Industry

Halliburton has been awarded lump sum turnkey (LSTK) contracts by Aramco in multiple onshore fields in the Kingdom of Saudi Arabia, as the energy giant seeks to maintain capacity targets and boost gas production by leveraging the latest technologies and methodologies

The multi-year contracts encompass approximately 285 planned wells, covering oil re-entry operations, drilling, completions, and workovers, which Halliburton will deliver through an integrated delivery model. The integrated approach supports maximum asset value through operational consistency and timely well delivery and helps advance Aramco’s objectives to maintain efficiency in its onshore portfolio. Safety, technical expertise, and real-time decision-making are central to every well drilled for Aramco.

Halliburton’s collaborative approach to integrated well services helps maximise asset value and reduce total operational costs. Its integrated services leverage advanced technologies and collaborative engineering to improve production and operational efficiency, a priority for Aramco. It develops comprehensive asset models that encompass the reservoir, wellbore, and surface facilities to identify and eliminate bottlenecks, improve daily field operations, and reduce costs per barrel.

Aramco’s upstream expansion

The awards come as Aramco is pursing major projects to maintain maximum sustainable capacity (MSC) at 12.0 mmbpd such as the Zuluf crude oil increment, which is expected to process 600 mbpd of crude oil from the Zuluf field through a central facility in 2026, while procurement and construction activities have progress for phase two of the Dammam development project, which is expected to be onstream in 2027, adding crude oil production capacity of 50 mbpd. Major projects to boost gas production are also underway in line with Aramco’s target to grow gas production capacity by around 80% over 2021 production levels by 2030. The development of the Jafurah field, the largest liquids-rich shale gas play in the Middle East is underway, with production expected to reach a sustainable sales gas rate of 2.0 bscfd by 2030, in addition to significant volumes of ethane, NGL, and condensate.

“These awards mark a significant milestone for Halliburton in the Kingdom and strengthen the company’s position for future growth under the program. The scope reflects the strength of our drilling technology and our proven ability to efficiently execute complex, highly integrated operations. The program supports close collaboration with Aramco and applies Halliburton’s integrated services and technologies to deliver strong performance and lower drilling and completion costs across onshore development,” said Rami Yassine, president, Eastern Hemisphere, Halliburton

The contracts include a three-year base term, with options to extend for up to two additional years. Halliburton will execute the program with a focus on safety, quality, and disciplined execution, in alignment with Aramco’s operational standards.

Saudi Arabia is a bright spot in Halliburton’s Middle East portfolio, where the company also recently won a multi-year contract to deliver integrated stimulation and completion services for unconventional gas development. The company highlights the two contracts in its Q2 results, where they helped to offset a decrease in Middle East/Asia revenue as a result of the ongoing geopolitical conflict in the Middle East.

Alistair Geddes, Expro COO and Kjetil Lunde, Enhanced Drilling CEO. (Image source: Expro)

Energy services provider Expro has completed the acquisition of Enhanced Drilling, a technology leader in managed pressure drilling (MPD), bringing a differentiated capability into its portfolio and marking a significant step in expanding its offering across the well lifecycle

With the acquisition now complete, Expro is positioned to integrate Enhanced Drilling’s advanced MPD and riserless mud recovery (RMR) services into its portfolio, helping customers improve drilling efficiency and simplify well architectures in complex formations.

What is managed pressure drilling?

Managed pressure drilling (MPD) is an advanced oil and gas technique that uses a closed-loop system and a surface choke to precisely control the pressure inside a wellbore, leading to improved drilling efficiency and enhanced safety. It helps drill safely through narrow or tricky underground pressure zones. Enhanced Drilling’s EC-Drill Dual MPD combines Controlled Mud Level (CML) and Surface Back Pressure (SBP) to deliver next-generation pressure control for offshore drilling.

What is riserless mud recovery (RMR)?

 RMR enhances drilling efficiency and environmental safety by recycling mud with zero discharge, ensuring cleaner operations and stable wellbores. By employing a seabed pump and a suction module at the wellhead, it efficiently recovers and recycles mud, cuttings, and debris, preventing any discharge into the ocean. It ensures stable, quicker, and safer drilling operations, significantly reducing environmental impact and optimising well integrity.

The addition of the MPD and RMR capabilities creates a new, complementary offering within Expro’s portfolio, enabling earlier engagement in well construction design and planning. This positions Expro to work more closely with customers to address critical technical challenges, reduce operational risk, improve execution certainty, and lower total well costs.

Headquartered in Norway, Enhanced Drilling brings a strong track record of delivering proprietary MPD and RMR solutions across offshore environments. Its technologies are designed to help operators manage narrow drilling windows, improve wellbore control and reduce non-productive time, and can simplify well designs by reducing casing requirements, improving overall well construction efficiency. Leveraging Expro’s global operating footprint and customer relationships, the combined business is expected to accelerate the broader international adoption of these technologies in key offshore basins.

Michael Jardon, Expro chief executive officer, said, “We are pleased to welcome the Enhanced Drilling team to Expro. This is a strong strategic fit that adds a differentiated capability to our portfolio and strengthens our position in technically demanding offshore markets. Their MPD technologies align with our focus on helping customers improve efficiency, manage risk, and deliver wells with greater certainty. Together, we are well positioned to expand access to these solutions across additional regions, including West Africa, Latin America and Asia Pacific.”

Kjetil Lunde, chief executive officer at Enhanced Drilling added, “Joining Expro marks an important milestone for Enhanced Drilling. As part of a global organisation with deep operational expertise and long-standing customer relationships, we are well positioned to scale our technologies and broaden their application across international markets.”

Around US$200bn worth of deals were signed between the Iraq’s Ministry of Oil and American companies during the visit of Iraqi Prime Minister Ali AlZaidi to the USA, as Iraq seeks to grow oil production and address the shortfall of domestic gas production required to power the grid

Speaking during an interview on Al-Iraqiya News, the Minister confirmed that the agreements concluded during the Prime Minister’s visit will significantly boost crude reserves, increase production and provide employment and technical training opportunities across the country.

Pursuing alternative export routes

They include agreements for the revival of a pipeline running from Kirkuk in northern Iraq through Syria to the port of Baniyas, thereby enabling Iraqi oil to be exported without transiting the Strait of Hormuz.
Chevron is reported to be forming a consortium with US-based TI Capital and a group owned by the Syrian-Qatari Al-Khayyat brothers to establish the pipeline network, following the signing of a co-operation agreement between Iraq and Syria to reconstruct the defunct Iraq-Syria crude oil pipeline.

Oil-dependent Iraq is actively pursuing alternative export routes, having seen production drop by more than half with the closure of the Strait of Hormuz, throwing it into severe economic difficulties. Around 90% of its output passed through the Strait before the conflict. The Basra–Haditha–Kirkuk–Ceyhan route is also being considered, which would connect southern Iraq to Turkey’s Mediterranean port of Ceyhan. Earlier this month, the cabinet authorised Basra Oil Company to sign a consultancy services contract with US engineering firm KBR for the proposed Basra–Haditha oil pipeline project, supporting the technical development of the planned export route. Iraq is also looking to export crude oil and naphtha by trucks, through ports in Syria.

Iraq, OPEC’s second largest producer, has a sustainable capacity of 4.9mn bpd and is reported to have ambitions to raise production to 7mn bpd. With the oil and gas sector still accounting for 53% of GDP, 88% of revenues and 91% of exports according to the World Bank, Iraq is reported to be lobbying for an increase in its OPEC quota, currently standing at 4.3mn bpd. Major development and rehabilitation of oilfields is underway with the participation of international oil companies.

Progressing development of Kirkuk oilfields

Also signed during the Iraqi Prime Minister’s visit was an agreement between ConocoPhillips and bp for ConocoPhillips to acquire a 42% interest in BP Energy Company of Kirkuk Limited (BP ECKL), supporting the ongoing redevelopment of four large-scale, currently producing oil fields in the Kirkuk area of northern Iraq. BP ECKL holds the Development and Production Contract (DPC) which covers an initial phase of oil and gas production of more than three billion barrels of oil equivalent from the prolific Baba and Avanah domes of the Kirkuk oil field and the adjacent Bai Hassan, Jambur and Khabbaz fields in Federal Iraq, all currently operated by the Northern Oil Company (NOC). The contract area also includes additional exploration potential.

Ryan Lance, chairman and chief executive officer said, “Consistent with our focus on capital discipline, we see an opportunity to create value through a capital-efficient redevelopment program that leverages a large existing production base, while also offering meaningful exploration upside. We look forward to working with bp and the Government of Iraq to support the continued redevelopment of these historically significant fields in an important energy-producing region.”

bp agreed terms with Iraq for the development of the Kirkuk oilfields in early 2025. Chief executive officer Meg O’Neill said, “Kirkuk is a world-class resource base that can support Iraq’s long-term energy ambitions while creating value for both the country and bp.”

During the Iraqi Prime Minister's visit, Chevron also signed agreements to further develop the West Qurna 2 and Nasiriyah oilfields in Iraq.

While Halliburton has been awarded a contract by Basra Oil Company (BOC) to provide Integrated Field Management Services (IFMS) and Engineering, Procurement, and Construction Management (EPCM) for the development of the Bin Umar and Sindbad oil and gas fields in southern Iraq.The contract scope includes field development planning, production optimisation, digital solutions, and EPCM services for the two fields.

The Bin Umar and Sindbad development program is designed to increase oil production and expand the capture and use of associated gas for domestic supply. BOC estimates oil production could reach approximately 150,000 barrels per day and 300 million standard cubic feet of associated gas from Bin Umar field during the first five-year development phase. The project supports Iraq’s efforts to strengthen energy security and reduce reliance on gas imports, with current domestic gas production insufficient to power the grid.

The project will unlock more than 600 million standard cubic feet per day (scfd) of natural gas and associated gas liquids. (Image source: Adobe Stock)

ADNOC is accelerating its integrated global gas growth strategy with a US$6.2bn (AED22.6bn) final investment decision (FID) to develop the Umm Shaif Gas Cap in  the Umm Shaif and Nasr offshore concession, Abu Dhabi, alongside its international partners TotalEnergies, Eni and China National Petroleum Corporation (CNPC)

The UAE holds the seventh-largest gas reserves in the world. As global demand for reliable, lower-carbon energy continues to grow, ADNOC is unlocking more of the nation’s gas resources and expanding its LNG portfolio to meet the needs of its domestic and international customers and power industrial and AI infrastructure growth. 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. ADNOC will therefore be well placed to capitalise on the growing global LNG demand, expected to increase to nearly 700 million tonnes a year by 2050, up around 65% from 2025 levels, according to Shell’s 2026 LNG Outlook.

The FID for Umm Shaif Gas Cap is the latest development in the company’s gas growth strategy and will unlock more than 600 million standard cubic feet per day (scfd) of natural gas and associated gas liquids, equivalent to almost 10% of the UAE’s current daily gas consumption by 2030. (A gas cap is the natural accumulation of gas that sits above the oil column in a reservoir). 

The investment will reinforce the UAE’s energy security and its role as a reliable global energy supplier, ADNOC says. It will integrate artificial intelligence, advanced technologies and robotics solutions to enhance efficiency, reduce emissions, and accelerate value creation, leveraging synergies with existing offshore facilities and clean power from the UAE grid.

The FID for Umm Shaif Gas Cap follows the Supreme Council for Financial and Economic Affairs’ (SCFEA) award of the concession agreement for the Bab Gas Cap, which has the potential to unlock an additional 1.5 billion (scfd) of natural gas and associated gas liquids. It also builds on ADNOC’s launch of a global LNG marketing and trading platform in Abu Dhabi Global Market (ADGM), which is targeting 47 million tonnes per annum of combined marketable LNG capacity by 2035.

The FID includes three engineering, procurement and construction (EPC) packages totalling US$5.1 bn (AED18.8bn) for large-scale offshore infrastructure awarded by ADNOC to consortiums including major UAE and international contractors. The development also includes a US$365mn (AED1.3 bn) 14-well drilling and integrated drilling services programme to be delivered by ADNOC Drilling over 18 months using three existing rigs.

His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC managing director and Group CEO, said, “ADNOC is accelerating its integrated gas strategy to further harness the UAE's vast gas resources and expand our global LNG platform, as global demand for natural gas continues to rise. The Umm Shaif Gas Cap FID is another important milestone in delivering this strategy and reinforcing ADNOC's position as a reliable gas supplier. Together with our international partners, we are building on decades of responsible stewardship of Abu Dhabi’s longest-operating offshore field to unlock lasting value for the UAE and our customers."

"We are delighted to reach this important milestone together with ADNOC and our partners. Following the recent award of the Bab Gas Cap concession, this FID marks another important step in developing Abu Dhabi's significant gas resources. This development will contribute to TotalEnergies' Upstream production beyond 2030 with low-cost and low-emissions resources,” said Patrick Pouyanné, chairman and chief executive officer of TotalEnergies.