Industry

70% of the Ruwais LNG production capacity is already committed. (Image source: Adobe Stock)

bp, Mitsui & Co., Shell and TotalEnergies are to take a 10% equity stake each in ADNOC’s Ruwais LNG project

ADNOC will retain a 60% majority stake and serve as lead developer and operator of the project, which consists of two 4.8mtpa LNG liquefaction trains with a total capacity of 9.6mtpa. The first LNG export facility in the MENA region to be powered by renewable energy, it will be one of the world’s lowest carbon-intensive LNG facilities and is set to more than double ADNOC’s UAE LNG production capacity to around 15mtpa, as the company builds its international LNG portfolio.

ADNOC has awarded an engineering, procurement and construction (EPC) contract worth around US$5.5bn to a Technip-led joint venture and is set to commence start construction shortly, with LNG deliveries expected to start in 2028. ADNOC has signed several new long-term LNG sales commitments with international partners, including for the delivery of 1 million tonnes per annum (mtpa) with Shell and 0.6mtpa with Mitusi & Co., taking the committed Ruwais LNG production capacity to 70%.

Building on long-standing partnerships

Murray Auchincloss, bp CEO, said, “bp is proud to be joining ADNOC in its plans for Ruwais LNG, deepening our long-standing strategic partnership. This is a further example of our investment in gas growth in the Middle East as we continue to strengthen our LNG business globally.”

Wael Sawan, Shell CEO, said, “We are delighted to build on our long-standing partnership with ADNOC through the Ruwais LNG project. In line with our strategy to create more value with less emissions, we are investing in additional LNG capacity and further growing our world-leading LNG portfolio, with energy-efficient and carbon-competitive projects."

Patrick Pouyanné, chairman and CEO of TotalEnergies, said, “Last year at COP28, TotalEnergies and ADNOC both committed to lead the Oil & Gas Decarbonization Charter to reduce the industry’s greenhouse gas emissions. With Ruwais LNG, we are putting this principle into practice with one of the world’s lowest-carbon intensity LNG plants, allowing natural gas to fully play its role of transitional fuel.”

OPEC+ production in June was only marginally above its target, according to research from Rystad Energy

OPEC+ production exceeded its target by just 53,000 bpd – its lowest level since the start of the year.

Undercompliance with production cuts by the OPEC+ group hit its highest level in April 2024 since April 2021 (399,000 bpd). Since then, compliance has been rapidly improving.

In May, the group overproduced by 176,000 bpd, while in June, overproduction was just 53,000 bpd. Production in June averaged 33.903mn bpd, while the target was 33.85mn bpd.

Increased overall compliance

The increased overall compliance due to the fact that compliance among the eight voluntary cutters – Oman, Kuwait, the UAE, Algeria, Saudi Arabia, Russia, Iraq and Kazakhstan – has improved since April. This comes from lower overproduction in Kazakhstan (151,000 bpd in April down to 80,000 bpd in June), Iraq (310,000 bpd in April down to 236,000 bpd in June), Russia (253,000 bpd in April down to 176,000 bpd in June) and Saudi Arabia (82,000 bpd in April down to 6,000 bpd in June). While the UAE underproduced in June by 55,000 bpd.

The rest of the OPEC+ countries – Sudan, South Sudan, Nigeria, Gabon, Equatorial Guinea, Congo-Brazzaville, Bahrain, Azerbaijan, Brunei and Malaysia – continue to overcomply with the official cuts. 

Senior vice president Oil Market Research, Jorge León, commented, “The recent improvement in compliance levels with the OPEC+ cuts shows strong commitment and cohesion inside the group. It also shows that the compensation mechanism put into place is working. I expect to see strong compliance continuing in the coming months.”

TripleFast is committed to strengthening the regional supply chain, digital adoption and delivering high-quality solutions. (Image source: Adobe Stock)

Part of the Lonestar Group, the world’s largest manufacturer and provider of critical bolting, TripleFast is firmly committed to supporting the growth aspirations of the GCC countries

TripleFast plays a pivotal role in enhancing the local economy through its dedication to strengthening the regional supply chain, digital adoption and delivering high-quality solutions.

Steve Kettle, vice president APAC, said, “Our focus is on unlocking maximum value from the energy sector's resources, ensuring that we deliver tangible benefits to the economies we serve. By establishing domestic supply chains and nearshoring industry best practices, we aim to create opportunities for today's and future generations. This approach not only aligns with the future growth aspirations of the GCC but also helps mitigate the risks associated with diversification initiatives, reducing uncertainty and volatility.”

TripleFast's ethical and transparent business philosophy has been the cornerstone of the organisation’s operations in the Middle East for over 22 years.

Kettle said, “We strive to be a critical component and contributor to the GCC's transition and diversification ambitions. Our commitment to delivering high-quality solutions ensures that we meet the needs of our customers both in the region and globally.”

Integrating digital technologies 

By integrating digital technologies, TripleFast ensures that it remains at the forefront of the industry. The organisation’s efforts to realise local content value through local production not only support the local economy but also contribute to the broader goals of the GCC countries.

Kettle concluded, “TripleFast's dedication to local production and delivering high-quality solutions underlines our commitment to supporting the economic growth and diversification aspirations of the GCC. We look forward to continuing our legacy as a key player in the region's development, ensuring a prosperous future for all.”

The rigs will be deployed on artificial islands at the offshore Zakum field. (Image source: Adobe Stock)

ADNOC Drilling has been awarded a contract worth around US$733mn by ADNOC Offshore, for three next-generation island drilling rigs to be used in the drilling and completion of wells on artificial islands at the offshore Zakum field

The rigs, which are due tol be delivered in 2026, will be constructed by Honghua Group (HH), and will incorporate industry-leading technology and automation, harnessing AI, digitisation, and advanced technology in their design and operation. They will leverage real-time condition, performance and utilisation data to create actionable insights, enhancing rig performance and leading to improvements in safety and well delivery times.

The rigs will be built to deliver extended reach drilling (ERD) as well as having the capability of walking between wells, so not needing to be dismantled to be moved, and thereby improving efficiency and safety while reducing costs and emissions.

Advanced rigs

Abdulrahman Abdulla Al Seiari, chief executive officer of ADNOC Drilling, said, “These new island rigs will be the most advanced in the world, embracing artificial intelligence, the most tranformative technology of our generation. Our partnership with HH will amplify the creativity and ingenuity of our industry as we design and build these rigs of the future that drive efficiency and safety and deliver exceptional value for our customer ADNOC Offshore.”

Tayba Abdul Rahim Al Hashemi, chief executive officer of ADNOC Offshore, said, “This award will strengthen our partnership in the future as we work together to harness AI and innovation to maximise energy, minimise emissions and unlock significant value for stakeholders.”

Since the fourth quarter of 2021, ADNOC Drilling has invested more than US$2.2bn in building one of the largest integrated drilling fleets in the world, which is now expected to total at least 148 by 2026, including the three new rigs.