Technology

The upstream sector is at the forefront of IIOT adoption. (Image source: Adobe Stock)

The adoption of Industrial Internet of Things (IIOT) is accelerating throughout the value chain in the oil and gas sector, says intelligence platform GlobalData

GlobalData’s Strategic Intelligence report, “Industrial Internet in Oil & Gas,” reveals that artificial intelligence (AI) and digital twins will revolutionise the Industrial Internet in oil and gas, powering smarter connected assets across exploration, drilling, and production. This technology shift enables autonomous operations, predictive maintenance, enhanced efficiency, and the agility crucial for navigating volatile markets.

The upstream segment is at the forefront of Industrial Internet adoption, according to the report. Projects are increasingly capital intensive and geographically remote, facing new subsurface challenges and rising environmental, social, and governance (ESG) scrutiny. As a result, real-time monitoring and modelling can make a big difference to outcomes. Digital twins, AI-driven drilling optimization, and field-wide

IoT networks enable operators to simulate outcomes, remotely manage wells, predict equipment failures, and integrate new production more rapidly.

In the midstream segment, sensors on pipelines and tanks provide real-time data on pressure, flow, and integrity, enabling faster leak detection and improved responses to anomalies.

In the downsteam operations, real-time data collection and advanced process automation now underpin production optimisation, emissions control, and energy management. Digital twins are enabling continuous process modelling, rapid scenario testing, and proactive troubleshooting.

Ravindra Puranik, Oil and Gas Analyst at GlobalData, commented, “The oil and gas industry in 2026 faces unprecedented external pressures: high and volatile prices, supply uncertainty, climate change concerns, rising consumption of cleaner energy, and realigning global energy trade routes. Besides these, companies are facing significant operational challenges driven by factors such as US tariffs, the Iran conflict, sanctions, and protectionist policies. To secure future growth and resilience, operators are embracing the Industrial Internet across their businesses.

Puranik added, “Autonomous operations are rapidly becoming standard in digitally advanced oilfields, particularly in offshore environments such as fixed platforms and FPSOs, where remote and reliable management is both a logistical necessity and a cost imperative. Also, cloud-based analytics and AI systems connect the dots from raw input to final distribution, improving the accuracy of demand forecasting and inventory management even in volatile markets.”

According to Globaldata, the global Industrial Internet market is expanding rapidly, and is forecast to grow at a compound annual growth rate (CAGR) of 16% from 2024 to 2029, to reach US$552.7bn in revenue by 2029, of which the energy sector is expected to generate US$79bn.

The collaboration aims to address the disconnect between how factory operations are designed and how they run in reality. (Image source: IFS)

Siemens and IFS have entered into a partnership involving the creation of a closed-loop Digital Twin to help manufacturers connect design, production and asset performance in a continuous loop, from engineering intelligence to operational outcome, optimising their production assets across the entire product lifecycle with industrial AI

The collaboration combines Siemens' leadership in industrial AI, engineering, automation and manufacturing execution and IFS's strengths in industrial AI, enterprise asset management and field service domains. With manufacturers under pressure to make the most of their existing assets, the two companies aim to help them address the disconnect between how factory operations are designed and how they run in reality, where unplanned downtime, disconnected maintenance schedules, siloed production data and supply chain disruption continue to erode throughput, agility, and margin.

Industrial AI at the core

With Industrial AI at the heart of the collaboration, Siemens and IFS are looking to enhance industrial performance by bringing the physical and digital worlds together to help manufacturers translate design intent into operational reality and connect that operational reality back into better design to accelerate innovation.

Siemens’ comprehensive Digital Twin brings the engineering, simulation and manufacturing context while IFS brings the service history, asset behavior and operational lifecycle data that show how those products and assets perform in the real world. Together, they plan to create a closed loop Digital Twin grounded in both design intent and field performance that is secure, governed and auditable across design, simulation, service records, factory execution and can be trusted to deploy at industrial scale.

Industrial environments demand accuracy, reliability, regulatory compliance and adaptability to drive optimisation and agility, as even small error rates are unacceptable when decisions affect safety, compliance and costly physical assets. The partners’ shared approach to industrial AI is built for this reality.

"Industrial AI only delivers value when it is grounded in both engineering intent and real-world performance," said Tony Hemmelgarn, president and chief executive officer, Siemens Digital Industries Software. "Together with IFS, we are bringing these domains together by connecting design, manufacturing and asset lifecycle data in a secure, contextualised data fabric. By converging our combined strengths in industrial AI, together we will empower our customers with our vision of an executable Digital Twin that will enable them to accelerate innovation with confidence.”

"Manufacturers need their factory floor to behave the way it was designed. This partnership with Siemens brings together two companies that each own a critical piece of the puzzle. Agentic AI is the critical frontier, and industrial leaders need solutions with closed loop models and data, and a rich set of context that will not hallucinate in active operations,” said Mark Moffat, chief executive officer, IFS. “By combining our collective strengths in Industrial AI, we can help manufacturers close the loop between design and reality, and unlock real, measurable performance gains."

SLB will establish a facility in Ahmadi Innovation Valley. (Image source: SLB)

SLB has been awarded a seven-year contract by Kuwait Oil Company (KOC), which will see the company work with KOC to evaluate, test and deploy advanced technologies across its operations as well as establishing a new facility in Ahmadi Innovation Valley (AIV)

The agreement, under the AIV initiative, will support applied research, technology deployment and digital innovation programmes aligned with Kuwait's long-term energy objectives. Areas of focus include artificial intelligence (AI), industrial internet of things (IIoT) applications, production optimisation, reservoir technologies, water management and energy transition initiatives.

Ahmadi Innovation Valley is KOC's flagship innovation initiative that brings together industry, academia and technology providers to address strategic upstream technical challenges, with specialised facilities and technical teams focused on applied research, advanced technologies and operational excellence.

Under the agreement, SLB will establish a dedicated Ahmadi Innovation Valley facility in Kuwait, with construction expected to begin in 2026 and opening planned for 2028.

"Ahmadi Innovation Valley represents an important step in advancing technology leadership across Kuwait's energy sector," said Ahmad Jaber Al-Eidan, chief executive officer, Kuwait Oil Company. "Through collaboration with leading technology partners, we are accelerating technology deployment, strengthening local capabilities and expanding knowledge transfer to support Kuwait's energy industry."

"The energy industry has no shortage of technology. The challenge is deploying it at scale and turning innovation into operational impact," said Olivier Le Peuch, chief executive officer, SLB. "Ahmadi Innovation Valley brings together technology providers, researchers and operational teams to accelerate the evaluation, deployment and scaling of new solutions across KOC's operations. We are proud to contribute our technology, domain expertise and global experience while helping strengthen local capabilities and support the next generation of Kuwaiti talent."

SLB and KOC have a long history of collaboration going back more than 85 years. Most recently Kuwait Oil Company awarded SLB a US$1.5bn, five-year integrated contract in February this year for the Mutriba field, including design, development and production management. The work builds on SLB’s subsurface characterisation of the Mutriba field to support development planning and execution across deeper, technically demanding reservoir conditions. The contract covers development of high-pressure, high-temperature reservoirs with sour conditions.

Expanding the use of digital technologies

Kuwait Oil Company (KOC) is committed to expanding the use of digital and advanced technologies. In an interview with Oil Review Middle East, KOC’s CEO Ahmad Jaber Al- Eidan, said KOC has established an Innovation and Digitalization Team to co-ordinate enterprise- wide initiatives, including the integration of AI, advanced analytics, real-time monitoring, workflow automation and remote operations across the upstream value chain. For example, AI- powered drilling optimisation tools and predictive models for equipment reliability and well performance have been deployed to improve operational outcomes.

The Kuwait Integrated Digital Field (KwIDF) system has enabled real-time surveillance and faster data-driven decision making across operations. Smart field solutions are also being scaled across key assets.

A dedicated AI centre has been launched to optimise operational planning, assist in reservoir modelling, forecast ESP and equipment failures, enhance drilling performance and improve supply efficiency, while generative AI and advanced analytics are being embedded into workflows, supported by partnerships with leading technology providers.

“Looking ahead we are focused on piloting and scaling advanced digital solutions across all areas of our business, embedding those innovations within our operations and planning frameworks to ensure long-term scalability and aligned with our broader innovation and sustainability goals,” Al-Eidan said.

A new advanced robotic technology from IGS, a provider of asset integrity and energy efficiency solutions for energy, power and heavy industry, is revolutioning fired heater maintenance

The company has launched Rovex, a compact remotely operated vehicle (ROV) specifically developed for fired heater convection sectrions. It is designed to improve access to complex tube geometries and remove heavy fouling with precision, enabling operators to maintain output, reduce costs and extend asset life.

Heightened focus on energy security, coupled with continued investment in refining and petrochemical capacity across the Middle East, is driving greater attention towards efficiency and reliability across critical assets. Fouling is a persistent challenge across refineries, restricting heat transfer and reducing efficiency. In steam crackers, even a 1% efficiency loss can cost operators several million dollars annually. In large crackers, the impact can exceed US$10 million annually when yield, energy, and lost production are included.

Savings and benefits

At a time when the industry is under significant cost pressures, the technology can drive significant savings. Rovex’s fully remote operation eliminates the need for confined-space entry, reducing exposure to
• High-temperature environments
• Hazardous combustion residues
• Risks associated with confined-space entry
• Respiratory hazards from airborne particulate matter

High-definition cameras provide operators with continuous visual feedback throughout operation, ensuring operational precision and confidence. Proprietary articulation systems allow the ROV to navigate between tube banks and access all convection section surfaces, including those previously considered unreachable by conventional methods. Integrating robotic mobility, patented lance technology, and digital performance verification, the system supports measurable improvements in efficiency, reliability, and emissions reduction through effective cleaning of stubborn deposits on furnaces and fired heaters.

Compared to traditional water jetting or manual techniques, which typically access 20-30% of fouled surfaces and can risk asset damage, Rovex enables consistent cleaning coverage over 90% of the surface area.

Each Rovex deployment is supported by a thermal performance evaluation, enabling IGS engineers to quantify efficiency losses and target cleaning activity. This approach allows performance improvements to be measured and verified.

“Rovex reflects our continued focus on combining engineering and robotics to improve maintenance outcomes,” said Eric Duvekot, VP Engineering at IGS. “It provides a practical way for operators to address fouling safely, before it leads to lost revenue, while achieving consistent and measurable performance improvements.”

Success story

Recent field applications have demonstrated the system’s impact. At Oman Methanol Company, Rovex restored convection section performance, reducing stack temperature by 93.2°F / 34°C and improving fuel efficiency by 1.8%, enabling a return to full production capacity while reducing fuel consumption and associated emissions.