Industry

Kuwait Oil Company (KOC), the upstream subsidiary of Kuwait Petroleum Company (KPC), has signed a US$16bn lease-and-lease-back agreement with a consortium of international investors involving its entire domestic and export pipeline network, representing the largest foreign direct investment in Kuwait’s history

The transaction will involve the formation of a Kuwaiti-incorporated joint venture, which will lease from KOC the usage rights to all of its 13 pipelines, spanning around 320 km of Kuwait’s pipeline network. The JV will lease back to KOC the exclusive use, operational and maintenance rights in the pipeline assets for a period of 20 years and sixth months, in exchange for a volume-based tariff.

KOC and the consortium, comprising Blackstone, Brookfield and KKR, will establish the new joint venture, with KOC holding a 51% majority stake and the consortium holding the remaining 49%. KOC will continue to maintain full ownership and operational control of the pipeline network.

The JV is expected to generate upfront proceeds of US$7.85bn for KOC upon closing.

Why is the deal significant?

• It will support Kuwait Petroleum Company’s capital expenditure plans, including its target of 4mn bpd of crude oil production capacity by 2035; contracts recently reported include a contract worth KD35mn ($113mn) to Chinese group Anton Oilfield Services DMCC to deliver maintenance services for Jurassic Production Facilities (JPF) 1, 2 and 3 in North Kuwait, as KOC seeks to maintain and optimise its production facilities and strengthen operational performance.
• It supports Kuwait's broader efforts to diversify sources of capital and deepen engagement with global investors.
• As the largest foreign direct investment in Kuwait's history, it reflects the quality of KOC's asset base, the strength of KPC’s operational stewardship, and the enduring appeal of Kuwait as an investment destination.
• As one of the first major inward investments in the Gulf region since the onset of recent tensions, it reflects the confidence of global institutional investors in Kuwait and KPC despite the regional tensions. Blackstone is reported to be setting up an office in Kuwait through the Kuwait Direct Investment Promotion Authority (KDIPA) as part of a wider GCC expansion drive. Kuwait’s latest sovereign debt issuance raised US$6bn, with investor demand driving the combined orderbook to more than $14.75 billion across the three-tranche issuance.
• Beyond its immediate proceeds, the JV is intended to encourage further participation by global investors in the national economy, in line with KPC's development plan and Kuwait's long-term diversification agenda.

The transaction follows similar deals concluded by other Gulf NOCs including Aramco, which signed a lease and leaseback deal involving its Jafurah gas processing facilities with a consortium of international investors last year. Aramco closed the transaction to lease and lease back the development and usage rights to the Jafurah Field Gas Plant and the Riyas NGL Fractionation Plant to the Jafurah Midstream Gas Company (JMGC) for a period of 20 years, selling a 49% equity interest in JMGC to a consortium of international investors led by BlackRock’s Global Infrastructure Partners for US$11.1bn.

Prior to that, Aramco concluded a similar arrangement for its pipeline network in 2022, whereby a group of investors acquired a 49% stake in Aramco Gas Pipeline Company for US$15.5bn. Under this arrangement, Aramco Gas Pipelines Company receives a tariff payable by Aramco for the specified gas products that flow through the network, backed by minimum commitments on throughput. Aramco retains a 51% majority stake. As with the Kuwait deal these arrangements allow Aramco to maintain full operational control of its facilities while monetising its assets.

Shaikh Nawaf Saud Al-Sabah, Deputy Chairman and CEO of KPC, said, "Project Peregrine represents the largest foreign direct investment in Kuwait's history and a defining milestone for our country's economic development. It delivers on the commitment announced by His Highness the Prime Minister Shaikh Ahmad Abdullah Al-Ahmad Al-Sabah at the Kuwait Oil & Gas Show (KOGS) in February 2026 to attract world-class international investors into Kuwait's strategic infrastructure while preserving full national ownership and operational control.

"We are pleased to welcome Blackstone, Brookfield and KKR as long-term partners in this landmark transaction. Their investment reflects confidence in Kuwait's resilience, the quality of KPC's assets and our long-term vision for the country's energy sector.

"This transaction sends a powerful signal that Kuwait continues to rise as an attractive destination for global capital, even amid a challenging regional environment."

TWMA's drilling waste technology is in demand as drilling activity scales

TWMA, the global leader in drilling waste management, has secured a three-year contract extension with a major operator in Egypt, reflecting the increased levels of drilling activity in the market and the heightened focus on environment protection

The Egyptian government is encouraging investment and incentivising exploration and production to reverse years of decline and reduce energy imports. These efforts seem to be paying off, with exploration drilling campaigns resulting in a number of promising discoveries being made recently.

More effective drilling waste disposal sought

As drilling activity scales, operators are seeking more cost-effective and efficient ways to dispose of drilling waste, while fulfilling their environmental compliance obligations. TWMA’s RotoMill technology, in contract to traditional methods, allows drill cuttings, slops and sludges to be processed directly at the wellsite.

TWMA’s Egypt operation processes an average of 10,000 metric tonnes of drilling waste per year using its specialist RotoMill technology. In addition to its onshore processing capability, the business provides both onshore and offshore pit and tank cleaning, along with comprehensive general waste management services. These services ensure that a broad range of hazardous and non-hazardous waste is managed safely, efficiently, and in full compliance with industry standards. TWMA Egypt employs a fully nationalised workforce across facilities in Cairo and Alexandria and its onshore facility in Alexandria.

The contract follows an initial three-year term, as the company celebrates its 20th year of local operations and approaches 16 years’ lost time incident (LTI) free.

Abdelrahman Amin, general manager – TWMA Egypt, commented, "Securing this contract extension as we celebrate 20 years in Egypt is a significant milestone for TWMA and reflects our long-standing partnership with local operators. Over the past two decades, we have continually invested in developing local talent and expanding our in-country capabilities as operators see the environmental and efficiency benefits of our solutions. This extension reflects the trust our customers place in our people and our industry-leading solutions, reinforcing our long-term commitment to Egypt’s offshore energy sector.”

Halle Aslaksen, CEO of TWMA, added, “Egypt has been a key anchor of TWMA’s international success and remains central to our ambitions across the Middle East and North Africa. As offshore activity in the Eastern Mediterranean continues to grow, we are strengthening and expanding our regional presence across both onshore and offshore services. This significant contract extension provides a strong platform to further advance these efforts.”

The contract extension is part of TWMA’s wider Middle East & North Africa growth strategy, including the opening of a new onshore processing facility in the UAE and an ambition to grow its presence across the region, as the optimisation of drilling processes and sustainability concerns come to the fore for operators.

See also: https://oilreviewmiddleeast.com/industry/twma-expands-in-the-middle-east

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.”