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Chevron has started drilling a new well in the Nargis natural gas field in the Mediterranean Sea, as part of ongoing efforts to develop the field, discovered in 2022

The project is being developed by Chevron as the main operator, in partnership with Eni, as well as Mubadala Energy and Tharwa Petroleum Company. The Nargis field is located in the prolific East Nile Delta Basin of the Mediterranean Sea, approximately 50 km offshore.

Eng. Karim Badawi, Minister of Petroleum and Mineral Resources, reviewed the launch of drilling activities aboard the drilling vessel Stena Forth, recently arrived in Egypt to begin operations at the field.

The Minister said that the drilling of the new well is part of the Ministry of Petroleum and Mineral Resources' strategy to encourage international energy companies to accelerate the development of untapped gas discoveries, including the Nargis Field, and bring them into the development and production portfolio.

The Egyptian government is encouraging investment and incentivising exploration and production to reverse years of decline and reduce energy imports, a drive which is being given additional impetus by the current situation in the Middle East. These efforts seem to be paying off, with a high level of exploration activity and a number of promising discoveries being made.

The most recent is the discovery by Agiba Petroleum Company, the joint venture between the Egyptian General Petroleum Corporation (EGPC) and Eni, in the Western Desert, representing the company's most significant discovery over the past 15 years.

The Ministry announced that the discovery was achieved through the South Bostan-1X exploratory well, drilled using the EDC-9 rig operated by the Egyptian Drilling Company (EDC). Preliminary estimates indicate reserves of approximately 330 bcf of gas and 10 million bbl of condensates and crude oil, with total estimated recoverable reserves reaching 70 million bbl of oil equivalent.

The significance of the new discovery is further enhanced by its proximity to existing facilities and infrastructure, which will enable its rapid development and swift tie-in to the production network.

The well encountered multiple sandstone and limestone reservoirs, with a net pay thickness of 400 feet, highlighting the discovery's strong economic potential and production significance.

The new discovery reflects the success of the Ministry of Petroleum and Mineral Resources' incentives to encourage partners to intensify exploration activities in areas adjacent to existing fields. This approach has facilitated the identification of new discoveries in close proximity to established infrastructure and production facilities, eliminating the need for significant new infrastructure investments. As a result, development costs are reduced, time to first production is accelerated, and operating efficiencies are enhanced

In early May Eni made a new natural gas discovery in the Nile Delta region, with estimated production rates of around 50 Mmcf/d, following its gas and condensate discovery in the Temsah concession in the Eastern Mediterranean in April, with preliminary estimates of about 2 trillion cubic feet of gas and 130 million barrels of associated condensates.

Also this year, Dragon Oil announced a new oil discovery following the successful drilling of the South El Wasl ‘B.B2’ exploration well in the Gulf of Suez, with initial results indicating production rates above 2,000 bpd of oil. While US Apache, in collaboration with the Egyptian General Petroleum Corporation (EGPC), made a new natural gas discovery in the Western Desert, following the drilling of the SKAL-1X exploratory well in the South Kalabsha area, with initial test results indicating a daily production rates of approximately 26 million cubic feet (mmcf) of natural gas and 2,700 barrels of condensate.

Oil prices have fallen to just over US80/bbl, their lowest level since April, and stocks risen following President Donald Trump’s announcement that Washington and Iran have reached an agreement to end the war

A formal signing of the agreement is due to take place on Friday 19 June in Switzerland.

While the text of the agreement has not yet been released and the details are still unclear, Trump said that hostilities have ceased, the Strait of Hormuz will fully open on 19 June toll-free, and the US blockade will be lifted, although how the Strait will be controlled is not clear.

“Ships of the World, start your engines. Let the oil flow!” Trump said on his social media account, Truth Social.

Iran’s deputy foreign minister, Kazem Gharibabadi confirmed, “A permanent and immediate end to the war has been declared on all fronts.”

The agreement would extend the ceasefire for 60 days to allow negotiations to begin about Iran’s nuclear programme, and lead to a final peace agreement. Plenty of thorny issues remain to be resolved, however which could potentially scupper the deal and lead to renewed conflict.

Claudio Galimberti, chief economist, Rystad Energy commented, “This deal, if it holds, is the most workable outcome available to all parties at the table, which gives it a degree of credibility. Washington has an incentive to avoid a spike in gasoline prices ahead of the midterms, while Tehran is seeking sanctions relief and restored export revenues, and the global economy has a strong interest in keeping the Strait of Hormuz open.”

However the sequencing dispute, with both sides insisting the other must move first, remains the main barrier, while Lebanon continues to represent a wildcard that neither Washington nor Tehran fully controls, he notes. While a credible reopening of the Strait of Hormuz would be one of the most important developments for the global economy, a return to normalised market conditions immediately upon signature in Switzerland would look optimistic.

“It will take time for production to ramp back up, for logistics to normalise, and for the risk premium embedded in crude prices to dissipate, particularly given that the structural shift implied by the UAE’s exit from OPEC+ is not reversed by any near-term diplomatic outcome.

“If the deal holds, it will therefore represent a step in the right direction, and an important one at that, but still a step rather than a destination.”

Even if the agreement holds, it is likely to take some time for traffic through the Strait to return to pre-war levels, with marine insurance rates remaining at a high level, mines needing to be cleared, and tankers needing to be repositioned.

Restarting oil production and getting all the elements of the logistics and supply chain in place could take months.

Total pre-conflict supply across the six Gulf producers stood at 24.2mn bpd in January 2026; current output has fallen to 12.4 million bpd, Rystad notes. Saudi Arabia accounts for the largest single share of lost barrels at 3.8mn bpd, followed by Iraq at 2.8mn bpd and Kuwait at 2mn bpd.

Energy consultancy Wood Mackenzie's view is that if the negotiations continue to make progress, and the Strait of Hormuz is reopened within a few weeks, oil supply from the strongest producers in the Gulf region can be restored relatively quickly, with shipping and logistics likely to be the bottleneck in the early phases of the recovery, rather than upstream producers.Countries with more complex assets, particularly Iraq, will take longer to recover, but could still return close to pre-war levels in six to nine months.

Ed Crooks, vice chair Americas at Wood Mackenzie, says that while Interest in coal, renewables and nuclear power has grown, as has the focus on hydrocarbon assets outside the Middle East, particularly in the Americas, the structural advantages of the Gulf producers as sources of low-cost oil and gas have not changed.

"When exports can flow freely from the region again, they will be highly competitive in world markets," he said.

At the S&P Global Energy Middle East Petroleum & Gas Conference (MPGC) held in London, Musaab Al Mulla, Aramco's vice president of market analysis and sustainability, underlined the need for the recognition of the role refined products play in resilient energy systems, which has been brought into sharp focus in the current crisis

Al Mulla highlighted the need for a realistic approach to the role of oil and gas as the engine for economic growth and the impact of the crisis on products ranging from helium to materials and fertilisers, with shortages of the latter in turn impacting food supply.

A common theme of the event was the need for resilience and redundancy in the energy system to be able to weather such crises. Al Mulla highlighted Aramco’s focus on long-term strategic planning and investment for the future, as exemplified by its investment in the east-west pipeline which is now not only transporting crude but also products, building flexibility into the system, transporting crude to refineries for export and ensuring refined products get to market.

“The world has realised the need for more investment in pipeline infrastructure and domestic refining to ensure industry is working together,” he said.

He remarked that the crisis has demonstrated demand is resilient and has exposed the underinvestment in refineries, with capital flows being redirected towards the energy transition and resulting in a deficit of 3mn bpd.

“We need to build refineries and infrastructure while also reducing emissions,” he said, noting that Aramco has one of the lowest emissions intensities.

Discussing demand for refined products, he noted that demand for jet fuel continues to grow and refinery utilisation is at record rates.

“We believe demand will continue to be resilient, and low carbon products will be important as well,” he said.

He foresaw strong growth in chemicals with the market for durable materials growing in multiple sectors, noting that carbon-based materials can help reduce emissions. Replacing steel with polypropylene in cars can reduce emissions by 80%, for example. He also highlighted growth in demand for low carbon aviation fuel (lcaf), fossil-based jet fuel, which is 10% lower in emissions than conventional jet fuel, and complements sustainable aviation fuel (saf) as it addresses some of its limitations.

Highlighting the continuing long-term strategic importance of refining, he stressed that gasolene will still account for a significant proportion of transportation fuel by 2050.

With resilience, reliability and sustainability being global challenges, Al Mulla said that resilience for Aramco means building on operational excellence, long-term investment in oil and gas, new energies and low carbon, and localisation, noting Aramco’s 70% localisation target to ensure a resilient supply chain.

“Resilience is correlated with sustainability, you can’t be sustainable if you are not resilient,” he said. It involves not only having the flexibility to be able to adapt to shocks, but also having the capacity to innovate and grow supply while also reducing emissions, he added.

Commenting on the Middle East’s attractiveness as an investment destination, he said, “Clearly the region remains the hub for oil and gas petrochemicals and refining, and it has shown its infrastructure and energy system have been resilient in this historic crisis.”

He said Aramco is also looking at other regions, and urged the need for more investor-friendly policies in Europe, where there is a need for more domestic refining and chemicals so as not to be dependent on other regions.

Discussing the role of gas, Al Mulla said there will be increasing demand to fulfil the growing demand for power from data centres, highlighting the move towards regional data centres.

As the deployment of agentic AI advances throughout the industry, SLB has launched the SLB Digital Marketplace, a curated digital destination designed to help energy companies discover and deploy AI agents, domain models and digital applications from SLB and trusted partners

The marketplace includes around 200 digital products including existing Ocean store solutions and new solutions from SLB and over 30 partners. These products span Delfi and Lumi SaaS applications, plug-ins, workflow extensions, data connectors, and Tela AI skills, agents and foundation models. SLB's suite of digital platforms — Tela, Delfi, and Lumi — covers the full spectrum of energy software: from AI-powered workflows and cloud-native E&P applications to intelligent workspace tools for energy teams worldwide. With a family of agentic workflows and full integration across all SLB digital products, Tela agentic AI assistant helps users interface with its agents through natural language.

With the advancement of agentic AI, energy companies will need access to a broader ecosystem of specialised tools that work together across planning, operations, data and AI.

For energy professionals, the marketplace provides a single destination to evaluate and access trusted digital capabilities that extend workflows across the Delfi and Lumi environments, enabling them accelerate agentic workflows and build their own bespoke ecosystem, from subsurface to production, well construction, sustainability to data management. For developers, partners and ISVs, it provides the opportunity to publish and scale solutions across the SLB ecosystem.

“AI in energy is shifting from promise to performance,” said Olivier Le Peuch, chief executive officer of SLB. “The SLB Digital Marketplace is designed to accelerate that shift by creating an open ecosystem where innovation can scale, solutions can interoperate and customers can move faster from insight to action. This is how we translate AI into real performance across the energy system.”

“No single company can build every agent, model or application the energy industry will need,” said Rakesh Jaggi, president of SLB’s digital business. “The SLB Digital Marketplace is the next expression of our commitment to openness, giving energy professionals more choice while maintaining the governance and quality standards required for enterprise operations.”

See also: https://oilreviewmiddleeast.com/technical-focus/slb-partners-with-qualcomm-technologies-on-ai-solutions

https://oilreviewmiddleeast.com/technical-focus/slb-strengthens-collaboration-with-nvidia-to-accelerate-ai-for-energy

Oil Review Middle East, in association with Flyability is hosting a webinar on “NDT drones for the oil and gas industry: from innovation to implementation" on Tuesday 14 July at 2pm GST

The oil and gas industry continues to face increasing pressure to improve safety, reduce operational downtime and enhance inspection efficiency. Increasingly, operators are deploying drone technology to improve inspection quality, enhance safety and drive greater operational efficiency across oil and gas assets, discovering new ways to conduct inspections in hazardous and confined spaces while minimising risks to personnel.

This practical session will explore how drone technology is being used to perform remote NDT inspections, collect critical asset data and create digital twins that support more effective asset integrity management. Through real-world case studies and industry experience, attendees will gain valuable insights into implementing drone solutions within their own operations.

Register here

Key highlights

• Visual inspections: Learn how drone technology is improving access to difficult and hazardous inspection environments
• Remote NDT applications: Explore the use of UT spot measurements and other remote inspection capabilities
• Digital twins: Understand how digital asset models are supporting integrity monitoring and maintenance planning
• Industry success stories: Hear practical examples from asset owners and service providers successfully utilising drone technology
• Implementation strategies: Gain insights into integrating drone-based inspections into existing operational workflows.

Our expert speakers:

• Fabio Fata, senior sales manager, Flyability
• Senan Khatib, certified AUV pilot/instructor and UAV field specialist Sagerdrone
• Abdullah Al-Rahmah, head of UAV team, Saudi Aramco
• Jacob Swidy, head of inspection technology and digital transformation, Saudi Aramco

Don’t miss this opportunity to take away exclusive insights from the leading lights of the drone technology world!
Register here

DNV has published a recommended practice (RP) for offshore hydrogen pipelines, supporting safe design, operation and requalification of pipeline infrastructure for transporting hydrogen

DNV-RP-F123 Hydrogen pipeline systems addresses hydrogen-specific integrity and safety considerations. It supplements DNV’s established submarine pipeline standard, DNV-ST-F101 and adds additional guidance tailored to transporting hydrogen gas and hydrogen blends in pipeline systems. It is relevant for new pipeline developments as well as for the requalifying of existing offshore infrastructure for hydrogen transport, supporting broader efforts to scale hydrogen networks.

Hydrogen is expected to play an increasing role in cutting emissions from hard-to-decarbonise sectors. However the transportation of hydrogen by pipeline faces certain risks and considerations, such as embrittlement.

DNV-RP-F123 has been developed through the H2Pipe joint industry project (JIP), which ran from 2021 to 2026 and brought together 37 industry partners across operators, manufacturers, engineering companies and academic advisors to provide guidance for engineering projects and qualification work.

The next step is large-scale testing to validate data and advance existing standards. This phase will include full-scale pipe testing at DNV’s Spadeadam Research and Development Facility. The results will feed into the continued development of DNV-RP-F123 and future guidance.

“Hydrogen service fundamentally changes the integrity picture for pipeline systems,” explained Prajeev Rasiah, executive vice president and regional director for Northern Europe, Energy Systems at DNV, “it cannot be treated as a simple variant of natural gas. This recommended practice moves beyond theoretical study to provide an evidence-based framework for assessing hydrogen-specific risks in design, requalification, and operation. By closing the gaps around material suitability and safety margins, we are giving teams the technical clarity needed to move projects from the study phase into execution. This is particularly vital for requalifying existing infrastructure, where the guidance helps define exactly what must be tested or upgraded to ensure a safe reliable and sustainable transition.”

“The objective of the H2Pipe JIP is to build guidance grounded in shared data and real technical experience from testing,” added Philippe Darcis, chairman of the H2Pipe JIP Steering Committee and Pipeline Technology Senior Director at Tenaris. “The real value of the H2Pipe JIP is in turning years of shared data into credible, site-ready guidance that engineers can use to scale hydrogen infrastructure. This is a practical tool built to reduce the 'unknowns' that often stall investment. Because it was developed through industry-wide collaboration, it gives operators a robust basis for making decisions, allowing us to move forward with fewer assumptions and greater confidence in our safety and performance standards.”