The phase out of cuts shift from 12 months to 18 months. (Image source: Rystad Energy)

OPEC+ members have extended the voluntary adjustments of 1.65 million bpd announced in April 2023 until the end of December 2026

The organisation has extended the additional voluntary adjustments of 2.2 million bpd announced in November 2023 until the end of March 2025, delaying the phase out from September  2025 to September 2026.
New compensation schedules for overproducing countries will be submitted by the end of December 2024. 

“Oil markets have been anxiously awaiting this OPEC+ meeting since the US election results made clear a Trump 2.0 presidency was on the horizon. Trump’s tariff-forward stance toward China and persisting weak demand provided the group with all of the encouragement needed to extend production cuts until the first quarter of 2025. The overall signal to the market is constructive and will likely prevent any price downsides in the short term. The announcement makes crystal clear that the group is worried about both a potential supply glut and a lack of compliance with production targets among member countries,” said Mukesh Sahdev, global head of commodity markets, Rystad Energy.

The latest OPEC+ announcement hints that compliance among members is a concern, Rystad says. The organisation, however, has maintained that monthly changes can be paused or reversed at any time.

With the latest announcement, the production profile and oil balances clearly indicate an acknowledgment of the emerging supply glut without the extension in 2025.

The phase out of cuts shift from 12 months to 18 months is constructive for the crude balances for 2025, with a swing from average 0.7 million bpd surplus to average 0.3 million bpd deficit.

The confirmation that the UAE’s new baseline (300,000 bpd higher) will only start in April 2025 and will be gradually phased in over an 18-month period establishes the country's firm commitment towards OPEC+, Rystad says.

Rystad believes that the non-OPEC+ supply has not posed much of a concern for OPEC+.

The new business unit will leverage NMDC Group’s experiences and capabilities in the logistics and technical services sector. (Image source: NMDC Group)

NMDC Group (ADX: NMDC), the Abu Dhabi based EPC focusing on the dredging, marine and energy sectors, is broadening its offering with the establishment of a new business unit, NMDC LTS, which will focus on logistics and technical services

Building on NMDC Group’s experiences and capabilities in the logistics and technical services sector, NMDC LTS will own and/or operate NMDC Group’s significant resource pool of marine support craft, technical capabilities, plant and equipment to expand its services to the wider construction and industrial sectors.

Eng. Yasser Zaghloul, CEO of NMDC Group, said, “NMDC LTS will be a trusted platform that gives new partners access to one of the biggest construction logistics and technical services operators in the region and enable them to gain the benefits of efficiency, innovation, and service focused delivery that NMDC Group has built over the decades of success. We look forward to continuing to work with our current partners in this exciting next phase of NMDC Group’s growth, and to take our expertise and offering to new clients and markets.”

Peter Marvin, chief technical & resources officer of NMDC LTS added, “The delivery of EPC projects in the marine sector has unique challenges, requiring innovative solutions to enable the logistics and technical support necessary to build the infrastructure that our customers and partners need for their sustainable growth. Over decades NMDC Group has consistently proven its expertise, capability and capacity in this field delivering maritime and energy infrastructure around the world. NMDC LTS will take these strengths and expand its application to new customers, partners and industrial sectors through value-added collaboration and seeking to translate our extensive capabilities to meet their needs beyond the delivery of infrastructure. NMDC LTS is uniquely positioned to maximise the potential of this diversification into the logistics and technical services sectors.“
NMDC Group’s other business units are NMDC Dredging & Marine, NMDC Energy, NMDC Engineering and NMDC Construction.

The facilities will boost ADNOC Gas’ current processing capacity by 20%. (Image source: ADNOC Gas)

ADNOC Gas plc has awarded Worley Engineering the Front-End Engineering and Design (FEED) contract for new gas processing facilities at Bab Gas Cap (BGC)

The project’s processing facilities will be designed to optimise production of natural gas liquids (NGL), condensate, sales gas, and sulfur, boosting ADNOC Gas’ current processing capacity by 20% or over 1.8 billion standard cubic feet per day (scfd). Final Investment Decision (FID) is expected in 2026.

The design scope includes the development of gas processing and conditioning units, acid gas recovery units, dehydration units, sulfur recovery units, NGL recovery units, and CO2 capture facilities. It also includes the construction of injection facilities and associated utilities, along with the design and routing of new product pipelines for the efficient transfer of liquid sulfur to the Habshan Sulfur Granulation Plant.

The facilities will receive hydrocarbons from the Bab field, where ADNOC has enabled the simultaneous development of oil and gas, with a potential production of 1.5 BCFD of gas and 80mn bpd of condensate.

Dr Ahmed Alebri, CEO, ADNOC Gas, said, “Today is an important step forward for this project, which has the potential to substantially increase our gas processing capacity, unlock additional revenue and strengthen ADNOC Gas’ position as a global gas supplier. This ambitious project will deploy state-of-the-art gas processing technologies and make an important contribution to the UAE’s gas self-sufficiency efforts.”

See also https://oilreviewmiddleeast.com/exploration-production/adnoc-gas-awards-contracts-for-gas-pipeline-expansion

https://oilreviewmiddleeast.com/industry/adnoc-gas-sees-21-year-on-year-rise-in-profits

Muhammad Tayyab, Fulkrum’s regional manager for the Middle East and Caspian. (Image source: Fulkrum)

Fulkrum, a leader in inspection, expediting, auditing, and technical staffing services, has launched a new entity in Basra, Iraq

It follows the award of a multi-million dollar contract to the company for the provision of surveillance services for a major gas hub development project in the region.

The new local entity will enable Fulkrum to improve service delivery for new and existing clients, including several leading operators in the region. This strategic expansion marks a key step in advancing Fulkrum’s operational capabilities across Iraq’s growing energy sector.

The gas hub development project in Iraq for which Fulkrum was awarded the major contract will play a key role in the country’s energy infrastructure. The first gas processing train is designed with provisions for future growth, ensuring scalability in plant layout, Integrated Control and Safety Systems (ICSS), and power infrastructure. Fulkrum’s scope of work includes monitoring quality control, quality assurance, expediting, project & procurement management and other activities.

Fulkrum’s regional manager for the Middle East and Caspian, Muhammad Tayyab said, “Being locally based allows us to streamline operations and deliver customised services that meet the evolving needs of our clients. This positions us to better support our existing partners and pursue further opportunities with key operators in Iraq.”

He added that the gas hub project is a significant win for Fulkrum and marks the beginning of an exciting new chapter for its team in Iraq.

“We are proud to contribute to a project that will enhance the region’s energy capabilities and are committed to delivering our high standards of service throughout its execution.”