The Inevitable Evolution: Why Oil Majors Are Pivoting Towards Sustainability

The decision by established oil companies to venture aggressively into alternative energy sources, particularly biofuels and SAF, is multifaceted. It’s a strategic response to a world grappling with escalating environmental concerns and the tangible impacts of climate change. The narrative is no longer one of simple energy provision but of responsible energy transition.

Several powerful forces are compelling these industrial titans to recalibrate their business models. Firstly, stringent environmental regulations, from carbon pricing mechanisms to mandates for blending renewable fuels, are making traditional fossil fuel operations more costly and complex. Governments worldwide are setting ambitious net-zero targets, pushing industries like aviation towards radical aviation decarbonization. Secondly, institutional investors, increasingly conscious of Environmental, Social, and Governance (ESG) factors, are divesting from companies perceived as slow to adapt, and are instead demanding clear strategies for emission reduction. This financial pressure is a potent catalyst, linking access to capital directly to sustainability performance. Thirdly, public perception and consumer demand are shifting. There’s a growing preference for products and services with a lower carbon footprint, influencing everything from transportation choices to corporate supply chain decisions. For oil majors, maintaining relevance and social license to operate necessitates a proactive stance on sustainable energy solutions. This collective pressure ensures that the oil majors energy transition is not a choice, but an essential evolution for their continued viability.

Biofuels: A Foundational Pillar in the Decarbonization Strategy

Biofuels encompass a range of liquid fuels derived from biomass, offering a direct pathway to reduce greenhouse gas emissions compared to their fossil counterparts. These fuels have been around for a while, but their importance is skyrocketing as a versatile tool in the decarbonization toolkit.

Understanding the Spectrum of Biofuels and Their Impact

From bioethanol, commonly blended with gasoline, to biodiesel, a diesel substitute, biofuels offer significant emission reductions across various transport sectors. First-generation biofuels, primarily derived from food crops like corn and sugarcane, faced criticism regarding food security and land use. However, the industry has evolved significantly, with a strong focus now on second and third-generation biofuels. These advanced biofuels utilize non-food feedstocks such as agricultural waste, municipal solid waste, algae, and industrial gases. This shift addresses sustainability concerns and broadens the resource base. Oil majors, with their extensive refining infrastructure and expertise in complex chemical processes, are uniquely positioned to process these diverse feedstocks into usable fuels. Their involvement can significantly accelerate the scaling of sustainable alternative fuels, bridging the gap between niche production and widespread availability. The ability to integrate biofuel production into existing refineries, often through co-processing technologies, presents a cost-effective and efficient way to boost renewable fuel capacity without entirely reinventing their operational footprint.

The Ascent of Sustainable Aviation Fuel (SAF): A Critical Frontier

While biofuels address a broad spectrum of transportation, one sector stands out for its particularly challenging decarbonization pathway: aviation. Here, Sustainable Aviation Fuel (SAF) emerges not just as an option, but as a critical necessity, driving substantial investment and innovation from oil majors.

Decarbonizing the Skies: Why SAF is Indispensable

Aviation is often considered one of the hardest-to-abate sectors due to the high energy density requirements of aircraft fuel and the lack of viable battery-electric or hydrogen solutions for long-haul flights in the near to medium term. SAF offers a drop-in solution, meaning it can be blended with conventional jet fuel and used in existing aircraft engines and infrastructure without modification. This immediate compatibility is a game-changer. Produced from diverse sustainable feedstocks – including used cooking oil, animal fats, municipal waste, agricultural residues, and even captured carbon dioxide – SAF can reduce life-cycle greenhouse gas emissions by up to 80% compared to fossil jet fuel. The demand for SAF is set to skyrocket, fueled by ambitious targets from airlines, governments, and international bodies like ICAO, making SAF market growth an incredibly attractive proposition for energy companies with the capacity to produce and distribute these complex fuels. The strategic imperative for oil majors to secure a share of this market is clear, as it represents a significant avenue for future revenue and a vital component of their own decarbonization narratives.

Scaling Up: Investment, Innovation, and Collaboration

The expansion into biofuels and SAF requires more than just good intentions it demands substantial capital investment, technological innovation, and often, strategic partnerships. Oil majors are leveraging their vast financial resources, engineering prowess, and global logistics networks to establish themselves as leaders in this emerging field.

The Path to Commercial Viability: From Research to Refineries

Major players are investing heavily in research and development to optimize conversion technologies, enhance feedstock flexibility, and improve the efficiency of renewable fuel capacity. This includes exploring advanced pathways like power-to-liquid (PtL) fuels, which convert renewable electricity, water, and captured CO2 into synthetic hydrocarbons. Existing refineries are being reconfigured and upgraded to produce SAF and other biofuels, utilizing processes like hydrotreating vegetable oils and fats (HEFA) or converting alcohol-to-jet (ATJ). Companies are also forming joint ventures and alliances with agricultural producers, waste management firms, and technology specialists to secure diverse feedstock supplies and bring cutting-edge solutions to market. For instance, partnerships with airlines and cargo operators are crucial for securing off-take agreements, providing the long-term certainty needed to finance large-scale production facilities. This ecosystem approach is vital for overcoming the complexities of nascent supply chains and accelerating the commercialization of low-carbon fuels. The commitment extends beyond just production it involves building the entire value chain, from feedstock sourcing and processing to distribution and market access.

Challenges and the Road Ahead for Low-Carbon Fuels

While the trajectory towards biofuels and SAF is clear, the path is not without its hurdles. Realizing the full potential of these alternative fuels requires addressing significant challenges related to economics, infrastructure, and policy.

Navigating the Complexities of a Sustainable Future

One of the primary challenges is feedstock availability and sustainability. Ensuring a consistent, ethical, and scalable supply of biomass or waste materials without competing with food production or driving deforestation is paramount. The sustainability credentials of the entire lifecycle of biofuels and SAF must be rigorously maintained to uphold their environmental benefits. Another key obstacle is cost competitiveness. Currently, SAF and advanced biofuels are often more expensive to produce than traditional fossil fuels, due to higher production costs and the relatively small scale of current operations. Government incentives, carbon pricing, and long-term purchase agreements are crucial to bridge this price gap and stimulate demand. Furthermore, developing the necessary infrastructure for production, storage, and distribution of these new fuels requires significant investment. While oil majors can adapt existing infrastructure, new dedicated facilities are also needed. Finally, a stable and predictable policy environment is essential. Inconsistent or short-term policy signals can deter investment and slow the pace of deployment. A harmonized global regulatory framework for aviation decarbonization and other sectors reliant on low-carbon fuels would provide the certainty needed for sustained growth. Despite these challenges, the long-term vision remains compelling. Oil majors, with their extensive financial muscle, technical expertise, and global reach, are uniquely positioned to overcome these barriers and lead the charge in establishing a robust and scalable market for biofuels and SAF. Their strategic pivot is not just about survival it’s about shaping the next generation of global energy, ensuring their continued relevance in a world that increasingly values sustainability. The journey is complex, but the destination of a significantly decarbonized energy system is a shared imperative.

A major driver behind this natural gas production growth is the expansion of U.S. liquefied natural gas (LNG) exports, which are expected to absorb a large share of incremental supply. Export volumes are projected to climb from 15 billion cubic feet per day (Bcf/d) in 2025 to over 30 Bcf/d by 2050 in most scenarios. These projections are largely centered around the Counterfactual Baseline case, while the Combination case records the highest export levels due to the absence of certain transportation and electricity market policies. Without these policies, liquids consumption increases, leading to higher Brent crude oil prices. Because LNG pricing is often indexed to crude oil, U.S. LNG becomes more competitive in international markets. At the same time, lower electricity demand from electric vehicles (EVs) reduces domestic gas consumption for power generation, freeing up additional volumes for export and reinforcing natural gas production growth.

Domestic consumption patterns also contribute to the overall expansion. In most scenarios, U.S. natural gas demand rises steadily, particularly within the electric power sector. Consumption for power generation is projected to grow  by between 2.9 Bcf/d and 15.2 Bcf/d in 2050, from 35.2 Bcf/d in 2025 marking the largest increase among end-use sectors. This trend is supported by higher electricity generation needs and policy conditions that limit renewable deployment. In the Counterfactual Baseline case, total domestic consumption increases from 90.8 Bcf/d in 2025 to 108 Bcf/d in 2050. However, in the Combination case, consumption is lower at approximately 98 Bcf/d, largely due to reduced demand from EV-related power usage. Of this difference, around 7 Bcf/d is redirected to LNG exports, while the remaining 3 Bcf/d is not absorbed, slightly moderating output levels. Even so, the broader outlook continues to emphasize consistent natural gas production growth across most scenarios.

The most prominent of these new oil and gas discoveries was recorded offshore western Libya, where NOC and Eni North Africa drilled the J1-4/16 exploration well in Block D. Located approximately 95 kilometers from shore, the well reached a total depth of 10,458 feet and confirmed a gas find in the Metlawi reservoir. Testing yielded 14 million cubic feet per day (MMcf/d) in one run and 24 MMcf/d in a second test under a wider choke. This milestone also completes the ninth and final contractual exploration obligation under Contract 4/16, originally signed in June 2008.

Onshore developments added further weight to Libya’s exploration narrative. In the Murzuq Basin, around 800 kilometers south of Tripoli, NOC and Repsol Libya Branch confirmed an oil discovery in Contract Area 131/130. The J1-4/130 exploratory well, drilled to 4,325 feet, is currently producing an average of 763 barrels per day from the Mummiyat Formation. This well represents the fifth completed under the eight-well commitment outlined in the partners’ 2008 Exploration and Production Sharing Agreement.

At the same time, in the Ghadames Basin, NOC and Sonatrach’s Libyan subsidiary SIPEX reported a combined oil and gas find near the Wafa field. The A1-69/02 exploration well, drilled to 8,440 feet, is producing 13 million cubic feet of gas per day along with 327 barrels per day of condensate from the Awynat Wanin and Awyn Kaza formations. This marks the sixth well drilled out of eight planned under the EPSA signed in May 2008.

Taken together, these new oil and gas discoveries demonstrate sustained success across multiple basins and operators, with both offshore and onshore assets delivering commercially viable volumes. Offshore gas gains added importance as Libya seeks to bolster domestic supply while maintaining its role as a Mediterranean energy supplier. Meanwhile, the Murzuq and Ghadames basin results reaffirm the enduring potential of established onshore regions, where even smaller-scale wells can contribute to near-term production growth. Collectively, these new oil and gas discoveries signal that long-standing contractual acreage continues to yield tangible results despite years of disruption, offering a positive outlook for future upstream investment.

Reconsidering the Depths: The Shifting Tides of Offshore Economics

The narrative surrounding deepwater exploration had, for some time, been overshadowed by concerns over high costs, environmental risks, and the perceived inevitability of a rapid transition away from fossil fuels. Yet, as global energy demand continues to climb, exacerbated by industrial growth and population expansion, the need for reliable, scalable energy sources remains paramount. The recent volatility in global energy markets, highlighted by geopolitical tensions and supply chain disruptions, has unequivocally underscored the strategic importance of diverse energy portfolios. This environment has served as a powerful catalyst, prompting a thorough re-evaluation of offshore economics.

Initially, the sheer scale of investment and the extended timelines associated with deepwater development made these ventures appear less attractive than quicker, often less capital-intensive onshore alternatives. However, the industry has learned valuable lessons. Rigorous cost-cutting measures, supply chain optimizations, and a relentless pursuit of efficiency have significantly reduced the break-even points for many deepwater projects. What was once considered a prohibitive frontier is now being approached with renewed financial prudence and technological sophistication. This recalibration is not just about higher oil prices making projects profitable; it’s about a structural improvement in how these massive undertakings are planned, executed, and managed, leading to better returns on oil and gas investment even at moderate commodity prices.

The Unseen Advantage: Technological Prowess and Deeper Horizons

A critical enabler of this offshore drilling revival is the breathtaking pace of technological advancement. The industry has continually pushed the boundaries of what is technically feasible and economically viable in some of the planet’s most extreme environments. Innovations span the entire upstream energy value chain, from initial offshore oilexploration to extraction and transport.

Advancements in Seismic Imaging and Reservoir Characterization

Consider the evolution of seismic imaging. What was once a blurry snapshot of the subsurface is now a high-definition, three-dimensional, and even four-dimensional view of complex geological structures. Full-waveform inversion (FWI) and other advanced processing techniques allow geophysicists to map reservoirs with unprecedented accuracy, reducing drilling uncertainty and optimizing well placement. This precision translates directly into higher success rates and greater resource recovery, profoundly impacting deepwater projects where every well costs tens of millions, if not hundreds of millions, of dollars. Better understanding of the subsurface means less dry holes and more productive wells, fundamentally improving the project’s economic viability.

Engineering Marvels in Drilling and Subsea Infrastructure

Beyond imaging, drilling technology itself has undergone a revolution. Ultra-deepwater rigs are now capable of operating in water depths exceeding 10,000 feet, reaching total depths of over 40,000 feet below the seabed. These aren’t just bigger machines; they incorporate advanced automation, real-time data analytics, and enhanced safety systems that improve operational efficiency and mitigate risks. Furthermore, subsea production systems have become increasingly sophisticated and reliable. Instead of requiring costly surface platforms for every well, clusters of wells can be tied back to existing infrastructure or floating production storage and offloading (FPSO) units through extensive networks of risers and flowlines, drastically reducing infrastructure costs and environmental footprint. This distributed architecture is key to making challenging deepwater development projects feasible.

Geographic Hotspots and the Hunt for New Offshore Reserves

The offshore drilling revival is not uniform across the globe but is rather concentrated in regions offering significant potential for new offshore reserves and favorable regulatory environments. The Gulf of Mexico, a traditional stronghold, continues to see robust activity, with major lease sales and new project sanctions. Brazil, with its prolific pre-salt discoveries, remains a powerhouse in deepwater projects, attracting substantial oil and gas investment from international majors looking to expand their portfolios in proven basins.

Beyond these established giants, emerging frontiers are also capturing significant attention. The Guyana-Suriname basin, for instance, has become one of the world’s hottest offshore oil exploration plays, with multiple super-giant discoveries transforming the economic outlook of these nations. Similarly, parts of West Africa, notably Angola and Namibia, are experiencing renewed interest, leveraging existing infrastructure and tapping into new, prospective areas. The Mediterranean and parts of Asia are also seeing targeted deepwater development efforts, driven by both energy security imperatives and the allure of significant, undeveloped hydrocarbon potential. These geographic hotspots underscore a strategic intent to secure long-term supply, capitalizing on improved offshore economics  and technological capabilities.

Major Players and Strategic Investments: Anchoring the Upstream Energy Future

The commitment of major international oil companies (IOCs) and national oil companies (NOCs) is central to this offshore drilling revival. Despite mounting pressure to transition towards cleaner energy sources, these companies recognize the enduring necessity of hydrocarbons to meet global energy needs for decades to come. Their investment strategies are becoming more discerning, focusing on high-return, lower-carbon-intensity deepwater projects that can leverage existing infrastructure and expertise.

Companies like ExxonMobil, Shell, Chevron, and TotalEnergies are allocating significant portions of their oil and gas investment capital towards upstream energy developments in deepwater. They are doing so not out of a denial of climate change, but from a pragmatic understanding of global energy realities. These deepwater projects often boast lower carbon intensity per barrel compared to some onshore operations, due to efficiencies of scale, advanced equipment, and stricter operational standards. Furthermore, the long production lifetimes of deepwater fields make them attractive for securing energy supplies over multiple decades, providing stability in volatile markets. This strategic long-term view underscores the confidence in the future of these assets, even amidst the broader energy transition.

The Balancing Act: Revival Amidst Energy Transition

It is imperative to contextualize this offshore drilling revival within the broader global energy transition. The world is unequivocally moving towards a lower-carbon future, with renewable energy sources playing an increasingly dominant role. However, this transition is complex, lengthy, and uneven. Renewables, while growing rapidly, cannot yet independently meet the entirety of global energy demand, especially for base-load power, industrial processes, and transportation sectors.

Hydrocarbons, therefore, will continue to be a vital component of the energy mix for the foreseeable future. The offshore drilling revival is, in many ways, an acknowledgment of this reality. Rather than signaling a retreat from climate commitments, it reflects a dual strategy: investing heavily in renewable energy and decarbonization technologies, while simultaneously ensuring a stable, efficient, and responsibly produced supply of conventional fuels to bridge the transition. For many nations, securing domestic offshore reserves is also a matter of national energy security and economic stability, reducing reliance on politically sensitive imports. The focus is increasingly on “advantaged barrels”, those extracted with the lowest possible emissions and highest efficiency, a category into which many modern deepwater projects now fall.

Environmental Stewardship and Future-Proofing Deepwater Development

While the economic rationale for deepwater development is strong, the environmental considerations are equally significant. The industry has made substantial strides in environmental stewardship, driven by lessons learned from past incidents and increasingly stringent regulatory frameworks. Modern deepwater projects incorporate advanced spill prevention technologies, real-time environmental monitoring, and robust emergency response plans. The goal is not just to extract hydrocarbons efficiently but to do so with minimal impact on marine ecosystems. Furthermore, research into integrating carbon capture and storage technologies, and exploring opportunities for electrifying offshore platforms to reduce operational emissions, signifies a proactive approach to future-proofing these upstream energy assets within a decarbonizing world.

In conclusion, Oil & Gas Advancement recognises the offshore drilling revival as a multi-faceted phenomenon, deeply rooted in evolving offshore economics, propelled by advanced technology, and validated by strategic oil and gas investment in deepwater projects. It represents a pragmatic response to persistent global energy demand and the critical need for energy security, all while navigating the complexities of the energy transition. The deep sea, once viewed with dwindling commercial prospects, is re-emerging as a vital frontier for securing the reliable energy supplies essential for powering the modern world. This strategic shift underscores a renewed confidence in the sector’s ability to deliver essential resources responsibly, positioning deepwater projects as indispensable contributors to the global energy mosaic for decades to come.

How to Secure Surplus Tubular Goods and OCTGs Fast

Professionals must follow a consistent process to obtain the most trustworthy products to kick-start their contracts. Initially, teams need to aggregate demand. This will help them determine material specifications for casing and tubing that meet industrial standards. If everyone is aware of how much and what kind of products are necessary, it eliminates redundancies and encourages just-in-time inventorying.

Then, stakeholders can vet vendors by researching them on digital marketplaces or by interviewing them about their products. Parties should be transparent and willing to provide certifications and testing, including non-destructive testing reports and third-party inspections. The effort will make procurement more straightforward.

Finally, leaders can negotiate deals and transportation timelines. They can ensure faster delivery by partnering with the right company and choosing smart intermodal transportation hubs for seamless handoffs. Another method to obtain faster shipping is to use digital platforms for greater oversight and traceability. Once the products are in the team’s hands, inspect the contents and positive material identifications to verify the quality of the materials.

How Quick Delivery OCTG Suppliers Get to First Oil Quickly

Rapid delivery helps teams break ground to first oil faster in several ways, including:

• Reducing manufacturing times by skipping lead times for new mill orders.
• Catalyzing immediate drilling instead of waiting for manufacturing.
• Cutting potential interruptions that could occur by waiting for tubing and casing.
• Lowering downtime on the project by choosing ready-to-ship equipment.
• Having the ability to change the job’s scope with access to more surplus tubular goods without requiring custom production.

The Best Options in the Industry

Knowing these advantages, all stakeholders need to do is establish a partnership with a resource known for quick turnarounds.

1. PipeSearch

PipeSearch has over 13,000 items in its warehouses, totaling $2.5 billion in OCTG tracked in 89 countries. Its team combats some of the industry’s most egregious pain points — such as low-quality and uncertified materials — by offering a robust quality-verification service embedded in a mission of supplier reliability. Its proprietary global market intelligence platform, recovery process and 220-point quality control methods are known for empowering customers at every phase of the acquisition process.

2. B&L Pipeco Services

B&L Pipeco Services is one of the largest OCTG suppliers in America, with access to connections, accessories and more at every drilling site. It is considered a one-stop shop for all needs, as its services extend beyond product offerings. It also supports field services and logistics, as well as rapid procurement, thanks to its deep knowledge of just-in-time delivery. With its direct-to-rig model, this option can also customize payment methods and net string billing for easier accounting and oversight.

3. United States Steel

United States Steel has created its line of OCTG goods called the U.S. Steel Tubular Products. It stocks many grades, including proprietary options and API 5CT grades. They are among the strongest products on the market, known for helping enterprises scale due to their hardness, maximum yield strengths and tensile strengths. Because of the company’s familiarity with steel manufacturing, it is able to produce corrosion-resistant and rugged options for oil brands.

4. Tenaris

Tenaris is the best option for domestic mill-buying paths for large operations. It has an international presence, comprising a massive network of OCTG inventories and mills. It is known for its commitment to reducing its environmental footprint by providing high-quality products supported by some of the most advanced digital tracking software in the field. The dedication to digitization can let businesses focus on innovation and building lasting partnerships instead of worrying about poor-quality tubings and casings.

OCTG Companies at a Glance

These are the most notable details from all the quick delivery OCTG suppliers.

Methodology

Quick delivery OCTG suppliers build a reputation by offering specific, competitive qualities that establish their brand as one of the most trustworthy. These traits signal how to choose the best options:

• Certifications: Third-party verification from the American Petroleum Institute is readily available, along with ISO and other certifications.
• Quality: Enterprises use high-quality materials such as carbon or stainless steel that undergo rigorous testing.
• Robust inventory: How well an outlet stores and manages its stock indicates how effective it will be at shipping and logistics.
• Industry reputation: Businesses should be associated with compliance and quality assurance among industry leaders or known as a go-to resource.

Surplus Tubular Goods in a Demanding Landscape

In times when resources are challenging to access, rapid delivery and deployment have never been more crucial to staying competitive and for upholding the promises organizations make to their clientele. Establishing a partnership with one of these companies will ensure consistent access to durable goods, enabling quicker turnarounds and financial savings.

The development of the Symra field includes four wells connected through a subsea template, forming a key component of the infrastructure expansion in the region. To support this integration, Aker BP has implemented modifications on both the Ivar Aasen and Edvard Grieg platforms. These upgrades were necessary to enable the tie-in of subsea infrastructure and to enhance processing capacity at Edvard Grieg. Notably, Symra marks the sixth Aker BP-operated project sanctioned in 2022 to reach production.

“Symra demonstrates what’s possible when strong partners work together: safe delivery, high quality, and faster execution,” said Karl Johnny Hersvik, CEO of Aker BP. Additionally, it creates value for partners, shareholders, and society by entering a new region of the Eiga region and a new type of reservoir on the Norwegian shelf.

Execution of the project has involved close coordination with multiple suppliers. TechnipFMC was responsible for delivering the subsea systems, while Moreld Apply carried out modifications on the Edvard Grieg platform. Aibel, in turn, handled the required upgrades on the Ivar Aasen platform. Drilling operations for the Symra field were conducted by Odfjell Drilling and Halliburton as part of the Norwegian operator’s drilling and wells alliance, contributing to the project’s safe and efficient delivery.

In parallel, Aker BP continues to advance other developments, including the Utsira High project, which comprises two subsea tie-in initiatives and incorporates Solveig in the central North Sea. Solveig Phase 2 has been designed for connection to the Edvard Grieg platform. Aker BP operates the Symra field (PL167/167B/167C) alongside partners Equinor (30%) and DNO Norge (20%).

The operation will be led by the Turkish Petroleum Corporation’s drilling ship, Çağrı Bey, which is embarking on its first international assignment as it heads into Somalia’s territorial waters in the Arabian Sea. The vessel is tasked with conducting deep water drilling at sites identified through recent surveys that mapped the country’s hydrocarbon potential. Highlighting the significance of this phase, Shire said, “This signals Somalia’s readiness to move into exploratory drilling, beginning with our most promising offshore prospects,” underlining the country’s intent to advance its first offshore oil drilling efforts. He also noted that authorities would work to ensure the outcomes of the first offshore oil drilling initiative translate into broader national prosperity and improvements in living standards.

Somalia’s foreign ministry indicated that successful drilling could unlock offshore oil reserves and contribute to the country’s economic recovery, positioning it as a regional energy player. Cooperation between Turkey and Somalia was formalised in 2024 through a production-sharing agreement, laying the groundwork for the current campaign. On Monday, Somali Foreign Minister Ali Omar said the initiative would reinforce Turkey’s role as a “trusted long-term partner” in development. Meanwhile, Turkey’s Energy Minister Alparslan Bayraktar, speaking on Saturday ahead of his planned visit, said that any discovery of oil or gas reserves would deliver significant economic benefits to Somalia, East Africa and Turkey.

Turkey has steadily expanded its engagement with Somalia over more than a decade, including increased investment and a growing military presence, where it already operates a major base established in 2017. Despite estimates suggesting the country holds billions of barrels of oil reserves, exploration has long been constrained by decades of conflict and political instability. The launch of first offshore oil drilling is therefore seen as a crucial step toward unlocking this potential and reshaping Somalia’s economic trajectory.

As part of their ongoing strategy, the group agreed to implement a production adjustment of 206 thousand barrels per day from the 1.65 million barrels per day additional voluntary adjustments announced in April 2023. This oil production boost will take effect in May 2026, with scope for the 1.65 million barrels per day to be restored either partially or fully depending on how market conditions evolve. The countries emphasized that any oil production boost would be handled gradually and with flexibility, allowing them to increase, pause, or reverse the phase-out if necessary. They also reiterated that this framework includes the option of reversing the previously implemented voluntary adjustments of the 2.2 million barrels per day announced in November 2023. Throughout the process, the group underscored its intention to closely monitor market trends and maintain a cautious stance.

The participating countries further indicated that the adjustment would support efforts to accelerate compensation for past overproduction. They reiterated their commitment to full compliance with the Declaration of Cooperation (DoC), including adherence to the additional voluntary production adjustments overseen by the Joint Ministerial Monitoring Committee (JMMC). In line with this, they confirmed their plan to fully compensate for any overproduced volume since January 2024. Additionally, they echoed the JMMC’s statement from its 65th meeting, stressing the importance of protecting international maritime routes to ensure uninterrupted energy flows.

Concerns were also raised about attacks on energy infrastructure, with the group noting that restoring damaged facilities is both time-consuming and costly, ultimately affecting supply availability. The countries warned that disruptions to infrastructure or maritime routes heighten market volatility and undermine collective stability efforts. They acknowledged the role of DoC countries that have ensured continued supply availability, particularly through alternative export routes, which have helped reduce volatility. Looking ahead, the eight OPEC+ countries will continue holding monthly meetings to review market conditions, conformity, and compensation, with the next session scheduled for 3rd May 2026.

As the project transitions into execution, Pharaonic Petroleum Company (PhPC), acting on behalf of El Burg Offshore Petroleum Company, has awarded the engineering, procurement, construction, and installation (EPCI) contract to ENPPI. The scope of work will include participation from Petroleum Marine Services and Petrojet as subcontractors. The advancement of the Harmattan gas project follows Arcius Energy’s acquisition of the El Burg Offshore concession area in February 2026, completed in collaboration with Egyptian Natural Gas Holding Company (EGAS). Arcius itself was established in December 2024, with BP holding a 51% stake and XRG, ADNOC’s international energy investment company, owning the remaining 49%, forming a regional gas platform focused on Egypt and the broader Eastern Mediterranean.

The company’s portfolio in Egypt includes multiple concession agreements, reflecting its expanding footprint. These holdings comprise a 10% stake in Shorouk, which contains the producing Zohr field, full ownership of North Damietta covering the producing Atoll and Qattameya fields, and 100% control of El Burg Offshore, which includes the Harmattan gas project. Additional exploration interests include 100% of North El Tabya and 50% stakes in the Bellatrix–Seti East and North El Fayrouz concessions. Highlighting the importance of the development, Naser Al Yafei, Chief Executive Officer of Arcius, said: “The final investment decision to develop the Harmattan field marks an important milestone in advancing one of our first projects in Egypt toward production.”

Separately, Egypt’s Ministry of Petroleum disclosed in March 2026 that Arcius Energy had initiated preparations for drilling two offshore gas exploration wells in the Mediterranean, Atoll West and Nofret. These activities align with Egypt’s broader strategy to drill more than 100 exploratory oil and gas wells in 2026 in partnership with investors. Within this context, the Harmattan gas project underscores Arcius Energy’s commitment to expanding gas development efforts in the region while contributing to the country’s production objectives.

Once fully operational, the Golden Pass facility is expected to deliver 18 million metric tons per annum (MTPA). The initial production unit, Train 1, will contribute 6 MTPA of new LNG capacity. Based on the equity structure, QatarEnergy, which holds a 70% stake, will receive just over 4 MTPA, while Exxon, with a 30% share, will receive just under 2 MTPA. The company underscored the importance of first LNG production in advancing the project toward full operations. “Golden Pass LNG will strengthen U.S. energy production and reinforce the nation’s role as a reliable supplier to global markets, enhancing energy security and helping meet worldwide demand,” Exxon said. It added that this milestone reflects an unwavering commitment to safety and continued progress toward full operational status.

The broader market backdrop remains challenging. QatarEnergy, the world’s second-largest LNG exporter, said on 24th March 2026 it will have to declare force majeure on its production, citing the conflict in the Middle East. The company noted that it has shut in facilities accounting for roughly 20% of global LNG supply and warned that damage to those plants could remove about 17% of its current output for up to five years. Against this backdrop, the first LNG production at Golden Pass assumes added importance for global supply dynamics.

The $10 billion Golden Pass project has encountered multiple hurdles since construction began in 2019, including delays, cost overruns, and the bankruptcy of its original lead contractor. Nevertheless, the company said first LNG production sets the stage for the terminal to deliver its first cargo from Sabine Pass, Texas. It added that the plant is positioned to sustain liquefaction operations while meeting its commercial and strategic targets. Ongoing supply disruptions from Qatar have pushed Asian LNG prices higher, prompting some countries to rely more heavily on coal or impose restrictions on energy exports as they navigate the shortages.