Industry

Lula Mohanty, managing partner for Middle East & Africa at IBM Consulting. (Image source: IBM Consulting)

Organisations that connect operational and enterprise data, embed intelligence into workflows, build workforce trust, and establish clear governance will be best positioned to convert digital ambition into lasting operational value, says Lula Mohanty, managing partner for Middle East & Africa at IBM Consulting

Digital modernisation remains a priority for oil and gas companies across the Middle East, with significant investments in connectivity, automation and AI. Yet many organisations still struggle to translate these investments into faster decisions, more resilient operations and consistent performance improvements at scale. For energy leaders, the priority is no longer simply deploying digital technologies, but ensuring those investments deliver measurable operational value.

New research from the IBM Institute for Business Value, based on surveys of more than 750 C-suite and senior executives across the chemicals and oil and gas industries, highlights the gap between digital ambition and operational impact. While three in five organisations globally are scaling or embedding digital initiatives, only 8% say digital transformation is fully integrated and driving competitive advantage.

The stakes are significant: oil and gas organisations with more advanced digital deployment report 23% less production deferment, 16% less non-productive time and 13% lower operational costs. For companies that haven’t closed the gap, realising those potential gains remains challenging

This gap reflects a broader challenge. Generating intelligence is no longer the hard part: many organisations already have dashboards, analytics, digital twins and AI-enabled insights. The harder task is making sure those insights consistently shape operational decisions and actions. Value is created when intelligence becomes part of workflows, maintenance activities, production planning and frontline decision-making, supported by connected systems, workforce capabilities and clear governance.

Turning digital capabilities into operational outcomes

Those gains are increasingly within reach. The IBM research shows that globally 84% of oil and gas respondents report deploying digital production optimisation across many sites or enterprise-wide, highlighting the growing focus on translating digital capabilities into repeatable operational performance.

These findings reinforce why digital transformation should be measured by operational outcomes rather than the number of technologies deployed. Predictive analytics, digital twins and AI can help organisations anticipate disruptions, optimise production and improve asset reliability. However, their value depends on whether these insights influence decisions and actions across the business.

For oil and gas companies operating across complex and geographically distributed assets, this requires stronger connections between operational technology (OT) and information technology (IT). When operational and enterprise data remain fragmented, decisions take longer and opportunities to improve performance can be missed. Integrating these environments creates the foundation for better visibility, more coordinated responses and the responsible adoption of automation and AI.

Workforce readiness is essential to scaling transformation

Technology integration alone is not enough. Organisations must also equip employees with the capabilities and confidence to apply digital intelligence in their daily work.

This remains a challenge across the Middle East. IBM’s research finds that only 25% of UAE and Saudi respondents describe their workforce as mostly ready or fully capable of supporting digital transformation, compared with 35% globally.

For energy leaders, addressing this gap requires more than technical training. It means investing in change management, developing cross-functional capabilities and ensuring that engineers, operators and technology teams can work together to translate insights into action.

Embedding intelligence into maintenance planning, production optimization and operational workflows can help employees make more informed decisions. The objective should be to make digital capabilities part of how work gets done, rather than additional tools that operate alongside existing processes.

Governance is critical to sustainable performance

As organisations embed AI and automation more deeply into their operations, governance becomes essential. Clear accountability, defined decision rights and appropriate human oversight are what allow digital capabilities to scale responsibly.

Trust is central to this shift. Many organisations have established confidence in their operational data; the harder part can be developing trust in the recommendations, predictions and actions generated from it. That confidence grows when recommendations consistently deliver better outcomes and when accountability and oversight remain clearly defined. Without trust, intelligence may inform decisions, but it rarely changes them.

Middle East organisations are taking a measured approach to autonomy: only 20% report that agentic AI currently executes defined actions autonomously under human oversight, compared with 36% globally. Rather than treating autonomy as an end goal, energy companies should identify where automation improves efficiency and where human expertise remains necessary.

Governance should also extend beyond technology. Aligning operations, engineering, IT and cybersecurity teams around shared performance objectives keeps digital initiatives tied to operational priorities and helps deliver improvements that can be replicated across sites and assets.

From digital ambition to operational impact

For Middle East energy companies, the next phase of digital transformation should focus on turning existing investments into measurable and sustained performance improvements.

This starts with prioritising operational challenges where technology can deliver tangible results, such as reducing downtime, improving production efficiency and strengthening asset reliability. It also requires connecting operational and enterprise data, equipping employees to act on digital insights and establishing clear governance and accountability.

Ultimately, success will be defined by how effectively energy companies turn intelligence into execution. Organisations that connect operational and enterprise data, embed intelligence into workflows, build workforce trust, and establish clear governance will be best positioned to convert digital ambition into lasting operational value.

Tanker shipping is fundamental to global energy trade. (Image source: Noatum Maritime))

Capt. Ammar Al Shaiba – CEO, Noatum Maritime and Maritime & Shipping Cluster, AD Ports Group discusses Noatum Maritime’s role in global energy transportation

Tanker shipping is fundamental to global energy trade. Every day, crude oil and petroleum products move between producing regions, refineries and consumer markets, often across thousands of nautical miles. With production and refining centres spread across the world, maritime transportation remains essential to meeting global energy demand.

Geopolitical developments, changes in oil trade flows and disruptions along major shipping routes continue to influence freight rates and vessel availability. For oil producers, refiners and traders, these conditions make access to suitable tonnage, experienced operators and flexible chartering arrangements particularly important.

As part of AD Ports Group's Maritime & Shipping Cluster, Noatum Maritime provides tanker transportation services to major oil companies, refiners, and commodity traders, operating across global energy markets.

Noatum Maritime's tanker fleet serves both crude oil and petroleum product markets, with Very Large Crude Carriers (VLCCs), Suezmax, and Aframax tankers primarily serving crude oil and dirty petroleum product trades, alongside Long Range 1 (LR1) and Long Range 2 (LR2) tankers serving clean petroleum product markets. With a combined capacity of approximately 1.6 million deadweight tonnes (DWT), the fleet accommodates different shipment sizes, cargo grades and trading requirements.

Over the past 12 months, Noatum Maritime has expanded its tanker fleet by adding two VLCCs, two LR1 tankers, and two LR2 tankers, further strengthening its capacity to serve crude oil and petroleum product markets worldwide. In 2025, Noatum Maritime's tanker fleet completed over 180 voyages, transporting approximately 5.5 million tonnes of crude oil, fuel oils and clean petroleum products.

Noatum Maritime offers voyage and time charter arrangements for individual shipments and longer-term transportation requirements. From vessel selection and cargo compatibility to port limitations and voyage planning, its commercial and operational teams ensure each shipment matches suitable tonnage and meets customer requirements.

In the Caspian Sea, Noatum Maritime provides crude oil transportation between Kazakhstan and Azerbaijan, supporting regional energy trade and access to international export markets. Its operations include specialised ice-class tankers suited to the region's seasonal and navigational conditions.

Across the Middle East, its tanker services include ship-to-ship (STS) cargo transfers, short-distance shuttle transportation and offshore floating storage. Shuttle tankers transport crude oil from loading facilities to VLCCs operating as Floating Storage Units (FSUs), where cargo is stored before being transferred to export tankers for onward shipment.

Tanker shipping is also one part of Noatum Maritime's wider business. Its portfolio spans shipping, offshore and subsea services, marine operations, drydocking and shipbuilding, and maritime agency services, giving the company a broad presence across the maritime sector and the industries it serves.

As global energy trade evolves, access to suitable vessels, established maritime expertise and flexible commercial arrangements will remain essential to keeping crude oil and petroleum products moving safely and efficiently between markets.

From Energy Hubs to Global Shores, We Take You Further.

First gas was achieved within less than a year from discovery. (Image source: SNOC)

In a development that is set to strengthen Sharjah’s energy security and help the UAE achieve its goal of gas self-sufficiency by 2030, Sharjah National Oil Corporation (SNOC) has successfully completed Phase 1 development of the Hedebah gas-condensate field

Discovered in May 2024, the Hedebah Field represents Shrajah’s fifth onshore gas and condensate field and is located northeast of the Sajaa gas field. Thanks to an accelerated appraisal and development programme, first gas from the field was achieved within less than a year of discovery. SNOC has now completed all key Phase 1 objectives, including appraisal drilling, well evaluation, gathering infrastructure, pipeline installation and commissioning activities.

Appraisal results have confirmed strong reservoir quality, favourable pressure characteristics and encouraging production performance across the field, increasing confidence in Hedebah’s long-term commercial potential and its future contribution to Sharjah’s energy needs. The field has already more than doubled the company’s current gas production, ensuring a steady supply of gas and condensate.

SNOC has already commenced preparations for the next stage of development, with activities being accelerated to ramp up production during 2027. The field is expected to reach plateau production by 2028 and make a substantial contribution to meeting future energy demand across the Emirate.

The project was delivered despite significant logistical and procurement challenges, including regional shipping disruptions and material supply constraints, demonstrating SNOC’s ability to execute complex developments on an accelerated timeline.

Khamis Al Mazrouei, CEO of SNOC, said, “Hedebah is one of the most significant gas developments in Sharjah in recent years and a cornerstone of SNOC’s long-term growth strategy. Completing Phase 1 and bringing the field into production demonstrates our ability to move quickly from discovery to delivery while supporting the Emirate’s growing energy requirements. As we move into the next phase of development, Hedebah will play an increasingly important role in strengthening energy security and creating long-term value for Sharjah.”

SNOC remains committed to advancing Sharjah’s energy independence through the exploration and development of its hydrocarbon resources, complemented by its strategic gas storage and processing infrastructure.

Contributing to UAE gas growth

The SNOC development is good news for the UAE's strategic gas growth plans. The UAE possesses 297 trillion cubic feet (Tcf) of conventional natural gas reserves, ranking as the seventh-largest gas reserve holder globally. Major projects are underway to exploit these to secure domestic self-sufficiency, help meet rising global gas demand, provide critical feedstock for the nation’s growing industrial and petrochemical sectors and establish the UAE as a global gas and LNG player. 

They include:

Umm Shaif Gas Cap Megaproject: ADNOC’s US$6.2bn project in partnership with TotalEnergies, Eni and CNPC will unlock more than 600 million standard cubic feet per day (scfd) of natural gas and associated gas liquids by 2030, equivalent to almost 10% of the UAE’s current daily gas consumption

ADNOC Gas Rich Gas Development (RGD) project: With a total investment value of US$13.2bn across three phases, the RGD project is expanding the company’s gas processing capacity. Phase 1 expands key processing units to increase throughput and improve operational efficiency across multiple gas assets; Phase 2 will add a new natural gas processing train at the Habshan facility, while Phase 3 will add a new natural gas liquids (NGL) fractionation train at Ruwais.

Ruwais LNG project: This is scheduled to start operations in 2028, adding 9.6 mtpa of LNG production capacity, more than doubling ADNOC’s LNG production output to around 15 mtpa. Supported by ADNOC and XRG’s integrated global LNG ma

Around half of oil and gas producers identify Asia Pacific and the Middle East among their most important customer regions over the next five years. (Image source: Adobe Stock)

The Middle East is identified as the region offering the greatest opportunity over the next decade despite the current instability, according to the inaugural ADIPEC Global Energy Report 2026: Power Shift report, based on surveys of more than 1,800 senior business and energy leaders

Energy’s centre of gravity shifts east

72% of respondents expect the Middle East to become more important in global energy, with around half of oil and gas producers identifying Asia Pacific and the Middle East among their most important customer regions over the next five years, highlighting the growing commercial importance of the Gulf-Asia corridor.

Confidence in the global energy industry's future remains strong despite ongoing uncertainty, with 85% of energy insiders saying the sector is more attractive to invest in than five years ago. Nearly two-thirds of senior industry leaders, 64%, say the global energy system proved more resilient than expected through recent disruption, pointing to the energy sector’s ability to adjust quickly to shocks while 77% remain optimistic about the decade ahead.

AI reshapes demand and influence

Artificial intelligence is expected not only to create a new source of pressure and opportunity, but also to reshape who holds influence in the energy system. More than four in five energy insiders expect AI-driven electricity demand to exceed current forecasts, including 32% who expect it to be much higher.

At the same time, 71% see AI as more of an opportunity than a risk, while 43% expect technology and AI companies to gain the most influence over global energy during the coming decade, ahead of governments and regulators, financial institutions and traditional energy companies.

From resilience to execution

The combination of growing demand, strong investment appetite and technological change shifts the challenge for the industry from resilience towards execution.

The research clearly shows broad agreement that future demand will require a diversified response: 93% say meeting future energy demand will require growth across multiple energy sources rather than reliance on one dominant source, the strongest consensus identified in the research.

Infrastructure is emerging as a critical constraint. Delays in building and connecting grids are identified as one of the biggest barriers to meeting future demand after geopolitics, and the research identifies greater grid investment as a priority. At the same time, 74% expect the Middle East to play a more significant role in building energy infrastructure over the coming decade.

The findings will help frame discussions at ADIPEC 2026, where leaders will examine how to mobilise capital, accelerate infrastructure development and strengthen the partnerships needed to meet rising global demand.

Christopher Hudson, president of dmg events, the organisers of ADIPEC, said, “What stands out from this research is that confidence has held up despite a period of disruption. Energy demand continues to grow, the Middle East and Asia are increasingly central to that growth, and AI is reshaping what the industry needs to deliver.

“But confidence alone alone won't meet that demand. We need investment to move into projects, infrastructure to be built and new partnerships to take shape. The report gives us a clear picture of the priorities. ADIPEC is where the industry comes together to make decisions and move them forward.”