Industry

Oil prices have risen again following the recent escalation. (Image source: Adobe Stock)

The oil price has risen further with the escalation of hostilities between the US and Iran, with Brent crude standing at around US$86/bbl on Tuesday 14 July

Recent days have seen renewed US attacks on Iranian infrastructure, and Iranian attacks on US bases in the region as well as ships and oil tankers, along with President Trump’s announcement of a 20% fee on cargo transiting the Strait and a renewed blockade of Iranian ports.

Brent crude had fallen to around US$70/bbl earlier this month following the announcement of the ceasefire, and the IEA had predicted in its July monthly oil market report that the market could return to surplus by the end of the year. This prediction looks to have been upended by recent events, with the risk to disruption to shipping once again raising the prospect of supply shortages.

“The escalation disrupts global energy supplies, with a near halt in ship navigation in the Strait of Hormuz, and heightens the risk of further escalation, including targeting oil production and refining infrastructure in the region, which could make the damage structural rather than temporary,” noted Samer Hasn, senior market analyst at XS.com. “…we saw widespread targeting of the Iranian mainland and islands and targeting of American bases at several points in the region, in addition to targeting ships and oil tankers, and these events are still recurring until the time of writing. To make matters worse, we saw an unexpected and sudden return of escalation between Saudi Arabia and the Houthis in Yemen.

“With this stormy series of events, we must calmly rearrange our hypotheses. I believe we are now in a round of negotiating under fire, following the failure at the table after the signing of the recent memorandum of understanding. The major obstacle lay in reaching an understanding regarding the implementation of the fifth article of the signed memorandum of understanding, which concerns the management of the Strait of Hormuz.”

“The latest developments have shifted market focus from oversupply concerns to the risk of prolonged disruptions to Gulf energy exports, with the duration of US enforcement measures and the security of Hormuz now likely to determine whether oil prices remain elevated,” commented MUFG Research.

Crispus Nyaga, research analyst at Empire FX, said, “Looking ahead, prices could extend their climb, potentially nearing previous highs, should shipping through the Strait of Hormuz come under severe restrictions and regional security deteriorate further. However, efforts by Gulf oil exporters to circumvent the waterway could help ease the upside pressure to some extent. A return to diplomatic talks and a formal end to military operations could support a recovery in maritime traffic, allowing energy exports to normalise and prices to ease gradually, although this scenario could remain unlikely over the short term.”

Tolls in the Strait now look impossible to avoid, commented deVere Group’s CEO Nigel Green. “Investors keep treating Hormuz disruption as a spike that fades once the fighting stops. This time, for me, looks different,” he said.

“Once a toll exists in practice, taking it away again becomes its own political fight. I would price this as a permanent cost of moving global energy, not a headline that blows over.”

Also read: https://oilreviewmiddleeast.com/industry/oil-prices-spike-again-on-renewed-us-iran-hostilities

The agreement will allow ZL Chemicals to commercialise Chevron’s advanced surfactant technology. (Image source: Adobe Stock)

Chevron’s chemical surfactant technology is set to be deployed more widely thanks to a technology licensing agreement between Chevron Technical Center, a division of Chevron U.S.A. and ZL Chemicals Ltd, a global leader in enhanced oil recovery chemistry

The agreement will allow ZL Chemicals to commercialise Chevron’s advanced surfactant technology which improves resource recovery in unconventional reservoirs, providing an opportunity for broader commercial deployment of this technology. ZL will commercialise and market products and services under the Vantis brand utilising the licensed technology. The Vantis product offering is expected to support applications in shale and tight reservoirs, including base well enhanced oil recovery programmes and new well-optimisation efforts.”

”Technology creates more value when it can be applied broadly,” said Ryder Booth, chief technology and engineering officer of Chevron Corporation. “Advanced chemicals are one of Chevron’s areas of differentiation and have supported innovation in our own operations. Through this licensing agreement, we’re creating a pathway for ZL to bring this technology to a broader market, and at scale.”

“We are pleased to work with Chevron to expand access to this technology across a broader customer base,”said Echo Liu, president of ZL Chemicals. “At ZL Chemicals, we are focused on delivering enhanced oil recovery chemistry and field services designed to support operators’ production and reservoir management objectives. Vantis represents the type of technology our customers are seeking, and we are positioned to deliver it as a scalable, turnkey service - from lab evaluation and QA/QC through application design, on-site deployment, and field execution. We look forward to supporting operators in their efforts to enhance recovery and extend the productive life of their assets across shale and tight reservoirs.”

The agreement combines Chevron’s technology development expertise with ZL’s commercial capabilities and customer relationships. Chevron will continue developing next-gen advanced surfactant technology for its business, while ZL will commercialise products and services using the technology licensed under this agreement.

The Middle East would seem to be a good potential market for Chevron’s surfactant technology given the focus on gas and the development of unconventional resources in the region, an example being Saudi Arabia’s Jafurah unconventional gas project. The largest liquid-rich shale gas play in the Middle East, Jafurah contains an estimated 200 trillion standard cubic feet (scf) of natural gas.

Aquaterra Energy, a leading provider of intelligently-engineered products and services for well access and offshore developments, has formally aligned with James Fisher and Sons plc (James Fisher). James Fisher, a renowned global provider of specialist marine and energy solutions driving offshore energy forward, joins Aquaterra Energy to form a new strategic global partnership.

The offshore energy sector is currently facing a monumental transitional phase as thousands of legacy structures reach the end of their operational lifecycle.

In response to this escalating industry challenge, Aquaterra Energy, a leading provider of intelligently-engineered products and services for well access and offshore developments, has formally aligned with James Fisher and Sons plc (James Fisher). James Fisher, a renowned global provider of specialist marine and energy solutions driving offshore energy forward, joins Aquaterra Energy to form a new strategic global partnership. This vital collaboration is explicitly designed to streamline offshore decommissioning delivery, presenting a cohesive solution to an increasingly complex operational landscape.

An Integrated Delivery Model

By joining forces, the two organisations aim to provide energy operators with a single, highly integrated route to meticulously plan and execute well abandonment and infrastructure removal programmes. Under this newly established partnership model, the division of expertise is clearly delineated to maximise operational efficiency. Aquaterra Energy is taking the lead on all front-end engineering and well access solutions. Concurrently, James Fisher, operating through its dedicated energy division, is responsible for delivering comprehensive subsea operations alongside offshore execution expertise.

Together, these two industry leaders offer a significantly more coordinated alternative to highly fragmented traditional decommissioning models. Their approach actively connects early-stage planning, detailed engineering, and well access with final offshore execution under a much clearer, unified delivery framework. For operators, this directly translates to fewer handovers between disparate contractors, substantially stronger accountability throughout the project lifecycle, and far greater certainty from initial scope development through to final execution. Importantly, this unified approach still retains the vital flexibility required to adapt seamlessly as specific project requirements inevitably evolve.

Addressing a Massive Global Requirement

The strategic collaboration is set to operate on a truly global scale. The initial operational focus will be heavily directed towards the North Sea, the Asia-Pacific (APAC) region, and the Middle East. These specific regions represent critical markets where a highly significant number of offshore wells and existing infrastructure are currently approaching the stage of permanent abandonment.

The sheer scale of the upcoming decommissioning workload is immense. In the UK Continental Shelf alone, recent reports from the North Sea Transition Authority highlight that there are currently 153 wells sitting past their decommissioning consent deadlines. Furthermore, an estimated £44 billion is still projected to be spent on regional decommissioning efforts. The situation is similarly pressing in Australia, where detailed government modelling estimates that offshore decommissioning liabilities could reach a staggering £48 billion over the course of the next thirty to fifty years. Looking at the global picture, it is anticipated that more than 2,500 offshore structures will ultimately require complete decommissioning by the year 2040. This rapidly growing international workload is the primary catalyst driving the urgent industry demand for much more efficient delivery models.

Leadership Perspectives

Matt Marcantonio, Head of Engineering at Aquaterra Energy, said: “Decommissioning programmes are increasingly moving away from simple, isolated scopes. The next generation of projects will require tight engineering control, early integration and the ability to adapt quickly as conditions change. By aligning our expertise with James Fisher from the outset, we can shape more efficient scopes, prevent downstream redesign and ultimately reduce offshore duration. We see this as a way to give operators the confidence to take on decommissioning programmes that are becoming more technically demanding and commercially pressured, while keeping the agility needed to respond as projects evolve.”

Mark Stephen, Product Line Director - Decommissioning & CFE at James Fisher Energy, commented: “What operators are looking for now is delivery confidence, predictable execution, fewer interfaces and teams who already understand how to work together. By combining our subsea operations capability with Aquaterra Energy’s early engineering and well access expertise, we can remove many of the common friction points that slow projects down offshore. This model gives operators a scalable, field-proven approach that directly supports safer, more efficient execution as global decommissioning activity accelerates.”

Operational Execution and Safety

Moving forward, the partnership will operate strictly on a project-by-project basis. The precise team composition for each undertaking will be meticulously determined by the specific scope of work required. This tailored approach will include the strategic utilisation of cross-trained crews. Doing so will significantly reduce the number of people offshore (POB), which subsequently lowers the overall exposure to operational risk. While operating within this agreed collaborative framework to ensure aligned delivery, each company firmly remains an independent entity. Both partners are already actively engaging with operators regarding upcoming decommissioning opportunities across multiple international regions.

ADNOC aims to play a leading global role in LNG development.(Image source: Adobe Stock)

ADNOC has advanced its global LNG expansion ambitions with the launch of a global LNG marketing and trading platform in Abu Dhabi Global Market (ADGM)

It brings the marketing activities of ADNOC Gas and XRG with the trading capabilities of ADNOC Trading into an integrated commercial platform.

Designed to enhance flexibility and shipping optionality, the move supports ADNOC Gas’ expanding LNG portfolio, including Ruwais LNG, and XRG’s international gas and infrastructure growth, while strengthening customer access globally.

Targeting 47 million tonnes per annum (mtpa) of combined marketable LNG by 2035, the platform will scale up ADNOC and XRG’s capacity to optimise a growing and diverse LNG portfolio and reinforce Abu Dhabi’s position as a global energy trading centre.

The platform is supported by ADNOC’s shipping capabilities. ADNOC Trading’s LNG shipping desk ranked among the top global LNG charterers in both physical and freight derivatives in 2025. ADNOC L&S has expanded its owned LNG fleet to 20 vessels, including 14 modern dual-fuel carriers, supporting growing UAE LNG production and global trade.

His Excellency Dr. Sultan Al Jaber, ADNOC managing director and Group CEO, and XRG Executive chairman, said, “With LNG demand set to grow substantially, the world will need reliable, responsible and trusted suppliers at scale. This world-class, integrated commercial LNG platform brings together the full strength of ADNOC’s marketing, trading and shipping capabilities to create a single global hub in Abu Dhabi. It marks a step-change in scale, flexibility and optionality of our LNG marketing and trading platform and will further position ADNOC to meet the world’s growing demand for energy.”

The initiative comes as ADNOC’s Ruwais LNG project, under development in AI Ruwais Industrial city, is scheduled to start commercial operations in 2028. Comprising two 4.8 mtpa liquefaction trains with a combined capacity of 9.6 mtpa, it will more than double ADNOC Gas’ existing operated LNG production capacity to around 15 mtpa. To date, 90% of the Ruwais LNG project’s 9.6 mtpa production capacity has been committed to international buyers across Asia and Europe through long-term arrangements.

Another such arrangement followed not long after the launch of the new marketing and trading platform, with the signing of a 15-year Sales and Purchase Agreement (SPA) with INPEX CORPORATION (INPEX), Japan’s largest E&P company, for the supply of 1 million tonnes per annum (mtpa) of LNG from the Ruwais LNG project.

The agreement was announced during a visit to Japan, one of ADNOC’s most important markets, by His Excellency Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Managing Director and Group CEO of ADNOC, and Executive Chairman of XRG

Nasser Al Muhairi, acting CEO of ADNOC Downstream Industry, Marketing & Trading, and chairman of Ruwais LNG, said, “This SPA with INPEX marks the first long-term LNG agreement announced following the launch of ADNOC and XRG’s integrated global LNG marketing and trading platform, demonstrating how we are bringing more LNG molecules, greater market access and enhanced commercial flexibility to our customers. It builds on ADNOC’s decades-long energy partnership with Japan, advances the commercialization of Ruwais LNG and reinforces strong market confidence in the project. As ADNOC and XRG target 47 mtpa of combined marketable LNG by 2035, Ruwais LNG will be a key source of reliable, flexible and lower-carbon supply for customers in Asia and around the world.”

Also signed during Dr. Sultan Al Jaber's visit to Japan, was a strategic collaboration agreement with Mitsui, which envisages collaboration across multiple strategic areas, including crude oil market development and long-term supply, LNG sales and optimisation, sulfur procurement and logistics, and shipping solutions for LNG, ammonia, sulfur and other commodities.