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Eni, in partnership with the Libyan National Oil Corporation (NOC) through the Mellitah Oil & Gas joint venture, has started hydrocarbon production enabled by the Sabratha Compression Project, a strategic offshore development designed to boost gas output from the Bahr Essalam gas field, located around 100 km off the coast

The Sabratha Compression Project consists of the installation of a new 1,600-ton compression module on the Sabratha platform, equipped with new compression trains, providing an overall compression capacity of about 440 MMscfd.

The new module enables production under low-pressure conditions, offsetting the natural decline of the Bahr Essalam field and maximizing gas recovery, ensuring increased volumes of gas of about 800 million cubic metres per year and associated condensate. This additional production will play a critical role in sustaining national power generation, thus contributing to Libya’s energy security, and supporting export to Italy via the Greenstream pipeline.

Exploration activities yielded positive results in March 2026 with the Bahr Essalam South 2 (BESS 2) and Bahr Essalam South 3 (BESS 3) offshore discoveries. Preliminary estimates indicate that these discoveries jointly contain more than 1 Tcf of gas in place. Their proximity to the existing production facilities of the Bahr Essalam field will ensure a fast-track development.

Two additional strategic projects are presently in execution in the country: Bouri Gas Utilization Project, whose tie-in and commissioning activities are currently underway after the recent installation of the Bouri Gas Recovery Module, and Structures A&E, involving the development of two offshore gas fields. 

Eni has been present in Libya since 1959 and is the country’s leading international operator, with an equity production of approximately 162,000 barrels of oil equivalent per day in 2025 and three development projects currently in execution for a total investment of about US$10bn.

Libya’s efforts to boost oil and gas production following years of civil war have met with considerable success. Sirte Oil Company for Production and Manufacturing of Oil and Gas has recently successfully returned well J-03 in the Metkhendoush field to production. This follows the completion of the installation and commissioning of an electric submersible pump (ESP) artificial lift system, as part of the company’s efforts to maintain production rates and increase the production capacity of its oil fields, through well development and rehabilitation programmes, as well as improved operational efficiency.
The NOC’s crude oil production has now reached around 1.3-1.4mn bpd, the highest level since 2013, and well on the way to its goal of producing 1.6mn bpd by the end of 2026, rising to 2mn bpd in the medium term.

Around US$200bn worth of deals were signed between the Iraq’s Ministry of Oil and American companies during the visit of Iraqi Prime Minister Ali AlZaidi to the USA, as Iraq seeks to grow oil production and address the shortfall of domestic gas production required to power the grid

Speaking during an interview on Al-Iraqiya News, the Minister confirmed that the agreements concluded during the Prime Minister’s visit will significantly boost crude reserves, increase production and provide employment and technical training opportunities across the country.

Pursuing alternative export routes

They include agreements for the revival of a pipeline running from Kirkuk in northern Iraq through Syria to the port of Baniyas, thereby enabling Iraqi oil to be exported without transiting the Strait of Hormuz.
Chevron is reported to be forming a consortium with US-based TI Capital and a group owned by the Syrian-Qatari Al-Khayyat brothers to establish the pipeline network, following the signing of a co-operation agreement between Iraq and Syria to reconstruct the defunct Iraq-Syria crude oil pipeline.

Oil-dependent Iraq is actively pursuing alternative export routes, having seen production drop by more than half with the closure of the Strait of Hormuz, throwing it into severe economic difficulties. Around 90% of its output passed through the Strait before the conflict. The Basra–Haditha–Kirkuk–Ceyhan route is also being considered, which would connect southern Iraq to Turkey’s Mediterranean port of Ceyhan. Earlier this month, the cabinet authorised Basra Oil Company to sign a consultancy services contract with US engineering firm KBR for the proposed Basra–Haditha oil pipeline project, supporting the technical development of the planned export route. Iraq is also looking to export crude oil and naphtha by trucks, through ports in Syria.

Iraq, OPEC’s second largest producer, has a sustainable capacity of 4.9mn bpd and is reported to have ambitions to raise production to 7mn bpd. With the oil and gas sector still accounting for 53% of GDP, 88% of revenues and 91% of exports according to the World Bank, Iraq is reported to be lobbying for an increase in its OPEC quota, currently standing at 4.3mn bpd. Major development and rehabilitation of oilfields is underway with the participation of international oil companies.

Progressing development of Kirkuk oilfields

Also signed during the Iraqi Prime Minister’s visit was an agreement between ConocoPhillips and bp for ConocoPhillips to acquire a 42% interest in BP Energy Company of Kirkuk Limited (BP ECKL), supporting the ongoing redevelopment of four large-scale, currently producing oil fields in the Kirkuk area of northern Iraq. BP ECKL holds the Development and Production Contract (DPC) which covers an initial phase of oil and gas production of more than three billion barrels of oil equivalent from the prolific Baba and Avanah domes of the Kirkuk oil field and the adjacent Bai Hassan, Jambur and Khabbaz fields in Federal Iraq, all currently operated by the Northern Oil Company (NOC). The contract area also includes additional exploration potential.

Ryan Lance, chairman and chief executive officer said, “Consistent with our focus on capital discipline, we see an opportunity to create value through a capital-efficient redevelopment program that leverages a large existing production base, while also offering meaningful exploration upside. We look forward to working with bp and the Government of Iraq to support the continued redevelopment of these historically significant fields in an important energy-producing region.”

bp agreed terms with Iraq for the development of the Kirkuk oilfields in early 2025. Chief executive officer Meg O’Neill said, “Kirkuk is a world-class resource base that can support Iraq’s long-term energy ambitions while creating value for both the country and bp.”

During the Iraqi Prime Minister's visit, Chevron also signed agreements to further develop the West Qurna 2 and Nasiriyah oilfields in Iraq.

While Halliburton has been awarded a contract by Basra Oil Company (BOC) to provide Integrated Field Management Services (IFMS) and Engineering, Procurement, and Construction Management (EPCM) for the development of the Bin Umar and Sindbad oil and gas fields in southern Iraq.The contract scope includes field development planning, production optimisation, digital solutions, and EPCM services for the two fields.

The Bin Umar and Sindbad development program is designed to increase oil production and expand the capture and use of associated gas for domestic supply. BOC estimates oil production could reach approximately 150,000 barrels per day and 300 million standard cubic feet of associated gas from Bin Umar field during the first five-year development phase. The project supports Iraq’s efforts to strengthen energy security and reduce reliance on gas imports, with current domestic gas production insufficient to power the grid.

At the S&P Global Energy Middle East Petroleum & Gas Conference (MPGC) held in London, Musaab Al Mulla, Aramco's vice president of market analysis and sustainability, underlined the need for the recognition of the role refined products play in resilient energy systems, which has been brought into sharp focus in the current crisis

Al Mulla highlighted the need for a realistic approach to the role of oil and gas as the engine for economic growth and the impact of the crisis on products ranging from helium to materials and fertilisers, with shortages of the latter in turn impacting food supply.

A common theme of the event was the need for resilience and redundancy in the energy system to be able to weather such crises. Al Mulla highlighted Aramco’s focus on long-term strategic planning and investment for the future, as exemplified by its investment in the east-west pipeline which is now not only transporting crude but also products, building flexibility into the system, transporting crude to refineries for export and ensuring refined products get to market.

“The world has realised the need for more investment in pipeline infrastructure and domestic refining to ensure industry is working together,” he said.

He remarked that the crisis has demonstrated demand is resilient and has exposed the underinvestment in refineries, with capital flows being redirected towards the energy transition and resulting in a deficit of 3mn bpd.

“We need to build refineries and infrastructure while also reducing emissions,” he said, noting that Aramco has one of the lowest emissions intensities.

Discussing demand for refined products, he noted that demand for jet fuel continues to grow and refinery utilisation is at record rates.

“We believe demand will continue to be resilient, and low carbon products will be important as well,” he said.

He foresaw strong growth in chemicals with the market for durable materials growing in multiple sectors, noting that carbon-based materials can help reduce emissions. Replacing steel with polypropylene in cars can reduce emissions by 80%, for example. He also highlighted growth in demand for low carbon aviation fuel (lcaf), fossil-based jet fuel, which is 10% lower in emissions than conventional jet fuel, and complements sustainable aviation fuel (saf) as it addresses some of its limitations.

Highlighting the continuing long-term strategic importance of refining, he stressed that gasolene will still account for a significant proportion of transportation fuel by 2050.

With resilience, reliability and sustainability being global challenges, Al Mulla said that resilience for Aramco means building on operational excellence, long-term investment in oil and gas, new energies and low carbon, and localisation, noting Aramco’s 70% localisation target to ensure a resilient supply chain.

“Resilience is correlated with sustainability, you can’t be sustainable if you are not resilient,” he said. It involves not only having the flexibility to be able to adapt to shocks, but also having the capacity to innovate and grow supply while also reducing emissions, he added.

Commenting on the Middle East’s attractiveness as an investment destination, he said, “Clearly the region remains the hub for oil and gas petrochemicals and refining, and it has shown its infrastructure and energy system have been resilient in this historic crisis.”

He said Aramco is also looking at other regions, and urged the need for more investor-friendly policies in Europe, where there is a need for more domestic refining and chemicals so as not to be dependent on other regions.

Discussing the role of gas, Al Mulla said there will be increasing demand to fulfil the growing demand for power from data centres, highlighting the move towards regional data centres.

In line with its ambitions to grow gas production by more than 60% by 2030 compared to 2021 levels, Aramco has awarded Halliburton a multi-year contract to deliver integrated stimulation and completion services for unconventional gas development in the Kingdom of Saudi Arabia

This award is part of a broader multi-billion contract, supporting one of the largest unconventional gas development programs globally, at the heart of which is the Jafurah unconventional gas development. The Jafurah field contains 229 trillion scf of gas-in-place and 75 BSTB of condensate-in-place. Production started in December 2025, with an ambition to ramp-up and deliver two billion scfd of sales gas by 2030, along with 420 million scfd of ethane, and around 630,000 barrels per day of gas liquids and condensates.

This award builds on Halliburton’s established portfolio supporting Aramco’s unconventional program. The company delivers a comprehensive suite of drilling and completion solutions across many of the Kingdom’s unconventional plays. This collaboration supports broader regional efforts toward integrated unconventional development programmes.

Operators in unconventional reservoirs and high-pressure environments require precision and speed to lower costs per well and improve production consistency. Halliburton’s hydraulic fracturing services combine reliable surface operations with scalable subsurface solutions that help reduce nonproductive time and support predictable execution.

Under the contact, Halliburton will deploy intelligent automation solutions for fracturing to optimise performance in real time and support disciplined implementation across multi-well campaigns supporting digital integration across operations while advancing efficiency and operational reliability.

OCTIV services are at the core of Halliburton’s intelligent fracturing ecosystem. OCTIV digital fracturing services enable frac automation, digital operations, and remote connectivity across all aspects of Halliburton’s hydraulic fracturing business. The services enable intelligent automation to maximise the performance and efficiency of equipment and operations. OCTIV automates digital workflows, information, and equipment across all aspects of fracture operations, for enhanced safety and efficiency.

While the Sensori fracture monitoring service is an easy to deploy, cost-effective fracture monitoring solution for continuous measurement and visualisation of the subsurface. It combines non-intrusive technologies, advanced data acquisition and processing, and real-time answers into a single, cost-effective solution that empowers operators with unparalleled visibility and control over fracture performance.

"This award highlights our long-standing collaboration with Aramco and builds on more than 80 years in the Kingdom, while advancing unconventional gas development in the Kingdom. Beginning in the third quarter of 2026, Halliburton will deploy the Kingdom’s first fully integrated intelligent fracturing platform through OCTIV Auto Frac and Sensori fracturing monitoring services to contribute to asset value for one of the world’s largest unconventional fields,” said Rami Yassine, president, Eastern Hemisphere, Halliburton.

To support development activities in the Jafurah Basin, Halliburton plans to increase its investment in local manufacturing, improve its supply chain, and expand workforce development programs within the Kingdom, in line with Vision 2030 objectives, aiming to scale operations and sustain high performance as unconventional activity accelerates.

Oil Review Middle East, in association with Flyability is hosting a webinar on “NDT drones for the oil and gas industry: from innovation to implementation" on Tuesday 14 July at 2pm GST

The oil and gas industry continues to face increasing pressure to improve safety, reduce operational downtime and enhance inspection efficiency. Increasingly, operators are deploying drone technology to improve inspection quality, enhance safety and drive greater operational efficiency across oil and gas assets, discovering new ways to conduct inspections in hazardous and confined spaces while minimising risks to personnel.

This practical session will explore how drone technology is being used to perform remote NDT inspections, collect critical asset data and create digital twins that support more effective asset integrity management. Through real-world case studies and industry experience, attendees will gain valuable insights into implementing drone solutions within their own operations.

Register here

Key highlights

• Visual inspections: Learn how drone technology is improving access to difficult and hazardous inspection environments
• Remote NDT applications: Explore the use of UT spot measurements and other remote inspection capabilities
• Digital twins: Understand how digital asset models are supporting integrity monitoring and maintenance planning
• Industry success stories: Hear practical examples from asset owners and service providers successfully utilising drone technology
• Implementation strategies: Gain insights into integrating drone-based inspections into existing operational workflows.

Our expert speakers:

• Fabio Fata, senior sales manager, Flyability
• Senan Khatib, certified AUV pilot/instructor and UAV field specialist Sagerdrone
• Abdullah Al-Rahmah, head of UAV team, Saudi Aramco
• Jacob Swidy, head of inspection technology and digital transformation, Saudi Aramco

Don’t miss this opportunity to take away exclusive insights from the leading lights of the drone technology world!
Register here

The conflict in the Middle East has disrupted global production and trade in hydrogen-based products such as fertilisers, fuels and industrial feedstocks, exposing vulnerabilities in supply chains, according to the latest edition of the IEA’s Global Hydrogen Review

The report finds that the crisis and the increased focus on energy security are renewing interest in hydrogen and hydrogen-based fuels, although low-emissions hydrogen remains at a relatively small scale.

Demand for hydrogen worldwide surpassed 100 million tonnes in 2025, according to the report, while production of low-emissions hydrogen grew by 20% to almost 1 million tonnes. However, persistent barriers including high costs, uncertain demand, complex regulations and a lack of infrastructure continue to slow the development of low-emissions hydrogen, putting 2030 targets announced by governments increasingly out of reach.

"The current crisis has highlighted how deeply economies around the world depend on trade in hydrogen-based products and the significant role of the Middle East in those supply chains," said IEA executive director Fatih Birol. "Countries are looking for ways to make their energy systems more resilient and diversified. Low-emissions hydrogen can play an important role in those efforts over time, but stronger policy support and much faster deployment will be needed before it can make a meaningful contribution at scale."

Fertiliser markets have been particularly affected by the conflict in the Middle East, which is home to around one-sixth of global hydrogen production, the majority dedicated to the production of chemicals, fertilisers and refined oil products. The region accounts for more than 10% of global refining capacity, ammonia and urea production, and close to 17% of methanol production.

The region makes up over one-quarter of global trade in ammonia, almost 40% of urea trade and almost 45% of methanol trade, and one-third of its refining capacity is export-oriented. The closure of the Strait of Hormuz has severely disrupted the supply of all these products. The production of hydrogen-based fuels outside the Middle East has also been affected, particularly in Asia, where countries are very dependent on natural gas imports from the Middle East.

Disruptions to production, exports and shipping routes have contributed to shortages and price volatility across global markets with the increase in fertiliser costs posing risks for food supply chains, especially in import-dependent agricultural economies.

Low-emissions hydrogen

Low-emissions hydrogen production grew by 20% in 2025 to reach almost 1 Mt and is set to exceed 1% of global hydrogen production for the first time, but progress is concentrated in a small number of projects. However investment momentum weakened in 2025, with delays to final investment decisions and a shrinking pipeline of projects highlighting the challenges facing the sector.

Despite continued policy support in some markets, low-emissions hydrogen and hydrogen-based products remain significantly more expensive than conventional alternatives in most markets. The pipeline of announced projects for producing low-emissions hydrogen by 2030 has shrunk by around a quarter since last year to 27 million tonnes due to delays and cancellations, and the number of projects likely to become operational by 2030 has fallen significantly.

Demand uncertainty remains a key constraint for scaling up low-emissions hydrogen development, with offtake agreements at low level. This is cited by developers as one of the largest barriers to investment.