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Studies indicate total recoverable resources of up to 43mn barrels of oil. (Image source: Adobe Stock)

Exploration & Production

OMV has announced that its Essar well in Libya’s Sirte Basin is commercially viable, following the completion of technical and economic studies

The well is in the concession area C 103, where OMV holds a 12% interest.

Zueitina Oil Company will be responsible for developing the field, where studies indicate total recoverable resources of up to 43mn barrels of oil. Due to its proximity to existing production and processing facilities, the field can be developed quickly and brought on stream in a cost-efficient manner, OMV says.

OMV has a long history of exploration and production of oil and gas in North Africa, in close cooperation with local partners, and the region plays an important role in the company’s upstream growth strategy. Libya is a core focus, where the company has been active for around 50 years with a long-standing partnership with the NOC. At the end of 2024, the company resumed exploration activities in Libya after an interruption of more than ten years.

“The Essar discovery is a major milestone for OMV and our partners at the NOC. It confirms not only Libya’s considerable potential, but also the value of long-term partnerships, technical excellence, and our unwavering commitment on the ground. Strategic collaborations such as this are essential to providing the energy the world needs,” said Berislav Gašo, OMV executive vice president Energy.

Strong potential

The recent discovery is good news for Libya, and is a further indication of its energy potential. Libya holds Africa’s largest proven oil reserves and its fifth largest gas reserves. Libya’s oil production currently stands at around 1.4mn bpd, its highest level since 2013. Libya’s NOC is keen to revitalise the country’s oil and gas industry and aims to produce 1.6mn bpd by the end of 2026, rising to 2mn bpd in the medium term, seeing the participation of international companies as crucial to achieving its growth plans. Libya’s efforts to boost oil and gas production following years of civil war have met with considerable success. In recent developments, 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.

NOC has signed production sharing agreements recently with Spain’s Repsol, in partnership with the Turkish Petroleum Corporation (TPAO); and Eni, in partnership with QatarEnergy and MOL Group, with its partners, Repsol and Türkiye Petrolleri A. O. (TPAO). Five blocks were recently awarded in Libya’s recent bid round, its first in eighteen years, which attracted significant international interest.

Lula Mohanty, managing partner for Middle East & Africa at IBM Consulting. (Image source: IBM Consulting)

Industry

Organisations that connect operational and enterprise data, embed intelligence into workflows, build workforce trust, and establish clear governance will be best positioned to convert digital ambition into lasting operational value, says Lula Mohanty, managing partner for Middle East & Africa at IBM Consulting

Digital modernisation remains a priority for oil and gas companies across the Middle East, with significant investments in connectivity, automation and AI. Yet many organisations still struggle to translate these investments into faster decisions, more resilient operations and consistent performance improvements at scale. For energy leaders, the priority is no longer simply deploying digital technologies, but ensuring those investments deliver measurable operational value.

New research from the IBM Institute for Business Value, based on surveys of more than 750 C-suite and senior executives across the chemicals and oil and gas industries, highlights the gap between digital ambition and operational impact. While three in five organisations globally are scaling or embedding digital initiatives, only 8% say digital transformation is fully integrated and driving competitive advantage.

The stakes are significant: oil and gas organisations with more advanced digital deployment report 23% less production deferment, 16% less non-productive time and 13% lower operational costs. For companies that haven’t closed the gap, realising those potential gains remains challenging

This gap reflects a broader challenge. Generating intelligence is no longer the hard part: many organisations already have dashboards, analytics, digital twins and AI-enabled insights. The harder task is making sure those insights consistently shape operational decisions and actions. Value is created when intelligence becomes part of workflows, maintenance activities, production planning and frontline decision-making, supported by connected systems, workforce capabilities and clear governance.

Turning digital capabilities into operational outcomes

Those gains are increasingly within reach. The IBM research shows that globally 84% of oil and gas respondents report deploying digital production optimisation across many sites or enterprise-wide, highlighting the growing focus on translating digital capabilities into repeatable operational performance.

These findings reinforce why digital transformation should be measured by operational outcomes rather than the number of technologies deployed. Predictive analytics, digital twins and AI can help organisations anticipate disruptions, optimise production and improve asset reliability. However, their value depends on whether these insights influence decisions and actions across the business.

For oil and gas companies operating across complex and geographically distributed assets, this requires stronger connections between operational technology (OT) and information technology (IT). When operational and enterprise data remain fragmented, decisions take longer and opportunities to improve performance can be missed. Integrating these environments creates the foundation for better visibility, more coordinated responses and the responsible adoption of automation and AI.

Workforce readiness is essential to scaling transformation

Technology integration alone is not enough. Organisations must also equip employees with the capabilities and confidence to apply digital intelligence in their daily work.

This remains a challenge across the Middle East. IBM’s research finds that only 25% of UAE and Saudi respondents describe their workforce as mostly ready or fully capable of supporting digital transformation, compared with 35% globally.

For energy leaders, addressing this gap requires more than technical training. It means investing in change management, developing cross-functional capabilities and ensuring that engineers, operators and technology teams can work together to translate insights into action.

Embedding intelligence into maintenance planning, production optimization and operational workflows can help employees make more informed decisions. The objective should be to make digital capabilities part of how work gets done, rather than additional tools that operate alongside existing processes.

Governance is critical to sustainable performance

As organisations embed AI and automation more deeply into their operations, governance becomes essential. Clear accountability, defined decision rights and appropriate human oversight are what allow digital capabilities to scale responsibly.

Trust is central to this shift. Many organisations have established confidence in their operational data; the harder part can be developing trust in the recommendations, predictions and actions generated from it. That confidence grows when recommendations consistently deliver better outcomes and when accountability and oversight remain clearly defined. Without trust, intelligence may inform decisions, but it rarely changes them.

Middle East organisations are taking a measured approach to autonomy: only 20% report that agentic AI currently executes defined actions autonomously under human oversight, compared with 36% globally. Rather than treating autonomy as an end goal, energy companies should identify where automation improves efficiency and where human expertise remains necessary.

Governance should also extend beyond technology. Aligning operations, engineering, IT and cybersecurity teams around shared performance objectives keeps digital initiatives tied to operational priorities and helps deliver improvements that can be replicated across sites and assets.

From digital ambition to operational impact

For Middle East energy companies, the next phase of digital transformation should focus on turning existing investments into measurable and sustained performance improvements.

This starts with prioritising operational challenges where technology can deliver tangible results, such as reducing downtime, improving production efficiency and strengthening asset reliability. It also requires connecting operational and enterprise data, equipping employees to act on digital insights and establishing clear governance and accountability.

Ultimately, success will be defined by how effectively energy companies turn intelligence into execution. Organisations that connect operational and enterprise data, embed intelligence into workflows, build workforce trust, and establish clear governance will be best positioned to convert digital ambition into lasting operational value.

The agreements will expand the chemicals ecosystem. (Image source: ADNOC)

Petrochemicals

TA’ZIZ, a joint venture between ADNOC and ADQ, has signed long-term agreements spanning offtake, feedstock and sales across its chemicals portfolio, valued at US$28.5bn (AED104.6bn)

Signed at the Make it in the Emirates Forum, the agreements, valued at US$28.5bn, secure both global offtake and reliable local feedstocks, allowing for large-scale chemical production within the UAE and reinforcing TA’ZIZ’s role in building a fully integrated domestic chemicals ecosystem. The deals include sale agreements with ADNOC and Proman for methanol; Emirates Global Aluminium (EGA) for caustic soda; Mitsubishi Corporation for ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda; Mitsui & Co. for EDC and caustic soda; Sanmar Group for EDC and VCM; Tricon for PVC, EDC and caustic soda; and Vinmar for EDC and polyvinyl chloride (PVC).

ADNOC Gas secured a 25-year feedstock agreement to supply natural gas to the TA'ZIZ methanol project valued at over $5 billion (AED18.4 billion). TA’ZIZ also agreed a 20 year salt supply agreement with Abu Dhabi based Sama Salt to support production at its PVC complex.

Mashal Saoud Al-Kindi, CEO of TA’ZIZ, said, “These long term agreements represent a defining milestone for TA’ZIZ and for the UAE’s industrial growth ambitions. By securing both global demand and reliable local feedstock, we are translating vision into delivery, anchoring world scale chemicals production, strengthening domestic value chains and creating enduring economic value, jobs and supply chain resilience for the UAE.”

Together, these agreements leverage local resources to secure a reliable and sustainable supply of critical raw materials, further strengthening domestic value chains and advancing the UAE’s industrial self sufficiency.

TA’ZIZ is a manufacturing, industrial services, logistics and utilities ecosystem that enables the production of transition fuels and new products across the chemicals value chain, supporting ADNOC’s ambition to become a top three global chemicals player as well as the UAE’s industrial development and economic diversification ambitions.

The TA’ZIZ Industrial Chemicals Zone is set to produce 4.7 million tonnes per annum (mtpa) of chemicals once construction is completed in 2028. This includes a 1 mtpa ammonia plant, a 1.8 mtpa methanol plant and 1.9 mtpa of marketable products from its integrated polyvinyl chloride (PVC) complex. The PVC complex, which produces PVC, ethylene dichloride (EDC), vinyl chloride monomer (VCM), and caustic soda, will be one of the world’s top three largest single site PVC complexes.

Also at the Make it at the Emirates Forum, TA’ZIZ and Alpha Dhabi Holding announced a strategic collaboration agreement for around US$10 bn (AED36.7bn) in capital investment in new industrial chemicals in the TA’ZIZ industrial chemicals ecosystem in Al Ruwais Industrial City, Al Dhafra region of Abu Dhabi.

The partnership could produce up to 14 new chemicals, delivering around 2.2mn tonnes per annum (mtpa) of additional chemical capacity in the TA’ZIZ industrial chemicals ecosystem in Al Ruwais Industrial City. The new chemicals, which include styrene and polystyrenes, acrylic acid and derivates, polyols, MDI, epoxy resins and linear alpha-olefins, are based on domestic demand and could substitute key products currently imported into the UAE, while strengthening local supply chain resilience. The partnership supports the UAE’s national industrial priorities, including the Make it in the Emirates (MIITE) initiative and the country’s industrial strategy, by strengthening domestic manufacturing capability and advancing self-sufficiency in strategically important chemical products.

G.M. International explains how its X1 series provides a clear and comprehensive solution for interfacing customer systems with a complete range of modules

As industrial automation systems become more interconnected, engineers need more than reliable signal transmission. They also need to identify installed devices, simplify commissioning, access diagnostic information and integrate field data into plant-level systems. In safety-related and process I/O applications, these functions must be provided without adding unnecessary complexity to the system architecture.

Understanding the X1 Series architecture

The X1 Series from G.M. International is a modular I/O system for industrial applications. It consists of modules serving individual signal loops, installed on customised termination boards that provide their electrical connections and power supply. An optional Gateway provides access to the modules through the X1 internal bus.

As installations grow, accessing module information, configuring supported parameters and retrieving diagnostic data through a common interface becomes important for commissioning, troubleshooting and maintenance. The X1-GW-01 addresses this need by providing a centralised interface to the connected X1 modules. Depending on the termination-board configuration, one Gateway can manage up to 16 channels, while multiple Gateways can be connected within a wider X1 network.

For local engineering activities, the Gateway connects to a PC or industrial PC via USB-C using a dedicated configuration software. For integration with plant systems, it supports MODBUS TCP/IP via Ethernet RJ45 and MODBUS RTU via RS485. The dedicated configuration software provides access to connected termination boards and supported module parameters, with management of up to 256 channels from a single entry point.

Beyond communication, the Gateway enables access to the smart functions of compatible X1 modules. These include module identification, configurable application parameters and continuous acquisition of field and internal variables.

Depending on the module, available information may include voltage, current, resistance, 4–20 mA loop current, and internal status. This information supports commissioning and troubleshooting while providing maintenance teams with greater visibility into device conditions.

The Gateway incorporates three user profiles: Observer, Maintenance and Administrator. Password management, single-session enforcement, event logging and configuration-change indication help control access to system operations and settings. Mounted directly on the termination board, the Gateway integrates into the X1 architecture, which features a compact 10 mm-per-channel design and an operating temperature range of –40 °C to +70 °C. The X1 Series offers Functional Safety capability up to SIL 3 with Systematic Capability SC 3.

The X1-GW-01 therefore provides a common access point for engineering, diagnostics and industrial communication, connecting X1 modules with the systems used to supervise and maintain industrial processes.

Looking to simplify I/O configuration and access module diagnostics?

Download the X1-GW-01 product sheet to explore how it connects the X1 Series to your automation system: https://www.gminternational.com/landing/download-our-x1-gateway-product-sheet

The webinar will address the risks and realities of dissimilar flange connections. (Image source: Adobe Stock)

Webinar

Oil Review Middle East is hosting an exclusive webinar by GPT Industries on Dissimilar Flange Connections: Corrosion Risks, Misconceptions, and Practical Solutions, on Thursday 18 June at 9.30am GST

Dissimilar flange connections are widely used across industries, yet they remain a misunderstood and underestimated source of corrosion risk, operational failure, and unexpected cost. This webinar will explore why these connections exist, how they behave in real-world environments, and the critical factors that influence their performance. It will provide practical insight into the risks and realities of dissimilar flange connections, with a focus on corrosion mechanisms, common misconceptions, and effective mitigation strategies to improve reliability and reduce long-term costs.

The session will cover:
✔️ Understanding galvanic corrosion in dissimilar flanges
✔️ The dangers of localised corrosion and its impact on asset reliability
✔️ Common misconceptions around cladding and sealing methods
✔️ Available mitigation strategies, including coatings, bolting practices, and flange isolation kits
✔️ How to apply practical decision-making frameworks based on risk, environment, and lifecycle cost considerations

Register here

GPT Industries is a leading global manufacturer of critical pipeline sealing and electrical isolation products to protect the world’s pipelines, people and environment. With a focus on safety, performance and reliability, the company employs advanced engineering and manufacturing processes to meet the challenging demands of the oil and gas, water/wastewater, hydrogen and construction and infrastructure industries.

Expert presenters will be Rebecca ZImbra – product engineer, GPT Industries, metallurgical/materials engineer with industry, management, and research and development experience and expertise in materials testing, cathodic protection, failure analysis, and weld inspection; and Nick Bander, director – Engineering and Product Management at GPT Industries, an experienced technical team manager with a focus on manufacturing, pipeline corrosion mitigation, oil and gas, energy, and water/wastewater industries, and expertise in team/people development, product application, product design, pipeline, sealing, corrosion, and cathodic protection.

Don't miss this opportunity to gain exclusive practical insights into corrosion risks, mitigation strategies, and decision-making approaches for dissimilar flange connections!
Register here

the crisis and the increased focus on energy security are renewing interest in hydrogen and hydrogen-based fuels. (Image source: Adobe Stock)

Energy Transition

The conflict in the Middle East has disrupted global production and trade in hydrogen-based products such as fertilisers, fuels and industrial feedstocks, exposing vulnerabilities in supply chains, according to the latest edition of the IEA’s Global Hydrogen Review

The report finds that the crisis and the increased focus on energy security are renewing interest in hydrogen and hydrogen-based fuels, although low-emissions hydrogen remains at a relatively small scale.

Demand for hydrogen worldwide surpassed 100 million tonnes in 2025, according to the report, while production of low-emissions hydrogen grew by 20% to almost 1 million tonnes. However, persistent barriers including high costs, uncertain demand, complex regulations and a lack of infrastructure continue to slow the development of low-emissions hydrogen, putting 2030 targets announced by governments increasingly out of reach.

"The current crisis has highlighted how deeply economies around the world depend on trade in hydrogen-based products and the significant role of the Middle East in those supply chains," said IEA executive director Fatih Birol. "Countries are looking for ways to make their energy systems more resilient and diversified. Low-emissions hydrogen can play an important role in those efforts over time, but stronger policy support and much faster deployment will be needed before it can make a meaningful contribution at scale."

Fertiliser markets have been particularly affected by the conflict in the Middle East, which is home to around one-sixth of global hydrogen production, the majority dedicated to the production of chemicals, fertilisers and refined oil products. The region accounts for more than 10% of global refining capacity, ammonia and urea production, and close to 17% of methanol production.

The region makes up over one-quarter of global trade in ammonia, almost 40% of urea trade and almost 45% of methanol trade, and one-third of its refining capacity is export-oriented. The closure of the Strait of Hormuz has severely disrupted the supply of all these products. The production of hydrogen-based fuels outside the Middle East has also been affected, particularly in Asia, where countries are very dependent on natural gas imports from the Middle East.

Disruptions to production, exports and shipping routes have contributed to shortages and price volatility across global markets with the increase in fertiliser costs posing risks for food supply chains, especially in import-dependent agricultural economies.

Low-emissions hydrogen

Low-emissions hydrogen production grew by 20% in 2025 to reach almost 1 Mt and is set to exceed 1% of global hydrogen production for the first time, but progress is concentrated in a small number of projects. However investment momentum weakened in 2025, with delays to final investment decisions and a shrinking pipeline of projects highlighting the challenges facing the sector.

Despite continued policy support in some markets, low-emissions hydrogen and hydrogen-based products remain significantly more expensive than conventional alternatives in most markets. The pipeline of announced projects for producing low-emissions hydrogen by 2030 has shrunk by around a quarter since last year to 27 million tonnes due to delays and cancellations, and the number of projects likely to become operational by 2030 has fallen significantly.

Demand uncertainty remains a key constraint for scaling up low-emissions hydrogen development, with offtake agreements at low level. This is cited by developers as one of the largest barriers to investment.