Latest news with #hydrocarbons
Trade Arabia
5 days ago
- Business
- Trade Arabia
MOL Group, Socar agreed on terms for Azerbaijan onshore exploration
MOL Group and Socar have signed key terms for an exploration, development, and production sharing agreement for a new onshore area covering the Shamakhi-Gobustan regions of Azerbaijan. Following the signing of a memorandum of understanding (MoU) with the State Oil Company of the Republic of Azerbaijan (SOCAR) last September to evaluate further potential cooperation opportunities in the area of hydrocarbon exploration in the Shamakhi-Gobustan region in Azerbaijan, the new agreement marks further progress in MOL's strategic partnership with Socar. The agreement was signed by MOL Group Chairman and CEO Zsolt Hernádi and Socar President Rovshan Najaf during the Baku Energy Forum. 'I'm proud to sign this new agreement with Socar, reinforcing our commitment to deeper cooperation and future exploration in Azerbaijan. As MOL Group celebrates its 5th anniversary in Azerbaijan this year, stepping up with our strategic partnership is an evidence of great cooperation and shared visions," said Hernádi. "This agreement reflects the growing economic ties between Azerbaijan and Hungary too, supported by excellent governmental relations. MOL's other project, the offshore ACG is a cornerstone of our international operations, already contributing to Central Europe's energy security and our regional refining flexibility. "I'm positive that the Shamakhi-Gobustan joint exploration project will not just be a great addition to our international production portfolio but it will be an important puzzle to securing Central-Europe's energy supply. We will have the flexibility to decide to sell or to ship the oil produced to MOL Group's core region to contribute to the security of energy supply,' said Hernádi. This new agreement builds on the momentum of the earlier cooperation and reflects the parties' shared commitment to expand their collaboration in Azerbaijan's upstream sector. The discussions in relation to this exploration opportunity have progressed constructively, reaffirming MOL Group's long-term strategic presence in the Caspian region and Socar's role as a reliable partner in the development of Azerbaijan's hydrocarbon resources. According to the companies' intention, MOL would be the operator and 65% shareholder in the project and Socar would hold 35%. The finalisation of a fully termed exploration, development, and production sharing agreement will be subject to further negotiations and regulatory approvals. MOL Group entered Azerbaijan in 2020 by acquiring a 9.57% stake in the Azeri-Chirag-Gunashli (ACG), one of the world's largest oil fields, and an effective 8.9% stake in the Baku-Tbilisi-Ceyhan (BTC) pipeline that transports the crude to the Mediterranean port of Ceyhan. This represents 14% of MOL's total production and 25% of total reserves as of 2024. Despite being a minority shareholder, MOL actively contributes to the development of ACG with its 8 decades-long reservoir management and production optimization knowledge. The BTC pipeline plays an important role in MOL's supply of oil to MOL Group's refineries in Central and Eastern Europe. So far, 15 million barrels of MOL's crude oil have been transported from the ACG field through the BTC pipeline and cargo ships to MOL Group's refineries, including Slovnaft's Bratislava and INA's Rijeka Refinery. - TradeArabia News Service
Zawya
5 days ago
- Business
- Zawya
Oman advances diverse energy portfolio: EDO
MUSCAT - Oman is set to undergo a major transformation in its energy sector over the next decade, with plans for broad-based expansion across both hydrocarbons and renewable energy sources, according to a key executive of the Sultanate of Oman's pivotal energy industry. Mazin Rashid al Lamki, CEO of Energy Development Oman (EDO)—the wholly government-owned energy sector holding company—said the evolving strategy reflects global energy shifts while maintaining a strong commitment to domestic needs and export potential. In an interview featured in the latest Oman-focused edition of Oxford Business Group (OBG), Al Lamki noted that nationwide assessments of the country's energy resources, currently nearing completion, indicate a 'stronger-than-expected' potential in oil and gas. Together with assessments of Oman's solar and wind capacity, a picture is emerging of a balanced energy mix catering to both domestic demand and exports. 'Overall, we are moving toward a more diversified and integrated energy portfolio. Once it reaches commercial scale, you will see Oman expanding oil, gas, renewables, and green hydrogen. It is not a transition away from hydrocarbons, but a strategic broadening to meet domestic needs and seize export opportunities in an evolving global energy landscape,' Al Lamki stated. In line with this strategic direction, renewable resources are targeted to account for 30% of electricity production by 2030—a figure that could rise to 40–45%, according to current indicators. Hydrocarbon production is also expected to grow in response to sustained global demand, he noted. Al Lamki also emphasized the need for greater investment in the country's energy infrastructure to meet the ambitious renewable energy targets by 2030. 'Oman must expand its electricity infrastructure to meet the 2030 renewable energy target. Today's grid is designed for 11 GW of capacity, but by 2030 we expect that figure to rise to 35–40 GW. This requires investment in transmission and distribution infrastructure,' he said. One key area of focus, he added, is the development of common-use infrastructure to support both green hydrogen and renewable energy projects—a move that would help lower costs and maximize efficiency. 'Public-private partnerships (PPPs) will be key to this process. We are looking at PPP models to support grid expansion, particularly in the northern regions. Existing oil and gas transport infrastructure may be adapted to move hydrogen and desalinated water. Coordinated planning across electricity, water, and hydrogen infrastructure will be essential—and shared investment models will make that feasible,' he explained. When asked about potential sources of foreign direct investment (FDI) to support Oman's energy infrastructure, Al Lamki cited countries in Asia and Europe as particularly promising. 'These countries are seeking reliable, long-term supplies of both clean and conventional energy, and Oman stands out as an appealing partner due to its geopolitical stability, rich resource base, and clear commitment to energy diversification,' he said. Affiliated with the Ministry of Finance, EDO owns 60% of the Block 6 concession operated by Petroleum Development Oman (PDO), 100% of Block 6's non-associated gas concession, and 100% of Hydrogen Oman (Hydrom), the master planner of the Sultanate's green hydrogen industry. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Zawya
30-05-2025
- Business
- Zawya
Sonatrach Chief Executive Officer (CEO) to Spotlight Algeria's Energy Investment Boom at Africa Energy Week (AEW) 2025
Africa Energy Week (AEW) 2025: Invest in African Energies is proud to announce the participation of Rachid Hachichi, CEO of Sonatrach, as a speaker during the high-level NOC-IOC Forum. Representing one of Africa's most strategic national oil companies and a key player in global energy markets, Hachichi will provide critical insights into Algeria's dynamic investment landscape, Sonatrach's ambitious growth strategy, and the company's evolving partnerships with global energy majors. Sonatrach is at the forefront of Algeria's push to expand its hydrocarbon output and attract foreign capital. The company has continued to secure high-value partnerships, most recently signing an $850-million hydrocarbon development and exploration contract with China's Sinopec, aimed at boosting production in the Zarzaitine oilfield. Additionally, Sonatrach has revived operations at the Alrar gas complex, a key development for meeting both domestic demand and export obligations. In 2024, Algeria made eight new hydrocarbon discoveries and has targeted daily production of 1.2 million barrels by 2025, driven by enhanced oil recovery and the launch of a new licensing round. Hachichi is expected to spotlight how Sonatrach is capitalizing on these developments to strengthen Algeria's position as Africa's leading LNG producer and a top-three gas supplier to Europe, while leveraging its geographical advantage and robust infrastructure. With a view toward sustainable energy, Sonatrach is also making inroads into green hydrogen development. The company recently hosted a delegation from Spanish energy firm Enagás to discuss collaborative projects aimed at supplying Europe's growing demand for clean hydrogen. As Algeria positions itself to provide 10% of Europe's green hydrogen by 2040, Sonatrach's participation at AEW 2025 will underscore the NOC's integral role in this emerging sector. Moreover, Sonatrach continues to drive energy diplomacy and regional partnerships, such as the recent long-term gas supply agreement with Slovenia's Geoplin, reinforcing Algeria's reliability as a supplier amidst global market shifts. 'Sonatrach is not only advancing Algeria's position as an energy powerhouse, but also sending a clear message to global investors: Algeria is open for business. Their participation at AEW 2025 will be instrumental in showcasing the strategic partnerships, ambitious upstream developments and energy diversification efforts that are redefining investment opportunities across North Africa,' said NJ Ayuk, Executive Chairman of the African Energy Chamber. With Algeria allocating $50 billion through 2027 – 71% of which is earmarked for exploration and production – Sonatrach is opening up new avenues for international investment, backed by a series of regulatory reforms offering more attractive terms for foreign partners. As international energy companies intensify their presence in Algeria, AEW 2025 will host discussions on how Sonatrach is forging a path toward greater energy security, investment diversification and sustainable growth. AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event. Distributed by APO Group on behalf of African Energy Chamber.
Zawya
29-05-2025
- Business
- Zawya
Algeria sets 17 June as bid opening date for 2024 oil and gas round
Algeria has set 17 June 2025 as the opening date for bids received under the 2024 Bid Round, National Agency for the Valorisation of Hydrocarbon Resources in Algeria (ALNAFT) announced on Thursday. The 2024 round, launched in October 2024 with six onshore blocks, attracted the interest of 41 global operators. Speaking in a webinar hosted in partnership with the African Energy Chamber (AEC) and Wood Mackenzie, Mourad Beldjehem, Chairman of the Board of Directors of ALNAFT, said they were optimistic on awarding "at least" five out of the six blocks, adding that ALNAFT intends to select the same type of blocks, featuring both exploration and development opportunities for its 2025 Bid Round, slated for launch in the fourth quarter this year. The country's new Hydrocarbon Law, introduced in 2019, helped reverse declining production in the OPEC member, and put it on track to maintain sales gas production of 10 billion cubic feet per day until the end of the decade. (Editing by Anoop Menon) (
Arab News
28-05-2025
- Business
- Arab News
Gulf's excess electricity exports fostering energy alliances
The Gulf region's move toward clean energy sources in recent years has been lauded by the international community. The region's states are rapidly investing in renewable energy, particularly solar and wind, to diversify their economies and reduce their traditional reliance on fossil fuels. These initiatives not only meet domestic demand sustainably but also free up hydrocarbons and excess energy for export, in turn positioning the region as integral to the global clean energy transition. Oil and gas have traditionally dominated the region's exports, with Saudi Arabia being the largest exporter of oil worldwide. However, there has been an uptick in the export of surplus electricity by the Gulf states, in line with the region's economic diversification and move away from hydrocarbon dependence. Although hydrocarbons continue to dominate the Gulf states' export portfolios, renewable energy trade is a pillar of their long-term visions and they are increasingly investing in sustainable projects to achieve net-zero emissions targets. As these projects bear fruit thanks to significant investments over recent years, the region is faced with excess sustainable energy supply, particularly during off-peak seasons. Using this opportunity, the Gulf states are expanding their export of surplus clean energy to markets with supply shortages or growing demand. Saudi Arabia and the UAE are at the forefront of this move, with the latter having nearly 50 percent spare capacity generation. In fact, the UAE's clean energy capacity is expected to double by 2030. The region's clean energy capacity will continue to grow given the ongoing investment in the sector. In Saudi Arabia, the NEOM project includes an $8.4 billion green hydrogen plant that aims to produce 650 tonnes daily. The UAE, through Masdar, is also at the forefront of sustainable development, producing green hydrogen for aviation fuel and shipping. Oman's Hyport Duqm is one of the world's largest gigawatt-scale green hydrogen projects. Renewable energy trade is a pillar of the Gulf states' long-term visions and they are increasingly investing in sustainable projects Zaid M. Belbagi In this context, the UAE is assessing the feasibility of linking its grid to India via a subsea cable. Saudi Arabia, on the other hand, will next month launch a 3 GW subsea high-voltage direct current connection to Egypt, while the Kingdom is similarly looking into a possible connection with India. The shift toward Asian partners is not a coincidence — it is a strategic opportunity. Asia's energy demand is increasing steadily, with the Asia-Pacific today accounting for more than 40 percent of global primary energy consumption. Amid geopolitical volatility and disruption in global supply chains due to US tariffs, the Gulf Cooperation Council has emerged as a reliable market and trade partner. Renewable energy sources, particularly solar and wind, are key to meeting the growing Asian demand. By next month, India's electricity demand is projected to peak at 273 GW, driven primarily by rising cooling needs during the summer. Similarly, China has the highest electricity needs globally at nearly 10,000 terawatt hours in 2024. This demand is growing by about 7 percent a year primarily due to strong industrial electricity consumption. The growing need for energy in these markets presents a valuable opportunity for the Gulf states, which are promptly stepping in to meet the demand. European markets also have a growing appetite for alternative energy sources. Since the 2022 Russian invasion of Ukraine, the EU has attempted to reduce its reliance on Russian energy. The Gulf states are playing a role in filling this gap, forging new partnerships with European partners like France, Germany, Italy and the Netherlands. The UAE is exploring greater cooperation through opportunities such as a $1 billion renewable power subsea connection to link with Italy and Albania. It has also invested in Xlinks, a proposed pioneering power link between Morocco and the UK. And the region is exploring the potential of the Elmed link between Tunisia and Sicily to provide both Gulf and North African energy in EU markets. Given the region's established expertise in hydrocarbon trade, it has the necessary risk appetite for this new phase of exports Zaid M. Belbagi Over the last decade, the region has been preparing to face geopolitical disruptions and strategic risks. Shifts such as the rising energy demand in India and China, low oil prices, increased shale self-sufficiency in the US and Canada, Brexit, and regional conflicts have prompted Gulf states to expand their trade ties to bolster economic resilience. They have increasingly turned toward multipolar alliances to preserve their strategic autonomy. As traditional Western partners show signs of reduced engagement, the region is strengthening ties with other powers like China, India and the EU. They are capitalizing on their growing renewable energy capacity by positioning themselves as future exporters of electricity. Investments in solar and wind power, combined with advancements in grid connectivity and energy storage, are enabling the Gulf to generate surplus electricity. Given the region's established expertise in hydrocarbon trade, it has the necessary risk appetite for this new phase of exports. By developing transnational electricity grids and forging energy-sharing agreements, the Gulf states can manage their excess electricity supply and secure non-oil revenue streams. They aim not only to monetize their renewable resources but also to strengthen their geopolitical relevance in the global energy transition. The export of excess electricity from the Gulf to the growing markets of Asia and Europe highlights the emergence of multipolar alliances and diversified trade partnerships. By linking their energy infrastructure with diversified territories, the Gulf states are reducing their dependence on traditional Western markets and deepening ties with markets with supply shortages. This is key to enhancing the region's strategic autonomy, while positioning it as a significant player in the global energy transition. Simultaneously, this transition is reforming the image of the region as oil-dependent, as global partners are realizing the Gulf's value in other critical sectors.
