webcam-b

twitter linkedinfacebookacp contact us

Industry

The Middle East continues to develop its fossil fuels, along with renewables. (Image source: Adobe Stock)

Optimism about industry growth in the energy sector, as well as about energy transition prospects, is stronger in the Middle East and North Africa than anywhere else in the world, according to DNV’s Energy Insights 2025 Report

According to the report, based on an annual survey of more than 1,100 senior professionals, 84% of respondents in the Middle East and Africa express optimism about energy industry growth prospects compared to 68% globally, and this figure has risen sharply from 69% last year. The report highlights that the energy sector is booming in the region, as many countries look to develop both their renewable and fossil fuel resources, noting that it has become the fastest-growing renewables market outside China, mainly thanks to solar sector growth. Installed solar capacity is forecast to rise to 100GW of installed capacity by 2030, up from just 23GW today, with Saudi Arabia looking to generate half of its domestic electricity from renewables by 2030, including 40GW of solar PV – six times the current capacity. Early this year Masdar announced a 5.2GW solar plant combined with a 19GWh battery storage facility, making it the largest combined solar battery energy storage system (BESS)  in the world.

At the same time, the region is continuing to develop its fossil fuels, particularly natural gas, DNV notes. Iran, Qatar, and Saudi Arabia are in the world’s top ten natural gas producers, while other countries are also growing production.  The combination of gas and solar is a winning one, with solar offering a cheaper and cleaner way to meet rising domestic electricity demand, while natural gas can be profitably exported.

Middle East and Africa respondents are most optimistic about reaching revenue and profit targets in the year ahead, at 73% and 71% respectively, compared with 63%/54% in North America, 58%/48% in Europe, 55%/52% Asia Pacific and 63%/54% Latin America.

Uncertain political environment

The report highlights the uncertain policy and geopolitical environment, particular in the US, with political risk seen as the leading constraint to growth. Recent geopolitical shifts have caused considerable uncertainly, with a lot of capital being diverted from renewables into oil and gas, and emerging technologies such as green hydrogen CCS, green steel and synthetic fuels being negatively impacted.

Reflecting this uncertainty, several oil and gas companies, (bp for example), have scaled back renewables commitments over the past year and increased their investment in fossil fuels. 53% of oil and gas sector respondents say they will prioritise fossil fuels over renewables over the next five years — up from 46% a year ago, while 24% of respondents in the power sector are looking to prioritise fossil fuels over renewables over the next five years, more than double the figure (11%) of a year ago. While optimism in the oil and gas sector has held steady over the past two years, standing at 66% in 2025, most oil and gas respondents (60%) say that political issues such as elections, policy uncertainty and regime change are a major threat to success in the year ahead.

Policy reversals and uncertainty are expected to hold back the energy transition in some sectors and regions, with only 55% of energy industry professionals now believing the energy transition is accelerating, sharply down from 79% two years ago. A key factor noted is the shift in investor sentiment. However, many organisations continue to invest in sustainable energy, taking a medium to long-term view.

Certain parts of the world are positive about the  pace of the energy transition, notably the Middle East and Africa region, where 77% say the pace of the energy transition is accelerating,  and Asia Pacific, where the figure is 68%. In contrast, only 47% in North America and 48% in Europe think the pace is accelerating.

"Despite global economic and political uncertainty, most of the energy industry maintains a general optimism, supported by megatrends such as electrification and energy demand," says the report. "Energy security and affordability have become priorities and are influencing both oil and gas expansion and the acceleration toward renewables. Sentiment varies from region to region, with the Middle East and Africa the most optimistic, and North America the least."

3t Drilling Systems, the advanced drilling simulator provider, has been appointed by the International Association of Drilling Contractors (IADC) to redesign its flagship learning platform, KREW

The new KREW platform will deliver adaptive, AI-powered learning with immersive 3D content and hybrid training pathways.

The multi-platform learning solution, built around IADC’s WellSharp curriculums, will provide all users with personalised training by identifying and addressing individual knowledge gaps while streamlining training processes.

 The platform will be accessible via browser or mobile app, with offline capability for remote operations, ensuring 24/7 accessibility for learners across the globe.

The platform includes time on the simulator, and an intelligent AI-powered chatbot that will allow users to test their knowledge in real-time, simulate real-world scenarios, and receive instant feedback. This innovative approach will ensure learning is interactive, relevant and keeps up with the needs of the industry.

Development of the platform is now underway, with a relaunch planned for early 2026.

Clive Battisby, COO at 3t Drilling Systems, said, “This isn’t just about upgrading a platform – it’s about elevating how our industry learns, globally. We’re proud to partner with IADC on this game-changing initiative, redefining how the industry learns and grows in today’s evolving tech landscape and well into the future.”

Brooke Polk, vice president - Accreditation Operations at IADC, said, “Our goal is to empower learners through modern, accessible, and intelligent continuous learning, focused on knowledge retention, that keeps people working in our industry safe now, and for the decades ahead of us. With 3t’s expertise and innovative approach, we are confident that the new KREW will set a new benchmark for the industry.”

The groundbreaking ceremony. (Image source: TotalEnergies)

TotalEnergies and OQ Exploration and Production (OQEP) have broken ground on the Marsa LNG plant in the port of Sohar, northern Oman

The 1 million ton per year (Mt/y) liquefaction plant is being built by Marsa LNG LLC, a joint company between TotalEnergies (80%) and OQEP (20%). LNG production is expected to start in the first quarter of 2028, to serve the marine fuel market in the Gulf.

With an investment of US$1.6bn, Marsa LNG Project will become the Middle East’s first dedicated LNG bunkering hub. Once operational, the facility will provide cleaner fuel alternatives for the shipping industry, underpinning the nation’s economic diversification and environmental sustainability objectives while marking a transformative step for the region’s maritime sector.

A new LNG bunkering vessel is currently under construction, which will be stationed in Sohar from 2028 to supply LNG to a wide range of vessels.

The Marsa LNG plant is fully electrified and has a 300 megawatt-peak (MWp) photovoltaic solar farm, making it one of the lowest carbon intensity LNG plants in the world, with less than 3 kg CO2e/boe of scope 1 and 2 emissions.

Major contracts

Three major contracts have been signed relating to the construction of the hub. WSP International Oman Branch was awarded a consultancy services contract, to provide project management, back-office support, design review, site supervision, and contract management. The second agreement was signed with Boskalis International Oman Branch for dredging works, involving the removal of approximately 3.8mn cubic meters of material to develop the access channel, berth pocket, and turning circle, with project completion expected in September 2025. The third contract was awarded to Six Construct LLC Oman Branch, covering the construction of the LNG jetty, shore protection, and drainage systems.

"I'm very proud to see Marsa LNG breaking ground, alongside our longstanding partner OQEP, and with the strong support from the Sultanate’s authorities. This flagship project demonstrates that LNG production can be very low carbon, contributing to making gas a long-term transition fuel. With an ambitious technical design, we intend to set the standard and pave the way for the next generation of low-emissions LNG plants across the world. We also offer an effective way to support the shipping sector’s energy transition, by providing lower-emissions marine fuel in a key location at the entrance of the Gulf,” said Patrick Pouyanné, chairman and CEO of TotalEnergies.

His Excellency Salim bin Nasser Al Aufi, Minister of Energy and Minerals, stated, “This project marks a significant step in advancing low-emission energy solutions, reinforcing Oman's position as a reliable regional hub for clean maritime fuel. It aligns with the objectives of Oman Vision 2040, particularly in sustainability and industrial innovation. Additionally, it underscores our dedication to providing responsible energy solutions for the global shipping sector while actively reducing its carbon footprint.”

"As the first LNG bunkering hub in the Middle East, Marsa LNG will play a pivotal role in reducing emissions in the shipping industry while reinforcing Oman’s position as a key player in the global energy sector," added Ahmed Al Azkawi, CEO of OQEP.

Offshore rig attrition by type and annual marketed utilisation. (Image source: Westwood)

Saudi Aramco’s suspension of over 30 jackup contracts by up to one year is a factor behind the tailing off in demand in the offshore rig market, according to new research from Westwood

This suspension is related to the deferral of some expansion projects following the decision to maintain maximum sustainable capacity at 12 mn bpd rather than raise it to 13mn bpd as originally planned.

Other factors behind the dampening of offshore rig market demand are the entry of newbuild rigs in the market and the deferment of several long-term deepwater drilling and P&A projects.

With the combination of a drop in demand and increase in supply, marketed utilisation fell to 88% as of March 2025, representing a fall of 6% in less than two years.
Westwood predicts utilisation of the combined jackup, semisub and drillship segments to fall further this year to around 85%, making it likely that more rigs could permanently be removed from the active drilling fleet this year.

So far this year, nine rigs have been confirmed for removal from the active fleet: four jackups, three semisubs and two modern ultra-deepwater drillships.

The average age of assets retired from the fleet has continued to reduce for floating rigs, but not for jackups. Along with falling utilisation and age, factors increasing the likelihood of a rig being scrapped are limited future prospects, being without work or cold-stacked for some time, and being due for a five-yearly special periodic survey (SPS), which can be expensive.

Other factors can be one-off designs in a contractor’s fleet, where they may not be able to spread spare parts costs etc, outdated designs, and mergers between owners, which can lead to the streamlining of fleets.

“To sum up, due to the reduction in jackup, drillship and semisub demand and utilisation this year, we will likely see more assets moved to cold stack due to not having follow-on commitments in place,” concludes Westwood. “Meanwhile, further M&A activity could also be in the works.

“These factors we believe will spur further older, idle and surplus assets to be removed from the fleet, which in the long run may help set the stage for a stronger recovery in utilisation from the second half of 2026 onwards, when Westwood expects to see a rebound in demand.”

The partnership will enhance the availability and quality of rotating equipment repairs and services across Qatar. (Image source: Adobe Stock)

Sulzer has partnered with Manweir WLL, the oil & gas arm of Mannai, to enhance the availability and quality of rotating equipment repairs and services across Qatar

Through its partnership with Manweir, Sulzer will now have an operations team based in Manweir’s Ras Laffan facility, reducing delivery times for oil and gas, power generation, water desalination and industrial customers whose equipment would previously need to be sent out of the country. Sulzer’s global operational excellence and OEM expertise will provide customers with world-class services, elevating reliability and efficiency for rotating equipment across Qatar. Through this partnership, the two companies will combine local knowledge with global best practices, elevating service standards, fostering innovation, and strengthening collaboration with customers to support Qatar's evolving industrial landscape. This alliance strengthens Qatar’s industrial supply chain while aligning with its vision of enhancing In-Country Value (ICV) and supporting the Qatar National Vision sustainability commitments.

"We strive to be close to our customers and this partnership with Manweir allows us to deliver high-quality service and safety standards to our customers in Qatar,” said Alex Myers, president Sulzer Services INMEC Region. “With the strategic alignment from both parties, we are poised to deliver best-in-class service solutions, ensuring operational excellence and added value to our customers.”

"We are delighted to partner with Sulzer, bringing together our strong local capabilities with Sulzer’s global expertise," said Neil Angus, general manager of Manweir WLL. "This partnership will accelerate technological advancements, enhance service delivery, and provide customers with a one-stop solution for high-quality rotating equipment repairs and maintenance. This collaboration will also drive innovation and sustainable growth for both organisations.”

Through this partnership, Manweir and Sulzer will combine local knowledge with global best practices, elevating service standards, fostering innovation, and strengthening collaboration with customers to support Qatar's evolving industrial landscape.

More Articles …