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The A1-96/3 well is located around 35 km from the Wafa field. (Image source: Adobe Stock)

Exploration & Production

Eni and BP have resumed their exploration activities in Libya after halting drilling operations in the onshore region in 2014, according to Libya’s National Oil Corporation (NOC)

This follows the formal revocation of force majeure status by Eni and NOC in August 2023 on exploration areas A&B (onshore) and C (offshore), where Eni is operator with 42.5% along with bp (42.5%) and Libya Investment Authority (15%), as a result of a favourable security assessment. Some of these areas are close to the Wafa gas facilities that export production to Italy.

On October 26, Eni began its exploration activities in the Area B (96/3) of Ghadames Basin, where the first exploratory well, A1-96/3 (Hasheem Prospect), was drilled. This well is the first under the contractual obligations for Area B in Ghadames Basin, according to the Fourth Bid Round Contract of 2007. Mellitah Oil & Gas, which has extensive experience in the region, particularly in developing and managing the Wafa field, is overseeing the drilling operations and all related activities for this well.

Several promising geological formations in the A1-96/3 well are set to be tested, which are expected to contain both oil and gas. The well is projected to reach a final depth of approximately 3,147 m.
The A1-96/3 well is located around 35 km from the Wafa field and approximately 650 km from the capital, Tripoli.

Eni is the leading international gas producer in Libya, where it has been operating since 1959, and currently has a large portfolio of assets in exploration, production and development. Production activities are operated through the joint venture company Mellitah Oil and Gas BV (Eni 50%, NOC 50%).

Repsol and OMV are also set to restart operations sin the Murzuq Basin and Sirte Basin respectively, NOC says.

Haytham Yehia, general manager, Middle East and Central Asia Region, Shell Lubricants. (Image source: Shell Lubricants)

Industry

Haytham Yehia, general manager for Middle East and Central Asia Region for Shell Lubricants, discusses the outlook for the lubricants market in the region and the impact of sustainability considerations

What is the outlook for the base oil and lubricants market in the GCC region, and are there any trends you would highlight?

The GCC region offers a dynamic and evolving landscape for the lubricants market. The growth we’re seeing across both industrial and consumer sectors is not just driven by economic activity, it’s driven by a deep shift in how industries are approaching efficiency and performance. In the UAE, the rise in construction and infrastructure projects is fuelling demand, while Iraq’s oil and gas sector is seeing a resurgence, pushing growth in the lubricants market.

But it’s not just about volume, it’s about the shift towards higher-performing, synthetic lubricants. As more modern engines and industrial equipment are introduced, the need for advanced lubrication solutions becomes critical. At Shell, we’re focused on meeting these demands with products designed for today’s challenges and tomorrow’s innovations. Markets like the UAE, Iraq, and Oman are at the forefront of this transformation, and the trends we’re seeing here will set the stage for the broader region.

To what extent is sustainability a factor impacting the lubricants market?

Sustainability is no longer a nice-to-have; it’s a necessity. At Shell, we believe that our role in the market goes beyond providing lubrication solutions, it’s about supporting a sustainable future. Our introduction of the Shell PANOLIN range in the Middle East is a testament to that commitment, addressing the uptick in demand for more sustainable products, especially in sectors such as construction, agriculture, renewable power, hydropower and offshore wind sectors. These biodegradable lubricants provide high performance lubrication while also having the ability to degrade naturally. Biodegradable lubricants help to contribute to a more sustainable future, offering greater protection for wildlife and ecosystems in the event that they come into contact with the environment, in comparison to conventional lubricants. This enables our customers to reduce the risks of operating in sensitive environments.

The portfolio includes biodegradable lubricants for hydraulics, gears, universal tractor transmission oils, engine oils (HDEO), turbine oils, and greases for machine lubrication, including leading OEM-approved products. They are designed with the future in mind, delivering high performance while minimising environmental impact.

How is the carbon-neutral lubricants market developing, and what is the role of these products in reducing emissions and promoting sustainable practices across industries?

The move towards carbon-neutral lubricants is a powerful shift that’s changing the way industries operate. In the Middle East, industries are beginning to embrace carbon-neutral solutions, not just to meet regulatory requirements but as proactive lever in reducing their emissions. At Shell, our carbon-neutral lubricants, alongside initiatives such as our sustainable packaging innovations at the Oman plant, are tangible solutions for businesses to help reduce their environmental impact while maintaining operational efficiency.

Carbon neutrality is about more than just compensating emissions, it’s about designing products and solutions that actively help our customers avoid and reduce their carbon footprints. As industries shift towards more sustainable practices, the role we want to play is to provide our customers products and services that help make their transition possible, and our continued innovation in this space helps ensure we stay ahead of the curve.

How is EV adoption impacting the lubricants market in the region?

The shift to electric vehicles brings both new opportunities and challenges. While traditional lubricants like engine oils are in lower demand for EVs, the need for specialised fluids is increasing. These include transmission fluids, greases, and thermal management fluids, which play a critical role in enhancing the efficiency, longevity, and safety of EV batteries and other key components.
EVs also shift the focus from friction management to thermal management, with cooling fluids becoming more important. In fact, EVs typically use double the amount of coolant compared to internal combustion engines, highlighting the growing importance of thermal management in electric mobility.

While regions like China, Europe, and the US lead in EV adoption, the Middle East, particularly countries like the UAE, is making significant investments in EV infrastructure. This is already beginning to influence demand for EV-specific lubricants. As the UAE targets net-zero emissions by 2050, addressing emissions from transport will be key to achieving this goal.

At Shell, we’re dedicated to advancing reliable, scalable solutions that support the growth of EVs. We’re leveraging our global expertise in advanced fluids to work with OEMs and co-engineering partners to optimise EV performance and efficiency. Our immersion cooling technology, for example, plays a crucial role in managing battery temperatures, ensuring safety and prolonging battery life.

The new process will improve efficiency and reduce carbon footprint. (Image source: Honeywell)

Petrochemicals

Honeywell has launched a new process to improve the efficiency and sustainability of light olefin production

The naphtha to ethane and propane (NEP) technology generates a tunable amount of ethane and propane from naphtha and/or LPG feedstocks, generating more high-value ethylene and propylene with reduced production of lower-value by-products compared to a traditional mixed-feed steam cracking unit and resulting in net cash margin increases. An NEP-based olefins complex also reduces CO2 intensity per metric ton of light olefins produced by 5 to 50% versus a traditional mixed-feed steam cracker.

More efficient production

“The petrochemical industry faces strong competition and challenges in obtaining raw materials globally,” said Matt Spalding, vice president and general manager of Honeywell Energy and Sustainability Solutions in MENA. “Our technology helps to enable more efficient production of ethylene and propylene, two chemicals which are in high demand, while also helping our customers lower their carbon emissions.”

The new solution is a part of Honeywell’s Integrated Olefin Suite technology portfolio to enhance the production of light olefins.

Joseph El Bitar, vice president and general manager of Hexagon. (Image source: Hexagon)

Technology

In an exclusive interview with Oil Review Middle East, Joseph El Bitar, vice president and general manager of Hexagon, speaks about the company's vision for the Middle East and its smart digital reality solutions

What are your main activities in the Middle East currently, and how do you view the market for developing your business in the region?

Hexagon is the global leader in digital reality solutions, combining sensor, software and autonomous technologies. We are putting data to work to boost efficiency, productivity, quality and safety across industrial, manufacturing, infrastructure, public sector and mobility applications. Our technologies are shaping production and people-related ecosystems to become increasingly connected and autonomous – ensuring a scalable, sustainable future.

Our main activities in the Middle East focus on supporting the region’s specific needs with advanced digital solutions. We empower customers to unlock data, accelerate industrial project modernisation and digital maturity, increase productivity, and move the sustainability needle.d our footprint by partnering with local stakeholders, governments and industries to accelerate this transformation.

How are your smart digital reality solutions helping companies in the energy sector to enhance safety and efficiency?

Hexagon’s Asset Lifecycle Intelligence division has been instrumental in integrating AI and digital solutions to improve efficiency and enhance safety in energy services. One of our flagship initiatives is the deployment of a digital backbone (which is also called digital twin or Smart Digital Reality™), which creates a virtual replica of physical assets and integrates with existing solutions. This digital twin enables real-time monitoring, predictive maintenance and optimization of operational systems, resulting in significant cost savings and reduced asset downtime. We go beyond a mere physical replica to create a comprehensive digital solution.

For example, our collaboration with leading EPCs on AWP, Smart Materials and Smart Completion has achieved remarkable results in projects. By utilising AI-driven analytics and digital workflows, we have streamlined project production management (PPM) and automation in project material management. This has resulted in a reduction in the project timeline and a decrease in material wastage

What are the benefits of your new HxGN SDx2 solution? Are there any other products or enhancements you would like to highlight, and how are advancements in AI and technology impacting your offering?

HxGN SDx2 is Hexagon’s next-level, cloud-native SaaS solution that integrates critical data, promoting transparency, efficiency, productivity, and more informed decision-making while mitigating risks and reducing costs. It reshapes operational boundaries for organisations engaged in digital transformation. Its robust features unveil and nurture previously untapped opportunities, positioning organisations for sustainable profitability through engineering and operational excellence.

The key to HxGN SDx2 is unprecedented accessibility and usability of data. It breaks down information silos across the asset lifecycle and improves the relationship between digital and human workflows across projects, assets, and operations. It forms a ‘digital thread’ of information that grows stronger as more systems connect to it and users leverage its power to better inform their day-to-day decisions and responsibilities.

What was your focus at ADIPEC this year?

At ADIPEC this year, our primary focus was on showcasing autonomous technologies and smart digital reality solutions that address the evolving challenges and opportunities in the Middle East region. With the industry's shift towards sustainability and digital transformation, we presented technologies that enhance operational efficiency, improve safety, and support the global transition to cleaner energy.

This year, ADIPEC's theme – “Exploring the power of energy in accelerating an economy-wide transformation that delivers for people, the planet, and our collective prosperity” – aligns seamlessly with our own vision of creating sustainable solutions for the energy industry.

Our theme for this year, “Two worlds, one sustainable reality,” encapsulates our approach to bridging traditional and emerging energy systems. We focus on integrating cutting-edge technologies, digital transformation tools, and advanced data analytics, with existing infrastructures. By doing so, we aim to accelerate the shift toward a sustainable energy reality –one that balances economic growth, environmental stewardship, and social well-being.

The webinar will explore the latest trends in offshore operations. (Image source: AD Ports)

Webinar

The offshore operations landscape is evolving at an unprecedented pace, making it crucial to keep up with advancements in efficiency and sustainability.

Oil Review Middle East is hosting an exclusive webinar on 20 November at 2pm GST, entitled ‘The future of offshore operations: innovation, efficiency and sustainability’. It will bring together industry leaders and experts to explore the latest trends in offshore operations, focusing on groundbreaking innovations that are driving sustainable and efficient practices. One of the highlights will be a presentation on SAFEEN Green—a revolutionary unmanned surface vessel (USV) shaping the future of the offshore industry.

Key highlights:


Offshore trends: expert insights into industry shifts and sustainability influences
Complex challenges: addressing the environmental and resource-focused dynamics shaping operations
AD Ports Group vision: discover how SAFEEN Green is setting new benchmarks for sustainable operations
Innovation in SAFEEN Green: A closer look at the groundbreaking technology behind this transformative USV.
Practical insights: Learn strategies to boost efficiency and encourage responsible practices in offshore work.

Speakers are Erik Tonne, managing director and head of market analysis, Clarksons Platou; Tarek Al Marzooqi, CEO, SAFEEN Subsea, AD Ports Group; and Ronald J Kraft, CTO, Sovereign Global Solutions ME and RC Dock Engineering BV.

Don’t miss out on this opportunity to gain exclusive insights into the future of offshore operations!

Register here 

Geothermal energy is fast gaining traction as a important source of renewable energy. (Image source: Synergy Consulting)

Energy Transition

Synergy Consulting discusses the potential of geothermal energy

Geothermal energy is fast gaining traction as a important source of renewable energy, harnessed from the immense heat stored beneath the Earth’s surface. This heat, originating from the planet’s core, is generated by the decay of radioactive materials and the residual energy left from the Earth's formation over four billion years ago. This geothermal energy that lies within the Earth’s crust can then be tapped to produce electricity or used directly for heating purposes, offering a clean and reliable power source.

Located roughly 2,900 km below Earth’s crust, the core is the hottest part of the planet. Although some of the core’s heat is residual from Earth's formation, the majority is continuously produced by the natural decay of radioactive isotopes like potassium-40 and thorium-232. This process sustains geothermal heat as a renewable resource.

When underground rock formations are heated to extreme temperatures of 700-1,300°C (1,300-2,400°F), they can become magma -– molten rock filled with gas bubbles. Magma exists deep in the Earth’s mantle and lower crust, sometimes rising to the surface as lava. This magma heats nearby rocks and underground water reservoirs, which can be released through natural outlets such as geysers, hot springs, and steam vents.

Geothermal power plants

Geothermal power plants are built on this principle and capitalise on the natural heat by using steam or hot water reservoirs beneath the Earth’s surface to drive turbines connected to electricity generators. In some cases, water is injected into the ground to be heated and brought back to the surface for energy production. This process is not only efficient but also relatively low in emissions compared to fossil fuel-based energy sources.

While still a niche technology, geothermal energy already plays a substantial role in power generation for several countries. Iceland, El Salvador, New Zealand, Kenya, and the Philippines rely heavily on geothermal energy to meet their energy needs. The United States has also been a long-standing pioneer in this field, with its first geothermal district heating system established in 1892 in Boise, Idaho. This system still provides heat to hundreds of homes over a century later.

In 2022, geothermal energy generated approximately 92bn kilowatt-hours (kWh) of electricity across 24 countries, according to the International Energy Agency (IEA). The European Commission notes that deep-geothermal energy has the highest capacity factor among renewable sources, exceeding 80%. This high efficiency makes geothermal a highly scalable option for industrial-scale energy production. Projections from the IEA’s Sustainable Development Scenario anticipate that global geothermal power will triple by 2030, from 92 terawatt-hours (TWh) in 2019 to 282 TWh.

As the world faces increasing demand for energy, geothermal power offers a reliable, clean, and efficient way to augment traditional energy sources. With its high potential for scalability, it could play a crucial role in meeting global energy needs while reducing dependence on fossil fuels.

This article is authored by Synergy Consulting IFA.

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