meed-logo

line1 line2 line3
SIGN IN / REGISTER

BP in oil and gas talks across the Middle East

26 November 2024

Register for MEED's 14-day trial access 

UK-headquartered BP is engaged in oil and gas talks with countries across the Middle East as it looks to boost upstream production, according to the company’s chief executive, Murray Auchincloss.

Speaking at a conference in London, he said: “We’re back accessing the Middle East.”

He added: “We’re in advanced conversations in Iraq and we continue to talk to Abu Dhabi, Oman, Kuwait, Iraq – for further opportunities … let’s see how we do in those places.”

Commenting on the country’s potential return to the Kirkuk region in northern Iraq, he said: “I hope we come to an agreement with the nation fairly soon. I would like to see that by the end of February, but let’s see how that goes.

“It’s five domes, 20 billion barrels yet to produce [and] very competitive terms internationally now – and a government that is going to work with you and a much-stabilised security situation as well.”

In August, BP signed a memorandum of understanding (MoU) with the government of Iraq to develop oil fields in the Kirkuk region.

At the time, BP said that it had signed a non-binding agreement to “negotiate a material integrated redevelopment programme for the Kirkuk region”.

It said the scope of work would include oil and gas investment, power generation and solar, and “wider exploration activities”.

Plans in Iraq

The MoU signed for Kirkuk includes the Baba and Avanah domes and three adjacent fields – Bai Hassan, Jambur and Khabbaz – in Federal Iraq, which are operated by Iraq’s North Oil Company (NOC).

In its statement, BP said: “Rehabilitation of existing facilities, where required, and the construction of new facilities – including gas expansion projects – together with a drilling programme at the Kirkuk fields, has the potential to stabilise production and reverse decline, returning production from this nationally important oil field to a growth path.

“The integrated redevelopment programme has the potential to bring opportunity and investment into the Kirkuk region – unlocking future downstream growth while also bringing tangible benefits to the local population, with job creation and local supply requirements.”

In 2020, BP pulled out of Iraq’s giant Kirkuk oil field after its $100m exploration contract expired with no agreement on the field’s expansion, dealing a blow to Iraq’s hopes of increasing its oil output.

The move came as Western energy companies reassessed their operations in Iraq amid political turmoil following months of anti-government protests and a flare-up in tensions between the US and Iran in the country.

The UK-headquartered oil company’s 2013 service contract expired at the end of 2019.

Kirkuk was discovered in 1927 and marks the birthplace of Iraq’s oil industry. BP and Iraq’s Oil Ministry signed the letter of intent to study the development of the field in 2013, with a planned spending of $100m.

BP’s work included a three-dimensional seismic study of the field’s reservoir to expand on the existing 2D data.

BP already has a 50% stake in Iraq’s Rumaila oil field near the southern border with Kuwait, where it has operated for over a century.

Kuwait investments

The London-based company is also considering investing in Kuwaiti fields. In March 2016, BP signed a framework deal with state-owned Kuwait Petroleum Corporation (KPC), paving the way for joint investment and increased cooperation on oil and gas projects.

A statement released by BP at the time said both companies had agreed “to explore possible joint opportunities for investment and cooperation in future oil, gas, trading and petrochemicals ventures”.

The agreement involves collaborating on enhancing oil and gas recovery from Kuwait’s existing resource base.

It includes cooperation on studying opportunities for joint investment in future hydrocarbons exploration both inside Kuwait and globally, as well as possible future trading deals, including trading liquefied natural gas (LNG).

Cooperation on midstream and petrochemicals projects will also be covered by the deal, including potentially deploying BP’s proprietary paraxylene technology as part of KPC’s chemicals schemes.

BP was one of the founders of the original Kuwait Oil Company (KOC), which first discovered oil at Kuwait’s Burgan field in 1938.

In 1992, BP was the first oil company to be invited by the Kuwaiti government to assist in the redevelopment of Kuwait’s oil industry.

BP currently participates in the Greater Burgan field, which accounts for about 50% of Kuwait’s total output.

It participates through an enhanced technical service agreement (ETSA) with KOC, under which it provides support to sustain production, develop capabilities and deploy new technologies.

In 2018, BP signed a five-year technical services agreement with Kuwait Integrated Petroleum Industries Company (Kipic) to develop and implement an operational readiness programme for the Al-Zour refining complex and LNG terminal – some of the largest capital projects in Kuwait.

The oil refining facility reached mechanical completion in 2021. However, several factors prolonged the commissioning phase, including the Covid-19 pandemic and related measures designed to reduce the spread of the virus.

In May this year, Kuwait inaugurated the Al-Zour refinery with a ceremony to mark its completion.

The $2.9bn Al-Zour LNG facility came online in July 2021.

Expansion in Oman

In Oman, production from phase one of Block 61, Khazzan, started in 2017. In October 2020, production from phase two, Ghazeer, started ahead of schedule.

Combined, Khazzan and Ghazeer produce 1.5 billion cubic feet of gas a day and more than 60,000 barrels a day of associated condensate.

BP has been an investor in Abu Dhabi since 1939. It has partnerships in oil and LNG in Abu Dhabi and has a lubricants, aviation fuel and trading ‎businesses that is managed from Dubai.‎

In Abu Dhabi, BP’s interests include joint-venture partnerships with Abu Dhabi National Oil Company ‎‎(Adnoc) and shareholdings in Adnoc Onshore (BP’s share is 10%); Adnoc LNG (BP’s share is 10%); and the ‎National Gas Shipping Company (BP’s share is 10%).

Before becoming the CEO of BP, Auchincloss was interim CEO from September 2023 to January 2024 after the sudden resignation of Bernard Looney due to failing to reveal relationships with colleagues.

In October, it was reported that BP had abandoned a target to cut oil and gas output by 2030 as CEO Murray Auchincloss scaled back the firm’s energy transition strategy to regain investor confidence.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12999601/main0657.jpg
Wil Crisp

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Read the March 2026 MEED Business Review

    3 March 2026

    Download / Subscribe / 14-day trial access

    Saudi Arabia’s priorities have shifted over the past decade, with officials at February’s Private Sector Forum confirming a reprioritisation since 2016 that includes postponing the 2029 Asian Winter Games in Trojena and scaling back projects such as The Line in response to global economic uncertainty.

    In 2026, the Public Investment Fund’s role as the main driver of development is shifting towards greater private sector involvement, a transition examined by MEED editor Colin Foreman in the latest issue of MEED Business Review.

    March’s market focus is on Egypt, where the country’s crisis mode is giving way to a cautious revival. 

    This edition also reports that the region’s downstream sector may face subdued project spending in 2026 due to flattening demand and weak margins.

    In the latest issue, we disprove the Ramadan slowdown story, present exclusive leadership insight from Jacobs on delivering Saudi Arabia’s next phase of rail growth and outline some important lessons learnt from a power plant decommissioning. We also talk to senior executives at Enersol, Lamar Holding and Metito. 

    We hope our valued subscribers enjoy the March 2026 issue of MEED Business Review. 

     

    Must-read sections in the March 2026 issue of MEED Business Review include:

    > AGENDA: Saudi Arabia’s private sector picks up the baton

    > RAMADAN: Data disproves the Ramadan slowdown story

    INDUSTRY REPORT:
    Downstream
    > Chemicals producers look to cut spending
    > Global petrochemical project capex set to rise until 2030

    > LEADERSHIP: Delivering Saudi Arabia’s next phase of rail growth

    > POWER: Lessons learnt from a power plant decommissioning

    > INTERVIEW: Abu Dhabi’s Enersol charts acquisitions path

    > INTERVIEW: Lina Noureddin, CEO of Lamar Holding, on the evolving PPP landscape

    > INTERVIEW: Contract award marks Metito’s return to municipal projects

    > MARKET FOCUS EGYPT: 
    > COMMENT: Egypt’s crisis mode gives way to cautious revival
    > GOVERNMENT: Egypt adapts its foreign policy approach
    > ECONOMY & BANKING: Egypt nears return to economic stability
    > OIL & GAS: Egypt’s oil and gas sector shows bright spots
    > POWER & WATER: Egypt utility contracts hit $5bn decade peak
    > CONSTRUCTION: Coastal destinations are a boon to Egyptian construction

    > MEED COMMENTS: 
    >     Winter Games delay raises uncertainty for Saudi construction
    > Duqm petrochemicals revival provides fillip to Gulf projects market
    > Solar deals signal Saudi Arabia’s energy ambitions
    > Hydrogen bridge awaits bankable contracts

    > GULF PROJECTS INDEX: Gulf index leaps upward in 2026

    > JANUARY 2025 CONTRACTS: Middle East contract awards

    > ECONOMIC DATA: Data drives regional projects

    > OPINION: The war that (almost) no one wants

    > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15839736/main.gif
    MEED Editorial
  • Firms prepare Port of Duqm consultancy bids

    3 March 2026

    Oman’s Port of Duqm has issued tender notices inviting consultants to bid for two packages by mid-March.

    The scope of the first tender covers the consultancy services for inspection, scope preparation and supervision of the sewage treatment plant.

    The bid submission deadline is 18 March.

    The scope of the other tender includes the consultancy services for port marine traffic assessment/simulation and impact study.

    The bid submission deadline for this package is on 17 March.

    Both tenders were floated late last month.

    The Port of Duqm is a deepwater, multipurpose port on Oman’s Arabian Sea coast, developed within the Special Economic Zone at Duqm (Sezad).

    Its location outside the Strait of Hormuz is a key advantage, positioning Duqm as a strategic alternative gateway for cargo moving between the Gulf, the Indian subcontinent and East Africa, and supporting Oman’s push to grow non-oil trade and port-led industry.

    Designed to handle a mix of cargoes, including containers, dry bulk, breakbulk and liquid bulk, the port forms part of a wider Duqm complex that also includes a major dry dock and large industrial land allocations for energy, manufacturing and logistics projects.

    As the port and SEZ expand in phases, consultancy tenders typically reflect the next steps in delivery and operations, covering engineering and technical studies, commercial assessments, and readiness planning tied to new terminals and industrial tie-ins.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15840397/main.jpg
    Yasir Iqbal
  • Diriyah awards Pendry superblock package

    3 March 2026

     

    Saudi Arabian gigaproject developer Diriyah Company has awarded an estimated SR2.5bn ($666m) contract to build the Pendry superblock package in the second phase of the Diriyah Gate development (DG2).

    The contract was awarded to the local firm Saudi Constructioneers.

    The Pendry superblock encompasses the construction of a hotel, known as the Pendry Hotel, along with residential and commercial assets.

    The project will cover an area of 75,365 square metres (sq m) and is located in the northwestern district of the DG2 area.

    Contractors had submitted final proposals for a contract in September last year, as MEED reported.

    The tender was issued in June last year.

    The latest contract follows the Diriyah Company’s award of a SR717m ($192m) contract for the construction of the One Hotel, located in the Diriyah Two area of the masterplan.

    The contract was awarded to the joint venture of local firm BEC Arabia and Indian contractor Ashoka Buildcon.

    The project has a gross floor area of over 31,000 sq m.

    The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it will cover 14 square kilometres and combine 300 years of history, culture and heritage with hospitality facilities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15778187/main.jpg
    Yasir Iqbal
  • Local firm to develop $598m Muscat tourism project

    3 March 2026

    Oman’s Ministry of Heritage & Tourism has signed an agreement with local firm Sorouh Al-Qurm Real Estate Company to build an integrated tourism complex in the Al-Qurm area of Muscat.

    The project will be developed with a total investment estimated at RO230m ($598m).

    Planned across more than 165,000 square metres (sq m), the development will include two four-star hotels offering over 400 rooms, alongside leisure components such as an indoor games hall and trampoline attractions.

    The site will also incorporate commercial spaces and freehold residential units, among other amenities.

    The agreement was signed by Sayyid Ibrahim Bin Said Al-Busaidi, minister of heritage and tourism, and Khaled Khudair Mashaan, chairman of Al-Argan International Real Estate Company, who signed as the authorised representative for Sorouh Al-Qurm Real Estate Company.

    GlobalData forecasts that the Omani construction industry will expand at an average annual growth rate of 4.2% from 2025 to 2028.

    Growth in the country will be supported by rising government investments in renewable energy and transport infrastructure, as well as in the housing sector, as part of the Oman Vision 2040 plan.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15839476/main.jpg
    Yasir Iqbal
  • Firms to build Jeddah Islamic port logistics zone

    3 March 2026

    The Saudi Ports Authority (Mawani) has signed an agreement with Dammam-headquartered Sultan Logistics to develop a new logistics zone at Jeddah Islamic Port’s Al-Khumra site.

    According to a statement posted by Mawani on X, the project will cover about 200,000 square metres and represents an investment of SR250m ($66m).

    Planned facilities include warehouses, designated areas for storing and servicing dry and refrigerated containers, and a re-export section.

    Mawani said the development is intended to strengthen the port’s position on the Red Sea by upgrading service quality, supporting private sector participation and contributing to Saudi Arabia’s broader economic diversification goals.

    Jeddah Islamic Port currently operates 62 multipurpose berths and can handle up to 130 million tonnes a year.

    The latest agreement follows Mawani’s April 2025 signing of more than SR500m ($133m) in agreements with local firms to develop two logistics parks at King Abdulaziz Port in Dammam, as reported by MEED.

    In a statement, Mawani said that in 2024, it launched and inaugurated eight logistics parks with an estimated investment of about SR3bn ($800m).

    The firm said: “These investments are part of the broader development of over 20 logistics centres under Mawani’s supervision across Saudi ports, with total investments over SR10bn ($2.6bn).”

    GlobalData expects the Saudi construction industry to record an annual average growth rate of 5.2% in 2025-28, supported by investments in transport, electricity, housing and tourism infrastructure projects, as well as the $850bn-plus gigaprojects programme.

    The infrastructure construction sector is expected to grow at an average rate of 6% in 2025-28, supported by government investments in rail, dams and road infrastructure projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15838212/main.gif
    Yasir Iqbal