We previously reported that global upstream operators will cut investment for the second consecutive year in 2026, with capital spending expected to fall at least 2% to 3% year-on-year, and more than 5% compared to 2024 levels, as the industry navigates oil prices below $60 a barrel while maintaining focus on long-term resilience. Still, Wood Mackenzie has predicted that operators will continue to add new strategic growth opportunities in various regions around the world. That is, the Middle East and North Africa is scheduled to add at least 20 billion barrels of oil equivalent through the 2030s through licensing rounds and contract negotiations.
Libya’s National Oil Corporation (NOC) launched its first round of oil exploration tenders in more than 17 years in March 2025, with companies expected to bid and open bids in February 2026, covering 22 onshore and offshore blocks to boost production and attract foreign investment after years of instability. The move aligns with Libya’s goal of reaching production of 2 million barrels per day (bpd), a level close to pre-crisis production in 2011. This initiative is considered a historic moment, opening an important and resource-rich market to international energy companies.
Meanwhile, Iraq, Kuwait, Oman and Syria are indeed poised to offer significant new oil drilling opportunities, driven by the construction of export pipelines by Iraq and Oman, Kuwait’s expansion offshore, and the opening of Syria after years of conflict to new investment, signaling significant developments in the Middle East upstream sector. These countries are focusing on field diversification and revitalization, with Iraq and Oman planning a major pipeline from Basra to Duqm and Syria attracting new partners for its redevelopment. Iraq and Oman have a preliminary agreement to build a pipeline from Basra to Duqm, diversifying Iraq’s export routes beyond the Ceyhan pipeline. Oman’s Duqm port will house storage facilities, making it a key export hub, bypassing the Strait of Hormuz choke points.
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Kuwait is expanding offshore drilling and production, with major finds such as the Nokhetha discovery. This is a major offshore oil and gas find by Kuwait Oil Company (KOC) east of Failaka Island, containing estimated reserves of 2.1 billion barrels of light oil and 5.1 trillion cubic feet of gas (about 3.2 billion barrels of oil equivalent). This discovery marked a major milestone in Kuwait’s offshore exploration program, part of a broader strategy to boost national energy security, and subsequent finds like Jaza reinforced these efforts, highlighted by their high-quality, low-emission resources. ADNOC Drilling is expanding into Kuwait and Oman by acquiring a 70% stake in SLB’s (NYSE:SLB) land drilling rig business, securing six rigs in Oman and two in Kuwait, with plans to double that fleet and continue growing in the region through new tenders and acquisitions, marking a significant regional expansion.