The two companies will cooperate on renewable energy, as well as hydrocarbons and energy transition. (Image source: Adobe Stock)

Italy's Eni and SONATRACH, Algeria's state-owned oil and gas company, have signed a memorandum of understanding to strengthen cooperation in hydrocarbons, energy transition and renewable energies, with a focus on energy security and economic development 

The signing took place during the Italy-Algeria intergovernmental summit in the presence of the President of the Democratic and Popular Republic of Algeria Abdelmadjid Tebboune and the Prime Minister of Italy, Giorgia Meloni.

Under the agreement, Eni and Sonatrach will consolidate cooperation for the enhancement of Algerian energy resources through new contracts aimed at increasing gas production, and the extension of gas supply contracts for export to Italy. The two companies will also strengthen collaboration in renewable energy and energy transition, through the development of new initiatives.

The MoU protocol follows the recent signing between Eni and Sonatrach of the agreement of the Zemoul El Kbar area and the allocation of the Reggane II area, which together with the initiatives covered by the protocol will contribute to increasing gas production up to 5.5 billion cubic metres per year by 2028, with total investments of more than US$8bn, as the country seeks international investment to boost oil and gas production. The National Agency for the Valorization of Hydrocarbon Resources (ALNAFT) unveiled six new onshore licensing opportunities for conventional hydrocarbon exploration in 2024, as part of a five-year licensing plan designed to attract global upstream investors.

Eni has been present in Algeria since 1981, with an equity production of around 137,000 barrels of oil equivalent per day in 2024.

NMDC Energy continues to experience strong growth. (Image source: NMDC Energy)

NMDC Energy, a subsidiary of UAE-based NMDC Group, has reported continued strong growth in its H1 2025 results

NMDC Energy recorded a 41% year-on-year surge in revenue to AED 8.2bn and a 16% rise in net profit to AED 583mn in the first six months of 2005 as it continued its regional expansion, broadened its capabilities, and diversified its revenue streams.

With award wins in the first half of 2025 totalling AED 13.9bn, and a backlog that stood at AED 49.9bn by the end of June 2025, its pipeline of projects reached AED 66bn by the end of the second quarter.

NMDC Energy’s 400,000 sq m fabrication yard in Ras Al Khair, Saudi Arabia, became fully operational during the quarter, strengthening the company’s offshore EPC and modular construction capabilities across the region.

Mohamed Hamad Almehairi, chairman of NMDC Energy, said, “Our progress this quarter demonstrates NMDC Energy’s pivotal role in building regional industrial capability at pace and at scale, as we charter a strategic path that emphasises future-ready initiatives and targeted growth. These are not just partnerships – they are the building blocks for long-term value and self-sufficiency – as we invest our traditional strengths and emerging opportunities to deliver growth and operational excellence at the forefront of the evolving energy sector.”

Eng. Ahmed Salem Al Dhaheri, CEO of NMDC Energy, added, “We continue to build precision and scale into our operations. We advanced local manufacturing partnerships, expanded regional fabrication capacity, and brought one of the Gulf’s most advanced yards online. These steps position NMDC Energy to undertake more complex EPC work faster and at a greater scale. We are building the next phase of our growth with precision, ambition and impact as we shape a world where infrastructure meets excellence.”

NMDC Energy concluded a three-year extension to its Long-Term Agreement (LTA) with Saudi Aramco and an option for an additional three years,  continuing a strategic partnership focused on offshore projects in Saudi Arabia. The company was also awarded the ICV Excellence Award at MIITE in the Semi-Governmental Manufacturers category, recognising its AED 17bn reinvestment in the UAE economy through support for SMEs, local suppliers and workforce development.

Gas deals are looking healthy.

Upstream merger and acquisition (M&A) activity fell sharply in early 2025, although gas deals are proving attractive, according to new research from Rystad Energy

Global deal value plunged 39% from the fourth quarter of 2024 to just US$28bn in the first quarter of 2025 – less than half the US$6bn recorded in the same period a year earlier. Although activity has picked up in Africa, Asia and the Middle East, it is not enough to make up for North America’s dominant activity. Upstream M&A deal value for the first half of 2025 reached just over $80bn, a 34% drop compared to the first half of 2024.

Although deal-making rebounded in Oceania, South America and Europe during the second quarter, it was unable to offset the sharp decline in US shale oil transactions. Consequently, North America’s share of global deal value dropped to about 51% in the first half of the year from 71%. Rystad Energy expects the decline in global upstream M&A activity to continue – except US-based shale gas plays– as macroeconomic headwinds add volatility and uncertainty to commodity prices.

“The slowdown is due mainly to volatile oil prices, tariff uncertainties, higher OPEC+ production and fewer oil-focused deals in the US shale industry,” said Atul Raina,vice president, Upstream M&A Research, Rystad Energy.

“Although a strong and profitable pipeline of upstream opportunities remains untapped in North America, US shale consolidation has likely run its course. Oil price volatility is creating uncertainty that makes it difficult for supermajors, independents and private equity-back operators, to capitalise on what would otherwise be an attractive market,” Raina said.

However, gas deals, especially in US shale and Canada’s Montney region, are holding up well. Outside North America, deal activity is expected to pick up in South America, Africa and Europe.

Deal values surged 30% in the first quarter, with gas representing 62% of traded resources.This momentum continued into the second quarter, with gas making up around 82% of total traded resources, the highest level seen since 2019.

With the increased focus on natural gas, major companies are adjusting their strategies to optimise portfolios and manage risk more effectively. For example, Equinor acquired non-operated stakes in EQT’s Marcellus assets, gaining exposure to robust gas production without taking on full operational responsibilities or risks.

“These non-operated joint ventures allow majors and international oil companies to focus on their core operational portfolios while maintaining exposure to US shale gas, which has a positive outlook due to upcoming LNG projects and rising energy demand from data centres. Retaining non-operated stakes also allows majors to secure feed gas for planned off-grid power plants focused on artificial intelligence (AI),” added Raina.

While international M&A activity fell in the first quarter of 2025, a rebound in Africa, Asia and the Middle East helped soften the decline. However due to a recovery in Q2, international deal value for the first half of 2025 reached US$39.5bn, a 37% year-on-year increase. Major transactions included ADNOC subsidiary XRG’s bid for Santos, which accounted for nearly half of the total international deal value in the quarter, Repsol and Nego Energy’s UK North Sea upstream businesses merging to form Neo Next Energy, Eni’s US$1.65bn divestment of upstream assets in Cote d’Ivoire and Congo-Brazzaville to Vitol, and DNO’s US$1.6bn acquisition of Sval Energi. If a mooted Shell-BP merger takes place, it could bump up annual deal value past US$200bn for a third successive year.

Looking ahead, Southeast Asia is also emerging as a promising area for mergers and acquisitions (M&A) with renewed interest in deepwater gas projects in Indonesia and Malaysia. However the global M&A market is expected to slow for the rest of the year, according to Rystad.

Caspar Herzberg, CEO, AVEVA. (Image source: AVEVA)

Green hydrogen company Protium has selected Industrial software company AVEVA to develop its digital industrial intelligence platform for the acceleration of its green energy solution

Protium designs, develops, finances, owns, and operates green hydrogen solutions for clients globally to achieve net zero energy emissions. Protium’s digital industrial intelligence platform will leverage AVEVA software to collect, contextualise, analyse, and visualise asset performance and operations data in an integrated digital twin. This digital twin can also detect faults and perform error analysis while providing critical visibility and insights to the team working throughout Protium’s value chain. With AVEVA’s solutions, Protium will benefit from smart monitoring and control, certified and proven electricity origin, plant operations optimisation, minimised downtime and increased reliability.

Protium is aiming to save 256,000 tons of CO2 per year, and projects that AVEVA solutions will help it save an additional 5-10% by optimising process design and utility consumption.

“Our collaboration with Protium brilliantly illustrates AVEVA’s commitment to enabling industrial sustainability,” commented Caspar Herzberg, CEO, AVEVA. “Leading the transition to net zero through emerging technologies requires flexible digital infrastructure. The data platform we’ve developed for Protium is tailored to manage a resilient and agile digital infrastructure in a cost-effective manner, leveraging the full potential of Protium’s industrial intelligence.”

“Green hydrogen is a key stepping stone in the UK’s ambition to cut CO2 emissions by 1 million tonnes a year by 2030. Achieving this goal cost-effectively and reliably will depend on building the right infrastructure and operating it efficiently. By working closely with AVEVA, we’ve developed the right set of digital tools to enable Protium to deliver green hydrogen at scale – critical at this point when we are about to open a second hydrogen production plant and growing our project portfolio,” added Jon Constable, COO, Protium.

KBR will continue to help BOC sustain production at the Majnoon oilfield.

KBR has secured a two-year extension of its engineering, procurement, and construction management (EPCM) contract with Basra Oil Company (BOC) for the Majnoon Oil Field 

Under the contract, KBR will continue to provide comprehensive EPCM services to help BOC sustain production capacity, enhance operational efficiency, maximise local content, and progress continued safety improvements.

The Majnoon Oil Field is a super-giant oil field located 60 km from Basra in southern Iraq. It is one of the richest oil fields in the world with an estimated 38 billion barrels of oil in place. Iraq’s state-run Basra Oil Company operates the field with support from China’s Anton Oil and KBR.

"This contract extension is a testament to the strong working relationship between KBR and BOC, and further reinforces KBR’s ongoing commitment to Iraq’s national energy strategy and the sustainable development of the Majnoon field, one of the most strategic assets in the country," said Jay Ibrahim, president, KBR Sustainable Technology Solutions. "KBR is committed to support local development and contribute to Iraq’s long-term domestic capacity enhancement."

“KBR will continue to be our strategic partner in EPCM projects in Majnoon, successfully supporting our long-term development goals and maximizing field potential through safe, efficient, and sustainable project execution,"  said Kadhim Kareem, CEO of the Majnoon Field at Basra Oil Company.

KBR has a significant involvement in Iraq. Last year it was awarded a US$46mn five-year contract to provide advisory and consultancy services to Iraq’s Ministry of Planning, to support the delivery of strategic infrastructure and energy megaprojects. This includes economic planning, strategy development, feasibility studies, technical reviews and large-scale project management.

The latest contract award follows hard on the heels of a FEED contract awarded by KAR Electrical Power Production Trading FZE (KEPPT) for the development of a major fertiliser facility in Basra, including a 2,300 metric tonnes per day (MTPD) ammonia production unit and a 3,850 MTPD urea production unit.