Share of energy sources in Saudi Arabia's power mix. (Image source: Rystad Energy)

Gas is set to increasingly displace oil used for power generation and industrial facilities in Saudi Arabia thanks to the giant Jafurah unconventional gas project, according to Rystad Energy analysis

By tapping into unconventional gas, Saudi Arabia could displace up to 350,000 bpd of crude burn by 2030, according to Rystad. The increased gas supply would not only curb domestic crude use but also free up more oil and refined products for export, strengthening the country’s position in global energy markets. This shift comes at a critical time, as oil product demand in Saudi Arabia is projected to rise by approximately 100,000 bpd between now and 2030, largely driven by increasing consumption of gasoline and diesel.

The Jafurah unconventional gas field, the largest liquid-rich shale gas play in the Middle East, contains an estimated 200 trillion standard cubic feet (scf) of natural gas. The Jafurah project, set to start production this year, is a key component of Saudi Arabia’s Vision 2030, which seeks to boost gas production by 60% from 2021 levels while diversifying the nation’s energy mix. The project will see more than US$100bn in investment in the next decade, positioning Saudi Arabia as the world’s third-largest shale gas producer.

“Saudi Arabia is stepping up investment in natural gas as a cleaner, lower-carbon alternative to oil and coal. This strategic pivot, alongside the OPEC+ decision to cap Aramco’s oil production at 12 million barrels per day by 2027, is designed to support price stability while increasing domestic gas consumption. Output is projected to climb to 13 billion cubic feet per day (Bcfd) by 2030, setting the stage for a major expansion in gas supply. This will allow the nation to redirect more crude for export, reinforcing its influence in the global energy landscape. As the initiative advances, the success of this shift will depend on robust midstream infrastructure, downstream integration and deeper-zone drilling campaigns,” said Pankaj Srivastava, senior vice president, Commodities Markets – Oil.

On the domestic front, the economics of fuel switching continue to favour gas over crude for power generation, resulting in operational costs that are six to eight times lower per kilowatt-hour. These cost advantages underpin Saudi Arabia’s strategy to replace crude with gas in its power mix, enabling the Kingdom to redirect more crude toward export markets and strengthen fiscal returns, says Rystad.

The report provides expert insights to help oil and gas professionals navigate digital transformation with confidence. (Image source: DataPARC)

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The GGIP includes the recovery of gas currently flared in the Basra region to supply power generation plants. (Image source: Adobe Stock)

Global engineering company Wood has been awarded two new three-year engineering and procurement framework agreements worth US$11mn by TotalEnergies EP Ratawi Hub as part of the Gas Growth Integrated Project (GGIP)

Under the contracts, Wood will support TotalEnergies to advance the Associated Gas Upstream Project (AGUP), a key part of the GGIP project. The aim is to debottleneck and upgrade existing facilities to increase energy production capacity to 120,000 barrels of oil per day on completion of the first phase.

Wood is already providing engineering design, detailed design, procurement support, and construction and commissioning assistance for the first phase of the AGUP.

The contracts will be delivered by Wood’s teams in Basra and the United Arab Emirates. Wood currently employs over 4,000 people across the Middle East, having increased its headcount by 500 in 2024. The Middle East is a strategically important market for Wood and investing in Iraq and its people is core to this. The company has made significant investments in training, competency and skills development in the market.

Shaun Dewar, senior vice president of Operations, Middle East and Africa at Wood said: “We have an extensive track record in brownfield facility modifications and are committed to delivering safe, quality and innovative outcomes for TotalEnergies. Wood has supported the Ratawi field since 2023. “

He added that the company had hired 70 Iraqis to work at the Ratawi operations hub across a range of disciplines including HSE, logistics, quality, construction, welding, electrical and document control.

Enhancing the development of Iraq's natural resources

The US$10bn GGIP is a multi-energy project designed to enhance the development of Iraq’s natural resources and improve the country’s electricity supply at the Ratawi field in Iraq. The consortium implementing the project is composed of TotalEnergies (45%), QatarEnergy (25%) and Iraq’s Basrah Oil Company (30%). The project includes the recovery of gas currently flared in the Basra region to supply power generation plants, along with the construction of a seawater treatment unit and a 1GW solar power plant. Once implemented, this project will increase electricity supply to the Iraqi people, advance Iraq’s energy self-sufficiency, reduce harmful climate effects from flared gas in southern Iraq, and allow for the export of gas products to new markets. The GGIP includes a large-scale gas processing plant, with a first phase of 300 Mcf/d that will recover gas being flared on three oil fields and supply gas to 1.5 GW of power generation capacity. In January, the consortium launched the construction works of ArtawiGas25, a first processing facility for the associated gas from the Ratawi field. This facility will process 50 Mcf/d of gas previously flared, which will supply local power plants.

The collaboration resulted in improved drilling performance and reduced well construction time. (Image source: Adobe Stock)

Halliburton and Nabors Industries have through their combined solutions achieved the first fully automated surface and subsurface execution of rotary and slide drilling operations in Oman, resulting in improved drilling performance and reduced well construction time

The integration of Halliburton’s LOGIX automation and remote operations solutions, and Nabors SmartROS rig operating system delivered land-based, closed-loop drilling solutions to improve operational efficiency, consistency, and real-time decision-making capabilities. It enabled seamless orchestration of drilling parameters, real-time data analytics, integrated experience management, and remote control of operations.

“The wells were delivered ahead of plan with a higher average rate of penetration and lower non-productive time. This milestone demonstrates our leadership in drilling automation,” said Steve Haden, senior vice president, Project Management, Halliburton.

“The success we are seeing in Oman is a testament to the power of collaboration as we work together to drive automation across the industry to improve safety and efficiency. This is just the beginning, and we are excited to continue to push the boundaries of innovation to achieve autonomous drilling,” said Subodh Saxena, senior vice president, Canrig and Nabors Drilling Solutions.

Halliburton’s LOGIX automation and remote operations drive reliability and efficiency in well construction, increasing the consistency and performance of well construction operations by integrating subsurface and surface automation, digital twins, and remote operations. It provides an array of advanced digital applications to enable critical engineering, operations insights, and automated operations. Halliburton LOGIX automation and remote operations, combined with Nabors’ SmartROS rig operating system, form a unified platform that enables consistent, repeatable drilling performance.

In June 2023,Halliburton and Nabors Industries announced an agreement to collaborate on leading well construction automation solutions, initially deployed in Iraq.These include the Halliburton Well Construction 4.0 digital surface and subsurface drilling technologies, the LOGIX Autonomous Drilling Platform, the Nabors SmartROS universal rig controls and automation platform and RigCLOUD high-performance digital infrastructure platform. Initially deployed in Iraq, the companies’ technologies automate well construction services from planning to execution across both subsurface and surface equipment and environments.

Earlier this month, Nabors Drilling Technologies and Corva AI are expanding their strategic alliance into the RigCLOUD high-performance edge computing platform, to accelerate digital transformation in the drilling industry. “RigCLOUD Powered by Corva” is a fully integrated drilling intelligence solution that will combine Nabors’ edge and cloud computing platform with Corva’s industry-leading AI-driven analytics.

Nabors Industries has also teamed up with SLB to scale adoption of automated drilling solutions industrywide. The collaboration, announced in January 2024, provides customers with access to a broader suite of drilling automation technologies and greater flexibility to utilise their existing rig control systems and equipment on either SLB’s PRECISE or Nabors’ SmartROS rig operating system.