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
  • PPP schemes to drive Jordan construction

    13 June 2025

     

    There is cause for optimism in Jordan’s construction and infrastructure sectors after the government took steps to implement its Economic Modernisation Vision (EMV) 2023-25.

    The EMV – Amman’s flagship vehicle for its reform proposition – aims to increase average real income per capita by 3% a year, create 1 million jobs and more than double the country’s GDP over 10 years. The programme calls for the private sector to take the lead, accounting for 73% of the total $58.8bn of required investment.

    For the vision to be realised, a large pipeline of public-private partnership (PPP) schemes is needed, covering areas such as water desalination, school construction, clean energy, green hydrogen, transport improvement and road construction.

    Earlier this year, the PPP unit at Jordan’s Ministry of Investment announced that it is targeting seven key PPP projects in 2025.

    Construction projects

    One of the primary components of the PPP initiative is the scheme to build 17 schools under a PPP model. Being overseen by the Ministry of Education, the scheme will be developed using a design, build, finance, operate, maintain and transfer model and will be undertaken in several phases across the country.

    The UAE-backed Marsa Zayed mixed-use project in Aqaba is the other large-scale construction scheme that has made a head start this year and is expected to provide opportunities in the short term. In February this year, Abu Dhabi’s AD Ports Group selected Dubai-based real estate developer Mag Group to lead the first phase of the project, which is called Riviera Heights.

    The scheme will be developed as a beachfront resort and residential community on the Red Sea coast in Aqaba and will cover an area of 3.2 million square metres. The first phase comprises four residential towers, a marina with 1,260 residential and 117 retail units, a hotel and hotel apartments with a beach club, an old souq marketplace with 50 retail shops, a yacht club and a visitors’ centre. It also includes the restoration of Aqaba’s minaret.

    The other major project progressing in Jordan is the second phase of the Abdali mixed-use project in Amman. In May, the client announced that it had started the infrastructure work for the second phase, paving the way for the project to move forward. 

    The second phase is expected to include constructing a multi-use conference centre that can accommodate 25,000 people, as well as two towers housing hotels, residential apartments, commercial centres and advanced medical facilities.

    Infrastructure improvements

    Jordan is also developing some major infrastructure schemes in the country, most on a PPP basis. The most prominent is the construction of a phosphate railway line, which is being developed by the UAE’s Etihad Rail.

    The detailed study on the railway alignment and requirements for handling potash and phosphate is expected to be completed by the end of this year, followed by the main contract tenders early next year.

    In September last year, Etihad Rail announced that it had signed a memorandum of understanding worth $2.3bn with Jordan’s Transport Ministry and local companies to develop the project on a build, operate and maintain basis.

    The other significant project out in the market is the new silica terminal in Aqaba. In May, Jordan’s Aqaba Development Corporation set 25 May as the deadline for firms to express interest in developing the project. 

    The project will be developed on a build, operate and transfer (BOT) basis with a 20-year concession period.

    For airports, a key move came in February, when Jordan extended Airport International Group’s BOT concession of Queen Alia International airport until 2039. The agreement is a crucial step in securing long-term investments in the airport’s infrastructure, expansion and operations.

    Some of the key projects that will be undertaken to boost the airport’s passenger capacity to 18 million annually include installing nine security gates, upgrading the water supply, enhancing security checkpoints, developing a solar farm and conducting studies for runway rehabilitation.

    Another major project that is currently in the market is the construction of a light rail between Amman and Zarqa, which will extend to Queen Alia International airport. 

    In July last year, Jordan’s Hejaz Railway Corporation issued a tender to conduct a feasibility study for the project. The rail line will have a length of about 65 kilometres and the capacity to transport 40,000-50,000 passengers daily.

    Other infrastructure PPP schemes that Jordan says it is negotiating this year include the development of the 15.82km-long King Abdullah II Road, the 14.7km-long Amman-Ajloun toll road, the rehabilitation and toll operation of the first segment of the 42km Amman Development Corridor, a bus rapid transit project and the King Hussein bridge land border crossing terminal project.

    On the back of these schemes, the short-term outlook for Jordan’s construction infrastructure market will be buoyed by a confluence of positive opportunities that promise to invigorate what have been largely dormant construction and infrastructure sectors in the past decade. 

    With the government’s commitment to large-scale infrastructure and construction projects, there is a renewed sense of optimism among investors and stakeholders. The anticipated influx of foreign direct investment, coupled with strategic partnerships in public-private ventures, is set to create a ripple effect that will stimulate job creation and enhance Jordan’s economy.

    MEED’s July 2025 report on Jordan also includes: 

    > ECONOMY: Jordan economy nears inflection point
    > GAS: Jordan pushes ahead with gas plans
    > WATER: Record-breaking year for Jordan’s water sector

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14065176/main.gif
    Yasir Iqbal
  • African Development Bank backs Egypt solar scheme

    13 June 2025

    Register for MEED’s 14-day trial access 

    The African Development Bank Group (AfDB) has approved a financing package worth up to $184.1m to support the development of the Obelisk solar photovoltaic (PV) project in Egypt’s Qena Governorate.

    The power project is the largest solar power plant in Africa and comprises a 1GW solar plant, along with a 200 megawatt-hour (MWh) battery energy storage system.

    The total estimated investment in the project will be more than $590m.

    The financing package includes $125.5m from AfDB’s ordinary resources, in addition to concessional funding of $20m from the Sustainable Energy Fund for Africa and $18.6m from the Canada-African Development Bank Climate Fund.

    An additional $20m is provided by the Clean Technology Fund under Climate Investment Funds, complemented by further investments from development finance institutions.

    The Obelisk project will encompass design, construction, operation and maintenance of a PV facility.

    The project has been granted a Golden Licence through Egypt’s Nexus of Water, Food and Energy (NWFE) platform due to its importance in addressing energy shortages and advancing the country’s energy transition efforts.

    Egypt’s Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat stated: “The Obelisk solar project is another important milestone for Egypt under the energy pillar of the NWFE programme, which has, since its launch in November 2022 at Cop27 in Sharm El-Sheikh, delivered 4.2GW of privately financed renewable energy investments, worth about $4bn, with the support of partners such as the Africa Development Bank.

    “The goal of NWFE’s energy pillar is to add 10GW of renewable energy capacity with investments of approximately $10bn and phase out 5GW of fossil fuel power generation by 2030.”

    The Obelisk project will be fully operational in Q3 2026 and is expected to produce 2,772GW of electricity annually. In early May, MEED reported that Norwegian renewable energy firm Scatec had commenced construction on the first phase of its 1.1GW Obelisk solar and 100MW/200MWh battery energy storage project.

    It is expected to reduce CO₂ emissions by around 1 million tonnes each year and create 4,000 jobs during the construction phase, with 50 permanent anticipated positions once operational.

    Egyptian Electricity Transmission Company will purchase all generated power from the project under a 25-year agreement.

    African Development Bank power, energy, climate and green growth vice-president Kevin Kariuki stated: “Obelisk is another landmark development under NWFE that leverages on Egypt’s and the African Development Bank’s leadership as well as commitment to harnessing the country’s renewable energy to enhance the resilience of the country’s energy supply to meet its fast-growing energy demand sustainably.

    “This project also contributes to Egypt’s ambition of producing 42% of its power generation capacity from renewable energy sources by 2030 while spurring economic growth and reducing greenhouse gas emissions.”

    In January 2025, the Mission 300 programme, an initiative launched by the World Bank and the AfDB, secured $8bn in funding pledges.

    The programme aims to supply electricity to 300 million people across Africa by 2030.

    READ THE JUNE 2025 MEED BUSINESS REVIEW – click here to view PDF

    Gulf accelerates AI and data centre strategy; Baghdad keeps up project spending, but fiscal clouds gather; Banking stocks rise despite lower global oil prices

    Distributed to senior decision-makers in the region and around the world, the June 2025 edition of MEED Business Review includes:

    > GULF PROJECTS INDEX: Gulf projects index leaps 4.3%
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14065059/main.jpg
  • UCC and Ashghal start 3D printing schools

    13 June 2025

    Register for MEED’s 14-day trial access 

    The local UCC Holding, in partnership with the Public Works Authority (Ashghal), has commenced the printing phase of the 3D Printed Schools Project.

    The initiative involves building two public schools, each spanning 20,000 square metres.

    UCC Holding has described it as the world’s largest construction project using 3D printing technology – reportedly 40 times bigger than the largest 3D-printed building constructed to date.

    The schools are part of the second package of the Qatar Schools Development Programme, delivered under a public-private partnership model, which includes 14 schools in total.

    The two schools are being designed as two-storey buildings on plots measuring 100 metres by 100 metres each.

    To achieve this scale, UCC Holding engaged COBOD, a 3D construction printing company based in Denmark, to supply two customised BODXL printers.

    Each printer measures 50 metres in length, 30 metres in width and 15 metres in height, approximately the size of a Boeing 737 hangar.

    After completing preparation, which included site development, equipment assembly and operational simulations, printing operations have now officially begun.

    UCC Holding has put together a 3D construction team comprising architects, civil engineers, material scientists and printer technicians.

    Over the past eight months, this team has conducted more than 100 full-scale test prints using a BOD2 printer at a dedicated trial site in Doha.

    In May 2025, the team completed training alongside COBOD engineers. The training covered printer operation, print sequencing, structural layering strategies and live quality control.

    The schools’ design is inspired by Qatar’s natural desert formations, with curved walls resembling sand dunes.

    The schools are expected to be completed by the end of 2025.

    Earlier this year, Ashghal began construction of the Qatar Sidra Academy project in Education City, which will accommodate nearly 1,800 students.

    READ THE JUNE 2025 MEED BUSINESS REVIEW – click here to view PDF

    Gulf accelerates AI and data centre strategy; Baghdad keeps up project spending, but fiscal clouds gather; Banking stocks rise despite lower global oil prices

    Distributed to senior decision-makers in the region and around the world, the June 2025 edition of MEED Business Review includes:

    > GULF PROJECTS INDEX: Gulf projects index leaps 4.3%
    To see previous issues of MEED Business Review, please click here

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14065048/main.jpg
  • Morocco appoints contractors for Casablanca stadium construction

    13 June 2025

    Register for MEED’s 14-day trial access 

    A joint venture of local contractors Travaux Generaux de Construction de Casablanca (TGCC) and Societe Generale des Travaux du Maroc (SGTM) has been awarded the $320m contract for the next stage of construction works for the Grand Stade Hassan II stadium, which will serve as one of the venues for the 2030 Fifa World Cup tournament.

    The two contractors submitted the only offer ahead of the tender deadline on 10 June.

    The contract duration will be 30 months from the start of construction.

    SGTM won a $35m contract last year to undertake the early works.

    The stadium is being built on a 100-hectare site in the El-Mansouria area of Benslimane Province, 38 kilometres north of Casablanca.

    In March last year, MEED reported that Morocco had appointed US-based architectural firm Populous and France's Oualalou+Choi to design the stadium.

    The construction works are expected to be completed by 2028.

    State-owned fund Caisse de Depot et de Gestion (CDG) signed a deal worth about $500m to finance the stadium’s construction.

    Six other stadiums will be renovated in the cities of Agadir, Casablanca, Fez, Marrakech, Rabat and Tangier, to host the African Cup of Nations in 2025 and the 2030 Fifa World Cup.

    Morocco will be the second African country to host the World Cup after South Africa in 2010. It is hosting the tournament jointly with Spain and Portugal.

    READ THE JUNE 2025 MEED BUSINESS REVIEW – click here to view PDF

    Gulf accelerates AI and data centre strategy; Baghdad keeps up project spending, but fiscal clouds gather; Banking stocks rise despite lower global oil prices

    Distributed to senior decision-makers in the region and around the world, the June 2025 edition of MEED Business Review includes:

    > GULF PROJECTS INDEX: Gulf projects index leaps 4.3%
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14065044/main.jpg
    Colin Foreman
  • World Bank’s nuclear U-turn is an opportunity for Middle East projects

    13 June 2025

    Commentary
    Colin Foreman
    Editor

    The World Bank’s decision to end its 65-year ban on financing nuclear power projects is a significant policy change and has the potential to help planned nuclear projects across the Middle East and North Africa (Mena) region move forward.

    On 11 June, World Bank President Ajay Banga confirmed the policy revision, which recognises a commonly held view that nuclear energy is an important part of the solution for meeting climate targets and rising electricity demand.

    Planned nuclear projects in the region, like those elsewhere in the world, face complex challenges that include regulatory hurdles, funding, delivery and geopolitics.

    While these issues apply to all projects in the region, the financial challenges differ. For countries such as Egypt and Jordan, the challenge is securing affordable capital for such large-scale projects. In Egypt’s case, this problem was overcome with government support from Russia.

    For the wealthier GCC states, the main challenge is not funding, but rather securing the necessary regulatory approvals, managing the complexities of delivering nuclear projects and attracting the right international partners.

    The World Bank’s return to nuclear may help address both these obstacles. For countries that need funding support, it can be a direct lender. For others, it can be a useful partner offering validation and technical expertise.

    The World Bank could also provide a further catalyst for the development of small modular reactors. Its role as a lender could be crucial in making these projects financially viable. A new source of financing, particularly at the early project development stage, could prove vital in moving these plans into actual projects.

    READ THE JUNE 2025 MEED BUSINESS REVIEW – click here to view PDF

    Gulf accelerates AI and data centre strategy; Baghdad keeps up project spending, but fiscal clouds gather; Banking stocks rise despite lower global oil prices

    Distributed to senior decision-makers in the region and around the world, the June 2025 edition of MEED Business Review includes:

    > GULF PROJECTS INDEX: Gulf projects index leaps 4.3%
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14065033/main.jpg
    Colin Foreman