Author: Rigs & Barge World

Oman’s upstream sector has been unaffected by the conflict that has forced other producers in the Gulf region to shut in as much as 13mn b/d of crude oil production. Because Oman is situated outside of the Strait of Hormuz, crude oil exports have not been affected while production rose to a two-year high of 1.053mn b/d in the first month of the conflict. Production capacity is well below that of other regional producers such as Saudi Arabia, Iraq and the UAE, while more challenging geology means higher production costs. However, the conflict has underscored Oman’s geopolitical stability, which could…

Egypt’s oil output started the year showing early indications of a revival. Oil production averaged 523,600 b/d in Q1, the highest quarterly average since 4Q 2024, representing a 3% increase over the previous quarter. That the 527,000 b/d average for March was a fourth consecutive monthly increase is a positive indicator that the recent gains are sustainable. The coming months will provide the real test. Last quarter’s growth was driven by the Gulf of Suez region, where there has been a pickup in activity by the UAE’s Dragon Oil and local firm Cheiron (MEES, 17 April). Gulf of Suez output,…

Is BP’s storied presence in Egypt coming to a close? The market is on alert after a Reuters report on 15 May, confirmed by MEES, revealed that the UK major has sounded out a number of companies about a potential fire sale. Despite speculation that BP is planning to exit entirely, MEES learns that the assets of Arcius Energy (BP’s 51:49 JV with UAE state firm XRG) are not yet up for sale, at least for now. If BP is considering a complete exit after more than 60 years in the country, it is possible that the Arcius stakes could…

UK independent Capricorn announced on 19 May that Egyptian Minister of Petroleum Karim Badawi had signed the consolidated and amended concession agreement covering eight Western Desert concessions in which Capricorn holds a 50% non-operated stake alongside Egyptian operator Cheiron. Signature by the minister, state firm EGPC, Cheiron and Capricorn marks the final step in a lengthy process of approval, which started more than one year ago and was ratified by parliament in March (MEES, 3 April). The agreement is effective from 1 July 2025, with Capricorn’s revised work program obligations now formally underway. (CONTINUED – 285 WORDS) Read this article…

Apache posted stronger than expected gas production figures from Egypt last quarter, underlining the extent to which gas is now central to its Western Desert strategy. Gross Egypt gas production rose 13% year-on-year to 518mn cfd, its highest level since 1Q 2023, and the company reaffirmed its guidance of 540-550mn cfd for 2026 as a whole. “In Egypt, continued success in the gas program, including on our newly acquired acreage, is underpinning the delivery of our ambitious 2026 targets,” Mr Christmann told investors during the company’s 7 May earnings call. “Longer term, we remain excited about the extensive prospectivity of…

A key 46km stretch of pipeline offshore Israel, due to begin operations by 26 June, will enable increased gas exports to Egypt. NewMed Energy announced the planned startup date for the Ashdod-Ashkelon pipeline during its Q1 earnings call on 19 May. The short stretch of pipeline will allow gas to avoid bottlenecks in Israel’s southern gas pipeline network and increase the capacity of the offshore EMG pipeline from around 650mn cfd to 850mn cfd. This should in turn help Israel increase gas exports to Egypt to around 1.2bn cfd, and potentially to 1.3bn cfd. Gas is primarily exported to Egypt…

The CEO of Adnoc, Sultan al-Jaber, warned this week that Middle East oil production won’t fully recover until next year: “Even if this conflict ends tomorrow, it will take at least four months to get back to 80% of pre-conflict flows, and full flows will not return before the first or even second quarter of 2027.” Mr Jaber’s assessment is the most pessimistic yet on the outlook for regional production. Last week, Aramco CEO Amin Nasser said that if the Strait of Hormuz remained shut for a few more weeks, the normalization might take until 2027 (MEES, 15 May). (CONTINUED…

Crude oil exports from the UAE are running at around 60% of pre-conflict levels despite the closure of the Strait of Hormuz, thanks to the 1.8mn b/d Adcop pipeline that links onshore oil fields with the Indian Ocean export terminal at Fujairah. The pipeline, completed in 2012, is symbolic of the UAE’s investment in bolstering its resilience. Along with the rerouting of commodities such as petrochemicals and fertilizer exports – as well as imports – through the port of Khor Fakkan, the Adcop pipeline has been instrumental in keeping the UAE’s economy afloat through the conflict. “Resilience may seem expensive…

The Mineral Resources and Mining Industries Authority (MRMIA) has signed a contract with Spain’s Xcalibur, to launch Egypt’s first nationwide airborne geophysical survey in more than 40 years. This followed the Cabinet approval in March of the authority’s request to contract a specialized company to conduct the survey. For implementing the survey, Xcalibur will deploy its latest aircraft and advanced technologies, while cooperating with the Nuclear Materials Authority and Drone Tech, an Egyptian drone Service provider, to maximize the use of national assets and capabilities, according to MRMIA Chairman Yasser Ramadan. In November 2025, the MRMIA signed a Memorandum of Understanding…

Türkiye’s state-owned energy company BOTAS has signed a memorandum of understanding (MoU) with Italy’s Edison to explore potential cooperation in natural gas and liquefied natural gas (LNG), according to Reuters citing a company statement. Under the agreement, both parties will assess opportunities for natural gas and LNG supply, in addition to evaluating joint commercial prospects. The MoU also includes plans to establish a joint working group to examine the technical, commercial, and regulatory aspects of a potential hydrogen-compatible natural gas interconnector between Turkey and Italy. BOTAS noted that the envisioned strategic partnership with Edison is expected to contribute to strengthening…