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A decision by the Opec+ bloc to raise production from April has put more downward pressure on crude prices – and hence Saudi and other producer governments’ revenues for the year ahead. Crude prices may struggle to stay above $70/bbl, while Riyadh’s fiscal position is also being tested by Saudi Aramco’s falling profits and dividend payments.

The Omani economy grew at a healthy 1.9% through most of 2024, which was due to increased non-oil sector activity, as the hydrocarbons economy was affected by lower prices and lower output last year – which is being countered by efforts to develop new markets for LNG exports.

The Ministry of Energy and Minerals has launched a bidding round for three onshore blocks, including one bordering Yemen and Saudi Arabia which was last offered in 2023.

Manama is to increase the proportion of relatively limited crude export revenues that flow into its Future Generations Reserve Fund, which has still not recovered from the drawdowns the government made during the Covid-19 pandemic in 2020.

Adnoc Gas, now under new chief executive Fatima Al-Nuaimi, broke ground at Ruwais in November and has since awarded contracts for an LNG pre-conditioning plant, compression facilities and pipelines.

Roc Oil Company has completed its Tethys Oil acquisition, giving the Australian firm a stake in five Omani blocks with production of some 8,800 b/d.

Abu Dhabi National Energy Company has appointed former BP chief executive Bernard Looney and Blackstone president Jon Gray, alongside Sultan Ahmed Al-Jaber and other senior local figures, to the board of its new mega-venture XRG.

QatarEnergy has added to its existing holdings in two promising areas off the coast of Namibia, where TotalEnergies made the giant Venus oil discovery in February 2022.

Saudi Power Procurement Company has awarded contracts to develop and operate four CCGT plants with 7GW-plus combined generating capacity to two consortia who will receive 25-year power purchase agreements.

The 9.6m t/yr liquefied natural gas project was originally due to be developed in Fujairah, but was moved to Abu Dhabi emirate in early 2023. Once complete in 2029, it will more than double the UAE’s LNG production capacity to 15.6m t/yr.

QatarEnergy has bought a 23% interest in Egypt’s North El-Dabaa (H4) Block in the Mediterranean Sea for an undisclosed amount.

Oman’s state-owned energy group OQ is preparing to list a minority stake in its Base Industries subsidiary on the Muscat Stock Exchange, following the bourse debut of its OQ Exploration and Production division in late October.

In a sector reorganisation, Sharjah ruler Sheikh Sultan Bin Mohammed Bin Saqr Al-Qasimi has set up an Energy Council, renamed the Petroleum Council as the Petroleum Department and appointed Sharjah National Oil Corporation (SNOC) chief executive Hatem Mohammed Al-Mosa as director general of both bodies.

In a move that points to continued turbulence in the executive, Kuwait Emir Sheikh Mishaal Ahmed Al-Jaber Al-Sabah appointed Tareq Suleiman Ahmed Al-Roumi as oil minister in late October. Sheikh Mishaal also appointed Jalal Sayed Abdulmuhsin Al-Tabtabei as education minister, replacing Adel Mohammed Al-Adwani.

Saudi Arabia is said to be considering dropping its unofficial price target of $100/bbl in favour of chasing market share. Concerns around the wars involving Israel and Iran and its proxies could help to sustain oil prices, although there is a risk of a disorderly break-up of the Opec+ agreement between oil cartel Opec and other major producers including Russia.