United Arab Emirates: Oil, Gas Production Expected to Grow Significantly in 2025

The United Arab Emirates is strengthening its manufacturing base in the oil and gas industry. Following the delivery of two new jack-up platforms (pictured) for offshore hydrocarbon production to Emirati drilling company ADNOC Drilling a few days ago, the United Arab Emirates has the largest fleet of 142 jack-up platforms in the world. According to the Emirati news agency WAM, the two new platforms will come into operation as early as the first quarter of 2025 and will guarantee a significant increase in the Arab state’s oil and gas production. In a research note cited by WAM, US bank JP Morgan wrote that “ADNOC Drilling has behaved as a high-quality, defensive business and has consistently met and exceeded guidance and expectations of global investors. The outstanding performance also reflects positive advancements with ADNOC Drilling’s two joint ventures: Enersol, which acquired four oilfield services technology companies, and Turnwell, which delivered a record initial well delivery time as it accelerates the development of the UAE’s unconventional energy reserves.”

The United Arab Emirates is also very active in the oil and gas sector with foreign countries, including Egypt, which is suffering from a sharp shortage of energy sources during this period of energy transition based on the closure of numerous fossil coal-fired thermal power plants.

Egypt’s Ministry of Petroleum will increase natural gas imports from Israel by 17% starting January 2025. The state-owned Egyptian Natural Gas Holding Company (EGAS) aims to increase the amount of gas it imports by about 170 million cubic feet (4.98 million cubic meters) per day.

Currently, the flow of Israeli gas to Egypt reaches an average of 980 million cubic feet (28.7 million cubic meters) per day, while the Egyptian government would like to increase it to 1.15 billion cubic feet (33.7 million cubic meters) per day starting in January 2025.

China is also very active in the energy sector of the Greater Middle East: on the basis of an intergovernmental agreement between Iraq and China, work has begun on the construction of a new thermal power plant in Nineve governorate, in northern Iraq. The foundation stone was laid by Iraqi Prime Minister Mohammed Shia’ al Sudani. The power plant will include four units and will have a capacity of 700 megawatts of electricity in the first phase, and at full generating capacity will be 350-400 megawatts each for a total of 1400 megawatts of electricity.