The new discoveries are in the Eastern Region and Empty Quarter. (Image source: Adobe Stock)

Saudi Arabia's Minister of Energy, Prince Abdulaziz bin Salman bin Abdulaziz, has announced that Aramco has discovered 14 Arabian oil and natural gas fields and reservoirs in Eastern Region and the Empty Quarter

The discoveries include six fields and two reservoirs of oil, as well as two fields and four reservoirs of natural gas. The oill. discoveries  amount to a total of 5,801 bpd from the Eastern region, and 2,325 bpd from the Empty Quarter, giving a total of 8,126 bpd, along with 2.11 mmscf/d of associated gas. The natural gas discoveries amount to a total of 80.5 mm scf/day along with 6,010 bbl condensate.

While these are modest compared to the Kingdom’s vast reserves of more than 260bn bbl, the second largest in the world, the Minister stressed the significance of the added value that these discoveries represent, cementing the Kingdom’s leading position in the global energy sector, reinforcing its rich hydrocarbon potential and strengthening its ability to meet both domestic and global energy demand efficiently and sustainably, as well as supporting the Kingdoms ambitious Vision 2030 development plans.

Oil prices are however currently at a relatively low level, having recently dropped below US$60/bbl in the face of a perfect storm of recession fears following the imposition of US tariffs and the unwinding of OPEC production cuts. Saudi Arabia, which has shouldered most of the burden of OPEC production cuts, is currently producing around 9mn bpd, and with the unwinding of OPEC production cuts, is due to bump that up to 9.2mn bpd in May.

Aramco intends to maintain its position as the world’s largest crude oil company by production volume, and is progressing several crude oil increments that are scheduled to come onstream in the coming years to sustain maximum sustainable capacity at 12mn bpd, although it has abandoned previous plans to raise this further to 13mn bpd. It is instead strengthening its focus on gas, including the development of its unconventional gas resources.

Downstream, Aramco intends to continue the strategic integration of its Upstream and Downstream businesses, grow its liquids-to-chemicals business and enhance its domestic and global Downstream businesses in key high-growth geographies such as China, India, and Southeast Asia. In recent developments, China Petroleum & Chemical Corporation (Sinopec), and Yanbu Aramco Sinopec Refining Company (Yasref) have announced the signing of an agreement intended to pave the way for a major petrochemical expansion at Yasref, in Yanbu, on the west coast of Saudi Arabia. It will involve the creation of a state-of-the-art petrochemical unit, a large-scale mixed feed steam cracker with a 1.8 million tons per year capacity, and a 1.5 million tons per year aromatics complex with associated downstream derivatives integrated into the existing Yasref complex. This is expected to enhance Yasref’s ability to meet the growing demand for high-quality petrochemical products.

The KM-250 expansion project is set to boost capacity by a further 50%. (Image source: Adobe Stock)

Dana Gas and its partner Crescent Petroleum, along with their partners in the Pearl Petroleum Consortium, have announced that cumulative production from the Khor Mor field in the Kurdistan Region of Iraq has reached 500mn bbl of oil equivalent (Mmboe), with further initiatives planned to grow the field’s production

Khor Mor is Iraq’s largest non-associated gas field. Daily production from Khor Mor in early March reached 525 MMscfd of natural gas, a growth of 75% since 2017, in addition to 15,200 bpd of condensate, and 1,070 t/d of LPG. The Khor Mor plant provides the fuel for around 75% of the KRI’s electricity generation.

Progress on the US$1bn KM-250 expansion project, which is set to boost capacity by a further 50%, has advanced in recent months through fast-track simultaneous project construction and commissioning activities, enabling the company to cut the overall project schedule by several months. Completion is now expected in Q1 2026.

The consortium has also commenced work on an appraisal strategy to unlock Khor Mor’s additional significant hydrocarbon potential and plan the next phases of the field’s development.
Building on the immense potential of the Chemchemal field, the Pearl Petroleum partners are appraising the Chemchemal Cretaceous reservoir with a view to initiating production of up to 71 MMscfd during 2026. The partners have committed US$160mn to drill three wells, install an extended well test (EWT) facility, and construct associated enabling infrastructure.

Majid Jafar, CEO of Crescent Petroleum and board managing director of Dana Gas, said, “We are at the start of an exciting new chapter for Pearl Petroleum with the imminent completion of the KM-250 expansion project, initial appraisal and development of the Chemchemal Field and an appraisal strategy to further unlock hydrocarbon potential of the Khor Mor Field. This work will further enhance the energy sector and economy of the Kurdistan Region and all of Iraq.”

Pearl Petroleum was founded in 2009 as a consortium with Dana Gas and Crescent Petroleum as joint operators with a 35% equity share each, and with OMV, MOL, and RWE subsequently joining the consortium with a 10% share each. Since then, the project has delivered energy at scale to the KRI, making a considerable impact on the region’s economy, society, and environment as well as on localisation, with 80% local employment.

The contract signing. (Image source: bp)

bp has received final government ratification for its contract to invest in the redevelopment of several giant oil fields in Kirkuk, in the north of Iraq, following the agreement of terms in February

The contract between North Oil Company (NOC), North Gas Company (NGC) and bp includes the rehabilitation and redevelopment of the fields, spanning oil, gas, power and water with potential for investment in exploration.

“bp has a decades-long history in Iraq, and we look forward to building on this as we embark on our next chapter of production in the country,” said bp chief executive Murray Auchincloss. “From signing a memorandum of understanding last year to now fully completing our agreement, we’re looking forward to getting to work. Together with our partners, we aim to deliver world-class operations, combining deep local knowledge with our expertise in managing giant fields and safely executing major projects.

bp sees the project as an enormous opportunity aligning with its plans to ramp up oil and gas production and scale back renewables investments, as part of a revised growth strategy focusing more on hydrocarbons.

bp will now work under the guidance of the Government to set up a new operator – an unincorporated organisation comprising predominantly personnel from NOC and NGC, but also with secondees from bp – to prepare for the initial stages of development.

The agreement is for an initial phase that includes oil and gas production of more than 3bn barrels of oil equivalent. It includes the Baba and Avanah domes of the Kirkuk oil field and three adjacent fields in Federal Iraq – Bai Hassan, Jambur and Khabbaz – all of which are currently operated by the NOC. The wider resource opportunity across the contract and surrounding area is believed to include up to 20bn barrels of oil equivalent.

bp has a long history at Kirkuk, supporting NOC and the Iraq government on technical studies between 2013 and 2019 to explore the potential for redevelopment. It was also a member of the consortium of firms that discovered oil at Kirkuk in the 1920s.

bp has a long history at Kirkuk (IMAGE SOURCE: Adobe Stock)

Iraq has agreed contract terms with bp for the redevelopment of oil fields at Kirkuk, with work expected to begin in 2025

The deal will see bp invest in various Kirkuk fields, providing oil, gas, power and water rehabilitation work, with the potential for investment in exploration too.

The agreement — subject to final government ratification — is for an initial phase and includes production of more than three billion barrels of oil equivalent (boe). It includes the Baba and Avanah domes of the Kirkuk oil field and three adjacent fields – Bai Hassan, Jambur and Khabbaz – which are currently operated by the North Oil Company (NOC).

In a statement, bp said that the “wider resource opportunity” across the contract and surrounding area is up to 20 billion boe. The value of the work is expected to be worth in the region of US$25bn over the contract period, according to news agency Reuters.

“This agreement builds on our longstanding and strategic relationship with the Iraq government and delivers access to a material new resource opportunity, within one of the world’s most prolific hydrocarbon provinces,” said bp executive vice president William Lin.

The news comes after bp announced that it would ramp up oil and gas production, and scale back renewables investments, as part of a revised growth strategy focusing more on hydrocarbons.

Under the terms of the agreement, bp’s remuneration will be linked to incremental production volumes, price and costs.It will also be able to book a share of production and reserves proportionate to the fees it earns for helping to increase production.

New operator

The intention is to to set up a new operator, initially an unincorporated organisation comprising predominantly of personnel from NOC and North Gas Company (NGC), with secondees from bp. This will take over operations at Kirkuk from NOC, although bp said it later expects to form a standalone incorporated joint venture to hold its interests in the operator. Its first priority will be to stabilise and grow production, with work set to include a drilling programme, the rehabilitation of existing wells and facilities, and the construction of new infrastructure, including gas expansion projects.

bp said the investment will bring opportunity and growth to the Kirkuk region, as well as improving supply chain capability alongside job creation.

“It will enable us to bring our experience of managing giant fields to realise the potential of this important asset for Iraq, working alongside and in close partnership with NOC and NGC,” added Lin. “This opportunity is fully in line with our priority of pursuing new growth opportunities for bp as we strengthen and high-grade our portfolio across the world.”

The deal follows a memorandum of understanding signed by bp and Iraq in July 2024, of which technical terms were agreed in December and the majority of commercial terms in January.

bp has a long history at Kirkuk, supporting NOC and the Iraq government on technical studies between 2013 and 2019  to explore the potential for redevelopment. It was also a member of the consortium of firms that discovered oil at Kirkuk in the 1920s.