In The Spotlight
Declines rates are lower in the Middle East than elsewhere. (Image source: Adobe Stock)
Accelerating decline in output from existing oil and gas fields: IEA
Declines in output from existing oil and gas fields globally have accelerated – largely due to a higher reliance on shale and deep offshore resources – but are lower in the Middle East than other parts of the world, according to a new report from the IEA
The new report, 'The Implications of Oil and Gas Field Decline Rates', draws on production data from around 15,000 oil and gas fields from around the world, and highlights the wide variation in decline rates across field types and geographies, with production from larger fields declining more slowly than from smaller fields, and offshore fields declining more quickly than onshore fields. The declines rates for the Middle East and Russia, which are home to the majority of conventional onshore supergiant fields, are therefore much lower than those elsewhere. This could mean that oil production from existing fields would become more concentrated among the OPEC member countries and Russia, who could see their share of global oil production rise from 43% today to 53% in 2035 and more than 65% in 2050, according to the IEA.
In Saudi Arabia and the UAE, where major upstream expansion projects are underway, production growth from approved projects, along with existing spare capacity and continued investment in existing projects, can more than offset the loss of production from natural declines, especially as decline rates are relatively low in both countries.
Onshore supergiant oil fields in the Middle East decline at less than 2% per year, while smaller offshore fields in Europe average more than 15% per year, according to the report. Tight oil and shale gas decline even more steeply: without investment, output falls by more than 35% over one year and a further 15% over a second year. The Middle East has the lowest oil post-peak decline rate at 1.8%, compared with global average annual post-peak decline rate of 5.6% for conventional oil and 6.8% for conventional natural gas.
IEA executive director Fatih Birol noted that nearly 90% of upstream investment annually is dedicated to offsetting losses of supply at existing fields. “Decline rates are the elephant in the room for any discussion of investment needs in oil and gas, and our new analysis shows that they have accelerated in recent years. In the case of oil, an absence of upstream investment would remove the equivalent of Brazil and Norway’s combined production each year from the global market balance. The situation means that the industry has to run much faster just to stand still. And careful attention needs to be paid to the potential consequences for market balances, energy security and emissions.”
The development of new resources would therefore be need to keep up the level of global oil and gas production. Even with continued spending on existing fields, more than 45mn bpd of oil and nearly 2,000 bcm of gas from new conventional fields would be required by 2050 to maintain production at today’s levels, according to the IEA.
The report also highlights that it has taken almost 20 years on average to move from issuing an exploration licence for oil and gas until first production. Around 230 billion barrels of oil and 40 trillion cubic metres (tcm) of gas resources have been discovered that have yet to be approved for development, mainly in the Middle East, Eurasia, and Africa. Developing these resources could add around 28 mn bpd and 1,300 bcm by 2050, the IEA says.
The GGIP involves four elements
TotalEnergies launches construction of major Iraq projects
TotalEnergies has announced the start of the construction of the final two components of Iraq’s Gas Growth Integrated Project (GGIP) which it is operating alongside its partners Basra Oil Company and QatarEnergy
The 4-in-1 project comprises the recovery of gas that is currently flared at three oil fields in southern Iraq to supply electric power plants, the redevelopment of the Ratawi oil field, the construction of a 1 GWac (1.25GWp) solar farm and a seawater treatment plant. With total investment exceeding US$13bn, it aims to sustainably develop Iraq’s natural resources to improve the country’s electricity supply while contributing to its energy independence and reducing its greenhouse gas emissions. Following the start of construction of the 300 Mcf/d gas treatment plant and the 1 GWac solar facility at the beginning of this year, all parts of the multi-energy GGIP project are now in their execution phase.
Patrick Pouyanné, chairman and CEO of TotalEnergies, and His Excellency Saad Sherida Al-Kaabi, Qatari Minister of State for Energy Affairs, deputy chairman and CEO of QatarEnergy, met on 14 September in Baghdad with His Excellency Mohammed Shia al-Sudani, Prime Minister of the Republic of Iraq, and His Excellency Hayan Abulghani, Minister of Oil and Deputy Prime Minister, to announce the start of construction of the Common Seawater Supply Project (CSSP) and the full field development of the Ratawi oil field.
The CSSP will be built on the coast near the town of Um Qasr. It will process and transport 5 million barrels of seawater per day to the main oilfields in southern Iraq, thereby freeing up to 250,000 cubic meters of freshwater per day for irrigation and local agriculture needs. The plant will be operated by Basra Oil Company.
The Ratawi redevelopment was launched in September 2023. Phase 1 aims to increase production to 120,000 bpd and is expected to come on stream by early 2026. Phase 2 (full field development) will increase production to 210,000 bpd starting in 2028, with no routine flaring.
All 160 Mcf/d of associated gas will be fully processed thanks to the 300 Mcf/d Gas Midstream Project (GMP), whose construction began early 2025. The GMP, which will also treat previously flared gas from two other fields in southern Iraq, will deliver processed gas into the national grid where it will fuel power plants with a production capacity of approximately 1.5 GW, providing electricity to 1.5 million Iraqi households. An Early Production facility to process 50 Mcf/d of associated gas will start early 202,6 together with the Ratawi phase 1 oil production.
“We are delighted today to award the two final contracts of the Gas Growth Integrated Project, in particular the seawater treatment plant which has been long awaited by the oil industry in Iraq. In less than two years since the GGIP effective date in August 2023, TotalEnergies and its partners have fully executed their commitment towards the people of Iraq and launched all projects included in the multienergy GGIP projet, the best showcase of TotalEnergies transition strategy. All these projects will bring a significant contribution to the Iraq economy and employ during the construction phase 7,000 Iraqi nationals,” said Patrick Pouyanné. “Furthermore, I am proud to confirm that the first phase of the associated gas, oil and solar projects will start-up as soon as early 2026.”
The event will bring together national and international oil companies, technology pioneers, leading academics, and service providers to address the industry's most pressing challenges and opportunities. (Image source: Informa)
MEOS GEO 2025: Shaping the future of energy
The Middle East is set to reaffirm its leadership in the global energy sector with the upcoming Middle East Oil, Gas, and Geosciences Show (MEOS GEO 2025)
Scheduled for 16-18 September 2025 at Exhibition World Bahrain, this landmark event is more than just an industry gathering; it is a strategic platform embodying the region's commitment to innovation, collaboration, and sustainability in a rapidly transforming energy landscape.
Held under the patronage of His Royal Highness Prince Salman bin Hamad Al Khalifa, The Crown Prince and Prime Minister of The Kingdom of Bahrain, MEOS GEO 2025 is recognised as the premier upstream oil, gas, and geosciences exhibition and conference in the Middle East. The event will bring together national and international oil companies, technology pioneers, leading academics, and service providers to address the industry's most pressing challenges and opportunities.
Driving energy leadership and sustainability
Under the theme "Energy for a prosperous future: Leading a sustainable tomorrow," MEOS GEO 2025 reflects the balance between energy security and environmental stewardship. The event will explore optimising hydrocarbon production, accelerating digital transformation, and advancing decarbonisation strategies.
A cutting-edge strategic & technical programme
The strategic conference will feature high-level panel discussions where global energy leaders tackle complex questions about balancing immediate energy demands with long-term transition goals. The technical programme will feature 123 specialised sessions covering the full spectrum of upstream energy industry challenges and innovations, providing practical knowledge and implementable solutions.
Collaboration and innovation at the core
Beyond knowledge-sharing opportunities, MEOS GEO 2025 serves as a hub for strategic collaboration. The exhibition floor will feature innovations from over 120 companies, while specialised zones will facilitate networking and partnerships.
Specialised feature zones
MEOS GEO 2025 offers specialised zones designed to foster innovation and knowledge exchange, including:
• Start-up zone for emerging companies.
• Digitalisation zone focused on cutting-edge digital solutions.
• Live Labs & Genius Talks stage for dynamic discussions.
• e-Poster zone for sharing research in digital formats.
• Young Professionals & Students Programme aimed at nurturing future talent.
Leading the future with purpose and sustainability
MEOS GEO 2025 exemplifies Informa's FasterForward strategy by embedding sustainability at its heart. From its focus on low-carbon innovation to the inclusion of SANAD as the Sustainability Sponsor, the event highlights emissions-reduction technologies and enhanced ESG practices. Initiatives such as showcasing hydrogen and geothermal exploration, alongside efforts to reduce waste, reflect a commitment to driving meaningful change.
Streamlined sponsorship highlights
The event's sponsorship lineup underscores its strategic importance in the global energy sector. Industry leaders such as SLB, and Saudi Arabian Chevron are among the key sponsors, alongside Alkhorayef Petroleum Company and Baker Hughes.
MEOS GEO 2025 is not just a trade show; it is a transformative platform where stakeholders can collectively chart a course toward a sustainable and prosperous energy future, blending traditional strengths with forward-looking technologies and practices.
The system sets a new standard in reservoir flow control. (Image source: Halliburton)
Halliburton launches Turing electro-hydraulic control system
Halliburton has launched the next-generationTuring electro-hydraulic control system, with bidirectional choking and built-in position sensors for fast and accurate flow control
Part of Halliburton’s of SmartWell intelligent completions technology, this system sets a new standard in reservoir flow control suitable for all completion applications, improving recovery and reducing well count.
The Turing electro-hydraulic control system facilitates fast zonal optimisation through integrated position sensors that help operators manage well performance with speed, precision, and confidence. Its simplified, flexible design reduces rig time, operational risk, and production delays to deliver measurable value to our customers.
Operators can remotely and selectively adjust zonal ICV positions in seconds. Built-in high-resolution sensors increase fidelity and expand choke position options. Fast, precise bidirectional control of the ICVs enables flow control from or into each zone without closing the ICV. This capability supports routine, active well optimisation and supports the adoption of fully automated, data-driven optimization technology.
Paired with the Clariti® digital reservoir management suite, the Turing electro-hydraulic control system provides customers with added insights and real-time advice on opportunities for well production and field optimisation. The system can manage up to 12 zones with three control lines, two hydraulic and one single-wire tubing-encapsulated conductor (TEC). The TEC line communicates with downhole sensors through the DataSphere permanent monitoring suite to eliminate additional lines and reduce subsea infrastructure costs.
“As the pioneer of SmartWell intelligent completions, Halliburton’s advancements in this technology strengthen our industry leadership. Our new Turing electro-hydraulic control system builds on that legacy. It empowers our customers to improve recovery, manage subsurface uncertainty, and achieve lower costs with greater operational efficiency,” said Maxime Coffin, vice president, Halliburton Completion Tools
Hannes Liebe, regional president, APJMEA at IFS. (Image source: IFS)
Achieving tangible business outcomes with Industrial AI
Hannes Liebe, regional president, APJMEA at IFS, discusses Middle East business prospects and the evolution of industrial AI in advance of IFS Connect Middle East & Africa 2025, the company’s flagship customer and partner event
IFS, a global leader in industrial AI, sees strong prospects for growing its business in the Middle East, as Liebe explains.
“The Middle East right now is at a crossroads, following years of growth. Through AI, I believe we’re entering into a new era – the next industrial revolution. In the context of oil and gas, while the long term forecast for oil is generally downwards, at the same time natural gas and LNG are growing, along with new energies such as renewables and hydrogen.
“So the Middle East, with its appetite and ambition to lead the world in this new industrial era, plus the backdrop of what we see in oil and gas, makes this a very interesting opportunity for a solution provider like IFS, with our domain expertise and a similar level of ambition to lead our customers and industry into the future.”
He notes IFS’s focus on six asset-heavy industrial sectors – energy, utilities and resources; manufacturing; construction and engineering; aerospace and defence; services industries and telecommunications – and has always focused on execution.
“In asset-heavy industries, the software has to do the job. It’s not technology for technology’s sake. That is particularly the case in oil and gas, given the price constraints. It’s about uptime. It’s about the lifespan and serviceability of the assets. So it is a very important topic, and we have market-leading solutions to help customers optimise across their asset lifecycle.”
“It’s similar for the growing gas and LNG sector. Where do you invest the capital? How do you do the capital planning around this? How do you do maintenance for these assets? Predictive maintenance will become the rule, so you need a software platform that does this.”
Turning to the third area of new energies and hydrogen, he stresses that sustainability needs to be looked at from a business rather than a CSR perspective; there has to be a tangible ROI.
“If I invest in these emerging areas, how will they deliver the ROI that I need?
“All this is software related. It’s a big opportunity for IFS, and that’s why we are investing heavily in the Middle East.”
Approach to industrial AI
Discussing the company’s approach to industrial AI, he says “Industrial AI means contextual AI. This is all about AI in business context. We start from the business problem and the business process, and then look at the technological remit to resolve it. AI provides new capabilities that we didn’t have before. It is not about technological gimmicks, but to support the execution, to get the job done. In that way, it’s not about technology, it’s about business process.” It is this approach that has primed companies such as IFS to be very successful in this space where others have fallen, with a recent MIT study finding that 95% of generative AI pilots at companies are failing.
Discussing the challenges to AI adoption, Liebe highlights legacy systems and fragmented data, and the issue of trust. “If I were in oil and gas, I would be sceptical if it were just about the tools, the next tech. Can I really trust what that tool delivers to me? In an industrial context, if your prediction is wrong, it could have catastrophic consequences. The trust element only comes if it is executions and operations related; it cannot be just a tech tool. As with any technological innovation, the legacy will always drive us, but there’s also a mindset issue; the softer part of technological adoption will play a role. And I think we all have a journey to walk, on the supplier side as well as the customer side. We are in this together.
“What makes the difference in AI? The best way to summarise this is ‘dreams and details’. It needs ambition in the dream, and the rigorous focus on details to create the trust.”
Liebe highlights the company’s initiative with Nexus Black, whereby a world-class team of AI engineers are working with the customer to create AI-based solutions that solve real-world problems, in a scalable, reliable and trustworthy way.
A recent report from IFS highlighted that the evolution of industrial AI is creating a shift in business models, changing how businesses are run, automating maintenance, predicting disruptions, optimising supply chains, and facilitating intelligent decision-making across field service, asset management, and manufacturing. Elaborating on this, he comments, “Many companies are shifting their model to outcome-based revenue streams, meaning that predictive maintenance will become the rule. AI will fuel this, so we will see business model transformations and new revenue streams being enabled through the power of AI.”
Giving a specific example from the oil and gas sector, he highlights the company’s partnership with TotalEnergies, which will see all the energy company’s assets, from exploration and production to refineries and chemicals, moved into one platform through IFS Cloud, for streamlined asset management and servicing. When fully implemented, more than 13,500 users globally will be enabled to perform asset maintenance.
“It’s only by bringing all these assets together that you can truly optimise and make full use of AI,” he explains. “You can automate and create scale. This is an example of where IFS can truly help.”
IFS Connect Middle East & Africa
Turning to the IFS Connect event in Riyadh and how IFS will support the Saudi Vision 2030 strategy, he comments, “At its core, Saudi Vision 2030 is an example of ambition, urgency and sustainability. That is fully in line with how we think. We have that sense of urgency, but we want to show a commitment as well by building local talent, local partnerships, local presence. So we have moved our regional headquarters to Riyadh, and are partnering with local companies to strengthen our presence and enhance our capabilities. Moving our regional event for the Middle East and Africa to Riyadh is also testimony to this. The ambition in Saudi is palpable, and we want to be a part of it.”
With the theme “Powering Vision 2030: Industry-Centric Innovation for National Transformation”, IFS Connect will showcase how IFS’s industrial solutions & Industrial AI are enabling organisations in the region achieve tangible business outcomes and accelerate their contribution to national visions.
It will provide a valuable opportunity to share real stories with real customers, Liebe says, highlighting the company’s customer focus. It will also provide actionable value in the industrial context, with breakout sessions for each of its industrial verticals, where customers can share their experiences with their peers.
“Thirdly, it’s about inspiration, coming back to the dreams and details,” he concludes. “We all have to dream together, no-one has it all. And there is no better way of doing this than in an industry event context.”
A comparison of the downgoing mirror RTM using pre-processed data (top), acoustic MP-FWI imaging reflectivity (middle), and elastic MP-FWI imaging reflectivity (bottom). (Image source: DUG)
DUG Elastic MP-FWI Imaging resolves high reflectivity with ease
High impedance contrasts a problem? Never fear. DUG Elastic MP-FWI Imaging is here!
DUG Elastic MP-FWI Imaging is a unique approach to seismic processing and imaging which turns the traditional paradigm on its head. It replaces not only traditional processing and imaging workflows, but also the subsequent inversion workflow for elastic rock properties.
The traditional processing workflow involves the testing and application of dozens of steps such as deghosting, designature, demultiple and regularisation, which are all designed to overcome the limitations of conventional imaging. These workflows are complex, subjective, and very time-consuming due to their serial nature and they rely on many assumptions and simplifications. All of these issues impact the output data quality. The resulting, primary-only data then undergoes a similarly complex model-building workflow to derive an estimate of the subsurface velocity, which is used for depth imaging. Post-migration processing is performed before the pre-stack reflectivity undergoes another workflow to derive rock properties that feed into quantitative interpretation, also relying on simplifications of the actual physics. As a result of these workflows, projects can take many months to years to complete.
Elastic MP-FWI Imaging accounts for both compressional and shear waves, handling variations in seismic wave dynamics as a function of incidence angle, including in the presence of high impedance contrasts and onshore near-surface geological complexity. Multiples and converted waves are now treated as valuable additional signal, increasing sampling, resolution and constraining the inverted parameters.
As well as three-component reflectivity and velocity, DUG Elastic MP-FWI Imaging enables the estimation of fundamental rock properties like P-impedance, density and Vp/Vs from field data, without the need for a secondary amplitude variation with angle (AVA) inversion step. DUG Elastic MP-FWI Imaging simultaneously resolves not only subsurface structural features but also quantitative rock property information while avoiding the need for extensive data pre-processing and (post-imaging!) AVA-inversion workflows.
Here we consider an OBN dataset from the Gulf of America where water depths are approximately 2 km. In the figure at the top we see a comparison of the downgoing mirror RTM using pre-processed data (top), acoustic MP-FWI imaging reflectivity (middle), and elastic MP-FWI imaging reflectivity (bottom). We can immediately see the improvements that the MP-FWI imaging approaches bring over the conventional RTM with respect to resolution and illumination. The elastic MP-FWI imaging result has obviously produced the superior image around the high-impedance contrast caused by the salt, and the structures beneath it.
A complete replacement for traditional processing and imaging workflows is no longer a stretch of the imagination. Visit dug.com to see more outstanding DUG Elastic MP-FWI Imaging results.
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DUG Elastic MP-FWI Imaging leaps entire workflows in a single bound, delivering unsurpassed imaging and high-resolution rock properties from field-data input. Superior outputs, in a flash!
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The event will address the security challenges in the Middle East oil and gas sector, and how Pelco solutions can help.
Eyes on efficiency: how Pelco can transform oil and gas operations
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Speakers are:
• Andy Shartzer, Technical Evangelist, Pelco
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The session will be moderated by Louise Waters, Editor, Oil Review Middle East.
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