McDermott has been awarded a major contract with ADNOC for the engineering, procurement, construction and installation services for the Nasr-115 Expansion Project located offshore Abu Dhabi.
The Project acts as a critical component for the overall Nasr Phase II Full Field Development which is expected to increase oil production capacity to 115,000 bpd by 2027.
The scope of work McDermott is expected to provide includes comprehensive EPCI services for two topside structures, one new manifold tower, one jacket, one bridge and all associated pipelines, cables and brownfield modifications.
Mike Sutherland, McDermott’s Senior Vice President, Offshore Middle East, said, “McDermott shares ADNOC’s commitment to increase offshore production capacity and will do its part with safe, efficient delivery of the Nasr-11 Expansion Project to the highest quality standards. Our decades-long track record of delivering innovative, comprehensive solutions across complex offshore developments supports ADNOC’s vision for sustainable energy growth and to meet its capacity goals as part of the P5 Project.”
“This award underscores McDermott’s position as a trusted partner in executing large-scale infrastructure projects in the region. We are proud to further support development of the UAE’s energy sector in a safe and sustainable manner.”
Aberdeen-based Decom Engineering has signed a Memorandum of Understanding with UAE-headquartered Unique Group to jointly deliver an integrated package of subsea decommissioning services in major oil and gas regions, including the Middle East and APAC countries.
Unique, a global subsea technology and engineering leader, has a global footprint spanning 18 locations and has 30 years experiences working across the oil and gas, renewables and subsea sectors, while Decom has a strong reputation for designing and deploying field-proven mechanical cutting and removal tools that reduce costs and improve safety performance during high-risk infrastructure removal operations.
Unique will provide subsea engineering expertise, project management and offshore operational support to align with Decom’s proprietary Chopsaw cutting, tooling and technical expertise in decommissioning. Decom will have equipment storage space at Unique’s global facilities, ensuring assets are strategically positioned for quicker deployment to client projects. In addition to supporting engineering design and operational planning, Decom will collaborate on training and knowledge transfer initiatives.
Commenting on the strategic alliance, Decom Engineering Managing Director, Nick McNally, said, “The MoU allows us to jointly provide a full decommissioning workstream across subsea cutting, recovery operations, engineering support, operational planning, personnel deployment, and equipment sharing.
“From a commercial standpoint, operators increasingly expect a turnkey model - a single point of accountability - and this partnership is designed to meet that demand without comprising our respective reputations for high-level delivery on complex projects.
“For operators facing tightening budgets, ageing subsea assets, and increasing regulatory attention - including tighter emissions-reduction commitments - an integrated solution like this could prove highly appealing.”
Ross Anderson, Regional Manager, Decommissioning, at Unique Group, added, “By combining Unique Group’s global subsea engineering and offshore execution expertise - now further enhanced by our recent major investment in subsea decommissioning tooling, controlled Mass Flow Excavation systems, and back deck equipment - with Decom Engineering’s specialist cutting and removal technologies, we are positioned to deliver integrated, high performance decommissioning solutions that are tailored to our clients’ exact requirements.”
Gulf of Suez Petroleum Company (GUPCO) has commenced production from the Al-Wasl-4 development well at the North Safa Field, marking a further boost t crude oil output from one of the Gulf of Suez region’s most important recent offshore discoveries.
The well, drilled from the field’s offshore production platform, has an initial production rate of around 2,250 barrels of crude oil per day, alongside approximately 1.3mn cubic feet of gas per day. As a result, GUPCO’s total crude oil production has risen to roughly 65,000 barrels per day, strengthening Egypt’s upstream output from mature offshore assets.
In a statement issued on Tuesday, Egypt’s Ministry of Petroleum and Mineral Resources said the start-up reflects GUPCO’s ongoing strategy to maximise value from its asset base through an integrated development approach. This includes drilling new exploratory and development wells, re-evaluating geological structures and leveraging remaining potential within mature producing fields.
The Al-Wasl-4 well is among the flagship projects within GUPCO’s 2026 development plan, having been prioritised following encouraging technical and geological studies. According to the ministry, these assessments confirmed the commercial viability of the well and its role in sustaining and expanding production from the North Safa Field.
North Safa is regarded as one of the most significant offshore discoveries in the Gulf of Suez in recent years. Commercial production from the field began in 2024 after GUPCO completed a major development programme that included the installation of a new offshore production platform and the laying and connection of subsea production pipelines. The project was executed in line with stringent occupational safety, health and environmental protection standards, the ministry added.
Alongside bringing new wells on stream, GUPCO is also advancing an integrated reservoir pressure maintenance programme designed to support long-term production sustainability. The programme involves water injection across three wells, aimed at maintaining reservoir pressure, optimising recovery rates and enhancing overall production efficiency.
Preparations are already under way for the second phase of development at North Safa, with reservoir performance data from current operations expected to inform future drilling and production plans. The ministry noted that the company’s focus remains on balancing short-term production gains with long-term field management, particularly in offshore environments where maximising recovery from existing infrastructure is critical.
The latest production milestone underscores the continued importance of the Gulf of Suez as a core oil-producing region, even as operators increasingly rely on advanced studies and targeted development to unlock additional value from established fields.
Italian engineering and energy services giant Saipem has confirmed plans to restart operations on its Perro Negro 7 jackup rig in Saudi Arabia, marking a positive signal for the recovery of offshore drilling activity in the Middle East.
The rig is scheduled to resume work in January 2026 after a temporary suspension.
Originally built in 2008, the Perro Negro 7 operates under a long-term contract awarded by Saudi Aramco in 2011. This agreement was extended in June 2023 for an additional 10 years, underlining Aramco’s continued confidence in Saipem’s offshore capabilities. Operations were paused for a 12-month period in 2024, but Saipem confirmed that the suspension will be fully recovered at the end of the contract, extending its duration until 2034.
Designed for challenging offshore environments, the jackup rig is capable of operating in water depths of up to 115 metres and drilling wells reaching 9,100 metres. It is equipped with advanced technologies that enhance operational efficiency, workplace safety and environmental compliance, aligning with increasingly stringent industry standards.
Saipem views the restart of Perro Negro 7 as a clear indication of renewed momentum in Middle East offshore drilling, a region the company continues to prioritise as a strategic growth market. The move reflects broader industry trends pointing to rising upstream investment and sustained demand for high-specification offshore rigs across the Gulf.
With Saudi Arabia pushing ahead with energy development plans, Saipem’s resumed operations further reinforce its position as a key player in the region’s offshore oil and gas sector.
Saipem, a global engineering and construction leader, has been awarded two offshore contracts in Saudi Arabia worth a combined US$600mn under its existing Long-Term Agreement with Saudi Aramco.
The first contract, CRPO 162, spans 32 months and covers the engineering, procurement, construction, and installation (EPCI) of around 34 km of 20” and 30” pipelines, along with related works on topside structures at the Berri and Abu Safah oil fields.
The second contract, CRPO 165, runs for 12 months and includes subsea interventions at the Marjan field, as well as the EPC of 300 m of onshore pipeline and associated tie-ins. Saipem said it will deploy its construction vessels already operating in the region to execute the offshore work.
Fabrication for both projects will take place at Saipem’s Saudi facility, Saipem Taqa Al-Rushaid Fabricators Co. Ltd. in Dammam, a move designed to further develop local industry capabilities.
Saipem said the contract awards reinforce its position in Saudi Arabia and strengthen its long-term partnership with Aramco.
This latest project is part of Saipem’s broader strategy to expand its regional footprint, leveraging both local fabrication and offshore expertise to deliver complex oil and gas infrastructure efficiently.
Turkey is planning to finalise an agreement with Syria’s new government on maritime cooperation and offshore exploration and production (E&P), the country’s energy minister said this week.
Speaking to GDH, Energy Minister Alparslan Bayraktar said the deal would allow Turkish oil and gas companies to begin exploring for energy resources off Syria’s coast, with hopes to conclude an agreement sometime next year. The arrangement is expected to build on an existing framework agreement, with results likely emerging further down the line, he added.
Turkey’s state energy firm, TPAO, currently operates two seismic ships and six drillships, including four active vessels – Fatih, Yavuz, Kanuni and Abdülhamid Han – alongside two recently acquired vessels, West Dorado and West Draco, which are slated for restoration. While the company’s recent operations have focused on productive Black Sea wells, Turkey also maintains a strong interest in waters off Northern Cyprus, where disputes with the Nicosia government continue. Drilling in Syrian waters would expand these regional opportunities and strengthen Turkey’s presence in the Eastern Mediterranean. Any future revenues could also provide the Syrian government with additional resources to support economic stabilisation and post-war reconstruction efforts.
The Eastern Mediterranean is widely recognised as one of the world’s most promising regions for offshore natural gas. Recent activity underlines the sector’s potential: this week, Chevron, Shell and NewMed Energy announced plans to begin ordering production equipment for the Aphrodite field in Cypriot waters, which could yield up to 800 million cubic feet of gas per day. A final investment decision on the project is expected in 2027. The development brings Cyprus closer to joining Egypt and Israel in exploiting major regional gas reserves, signalling a new phase in the Eastern Mediterranean’s energy landscape.
ADNOC has secured US$11bn in structured financing from a consortium of 20 banks to monetise midstream assets linked to its Hail and Ghasha offshore gas project, according to The National.
The Abu Dhabi energy company said it, together with its concession partners Italy’s Eni and Thailand’s PTT Exploration and Production Public Company, opted for a non-recourse financing structure. Under this arrangement, lenders are repaid directly from the project’s future cash flows rather than from the balance sheets of the concession holders.
To enable the transaction, gas processing facilities associated with the Hail and Ghasha concessions were carved out from the upstream project. The financing was reported to be around 1.5 times oversubscribed, reflecting strong interest from regional and international lenders, particularly from Asia.
Hail and Ghasha are among the UAE’s largest offshore gas developments and are expected to produce up to 1.8bn standard cubic feet per day of gas. First gas is anticipated by the end of the decade. A source close to the transaction told The National that the deal was structured as pre-export finance and arranged several years ahead of production.
Chinese lenders, including Industrial and Commercial Bank of China, Agricultural Bank of China and Bank of China, participated in the financing, alongside seven UAE-based banks. The funds will be made available in staggered phases to support construction of gas processing infrastructure, including sulphur separation facilities required for the ultra-sour gas produced from the fields.
Russia’s Lukoil exited its 10% stake in the Hail and Ghasha concession last month, with ADNOC subsequently absorbing the holding. The company said the financing enabled it to secure upfront value at competitive rates while accelerating development plans.
Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and managing director and group chief executive of ADNOC, said Hail and Ghasha would play a central role in the company’s long-term gas strategy and was on track to deliver new gas supplies for customers.
ADNOC added that the financing model could be replicated across other large-scale greenfield projects. Across the region, national oil companies have increasingly turned to monetising midstream assets to unlock capital while retaining ownership. Similar transactions have been completed by Saudi Aramco in recent years, including multibillion-dollar pipeline and gas processing deals with global infrastructure investors.
Offshore oil development plans at Benin’s Sèmè field have suffered a setback after technical complications disrupted drilling operations, forcing a delay to the long-anticipated production start-up.
Akrake Petroleum, a wholly owned subsidiary of Lime Petroleum Holding, which itself is 89.74% owned by Singapore-based Rex International Holding, confirmed that the challenges have pushed first oil beyond the previously targeted timeline.
The issues emerged during drilling at the first of three planned wells at the Sèmè field, located offshore Benin in Block 1. Akrake Petroleum, the field operator, commenced drilling in August 2025 using Borr Drilling’s Gerd jack-up rig, a modern offshore drilling unit supplied by Crystal Offshore Middle East. The campaign was designed to restart production at the mature shallow-water field.
Block 1 spans approximately 551 square kilometres, with water depths ranging between 20 and 30 metres, making it suitable for jack-up rig operations. However, in its latest operational update, Rex International Holding acknowledged that the drilling programme has encountered “further significant technical issues.” While drilling activities are ongoing as teams work to resolve the problems, the company has confirmed that oil production will no longer begin in 2025.
Akrake Petroleum Benin holds a 76% working interest in the Sèmè field and serves as operator, playing a central role in the redevelopment of one of West Africa’s historic offshore oil assets. Prior to the drilling setbacks, key infrastructure milestones had been progressing as planned. The mobile offshore production unit (MOPU) was scheduled for timely delivery, while the floating storage and offloading (FSO) vessel underwent dry docking following a contract awarded in April, both aligned with a Q4 2025 start-up.
The Sèmè field has a long and notable history. Originally discovered by Union Oil in 1969, it was later developed by Norway’s Saga Petroleum. Between 1982 and 1998, the field produced around 22 million barrels of oil before operations were halted amid weak oil prices in the late 1990s.
Despite the current offshore drilling challenges, the Sèmè redevelopment remains a strategically important project for Benin’s energy sector and for Rex International’s African portfolio, as stakeholders look ahead to a revised production timeline.
In line with its ambitions, Gulf Keystone, a leading independent operator and producer in the Kurdistan Region of Iraq, has managed to record a gross average production of around 41,400 bopd in 2025
The company's approach involved transitioning from trucking sales to pipeline exports via the Iraq-Türkiye Pipeline so that volumes can be quickly ramped up to attain full well capacity.
Well workover is currently underway to bring back two wells online, which in turn, will result in increased production rates by early 2026. A three-week shutdown is also in plans next year to ensure safety upgrades at PF-2, with equipment tie-ins to be conducted as well. Engineering design work is on track for the installation of PF-2 water handling in 2027.
Jon Harris, Gulf Keystone’s chief executive officer, said, "2025 has been a milestone year for the Company after pipeline exports from the Shaikan Field were successfully restarted in September following a hiatus of over two and a half years. Liftings allocated to Gulf Keystone and other IOCs commenced in November and we are pleased to have recently received our first payment. The process as outlined in the interim exports agreements is working and we look forward to a return to full PSC entitlement at international prices following the international independent consultant’s review.
"We are on track to meet our production, capital and cost guidance for 2025. Strong operational and financial performance in the year has enabled us to safely advance key projects while distributing US$50mn of dividends to shareholders. Cumulative production from the Shaikan Field recently surpassed 150 million barrels, underlining the scale and quality of the asset. Looking ahead to 2026, we are expecting a base work programme focused on the progression of current projects. We are also embedding optionality to restart drilling and review disciplined field development, contingent on consistent exports payments at international prices. We are excited about a potentially transformational year for the company and remain focused on executing for our shareholders."
QatarEnergy has signed a production sharing agreement (PSA) for shallow-water Block S4 offshore Guyana, formalising its participation in the block awarded during the country’s 2022 licensing round.
Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and President and CEO of QatarEnergy, said the agreement aligns with the company’s strategy to expand its international upstream footprint.
“We are pleased to secure this exploration block in Guyana, further building on the strategy to expand our global upstream exploration activities,” he said.
“I would like to thank the government of the Cooperative Republic of Guyana and our partners in the block for their valued support and cooperation. We look forward to working together to deliver on our exploration objectives.”
Under the PSA, TotalEnergies will operate the block with a 40% stake. QatarEnergy will hold 35%, while Petronas will take the remaining 25%.
Block S4 spans 1,788 sq km and lies around 50–100 km offshore Guyana, in shallow waters ranging from 30–100 metres. The agreement further strengthens QatarEnergy’s growing presence in the Americas’ exploration landscape.
Saudi Aramco has deepened its long-standing relationship with the United States by signing 17 new memoranda of understanding and agreements worth more than US$30bn, marking another significant step in its strategy to broaden global partnerships and support long-term growth.
These latest commitments span a wide range of sectors, from liquefied natural gas (LNG) and advanced materials to financial services and industrial supply chains, reinforcing Aramco’s position at the centre of global energy and technology collaboration.
The new deals build on the company’s earlier announcement in May 2025, when Aramco unveiled 34 MoUs and agreements with a combined potential value of around US$90bn. Together, the partnerships announced this year now approach an impressive US$120bn, reflecting a sharp expansion of its collaborative pipeline with American companies.
A major emphasis of the new agreements lies in LNG development. Aramco signed an MoU with MidOcean Energy linked to potential investment in the Lake Charles LNG project on the US Gulf Coast. The company is also assessing opportunities for cooperation with Commonwealth LNG on its liquefaction project in Louisiana, including discussions involving potential LNG and gas purchases through Aramco Trading. These moves highlight the Saudi energy giant’s increasing interest in global LNG markets as demand continues to evolve.
Aramco also strengthened ties with leading US suppliers such as SLB, Baker Hughes, McDermott, Halliburton, NESR, KBR, Flowserve, NOV, Worley and Fluor. These agreements reflect ongoing requirements across the company’s upstream and downstream operations, ensuring continued access to essential materials, engineering services and procurement support.
In the field of advanced materials, Aramco extended its existing MoU with Syensqo to examine opportunities for localising the production of carbon fibre and composite materials, a sector seen as increasingly important for industrial innovation and lightweight manufacturing.
Financial services were another key focus. Wisayah, Aramco’s investment arm, entered into asset management and investment agreements with Loomis Sayles, Blackstone and PGIM, while Aramco reached a strategic partnership with J.P. Morgan centred on cash account management.
Amin H. Nasser, Aramco President and CEO, said,“Since the 1930s, US firms have played a major role in supporting the company’s success… We expect the multi-billion dollar MoUs and agreements announced today to act as a springboard for further progress, strengthening Aramco’s longstanding legacy of collaboration with American counterparties and unlocking new value creation opportunities that promote innovation and growth."
The Bouri Gas Utilisation Project development in Libya that aims valourising the associated gas from the Bouri field will involve work class ROVs performing offshore touch down monitoring.
Specialised vessels by Next Geosolutions called NG Worker and NG Surveyor will be deployed for the operations in line with around €8.5mn-worth survey and support-to-installation contract awarded by Saipem.
A significant project including complex construction and pipelines delivery, Saipem will be handling the installation of a new Gas Recovery Module, along with a series of upgrades and enhancements to the existing infrastructure. Its contract with Next Geosolutions include optional extensions following operations in Q4 2025.
NextGeo, which mainly deals in renewables and subsea power cables, is excited to have stepped into the oil & gas segment with this significant project from North Africa. It is an addition to another major contract from the same project that was landed last July by the company's affiliate Rana Subsea. Valued at approximately €62.6mn, the contract mandates Rana Subsea to provide specialised subsea services and installation support operations, extending through Q2 2026.
Giovanni Ranieri, CEO of Next Geosolutions, said, “The award of these new contracts with Saipem marks a significant step forward in the growth path of our Group. The joint presence of NextGeo and Rana Subsea in the same project clearly demonstrates the full complementarity of our expertise and our ability to operate in synergy across different yet closely integrated activities, positioning ourselves as a single, trusted partner for the development of complex projects. This is a collective achievement that strengthens our Group identity and represents a natural evolution towards an increasingly integrated, competitive, and operationally excellent model.”
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