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Egypt's Ministry of Petroleum and Mineral Resources has announced that Khalda Petroleum Company has made three new oil and gas discoveries in the Western Desert

According to a ministry statement, the discoveries are expected to produce nearly 12mn barrels of oil equivalent and 4mn barrels of recoverable reserves.

The ministry said the three discoveries are estimated to produce 2,750 barrels of oil and condensates and 20mn cubic feet of gas per day.

The discoveries will raise the gas production of Khalda Petroleum Company, a joint venture between the Egyptian General Petroleum Corporation and US Apache Corporation, to over 480mn cubic feet.

At its General Assembly meeting in March, Khalda Petroleum Company chairman Saeed Abdel Moneim said the company is planning to invest around US$1bn during FY 2024/25 and achieved 10 oil discoveries during the first half of the current fiscal year, which have added reserves estimated at approximately 35mn barrels of oil equivalent (mmboe).

This year has seen a high level of exploration and production activity in Egypt. Earlier this year, bp announced it had discovered substantial oil and natural gas reserves in the King Mariout offshore block in the northern Mediterranean. bp also announced the start of production ahead of schedule from the second development phase of the Raven field, part of the West Nile Delta (WND) project offshore Egypt, in late February. The project involves the subsea tieback of additional Raven infill wells to its existing onshore infrastructure. The new wells are expected to produce around 220bn cubic feet of gas and 7mn barrels of condensate.

In January, ExxonMobil Egypt, a subsidiary of U.S. oil giant ExxonMobil, announced it had made a gas discovery as part of a drilling campaign in the North Marakia Block offshore Egypt.

The Ministry of Petroleum and Mineral Resources is currently evaluating bids for 13 exploration and production areas, with offers totalling more than US$700mn in expected investments. These cover four blocks in the Mediterranean, and nine blocks onshore. The ministry is reported to be preparing to launch new investment opportunities, including additional exploration areas and mature fields, through the open acreage system. It is actively encouraging international energy companies to boost production by leveraging advanced technologies.

Saudi Aramco’s suspension of over 30 jackup contracts by up to one year is a factor behind the tailing off in demand in the offshore rig market, according to new research from Westwood

This suspension is related to the deferral of some expansion projects following the decision to maintain maximum sustainable capacity at 12 mn bpd rather than raise it to 13mn bpd as originally planned.

Other factors behind the dampening of offshore rig market demand are the entry of newbuild rigs in the market and the deferment of several long-term deepwater drilling and P&A projects.

With the combination of a drop in demand and increase in supply, marketed utilisation fell to 88% as of March 2025, representing a fall of 6% in less than two years.
Westwood predicts utilisation of the combined jackup, semisub and drillship segments to fall further this year to around 85%, making it likely that more rigs could permanently be removed from the active drilling fleet this year.

So far this year, nine rigs have been confirmed for removal from the active fleet: four jackups, three semisubs and two modern ultra-deepwater drillships.

The average age of assets retired from the fleet has continued to reduce for floating rigs, but not for jackups. Along with falling utilisation and age, factors increasing the likelihood of a rig being scrapped are limited future prospects, being without work or cold-stacked for some time, and being due for a five-yearly special periodic survey (SPS), which can be expensive.

Other factors can be one-off designs in a contractor’s fleet, where they may not be able to spread spare parts costs etc, outdated designs, and mergers between owners, which can lead to the streamlining of fleets.

“To sum up, due to the reduction in jackup, drillship and semisub demand and utilisation this year, we will likely see more assets moved to cold stack due to not having follow-on commitments in place,” concludes Westwood. “Meanwhile, further M&A activity could also be in the works.

“These factors we believe will spur further older, idle and surplus assets to be removed from the fleet, which in the long run may help set the stage for a stronger recovery in utilisation from the second half of 2026 onwards, when Westwood expects to see a rebound in demand.”

As the world pivots towards a low-carbon future, the petrochemical industry finds itself at a crossroads, balancing growth prospects with evolving regulatory and sustainability challenges

The global energy transition is reshaping industries, compelling them to integrate clean energy solutions alongside their continued reliance on fossil fuels. While much of the focus has been on the deceleration of oil and gas consumption as primary energy sources, petrochemicals remain a critical segment with sustained demand projected well into the coming decades.

This sector, heavily dependent on fossil fuel-based feedstocks, produces essential chemicals that form the backbone of numerous industries, including plastics, fertilizers, and pharmaceuticals. Unlike transportation fuels, whose consumption forecasts have fluctuated, petrochemicals are expected to witness steady demand with fewer disruptions. The International Energy Agency (IEA) projects that petrochemicals will account for more than a third of oil demand growth by 2030, primarily driven by rising consumption in developing economies. In India, for example, demand for key petrochemicals such as ethylene and propylene is expected to increase two- to three-fold over the next two decades, fueled by urbanisation, industrial expansion, and the drive for decarbonisation.

Complex sustainability imperatives

However, this growth trajectory exists alongside increasing scrutiny of the industry’s environmental footprint. Governments and regulatory bodies worldwide are tightening climate policies, imposing restrictions on single-use plastics, and advancing circular economy initiatives. As a result, petrochemical producers must navigate complex sustainability imperatives while maintaining competitiveness.

The environmental impact of petrochemical production has become a focal point for policymakers, investors, and consumers. The industry accounts for approximately 18% of global industrial carbon emissions, with energy-intensive processes such as refining and steam cracking being major contributors. Key challenges include:
• Regulatory pressures: Carbon pricing mechanisms, plastic bans, and stricter emissions controls are being implemented globally, increasing production costs and pressuring profit margins.
• Circular economy and recycling: Advances in chemical recycling, biodegradable alternatives, and closed-loop manufacturing systems threaten to reduce reliance on virgin petrochemical feedstocks, reshaping traditional demand patterns.
• Investor sentiment: ESG-focused investment strategies are compelling oil majors and petrochemical producers to present credible decarbonisation roadmaps, with capital allocation increasingly favouring companies with sustainable practices.

To ensure long-term viability, petrochemical producers are exploring multiple strategic pathways:
• Feedstock diversification: Investments in bio-based and recycled feedstocks are gaining traction as companies seek to lower emissions and align with sustainability goals.
• Carbon capture and utilisation (CCU): The integration of CCU technologies is emerging as a key solution to mitigate emissions, though economic feasibility remains a challenge.
• Advanced materials innovation: Research into high-performance polymers, biodegradable plastics, and alternative chemicals is accelerating, offering new avenues for growth beyond conventional petrochemicals.
• Integration with renewable energy: Shifting production facilities towards renewable power sources and hydrogen-based processes is becoming a priority for reducing the sector’s carbon footprint.

The petrochemical industry stands at a pivotal juncture, balancing robust demand with the imperative to adapt to a rapidly evolving regulatory and sustainability landscape. While traditional growth drivers remain intact, companies that embrace innovation, diversify feedstocks, and integrate low-carbon solutions will emerge as industry leaders. The coming decade will serve as a litmus test for the sector’s resilience, ultimately shaping its role in a decarbonising world.

This article is authored by Synergy Consulting IFA.

In an exclusive interview, Dr. Darius Ngo, Fellow and Senior Vice President - Yokogawa Global Business Consulting, discusses how the company is helping to transform the oil and gas sector through AI and advanced technologies

How are AI and advanced technologies transforming the oil and gas sector, and how can they help companies to operate more efficiently, safely and sustainably?

Industry 4.0 is transforming businesses through digitisation and the use of integrating artificial intelligence (AI) and advanced technologies embedded solutions has demonstrated to revolutionise the oil and gas sector by enhancing the production efficiency, safety and sustainability of business processes. Industrial AI and advanced solutions are generally pivotal in predictive maintenance, enabling real-time monitoring and early detection of equipment anomalies. This proactive approach minimises downtime, reduces maintenance costs, and enhances overall operational efficiency.

In a groundbreaking achievement, Yokogawa, in collaboration with JSR Corporation, has successfully operated a process plant autonomously for more than 35 consecutive days since 2022 using reinforcement learning AI. This marked the first instance where AI managed plant operations without human intervention, optimising for quality, yield, energy efficiency, and responsiveness to disturbances. With a stronger demand of Industrial AI, a robust composable platform is evolving and enables integration of AI for edge computing, facilitating immediate data processing and predictive analysis, which is crucial for energy-intensive sectors like oil and gas and power. This holistic approach leverages AI, cloud solutions, IoT, and real-time data analytics to create connected and efficient operations, driving innovation and sustainable growth within the oil and gas industry.

How do you view the receptiveness of Middle East operators to AI and the latest digital solutions, and how do you view the market in the region’s oil and gas sector for your solutions? Are there any projects you would like to highlight?

The Middle East's oil and gas sector is increasingly embracing artificial intelligence (AI) and digital solutions to enhance operational efficiency, sustainability, and competitiveness. Leading regional operators such as Saudi Aramco and ADNOC have already made significant investments in AI technologies,  focusing on enhanced efficiency and resource optimisation to gain competitiveness in the global market.

Yokogawa recognises the Middle East as a pivotal region in the global oil and gas sector, reflecting its strategic importance through significant investments and an established local presence. Many of the local operators are already users of Yokogawa’s advanced solutions and they are accelerating adoption of embedded AI to drive Industrial Automation to Industrial Autonomy (IA2IA). Yokogawa’s solutions and robust integration capability have repeatedly demonstrated to improvise safety, productivity and sustainability.

In Yokogawa, we are pleased to have successfully implemented Yokogawa’s AI/FKDPP reinforcement learning and advanced digital solutions among the Middle East regional operating companies. This embedded AI technology has transformed operations into full autonomy in process control without human intervention. This has also expedited the next phase of generative AI combined with large language models (LLM) for an AI-based OT intelligent advisory system.

See the full interview in the latest edition of Oil Review Middle East here:

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

UK-headquartered Carbon Clean has announced the successful completion of the world’s first industrial deployment of its CycloneCC carbon capture technology at the Al Ruwais Industrial Complex in Abu Dhabi

CycloneCC is Carbon Clean’s breakthrough modular technology, which provides a viable alternative to conventional carbon capture plants. Process intensification reduces mass transfer equipment by a factor of 10, decreasing the overall footprint by up to 50%. The combination of rotating packed beds (RPBs) and Carbon Clean’s proprietary amine-promoted buffer salt APBS-CDRMax solvent increases the efficiency of the carbon capture process while delivering extremely high performance.

The mobile CycloneCC unit was installed on site in under a week at Fertiglobe’s nitrogen fertiliser plant in the Al Ruwais Industrial Complex in Abu Dhabi – a record for the carbon capture sector.

The CO2 captured from a reformer flue gas stack has been used by Fertiglobe in urea production.

The modular unit has achieved the major milestone of around 4,000 operating hours over a six-month period. CycloneCC has been operating continuously, delivering a high purity CO2 product, which exceeds the projected target and meets Fertiglobe’s CO2 purity requirements.

System validation has confirmed that the industrial demonstration unit can now be further scaled up and commercialised.

Leveraging Carbon Clean-developed Artificial Intelligence (AI) has contributed to the plant’s increased reliability and availability, as well as maximising the performance of the solvent. The plant has been operating in open loop mode, with human operators implementing AI-suggested recommendations.

Aniruddha Sharma, chair and CEO of Carbon Clean, said, “Fertiglobe’s willingness to invest in first-of-a-kind (FOAK) projects cements its status as a decarbonisation pioneer. Our collaboration with Fertiglobe for this industrial demonstration unit is a major step towards CycloneCC’s full commercialisation, so that it can be deployed at scale globally. Installing a carbon capture plant in less than a week is a feat never achieved before. We’re excited to have delivered this industry first in carbon capture.”

Ahmed El-Hoshy, CEO of Fertiglobe, added, “At Fertiglobe, creating value via sustainability is at the heart of our operations. We are committed to meeting the increasing global demand for low-carbon solutions, which bring us closer to a more sustainable future. This collaboration with Carbon Clean at our facility in Al Ruwais reflects our commitment to leveraging advanced technologies, including AI, to advance our decarbonisation goals and meet rising global demand for our products.”

See also: https://oilreviewmiddleeast.com/energy-transition/celeros-flow-technology-and-carbon-clean-partner-for-carbon-capture