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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.

Oil prices have risen again following reported attacks on vessels transiting the Strait of Hormuz which prompted the USA to launch renewed airstrikes on more than 80 targets in Iran and President Trump to declare the ceasefire over

The US also revoked the sanctions waiver that had allowed limited Iranian oil exports, while missile and drone attacks on military bases in Bahrain and Kuwait have been reported.

Brent crude reached US$78-79/bbl, up more than 5%, reflecting the risk of renewed disruption to oil supply through the Strait. The move highlights how sensitive prices remain to any escalation around the Strait, given its role as a critical transit route for global oil flows, comments Rystad Energy, adding that even if no sustained physical disruption materialises, uncertainty around vessel safety, insurance costs, potential delays, and the risk of further retaliation is likely to keep volatility elevated in the near term.

“The events of the last few days significantly weaken any confidence that the current 60-day truce can still evolve into a permanent peace agreement,” said the energy consultancy.

“Vessel movements have already fallen sharply, and traffic through the Strait will almost certainly remain reduced until the security situation becomes clearer and market participants gain more visibility on whether a diplomatic off-ramp remains available.”

Prior to these events, oil prices had dropped to the lowest level since hostilities began, with Gulf producers ramping up production and exports following the ceasefire agreement and OPEC + countries agreeing an increased production quota for August, leading to the prospect of a well-supplied or even an oversupplied market later in the year. Gulf oil exports in June jumped more than 3 million barrels from May to more than 10 million barrels per day, according to Reuters, ⁠although volume remained 40% below pre-war levels.

Seven OPEC+ countries agreed a further increase in output targets from August, increasing quotas by 188,000 bpd for the fifth consecutive month in continuation of the unwinding of production cuts agreed in 2023.

Jorge Leon, head of Geopolitical Analysis at Rystad Energy said, “Tanker traffic through the Strait of Hormuz has essentially stopped, which tells you more about risk perception right now than any statement from Washington or Tehran.

Brent's climb to its highest level since 19 June shows how quickly the market is pricing in a ceasefire the US president himself says is over.

The real test comes after 9 July, once the mourning period ends and both sides show whether there is still an appetite for a diplomatic off-ramp.”

“Going forward, the latest developments are likely to restore part of the geopolitical premium that had largely unwound in recent weeks, although the broader outlook will depend on whether the conflict escalates further or diplomatic efforts resume,” commented MUFG research.

Samer Hasn, senior market analyst at XS.com said, “The return of rising oil prices comes as the market once again recognises the fragility of the current ceasefire and that the war in the Middle East has not ended, while the risks of oil supply disruptions remain high and the diplomatic path to settlement is still very long.

No breakthrough on the Strait

He added that he failure to achieve a breakthrough regarding the Strait means that the possibility of reaching an agreement on the most vital points, which relate to the Iranian nuclear program, will be much harder.

“Amid this narrative and the absence of a near-term outlook for a comprehensive diplomatic settlement, the risks of a return to the total closure of the Strait, or even the retargeting of vital energy facilities across the region, whether on the Iranian or Gulf side, remain high. This threatens a sudden spike in oil prices. Furthermore, this narrative will keep the OPEC+ decision to increase oil production on paper and unenforceable for now; in this case, the market will remain in a state of supply deficit, keeping prices vulnerable to rise.

“On the other hand, it is not unlikely that we could witness a sudden breakthrough regarding the return of ships and oil tankers crossing the Strait, or even the lifting of restrictions again on Iranian oil exports. This is for a single reason: the United States and President Donald Trump do not have enough time to engage in this war for long, with the midterm elections approaching and the average price of a gallon of gasoline remaining near US$4 per gallon. In this scenario, an OPEC+ hike might prove effective over time, lowering prices more quickly.”

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.

Geoteric and SINTEF have entered into a collaboration to develop a new AI agent platform based on open standards, which will make it possible to connect seismic interpretation directly with reservoir simulation

The platform will show how Geoteric’s solutions for AI-based interpretation of seismic data can be connected with simulators from SINTEF, enabling users to move more quickly from geological interpretation to dynamic reservoir simulation in a single shared workflow. The collaboration combines the expertise of Geoteric in AI-based interpretation of seismic subsurface data, withSINTEF’s experience in reservoir simulation, mathematical models and research-based software for complex physical systems.

The solution represents an important step towards a new generation of integrated workflows, in which AI agents collaborate across disciplines to combine interpretation, modelling, simulation and decision support. The aim is to give geophysicists, geologists and reservoir engineers faster insight, facilitating decision-making and management of uncertainty throughout the workflow.

By automating the interaction between specialised agents, users can obtain more verifiable interpretations and clearer quantification of uncertainty. This makes it easier to assess alternative geological models, compare different scenarios and identify the solutions that provide the strongest basis for decision-making.

“I am convinced that open AI agent platforms will change the way geoscientists work. Based on my experience building the company that delivered Petrel to the oil and gas industry, I see this as an important next step for the industry - where specialised applications can collaborate seamlessly to provide better subsurface insight,” said Jan Grimnes, chair of Geoteric.

“The opportunities lie not only in automating individual tasks, but in enabling specialised tools to work together to test alternatives, reveal uncertainty and give decision-makers a stronger foundation. This is what we want to demonstrate together with SINTEF.”

“This collaboration is an exciting opportunity to operationalise the research we are doing in SINTEF Agent Lab on the use of AI agents as part of expert systems,” added Knut-Andreas Lie, chief scientist at SINTEF.

“For several decades, SINTEF has developed simulation methods and research-based software for reservoirs, CO₂ storage and other geoenergy systems. Much of this work is based on open-source code and has been adopted in collaboration with major international energy companies. In this project, we can combine that experience with new agent technology and show how open tools can be integrated into more automated and verifiable workflows.”

The results of the collaboration will be presented for the first time at the international geoscience conference, IMAGE in Houston in August.

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

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.