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Iraq has agreed contract terms with bp for the redevelopment of oil fields at Kirkuk, with work expected to begin in 2025

The deal will see bp invest in various Kirkuk fields, providing oil, gas, power and water rehabilitation work, with the potential for investment in exploration too.

The agreement — subject to final government ratification — is for an initial phase and includes production of more than three billion barrels of oil equivalent (boe). It includes the Baba and Avanah domes of the Kirkuk oil field and three adjacent fields – Bai Hassan, Jambur and Khabbaz – which are currently operated by the North Oil Company (NOC).

In a statement, bp said that the “wider resource opportunity” across the contract and surrounding area is up to 20 billion boe. The value of the work is expected to be worth in the region of US$25bn over the contract period, according to news agency Reuters.

“This agreement builds on our longstanding and strategic relationship with the Iraq government and delivers access to a material new resource opportunity, within one of the world’s most prolific hydrocarbon provinces,” said bp executive vice president William Lin.

The news comes after bp announced that it would ramp up oil and gas production, and scale back renewables investments, as part of a revised growth strategy focusing more on hydrocarbons.

Under the terms of the agreement, bp’s remuneration will be linked to incremental production volumes, price and costs.It will also be able to book a share of production and reserves proportionate to the fees it earns for helping to increase production.

New operator

The intention is to to set up a new operator, initially an unincorporated organisation comprising predominantly of personnel from NOC and North Gas Company (NGC), with secondees from bp. This will take over operations at Kirkuk from NOC, although bp said it later expects to form a standalone incorporated joint venture to hold its interests in the operator. Its first priority will be to stabilise and grow production, with work set to include a drilling programme, the rehabilitation of existing wells and facilities, and the construction of new infrastructure, including gas expansion projects.

bp said the investment will bring opportunity and growth to the Kirkuk region, as well as improving supply chain capability alongside job creation.

“It will enable us to bring our experience of managing giant fields to realise the potential of this important asset for Iraq, working alongside and in close partnership with NOC and NGC,” added Lin. “This opportunity is fully in line with our priority of pursuing new growth opportunities for bp as we strengthen and high-grade our portfolio across the world.”

The deal follows a memorandum of understanding signed by bp and Iraq in July 2024, of which technical terms were agreed in December and the majority of commercial terms in January.

bp has a long history at Kirkuk, supporting NOC and the Iraq government on technical studies between 2013 and 2019  to explore the potential for redevelopment. It was also a member of the consortium of firms that discovered oil at Kirkuk in the 1920s.

When Dr. Chiraz Ennaceur – a female industrial technology entrepreneur – stood up to accept the Maintcon 2024 Women in Excellence award, she hoped it would inspire more women to consider a sector where women are unlocking new potential and leading change.

To mark International Women’s Day, Oil Review Middle East asked the co-founder and CEO of CorrosionRADAR to share her remarkable 20-year journey in engineering and industrial technology.

Oil Review Middle East: Why are industry awards important to you?

Dr. Chiraz Ennaceur: Being awarded the Maintcon 2024 Women in Excellence award was certainly a milestone in my career. Sponsored by Aramco and with over 2,000 delegates at the annual event, nominations showcased many incredible women around the world achieving amazing things in the asset maintenance and management industry – a sector where females are now increasing in numbers.

Moments like these remind us that everything’s possible. Entrepreneurs are crucial to drive innovation forward. And women (even a mum of two, like me) can achieve this too.

Oil Review Middle East: What did your education and early career look like?

Dr Chiraz Ennaceur: After completing my school education in Tunisia, I went on to achieve a civil engineering degree at Ecole National d'Ingénieurs de Gabès (ENIG). I was one of two girls in a class of 20 students. My degree cemented my love of engineering, so I completed a PhD in mechanical engineering at the University of Technology of Compiègne (France). This is when I developed new technology to detect crack propagation in pressure vessels. Again, there weren’t many women in this environment back then.

I started my career in the Netherlands as a Postdoc at WZI – University of Amsterdam and the Foundation for Fundamental Research on Matter (FOM). One achievement was developing new technology for structural health monitoring and Non-Destructive testing (NDT).

When I then became programme manager at The Welding Institute in Cambridge (UK) for the Structural Integrity Research Foundation (SIRF), I was leading a £150mn strategic research partnership, looking to innovate across many industry sectors. It was an exciting time to be at the forefront of such technological ideas. At this time, I knew I wanted to set up and run my own company. The question wasn’t if, but when.

Oil Review Middle East: How did you become a co-founder of CorrosionRADAR?

Dr. Chiraz Ennaceur: The opportunity to run my own company came in 2017, along with Dr Prafull Sharma and Dr Mehrdad Silatani, who co-founded CorrosionRADAR with me. The venture was a spinout from Cranfield University designed to take groundbreaking research into the commercial world.

Digitalisation is the future wherever you look – smart cities, health, education, and industry. It’s about having connectivity to an object and using the data to make informed decisions that have more impact. This was our fundamental mission.

At CorrosionRADAR, we’re working to digitalise corrosion under insulation (CUI) monitoring in the oil, gas, and petrochemical industry. Our focus is on helping optimise asset life and improving maintenance processes while saving money and enhancing safety.

Oil Review Middle East: What enables success as a tech entrepreneur?

Dr. Chiraz Ennaceur: Entrepreneurship takes grit. You must live and breathe your venture 24/7 and expect many ups and downs as you move forward. Essentially, you’re solving a problem people are prepared to pay for. In fact, every problem presents an opportunity. But you must be able to commercialise your idea and scale your business.

Start by creating your minimum viable product (MVP). It won’t be perfect from day one, but this is the first step. Then, find early adopters who believe in you, clients who are prepared to join you on your journey. If you’re to grow, collaboration is essential at this early stage. Surround yourself with a good team – people who know more than you. Network extensively and find strong partnerships too. Share your research with other stakeholders and avoid working in silos. In this way you can start to scale.

Finding investment is also important. You must learn how to sell your vision to potential investors and grab their attention. They need to see how their investment could fuel your expansion and develop your ideas to serve the majority profitably. We achieved our first round of funding in 2021, with a second round in July 2024. To date, we’ve raised a total of US$14mn. Our investors include Aramco Ventures, Dow, Mercia Ventures, Kanoo Ventures, and Finindus. It was great to see these industry leaders share our vision and receive their insights.

This welcome financial support is helping us scale at speed and accelerate the deployment of CUI monitoring systems worldwide. It’s also enabling the continued development of new digital products to improve safety and operations across the sector.

Oil Review Middle East: How did you apply your approach to CorrosionRADAR?

Dr. Chiraz Ennaceur: Of course, I had to practice what I preached. People had to believe in our solution and see how Industry 4.0 could transform predictive asset monitoring and maintenance. We were bringing a digital solution to a longstanding and significant challenge for oil and gas pipeline owners: corrosion under insulation (CUI). Winning several awards is a testament to our important and innovative work.

I also wanted the industry to see how CorrosionRADAR aligned with a Net Zero vision. By helping asset managers find CUI problems early, the risk to the environment falls and maintenance becomes less significant.

Oil Review Middle East: Why is it such an exciting time for industrial technology entrepreneurs, especially female ones?

Dr. Chiraz Ennaceur: As innovation accelerates – thanks to technological advances like wireless connectivity, sensor technology, and machine learning – doors are opening for more women to get involved in industrial sectors like asset integrity.

In fact, entrepreneurs have the opportunity to solve real problems using technology – whether they’re male or female.

I continue to champion technology entrepreneurs whenever possible. In 2021, I met Rishi Sunak (Former UK Prime Minister) as part of a select group of CEOs to discuss how the UK government could support innovative companies to scale. I was also involved in several Cambridge Judge Business School programmes, including the EnterpriseWISE programme.

To change the world, we need more entrepreneurs, and women can now make an impact in sectors they may not have previously considered. I believe we’re on a collective mission to ensure digitalisation transforms every commercial sector around the globe. New technologies (and an appetite to change how we do things) are fuelling an exciting revolution you could be part of.

As the world pivots towards a low-carbon future, the petrochemical industry finds itself at a crossroads, balancing growth prospects with evolving regulatory and sustainability challenges

The global energy transition is reshaping industries, compelling them to integrate clean energy solutions alongside their continued reliance on fossil fuels. While much of the focus has been on the deceleration of oil and gas consumption as primary energy sources, petrochemicals remain a critical segment with sustained demand projected well into the coming decades.

This sector, heavily dependent on fossil fuel-based feedstocks, produces essential chemicals that form the backbone of numerous industries, including plastics, fertilizers, and pharmaceuticals. Unlike transportation fuels, whose consumption forecasts have fluctuated, petrochemicals are expected to witness steady demand with fewer disruptions. The International Energy Agency (IEA) projects that petrochemicals will account for more than a third of oil demand growth by 2030, primarily driven by rising consumption in developing economies. In India, for example, demand for key petrochemicals such as ethylene and propylene is expected to increase two- to three-fold over the next two decades, fueled by urbanisation, industrial expansion, and the drive for decarbonisation.

Complex sustainability imperatives

However, this growth trajectory exists alongside increasing scrutiny of the industry’s environmental footprint. Governments and regulatory bodies worldwide are tightening climate policies, imposing restrictions on single-use plastics, and advancing circular economy initiatives. As a result, petrochemical producers must navigate complex sustainability imperatives while maintaining competitiveness.

The environmental impact of petrochemical production has become a focal point for policymakers, investors, and consumers. The industry accounts for approximately 18% of global industrial carbon emissions, with energy-intensive processes such as refining and steam cracking being major contributors. Key challenges include:
• Regulatory pressures: Carbon pricing mechanisms, plastic bans, and stricter emissions controls are being implemented globally, increasing production costs and pressuring profit margins.
• Circular economy and recycling: Advances in chemical recycling, biodegradable alternatives, and closed-loop manufacturing systems threaten to reduce reliance on virgin petrochemical feedstocks, reshaping traditional demand patterns.
• Investor sentiment: ESG-focused investment strategies are compelling oil majors and petrochemical producers to present credible decarbonisation roadmaps, with capital allocation increasingly favouring companies with sustainable practices.

To ensure long-term viability, petrochemical producers are exploring multiple strategic pathways:
• Feedstock diversification: Investments in bio-based and recycled feedstocks are gaining traction as companies seek to lower emissions and align with sustainability goals.
• Carbon capture and utilisation (CCU): The integration of CCU technologies is emerging as a key solution to mitigate emissions, though economic feasibility remains a challenge.
• Advanced materials innovation: Research into high-performance polymers, biodegradable plastics, and alternative chemicals is accelerating, offering new avenues for growth beyond conventional petrochemicals.
• Integration with renewable energy: Shifting production facilities towards renewable power sources and hydrogen-based processes is becoming a priority for reducing the sector’s carbon footprint.

The petrochemical industry stands at a pivotal juncture, balancing robust demand with the imperative to adapt to a rapidly evolving regulatory and sustainability landscape. While traditional growth drivers remain intact, companies that embrace innovation, diversify feedstocks, and integrate low-carbon solutions will emerge as industry leaders. The coming decade will serve as a litmus test for the sector’s resilience, ultimately shaping its role in a decarbonising world.

This article is authored by Synergy Consulting IFA.

Sherwin-Williams has launched the Heat-Flex Advanced Energy Barrier (AEB) which tackles corrosion under insulation (CUI)

CUI occurs due to moisture present on the external surface of insulated equipment and is prevalent in the onshore and offshore oil and gas industries, constituting a threat to assets, personnel and the environment.

The new coating replaces the bulky mineral-based insulation traditionally used on storage tanks, process vessels and piping to retain process heat. It works by building a thick film of insulative coating material onto assets that are required to maintain operating temperatures up to 350°F (177°C), with excursions to 400°F (204°C). This coating retains process heat inside coated assets, allowing them to continue operating even in extreme environments. It effectively rivals the in-service insulative capabilities of traditional insulation systems due to their tendency to absorb and trap moisture that infiltrates their exterior cladding. This moisture not only dramatically reduces the insulating capacity of the insulation, but also contributes to the acceleration of CUI.

“When developing Heat-Flex AEB, we needed to ensure the coating itself could retain process heat at temperatures high enough to remove traditional insulation and not affect the consistency and flow of materials housed inside assets,” says Erik Dammen-Brower, R&D chemist II for Sherwin-Williams Protective & Marine. “Careful manipulation of the coating molecule and product formulation enabled this surprising capability, which has notable ramifications for reducing costs and improving carbon footprints, while enabling efficiencies in various facility applications.”

The thermal insulative coating also offers sustainability benefits. Using just the insulative coating eliminates the manufacturing, shipping and storage of all the materials required for a traditional system. In addition, because Heat-Flex AEB eliminates CUI, steel assets will last far longer before any steel needs to be replaced, if at all, minimising the environmental costs of steel production to maintain an asset. Finally, the consistent thermal efficiency Heat-Flex AEB offers allows asset owners to maintain required operating temperatures without needing to increase process heat inside the coated asset.

In a typical CUI-elimination coating system, a primer is applied directly to prepared steel to protect it from corrosion, with the Heat-Flex AEB insulative coating on top of that and an optional topcoat layer.

Applying Heat-Flex AEB is also much easier, faster and safer to apply than installing bulky insulation systems over assets, the company says.

Oil Review Middle East hosted a very well-attended webinar on 20 November on the future of offshore operations, in association with SAFEEN Group, part of AD Ports Group

The webinar explored the latest trends and challenges in the rapidly evolving world of offshore operations, focusing on groundbreaking innovations that are driving sustainable and efficient practices. In particular, it highlighted SAFEEN Green – a revolutionary unmanned surface vessel (USV), setting new benchmarks for sustainable and efficient maritime operations.

Erik Tonne, MD and head of Market Analysis at Clarksons, gave an overview of the offshore market, highlighting that current oil price levels are supportive for offshore developments, and global offshore capex is increasing strongly. The Middle East region will see significant capex increase over the coming years, with the need for rigs and vessels likely to remain high. Offshore wind is also seeing increased spending. Global rig activity is growing, while the subsea EPC backlog has never been higher, with regional EPC contracts seeing very high activity. Tonne forecast that demand for subsea vessels and other support vessels will continue to increase.

Tareq Abdulla Al Marzooqi, CEO SAFEEN Subsea, AD Ports Group, introduced SAFEEN Subsea, a joint venture with NMDC, which offers reliable and innovative survey, subsea and offshore solutions to support major offshore and EPC projects across the region. He highlighted the company’s commitment to sustainability, internationalisation and local content, and how it is a hub for innovations and new ideas, taking conceptual designs and converting them to commercial projects. A key project is SAFEEN Green, which offers an optimised inspection and survey solution.

Tareq Al Marzooqi and Ronald J Kraft, CTO, Sovereign Global Solutions ME and RC Dock Engineering BV. outlined the benefits and capabilities of SAFEEN Green as compared with commercial vessels, in terms of safety, efficiency, profitability and sustainability. It is 30-40% more efficient through the use of advanced technologies, provides a safer working environment given it is operated 24/7 remotely from a control centre, and offers swappable payload capacity. Vessels are containerised and can be transported easily to other regions. In terms of fuel consumption, the vessel is environment-friendly and highly competitive, reducing emissions by 90% compared with conventional vessels, with the ability to operate on 100% biofuel.

As for future plans, SAFEEN Green 2.0 is under development, which will be capable of carrying two inspection work-class ROVs simultaneously. A priority will be to collect data to create functional AI models for vessels and operations, with the first agent-controlled payload systems in prospect by around 2027.

To view the webinar, go to https://alaincharles.zoom.us/rec/share/mNHjZhAhQzn1sPzmFWZCgrq7_SckfLRcSb4w81I7aVlokO9sgHM_zVeOqgN3DgJS.bO4OIRqNeFP09SPu?startTime=1732095689000

Giving a keynote address on 25 February at International Energy Week in London, hosted by the Energy Institute, Dr Fatih Birol, executive director of the International Energy Agency (IEA) highlighted the soaring growth in electricity demand and its implications

“We are entering an important new chapter in the history of energy, where electricity is going to be even more important,” he said. “When we look at the numbers, we see the age of electricity is coming.”

Dr Birol pointed out that in the last 10 years global energy demand has increased – but global electricity demand has increased two and a half times higher. In the next 10 years, global electricity demand will increase six times more than global energy demand.

The biggest driver of this demand growth is the increase in air conditioning, set to increase further as incomes and temperatures rise. Growth is also coming from manufacturing, with processes becoming more electrified, and electric vehicles, with one in five cars globally being electric in 2024 compared with one in 25 five years ago. AI and data centres are also a major source of demand, with one medium-sized data centre consuming as much electricity as 100,000 homes.

“This is why we see the age of electricity coming – and it has many implications,” he said.

Constraints to growth

Addressing the constraints, Dr Birol said grids are a major bottleneck, with permitting and licensing processing being an issue. “Last year we saw 7 GB of renewables added to the global power system, the biggest in history, but 1,600 GW in renewables waiting in the queue to be connected. This is economically a criminal story.”

He also noted the bottleneck in terms of manufacturing capacity of electrical components. “If you want to buy a cable, especially a DC cable, you have to wait four years, for transformers, five years,” he noted.  

A second issue is electricity pricing, “very important for the competitiveness of any economy. It’s crucial that governments have the right pricing system. Having the right taxes and subsidies is extremely important. In Europe, electricity prices today are two times higher than before the energy crisis. We need the right diagnosis and the right cure so that economies and citizens are not hit by high electricity prices, a key indicator of whether a country can be economically competitive in the future.”

Another issue is the skyrocketing demand for copper, with a major supply deficit predicted by 2035. “The availability and affordability of copper can be a serious issue in the age of electricity.”

Fourthly, nuclear power is making a strong comeback around the world, driven by energy security concerns. “By 2025 we expect global nuclear electricity generation to be the highest in history,” Dr Birol said, noting that 70 GB of nuclear power plants are under construction, the highest amount in the last three decades, with more than 40 countries having firm plans to expand their nuclear capacity. “By around 2030 we may see commercial SMRs hitting the market,” he added.

Concluding, Dr Birol said, “We are seeing the global economy is being electrified in a rapid sense, mainly driven by emerging countries, but advanced economies are also part of it, driven by traditional as well as new sectors such as AI and electric vehicles. It will not be easy to address all the challenges that the new age will bring. Countries and companies who read what is happening and develop policies and strategies to make the most out of the age of electricity, will have a significant advantage over others in the race of global economic competition.”