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Oman’s Ministry of Energy and Minerals (MEM) has launched a new competitive bid round for three oil and gas exploration areas

The new licensing round covers concession areas: Block 43A, Block 66, and Block 36, located across some of Oman’s diverse geological basins.

The three blocks up for grabs are:

Block 36: Located onshore in the Ghudun basin region, which is part of the larger Rub Al Khali basin, covering an area of 18,557 sq km.

Block 43A: Located onshore in the Buraimi area, covering an area of 6,920 sq km.

Block 66: Located on the eastern flank of the Rub Al Khali basin and covering an area of 4,898 sq km.

The new bid round is being conducted in collaboration with two industry partners, OQ Exploration and Production Company (OQEP) and Scotiabank.

In a regulatory filing with the Muscat Stock Exchange, OQEP reported: “This announcement is part of the ongoing cooperation framework between OQEP and the Ministry of Energy and Minerals, designed to attract new investments into Oman’s exploration and production sector.”

Despite ongoing attempts to diversity its economy, the oil and gas sector remains critical to Oman’s overall national wellbeing.

However, total oil production declined by 5.1 per cent in 2024, falling to 363.29mn barrels from 382.77mn barrels in the previous year, according to figures cited by local newspaper, Muscat Daily, reporting on news of the new licensing round.

The decline was mostly down to Oman’s adherence to OPEC+ production cut agreements.

The oil and gas sector also accounts for almost four-fifths of the country’s total foreign direct investment (FDI) stock.

As well as hydrocarbons, Oman is also actively looking to drive investment into renewables and alternative energy sources.

Days before the launch of the new round, Mohsen bin Hamad Al-Hadrami, Undersecretary at the Ministry of Energy and Minerals, was courting investment at a Japan business conference focused predominantly on alternative energy, including hydrogen.

The minister visited Mitsubishi Heavy Industries to see the latest technologies in electricity generation turbines that operate on natural gas and hydrogen, as well as electrolysis technologies for hydrogen production, and the role that these play in supporting the energy transition.

His visit also included a number of iron and steel companies, with a focus on the use of clean hydrogen in production processes.

PTTEP reported its operational performance for 2024, highlighting the successful production ramp-up of the G1/61 Project and its investment expansion in the UAE and Algeria

As part of international investment expansion, PTTEP acquired a 10% participating interest in the Ghasha Concession Project, one of the largest offshore natural gas fields in the United Arab Emirates (UAE), with gas production set to commence in 2025. Additionally, in September 2024, PTTEP obtained government approval for the field development plan of the Abu Dhabi Offshore 2 Project and is on track to finalise the investment decision (FID) within this year.

In Algeria, PTTEP acquired a 34% of the share capital in E&E Algeria Touat B.V., with the transaction expected to be completed within 2025. Upon the completion, PTTEP will indirectly hold 22.1% investment in Touat Project, which is an onshore natural gas producing field with a production capacity of approximately 435 MMSCFD. This acquisition will immediately enhance the company’s revenue, sales volume, and petroleum reserves.

PTTEP is spearheading a digital revolution in the energy sector through the innovative DigitalX project. By harnessing the power of Artificial Intelligence (AI) and Machine Learning (ML), the company has established a data-driven ecosystem that enhances exploration and production operations. Our standardised data foundation fosters greater integration and collaboration across all business units. The AI-driven X.brain engine empowers staff to make faster, more informed decisions. To fully capitalize on these advancements, the company is investing in the workforce, equipping them with the skills to become digital-savvy innovators who drive efficiency, cultivate creativity and accelerate task completion. PTTEP remains committed to leading technological advancements, leveraging digital solutions to unlock new opportunities.

SAMSUNG E&A is set to construct the UAE’s first methanol plant in Al Ruwais Industrial City, Abu Dhabi

This follows the award of an engineering, procurement and construction (EPC) contract award worth US$1.7bn (AED6.2bn) from TA’ZIZ, the UAE’s chemicals and transition fuels ecosystem.

The project is in line with TA’ZIZ’s mission to advance the UAE’s economic diversification by unlocking new domestic chemical value chains. The 1.8 million tons per annum (mtpa) plant is set to be one of the world’s largest methanol plants, as well as one of the most energy-efficient, as on completion in 2028 it will be powered by clean energy from the grid.

Promising transition fuel

Methanol is a promising transition fuel, offering a cleaner alternative to conventional fuels such as coal and diesel for power generation. It also serves as an alternative to high-sulphur fuels used in marine transportation. Additionally, methanol is a key feedstock for a range of chemical derivatives, allowing the production of thousands of products including plastics, resins, pharmaceuticals and building materials.

TA’ZIZ, founded in 2020 as a joint venture between ADNOC and ADQ, is a manufacturing, industrial services, logistics and utilities ecosystem that drives, the production of chemicals value chains and transition fuels.In its initial phase, TA'ZIZ will produce 4.7 mtpa of chemicals by 2028, including methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride, vinyl chloride monomer, and caustic soda. Several of these chemicals will be produced for the first time in the UAE, reinforcing TA’ZIZ’s strategic goal to expand the local chemicals value chain and advance economic diversification through industrialisation.

Mashal Saoud Al-Kindi, CEO of TA’ZIZ, said, “This landmark EPC contract award is a significant step in realizing TA’ZIZ’s vision to drive the UAE’s industrial growth by creating a world-scale integrated chemicals ecosystem in Al Dhafra region. The plant will enhance the UAE’s position as a leader in sustainable chemicals production and strengthen TA’ZIZ’s role in enabling ADNOC’s global ambition to lead the chemicals sector.”

SAMSUNG E&A will bring its successful experience of a recently completed methanol plant in Malaysia and will apply its unique execution system, involving modularisation and automation, to the project.

Hong Namkoong, president and CEO of SAMSUNG E&A, said, "SAMSUNG E&A is honoured to receive this recognition, highlighting TA’ZIZ’s and our commitment to driving industrial innovation, diversifying the UAE's economy, and enabling sustainable growth. We plan to actively leverage local resources and our network of partners based on our extensive regional experience in the Ruwais Industrial Complex, UAE. This milestone underscores the power of collaboration in creating world-scale facilities that will position the UAE as a global hub for advanced methanol production.”

With emissions reduction and efficiency gains at the top of the agenda for oil and gas companies, Baker Hughes has launched three new electrification technologies for onshore and offshore operations at its 25th Annual Meeting in Florence, Italy

The Hummingbird all-electric land cementing unit is a 100% electric solution that replaces diesel engines with grid-connected or battery-powered motors. The Hummingbird’s dual-power functionality performs onshore cementing operations with lower emissions and noise levels compared to traditional solutions.

The use of electronic, rather than hydraulic components, results in lower maintenance costs and requirements while enhancing reliability in the field. Hummingbird is designed to operate in high-pressure situations and is equipped with monitoring and control systems that provide enhanced cement job control and consistency across applications.

Part of Baker Hughes’ intelligent completions portfolio, SureCONTROL Plus interval control valves (ICV) enable electrical remote operations for more efficient zonal control of both subsea and dry tree wells. These ICVs replace numerous hydraulic lines with a single electrical line, simplifying complex installations, reducing rig time and accelerating production while limiting the need for costly interventions.

SureCONTROL Plus can control a higher number of zones than traditional hydraulic ICVs for enhanced production. The digital telemetry system provides continuous data, which enables improved asset performance management and proactive maintenance of downhole tools.

Baker Hughes also announced its new all-electric subsea production system, a fully electric topside-to-downhole solution for offshore operations. This modular system allows for existing tree designs to be seamlessly updated for electric operations, while electro-hydraulic trees currently operating in mature assets can be retrofitted for full electrification. This transition will result in enhanced production control, increased reliability and lower carbon emissions throughout the life of the field. The elimination of hydraulics will also result in reduced cost, time and complexity of subsea installations.

The all-electric subsea production system is designed for shallow and deep-water developments, making it ideal for subsea carbon capture, utilisation and storage fields as well as long offset tieback applications.
“Hydrocarbons will remain key sources of global energy for decades, and it is essential that these resources are produced with minimal carbon footprint,” said Amerino Gatti, executive vice president, Oilfield Services & Equipment at Baker Hughes. “By electrifying the production value chain, we can enhance operations to be cleaner, safer and more efficient, while continuing to supply the energy required worldwide.”

Oil and gas companies are increasingly looking at electrification as a means to reduce carbon footprint. Electrification is a key plank of ADNOC’s decarbonisation strategy, for example, in the drive for net-zero emissions by 2045. Since January 2022, ADNOC has received 100% of its grid power supply from Emirates Water and Electricity Company’s (EWEC) nuclear and solar energy sources. The NOC is also constructing a US$3.8bn sub-sea transmission network, connecting ADNOC’s offshore operations to the onshore power network and displacing gas turbine generation, with the potential to reduce ADNOC’s offshore carbon footprint by up to 50%.

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

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

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

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

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

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

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

Saudi-listed ACWA Power has signed a memorandum of understanding (MoU) with Snam relating to the establishment of a supply chain of green hydrogen to Europe

This partnership will involve exploring potential collaboration and joint investments aimed at establishing an international supply chain for a dependable and cost-effective supply of green hydrogen from Saudi Arabia to Europe and evaluating the development of an ammonia import terminal in Italy to facilitate the delivery of green hydrogen through the South H2 Corridor, a 3,300 km hydrogen pipeline connecting North Africa, Italy, Austria and Germany to supply competitive renewable hydrogen to European demand clusters.

Snam, a leading European operator in natural gas transportation, storage, and regasification, aims at building a pan-European multi-molecule infrastructure, advancing energy security and the transition to Net Zero. ACWA Power is a leading developer, investor, and operator of green hydrogen and green ammonia production facilities in the Kingdom of Saudi Arabia. As a partner in the NEOM Green Hydrogen Company (NGHC), ACWA Power is setting up a US$8.5bn mega plant at NEOM to produce green hydrogen at scale for global export in the form of green ammonia. This is set to be the world’s largest green hydrogen production facility, with a production capacity of up to 600 tonnes of carbon-free hydrogen daily by the end of 2026.

“We are excited to join forces with Snam to drive significant advancements in the green hydrogen sector. With power sector emissions already down 40% compared to 20 years ago, we now need to focus our collective efforts on new, low-carbon molecules to decarbonise our sectors. Bringing our expertise together will help accelerate this process,” said Marco Arcelli, chief executive officer of ACWA Power.

Stefano Venier, the chief executive officer of Snam, added, “The EU’s ambitious decarbonisation targets need decisive action across all manufacturing sectors, utilising all available technologies in a practical, efficient and accelerated manner. Hydrogen plays a key role here, and we are glad to pursue development opportunities in this field also through agreements like the one we signed with ACWA Power: the development of the ammonia import terminal is synergic with that of the South H2 Corridor.”