In The Spotlight
Aramco reported sharply increased profits for the first quarter of 2026, amid higher oil prices as a result of the US/Iran war and the blockade of the Strait of Hormuz
The energy giant's profits rose to US$32.6bn in the first quarter, from US$26.6bn in Q1 2025, an increase of 25%.
During the quarter, geopolitical developments in the Middle East significantly impacted global energy markets and resulted in massive supply disruption, with supply losses of more than 1bn bbl since the start of the conflict, increasing oil price volatility. In response, Aramco swiftly activated its business continuity plans to support continuity of global oil and product supplies, rerouting crude oil volumes via the East-West Pipeline to utilise alternative export routes, while also leveraging its domestic and international storage capacity. This enabled Aramco to deliver strong financial results despite impacts to certain Aramco facilities (including the giant Manifa oilfield) and ongoing regional instability. These events did not materially impact Aramco’s financial position, results of operations, or cash flows, according to the company.
“Aramco’s first quarter performance reflects strong resilience and operational flexibility in a complex geopolitical environment,” said Amin H. Nasser, Aramco’s CEO. “Our East-West Pipeline, which reached its maximum capacity of 7.0 million barrels of oil per day, has proven itself to be a critical supply artery, helping to mitigate the impact of a global energy shock and providing relief to customers affected by shipping constraints in the Strait of Hormuz.
He added that recent events have demonstrated the vital contribution of oil and gas to energy security and the global economy, serving as a stark reminder that reliable energy supply is critical.
"Despite these headwinds, Aramco remains focused on its strategic priorities and is leveraging both its domestic infrastructure and its global network to navigate disruption," he continued paying tribute to the professionalism, determination and expertise of the company's people.
Aramco notes that supply shock is hitting an already tight market with limited inventory in the face of higher H2 seasonal demand, reinforcing the recognition of the critical importance of crude supplies.
In terms of operational activity, Aramco continued to deliver strong upstream performance despite regional uncertainty through its operational resilience and flexibility. Total hydrocarbon production in the first quarter of 2026 was 12.6 mmboed, an increase of 0.3mn boed compared to the same period in 2025, which Aramco says reflects its ability to adapt to changing market conditions and showcases the scale and flexibility of its assets, supported by its operational and technical capabilities and robust contingency planning. Progress was made on projects to maintain MSC at 12.0 mmbpd. Aramco notes construction activities advanced for the Zuluf crude oil increment, which is expected to process 600mn bpd of crude oil from the Zuluf field through a central facility in 2026. Engineering, procurement, and construction activities progressed for phase two of the Dammam development project, which is expected to be onstream in 2027, adding crude oil production capacity of 50 mbpd.
Aramco continued to progress its strategy to increase sales gas production capacity by approximately 80% through the following developments during the quarter. Phase one of the Jafurah Gas Plant advanced toward full production capacity and successfully exported the first shipment of condensate to customers. Procurement and construction activities progressed for phase two, which is expected to be completed in 2027. Production from Jafurah is expected to reach 2.0 bscfd by 2030, in addition to significant volumes of ethane, NGL, and condensate. Construction activities progressed for the Fadhili Gas Plant expansion, which is expected to add additional raw gas processing capacity of 1.5 bscfd by 2027. Despite temporary disruptions at certain domestic refining and processing facilities, Aramco maintained strong supply reliability of 96.3% in the first quarter by leveraging its integrated global network.
TA’ZIZ, a joint venture between ADNOC and ADQ, has signed long-term agreements spanning offtake, feedstock and sales across its chemicals portfolio, valued at US$28.5bn (AED104.6bn)
Signed at the Make it in the Emirates Forum, the agreements, valued at US$28.5bn, secure both global offtake and reliable local feedstocks, allowing for large-scale chemical production within the UAE and reinforcing TA’ZIZ’s role in building a fully integrated domestic chemicals ecosystem. The deals include sale agreements with ADNOC and Proman for methanol; Emirates Global Aluminium (EGA) for caustic soda; Mitsubishi Corporation for ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda; Mitsui & Co. for EDC and caustic soda; Sanmar Group for EDC and VCM; Tricon for PVC, EDC and caustic soda; and Vinmar for EDC and polyvinyl chloride (PVC).
ADNOC Gas secured a 25-year feedstock agreement to supply natural gas to the TA'ZIZ methanol project valued at over $5 billion (AED18.4 billion). TA’ZIZ also agreed a 20 year salt supply agreement with Abu Dhabi based Sama Salt to support production at its PVC complex.
Mashal Saoud Al-Kindi, CEO of TA’ZIZ, said, “These long term agreements represent a defining milestone for TA’ZIZ and for the UAE’s industrial growth ambitions. By securing both global demand and reliable local feedstock, we are translating vision into delivery, anchoring world scale chemicals production, strengthening domestic value chains and creating enduring economic value, jobs and supply chain resilience for the UAE.”
Together, these agreements leverage local resources to secure a reliable and sustainable supply of critical raw materials, further strengthening domestic value chains and advancing the UAE’s industrial self sufficiency.
TA’ZIZ is a manufacturing, industrial services, logistics and utilities ecosystem that enables the production of transition fuels and new products across the chemicals value chain, supporting ADNOC’s ambition to become a top three global chemicals player as well as the UAE’s industrial development and economic diversification ambitions.
The TA’ZIZ Industrial Chemicals Zone is set to produce 4.7 million tonnes per annum (mtpa) of chemicals once construction is completed in 2028. This includes a 1 mtpa ammonia plant, a 1.8 mtpa methanol plant and 1.9 mtpa of marketable products from its integrated polyvinyl chloride (PVC) complex. The PVC complex, which produces PVC, ethylene dichloride (EDC), vinyl chloride monomer (VCM), and caustic soda, will be one of the world’s top three largest single site PVC complexes.
Also at the Make it at the Emirates Forum, TA’ZIZ and Alpha Dhabi Holding announced a strategic collaboration agreement for around US$10 bn (AED36.7bn) in capital investment in new industrial chemicals in the TA’ZIZ industrial chemicals ecosystem in Al Ruwais Industrial City, Al Dhafra region of Abu Dhabi.
The partnership could produce up to 14 new chemicals, delivering around 2.2mn tonnes per annum (mtpa) of additional chemical capacity in the TA’ZIZ industrial chemicals ecosystem in Al Ruwais Industrial City. The new chemicals, which include styrene and polystyrenes, acrylic acid and derivates, polyols, MDI, epoxy resins and linear alpha-olefins, are based on domestic demand and could substitute key products currently imported into the UAE, while strengthening local supply chain resilience. The partnership supports the UAE’s national industrial priorities, including the Make it in the Emirates (MIITE) initiative and the country’s industrial strategy, by strengthening domestic manufacturing capability and advancing self-sufficiency in strategically important chemical products.
The Ministry of Foreign Affairs UAE has issued condemnation of a drone attack targeting a vessel linked to ADNOC as it transited through the Strait of Hormuz, warning of escalating risks to regional stability and global energy security.
The incident took place on Monday, 4 May 2026.
According to a statement released by the ministry, two drones from Iran were used in the incident, which struck a national carrier affiliated with ADNOC.
No injuries were reported.
In its statement, the UAE called for an immediate halt to what it described as unprovoked attacks, urging Iran to de-escalate tensions and ensure the safe passage of vessels through the Strait of Hormuz.
The ministry stressed the need for the full and unconditional reopening of the waterway, which remains one of the world’s most critical energy transit routes, to maintain stability in global markets.
Oman is looking to boost exploration and production to grow the contribution of oil and gas to the economy. (Image source: Oman Ministry of Energy & Minerals)
Oman’s Ministry of Energy and Minerals has announced the offering of five concession areas in the oil and gas sector for competitive bidding to local and international petroleum companies
The five concession areas are distributed across a wide geographical area and have significant geological potential, according to the Ministry. They are as follows:
· Blocks 12 and 16: Located in the “Greater Barik Area” in central Oman, covering areas of 5,050 sq km and 4,496 sq. km respectively.
· Block 55: Located in the “Eastern Flank Province”, spanning an area of 7,564 sq. km.
· Blocks 42 and 45: Located in the “Sharqiyah Sands Basin” and surrounding areas, with Block (42) covering 30,682 sq. km and Block (45) covering 5,483 sq. km.
The Ministry explained that the application process goes through several stages, including reviewing the available opportunities, registering and submitting the required documents, obtaining the technical data, and then submitting proposals through the designated platform before the deadline. Companies interested in participating can review the tender details through the tender website via the QR Code. Registration will commence on 12 April 2026 and continue until 30 September 2026, with results to be announced following the completion of the technical and financial evaluation of the submitted bids.
The Ministry affirmed that the bid round is part of its ongoing approach to enhancing the investment environment and improving transparency, thereby contributing to attracting quality investments, strengthening international partnerships, transferring modern technologies, and maximising the added value of the oil and gas sector, while supporting sustainability and enhancing the sector’s contribution to the national economy, in line with the objectives of Oman Vision 2040.
The launch of the bid round follows the signing of a concession agreement in February between Oman's Ministry of Energy and Minerals and a joint venture of OQ Exploration and Production and Malaysian group Petronas for offshore block (18) in the Sea of Oman covering a 21,000 sq km area, which offers significant frontier exploration potential across diverse geological settings, from shallow to ultra-deep water.
The pipeline will bring crude from the Habshan fields to the Port of Fujairah. (Image source: Adobe Stock)
His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, has instructed ADNOC to accelerate the West-East Pipeline Project, according to a report from the Abu Dhabi Media Office (ADMO)
The Crown Prince was chairing a meeting of the Executive Committee of the ADNOC Board of Directors, held at the company’s headquarters in Abu Dhabi.
The pipeline is currently under construction and is expected to become operational in 2027. It would transport crude from Abu Dhabi's Habshan fields to the Port of Fujairah, boosting the UAE’s ability to bypass the Strait of Hormuz, though which 20% of the world’s oil supply passes, and which is currently still being blockaded by Iran. The project is expected to double ADNOC’s export capacity via the Emirate of Fujairah, in response to global energy demand.
It comes following the UAE’s recent departure from OPEC, which will allow it greater production flexibility free from OPEC quotas as it looks to increase capacity to 5mn bpd by 2027 with further increases on the cards thereafter.
During the Executive Committee meeting, His Highness commended ADNOC for its resilience in maintaining safe operations, while continuing to supply energy to the local and international market, according to the ADMO report. ADNOC’s Habshan gas processing plant was badly damaged by Iranian drone attacks, and will not be fully repaired until next year, with 80% restoration by the end of 2026, according to ADNOC Gas. However, overall supply across the ADNOC Gas network has been substantially restored, allowing the company to continue meeting domestic customer demand through its broader infrastructure.
His Highness also noted ADNOC’s strong progress in delivering key growth projects, and its operational flexibility to responsibly increase production to meet market needs when export constraints allow.
The Executive Committee noted the progress made in developing the TA’ZIZ Phase 1 chemicals ecosystem in Al Ruwais Industrial City, Al Dhafra Region, highlighting its key role in creating new domestic value chains, according to the ADMO report. His Highness reiterated the important role of ADNOC’s In-Country Value (ICV) programme in driving growth and value creation opportunities for local businesses and manufacturers, and directed the company to prioritise Made in the Emirates products across its projects and operations.
As the Uganda National Oil Company aims to build a crude refinery, it has reached out to a unit of global commodities trader, Vitol, for a US$2bn loan to support the project alongside construction and infrastructure developments
According to Henry Musasizi, Uganda's junior finance minister, this seven-year tenor loan from Vitol Bahrain EC (VBA) comes with an interest rate of 4.92%. The minister worked on advancing the approval process for the credit line and the loan, which involved significant lawmakers, who sanctioned the development with a majority verdict.
Musasizi said that Vitol's support "presents an opportunity to access non-traditional financing to implement. ..projects and support the government in developing national infrastructure."
Vitol Bahrain EC has a long-standing presence in Uganda's downstream sector, functioning as the sole supplier of refined petroleum products to UNOC, before the state-owned company sells it to retailers across the country.
Alongside the refinery, the loan amount will also be covering road construction, a petroleum products storage terminal and extension of a petroleum pipeline from western Kenya to Uganda's capital Kampala.
Previously, the UNOC also concluded a deal with the UAE-based Alpha MBM Investments, whereby a domestic refinery with a capacity of 60,000 barrels per day is in the pipeline. The agreement accords 60% stake on the refinery to the UAE firm while UNOC retains 40%.
Uganda is looking to begin commercial oil generation starting next year from fields in its west.
The platform has been extended into the operations phase of subsea project lifecycles. (Image source: Adobe Stock)
FutureOn, a global offshore energy software company, has launched FieldTwin Operate, a digital twin for subsea operations that bundles project design, engineering, and inspection data in a single geospatial operational environment
Earlier, FieldTwin Design was primarily used in the early concept design stage of field development but now with FieldTwin Operate, the platform has extended into the operations phase of subsea project lifecycles. Teams can work on initial project data from FieldTwin Design in day-to-day operations through a governed digital thread.
Throughout the subsea assets, crucial information is often spread across multiple engineering models, geographic information system (GIS) platforms and inspection records. Operations teams assemble data manually to build a complete view of the field and it is a time-consuming process which often results in missing out on critical project information.
FieldTwin Operate connects all project data into a single, always-current geospatial view of the field, enabling faster, more informed decision-making. Designed to be used in both greenfield and brownfield environments, the digital twin integrates with existing enterprise systems and industrial data platforms through open APIs. For older brownfield assets where no 3D model exists, the platform can incorporate existing data sources such as GIS coordinates, spreadsheet tag lists, ROV inspection footage, and point cloud scan data.
“Operators don’t have a shortage of data. They have a shortage of usable context from across the project lifecycle. As energy projects evolve, the burden shifts onto engineers to piece together what is happening in the field, often without having the full digital thread from the start of the project. That slows decision-making and introduces unnecessary risk,” stated Stig Wølstad-Knudsen, CEO of FutureOn.
“FieldTwin Operate solves this problem by giving teams a clearer view of their assets in a live operational context, so they can understand issues faster and act with greater confidence in day-to-day operations,” adds Wølstad-Knudsen. FieldTwin Operate is available globally for all the customers of FutureOn.
Project data accessibility and continuity has been a challenge across the energy industry. 50% of oil and gas companies are already using digital twins to manage assets and the adoption of digital twins is likely to increase across oil and gas operations.
Oil and gas operations in the Middle East span harsh deserts, sprawling refineries and high-risk offshore environments. (Image source: Adobe Stock)
In the oil and gas industry, where every second counts and every decision impacts profitability and safety, robust security is not just a luxury – it's a necessity
From protecting critical assets to safeguarding human lives, security systems must meet the highest standards of reliability and performance.
Pelco, a leader in video security, is uniquely positioned to address the challenges faced by oil and gas companies in the Middle East, offering a fresh perspective on how to optimise security systems seamlessly. With our upcoming online event, we invite you to explore how Pelco can help tackle worker safety, asset protection and operational efficiency in this complex industry.
Addressing oil and gas challenges head-on
Oil and gas operations in the Middle East span harsh deserts, sprawling refineries and high-risk offshore environments. Physical, environmental and digital threats are converging, and security systems must evolve to meet these overlapping demands. Our upcoming online event will focus on three critical areas where Pelco's expertise can make a difference:
1. Improve worker safety and HSE compliance
Ensuring worker safety is both a moral responsibility and a regulatory imperative. Health, Safety and Environmental (HSE) compliance is a top priority for oil and gas operations. Pelco's advanced portfolio is designed to help you meet these standards.
Edge-based analytics and intelligent video security can be valuable tools in supporting site safety. These systems can help detect safety incidents, such as slips or falls, especially in areas where oily surfaces, heat or dust create additional hazards. When incidents occur in remote areas, automated detection can prompt faster intervention, thereby closing the gap between the event and the response.
Personal Protective Equipment (PPE) compliance is another key safety concern. High temperatures in the Middle East can lead to discomfort, and in some cases, workers may be tempted to remove protective gear, such as hard hats or vests, for temporary relief. In this case, AI-enabled video analytics can help identify instances of non-compliance, enabling safety teams to address the issue before it becomes a liability.
Zone-based behavioural analytics can help detect when someone enters a restricted or hazardous area or remains in a dangerous zone longer than necessary. For example, loitering detection near flare stacks or storage tanks can support situational awareness and proactive incident mitigation.
2. Improve security and asset protection
From refineries in the desert to offshore rigs in corrosive marine environments, your assets operate under pressure, so your security systems must withstand these harsh conditions. In areas where explosive gases or dust particles may be present, even basic equipment can pose risks. That’s why choosing video solutions built for hazardous environments is critical.
ExSite Enhanced cameras, featuring 316L stainless steel construction and certifications such as ATEX and IECEx, are designed for use in hazardous atmospheres. Whether it’s observing pipeline manifolds, wellheads or chemical storage areas, these systems deliver dependable performance in high-risk environments. In corrosive coastal locations, such as LNG terminals or offshore rigs, Pelco’s anti-corrosion models withstand salt spray, humidity and chemical exposure without compromising visibility.
For perimeter defence, long-range Silent Sentinel cameras give security teams early warning of approaching threats, detecting vehicles, vessels or drones from kilometres away in fog, darkness or dust. These systems are especially valuable for remote desert pipelines or unstaffed offshore installations, where rapid detection is critical to prevent disruptions.
3. Minimise downtime and maximise uptime
Every minute of downtime impacts revenue. For oil and gas operations, the cost of unplanned outages is measured in millions of dollars. With Pelco, your video security can become an operational asset.
Radiometric thermal cameras can detect overheating in transformers, compressors and electrical panels, allowing teams to take action before equipment failure occurs. At the same time, Pelco’s camera image health analytics help ensure your video infrastructure is always performing at its best. Our cameras automatically detect issues such as lens obstructions, misalignment or tampering, reducing the need for manual inspections and helping ensure your security coverage is always clear, optimised and ready when it matters most.
Join us to discover the Pelco advantage
We invite you to join our upcoming online event, where industry leaders and Pelco experts will dive deeper into these challenges and solutions. Together, we'll explore how Pelco can be the missing ingredient to supercharge your security and drive operational excellence in the Middle East oil and gas sector.
Don't miss this opportunity to gain actionable insights and position your operations for success. Register now and discover how Pelco can transform your approach to security.
The Middle East and North Africa (MENA) is set to become the world’s largest hydrogen exporter by 2060, while maintaining a dominant position in global oil and gas markets, according to DNV’s Oil & Gas Decarbonization in the Gulf Region report
The report highlights how Gulf Cooperation Council (GCC) countries are cutting the emissions intensity of their core oil and gas production while continuing to play a central role in global energy supply, presenting a picture of a region approaching the energy transition from a position of confidence and capital strength. Reductions in emissions intensity are occurring alongside continued hydrocarbon production and investment across renewables, electrification, hydrogen, methane abatement, digitalization, and carbon capture.
Since 2005, the GCC has produced nearly 18% of global oil and gas, a share expected to increase as investment continues in low-cost, advantaged resources. As global energy demand increasingly shifts toward Asia, the region’s location and cost competitiveness strengthen its position as a preferred supplier. At the same time, decarbonization measures are becoming an integral part of long-term competitiveness.
“The global energy transition will not progress at the same pace across regions, nor will it follow a single pathway,” said Brice Le Gallo, vice-president & regional director for Southern Europe, MEA & LATAM, Energy Systems at DNV. “In the Middle East, oil and gas remain central to economic stability and global energy security. The key challenge is to reduce their emissions footprint while accelerating investment in the technologies needed for a lower-carbon energy system.”
Electrification is being used to cut Scope 2 emissions from pumps, compressors, and offshore facilities, through grid connections, renewable power, and hybrid solutions. These efforts are supported by energy-efficiency measures and the use of digital tools and artificial intelligence to optimise drilling, reservoir management, and asset operations, reducing energy intensity and emissions per barrel produced.
Methane reduction remains one of the most immediate and cost-effective options for lowering emissions. Across the GCC, routine flaring is planned to be phased out by 2030 and leak detection and repair (LDAR) programmes are increasingly standard. National oil companies are also aligning with international methane initiatives, enabling continued production growth while reducing methane intensity in line with national net-zero targets.
GCC countries are realigning domestic energy systems to reduce oil and gas use domestically and free up volumes for export and low-carbon fuel production. Growth in renewables, electrification of transport and buildings, and efficiency gains are driving this shift. Investment in downstream industries, petrochemicals, and low-carbon fuels is also changing export profiles, moving beyond crude oil toward higher-value and lower-carbon energy products.
With access to low-cost natural gas, strong solar resources, and established industrial and export infrastructure, the region is well placed to scale both low-carbon hydrogen (produced from natural gas with carbon capture) and renewable hydrogen produced through electrolysis. By 2060, the Middle-East and North Africa region is projected to produce around 19 million tonnes of hydrogen and 13 million tonnes of ammonia per year, exporting about 50%, mainly toward Europe and advanced Asian economies.
“Hydrogen, ammonia, and carbon capture are becoming core elements of the GCC’s energy export model,” said Jan Zschommler, market area manager for the Middle East, Energy Systems at DNV. “As emissions requirements tighten, access to international markets will increasingly depend on carbon intensity. Integrating hydrogen production with renewable power, carbon capture, and existing industrial clusters allows the region to remain competitive while meeting these requirements.”
Carbon capture, utilization and storage (CCUS) is also set to grow. In January 2026, the UAE's Supreme Council for Financial and Economic Affairs has introduced Carbon Capture Policy as a further commitment to meeting their carbon reduction targets. Captured CO₂ volumes (including CO₂ removal) are expected to reach around 250 million tonnes per year by 2060, equivalent to roughly 8% of regional energy-related and industrial emissions.
Bioenergy with carbon capture (BECCS) and direct air capture (DAC) combined are expected to remove around 81 million tonnes of CO₂ per year by 2060, helping to offset emissions from sectors that are more difficult to decarbonise.
The full report is available at https://www.dnv.com/energy-transition-outlook/oil-and-gas-decarbonization-in-the-gulf-region/


