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.

Flaring has risen to 150 bcm in 2024.

Global gas flaring at upstream oil and gas facilities has risen for a second year in a row, according to the World Bank’s annual Global Gas Flaring Tracker

Flaring rose by 2% to 151 billion cubic meters (bcm) in 2024, the highest level in almost two decades. Around 389mn tonnes of CO₂ equivalent – 46mn of that from unburnt methane, one of the most potent greenhouse gases – was needlessly emitted, wasting about US$63bn in lost energy and setting back efforts to reduce emissions and boost energy security and access.

While some countries have reduced flaring, the top nine largest-flaring countries continue to account for 75% of all flaring, but less than half of global oil production. Russia, Iran, Iraq, the USA, Venezuela, Algeria, Nigeria, Libya, and Mexico remain the top nine flaring countries in 2024. These countries are together responsible for over 75 % of global gas flaring while producing less than 50% of the world’s oil. The largest increases in flare volumes in 2024 occurred in Iran, Nigeria, the USA, Iraq, and Russia (in order of the flare volume increase). Together, these five countries accounted for 4.6 bcm of the additional gas flaring.

Iran’s 12% increase in flaring is primarily attributable to an equivalent rise in oil production, along with a continued lack of investment in associated gas recovery and utilisation. Consequently, the flaring intensity was more than three times the global average.

However reductions in gas flaring were observed in Algeria and Libya, mainly due to lower oil production.

Satellite data in the Global Gas Flaring Tracker shows that flaring intensity—the amount of gas flared per barrel of oil produced—has remained stubbornly high for the last 15 years. All top flaring countries saw an increase in their flaring intensity compared to 2012, except for Iraq and the USA. In Iraq, flaring intensity remained largely unchanged. The USA, which reduced its flaring intensity by almost 50% compared to 2012, now has one of the lowest intensities globally.

The report highlights that countries committed to the Zero Routine Flaring by 2030 (ZRF) initiative have performed significantly better than countries that have not made the commitment, achieving an average 12% reduction in flaring intensity since 2012, whereas those that did not saw a 25% increase. ZRF-endorsing countries with lower flaring volumes, including Brazil, Colombia, Egypt, Indonesia, and Kazakhstan, have demonstrated progress.

To accelerate progress, the World Bank’s Global Flaring and Methane Reduction (GFMR) Partnership is supporting methane and flaring reduction projects through catalytic grants, technical assistance, policy and regulatory reform advisory services, capacity building, and institutional strengthening. For example, in Uzbekistan, GFMR allocated US$11mn to identify and fix methane leaks in the gas transportation network, cutting methane emissions by 9,000 tonnes annually, and potentially reaching up to 100,000 tonnes each year.

“Governments and operators must make flaring reduction a priority, or this practice will persist. The solutions exist. With effective policies we can create favourable conditions that incentivise flaring reduction projects and lead to sustainable, scalable action. We should turn this wasted gas into an engine for economic development.” said Zubin Bamji, World Bank manager for the Global Flaring & Methane Reduction (GFMR) Partnership.

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.

MENA companies and organisations have big ambitions for international expansion and investment. (Image Source: Adobe Stock)

MENA companies and organisations have the biggest ambitions for international expansion and investment, according to Bloomberg Media’s latest Global Foreign Direct Investment (FDI) Outlook

90% of senior business decision-makers in MENA surveyed for the Outlook are looking to expand their operations internationally, well above the global average of 76%, with an average investment plan of US$239mn, compared to the global average of US$194mn.

The MENA region also leads in terms of innovation, with 53% of respondents looking to invest in advanced technologies such as AI within the next one to three years, with an eye to long-term growth.

The region stands out in integrating ESG into FDI strategies, with 69% of senior business decision-makers currently doing so, compared to the global average of 56%, and 29% planning to do so in the future. While commitment to ESG varies by region, MENA businesses tend to take a pragmatic approach, with many already integrating sustainability into their investment strategies.

The escalation of conflict in the Middle East, cybersecurity threats, and increased trade barriers are the top three investment concerns for MENA senior business decision-makers, according to the report titled, “Rebalancing in Real Time: How Shocks Are Shaping the Global Investment Landscape”, which surveyed 2,600 senior business decision-makers in 31 key markets across six regions.

While FDI priorities remained broadly consistent globally, emerging regions tended to focus more on cost and productivity. Additionally, political instability and security risks are having an increasing impact in shaping FDI decision-making.

While growing concerns were reported about trade policy and its widespread global impacts, the easing of U.S.–China trade barriers is the leading driver of economic optimism in the MENA region, with 76% of respondents expressing strong positivity, the highest global rating for this scenario.