In The Spotlight
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.
The project will unlock more than 600 million standard cubic feet per day (scfd) of natural gas and associated gas liquids. (Image source: Adobe Stock)
ADNOC approves US$6.2bn Umm Shaif Gas Cap project
ADNOC is accelerating its integrated global gas growth strategy with a 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, alongside its international partners TotalEnergies, Eni and China National Petroleum Corporation (CNPC)
The UAE holds the seventh-largest gas reserves in the world. As global demand for reliable, lower-carbon energy continues to grow, ADNOC is unlocking more of the nation’s gas resources and expanding its LNG portfolio to meet the needs of its domestic and international customers and power industrial and AI infrastructure growth. ADNOC’s Ruwais LNG project, under development in AI Ruwais Industrial city, is scheduled to start commercial operations in 2028. Comprising two 4.8 mtpa liquefaction trains with a combined capacity of 9.6 mtpa, it will more than double ADNOC Gas’ existing operated LNG production capacity to around 15 mtpa. ADNOC will therefore be well placed to capitalise on the growing global LNG demand, expected to increase to nearly 700 million tonnes a year by 2050, up around 65% from 2025 levels, according to Shell’s 2026 LNG Outlook.
The FID for Umm Shaif Gas Cap is the latest development in the company’s gas growth strategy and will unlock more than 600 million standard cubic feet per day (scfd) of natural gas and associated gas liquids, equivalent to almost 10% of the UAE’s current daily gas consumption by 2030. (A gas cap is the natural accumulation of gas that sits above the oil column in a reservoir).
The investment will reinforce the UAE’s energy security and its role as a reliable global energy supplier, ADNOC says. It will integrate artificial intelligence, advanced technologies and robotics solutions to enhance efficiency, reduce emissions, and accelerate value creation, leveraging synergies with existing offshore facilities and clean power from the UAE grid.
The FID for Umm Shaif Gas Cap follows the Supreme Council for Financial and Economic Affairs’ (SCFEA) award of the concession agreement for the Bab Gas Cap, which has the potential to unlock an additional 1.5 billion (scfd) of natural gas and associated gas liquids. It also builds on ADNOC’s launch of a global LNG marketing and trading platform in Abu Dhabi Global Market (ADGM), which is targeting 47 million tonnes per annum of combined marketable LNG capacity by 2035.
The FID includes three engineering, procurement and construction (EPC) packages totalling US$5.1 bn (AED18.8bn) for large-scale offshore infrastructure awarded by ADNOC to consortiums including major UAE and international contractors. The development also includes a US$365mn (AED1.3 bn) 14-well drilling and integrated drilling services programme to be delivered by ADNOC Drilling over 18 months using three existing rigs.
His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC managing director and Group CEO, said, “ADNOC is accelerating its integrated gas strategy to further harness the UAE's vast gas resources and expand our global LNG platform, as global demand for natural gas continues to rise. The Umm Shaif Gas Cap FID is another important milestone in delivering this strategy and reinforcing ADNOC's position as a reliable gas supplier. Together with our international partners, we are building on decades of responsible stewardship of Abu Dhabi’s longest-operating offshore field to unlock lasting value for the UAE and our customers."
"We are delighted to reach this important milestone together with ADNOC and our partners. Following the recent award of the Bab Gas Cap concession, this FID marks another important step in developing Abu Dhabi's significant gas resources. This development will contribute to TotalEnergies' Upstream production beyond 2030 with low-cost and low-emissions resources,” said Patrick Pouyanné, chairman and chief executive officer of TotalEnergies.
Under the contact, Halliburton will deploy intelligent automation solutions for fracturing to optimise performance in real time and support disciplined implementation across multi-well campaigns.
Halliburton scoops Aramco stimulation and completion services contract
In line with its ambitions to grow gas production by more than 60% by 2030 compared to 2021 levels, Aramco has awarded Halliburton a multi-year contract to deliver integrated stimulation and completion services for unconventional gas development in the Kingdom of Saudi Arabia
This award is part of a broader multi-billion contract, supporting one of the largest unconventional gas development programs globally, at the heart of which is the Jafurah unconventional gas development. The Jafurah field contains 229 trillion scf of gas-in-place and 75 BSTB of condensate-in-place. Production started in December 2025, with an ambition to ramp-up and deliver two billion scfd of sales gas by 2030, along with 420 million scfd of ethane, and around 630,000 barrels per day of gas liquids and condensates.
This award builds on Halliburton’s established portfolio supporting Aramco’s unconventional program. The company delivers a comprehensive suite of drilling and completion solutions across many of the Kingdom’s unconventional plays. This collaboration supports broader regional efforts toward integrated unconventional development programmes.
Operators in unconventional reservoirs and high-pressure environments require precision and speed to lower costs per well and improve production consistency. Halliburton’s hydraulic fracturing services combine reliable surface operations with scalable subsurface solutions that help reduce nonproductive time and support predictable execution.
Under the contact, Halliburton will deploy intelligent automation solutions for fracturing to optimise performance in real time and support disciplined implementation across multi-well campaigns supporting digital integration across operations while advancing efficiency and operational reliability.
OCTIV services are at the core of Halliburton’s intelligent fracturing ecosystem. OCTIV digital fracturing services enable frac automation, digital operations, and remote connectivity across all aspects of Halliburton’s hydraulic fracturing business. The services enable intelligent automation to maximise the performance and efficiency of equipment and operations. OCTIV automates digital workflows, information, and equipment across all aspects of fracture operations, for enhanced safety and efficiency.
While the Sensori fracture monitoring service is an easy to deploy, cost-effective fracture monitoring solution for continuous measurement and visualisation of the subsurface. It combines non-intrusive technologies, advanced data acquisition and processing, and real-time answers into a single, cost-effective solution that empowers operators with unparalleled visibility and control over fracture performance.
"This award highlights our long-standing collaboration with Aramco and builds on more than 80 years in the Kingdom, while advancing unconventional gas development in the Kingdom. Beginning in the third quarter of 2026, Halliburton will deploy the Kingdom’s first fully integrated intelligent fracturing platform through OCTIV Auto Frac and Sensori fracturing monitoring services to contribute to asset value for one of the world’s largest unconventional fields,” said Rami Yassine, president, Eastern Hemisphere, Halliburton.
To support development activities in the Jafurah Basin, Halliburton plans to increase its investment in local manufacturing, improve its supply chain, and expand workforce development programs within the Kingdom, in line with Vision 2030 objectives, aiming to scale operations and sustain high performance as unconventional activity accelerates.
Iraq is working to increase oil production. (Image source: Adobe Stock)
Basra Oil Company signs contract with Halliburton for two oilfields
Iraq’s Basra Oil Company (BOC) and Halliburton have signed a five-year integrated management contract for the Bin Omar and Sindbad fields in the Basra region, according to a Ministry of Oil Statement
Oil Minister Bassem Mohammed Khudair Al-Abadi said at the signing ceremony that the contract comes in the context of the ministry’s plans and strategy to increase oil and gas production.
The Minister indicated that over the five years, crude oil production in the Ben Omar field will be increased to 150,000 barrels per day, in addition to the production of 300 million standard cubic feet per day of associated gas. He added that production rates in the Sindbad field will be developed to reach 80,000 to 100,000 barrels per day, and the associated gas capacity will be increased from 240 to 260 million standard cubic feet per day, which will provide a flexible supply of gas to the country’s power sector, which currently relies heavily on imported gas.
The Minister affirmed that the Ministry is proceeding with signing contracts with major international companies, especially American companies, and that it will provide support and remove obstacles to “achieve the goals and the public interest”, noting the longstanding involvement of Halliburton in Iraq, where it has been working since 2003.
According to Reuters, Iraq’s Cabinet has approved the Basra Oil Company (BOC), to sign a heads of agreement (HoA) and a non-disclosure agreement (NDA) with a consortium comprising US-based Capital TI and Chevron, alongside Qatar’s UCC, to study strategic oil export pipeline projects. Under the agreements, the consortium will conduct technical and financial feasibility studies for proposed pipeline routes aimed at enhancing Iraq’s crude export infrastructure. The routes under evaluation include the Basra–Haditha–Kirkuk–Ceyhan corridor, which would connect southern Iraq to Turkey’s Mediterranean port of Ceyhan, and the Basra–Haditha–Baniyas route, linking Basra to Syria’s Mediterranean port of Baniyas.
The Cabinet has also 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.
The proposed pipelines are part of Iraq’s efforts to diversify its crude oil export routes and reduce reliance on the country’s southern export terminals and the Strait of Hormuz.
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. Under economic pressure due to the suspension of oil exports through the Strait of Hormuz during the recent hostilities, and 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; last year ExxonMobil signed an agreement with the Iraq government to develop the supergiant Majnoon oilfield, bp signed an agreement for the redevelopment of oilfields at Kirkuk, and Chevron is looking to take over from Lukoil as operator of the West Qurna Field.
The project will boost gas output from the Bahr Essalam gas field. (Image source: Adobe Stock)
Eni and Libya's NOC launch Sabratha Compression Project
Eni, in partnership with the Libyan National Oil Corporation (NOC) through the Mellitah Oil & Gas joint venture, has started hydrocarbon production enabled by the Sabratha Compression Project, a strategic offshore development designed to boost gas output from the Bahr Essalam gas field, located around 100 km off the coast
The Sabratha Compression Project consists of the installation of a new 1,600-ton compression module on the Sabratha platform, equipped with new compression trains, providing an overall compression capacity of about 440 MMscfd.
The new module enables production under low-pressure conditions, offsetting the natural decline of the Bahr Essalam field and maximizing gas recovery, ensuring increased volumes of gas of about 800 million cubic metres per year and associated condensate. This additional production will play a critical role in sustaining national power generation, thus contributing to Libya’s energy security, and supporting export to Italy via the Greenstream pipeline.
Exploration activities yielded positive results in March 2026 with the Bahr Essalam South 2 (BESS 2) and Bahr Essalam South 3 (BESS 3) offshore discoveries. Preliminary estimates indicate that these discoveries jointly contain more than 1 Tcf of gas in place. Their proximity to the existing production facilities of the Bahr Essalam field will ensure a fast-track development.
Two additional strategic projects are presently in execution in the country: Bouri Gas Utilization Project, whose tie-in and commissioning activities are currently underway after the recent installation of the Bouri Gas Recovery Module, and Structures A&E, involving the development of two offshore gas fields.
Eni has been present in Libya since 1959 and is the country’s leading international operator, with an equity production of approximately 162,000 barrels of oil equivalent per day in 2025 and three development projects currently in execution for a total investment of about US$10bn.
Libya’s efforts to boost oil and gas production following years of civil war have met with considerable success. Sirte Oil Company for Production and Manufacturing of Oil and Gas has recently successfully returned well J-03 in the Metkhendoush field to production. This follows the completion of the installation and commissioning of an electric submersible pump (ESP) artificial lift system, as part of the company’s efforts to maintain production rates and increase the production capacity of its oil fields, through well development and rehabilitation programmes, as well as improved operational efficiency.
The NOC’s crude oil production has now reached around 1.3-1.4mn bpd, the highest level since 2013, and well on the way to its goal of producing 1.6mn bpd by the end of 2026, rising to 2mn bpd in the medium term.
Demand for LNG is forecast to rise sharply. (Image source: Adobe Stock)
Global LNG demand forecast to grow by 65% by 2050
Shell’s LNG Outlook 2026 highlights the strong growth in global LNG demand as well as the increased resilience of the LNG market
Global demand for liquefied natural gas (LNG) is expected to increase to nearly 700 million tonnes a year by 2050, an increase of around 65% from 2025 levels, according to the Outlook,
LNG remains a core pillar of the global energy system, with demand driven by Asian economic growth and intensifying energy security risks.
Disruption to shipping through the Strait of Hormuz as a result of the Middle East crisis has shut in around one fifth of the world’s monthly LNG supply since the conflict started, pushing up prices on the spot market and adversely affecting some countries in Asia.
This loss of supply has been partially offset by the ramp up of new liquefaction facilities in North America, improved performance at existing plants and reduced Asian imports of LNG. As a result, total LNG trade in 2026 could be similar to last year, when 422mn tonnes of LNG was traded, if shipping through the Strait of Hormuz returns to normal this summer, before returning to growth in 2027.
“The conflict created a system-wide shock with disruption cascading across all segments of the economy, but the LNG industry has proved resilient and able to adapt to changing market conditions,” said Cederic Cremers, President of Integrated Gas at Shell. “While more investment in both supply and demand infrastructure is needed, the long-term outlook remains strong and LNG will continue to be a stabilising force in the global energy system.”
Supply growth
Around 180 million tonnes of annual new supply is forecast to enter the market by 2030, improving the availability and affordability of gas and opening up demand in new markets. The USA continues to lead new LNG supply growth.
However, the ability to benefit from new supply will depend on the availability of infrastructure in importing countries, including regasification capacity and pipeline connectivity, especially in South and Southeast Asia.
Those regions are forecast to account for around 40% of global LNG imports by 2050 to meet rapidly growing demand for energy with lower emissions than coal. In more mature Asian markets such as Japan, data centres are emerging as a new source of power demand.
Emerging segments of demand are also growing rapidly. According to forecasts, LNG bunkering will grow seven-fold to 27 million tonnes by 2035. LNG will continue to have a vital role to deliver energy security to Europe, to balance intermittent renewables as domestic gas production declines.
To meet the growing demand, significant additional investment will be needed in new LNG liquefaction plants through the 2030s and 2040s, with around 200 million tonnes a year of new supply needed, in addition to projects already under construction.
A more resilient market
Although spot prices of LNG in Asia increased to more than US$20 per million British thermal units (MMBtu) at the peak of the Middle East crisis, they remained significantly lower than in 2022 when gas supplies were disrupted following the Russian invasion of Ukraine, reflecting the greater resilience of the LNG market now.
With long-term supply agreements accounting for around two thirds of total LNG trade, the average price that buyers paid for LNG in May was around US$11-12 per MMBtu, compared to US$7-11 in January before the conflict began.
SLB will establish a facility in Ahmadi Innovation Valley. (Image source: SLB)
SLB lands KOC technology contract
SLB has been awarded a seven-year contract by Kuwait Oil Company (KOC), which will see the company work with KOC to evaluate, test and deploy advanced technologies across its operations as well as establishing a new facility in Ahmadi Innovation Valley (AIV)
The agreement, under the AIV initiative, will support applied research, technology deployment and digital innovation programmes aligned with Kuwait's long-term energy objectives. Areas of focus include artificial intelligence (AI), industrial internet of things (IIoT) applications, production optimisation, reservoir technologies, water management and energy transition initiatives.
Ahmadi Innovation Valley is KOC's flagship innovation initiative that brings together industry, academia and technology providers to address strategic upstream technical challenges, with specialised facilities and technical teams focused on applied research, advanced technologies and operational excellence.
Under the agreement, SLB will establish a dedicated Ahmadi Innovation Valley facility in Kuwait, with construction expected to begin in 2026 and opening planned for 2028.
"Ahmadi Innovation Valley represents an important step in advancing technology leadership across Kuwait's energy sector," said Ahmad Jaber Al-Eidan, chief executive officer, Kuwait Oil Company. "Through collaboration with leading technology partners, we are accelerating technology deployment, strengthening local capabilities and expanding knowledge transfer to support Kuwait's energy industry."
"The energy industry has no shortage of technology. The challenge is deploying it at scale and turning innovation into operational impact," said Olivier Le Peuch, chief executive officer, SLB. "Ahmadi Innovation Valley brings together technology providers, researchers and operational teams to accelerate the evaluation, deployment and scaling of new solutions across KOC's operations. We are proud to contribute our technology, domain expertise and global experience while helping strengthen local capabilities and support the next generation of Kuwaiti talent."
SLB and KOC have a long history of collaboration going back more than 85 years. Most recently Kuwait Oil Company awarded SLB a US$1.5bn, five-year integrated contract in February this year for the Mutriba field, including design, development and production management. The work builds on SLB’s subsurface characterisation of the Mutriba field to support development planning and execution across deeper, technically demanding reservoir conditions. The contract covers development of high-pressure, high-temperature reservoirs with sour conditions.
Expanding the use of digital technologies
Kuwait Oil Company (KOC) is committed to expanding the use of digital and advanced technologies. In an interview with Oil Review Middle East, KOC’s CEO Ahmad Jaber Al- Eidan, said KOC has established an Innovation and Digitalization Team to co-ordinate enterprise- wide initiatives, including the integration of AI, advanced analytics, real-time monitoring, workflow automation and remote operations across the upstream value chain. For example, AI- powered drilling optimisation tools and predictive models for equipment reliability and well performance have been deployed to improve operational outcomes.
The Kuwait Integrated Digital Field (KwIDF) system has enabled real-time surveillance and faster data-driven decision making across operations. Smart field solutions are also being scaled across key assets.
A dedicated AI centre has been launched to optimise operational planning, assist in reservoir modelling, forecast ESP and equipment failures, enhance drilling performance and improve supply efficiency, while generative AI and advanced analytics are being embedded into workflows, supported by partnerships with leading technology providers.
“Looking ahead we are focused on piloting and scaling advanced digital solutions across all areas of our business, embedding those innovations within our operations and planning frameworks to ensure long-term scalability and aligned with our broader innovation and sustainability goals,” Al-Eidan said.