In The Spotlight
Amin H. Nasser, CEO of Aramco. (Image source: Aramco)
Aramco records surge in profits in the face of regional disruption
Aramco has recorded a sharp increase in Q2 profits thanks to elevated oil prices as a result of the Middle East crisis and its ability to bypass the Strait of Hormuz by diverting exports via the East-West pipeline
Highlights of Aramco’s Q2 /H1 results
• Aramco recorded Q2 profits of US$33.4bn compared with US$25.2bn in the first quarter of 2025, a rise of 33%. Profits for the first six months stood at US$67.2bn compared with US$52bn in the corresponding period of 2025.
• Revenues for the second quarter of 2026 were US$139. 146bn compared with US$124.496bn for the first quarter, mainly due to higher prices of refined and chemical products and crude oil, partially offset by lower volumes sold of crude oil and refined and chemical products.
• The board declared a second-quarter base dividend of US$21.9bn, payable in the third quarter.
• Oil production stood at 9.5mn bpd in the second quarter compared with 12.6mn bpd in the first quarter, reflecting the shutting in of production as a result of the closure of the Strait of Hormuz
• Capital expenditure for the first half of 2026 was US$20.175bn, an increase of 5.3% compared with 2025, mainly due to continuing development activity on major strategic gas projects to increase gas production capacity by around 80% by 2030 compared with 2021 levels, and phasing of crude oil increments related to maintaining maximum sustainable capacity (MSC) at 12mn bpd.
Resilience in the face of regional disruption
Aramco’s CEO Amin H. Nasser commented that the company’s performance has been defined by the resilience of its people and the agility of its business and operations to withstand and respond to rapidly changing market conditions.
“Despite the unprecedented supply disruption through the Strait of Hormuz, we continued to demonstrate our ability to maintain business continuity by capitalising on our diverse asset base and multi-decade planning, including strategic infrastructure such as the East-West Pipeline, storage capacity, and export terminals.
“That enabled us to sustain production and exports while advancing key projects, despite the challenging regional environment.”
Aramco was able to keep the oil flowing by redirecting around 70% of its oil through the East-West pipeline which runs from the Abqaiq oilfield in Eastern province to Yanbu on the Red Sea, maintaining exports at a maximum capacity of 7mn bpd. Aramco maximised throughput and exports from its west coast refineries and terminals to capture higher margins.
Through its operational flexibility, extensive domestic and international infrastructure, integrated supply chain capabilities and well-established business continuity plans, Aramco effectively managed regional challenges while maintaining operations.
“We have entered the second half of the year with solid financial and operating momentum with one of the strongest balance sheets in the sector, sustainable and progressive base dividend distributions, and a clear focus on our strategic growth objectives,” Nasser continued. “Even through periods of uncertainty, Aramco has stayed anchored to its long-term priorities. Our disciplined execution, combined with our lower-cost and higher-reliability operations, has supported our profitability.”
Aramco comments that the market demand for liquids remains resilient, and as oil flows improve, previously constrained demand is expected to recover, supporting stronger oil demand. Additional call for crude is expected from inventory replenishment and the filling of new commercial and strategic storages. The company is well-positioned to capture higher demand post-Strait of Hormuz opening for inventory replenishment and offsetting lost supply, it says.
Operational highlights
Oil
• Construction activities continued on the Zuluf crude oil increment, which is expected to process 600mn bpd of crude oil from the Zuluf field in 2026
• EPC activities progressed for phase two of the Dammam development project, which is expected to be onstream in 2027, adding crude oil production capacity of 50mn bpd.
Gas
• Phase one of The Jafurah gas plant maintained steady production of sales gas and condensate, while procurement and construction continued for Phase 2, including the construction of the Riyas NGL fractionation plant targeted for completion in 2027
• The Fadhili gas plant expansion construction activities continued, which is to provide an additional gas processing capacity of 1.5bscfd by 2027.
Downstream
• Aramco continued to leverage the East-West pipeline and enhance its west coast export infrastructure to increase supply flexibility, and the Yanbu export terminal was repositioned as a strategic hub for western regional shipments. Aramco continued to pursue major downstream projects.
ADNOC is combining the expertise of its people, deep operational experience, cross-functional collaboration and advanced technologies to accelerate well delivery. (Image source: Adobe Stock)
ADNOC accelerates well delivery with new performance standard
ADNOC has reported that it has achieved a new well delivery performance standard, routinely drilling well sections exceeding one mile in length within a single day in some of the UAE’s most complex carbonate rocks, including 6,428 feet drilled in 24 hours
The achievement reflects ADNOC’s commitment to operational excellence and its ability to combine the expertise of its people, deep operational experience, cross-functional collaboration and advanced technologies to accelerate well delivery, bringing energy online faster and supporting capacity growth more efficiently, the company says.
This is grist to the mill as the UAE looks to ratchet up oil production to 5mn bpd by 2027 and accelerate its integrated global gas growth strategy, as illustrated by the recent US$6.2bn (AED22.6bn) final investment decision (FID) to develop the Umm Shaif Gas Cap in the Umm Shaif and Nasr offshore concession, Abu Dhabi. Further increases in oil production could be on the cards following the UAE’s exit from OPEC, which leaves it untrammelled by OPEC production quotas.
Improving performance
Playing a critical role in ADNOC’s transformation is its Real-Time Intelligence Centre (RTIC), where engineers, operational specialists and subsurface experts work together to optimise performance, support faster, smarter decision-making and apply lessons learned from one well to the next, leveraging live data, advanced analytics and frontline experience. Every well generates thousands of data points and valuable operational insights. By combining these insights with the expertise of its people and advanced digital capabilities, ADNOC is continuously improving performance, accelerating learning and unlocking greater operational efficiencies, while maintaining the highest standards of safety and environment protection.
Dr. Ahmed Mohamed Alebri, CEO of ADNOC Onshore, said, “Technology, data and collaboration are helping us continuously improve performance across our operations. By combining ADNOC Onshore’s deep understanding of our reservoirs with ADNOC Drilling’s world-class capabilities, we are unlocking greater value from every well, accelerating the delivery of production capacity and bringing energy to market more efficiently in support of ADNOC’s growth ambitions.
Abdulla Ateya Al Messabi, CEO of ADNOC Drilling, added, “Every well teaches the next. Every operation generates new insights that help improve the one that follows. By combining AI, real-time intelligence and decades of operational experience, we are creating a continuous improvement engine that is transforming performance across our business. The result is safer operations, smarter execution, faster well delivery and more value from every well as we help power the UAE’s energy future.”
ADNOC Drilling, which has just reported record 1H revenue and profits, acknowledges its technology-led growth strategy and automation-led productivity among the factors behind its success. It recently deployed the first AI-enabled, fully automated walking island rig, which combines advanced automation, digital systems and hybrid power capability, improving utilisation and reducing delivery times and unit costs. Together with five additional planned island rigs, it is expected to support future offshore expansion, revenue growth and value creation.
Embedding AI throughout the value chain
These developments all feed into the advancement of ADNOC’s ambition to become the world’s most AI-enabled company, as it works to embed AI right across its value chain. Critical to this has been the development and deployment of ENERGYai, in collaboration with G42, IAQ and Microsoft, a first-of-its-kind agentic AI solution, which is being rolled out across all ADNOC’s upstream assets. Built on 70 years of proprietary data and knowledge, it combines large language model (LLM) technology with cutting-edge agentic AI, which is trained for specific workflows across ADNOC’s upstream value chain. It brings a new level of efficiency and precision to critical tasks, from seismic analysis to geological modelling and real-time process monitoring, reducing time for essential business processes from months to days, minimising cost, and reducing emissions in the process. The agents harness state- of-the-art machine learning and predictive analytics, improving decision-making and operational efficiency.
solids control remains one of thSolids control is one of the most critical elements of well construction. (Image source: Adobe Stock)
A system-based approach for solids control
Othman Soliman, founder, SC DrillTech, explains why treating solids control as an integrated processing system rather than as a collection of individual equipment can lead to meaningful gains in drilling performance, cost control and operational efficiency
In drilling operations worldwide, solids control remains one of the most critical yet frequently misunderstood elements of well construction. For decades, operators and contractors have evaluated solids control performance through the narrow lens of individual equipment: shaker screen API ratings, hydrocyclone separation cut points, or centrifuge bowl speed. While these metrics are not without value, they reveal only fragments of a much larger picture. The reality is that solids control must be measured, managed, and optimised as an integrated system — not as a collection of standalone machines.
The pitfalls of siloed metrics
When a rigsite team focuses solely on individual equipment performance, the results can be deceptively reassuring. A shale shaker may be running at its rated capacity, hydrocyclones may be delivering the expected underflow density, and the centrifuge may be operating within manufacturer specifications — yet the drilling fluid remains laden with fine solids, dilution rates are climbing, and non-productive time (NPT) is increasing.
This paradox occurs because each piece of solids control equipment is designed to remove a specific particle size range within a continuous processing chain. Shakers address the coarse fraction, hydrocyclones (desanders and desilters) target the medium range, and centrifuges handle the fine and ultra-fine solids. If any stage is misaligned — whether through improper feed distribution, incompatible screen selection, or fluid rheology that overwhelms downstream units — the entire system fails to deliver its collective potential.
The system approach: fluid volume, solids loading and retention time
A system-based evaluation begins with three fundamental parameters:
• fluid volume processed
• solids loading at each stage, and
• retention time across the surface system.
First, the total circulating volume must pass through the solids control equipment in a manner that matches each unit's design capacity. Overloading the shaker with high flow rates forces fine solids past the screens and into the active system, increasing the burden on hydrocyclones and centrifuges that were never intended to handle such volumes. Conversely, underutilisation of equipment leads to poor agitation and settling, creating dead zones where solids accumulate.
Second, solids loading must be tracked progressively. The mass of solids removed by the shaker directly influences the efficiency of the hydrocyclone bank. If the shaker is not removing coarse solids effectively, hydrocyclone nozzles plug prematurely, cone pressure drops, and separation efficiency collapses. Similarly, if hydrocyclones fail to remove medium solids, the centrifuge is forced to process a higher concentration of solids than its design allows, increasing wear and reducing fluid recovery.
Third, retention time across the surface system determines whether solids have sufficient opportunity to be removed before re-entering the wellbore. A system with inadequate surface volume, poor compartment agitation, or bypassed equipment will recirculate drilled solids regardless of how well individual units perform in isolation.
Impact on drilling performance and cost
Measuring solids control as a system directly affects two of the most closely watched metrics in drilling economics:
• rate of penetration (ROP) and
• dilution cost.
Excessive fine solids in the drilling fluid increase plastic viscosity and yield point, creating a thicker fluid column that reduces hydraulic efficiency at the bit. The result is lower ROP, higher equivalent circulating density (ECD), and an elevated risk of lost circulation or wellbore instability — particularly in the narrow margin windows common to deepwater, high-pressure high-temperature (HPHT), and unconventional formations globally.
From a cost perspective, every barrel of fluid diluted to control solids concentration represents a direct expense. When the solids control system operates as a cohesive unit, the volume of dilution required drops significantly. Field data from operations across multiple continents has consistently shown that improving overall system efficiency — rather than upgrading a single piece of equipment — yields the greatest reduction in dilution volumes and associated disposal costs.
Practical implementation on the rig
Transitioning to a system-based approach does not require capital-intensive overhauls. It begins with baseline measurements: capture the mass and particle size distribution of solids removed at each stage, compare it to the theoretical solids generated by the bit, and identify gaps.
Next, ensure that equipment is sequenced and sized correctly for the anticipated solids profile. A high-rate well in unconsolidated sands requires a different shaker screen and hydrocyclone configuration than a directional well in hard limestone. Fluid rheology must be managed to support — not hinder — mechanical separation.
Finally, establish clear accountability across the rigsite team so that solids control is treated as a shared objective rather than the sole responsibility of the mud engineer or solids control technician.
For operators and drilling engineers looking to stay ahead of evolving solids control practices, further technical resources and insights into system optimisation are available at SC DrillTech (https://scdrilltech.com), where continuous field-based research on solids control development is published to support industry advancement.
Conclusion
The complexity of modern drilling environments worldwide demands a shift in how solids control performance is judged. Individual equipment metrics will always have their place, but they cannot tell the full story. Only by evaluating shakers, hydrocyclones, centrifuges, and drilling fluids as a single, interdependent processing system can operators unlock meaningful gains in drilling performance, cost control, and operational efficiency. The question is no longer whether each machine is working — it is whether the system as a whole is winning.
Othman Soliman is the founder of SC DrillTech, an independent technical platform dedicated to Solids Control and Drilling Waste Management, with over 25 years of international field experience.
Middle East assets face the threat of corrosion. (Image source: Adobe Stock)
CorrosionRADAR launches new corrosion monitoring sensor solution
CorrosionRADAR has launched its CR:SR sensor solution, a new short-range sensor technology that expands its corrosion under insulation (CUI) intelligence portfolio and helps to transform CUI management from a reactive inspection activity into a proactive intelligence-led approach
The corrosion threat
Corrosion is an ever-present threat to asset integrity in the oil and gas industry, with industry studies estimating the global cost of corrosion exceeds $2.5 trillion annually. In the Middle East, the prevalence of sour gas, the increasing use of corrosive chemicals to enhance production and the push into high pressure, high temperature environments means that the corrosion threat is only intensifying in the region.
CUI, which is a particularly insidious form of corrosion as it is difficult to detect at an early stage, occurs due to moisture build up on the external surface of insulated equipment and structures, and is prevalent in the onshore and offshore oil and gas industries.
The benefits of predictive corrosion monitoring
Predictive corrosion monitoring solutions facilitated by advances in AI and digital technologies can help operators proactively manage their corrosion challenges and protect their assets, allowing them to monitor and predict risk remotely and make data-driven decisions, saving time and money, while enhancing safety and ensuring the longevity of critical infrastructure.
CorrosionRADAR is using this approach to transform CUI management with continuous monitoring and intelligence-based analytics that save time, improve uptime and reduce the risk of catastrophic failures.
Aramco for example is using CorrosionRADAR's CUI monitoring solution at its Ju'aymah NFL fractionation plant to monitor its assets and provide insights into the early and predictive detection of CUI, enabling plant engineers to address CUI issues more rapidly, improving safety and reliability, optimising inspection planning, and reducing the overall costs associated with future maintenance and shutdowns.
Remote sensor-enabled CUI monitoring programs help operators focus resources on the locations that matter most while reducing unnecessary inspection costs and operational disruption.
Targeted, localised monitoring
The new shortwave CR:SR sensor solution has been developed for targeted, localised monitoring without the need to remove insulation. It complements CorrosionRADAR’s existing CR:LR solution, which delivers permanently installed, long-range monitoring across vessels, columns, tanks, and other complex assets.
The sensor passes monitoring data to the AI-informed CR:CLARITY software for consolidation, analysis and reporting.
Together, the CR:LR and CR:SR sensors address the challenges of traditional inspection programmes by providing continuous visibility between inspection campaigns. CUI data is constantly collected and analysed by the CR:CLARITY software, enabling operators to prioritise inspection activity based on changing risk conditions rather than fixed inspection intervals.
Dr. Chiraz Ennaceur, chief executive officer at CorrosionRADAR, said, "At CorrosionRADAR, we recognise that every asset presents a different CUI challenge. Some assets require broad coverage across large areas, while others benefit from targeted monitoring of specific high-risk locations. By expanding our portfolio to include the CR:SR sensor solution and bringing all monitoring data together through CR:CLARITY, operators gain greater flexibility in how they monitor CUI while maintaining a single view of risk across their assets."
By combining multiple monitoring strategies through a single source of CUI intelligence, CorrosionRADAR aims to help operators move towards predictive, prescriptive, and ultimately more autonomous asset integrity management.
Türkiye’s TPAO acquires stake in Kirkuk redevelopment project
In a further boost for Iraq's oil and gas development prospects, Türkiye Petrolleri Anonim Ortaklığı (TPAO) is acquiring a 15% interest in BP Energy Company of Kirkuk Limited (BP ECKL), which is redeveloping several major oil and gas fields in the promising Kirkuk region of northern Iraq
Signed during the official visit of Iraqi Prime Minister Ali Al-Zaidi to Türkiye, the move builds on the strategic cooperation Memorandum of Understanding (MoU) signed by bp and Türkiye's national oil company in February 2026, and follows ConocoPhillips' recent acquisition of a 42% interest in BP ECKL. The two acquisitions bring together partners with complementary capabilities and expertise together with bp to support the next phase of redevelopment in Kirkuk. Following completion of the transaction, bp will remain the majority shareholder in BP ECKL with 43%.
Vast potential
Kirkuk, once among the most prolific regions globally, has vast potential, with a combined resource opportunity estimated at up to 20 billion barrels of oil equivalent.
bp received final government ratification for its contract to invest in the redevelopment of several giant oil fields in Kirkuk in March 2025, when bp said the investment will bring opportunity and growth to the Kirkuk region, as well as improving supply chain capability alongside job creation. Then bp executive vice president William Lin commented that the opportunity is fully in line with the company’s priority of pursuing new growth opportunities for bp as it strengthens and high-grades its portfolio across the world.
The contract between North Oil Company (NOC), North Gas Company (NGC) and bp includes the rehabilitation and redevelopment of the fields alongside investment in existing gas processing facilities, spanning oil, gas, power and water with potential for investment in exploration.
The Development and Production Contract covers an initial phase of oil and gas production of more than 3 billion barrels of oil equivalent from the Baba and Avanah domes of the Kirkuk oil field and the adjacent Bai Hassan, Jambur and Khabbaz fields in Federal Iraq, all currently operated by the North Oil Company (NOC) and North Gas Company (NGC). The contract area also includes additional exploration potential.
bp is drawing on its experience elsewhere in Iraq in developing Kirkuk, notably at the supergiant Rumaila field in southern Iraq, where with its partners it has helped to deliver a 40% increase in production since 2010. bp says it aims to grow a similar, modern upstream oil and gas industry centred around Kirkuk, bringing in technologies that transformed operations at Rumaila, such as real-time monitoring and digital surveillance. These can help to optimise well performance, predict and avert production issues, and facilitate data-driven decision making.
Chief executive officer Meg O’Neill said, “TPAO has been a trusted partner for more than 30 years through our work together across the Caspian region. This agreement builds on that long-standing relationship and, alongside our partnership with ConocoPhillips, positions us strongly for the next phase of redevelopment in Kirkuk. Kirkuk is a world-class resource base that can support Iraq's long-term energy ambitions, and we look forward to working closely with the Government of Iraq and our partners to deliver the next phase of redevelopment."
bp has a longstanding relationship with Iraq spanning more than a century with an involvement in both the north and south of the country. bp’s predecessor helped Iraq to locate, produce and export oil from Baba Gurgur in Kirkuk, one of the largest oilfields in the world at that time.
Kuwait Oil Company signs US$16bn pipeline deal with investors
Kuwait Oil Company (KOC), the upstream subsidiary of Kuwait Petroleum Company (KPC), has signed a US$16bn lease-and-lease-back agreement with a consortium of international investors involving its entire domestic and export pipeline network, representing the largest foreign direct investment in Kuwait’s history
The transaction will involve the formation of a Kuwaiti-incorporated joint venture, which will lease from KOC the usage rights to all of its 13 pipelines, spanning around 320 km of Kuwait’s pipeline network. The JV will lease back to KOC the exclusive use, operational and maintenance rights in the pipeline assets for a period of 20 years and sixth months, in exchange for a volume-based tariff.
KOC and the consortium, comprising Blackstone, Brookfield and KKR, will establish the new joint venture, with KOC holding a 51% majority stake and the consortium holding the remaining 49%. KOC will continue to maintain full ownership and operational control of the pipeline network.
The JV is expected to generate upfront proceeds of US$7.85bn for KOC upon closing.
Why is the deal significant?
• It will support Kuwait Petroleum Company’s capital expenditure plans, including its target of 4mn bpd of crude oil production capacity by 2035; contracts recently reported include a contract worth KD35mn ($113mn) to Chinese group Anton Oilfield Services DMCC to deliver maintenance services for Jurassic Production Facilities (JPF) 1, 2 and 3 in North Kuwait, as KOC seeks to maintain and optimise its production facilities and strengthen operational performance.
• It supports Kuwait's broader efforts to diversify sources of capital and deepen engagement with global investors.
• As the largest foreign direct investment in Kuwait's history, it reflects the quality of KOC's asset base, the strength of KPC’s operational stewardship, and the enduring appeal of Kuwait as an investment destination.
• As one of the first major inward investments in the Gulf region since the onset of recent tensions, it reflects the confidence of global institutional investors in Kuwait and KPC despite the regional tensions. Blackstone is reported to be setting up an office in Kuwait through the Kuwait Direct Investment Promotion Authority (KDIPA) as part of a wider GCC expansion drive. Kuwait’s latest sovereign debt issuance raised US$6bn, with investor demand driving the combined orderbook to more than $14.75 billion across the three-tranche issuance.
• Beyond its immediate proceeds, the JV is intended to encourage further participation by global investors in the national economy, in line with KPC's development plan and Kuwait's long-term diversification agenda.
The transaction follows similar deals concluded by other Gulf NOCs including Aramco, which signed a lease and leaseback deal involving its Jafurah gas processing facilities with a consortium of international investors last year. Aramco closed the transaction to lease and lease back the development and usage rights to the Jafurah Field Gas Plant and the Riyas NGL Fractionation Plant to the Jafurah Midstream Gas Company (JMGC) for a period of 20 years, selling a 49% equity interest in JMGC to a consortium of international investors led by BlackRock’s Global Infrastructure Partners for US$11.1bn.
Prior to that, Aramco concluded a similar arrangement for its pipeline network in 2022, whereby a group of investors acquired a 49% stake in Aramco Gas Pipeline Company for US$15.5bn. Under this arrangement, Aramco Gas Pipelines Company receives a tariff payable by Aramco for the specified gas products that flow through the network, backed by minimum commitments on throughput. Aramco retains a 51% majority stake. As with the Kuwait deal these arrangements allow Aramco to maintain full operational control of its facilities while monetising its assets.
Shaikh Nawaf Saud Al-Sabah, Deputy Chairman and CEO of KPC, said, "Project Peregrine represents the largest foreign direct investment in Kuwait's history and a defining milestone for our country's economic development. It delivers on the commitment announced by His Highness the Prime Minister Shaikh Ahmad Abdullah Al-Ahmad Al-Sabah at the Kuwait Oil & Gas Show (KOGS) in February 2026 to attract world-class international investors into Kuwait's strategic infrastructure while preserving full national ownership and operational control.
"We are pleased to welcome Blackstone, Brookfield and KKR as long-term partners in this landmark transaction. Their investment reflects confidence in Kuwait's resilience, the quality of KPC's assets and our long-term vision for the country's energy sector.
"This transaction sends a powerful signal that Kuwait continues to rise as an attractive destination for global capital, even amid a challenging regional environment."
Iraq boosts co-operation with US companies for oil and gas development
Around US$200bn worth of deals were signed between the Iraq’s Ministry of Oil and American companies during the visit of Iraqi Prime Minister Ali AlZaidi to the USA, as Iraq seeks to grow oil production and address the shortfall of domestic gas production required to power the grid
Speaking during an interview on Al-Iraqiya News, the Minister confirmed that the agreements concluded during the Prime Minister’s visit will significantly boost crude reserves, increase production and provide employment and technical training opportunities across the country.
Pursuing alternative export routes
They include agreements for the revival of a pipeline running from Kirkuk in northern Iraq through Syria to the port of Baniyas, thereby enabling Iraqi oil to be exported without transiting the Strait of Hormuz.
Chevron is reported to be forming a consortium with US-based TI Capital and a group owned by the Syrian-Qatari Al-Khayyat brothers to establish the pipeline network, following the signing of a co-operation agreement between Iraq and Syria to reconstruct the defunct Iraq-Syria crude oil pipeline.
Oil-dependent Iraq is actively pursuing alternative export routes, having seen production drop by more than half with the closure of the Strait of Hormuz, throwing it into severe economic difficulties. Around 90% of its output passed through the Strait before the conflict. The Basra–Haditha–Kirkuk–Ceyhan route is also being considered, which would connect southern Iraq to Turkey’s Mediterranean port of Ceyhan. Earlier this month, the cabinet authorised Basra Oil Company to sign a consultancy services contract with US engineering firm KBR for the proposed Basra–Haditha oil pipeline project, supporting the technical development of the planned export route. Iraq is also looking to export crude oil and naphtha by trucks, through ports in Syria.
Iraq, OPEC’s second largest producer, has a sustainable capacity of 4.9mn bpd and is reported to have ambitions to raise production to 7mn bpd. With the oil and gas sector still accounting for 53% of GDP, 88% of revenues and 91% of exports according to the World Bank, Iraq is reported to be lobbying for an increase in its OPEC quota, currently standing at 4.3mn bpd. Major development and rehabilitation of oilfields is underway with the participation of international oil companies.
Progressing development of Kirkuk oilfields
Also signed during the Iraqi Prime Minister’s visit was an agreement between ConocoPhillips and bp for ConocoPhillips to acquire a 42% interest in BP Energy Company of Kirkuk Limited (BP ECKL), supporting the ongoing redevelopment of four large-scale, currently producing oil fields in the Kirkuk area of northern Iraq. BP ECKL holds the Development and Production Contract (DPC) which covers an initial phase of oil and gas production of more than three billion barrels of oil equivalent from the prolific Baba and Avanah domes of the Kirkuk oil field and the adjacent Bai Hassan, Jambur and Khabbaz fields in Federal Iraq, all currently operated by the Northern Oil Company (NOC). The contract area also includes additional exploration potential.
Ryan Lance, chairman and chief executive officer said, “Consistent with our focus on capital discipline, we see an opportunity to create value through a capital-efficient redevelopment program that leverages a large existing production base, while also offering meaningful exploration upside. We look forward to working with bp and the Government of Iraq to support the continued redevelopment of these historically significant fields in an important energy-producing region.”
bp agreed terms with Iraq for the development of the Kirkuk oilfields in early 2025. Chief executive officer Meg O’Neill said, “Kirkuk is a world-class resource base that can support Iraq’s long-term energy ambitions while creating value for both the country and bp.”
During the Iraqi Prime Minister's visit, Chevron also signed agreements to further develop the West Qurna 2 and Nasiriyah oilfields in Iraq.
While Halliburton has been awarded a contract by Basra Oil Company (BOC) to provide Integrated Field Management Services (IFMS) and Engineering, Procurement, and Construction Management (EPCM) for the development of the Bin Umar and Sindbad oil and gas fields in southern Iraq.The contract scope includes field development planning, production optimisation, digital solutions, and EPCM services for the two fields.
The Bin Umar and Sindbad development program is designed to increase oil production and expand the capture and use of associated gas for domestic supply. BOC estimates oil production could reach approximately 150,000 barrels per day and 300 million standard cubic feet of associated gas from Bin Umar field during the first five-year development phase. The project supports Iraq’s efforts to strengthen energy security and reduce reliance on gas imports, with current domestic gas production insufficient to power the grid.