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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.

The Middle East offshore drilling rig market is undergoing a significant recalibration, says Teresa Wilkie, director – RigLogix at Westwood Global Energy Group

Following a few years of aggressive supply expansion, particularly in Saudi Arabia, the region continues to grapple with the fallout from rig suspensions and shifting investment priorities.
Between 2021 and 2024, the Middle East jackup market saw a dramatic increase in activity. Saudi Aramco’s push to grow its working jackup fleet from the mid-50s to 90 units drove a surge in marketed supply in the region, which peaked at an annual total of 183 units in 2024 – a 31% increase from 2021. This expansion was supported by reactivations, newbuild deliveries, and rig relocations from across the globe.

However, in early 2024, Aramco revised its plans, leading to the suspension or termination of 36 jackups and leaving drilling contractors to reassess their fleet strategies. Many of these rigs have been redeployed, with several regions absorbing the majority of excess capacity such as West Africa, Southeast Asia, China, other parts of the Middle East, as well as Brazil and Mexico to a smaller extent. Drilling contractors have also taken measures to rebalance their fleets and the wider global market, such as moving units to cold stack, selling these assets for non-drilling purposes, or returning bareboat-chartered jackups to their owners.

While Middle Eastern committed utilisation remains relatively high at 89%, actual working utilisation has dropped to 83%, and this supply and demand imbalance is now showing up in pricing.
Global jackup dayrates have dropped by around 17% year-to-date versus the full year figure for 2024, as contractors face intense competition, with more rigs chasing fewer opportunities following the influx of available supply from Saudi Arabia. The result? Lower bids, tighter margins, and a clear shift in operator leverage. Dayrates for contracts fixed in the Gulf Cooperation Council (GCC) this year are sitting around 16% lower on average when compared to contracts fixed in 2023.

Signs of market uptick

Despite the recent disruptions, the Middle East remains a cornerstone of offshore drilling. Qatar and the UAE continue to invest in major offshore gas projects, and Saudi Arabia is still pursuing brownfield revitalisation, albeit at a slower pace. These developments provide a foundation for continued rig demand.

The region’s long-term fundamentals remain strong. Committed utilisation figures shows that future backlog is still healthy, especially now that Saudi Aramco has started calling back some of the remaining idle rigs (with current indications that it could take back six to nine rigs from early 2026) and award activity in the region this year is already higher than it was for the full year of 2024. Meanwhile, the redeployment, cold stacking and retiring of rigs has helped mitigate some of the supply surplus.

Global implications and strategic lessons

The Middle East jackup market is transitioning from a phase of aggressive expansion to one of strategic recalibration. Saudi Aramco’s rig suspensions have reshaped the regional and global landscape, but the absorption of rigs to other markets and continued investment in gas and brownfield projects suggest that the market will remain buoyant.

The redeployment of rigs from Saudi Arabia underscores the importance of fleet flexibility and geographic diversification. Drilling contractors with the ability to quickly reposition assets have fared better, while those heavily exposed to the Middle East have faced greater challenges.

The inauguration of the new plant. (Image source: Farabi Petrochemicals)

Petrochemicals

Farabi Petrochemicals Company has inaugurated its fourth integrated Linear Alkyl Benzene (LAB) plant in Saudi Arabia

The US$950mn state-of-the-art facility, located in Yanbu Industrial City, adds 120,000 metric tons per year of LAB capacity. Built adjacent to Aramco’s refineries, the plant leverages locally produced kerosene and benzene feedstocks, ensuring world-class integration, efficiency, and sustainability performance.

The new plant underlines Farabi’s commitment to Saudi Arabia’s Vision 2030 objectives of downstream diversification, localisation and GDP growth.

The company also signed a new Memorandum of Understanding (MoU) with Unilever to expand their 20-year strategic partnership. Unilever is the world’s largest buyer of LAB, a key ingredient in household and industrial cleaning products.

The expanded agreement aligns Farabi’s capacity growth with Unilever’s constantly growing global demand in home care products, supporting innovation and sustainable growth. Both companies expressed confidence that this deepened collaboration will generate long-term value and advance their shared sustainability goals.

Eng. Mohammed Al Wadaey, CEO of Farabi Petrochemicals Group, said, “Farabi Petrochemicals is proud to be the world’s largest producer of LAB and NP which is the result of consistent growth, product diversification, advanced industrial infrastructure and dedication of our talented employees. We actively support Vision 2030 driving economic diversification, creating job opportunities, contributing to Saudi Arabia’s position as a global industrial hub, while maintaining a positive impact in the environment.”

DUG Insight combines interpretation, visualisation, processing, imaging and quantitative analysis – at any resolution. (Image source: DUG)

Technology

With operators across the Middle East acquiring tens of thousands of square kilometres of high-fold 3D and OBN seismic data, today’s interpretation challenge spans hundreds of billions of traces – demanding next-generation software built for true scale

Modern exploration teams need more than incremental upgrades; they need to connect every stage of the seismic workflow and make collaboration seamless.

For many companies, that challenge is compounded by fragmented workflows – with processing, imaging, and interpretation handled on separate packages. DUG Insight eliminates that complexity, uniting every stage of the seismic workflow within one powerful, interactive software designed for scale, speed, and collaboration.

Built first for DUG’s own geoscientists and now used in over 35 countries, DUG Insight combines interpretation, visualisation, processing, imaging and quantitative analysis – at any resolution. Designed for seismic/single/multi-channel and sub-bottom profiler data, the software offers a complete suite of industry-leading tools, with integrated 3D visualisation and mapping for pre-stack, 2D/3D and time-lapse studies. Quantitative interpretation (QI) functionality includes statistical rock physics and simultaneous absolute inversion. Featuring an intuitive, interactive interface, DUG Insight automates labour-intensive tasks and enables a seamless, productive user experience, while encapsulating project configuration and operation within a consistent workspace. Crucially for operators evaluating platform strategy, DUG Insight is not “interpretation-only” or “processing-only” – it is both, by design.

The software supports both on-premises and cloud-based deployments through DUG’s high performance computing system, with flexible licensing and round-the-clock technical support. Recent developments include AI-assisted interpretation tasks such as log interpretation and fault picking, further enhancing efficiency.

DUG’s continual investment in research and development keeps DUG Insight at the leading edge. The company’s revolutionary elastic multi-parameter FWI imaging technology, included in DUG Insight, is a complete replacement for the traditional seismic processing, imaging and elastic rock property inversion workflows.

With its new office in Abu Dhabi, DUG is working even closer with regional partners to support large-scale land and offshore projects across the Middle East. Whether for mega-merges, massive OBN datasets, or ultra-dense onshore surveys, DUG Insight is a single unified software to process, image, interpret and analyse seismic data – efficiently, interactively and at any scale.

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.”