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The two companies will jointly pursue exploration and production opportunities. (Image source: PETRONAS)

Exploration & Production

Malaysia’s PETRONAS has signed an MoU with OQ Exploration and Production New Ventures LLC (OQEP) a wholly-owned subsidiary of OQ Exploration and Production SAOG, to jointly pursue opportunities for oil and gas exploration and production across the Middle East and Southeast Asia

The collaboration will leverage PETRONAS’ international upstream expertise and OQEP’s regional knowledge, aiming to unlock new growth opportunities and accelerate value creation in diverse markets.

The agreement was signed at OQPE's headquarters in Oman by Mohd Redhani Abdul Rahman, vice president of International Assets of PETRONAS Upstream, and Mahmoud Al Hashmi, acting chief executive officer and chief operations officer of OQEP,. 

Redhani said, “This collaboration represents a meaningful step forward in our efforts to build a resilient and competitive upstream portfolio. By aligning our strengths with OQEP’s strategic direction, we are well-positioned to pursue impactful ventures in these regions.”

PETRONAS has been active in Oman since 2018 and currently holds participating interests in Block 61. This MoU builds upon the growing relationship between PETRONAS and OQEP, anchored on mutual respect and shared industry goals.

Oman's largest pure-play oil and gas exploration and production company and it is the only upstream oil and gas operator owned by the Government of Oman. OQEP currently ranks among the top three oil and gas producers and is also one of the largest holders of oil and gas reserves in Oman.

Global balances are shifting to oversupply next year. (Image source: Rystad Energy Research & Analysis)

Industry

OPEC+ has agreed to pause oil production hikes for the first quarter of 2026 as it slows down its push to regain market share amid fears of a looming supply glut as well as geopolitical uncertainty around Russia/Ukraine peace negotiations and US/Venezuela tensions

The eight OPEC+ countries – namely Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman – have been raising oil output month by month since April this year, but will pause production increments in January, February and March 2026 “due to seasonality”, according to an OPEC statement.

The statement said the countries will adopt a cautious approach and retain full flexibility to continue pausing or reverse the additional voluntary production adjustments, reiterating that the 1.65 million barrels per day may be returned in part or in full subject to evolving market conditions and in a gradual manner. The countries will continue to closely monitor and assess market conditions.

Jorge Leon, head of geopolitical analysis at Rystad Energy commented, “The message from the group is clear: stability outweighs ambition at a time when the market outlook is deteriorating rapidly. Global balances are shifting toward a significant oversupply next year, with Rystad Energy estimating a surplus of 3.75mn bpd of liquids in 2026, one of the largest projected gluts in recent years. Against this backdrop, any additional barrels from OPEC+ would risk deepening the price decline that is already visible across the forward curves.

“For producers that are heavily reliant on oil revenues, holding back supply now is becoming less of an option and more of a necessity.”

Preserving optionality, rather than committing to a new production path, allows OPEC+ to react quickly if conditions worsen or if geopolitical events unexpectedly tighten supply, Leon noted.

“The alliance must balance its desire to regain market share while stabilising prices with the realities of political fragmentation, both within the group and across the global stage. The latest decision underscores how difficult that balance has become. OPEC+ is trying to manage a market moving toward oversupply while navigating geopolitical shocks that could arrive without warning.

“The result is a strategy rooted in caution, one that leaves room for rapid adjustment but also highlights the complex, fragile nature of the alliance’s current position.”

The delay in setting individual production quotas is a “clear indication of unresolved tensions”, he added.

Oil prices rose slightly on 1 December following the OPEC+ decision, with Brent standing at just over US$63, while Ukrainian drone attacks on Russian tankers have exacerbated concerns over supply disruptions.

The agreement with strengthen Saudi Arabia's base oils sector. (Image source: Adobe Stock)

Petrochemicals

Bahri Chemicals, a subsidiary of logistics and transportation company Bahri, has signed a Contract of Affreightment (COA) with Luberef to strengthen Saudi Arabia’s base oil and petrochemicals sectors

Under the agreement, Bahri Chemicals will transport base oil produced in the kingdom from local ports to destinations across the Arabian Gulf and the west coast of India.

The strategic partnership will unlock synergies between the two companies, reflecting their shared commitment to advancing Saudi Arabia’s base oils sector, while also serving as an example of collaboration under the Saudi Inc. initiative, which strengthens partnerships and growth among Saudi companies.

Faisal Al Husseini, president of Bahri Chemicals, said, “This agreement with Luberef builds on our long-standing collaboration and reflects Bahri Chemicals’ commitment to delivering reliable, flexible, and customer-first maritime transportation solutions. Together with Luberef, we aim to create long-term value for our customers and contribute to the Kingdom’s economy.”

Eng. Samer A. Al-Hokail, President & CEO of Luberef, added, “This agreement represents another important step in our partnership with Bahri Chemicals toward enhancing the efficiency and resilience of our operations across international markets. We look forward to further strengthening our cooperation to deliver sustainable value to customers and to advance the Kingdom’s standing in the base oil sector.”

Luberef is one of the world’s leading suppliers of high-quality base oils, serving markets in Saudi Arabia and India, in addition to various markets across the Middle East and North Africa.

Bahri Chemicals is one of the largest owners and operators of chemical tankers in the Middle East, currently operating a fleet of 50 vessels, through which it provides maritime transportation services to a global customer base in the chemicals, clean petroleum products, and vegetable oils sectors.

The oil and gas industry could save more than US$320bn in the next five years by further digitalising operations in five key areas. (Image source: Rystad Energy)

Technology

The oil and gas industry could save more than US$320bn in the next five years by further digitalising operations in five key areas, according to Rystad Energy research

The five key areas highlighted are drilling optimisation, autonomous robotics, predictive maintenance, reservoir management, and logistics optimisation.

The oilfield services (OFS) business ecosystem is expected to undergo a significant transformation as continued merger and acquisition (M&A) activity, new business partnerships with technology firms, and greater software integration drive digital-first business strategies for key OFS players.

“We estimate that US$320bn is a modest figure, as broader digital adoption across other business domains could generate even greater value. To realise this, executives will need to deliberately prioritise digital transformation by fostering a less risk-averse business culture,” said Binny Bagga, senior vice president, Supply Chain.

Rystad notes that digital revenue streams offer more stable, resilient growth trajectories that are less exposed to the volatility of upstream capex. SLB expects its digital division’s margin to reach 35% on a full-year basis in 2025, while Viridien’s digital, data and environment (DDE) segment generated US$787mn, growing 17% and delivering adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$458mn last year.

“The investment community is increasingly valuing energy-technology narratives, with service companies that clearly articulate technology-driven and recurring-revenue strategies often commanding higher valuation multiples than those tied solely to equipment cycles. However, such premium valuations hinge on demonstrated scalability. Emphasising digitalisation is a direct pathway to creating lasting shareholder value,” Bagga said.

Nevertheless, widespread adoption of digital oilfields faces significant barriers, including substantial upfront costs for hardware, software, ongoing maintenance and cybersecurity, which impact smaller firms or those operating with legacy infrastructure in particular. To mitigate these challenges, mid-tier companies are selectively enhancing their offerings with targeted digital capabilities, while smaller niche players and specialised software vendors focus on delivering modular, custom solutions.

A marked trend in digital investment is the growing use of partnerships with technology firms, which complements internal capability building and acquisitions in the digital space. These have increased significantly, with the most significant growth observed in the past two years among leading companies such as SLB, Halliburton, NOV and Baker Hughes. This pattern highlights a clear industry shift toward digital transformation, with large suppliers actively accelerating their collaborations with technology partners in recent years.

The webinar will transform confined space inspections. (Image source: Flyability)

Webinar

Despite advances in digital technology, many oil and gas sites across the Middle East still rely on manual entry for tank and vessel inspections, resulting in days of downtime, high scaffolding costs and risk to human life

What if you could change all that with drone technology?

Inspections drones such as the Elios 3 are revolutionising the world of confined space inspections, improving safety, reducing downtime and enhancing operational efficiency.

Join us for an exclusive live webinar hosted by Flyability in association with Oil Review Middle East on ‘Transforming oil and gas operations with the Elios 3 drone’ on Tuesday 2 September at 2pm GST. Industrial experts will explain how drones such as the Elios 3 are transforming confined space inspections, and how you can integrate this technology into your operations seamlessly.

Key highlights:

Drone integration: learn how to safety and effectively implement drones in confined space
Safety and training: understand essential safety protocols and training strategies for your team
ROI: discover how to measure and achieve a strong return on investment with drone technology
Real world use cases: hear from the engineers using drone tech in the field on the impact Elios 3 is having on in oil and gas inspections.

Speakers and host:

Fabio Fata – senior sales manager, Flyability (moderator)
Eralp Koltuk – inspection lead engineer, Tüpraş
Danijel Jovanovic – director of operations, ZainTECH

Take your operations to the next level! Don’t miss out on gaining valuable insights into how drones can make inspections safer, faster and smarter .

From making inspections in hazardous confined spaces much safer to streamlining the whole process and providing valuable real-time data, you will get to see exactly how the Elios 3 is changing the game.

Register for the free webinar here.

Methane emissions reporting is improving, but more action is needed to reduce emissions. (Image source: Adobe Stock)

Energy Transition

Government and industry responses to UN Environment Programme (UNEP) satellite methane alerts rose from 1% to 12% cent in the past year, and oil and gas methane emissions reporting has improved, but action needs to accelerate to achieve the Global Methane Pledge goal of curbing methane emissions 30% by 2030, according to a new UNEP report

Atmospheric methane continues to be the second biggest driver of climate change after carbon dioxide, responsible for about one-third of the planet’s warming, and real-world data is a critical tool to track and reduce methane emissions.

The fifth edition of the UN Environment Programme’s (UNEP) International Methane Emissions Observatory (IMEO) publication, An Eye on Methane: From measurement to momentum, finds that member oil and gas companies of IMEO’s Oil and Gas Methane Partnership 2.0 (OGMP 2.0) are set to track one-third of emissions from global production using real-world measurements. The OGMP 2.0 is the world’s global standard for methane emissions measurement and mitigation in the oil and gas sector. Over the past five years, OGMP 2.0 membership has more than doubled to 153 companies in the countries, covering 42% of global oil and gas production.

One-third of global oil and gas production reports, or will soon report, emissions at OGMP 2.0’s Gold Standard – meaning emissions are tracked with real-world measurements. This positions a large amount of the global industry to effectively measure – and thus mitigate – emissions. One of the companies achieving 'Gold Standard reporting' in 2024 for having effectively achieved the highest levels of data quality is Eni. OGMP 2.0’s 2025 report recognized Eni for its continued progress, including identifying and quantifying emissions across non-operated assets, as well as training and technical assistance on the LDAR (Leak Detection and Repair) approach to fugitive emissions. LDAR training sessions were organised with the support of UNEP and delivered to National Oil Company (NOC) personnel.

The report highlights that while government and company responses to alerts from IMEO’s Methane Alert and Response System (MARS) have grown tenfold over the previous year, nearly 90% remain unanswered, necessitating an increase in response rates. Through MARS, UNEP has sent over 3,500 alerts about major emissions events across 33 countries. These alerts are based on satellite monitoring and artificial intelligence-supported analysis. IMEO has documented 25 cases of mitigation action in ten countries since MARS was launched in 2022, including across six new countries during the past year.

“Reducing methane emissions can quickly bend the curve on global warming, buying more time for long-term decarbonisation efforts, so it is encouraging that data-driven tools are helping the oil and gas industry to report on their emissions and set ambitious mitigation targets,” said Inger Andersen, executive director of UNEP. “But to keep the Paris Agreement targets within reach, the important progress on reporting must translate into cuts to emissions. Every company should join the Oil and Gas Methane Partnership 2.0, and both governments and operators must respond to satellite alerts – then they must act to reduce emissions.”