Author: Rigs & Barge World

Organization of the Petroleum Exporting Countries (OPEC)’s crude oil production increased by 1.17 million barrels per day (mmbbl/d) in July, supported by higher output from Gulf producers as they restored supplies disrupted by the Iran conflict and the effective closure of the Strait of Hormuz, according to a Reuters survey.

Production from OPEC’s 11 members reached 19.85 mmbbl/d in July, marking a significant month-on-month increase and extending the recovery from May, when output fell to its lowest level since at least 2000.

Despite the recovery, July’s production remained below the levels recorded during the COVID-19 pandemic in 2020, when a sharp decline in global oil demand prompted widespread production cuts.

The figures exclude the UAE, which withdrew from OPEC effective May 1.

Iraq recorded the largest production increase among OPEC members during July, followed by Kuwait. Iran also increased its oil exports, although shipments slowed after the United States resumed its blockade of Iranian ports in mid-July.

Saudi Arabia’s production edged lower during the month, while Libya increased its output as its oil shipments remained unaffected by the US-Israeli conflict with Iran.

The increase came as seven members of the wider OPEC+ alliance, which includes non-OPEC producers such as Russia, had agreed to raise production in July. However, the escalation of the Middle East conflict prevented the group from fully implementing the planned increase.

The latest figures point to a gradual recovery in OPEC supply following the disruptions caused by the conflict and the restrictions on oil flows through the Strait of Hormuz, one of the world’s key energy trade routes.

Qatar’s economy has been built on the back of its LNG sector, but as the Middle East conflict enters its sixth month, many of its facilities have been idled. The effective closure of the Strait of Hormuz to most shipping has trapped around 20% of the world’s LNG capacity on the wrong side of the chokepoint, with Qatar shutting down most of its 77mn t/y Ras Laffan facilities.

Some Qatari cargoes continue to be shipped, primarily within the Gulf to Kuwait as QatarEnergy has been less aggressive in shipping clandestine cargoes through the strait than Adnoc has been from its 6mn t/y Das facility. (CONTINUED – 1896 WORDS)

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Egypt plans to increase exploration and production activities by around 20% during 2026, as part of new contractual models aimed at shortening well drilling timelines and accelerating exploration programs and their results, Karim Badawi said in a meeting to review the performance of Egypt’s upstream and refining activities and discuss the sector’s key targets and work plans for the next five years, according to a Ministry of Petroleum and Mineral Resources’ (MoPMR) statement.

The plans form part of the sector’s five-year strategy to expand upstream activities, accelerate the development of new discoveries, and increase domestic oil and gas production.

On the refining front, Badawi said increased crude oil supplies and refinery upgrades raised utilization rates to over 80% in 2026, boosting domestic petroleum product output, reducing the import bill and diesel imports, and supporting higher-value exports.

Recently, Badawi said that MoPMR plans to invest $4.5 billion in refinery development to boost domestic production and reduce reliance on imports.

The meeting reviewed the status of the Meliha gas processing station in the Western Desert, which is scheduled to come online next September with a production capacity of up to 100 million cubic feet per day (mmcf/d) of natural gas, supporting domestic gas production and reducing import needs.

The Meliha Gas Processing Station is a facility that processes natural gas produced from the Meliha area, preparing it for supply to the national gas network.

For its part, Egyptian Natural Gas Holding Company (EGAS) reviewed Egypt’s performance in global upstream investment indicators, noting that Egypt ranked fourth among Arab countries and 13th globally in the Upstream Risk Reward Index. This reflects improved competitiveness and investment attractiveness.

The Upstream Risk Reward Index is an industry benchmark that ranks countries based on the balance between risks and potential returns for oil and gas exploration and production investments.

Additionally, the South Valley Egyptian Petroleum Holding Company (Ganope) reported that its production has reached its highest level since its establishment, targeting investments of around $250 million over the next five years to increase production and maximize the exploration potential of its areas of operation.

In the fiscal year (FY) 2024/25, Ganope and its subsidiaries produced around 12 million barrels of crude oil.

Moreover, Egyptian General Petroleum Corporation (EGPC) presented digital initiatives to improve resource and asset efficiency, including an electronic platform to share surplus materials and unused equipment across sector companies, and a platform to monitor environmental performance and support compliance with standards.

Badawi emphasized the importance of continuing to improve Egypt’s investment climate and operational efficiency to attract further investments and accelerate exploration and production activities.

Egypt’s Ministry of Petroleum and Mineral Resources (MoPMR) has launched two international bid rounds offering 14 blocks for oil and natural gas exploration across the country’s upstream areas, according to a statement by Egypt Upstream Gateway (EUG).

The Egyptian General Petroleum Corporation (EGPC) is offering six blocks, with bids closing at 12 p.m. Cairo time on November 11, 2026. The Egyptian Natural Gas Holding Company (EGAS) is offering eight blocks under a separate round closing at 12 p.m. on December 14, 2026.

The rounds aim to attract international investment and expand exploration activity across Egypt’s geological basins, according to the ministry.

Notably, the latest offerings add to Egypt’s efforts to increase upstream activity and bring more exploration areas to market as the country seeks to develop its oil and gas resources.

In March 2026, EGAS Chairman and Executive Managing Director Sayed Selim said the company planned to launch a new bid round covering several areas in the Western Mediterranean.

Selim also said EGAS planned to drill 17 exploratory wells during the upcoming fiscal year and begin the first phase of a seismic survey project in the Eastern Mediterranean during H2 2026.

Saudi Aramco continues to adroitly navigate the unprecedented challenges caused by the Middle East conflict, generating profits of $33bn last quarter (see table). Despite total hydrocarbons output dropping by 26% year-on-year (see chart 1) as the effective shutdown of the Strait of Hormuz forced substantial production shut-ins, profits surged by 33% over the same period as Aramco’s operational optionality (MEES, 7 August) enabled it to capitalize on higher commodities prices.

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Dana Gas’ Egypt oil production rose to 13,300 barrels of oil equivalent per day (boe/d) in the first half (H1) of 2026 marking a 7% year-on-year (YoY) hike compared to its level a year earlier. Also, its latest drilling campaign in Egypt identified an estimated 10 billion cubic feet (Bcf) of gas resources, exceeding the original predictions of 3 Bcf and thus could support an additional 12 Bcf of gas resources across the license area once developed,  according to a statement by the UAE-based natural gas company.

Dana Gas plans to drill four additional wells in Egypt before the end of 2026. The company drilled three new wells and re-completed one well during H1 2026 as part of its ongoing investment and drilling program in Egypt. Two of the new wells were exploration wells, while a further well identified the estimated 10 Bcf of gas resources.

The operational improvement was accompanied by the company settling all overdue receivables from the Egyptian government, with payments now being made in full and on time.

Dana Gas has received a final $20 million payment from Egypt, bringing its outstanding receivables in the country to zero, the company said in a statement on May 3.

“In Egypt, production increased year-on-year for a second consecutive quarter, while all overdue receivables were settled and payments continued in full and on time. This gives us greater confidence to continue investing in the country,” Richard Hall, CEO of Dana Gas, said.

In February, Hall said, “We restarted investment under improved fiscal terms, drilled new wells, made discoveries, and began to stabilize production in assets that had been in natural decline. This was about putting Egypt back on a growth footing, and we are encouraged by the results to date.”

For the group as a whole, Dana Gas reported a 47% year‑on‑year rise in net profit to AED393 million ($107 million) in H1 2026. The result included a one‑off AED176 million ($48 million) gain from a gas metering reconciliation recognised in the first quarter. Excluding this item, net profit stood at AED217 million ($59 million

Revenue increased 51% YoY to AED 946 million ($258 million),  Excluding the one-off item, revenue increased by AED 143 million ($39 million) YoY, mainly due to higher hydrocarbon prices, higher production in Egypt, and increased  gas sales volumes at Pearl Petroleum in the Kurdistan Region of Iraq (KRI).

Dana Gas’ average gas production in 2025 stood at 53,500 boe/d, down from 56,500 boe/d in 2024. However, output rose sharply after year-end, reaching 70,000 boe/d in January 2026, the highest level since 2018, following the completion of the Iraqi KM250 gas expansion project at Khor Mor gas field in the Kurdistan Region of Iraq (KRI) alongside continued execution of the company’s investment program in Egypt.