E&P

SAS is active in shallow-water offshore drilling operations.

Saipem has signed a legally binding sale and purchase agreement with ADES Saudi Limited Company, an indirect subsidiary of ADES Holding Company (ADES) for the sale of its entire shareholding (owned through its subsidiary Saipem International B.V.) in Saudi Arabian Saipem Limited (SAS)

SAS is active in shallow-water offshore drilling operations, with a fleet comprising three owned jack-up rigs (Perro Negro 7, Perro Negro 8, Perro Negro 10) and two leased jack-up rigs (Perro Negro 11 and Perro Negro 13).

In 2025, SAS recorded revenues of Saudi Arabian riyals 636 million, equivalent to US$170mn.

The value of the transaction amounts to US$285mn on a debt-free/cash-free basis and will be paid in cash at closing, subject to customary adjustment mechanisms.

The proceeds from the transaction will be used in line with the objectives of Saipem’s industrial plan.

Upon completion of the transaction, the parties will enter into a bareboat charter agreement that will allow Saipem to continue its ongoing operations in Mexico with the Perro Negro 10 rig and to ensure full compliance with its existing commitments.

The transaction represents a further step in the implementation of Saipem’s strategy aimed at focusing its portfolio on deepwater and harsh-environment offshore drilling, strengthening the Group’s positioning in higher-complexity, higher-value-added segments.

Completion of the transaction, indicatively expected by the third quarter of 2026, is subject to the satisfaction of customary conditions precedent, including the obtainment of applicable regulatory approvals.

In connection with the transaction, Saipem is advised by Moelis & Company UK LLP, acting as financial advisor and by Clifford Chance, together with AS&H Clifford Chance, as legal counsel.

Dana Gas is pursuing a US$100mn investment programme in Egypt. (Image source: Dana Gas)

Dana Gas PJSC, the Middle East’s regional private sector natural gas company, has announced encouraging results from its Egypt drilling programme, together with the receipt of additional payments totalling AED 79 million (US$21.5 million), marking the full settlement of all overdue receivables in Egypt and the continuation of payments by the Egyptian Government

The progress achieved in Egypt reflects the combination of an improved fiscal framework under the Consolidated Concession Agreement, constructive cooperation with the Egyptian Government, the closure of all overdue receivables, and Dana Gas' continued investment in its asset base. The full settlement of overdue receivables and continued timely payments have strengthened the business’ confidence in further investment in Egypt, alongside the Government’s ongoing efforts to encourage upstream investment, increase domestic gas production and reduce reliance on imported LNG.

Dana Gas has been actively executing its US$100mn investment programme, focused on stabilising production and restoring growth across its Nile Delta portfolio. The company delivered a return to production growth in the first quarter of 2026, with average production increasing 4% year-on-year to 13,060 boepd, marking the first increase in output since 2017.

In 2025, the company successfully drilled four wells and carried out workovers across three additional wells, adding approximately 30 MMscf/d of production and 36 Bcf of reserves.

More recent drilling activity has delivered results significantly above expectations. The latest well has identified an estimated 10 Bcf of gas reserves, significantly exceeding the original prognosis of 3 Bcf. The result opens up additional development and exploration opportunities across the licence area and has the potential to contribute approximately 12 Bcf of future gas resources once developed. Dana Gas plans to drill four further wells before the end of 2026.

Richard Hall, chief executive officer, said, “The Egyptian Government’s settlement of all outstanding receivables and the return to full, timely payments are important developments that give us greater confidence to continue investing in Egypt. Combined with the progress we have made operationally over recent months, this demonstrates the benefits of the investment programme that we continue to execute. 

"We are already seeing tangible operational results. Production returned to growth in the first quarter for the first time since 2017, and our latest well results have exceeded expectations.

"The most recent well has identified significantly more gas resources than originally anticipated, highlighting both the quality of our acreage and the opportunities that remain across our portfolio. The result opens up additional development and exploration potential and further strengthens our confidence in the long-term outlook for the Egypt business."

Hall also acknowledged the support of the Ministry of Petroleum and Mineral Resources, EGPC and EGAS, and their efforts to encourage investors in the energy sector to increase domestic gas production and reduce country’s dependence on gas imports.

These efforts are paying off, with a number of discoveries being made recently. They include the oil and gas discovery by Agiba Petroleum Company, the joint venture between the Egyptian General Petroleum Corporation (EGPC) and Eni, in the Western Desert; a gas discovery made by Eni in the Nile Delta region, following its gas and condensate discovery in the Temsah concession in the Eastern Mediterranean; and a gas discovery by the USA's Apache, in collaboration with EGPC, in the Western Desert.

See also: https://oilreviewmiddleeast.com/exploration-production/dana-gas-receives-egyptian-government-payment-to-support-drilling-programme

The contract is to develop a number of gas fields in Syria and increase production from existing fields. (Image source: Adobe Stock)

The Syria Petroleum Company (SPC) has signed a development contract with the USA’s ConocoPhillips and Novaterra Energy to develop a number of gas fields in Syria and increase production from existing fields, to boost the supply of urgently needed gas for the electricity and other key sectors

The contract follows an MoU signed seven months ago and a series of technical, legal and commercial meetings and discussions focused on preparing studies and formulating the executive frameworks of the project.

The project aims to increase gas production from the targeted fields and develop their operational infrastructure in line with the latest technical standards, while supporting plans to develop the energy sector and attract international expertise and investment to contribute to the rehabilitation and development of the sector’s infrastructure. Years of civil war and sanctions have seen the country’s domestic natural gas production plummet to around 3 bcm in 2023 from 8.7bcm in 2011, according to Reuters. Syria’s power generation sector is short of reliable gas supply, with existing production meeting less than half of current demand and necessitating gas imports. 

Minister of Energy Eng Mohammed Al-Bashir confirmed that the contract represents an important milestone in the development of Syria’s energy sector, enhancing natural gas production, supporting the electricity system and accelerating economic recovery efforts.

Yousef Qiblawy, president and chief executive officer of SPC stated that the contract marks an important step in the development of the gas sector and reflects the confidence of international partners in the investment opportunities available in the country. He stressed that the project will contribute to increasing production, improving operational efficiency and supporting energy security.

“Through this partnership, we look forward to accelerating the development of existing gas fields and exploring new opportunities in a way that supports energy security and strengthens the sector’s ability to meet development needs in the coming phase,” he said.

Officials from ConocoPhillips and Novaterra also expressed their commitment to leveraging their technical and operational expertise and applying the latest global technologies to contribute to the development of gas fields and accelerate production in cooperation with Syrian national teams.

In a bid to attract foreign investment into the oil and gas sector, the Syrian government has signed agreements with a number of international and regional companies to assess and develop its oil and gas fields including Chevron, QatarEnergy, TotalEnergies and Dana Gas.

The lifting of sanctions on Syria last year opened the way for US companies to do business with the new government. ConocoPhillips was present in Syria before the civil war. In May, it signed a deal with Total Energies, QatarEnergy and the Syria Petroleum Company to launch a technical review of offshore Block 3. Novaterra specialises in restoring and developing oil natural gas resources in challenging environments. It aims to expand Syria’s oil production and gas supply for power generation by restoring production from existing fields, bringing on-stream discovered accumulations and exploring for and developing further resources.

In the push to restore production capacity, efforts are ongoing to return oilfields to service and increase operational readiness through technical upgrades and maintenance work. Syria’s Ministry of Energy has completed the rehabilitation of five oil wells in the al-Bishri field in the country’s central region. The work was carried out by SPC using its in-house technical expertise and operational resources. SPC is continuing work on the remaining stages of the project.

MOL Group has signed a production sharing agreement with its partners, Repsol and Türkiye Petrolleri A. O. (TPAO) for an offshore exploration area in the Mediterranean Sea, after being granted an exploration licence by LIbya's NOC 

The project will contribute to the revitalization of Libya’s oil and gas industry and marks a strategic milestone for Central Eastern Europe’s energy security, according to MOL.

The signing of the production sharing agreement represents a significant step in advancing exploration activities in Libya. MOL Group entered the country earlier this year through a successful bid with its JV partners for an offshore exploration licence in Libya’s first bidding round for 18 years, which attracted more than 40 bids, signalling growing international interest in Libya’s largely untapped hydrocarbon potential. Five blocks were awarded, with MOL (20%) together with Repsol (40% as operator) and TPAO (40%), being awarded the O7 offshore block.

The O7 block covers more than 10,300 km² in water depths exceeding 1,500 meters, located approximately 140 kilometres northwest of Benghazi. Its deepwater setting aligns with the consortium’s extensive offshore experience.

Activities in Block O7 will include the acquisition of 1,500 km 2D and 2,300 km² 3D seismic data and the drilling of one exploration well.

“We are excited that our joint project with Repsol and TPAO has entered a new phase with the signing of a production sharing agreement. This also means a new milestone in the revitalisation of Libya’s oil and gas industry and we are honoured to be part of it. Libya holds strategic importance for Europe and offers an exceptional offshore exploration opportunity in North Africa. We are committed to contributing our expertise to Libya’s economy, while also strengthening the energy security of Central Eastern Europe through a new source.“ said Zsombor Marton, executive vice president of MOL Group Exploration and Production.

The announcement follows the signing of a new strategic partnership between MOL Group and Libya’s National Oil Corporation (NOC) in January 2026 which involves exchanging expertise, deepening technological cooperation, and identifying new business opportunities that strengthen both organisations' international presence and future growth. Areas of potential co-operation included hydrocarbon exploration and production, technological and field development innovations, oilfield services opportunities in Libya, crude supply and trading activities.

MOL is looking to expand its international portfolio to maintain its strategy target of at least 90,000 barrels of oil equivalent/day production level over the next five years.

Libya’s oil production currently stands at around 1.4mn bpd. NOC aims to produce 1.6mn bpd by the end of 2026, rising to 2mn bpd in the medium term, and sees the participation of international companies as crucial to achieving its growth plans. Libya’s NOC has also signed production sharing agreements recently with Spain’s Repsol, in partnership with the Turkish Petroleum Corporation (TPAO); and Eni, in partnership wih QatarEnergy.