The discoveries are in the Western Desert. (Image source: Adobe Stock)

Egypt's Ministry of Petroleum and Mineral Resources has announced that Khalda Petroleum Company has made three new oil and gas discoveries in the Western Desert

According to a ministry statement, the discoveries are expected to produce nearly 12mn barrels of oil equivalent and 4mn barrels of recoverable reserves.

The ministry said the three discoveries are estimated to produce 2,750 barrels of oil and condensates and 20mn cubic feet of gas per day.

The discoveries will raise the gas production of Khalda Petroleum Company, a joint venture between the Egyptian General Petroleum Corporation and US Apache Corporation, to over 480mn cubic feet.

At its General Assembly meeting in March, Khalda Petroleum Company chairman Saeed Abdel Moneim said the company is planning to invest around US$1bn during FY 2024/25 and achieved 10 oil discoveries during the first half of the current fiscal year, which have added reserves estimated at approximately 35mn barrels of oil equivalent (mmboe).

This year has seen a high level of exploration and production activity in Egypt. Earlier this year, bp announced it had discovered substantial oil and natural gas reserves in the King Mariout offshore block in the northern Mediterranean. bp also announced the start of production ahead of schedule from the second development phase of the Raven field, part of the West Nile Delta (WND) project offshore Egypt, in late February. The project involves the subsea tieback of additional Raven infill wells to its existing onshore infrastructure. The new wells are expected to produce around 220bn cubic feet of gas and 7mn barrels of condensate.

In January, ExxonMobil Egypt, a subsidiary of U.S. oil giant ExxonMobil, announced it had made a gas discovery as part of a drilling campaign in the North Marakia Block offshore Egypt.

The Ministry of Petroleum and Mineral Resources is currently evaluating bids for 13 exploration and production areas, with offers totalling more than US$700mn in expected investments. These cover four blocks in the Mediterranean, and nine blocks onshore. The ministry is reported to be preparing to launch new investment opportunities, including additional exploration areas and mature fields, through the open acreage system. It is actively encouraging international energy companies to boost production by leveraging advanced technologies.

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.