ZIZ’s role in building a fully integrated domestic chemicals ecosystem. The deals include sale agreements with ADNOC and Proman for methanol; Emirates Global Aluminium (EGA) for caustic soda; Mitsubishi Corporation for ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda; Mitsui & Co. for EDC and caustic soda; Sanmar Group for EDC and VCM; Tricon for PVC, EDC and caustic soda; and Vinmar for EDC and polyvinyl chloride (PVC).

ADNOC Gas secured a 25-year feedstock agreement to supply natural gas to the TA'ZIZ methanol project valued at over $5 billion (AED18.4 billion). TA’ZIZ also agreed a 20 year salt supply agreement with Abu Dhabi based Sama Salt to support production at its PVC complex.

Mashal Saoud Al-Kindi, CEO of TA’ZIZ, said, “These long term agreements represent a defining milestone for TA’ZIZ and for the UAE’s industrial growth ambitions. By securing both global demand and reliable local feedstock, we are translating vision into delivery, anchoring world scale chemicals production, strengthening domestic value chains and creating enduring economic value, jobs and supply chain resilience for the UAE.”

Together, these agreements leverage local resources to secure a reliable and sustainable supply of critical raw materials, further strengthening domestic value chains and advancing the UAE’s industrial self sufficiency.

TA’ZIZ is a manufacturing, industrial services, logistics and utilities ecosystem that enables the production of transition fuels and new products across the chemicals value chain, supporting ADNOC’s ambition to become a top three global chemicals player as well as the UAE’s industrial development and economic diversification ambitions.

The TA’ZIZ Industrial Chemicals Zone is set to produce 4.7 million tonnes per annum (mtpa) of chemicals once construction is completed in 2028. This includes a 1 mtpa ammonia plant, a 1.8 mtpa methanol plant and 1.9 mtpa of marketable products from its integrated polyvinyl chloride (PVC) complex. The PVC complex, which produces PVC, ethylene dichloride (EDC), vinyl chloride monomer (VCM), and caustic soda, will be one of the world’s top three largest single site PVC complexes.

Also at the Make it at the Emirates Forum, TA’ZIZ and Alpha Dhabi Holding announced a strategic collaboration agreement for around US$10 bn (AED36.7bn) in capital investment in new industrial chemicals in the TA’ZIZ industrial chemicals ecosystem in Al Ruwais Industrial City, Al Dhafra region of Abu Dhabi.

The partnership could produce up to 14 new chemicals, delivering around 2.2mn tonnes per annum (mtpa) of additional chemical capacity in the TA’ZIZ industrial chemicals ecosystem in Al Ruwais Industrial City. The new chemicals, which include styrene and polystyrenes, acrylic acid and derivates, polyols, MDI, epoxy resins and linear alpha-olefins, are based on domestic demand and could substitute key products currently imported into the UAE, while strengthening local supply chain resilience. The partnership supports the UAE’s national industrial priorities, including the Make it in the Emirates (MIITE) initiative and the country’s industrial strategy, by strengthening domestic manufacturing capability and advancing self-sufficiency in strategically important chemical products.

Nayef Bou Chaaya, vice president for the Middle East, Turkey and Central Asia at industrial software company AVEVA, discusses the growing power demand from data centres, the evolution of AI deployment and how the CONNECT platform improves project delivery and reduces inefficiencies

Growing investment in AI infrastructure across Saudi Arabia and the UAE is expected to increase electricity consumption as energy companies accelerate digitalisation and expand production capacity. The rapid expansion of artificial intelligence data centres across the Middle East is driving demand for electricity, adding pressure on regional energy producers to increase capacity while improving efficiency and reducing emissions, according to AVEVA.

Bou Chaaya said the growing number of data centres being developed across the region, particularly in Saudi Arabia and Abu Dhabi, would reshape energy requirements over the coming years.

"Electricity is increasing, as we see, because of the data centres that are being built in the regions," Bou Chaaya said in an exclusive interview with Oil Review Middle East on the sidelines of ADIPEC 2026 in Abu Dhabi.

The increase in power demand comes as regional governments invest in AI infrastructure, cloud computing and digital technologies, creating additional requirements for reliable electricity supplies alongside existing industrial and commercial consumption.

Bou Chaaya expects conventional energy production to remain important, while renewable energy, natural gas and carbon capture technologies play an increasing role in meeting demand and reducing emissions. The challenge for energy producers will be to expand electricity generation while maintaining operational reliability, improving efficiency and supporting the transition towards lower-carbon energy sources.

For AVEVA, which provides industrial software to energy companies, the shift is creating opportunities to deploy digital technologies across power generation, oil and gas production and industrial infrastructure.

AI moves beyond pilot projects

While AI infrastructure is contributing to rising electricity demand, the technology is also becoming increasingly important in helping energy companies manage their operations.
Bou Chaaya said the Middle East's energy sector was moving beyond small-scale AI experiments towards large deployments capable of delivering measurable improvements in operational performance.

Predictive analytics, which uses artificial intelligence and machine learning to identify potential equipment failures before they occur, has emerged as one of the most mature applications.

Over the past two to three years, energy companies have moved from testing the technology on approximately 10 assets to implementations covering as many as 10,000, according to Bou Chaaya.

The technology allows operators to monitor equipment conditions, analyse historical performance and identify early warning signs of potential failures. By anticipating maintenance requirements, companies can prevent unexpected shutdowns, protect production levels and improve workplace safety. Reducing unplanned shutdowns can also help lower emissions and energy consumption associated with operational disruptions.

Bou Chaaya said major energy companies were increasingly recognising the commercial benefits of predictive analytics and moving towards wider implementation.
The transition reflects a broader shift in the industry's approach to AI, with companies increasingly focused on demonstrating financial and operational returns rather than experimenting with emerging technologies.

Digital platforms improve project delivery

At ADIPEC 2026, AVEVA showcased its industrial intelligence capabilities, including its CONNECT platform, which integrates engineering, construction and operational information across the lifecycle of industrial assets.

Bou Chaaya said connecting these processes through a shared digital platform could significantly improve project delivery and reduce inefficiencies caused by disconnected systems.

Traditionally, engineering design, construction and operations have relied on separate teams and databases, creating challenges when technical information needs to be transferred between project stages.

AVEVA's technology aims to address these gaps by providing a common information platform that allows different teams to access and work with the same data. One application involves AI-assisted engineering design, including the routing of pipelines and equipment within complex industrial facilities.

Designing infrastructure such as a refinery requires engineers to coordinate extensive networks of pipelines, machinery and supporting systems. Bou Chaaya said AI-enabled engineering tools could reduce the number of people required for certain design tasks while accelerating completion times. Digital integration can also shorten the handover process between engineering and operations, which can traditionally take six to nine months. By reducing repeated verification and allowing teams to work from consistent information, companies can accelerate project delivery and bring industrial assets into operation sooner.

The technology is particularly relevant as the Middle East expands its energy infrastructure to accommodate rising electricity demand and new industrial developments.

Clean data key to AI adoption

Despite growing investment in artificial intelligence, Bou Chaaya said data quality remained one of the biggest challenges facing energy companies seeking to scale the technology.

"Most important, AI is proper data. It's clean data," he said.

Industrial operators collect significant volumes of information from production equipment, engineering systems and operational facilities, but much of it remains fragmented across different platforms. AVEVA is focusing on integrating these sources into a unified information environment, allowing companies to analyse data more effectively and generate reliable operational insights.

Bou Chaaya also highlighted the importance of developing workforce capabilities alongside technological investment. As AI becomes more widely embedded in industrial operations, engineers and technical specialists will need the skills to interpret its recommendations, verify results and intervene when necessary. He said subject matter experts would become increasingly important in ensuring that AI-generated outputs are accurate and appropriate for complex industrial environments.

For energy companies facing growing demand from data centres and other electricity-intensive industries, the combination of reliable data, skilled personnel and AI-enabled operations could become critical to maintaining supply security.

As the region expands its digital infrastructure, Bou Chaaya expects the energy sector to continue investing in gas, renewable energy and emissions-reduction technologies while accelerating the adoption of AI.

The challenge will be to ensure that the technology driving new electricity demand can also help energy producers operate more efficiently, reliably and sustainably.

Oil Review Middle East is hosting an exclusive webinar by GPT Industries on Dissimilar Flange Connections: Corrosion Risks, Misconceptions, and Practical Solutions, on Thursday 18 June at 9.30am GST

Dissimilar flange connections are widely used across industries, yet they remain a misunderstood and underestimated source of corrosion risk, operational failure, and unexpected cost. This webinar will explore why these connections exist, how they behave in real-world environments, and the critical factors that influence their performance. It will provide practical insight into the risks and realities of dissimilar flange connections, with a focus on corrosion mechanisms, common misconceptions, and effective mitigation strategies to improve reliability and reduce long-term costs.

The session will cover:
✔️ Understanding galvanic corrosion in dissimilar flanges
✔️ The dangers of localised corrosion and its impact on asset reliability
✔️ Common misconceptions around cladding and sealing methods
✔️ Available mitigation strategies, including coatings, bolting practices, and flange isolation kits
✔️ How to apply practical decision-making frameworks based on risk, environment, and lifecycle cost considerations

Register here

GPT Industries is a leading global manufacturer of critical pipeline sealing and electrical isolation products to protect the world’s pipelines, people and environment. With a focus on safety, performance and reliability, the company employs advanced engineering and manufacturing processes to meet the challenging demands of the oil and gas, water/wastewater, hydrogen and construction and infrastructure industries.

Expert presenters will be Rebecca ZImbra – product engineer, GPT Industries, metallurgical/materials engineer with industry, management, and research and development experience and expertise in materials testing, cathodic protection, failure analysis, and weld inspection; and Nick Bander, director – Engineering and Product Management at GPT Industries, an experienced technical team manager with a focus on manufacturing, pipeline corrosion mitigation, oil and gas, energy, and water/wastewater industries, and expertise in team/people development, product application, product design, pipeline, sealing, corrosion, and cathodic protection.

Don't miss this opportunity to gain exclusive practical insights into corrosion risks, mitigation strategies, and decision-making approaches for dissimilar flange connections!
Register here

The conflict in the Middle East has disrupted global production and trade in hydrogen-based products such as fertilisers, fuels and industrial feedstocks, exposing vulnerabilities in supply chains, according to the latest edition of the IEA’s Global Hydrogen Review

The report finds that the crisis and the increased focus on energy security are renewing interest in hydrogen and hydrogen-based fuels, although low-emissions hydrogen remains at a relatively small scale.

Demand for hydrogen worldwide surpassed 100 million tonnes in 2025, according to the report, while production of low-emissions hydrogen grew by 20% to almost 1 million tonnes. However, persistent barriers including high costs, uncertain demand, complex regulations and a lack of infrastructure continue to slow the development of low-emissions hydrogen, putting 2030 targets announced by governments increasingly out of reach.

"The current crisis has highlighted how deeply economies around the world depend on trade in hydrogen-based products and the significant role of the Middle East in those supply chains," said IEA executive director Fatih Birol. "Countries are looking for ways to make their energy systems more resilient and diversified. Low-emissions hydrogen can play an important role in those efforts over time, but stronger policy support and much faster deployment will be needed before it can make a meaningful contribution at scale."

Fertiliser markets have been particularly affected by the conflict in the Middle East, which is home to around one-sixth of global hydrogen production, the majority dedicated to the production of chemicals, fertilisers and refined oil products. The region accounts for more than 10% of global refining capacity, ammonia and urea production, and close to 17% of methanol production.

The region makes up over one-quarter of global trade in ammonia, almost 40% of urea trade and almost 45% of methanol trade, and one-third of its refining capacity is export-oriented. The closure of the Strait of Hormuz has severely disrupted the supply of all these products. The production of hydrogen-based fuels outside the Middle East has also been affected, particularly in Asia, where countries are very dependent on natural gas imports from the Middle East.

Disruptions to production, exports and shipping routes have contributed to shortages and price volatility across global markets with the increase in fertiliser costs posing risks for food supply chains, especially in import-dependent agricultural economies.

Low-emissions hydrogen

Low-emissions hydrogen production grew by 20% in 2025 to reach almost 1 Mt and is set to exceed 1% of global hydrogen production for the first time, but progress is concentrated in a small number of projects. However investment momentum weakened in 2025, with delays to final investment decisions and a shrinking pipeline of projects highlighting the challenges facing the sector.

Despite continued policy support in some markets, low-emissions hydrogen and hydrogen-based products remain significantly more expensive than conventional alternatives in most markets. The pipeline of announced projects for producing low-emissions hydrogen by 2030 has shrunk by around a quarter since last year to 27 million tonnes due to delays and cancellations, and the number of projects likely to become operational by 2030 has fallen significantly.

Demand uncertainty remains a key constraint for scaling up low-emissions hydrogen development, with offtake agreements at low level. This is cited by developers as one of the largest barriers to investment.