In a move with far-reaching implications, OPEC+ has announced a major boost in oil production—an action that extends well beyond the realm of commodity markets. This article explores how the decision is not merely a matter of output volumes, but a strategic play involving power, politics, and influence in a world marked by growing geopolitical fragmentation.
OPEC+, the world’s largest oil-producing alliance, is set to boost crude output by another 411,000 barrels per day (bbl/d) in August as part of its effort to reclaim market share. If agreed upon, this would raise OPEC+’s cumulative 2025 production increase to 1.78 million bbl/d—representing more than 1.5% of global demand.
Oxy Oman, wholly owned subsidiary of US Occidental Petroleum (Oxy), secured a 15-year extension of its Exploration and Production Sharing Agreement (EPSA) for the onshore Block 53 in south-central Oman, where it operates Mukhaizna Field, the largest producing oil field in the country. The extended period of the agreement involves drilling activities and applying enhanced oil recovery projects across various reservoirs with the aim of increasing the total estimated recoverable of oil by 800 million barrels (mmbbls). The agreement also entails the utilization of artificial intelligence (AI) to optimize steam flood patterns to boost hydrocarbon recovery.
Wael Sawan, the CEO of Shell stated that his company is being "very careful" with its Middle East shipments, due to the Israel-Iran conflict, to ensure not taking unnecessary risks, Reuters reported.
The International Energy Agency (IEA) stated in a report that any disruption to transit flows in the Strait of Hormuz (SoH) would have significant consequences for global oil and LNG markets. The report, issued in December 2023, notes that prolonged disruption will trigger a sharp surge in oil prices and lead to swift, widespread supply shortages. Moreover, worldwide LNG supply could fall by approximately 295 mmcm/d.
SoH is a narrow, strategically vital waterway located between the Persian Gulf and the Gulf of Oman, separating Iran to the north and Oman and the UAE to the south. It serves as a crucial route linking oil and gas producers in the Middle East Gulf with global export markets.
The Petroleum Projects and Technical Consultations Company (PETROJET) has signed a $21.76 million agreement with Jordan Petroleum Refinery Company (JPRC) and Jordan National Shipping Lines (JNSL) to build liquefied petroleum gas (LPG) storage facilities in southern Jordanian port of Aqaba.
The Chairman of the Egyptian Drilling Company (EDC), Osama Kamel, revealed that the company was able to drill 200 new wells and repair over 600 in 2024. He showcased the company's performance, noting that it added two new rigs using the latest technologies in drilling and safety performance maintenance. This was reported during the company's general assembly meeting, headed by Minister of Petroleum and Mineral Resources Karim Badawi.
Oman is not planning to sell interests in natural gas fields, noted a statement issued by the Omani Ministry of Energy.
The statement quoted Saleh Al Anboori, Director General of Exploration and Production of Oil & Gas, Omani Ministry of Energy and Minerals, as denying the circulating rumours about Oman's mulling selling natural gas assets valued at $8 billion to boost the state finances and investments. The rumours are based on a Bloomberg report on Friday.
TotalEnergies, the world’s third-largest LNG player, and OQ Exploration and Production (OQOP), Oman’s national oil company, celebrated the groundbreaking of the Marsa LNG plant in the port of Sohar, in the northern part of the Sultanate.
Minister of Petroleum and Mineral Resources Karim Badawi attended the general assembly meeting of Egypt Gas Company to approve and discuss its fiscal year results for 2024, praising its past years achievements across Egypt.
