webvic-c

twitter linkedinfacebookacp contact us

Industry

Amin H. Nasser, president and CEO, Aramco. (Image source: Aramco)

Aramco recorded a robust Q1 financial and operational performance, with net income of US$26bn, slightly down from US$27.3bn in Q1 2024, and capital expenditure of US$12.5bn

The decrease in net income was mainly due to the impact of lower revenue and other income related to sales as well as higher operating costs.

Capital expenditure for Q1 2025 was up from US$10.8bn for the Q1 2024, mainly due to the expansion of gas development.

Upstream developments

In the upstream sector, Aramco recorded total hydrocarbon production of 12.3 mmboed in the first quarter of 2025 and made 14 new oil and gas discoveries in the Eastern Province and Empty Quarter. The company progressed increment projects to maintain MSC at 12.0 mmbpd, including water injection operations to support the reservoir and crude oil production continued for the Dammam development project, and procurement and construction activities advanced for the Marjan and Berri and Zuluf crude oil increments. Aramco progressed its strategy to increase sales gas production capacity by more than 60%, including advancing procurement and construction activities for the Jafurah Gas Plant, part of the Jafurah unconventional gas field development, as well as for the Tanajib gas plant and Fadhili gas plant expansion.

Downstream, Aramco made progress in capital projects such as the construction of the refinery-integrated petrochemical steam cracker being developed by S-OIL, the Amiral expansion at the SATORP refinery, and other projects. Aramco also progressed the strategic expansion of its global retail network, with agreements to acquire 25% equity stake in Unioil Petroleum Philippines, one of the largest petroleum companies in the Philippines.

In the lower carbon sector, the company made headway in blue hydrogen development, completing the acquisition of 50% equity interest in Blue Hydrogen Industrial Gas company, a subsidiary of APQ, through which Aramco and APQ plan to develop a lower-carbon hydrogen network in the Kingdom’s Eastern Province, and launched a CO2 Direct Air Capture pilot plant, marking a significant step in the company’s efforts to expand its DAC capabilities and set to accelerate DAC deployment throughout the region.

Aramco president & CEO Amin H. Nasser said, “Global trade dynamics affected energy markets in the first quarter of 2025, with economic uncertainty impacting oil prices. In this context, Aramco’s robust financial performance once again demonstrated the company’s unique scale, its reliability and flexibility, the value of its low-cost operations, and its emphasis on efficiency and advanced technology.”

The countries of the region are keen to unlock the potential of their unconventional resources. (Image source: Adobe Stock)

Core Laboratories, a leading provider of proprietary and patented reservoir description and production enhancement services, has launched a state-of-the-art Unconventional Core Analysis Laboratory in Dammam, Kingdom of Saudi Arabia, developed in collaboration with its partner, Abdulla Fouad Group

The Abdulla Fouad Core Lab facility is set to become a central hub for unconventional core analysis in the region, providing valuable insights into unconventional reservoir properties, thereby assisting the operator in optimising the appraisal, development, and production of these unconventional fields. The laboratory is equipped with advanced proprietary instrumentation designed to provide comprehensive core and fluid analysis services tailored to unconventional reservoirs. This will assist senior scientists in performing enhanced petrophysical analysis and digital rock characterisation, using a number of advanced technologies and analytical techniques, including dual energy CT-scanning, high-frequency Nuclear Magnetic Resonance ('NMR'), and Core’s proprietary PRISM workflow. These services are designed to provide clients with detailed reservoir rock and fluid characterisation, facilitating informed decision-making throughout the appraisal, development, and production lifecycle.

“The introduction of these laboratory capabilities represents a significant milestone in our ongoing efforts to support the energy sector's evolving needs,” said Larry Bruno, CEO of Core Laboratories. “This collaboration with Abdulla Fouad reflects our shared vision of leveraging innovative solutions to address the complexities of unconventional resource development.”

Unlocking the potential

The countries of the region are keen to unlock the potential of their unconventional oil and gas resources. Saudi Arabia is home to the Jafurah gas field, the largest liquid-rich shale gas play in the Middle East, estimated to contain more than 200 trillion scf of gas and 75bn bbl of condensates. The field is currently being developed, with initial production expected to commence in 2025 and plans to ramp up to reach a sustainable sales gas rate of two billion scfd by 2030, in addition to significant volumes of ethane, Natural Gas Liquids (NGL) and condensate.

While Abu Dhabi holds an estimated 220 bbl of unconventional oil and 460 Tcf of unconventional gas in place. ADNOC is currently unlocking potential unconventional gas resources as part of its integrated gas strategy so that the UAE will become gas self-sufficient by 2030, with additional 1 billion cubic feet per day (bcfd) set to be unlocked from the Ruwais Diyab concession before 2030.

ADNOC Drilling recorded strong growth in revenue and profits in the first quarter of 2025. (Image source: ADNOC Drilling)

ADNOC Drilling recorded strong growth in revenue and profits in the first quarter of 2025, building on its growth trajectory

The company reported a 32% increase in year-on-year in revenue to US$1.17bn and a 24% rise year-on-year in profits to US$341mn. It follows record growth and financial results in 2024.

The first quarter results were on the back of particularly strong growth in revenues in oilfield services, where revenue increased 134% year-on-year to US$342mn, mainly driven by the unconventional business, along with increased integrated drilling services (IDS) activity. Onshore revenue increased 20% year-on-year to US$494mn. While offshore revenue increase 2% year-on=year to US$334mn, mainly due to higher activity island rigs. This is set to continue with the recent award of US$806mn long-term contract for three newbuild island rigs by ADNOC Offshore to support expanding operations at the offshore Zakum development project.

Abdulrahman Abdulla Al Seiari, ADNOC Drilling CEO, said: “The first quarter of 2025... has demonstrated our financial resilience and laid the foundation for another year of significant growth. We are progressing at pace on our strategic priorities, expanding our rig fleet, scaling our oilfield services offering and advancing our AI and digital capabilities.

“With a robust revenue pipeline, sustained demand, growing international interest and unparalleled visibility of future earnings, ADNOC Drilling is well positioned to deliver sustainable growth and value for our shareholders.”

ADNOC Drilling is now expanding its footprint beyond the UAE, through pre-qualification and ongoing tenders in Oman and Kuwait, and continues to focus on innovation through its joint ventures with Enersol, ADNOC Drilling’s advanced energy technology platform, and Turnwell, ADNOC Drilling’s joint venture with SLB and Patterson UTI. The latter has delivered a step-change in UAE unconventional energy development, achieving a significant reduction in well delivery times through the deployment of advanced AI and digital tools. Turnwell has helped ADNOC with the production and treatment of the nation’s first unconventional gas from the Ruwais Diyab Concession, located 200 km from Abu Dhabi.

Continuous monitoring helps operators determine the best conditions for rig movement and positioning. (Image source: Adobe Stock)

Sahil Kochhar, head of Presales, Miros outlines the benefits of smart, data-driven solutions for effective jack-up operations

For around 70 years, jack-up rigs have been at the forefront of offshore oil and gas exploration, acting as mainstays for drilling and production activities in most of the world’s hydrocarbon hotspots.

These mobile, self-elevating platforms provide stability in dynamic marine environments but, by their very nature, they are also often required to work in some of the most challenging environments known to the industry. They face significant challenges from waves and currents, which can drive structural integrity concerns and create potential safety issues.

The solution to this issue lies, as it so often does in offshore operations, in leveraging real-time environmental data. In the case of jack-ups, air gap measurements and wave/current monitoring are of particular criticality. By adopting cutting-edge solutions and technologies, operators can unlock new levels of performance, reduce risks, and optimise their offshore operations.

Understanding the air gap

The air gap refers to the vertical distance between the highest anticipated wave crest and the underside of a jack-up rig’s hull or deck.
Maintaining an adequate air gap is essential for structural integrity and operational safety. If compromised waves can slam into the structure, increasing stress on the platform and endangering personnel.

A well-calculated air gap, however, ensures stability, reducing downtime caused by rough sea conditions. It also avoids repeated wave impact, minimising the chances of fatigue, cracking, and deformation, extending the service life of the rig.

Real-time measurements

Real-time measurements capture key sea state parameters such as wave height, wave period, direction, current speed, and current direction. Up to the second data is gathered from various advanced sources - including wave buoys, radar systems, and subsea sensors – and used to inform decision-making, improve operations and enhance safety.

Actual conditions can often deviate from forecasts, but real-time readings of the sea-state removes the ambiguity, guaranteeing informed, timely decisions. Dynamic positioning and preload operations also benefit from wave and current insights, reducing risks of leg slip and seabed instability, while continuous monitoring highlights structural stress points early, allowing for pre-emptive action before maintenance issues escalate.

Enhanced jack-up operations through data-driven insights

The safety of people, the environment and assets are of the upmost importance during any offshore operation, be it with a jack-up rig or otherwise. With real-time wave data, operators can maintain safe clearance under the rig, preventing wave impact damage and guaranteeing structural integrity.

Continuous monitoring helps operators determine the best conditions for rig movement and positioning, improving efficiency, reducing costs and minimising the chances of an unexpected incident occurring.

Historical data also enhances future jack-up designs and operational procedures, fostering long-term resilience and reliability. Solutions like Miros’ RangeFinder and Wavex provide an integrated approach to monitoring critical environmental factors, serving as an example of how real-time measurements can contribute safer and more efficient jack-up operations.

How AI and predictive analytics are reshaping offshore operations

By combining RangeFinder’s precise air gap measurements with Wavex’s real-time wave data, operators get a holistic monitoring system for jack-up operations. With this powerful combination of live insights, operators gain a comprehensive view of their offshore environment, allowing them to make informed, data-driven decisions; reduce operational risks and enhance safety; and increase overall efficiency and reduce downtime.
As nearshore oil and gas reserves dry up and offshore exploration moves into deeper, more unpredictable waters, the role of real-time environmental data will become even more critical. Emerging technologies, like Miros’s PredictifAI – which pairs radar technology with Artificial Intelligence (AI) to predict waves and vessel motion – offer the potential to refine predictive analytics, allowing operators to anticipate and respond to changing sea states with unprecedented accuracy. By embracing these innovations, jack-up operators can drive greater safety, efficiency, and long-term profitability in their offshore ventures.
In an industry where precision and resilience are paramount, the future of jack-up operations depends on integrating smart, data-driven solutions that enhance situational awareness and enable proactive decision-making.

The rigs will generate actionable insights to facilitate improved operational efficiency, well delivery times and safety. (image source; Adobe Stock)

ADNOC Drilling has been awarded a contract from ADNOC Offshore for a further three AI-enabled island rigs destined for the offshore Zakum development project, supporting ADNOC’s target to expand oil production capacity to 5mn bpd per day by 2027

The contract award, worth US$806mn, follows three rigs ordered in July 2024, with more than 151 rigs aimed for by 2028.

The three new rigs will operate on ADNOC’s artificial islands, which are home to the world’s five longest wells, including a 53,000 ft record-breaking well. Set to join the fleet between 2027 and 2028, they will be developed through a collaboration between ADNOC Drilling and Honghua Group (HH) which will see AI, advanced digitalisation and real-time analytics embedded into rig design and operations.

Leveraging real-time condition monitoring, performance optimisation and predictive analytics, the island rigs will generate actionable insights to facilitate improved operational efficiency, well delivery times and safety. The rigs will be optimised for extended reach drilling (ERD) and equipped with state-of-the-art walking capabilities to enable them to move between well slots without the need for rig dismantling, thereby improving uptime, reducing emissions and lowering operating costs.

Abdulrahman Abdulla Al Seiari, ADNOC Drilling CEO, said, “ADNOC Drilling is proud to be awarded this significant, long-term contract, marking another major milestone in our accelerated growth journey. These next generation island rigs, built with embedded artificial intelligence (AI), represent a leap forward in technology, enhancing safety, efficiency and performance. This award strengthens our position as a critical enabler of ADNOC’s production capacity targets, while delivering sustainable, high-quality returns for our shareholders well into 2038 and beyond.”

Tayba Abdul Rahim Al Hashemi, chief executive officer of ADNOC Offshore, added, “We are focused on unlocking maximum value from the resources in Abu Dhabi’s waters in the most efficient and innovative ways possible. These advanced island rigs delivered by ADNOC Drilling will play a vital role in achieving our production capacity goals and meeting global energy demand. Together, we are pushing the boundaries of technology, operational excellence and partnership to power sustainable growth.”

More Articles …