High impact exploration drilling. (Image source: Westwood Global Energy Group))

QatarEnergy is expected to be the most active explorer in 2025, participating in 13 high impact wells, according to Westwood Energy’s latest insight on Key Wells to Watch in 2025

This reflects the expansion of QatarEnergy’s upstream portfolio in recent years. In 2024, QatarEnergy expanded its presence in Egypt with the signing of an agreement with ExxonMobil to acquire a 40% participating interest in two exploration blocks offshore Egypt, and signed an agreement with TotalEnergies to acquire additional interests in the Orange Basin, offshore Namibia. It has also made recent acquisitions in Mauritania and Lebanon.

High impact exploration drilling remains stable

Westwood forecasts high impact exploration drilling globally will remain stable in 2025, with 65-75 wells expected to complete, compared to the 69 completed in 2024. 21 frontier wells are expected in 2025, up from 19 wells in 2024, 11 of which are targeting frontier basins, whilst new plays will be tested in the proven Sabah, Rio Muni, Western Black Sea, Suriname-Guyana and Cauvery basins. Emerging play wells are expected to account for around 30% of high impact wells in 2025 while high value prospects in mature and maturing plays are forecast to make up 40%. The Arabian, Campos, Gulf of Mexico, Kutei, Norwegian Sea, Santa Cruz and Santos basins will all have multiple high impact maturing/mature play prospects drilled.

Busy year for Africa

Africa should see another busy year for high impact drilling with 14 wells expected to be drilled. Eyes will be on the Orange Basin, where 7-10 wells are expected to be drilled in 2025, which will be key to determining the ultimate potential of the basin. Elsewhere in Africa, Azule Energy is expected to drill the Kianda-1 well in the outboard area of the Congo Basin, Angola, and there are potential high impact wells being drilled offshore in the Namibe, Rio Muni and Tano basins, as well as potential frontier onshore tests in the Cabora Bassa and Kavango basins.

High impact drilling in North America, on the other hand, continues to decline, with only five high impact wells currently forecast to be drilled in 2025, while South America could see 17 high impact wells, making it the most prolific region globally. They include key wells in Brazil at Andorinha in the Campos Basin, and the Bumerangue well in the Santos, which could extend the pre-salt play further south. Key wells are also expected to be drilled in Columbia and Suriname.

In the Mediterranean, Black Sea and Middle East, 14 high impact wells are expected to be drilled. Key wells to watch are Egypt’s Khendjer-1 well in the North El-Dabaa area of the Mediterranean, and the Nefertari gas discovery in the Herodotus Basin offshore Egypt. Two wells are expected offshore Cyprus, and Matsola offshore Libya is a significant well, exploring the offshore extension of the Sirte Basin. Elsewhere, high impact wells will be drilled in Kuwait, Kazakhstan and the UAE.

14 high impact wells are expected in Asia Pacific, and eight in Europe.

Oman is seeking to boost exploration (PHOTO CREDIT: Adobe Stock)

Oman’s Ministry of Energy and Minerals (MEM) has launched a new competitive bid round for three oil and gas exploration areas

The new licensing round covers concession areas: Block 43A, Block 66, and Block 36, located across some of Oman’s diverse geological basins.

The three blocks up for grabs are:

Block 36: Located onshore in the Ghudun basin region, which is part of the larger Rub Al Khali basin, covering an area of 18,557 sq km.

Block 43A: Located onshore in the Buraimi area, covering an area of 6,920 sq km.

Block 66: Located on the eastern flank of the Rub Al Khali basin and covering an area of 4,898 sq km.

The new bid round is being conducted in collaboration with two industry partners, OQ Exploration and Production Company (OQEP) and Scotiabank.

In a regulatory filing with the Muscat Stock Exchange, OQEP reported: “This announcement is part of the ongoing cooperation framework between OQEP and the Ministry of Energy and Minerals, designed to attract new investments into Oman’s exploration and production sector.”

Despite ongoing attempts to diversity its economy, the oil and gas sector remains critical to Oman’s overall national wellbeing.

However, total oil production declined by 5.1 per cent in 2024, falling to 363.29mn barrels from 382.77mn barrels in the previous year, according to figures cited by local newspaper, Muscat Daily, reporting on news of the new licensing round.

The decline was mostly down to Oman’s adherence to OPEC+ production cut agreements.

The oil and gas sector also accounts for almost four-fifths of the country’s total foreign direct investment (FDI) stock.

As well as hydrocarbons, Oman is also actively looking to drive investment into renewables and alternative energy sources.

Days before the launch of the new round, Mohsen bin Hamad Al-Hadrami, Undersecretary at the Ministry of Energy and Minerals, was courting investment at a Japan business conference focused predominantly on alternative energy, including hydrogen.

The minister visited Mitsubishi Heavy Industries to see the latest technologies in electricity generation turbines that operate on natural gas and hydrogen, as well as electrolysis technologies for hydrogen production, and the role that these play in supporting the energy transition.

His visit also included a number of iron and steel companies, with a focus on the use of clean hydrogen in production processes.

Land drilling rig demand in the MENA region is forecast to rise to 680 rigs from 2025-2029. (Image source: Westwood)

Land drilling rig demand in the MENA region is forecast to rise to 680 rigs from 2025-2029, a 31% increase over 2020-2024, according to the latest edition of Westwood’s World Land Drilling Rig Market Forecast

Along with increased conventional oil drilling in places such as Algeria, Kuwait and Turkey, new opportunities are emerging in unconventional developments, led by projects in Saudi Arabia, such as the Jafurah unconventional gas development, and the United Arab Emirates.

Global land drilling demand set to rise

The report presents Westwood’s in-depth outlook for the global land drilling rig market over the 2025-2029 period, with global land drilling rig demand forecast to increase by 18% over the next five years compared to 2020-2024. It presents a broadly positive picture for the land rig market over the next five years, with continued strong activity in several key regions, including Asia, the Middle East and North America.

Rig demand is forecast to average 4,704 between 2025 and 2029, an increase of 18% on the previous five-year period. Global demand is forecast to be led by Asia Pacific (36%), with China continuing to be the largest country for rig demand. Eastern Europe, where demand is driven by Russia, follows at 27%, with North America third at 17%.

While North America has the largest fleet, this is chronically underutilised, with many rigs being cold stacked for multiple years. Operator consolidation, strict capital discipline and a drive to increase the production rate of each well drilled have fundamentally changed the US rig market, according to the report, meaning supply significantly outpaces demand. As a result, utilisation is expected to average just 33%, significantly below Asia Pacific (76%) and Eastern Europe & FSU (63%). This low utilisation is also expected to encourage rig contractors to relocate part of their fleets into other markets, a growing trend in the last couple of years.

72% of forecast rig demand is expected to come from just four countries: Canada, China, Russia and the USA, but they offer limited expansion opportunities. Westwood’s latest report identifies a number of countries offering major growth opportunities – including several that are progressing unconventional developments, offering an opportunity for rig contractors to relocate idled rigs in the USA into new markets. These markets include Argentina and Australia, along with the MENA region.

The new company will focus initially on Egypt.

XRG, ADNOC’s energy investment company, and bp, have established a new regional gas platform, Arcius Energy, which will initially focus on gas development in Egypt

Arcius Energy will focus on natural gas growth to meet growing regional demand, while supporting Egyptian energy security and economic development. It includes the Shorouk concession (bp 10% interest), which contains the producing Zohr field; North Damietta concession (bp 100% interest), which contains the producing Atoll field; and North El Tabya, Bellatrix-Seti East and North El Fayrouz exploration concession agreements.

Arcius Energy is 51% owned by bp and 49% by XRG and will be headed by Naser Saif Al Yafei, from ADNOC, who was appointed as chief executive officer while Katerina Papalexandri, from bp, was appointed as chief financial officer.

Exciting new chapter

H.E. Dr. Sultan Ahmed Al Jaber, executive chairman of XRG said, “The formation of Arcius Energy marks an exciting new chapter in our long-standing partnership with bp, and fully aligns with XRG’s objectives to accelerate the transformation of energy systems and build a world-scale integrated gas and chemicals portfolio to meet rising global demand. This progressive partnership will unlock a lower-carbon transition fuel to build a future where smarter, cleaner and more affordable energy is accessible for Egypt and the world."

Murray Auchincloss, chief executive of bp, added, “Arcius Energy brings together the strengths of our two companies to create a dynamic new platform for international growth in natural gas in the region. Together, we can continue to build on bp’s 60 years of technical expertise and delivery of safe and efficient operations in Egypt – a hub for new opportunities to build out a highly competitive gas portfolio in the region.”

 bp, along with its partners, currently produces around 70% of Egypt’s gas through its gas development projects in the West and East Nile Delta.