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
  • Jordan starts international stadium construction works

    18 June 2026

    Register for MEED’s 14-day trial access 

    Jordan has started preliminary excavation and site preparation work at its Al-Hussein Bin Abdullah II International Stadium, located east of the capital city of Amman.

    The project is part of the first phase of the Amra City development master plan.

    The development is being implemented by Jordan Cities & Facilities Development Company, a Jordan Investment Fund-owned company.

    The main works are expected to begin early next year, with the stadium slated for completion in 2029.

    The project will cover an area of about 1 million square metres and the stadium will have a capacity of 50,000 spectators.

    The stadium is being built within the Amra City development, which is located about 40 kilometres (km) from downtown Amman and 35km from Zarqa City and Queen Alia International airport.

    The project forms part of Jordan's Economic Modernisation Vision (EMV) 2023-25.

    The EMV – Amman’s flagship reform programme – aims to increase real income per capita by an average of 3% annually, create 1 million jobs, and more than double the country’s GDP over the next decade.

    The strategy envisages a leading role for the private sector, which is expected to account for 73% of the estimated $58.8bn investment required.

    To achieve these targets, a substantial pipeline of public-private partnership (PPP) projects is planned in sectors including water desalination, school construction, clean energy, green hydrogen, transport and road infrastructure.

    Last year, the PPP unit at the Investment Ministry said it was targeting seven key PPP projects in 2025.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17325757/main.png
    Yasir Iqbal
  • Chinese firms win $506m Saudi housing project deals

    18 June 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Municipalities & Housing Ministry has awarded contracts worth over SR1.9bn ($506m) to Chinese contractors for two residential developments in the kingdom.

    The first contract has been awarded to China Architectural Construction Corporation for the construction of 2,010 housing units at the Al-Ruba residential project in Riyadh. The contract value is SR875m ($233m).

    The other contract has been awarded to China State Construction Engineering Corporation for the Al-Rasha Al-Faisaliah residential project in Dammam. The project comprises 2,426 housing units, and the contract value is over SR1bn ($266m).

    The contracts were announced during the official visit of Majed Al-Hogail, Saudi Municipalities & Housing Minister, to China, where he also signed six memorandums of understanding (MoUs) between Saudi and Chinese firms. The MoUs aim to accelerate housing development, localise advanced construction technologies and enhance public-private sector collaboration.

    MEED reported in 2020 that Riyadh planned to oversee the development of more than 1 million homes by 2025 to meet growing demand in the kingdom.

    By 2030, the Saudi capital aims to more than double its population, from 7-8 million to 15-20 million, and to become one of the 10 wealthiest cities in the world.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17322994/main.png
    Yasir Iqbal
  • Diriyah awards $727m Waldorf Astoria superblock deal

    17 June 2026

     

    Saudi gigaproject developer Diriyah Company has awarded a SR2.7bn ($727m) contract for the main construction works on the development’s Waldorf Astoria superblock.

    The contract was awarded to the joint venture of Hassan Allam Construction Saudi and UCC Saudi, the local branch of Qatar’s Urbacon Holding.

    The Waldorf Astoria superblock is a mixed-use development comprising a Waldorf Astoria hotel, Waldorf Astoria-branded residences, commercial and residential facilities, and office space.

    The Waldorf Astoria hotel will feature 200 keys, while the residential component will comprise 47 branded residences.

    The project is located on the Grand Boulevard South and Northern Arterial Road in the Boulevard Northwestern district at Diriyah Gate 2. 

    Diriyah Company tendered the contract in November last year, with submissions due in January, as MEED reported.

    Diriyah Company Group CEO Jerry Inzerillo said: “We are delighted to announce this latest major construction contract for the Waldorf Astoria superblock as we continue to progress at pace across the Diriyah development area. The Waldorf Astoria will be a world-class addition to our growing portfolio of globally renowned hospitality brands, further strengthening Diriyah’s appeal as a globally significant destination that offers world-class hospitality and lifestyle experiences.

    “Together with our partners, we look forward to delivering another landmark development that supports the kingdom’s Vision 2030 ambitions and contributes to the continued growth and success of Diriyah.”

    Hassan Allam, chairman and CEO of Hassan Allam Holding, said: “We are proud to support the development of one of the kingdom’s most ambitious and transformative destinations and to continue our partnership with Diriyah Company in bringing its vision to life.

    “Drawing on more than 90 years of experience across the Mena region, we remain committed to delivering the highest standards of quality and excellence on landmark projects that are helping shape the kingdom’s future.”

    Ramez Al-Khayyat, UCC Holding president and group CEO, said: “Being awarded this contract by Diriyah Company marks another important milestone in our growing partnership and reinforces our shared commitment to delivering world-class developments across the kingdom. This project builds on our ongoing collaboration in Diriyah, including the delivery of four luxury hotels and the Royal Diriyah Equestrian and Polo Club in Wadi Safar.

    “We value the opportunity to contribute once again to one of Saudi Arabia’s most ambitious and prestigious urban development destinations, supporting the vision of creating a world-class cultural, hospitality and lifestyle hub.”

    The latest award follows Diriyah Company’s award of an estimated SR730m ($195m) construction contract for civic quarter buildings within the Diriyah development to local contractor Al-Rashid Trading & Contracting Company (RTCC).

    In April, Diriyah announced a SR1.84bn ($490m) construction contract to build the Saudi Arabia Museum of Contemporary Art (SAMoCA) within the Diriyah development. The contract was awarded to a consortium of Egyptian contractor Hassan Allam Construction Saudi and Saudi Arabia’s Albawani.

    In March, Diriyah Company awarded an estimated SR2.5bn ($666m) contract to build the Pendry superblock in the DG2 area.

    The Pendry superblock includes the construction of the Pendry Hotel alongside residential and commercial assets. The package will cover 75,365 square metres and is located in the northwestern district of the DG2 area.

    The previous month, Diriyah Company also awarded a SR717m ($192m) contract for the construction of the One Hotel, located in the Diriyah Two area of the masterplan, with a gross floor area of more than 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/17287718/main.jpg
    Yasir Iqbal
  • AHS Properties acquires Shangri-La hotel for $300m

    17 June 2026

    Dubai-based real estate developer AHS Properties has announced the acquisition of the Shangri-La hotel for AED1.1bn ($300m), marking one of the largest single-asset real estate transactions in recent years.

    AHS Properties acquired the hotel from local firm Mismak Asset Management.

    The Shangri-La Hotel is a 43-storey, 200-metre tower located on Sheikh Zayed Road. Completed in 2003, it was among the first five-star hotels to open along the corridor.

    The acquisition expands AHS Properties’ portfolio, which includes AHS Tower, a Grade A commercial development on Sheikh Zayed Road, and AHS City, the company’s master-planned mixed-use community on the same corridor.

    In a statement, AHS Properties said that AHS Tower, AHS City and the Shangri-La hotel form a strategic “vertical corridor” platform, representing a significant portion of the company’s AED50bn development pipeline through the end of 2026.

    “The transaction reflects AHS Properties’ strategy of deploying capital into high-quality, supply-constrained assets,” the statement added.

    According to the Dubai Land Department, Dubai’s real estate sector recorded AED252bn in transactions in Q1 2026.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17310101/main.jpg
    Yasir Iqbal
  • UAE moves to clear the path for recovery

    17 June 2026

    Commentary
    Colin Foreman
    Editor

    More than three months after the conflict began to disrupt business across the Gulf, the UAE is moving to resolve the technical challenges that the economy faces as it shifts towards recovery.

    The insurance gap has been a key obstacle to the recovery of aviation and tourism. Several countries continue to maintain advisories against travel to the Gulf, making it difficult or impossible for visitors to obtain conventional cover for trips to or through the region. The concern is twofold: one, becoming stranded should hostilities resume, and two, not being able to secure medical insurance. Both Emirates and Etihad have now moved to address that directly, offering insurance to passengers flying to or through their respective home hubs. The Etihad scheme, backed by DCT Abu Dhabi and underwritten by Daman, will run from July to December and covers eligible visitors for up to 15 days.

    The second area of concern is real estate. Anecdotally, buyers in sectors economically exposed to the conflict have found it increasingly difficult to obtain mortgage financing, a problem that has become especially acute at the point of handover. The recently signed partnership between Dubai Holding Real Estate and Commercial Bank of Dubai is designed to ease that pressure. The programme opens financing from the 30% construction stage once buyers have met a 50% payment threshold, giving purchasers earlier visibility of their borrowing capacity and reducing uncertainty during the off-plan purchase process.

    Taken together, the two initiatives show that the UAE is proactively addressing the technical hurdles as and when they arise. As the recovery gathers momentum, more challenges will surface. The capacity and willingness to address them as they emerge will be crucial to a meaningful recovery.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17306586/main.jpg
    Colin Foreman