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ADNOC Invests Over $750m in Developing Artificial Islands in Abu Dhabi

ADNOC’s investment in drilling wells falls under its pursuit to support its production capacity expansion to 5 million barrels per day (mmbpd) by 2030. Asharq Al-Awsat Arabic
ADNOC’s investment in drilling wells falls under its pursuit to support its production capacity expansion to 5 million barrels per day (mmbpd) by 2030. Asharq Al-Awsat Arabic
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ADNOC Invests Over $750m in Developing Artificial Islands in Abu Dhabi

ADNOC’s investment in drilling wells falls under its pursuit to support its production capacity expansion to 5 million barrels per day (mmbpd) by 2030. Asharq Al-Awsat Arabic
ADNOC’s investment in drilling wells falls under its pursuit to support its production capacity expansion to 5 million barrels per day (mmbpd) by 2030. Asharq Al-Awsat Arabic

Abu Dhabi National Oil Company (ADNOC) announced an investment of $763.7 million (AED2.8 billion) in integrated rigless services across six of its artificial islands in the Upper Zakum and Satah Al Razboot (SARB) fields to support its production capacity expansion to 5 million barrels per day (mmbpd) by 2030.

The investment is in the form of three contracts awarded by ADNOC Offshore to Schlumberger, ADNOC Drilling, and Halliburton after a competitive tender process.

Schlumberger’s share of the award is valued at $381.18 million (AED1.4 billion); ADNOC Drilling’s share is valued at $228.71 million (AED839.58 million), and Halliburton’s share is valued at $153.87 million (AED564.85 million).

Over 80 percent of the total award value will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program over the 5-year duration of the contracts.

ADNOC Upstream Executive Director Yaser Saeed Almazrouei said: “These important awards for integrated rigless services will drive efficiencies of drilling and related services and optimize costs in our Offshore operations as we ramp up our drilling activities to increase our production capacity and enable gas self-sufficiency for the UAE.”

The scope of the contracts includes coiled tubing services with thru-tubing downhole tools, stimulation services, including equipment and chemicals/fluid systems, surface well testing services, wireline, and production logging services and tools, saturation monitoring, and well integrity.

CEO of ADNOC Offshore Ahmad Saqer Al-Suwaidi said: “These contracts are an important contributor to ADNOC Offshore’s plans to build our production capacity to over 2 million barrels a day in the coming years to support the ADNOC Group’s smart growth strategy.

The award follows a highly competitive bid process, which included a rigorous assessment of how much of the contract value would support the growth and diversification of the UAE’s economy through ADNOC’s In-Country Value Program.”

ADNOC Drilling’s transformation into a fully integrated drilling services provider followed the award to Baker Hughes of a 5 percent share in the company, which is now capable of delivering start-to-finish drilling and well-construction services onshore and offshore with proven efficiency gains.

As of May 2021, ADNOC Drilling has delivered over 180 IDS wells since 2018, achieving an efficiency improvement of close to 50 percent, which resulted in over $210 million (AED767 million) savings.

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Syria Signs Gas Sector Contract with US Energy Giant

A screen displays the logo for ConocoPhillips on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
A screen displays the logo for ConocoPhillips on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
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Syria Signs Gas Sector Contract with US Energy Giant

A screen displays the logo for ConocoPhillips on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
A screen displays the logo for ConocoPhillips on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid

Syria on Tuesday signed a contract involving US oil giant ConocoPhillips to develop the country's gas sector, state media reported, as Damascus seeks to attract international energy investment.

Damascus previously signed memoranda of understanding on energy with international companies including Chevron as well as HKN Energy, which has begun managing and operating oil fields recently handed over to the government by Syrian Kurdish authorities.

State news agency SANA reported that the state-owned Syrian Petroleum Company signed "a contract with US companies ConocoPhillips and Novaterra with the aim of developing a number of gas fields in Syria and increasing production from existing fields".

The move seeks to "contribute to supporting the energy system and strengthening gas supplies required for the electricity sector and other vital sectors," it said.

In Washington last week, Syrian Petroleum Company CEO Youssef Qablawi said it would be "the biggest contract" to be signed since the new authorities took power after the December 2024 ouster of longtime ruler Bashar al-Assad.

At the signing ceremony in Damascus, Qablawi said the move was "an important step in the process of developing the gas sector in Syria".

"Through this cooperation, we look forward to increasing production, improving operational capabilities and supporting the energy system," he added.

A Syrian delegation headed by Energy Minister Mohammad al-Bashir held talks in Washington last week on investment prospects in energy and infrastructure in Syria and possible partnerships with the US private sector.

After years of civil war that fractured the country and ravaged its industries and infrastructure, Syria is seeking to modernize its energy infrastructure, attract investment and boost development as it pushes on a path of economic recovery, particularly after the lifting of Assad-era sanctions.

Syria aims to produce one million barrels of oil per day by 2030 and is seeking to broaden international cooperation on exploration and production.

Last month, Syria signed a memorandum of understanding with ConocoPhillips, France's TotalEnergies and Qatar's QatarEnergy, on offshore oil and gas exploration.

In February, it also signed a preliminary deal with US energy giant Chevron and Qatari firm Power International for offshore energy exploration.

Damascus now controls all the country's oil and gas fields, after taking over areas previously under Kurdish control in the north and northeast this year.

The deputy governor of the northeastern Hasakah province, Ahmed al-Hilali, on Monday said HKN Energy had begun managing and operating those fields.

Business

Oil Drops About 4% to Three-month Low as Markets Weigh US-Iran Deal

AUSTIN, TEXAS - JUNE 15: In an aerial view, oil storage tanks are seen at the Sunoco LP Fuel Supply Terminal on June 15, 2026 in Austin, Texas. Brandon Bell/Getty Images/AFP
AUSTIN, TEXAS - JUNE 15: In an aerial view, oil storage tanks are seen at the Sunoco LP Fuel Supply Terminal on June 15, 2026 in Austin, Texas. Brandon Bell/Getty Images/AFP
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Oil Drops About 4% to Three-month Low as Markets Weigh US-Iran Deal

AUSTIN, TEXAS - JUNE 15: In an aerial view, oil storage tanks are seen at the Sunoco LP Fuel Supply Terminal on June 15, 2026 in Austin, Texas. Brandon Bell/Getty Images/AFP
AUSTIN, TEXAS - JUNE 15: In an aerial view, oil storage tanks are seen at the Sunoco LP Fuel Supply Terminal on June 15, 2026 in Austin, Texas. Brandon Bell/Getty Images/AFP

Oil prices fell about 4% on Tuesday to fresh three-month lows as markets weighed prospects for a resumption of supplies through the Strait of Hormuz alongside weaker physical demand and scant details on a preliminary deal to end the Iran war.

Brent crude futures were down $3.20, or 3.85%, at $79.97 a barrel at 1253 GMT. They earlier touched $79.61, the lowest since March 3, and the first time they have fallen below $80 since that day.

US West Texas Intermediate was down $3.52, or 4.36%, at $77.23 a barrel. WTI's intra-day nadir of $76.88 was the lowest since March 10.

Before the war started on February 28, Brent and WTI futures were trading around $65-70 per barrel.

Oil prices sank nearly 5% on Monday after US President Donald Trump announced an interim deal to end the US-Israeli war with Iran, though full details have not been released.

Iranian Foreign Minister Abbas Araqchi said on Tuesday that Iran and the US would start a new round of talks in Switzerland on Friday to reach a final agreement.

"Near-term downside risks remain as the market prices a faster reopening of the Strait and a return of stranded barrels," Saxo Bank analyst Ole Hansen said.

However, depleted inventories, seasonal demand, strategic stock rebuilding and lingering geopolitical uncertainty suggest the path back to pre-war prices may be far less straightforward than current market optimism implies, Hansen said.

Business

Gold Rises over 1% as US-Iran Peace Deal Optimism Eases Rate Hike Bets

Two people look at gold jewelry outside a shop in the Grand Bazaar in Istanbul (AFP)
Two people look at gold jewelry outside a shop in the Grand Bazaar in Istanbul (AFP)
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Gold Rises over 1% as US-Iran Peace Deal Optimism Eases Rate Hike Bets

Two people look at gold jewelry outside a shop in the Grand Bazaar in Istanbul (AFP)
Two people look at gold jewelry outside a shop in the Grand Bazaar in Istanbul (AFP)

Gold prices rose more than 1% on Tuesday as expectations of an interest rate hike from the US Federal Reserve this year eased, following an interim US–Iran peace deal that sent oil prices and inflation fears lower.

Spot gold was up 0.9% at $4,343.51 per ounce as of 9:10 a.m. ET (1310 GMT). Prices touched their highest level since June 5 in the previous session.

US gold futures delivery added 0.2% to $4,358.90.

The interim deal announced by US President Donald Trump would extend a tenuous ceasefire agreed upon in April by another 60 days and reopen the Strait of Hormuz, which Iran has effectively blocked since the US and Israel attacked Iran in February.

"Supporting the market over the last two sessions has been the prospects of an agreement between the US and Iran in regards to ending the war," said David Meger, director of metals trading at High Ridge Futures, Reuters reported.

"What we've seen as a result of that has been short-term interest rates drop, energy prices come down, and less likelihood that the Fed will need to raise interest rates later this year."

Brent crude futures have dropped below $80 a barrel for the first time since early March, after sinking nearly 5% on Monday after the announcement of the interim deal.

Markets have pared back expectations for a Fed rate hike in December to 58% from around 70% earlier, according to the CME FedWatch tool.

Bullion has been under pressure since the onset of the US-Israeli war against Iran, as rising oil prices fuel expectations of prolonged high interest rates. Despite being an inflation hedge, non-yielding gold suffers in a high interest rate environment.

Market participants are now awaiting a series of central bank meetings this week, including the Fed's rate decision on Wednesday, the first under new Chair Kevin Warsh.

Spot silver rose 0.7% to $70.51 per ounce. Platinum gained 2.7% to $1,812.76, and palladium climbed 0.9% to $1,360.75.