Production Expansion Planned for 2029

The Absheron Full Field development is expected to substantially increase production from the field, taking overall output to 6 BCMA of gas and 47,000 barrels per day of condensate. Project is expected to start-up in 2029. Gas produced through the development will be supplied to the domestic market as well as exported to Turkey. The exports will use the existing gas infrastructure connecting Azerbaijan to the European gas market, supporting the role of the development in strengthening regional energy security.

Low-Carbon Design and Subsea Production

The project has been designed with a focus on innovation and a low carbon footprint. Gas will be produced by 4 subsea wells before being transported to shore through a subsea pipeline equipped with advanced automation solutions. It will then be processed at a new onshore plant that will be fully electrified and designed to minimize energy consumption and greenhouse gas emissions. As a result of the design, the scope 1 & 2 greenhouse gas emissions intensity of the project stands below 4 kg CO2e/boe.

“We are pleased to announce the launch of Absheron Full Field development, a project that unlocks the full production potential of one of the Caspian Sea’s largest gas discoveries”, said Patrick Pouyanné, Chairman and CEO of TotalEnergies.

“In line with TotalEnergies’ strategy, Absheron Full Field Development is a low cost and low emissions project that will provide a long-term additional gas supply to the domestic and international markets, supporting regional energy security,” he added.

Saudi Arabia and Qatar Face Energy Infrastructure Disruptions

Saudi Arabia has reported disruptions to critical energy infrastructure, including its East-West Pipeline, which serves as an important alternative route for moving crude without relying entirely on the Strait of Hormuz. The pipeline has a reported capacity of around 4-5 million barrels per day, equivalent to roughly 4-5% of global oil supply. Recent attacks temporarily disrupted operations, highlighting the vulnerability of alternative export routes during the conflict.

The disruptions have placed additional focus on the resilience of Middle East energy infrastructure and the importance of maintaining routes that can support oil transportation beyond the Strait of Hormuz. Qatar has also faced damage at the Ras Laffan industrial complex, affecting LNG production infrastructure. The disruption comes as Qatar works with international LNG producers to secure additional supply arrangements. This situation underscores the importance of restoring regional gas infrastructure and maintaining reliable export capacity.

UAE Assets and Gulf Energy Supply Routes

The UAE has likewise experienced disruptions affecting major energy assets, including the Ruwais refinery, Habshan gas facilities, Shah gas field and Fujairah port. Restoration of these facilities could support the gradual normalization of regional refining, gas processing, petrochemical feedstock and energy logistics.

Beyond repairing damaged facilities, the proposed funding could accelerate investments in alternative pipelines, export terminals and other infrastructure designed to diversify energy transportation routes. Such investments could form part of wider efforts to strengthen Middle East energy infrastructure while reducing dependence on established transportation routes. If implemented, the initiative could therefore influence both the pace of infrastructure recovery and the longer-term structure of Gulf energy supply chains. However, the proposal remains under discussion, meaning its final size, participants and deployment timeline could change.

Under the approved arrangement, Jordan will import liquefied natural gas before regasifying it through existing infrastructure at Aqaba. The gas will then be transported through Syria to Lebanon, where it will be used for power generation, according to a Prime Ministry statement. The arrangement also adds to Jordan’s position as a regional energy hub, building on its existing role in supplying Syria with natural gas since the beginning of the year through the same mechanism.

Energy-Efficiency Measures Also Approved

Alongside the decision concerning the natural gas supply, the Cabinet approved steps to implement an energy-efficiency project across government buildings. The project will be based on energy audits and is expected to lower government energy bills by around 20 per cent. Work is scheduled to start at a number of ministries next year, with the programme subsequently set to expand to other government institutions.

Jordan, Syria and Lebanon had signed an agreement in May to cooperate on natural gas supplies after a trilateral meeting in Amman involving the energy ministers of the three countries. Minister of Energy and Mineral Resources Saleh Kharabsheh said at the time that technical preparations had been completed, contracts signed and studies conducted to rehabilitate gas transmission networks. The agreement calls for Jordan to use its infrastructure to import liquefied natural gas, regasify it and pump it to Syria through the Arab Gas Pipeline.

Regional Energy Cooperation Gains Momentum

Syrian Energy Minister Mohammad Bashir said the gas supplied through Jordan had contributed to stabilising Syria’s electricity grid. He also voiced hope that regional electricity interconnection between Jordan, Syria and Lebanon could be restored, noting that four power lines connecting Syria and Lebanon were ready on both sides. Bashir said Syria expects its natural gas production to reach 15 million cubic metres per day by the end of 2026, compared with around 7 million cubic metres currently.

Lebanese Energy and Water Minister Joseph Saddi said cooperation between the three countries was essential to rebuilding Lebanon’s energy sector on more sustainable and efficient foundations. He described the electricity interconnection project as highly important and said Lebanon was working to complete it as quickly as possible. The latest natural gas supply arrangement follows a January 2026 agreement signed by Jordan and Syria in Damascus for the sale and purchase of natural gas to supply Syria through Jordanian territory, supporting electricity generation and helping ease energy shortages. Syria has since begun receiving gas under that agreement, with supplies reaching around 4 million cubic metres per day.

The agreement is part of a contract valued at around $800 million annually, intended to secure stable energy supplies and improve services. Jordan has previously said it is ready to supply energy to Syria and Lebanon once the necessary technical arrangements are completed, particularly the rehabilitation of Syrian networks damaged during the war. Regional electricity interconnection efforts began as far back as 2001 but were suspended in 2012. Attempts to restore the links resumed in 2022 through agreements intended to supply electricity and gas to Lebanon via Syria, although financing challenges delayed implementation.

Among the USD 3.7B deals is a corporate procurement agreement for drilling equipment, alongside a purchase agreement covering OCTG. Aramco Digital has also entered into an MoU with a French counterpart to establish a framework for potential cooperation involving industrial artificial intelligence, virtual twin and digital twin technologies. The potential cooperation could include applications in the oil and gas sector.

Aramco said these partnerships could contribute to operational continuity and efficiency while also supporting technology transfer, capability development and supply chain resilience. The company, however, did not identify the French counterparties involved in the announcement or provide a breakdown of how the potential $3.7 billion value is distributed across the individual agreements.

Supply Chain and Digital Technology Expansion

The USD 3.7B deals form part of Aramco’s wider strategy of localizing and diversifying its procurement network while bringing more advanced digital technology into its upstream and downstream operations. For equipment suppliers, closer procurement relationships with one of the world’s largest oil producers could provide access to significant long-term demand as Saudi Arabia continues investing across its energy and industrial sectors.

Focus on AI and Digital Twins

The digital element of the USD 3.7B deals reflects the wider industry push toward AI, predictive analytics and digital-twin systems. Energy companies are increasingly using these technologies to optimize facilities, reduce downtime and support maintenance and production decisions. Through the MoU signed by Aramco Digital, potential cooperation will focus on industrial artificial intelligence, virtual twin and digital twin technologies, with possible applications in the oil and gas sector.

The agreements also further deepen commercial links between Saudi Arabia and France as Riyadh pursues international technology and industrial partnerships alongside its domestic economic diversification program.

Ankara Deepens Energy Role in Syria

The agreements reflect Ankara’s ambition to become a leading partner in Syria’s reconstruction, building on its close relationship with the government that replaced Bashar Al Assad. Since Mr Al Assad was deposed in December 2024, Turkish officials have maintained more extensive engagement with Damascus than any other foreign government. Turkish President Recep Tayyip Erdogan has also developed close ties with Syria’s new President, Ahmad Al Shara, placing Ankara in a dominant position as Syria moves through its economic and political transition.

The latest plans add Syria to an expanding list of overseas frontiers for Türkiye’s state oil driller. TPAO is currently developing an exploration well off the coast of Somalia and earlier this year secured a licence for offshore blocks in Libya. Ankara has expanded its deep-sea drilling fleet as it works to secure energy resources overseas, while its planned activity in Syria further broadens its oil and gas exploration footprint.

Syria Seeks Investment to Rebuild Energy Sector

Syria was previously a significant oil and gas producer in the eastern Mediterranean, according to the US Energy Information Administration, but 14 years of civil war severely damaged the industry. Oil output has fallen by about 80 per cent from a prewar peak of 380,000 barrels a day. The Syrian Energy Ministry said crude production reached 14.8 million barrels in the first half of 2026, equal to about 82,000 barrels a day, according to the state-run Sana news agency on Tuesday. The government has estimated that more than $30 billion is required to rehabilitate the sector, presenting a potentially significant opportunity for foreign energy companies and increasing interest in oil and gas exploration.

Gulf Companies Also Target Syrian Energy Opportunities

Gulf energy companies are likewise assessing opportunities in Syria. The Abu Dhabi-listed Adnoc Drilling identified Syria as a growth market alongside Egypt and Iraq. Damascus has also secured an agreement with ConocoPhillips in partnership with Novaterra, a venture linked to Syrian-British billionaire Ayman Al Asfari. In addition, Syria reached a deal with the UAE’s Dana Gas following the lifting of US sanctions late last year. Gulf states pledged $28 billion in investment across the Syrian economy in 2025 alone. Türkiye and Syria are also expected to commission new infrastructure over the coming weeks that will triple electricity transmission capacity between the two countries to more than 800 megawatts, Mr Bayraktar said.

Site Selection and Infrastructure Details

The consortium is currently evaluating three potential locations across the Gulf Cooperation Council (GCC) member states to host the new Gulf refinery project. Beyond the core processing plant, the site is slated to include a deepwater port, storage facilities, and export infrastructure. The project partners have indicated that the facility will be positioned outside the Strait of Hormuz. Furthermore, plans exist to integrate carbon management facilities and sustainable aviation fuel processing at a later stage.

Context of Regional Refining Capacity

The announcement follows recent disruptions to regional refining capacity. Saudi Aramco experienced a shutdown at its Jazan refinery after an attack by Yemeni Houthis, which removed 400,000 barrels per day from the global supply. Reports indicate that repairs at the Jazan facility are projected to continue until mid-August. This loss of refining capacity has intensified existing pressures on the global fuel supply chain.

The broader market for crude oil and refined products has seen increased volatility due to ongoing conflicts in the Persian Gulf, the Red Sea, and Russia. These factors have contributed to historically high crack spreads as demand for fuels continues to outpace available supply. While Russia has initiated the restart of certain facilities damaged by drone strikes, its ongoing ban on diesel exports remains a factor in the current fuel supply environment. The MERA Oil consortium moves forward with its plans despite these complex conditions facing the six Gulf states. The development remains a significant initiative for the expansion of crude oil infrastructure within the Gulf states.

The talks centered on expanding cooperation in natural gas, increasing the involvement of Egyptian companies in Jordan’s energy infrastructure projects, and identifying joint investment opportunities in mining, with a particular focus on phosphate production and downstream mineral industries.

Badawi said Egypt is keen to deepen cooperation with Jordan in both the energy and mining sectors, building on the two countries’ longstanding partnership in natural gas. As part of the discussions, both sides also reviewed ways to expand the presence of Egyptian petroleum companies within Jordan’s energy sector. Companies including Fajr Jordan Egyptian, Petrojet, Enppi, and Gas Misr are already active in the Jordanian market, while Eprom, Town Gas, and Modern Gas are expected to participate in future projects related to natural gas distribution, operations, and maintenance.

Joint Technical Working Groups to Advance Future Implementation

Al-Kharabsheh said cooperation between Jordan and Egypt has become a model for Arab energy integration, noting that previous joint projects have laid a strong foundation for expanding strategic partnerships that deliver long-term economic benefits for both countries. He also announced that Jordan is approaching the signing of agreements with two Egyptian companies to carry out natural gas distribution projects in the industrial cities of Ma’an and Al Muwaqqar.

These projects are expected to complement the continuing expansion of gas networks in Mafraq and Zarqa, supporting broader use of natural gas across Jordan’s industrial sector and further strengthening energy cooperation between the two nations.

The meeting marked the beginning of Badawi’s visit to the Jordanian capital and was attended by Egypt’s Ambassador to Jordan Khaled El Abyad, Yasser Salah El Din, Chairperson of Fajr Jordan Egyptian Natural Gas Company, Mohamed El Bagoury, Head of the Legal Affairs Department at Egypt’s Ministry of Petroleum and Mineral Resources, along with senior officials from both countries.

At the conclusion of the discussions, the two ministers agreed to establish joint technical working groups to follow up on the proposals presented during the meeting. These groups will develop implementation mechanisms covering natural gas, mining, value-added industries, infrastructure development, and investment partnerships between Egyptian and Jordanian companies, creating a structured framework for advancing future bilateral initiatives.

Enhancing Regional Energy Security Through Infrastructure

The existing East-West pipeline infrastructure can manage up to 7 million barrels per day (bpd). Currently, approximately 5 million bpd are designated for export through the Yanbu port, while 2 million bpd supply refineries on the western coast. Preliminary discussions are underway regarding a potential East-West Pipeline expansion by up to 2 million bpd. This development is viewed as a critical step toward strengthening regional energy security, potentially involving upgrades to current facilities or the development of entirely new pipelines, including a smaller line specifically for oil products.

Collaborative Efforts for Crude Oil Transport

Neighboring nations including Kuwait, Bahrain, and Qatar currently lack reliable alternatives to the Strait of Hormuz. While Iraq possesses a pipeline to Turkey, it remains hindered by technical and political disputes, often running well below its intended capacity.

Implementing the East-West pipeline expansion would be a multi-year project requiring billions of dollars in investment. It would also necessitate adjustments to the pricing mechanisms for Saudi crude.

The urgency for a Strait of Hormuz bypass has intensified following recent regional blockades that forced producers to halt significant production, leading to global price volatility. Although some crude oil transport flows have resumed, they have not yet returned to levels seen before the recent disruptions.

Strategic Expansion of Mediterranean Gas Resources

Currently, the energy requirements of the country are primarily met by several offshore gas fields located along the coast, with the Tamar site serving as a primary source for internal use. Meanwhile, the Leviathan site, situated approximately 130 kilometers offshore, handles the majority of the nation’s energy exports, which are largely directed toward Egypt and Jordan.

The newly announced Mediterranean natural gas exploration initiative will be executed in three distinct phases and is expected to span approximately one year. Chevron, the current operator of the major existing fields, has been granted permission to participate in this process as part of a joint consortium.

Production Requirements and Future Export Potential

Israeli law mandates a specific distribution for any new discoveries made during natural gas exploration activities. The first 50 billion cubic meters (bcm) of gas identified must be reserved exclusively for local consumption. Any volumes discovered beyond that threshold will be divided between domestic needs and international markets. Current estimates from the Petroleum Commissioner Chen Bar Yoseph suggest that up to 400 bcm of gas may still be undiscovered in these offshore gas fields, which could significantly alter the current production landscape.

At present, the nation consumes 14 bcm annually and exports an equivalent amount. While there is notable interest in Mediterranean natural gas from European markets, the lack of a direct pipeline remains a logistical hurdle. However, officials suggest that if the latest search results in substantial new gas reserves, the possibility of establishing infrastructure for European supply could be revisited. This follows previous licensing successes where companies such as BP, Socar, and NewMed Energy were granted rights to explore the region’s maritime wealth.

The conversation centered primarily on restoring operations through the Kirkuk-Ceyhan pipeline and coordinating efforts to enhance Iraqi petroleum supplies reaching European markets. This Iraq-Türkiye oil pipeline cooperation initiative addresses mounting concerns about export vulnerabilities stemming from regional instability and operational disruptions affecting the Gulf maritime corridor.

Strategic Importance of Alternative Export Routes

For Iraq, the restoration and expansion of oil exports via the Iraq-Türkiye oil pipeline cooperation channels would establish a critical alternative outlet for crude oil production. Recent tensions and operational challenges in the Gulf region have underscored Iraq’s vulnerability when relying solely on southern export ports and marine shipping lanes through congested waterways. These disruptions have directly constrained Iraqi export flows and intensified pressure on national finances, making the Iraq-Türkiye oil pipeline cooperation initiative increasingly vital for the country’s resilience.

Comprehensive Bilateral Cooperation Framework

Beyond oil transportation discussions, the conversations between Al-Zaidi and Erdogan addressed multiple dimensions of bilateral cooperation. Both leaders prioritized water resource management agreements and emphasized the necessity for sustained dialogue to establish frameworks serving the interests of both nations.

The discussions also explored potential collaboration in natural gas development and agricultural sectors as Baghdad and Ankara work toward comprehensive economic integration. Additionally, the Development Road project, a multi-billion-dollar transit corridor connecting Iraq with Turkey and ultimately European markets, featured prominently in negotiations. Both parties reaffirmed their commitment to advancing this transformational infrastructure initiative, which they characterized as a significant undertaking capable of reshaping regional logistics and commerce.

Investment and Private Sector Engagement

Prime Minister Al-Zaidi extended an invitation to Turkish enterprises to expand their investment presence throughout Iraq, highlighting opportunities across multiple economic sectors. He underscored the critical role that private sector participation plays in strengthening economic ties between the neighboring nations and building sustainable business relationships.

President Erdogan reaffirmed his invitation for Al-Zaidi to visit Ankara, where both governments indicated their intention to resume comprehensive talks. These anticipated meetings will address energy cooperation, infrastructure development initiatives, and implementation timelines for the Development Road project.