KazMunayGas and LUKOIL will build a canal in the Caspian Sea to develop the Kalamkas-Sea and Khazar fields. This will have to be done due to the drop in the Caspian Sea level. Thus, the shallowing of the sea in the Ural Saddle area prevents the passage of ships. This was reported by Interfax.

For the development of the shelf, ships are needed to deliver equipment, fragments of production platforms, personnel, fuel, chemical reagents, food products, etc. It is also necessary to remove waste water and waste to coastal bases.

Therefore, it is planned to develop a project for the construction of a marine shipping canal through the Ural Saddle for the development of the fields. After the delivery of the stationary production platforms, the canal will no longer be used.

The main route of the canal is located north of the Caspian Itbalyty seal reserve and is 75.1 km long. It is planned to remove about 24.35 million square meters of soil. The alternative route, 91.411 km long, runs along the Gurevsky fairway. In this case, it will be necessary to remove over 34.3 million square meters of soil.

However, the Gurevsky fairway is used by ships to pass from the Middle Caspian to the North. The construction of the canal will limit this navigation route, the initiators of the construction explain. The presence of bottom soil dumps along the canal sharply increases the likelihood of ships maneuvering before the canal is built running aground.

Dredging is planned to be carried out in the navigation seasons of 2026-2029 (from April to November).

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“The claim is fully granted,” the registry states.

The court made this decision during a session held on July 17.

As previously reported, Sakhalin Drilling Services LLC filed the lawsuit on February 12, with the preliminary hearing being postponed several times. The nature of the claim is not disclosed, but it is stated to concern the performance of obligations under contracts.

Sakhalin Drilling Services was part of Parker Drilling until September 2022 and was previously known as Parker Drilling Far East Services. From September 2001 until the separation, the company was responsible for the operation and maintenance of drilling rigs involved in the Sakhalin-1 project.

Since September 2022, Sakhalin Drilling Services has been operating as an independent drilling company, providing drilling and material-technical support services for the Sakhalin-1 project. The operations include two offshore platforms — Orlan and Berkut (located at the Arkutin-Dagi field) and two onshore rigs for extended-reach drilling (ERD) — Yastreb and Krechet (located at the Chayvo and Odoptu fields). Currently, the Yastreb rig is in mothball mode.

According to Russia’s Unified State Register of Legal Entities (EGRUL), Sakhalin Drilling Services LLC is owned by Sakhalin Drilling LLC, of which Ruslan Rozeev and Antonina Sosnovskaya (who is also the General Director of Sakhalin Drilling Services) each hold 4.995%. The remaining 90.01% is on the company’s balance sheet.

PDMS provides onshore and offshore drilling services, as well as project management, construction, and operations support. The company operates globally.

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Geomechanical modeling is one of the key stages in preparing large-scale production projects. Based on seismic, electrical, gravimetric, and other types of geological exploration data, complex virtual reservoir models are created. These reflect subsurface properties and help forecast changes in those properties during production.

The partners will develop a suite of digital tools for creating high-precision geological models of deposits. The software, powered by artificial intelligence technologies, will enable prompt evaluation of reserves, productivity, and other reservoir characteristics. The digital solution will aid in studying complex fields and choosing the most effective methods for their development.

Gazprom Neft, Innopolis University, and engineering firm Nedra Digital will combine their expertise in laboratory research, exploration of current and prospective oil-producing regions, and interpretation of seismic data using artificial intelligence technologies.

“Geomechanical modeling is a key element of modern geological exploration. Together with our partners, we will create a digital system that, at the planning stage of oil and gas projects, can predict dozens of potential complications and identify optimal development solutions. This will ensure not only high precision and efficiency in our decision-making but also safety in production operations,” said Aleksei Vashkevich, Deputy Head of the Technological Development Department for Exploration and Production at Gazprom Neft.

“This joint effort will strengthen and expand Russian expertise in geomechanical modeling and the digitalization of the oil and gas sector. Such collaboration will improve the safety and economic efficiency of field development, reduce operational risks, and accelerate the implementation of digital solutions in industrial practice,” said Iskander Bariev, Director of Innopolis University.

“As part of this tripartite cooperation, we will identify the required functionality for the software. Our experts will conduct both a technical analysis and a market potential assessment of the developed software for its subsequent integration into the oil and gas sector,” said Fedor Burkov, CEO of Nedra Digital.

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The contract area is located in the Kazakh sector of the Caspian Sea, 120 km southwest of the Kashagan field. The Kalamkas-Sea field was discovered in 2002, and Khazar in 2007. In 2023, PJSC LUKOIL and JSC NC KazMunayGas signed a number of agreements regarding the development of the Kalamkas-Sea, Khazar, and Auezov subsurface area in Kazakhstan’s Caspian sector. The parties signed a purchase and sale agreement for a 50% stake in the charter capital of Kalamkas-Khazar Operating LLP and an agreement on financing terms for the operator’s activities.

The Kalamkas-Sea–Khazar project provides for the production of oil and associated gas at offshore facilities using stationary offshore production platforms. Marine operations will be supported by vessels delivering equipment, platform segments, personnel, fuel, chemical reagents, food, and other essential materials, and removing wastewater and production and consumption waste to onshore support bases.

“Due to the decline in the Caspian Sea level and the resulting shallowing in the Ural Saddle area, it is necessary to build a marine channel to access the Kalamkas-Sea and Khazar fields,” the documents explain.

At present, the subsoil user plans to develop a project for the construction of a navigation channel through the Ural Saddle to support field development. After delivery of the stationary platforms, the channel is not planned to be operated further.

The main route is located north of the Caspian Seal Reserve (“Kaspiy itbalyty”) and has a length of 75.114 km, with an estimated dredged volume of 24.35 million cubic meters. The alternative route runs through the so-called Guryev fairway, with a length of 91.411 km and a dredging volume of 34.385 million cubic meters.

“Constructing the marine channel along this route presents several constraints. The Guryev fairway is currently used by vessels navigating from the Middle to the Northern Caspian. Channel excavation would restrict this navigation route. Additionally, the presence of dredged material dumps along the channel significantly increases the risk of groundingfor vessels maneuvering before the channel is completed,” the construction initiators note.

Dredging operations are scheduled for the navigation seasons of 2026–2029, with work carried out from April to November each year.

Commercial production of first oil at the Kalamkas-Sea and Khazar fields is planned for 2028–2029. Total recoverable reserves are estimated at 48.5 million tonnes of oil and 19 billion cubic meters of gas. According to KMG, expected production is around 4 million tonnes per year (80,000 barrels per day). The production plateau is projected to last at least five years. Preliminary estimates by the Kazakh company put investment volume at approximately $6.4 billion.

The final investment decision on the Kalamkas-Sea, Khazar, and Auezov project will be made by the partners in 2025.

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The bill outlines a “plug-to-drill” approach through 2036: in order to drill one new well, operators would need to plug two old ones. Under certain conditions, drillers would no longer need approval from the California Department of Geologic Energy Management (CalGem).

This move represents another step by the governor to ease regulatory pressure on the state’s oil and gas industry after years of intensive oversight.

Newsom appears to be softening his stance on the oil sector, especially as refineries operated by Phillips 66 and Valero Energy Corp. are shutting down in California. Meanwhile, state lawmakers point to declining living standards for California’s 40 million residents.

In a memo accompanying the leaked draft of the bill, 12 environmental organizations argue that the legislation gives a carte blanche for unrestricted drilling throughout the state over the next decade.

In response, a representative of the governor stated that environmental groups are only sharing parts of the bill’s text. “We continue to work with the legislature on a policy that will stabilize California’s oil market while ensuring safe, reliable, and affordable motor fuel supplies,” the statement reads.

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The deal had been delayed for over a year due to arbitration claims from Exxon and Chinese CNOOC, who are partners with Hess in the Guyana project. They insisted that they should be offered the 30% Hess stake first. Chevron and Hess maintained that the acquisition was of the entire Hess company, not just a specific asset. Experts note that the dispute centered around the interpretation of just a few words in the confidential partnership agreement between Exxon, Hess, and CNOOC.

Since Reuters reported it as a win, the ICC tribunal evidently sided with the merging companies. The ICC arbitration procedure does not allow for appeals.

Exxon stated that it disagreed with the decision of the ICC arbitration panel, but respects the arbitration process. Exxon CEO Darren Woods said the company is reviewing the arbitration ruling to determine whether future contracts should include clearer language to protect its pre-emptive rights. He added that relations with Chevron on other projects remained cooperative.

While arbitration was ongoing, Chevron had been preparing to close the deal with Hess within 48 hours of the court decision and to finalize operational matters within 45 days. Teams from Chevron and Hess were already working on integration plans, including IT systems, and Hess employees were informed about potential severance programs.

This acquisition — one of the largest in the energy sector in the past 10 years — is a key component of Chevron CEO Mike Wirth’s strategy to improve company performance. The main “prize” of the deal is Hess’s stake in the highly promising Guyanese oilfield, considered one of the fastest-growing petroleum provinces in the world.

“NiK”: This legal battle clearly highlights the enormous value of the Stabroek Field. It already generates substantial profits for the Exxon-led consortium, has transformed Guyana into one of the world’s fastest-growing economies, and still holds potential for new oil discoveries. Hess’s profit from the Guyana project has grown significantly over the past year, while Chevron’s adjusted earnings for the same period have declined.

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According to preliminary data presented by the company, recoverable reserves at the new field are estimated in the range of 25 million to 40 million barrels of oil equivalent, reports Reuters.

In its statement, Vaar Energi said it plans to conduct a detailed assessment of the discovery and is considering the possibility of developing the field by tying it back to the existing Fenja oil and gas field.

Bijan Mossavar-Rahmani, Chairman of DNO, a company that holds a 7.5% stake in the field, stated in a separate comment that, together with Vaar Energi, they aim to bring the field into production on a faster timeline than is typical under Norwegian standards.

According to data on license distribution, Vaar Energi, the project operator, holds 75% of the exploration license, while Sval Energi owns the remaining 17.5%.

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Additionally, gas condensate production in the country decreased by 8.1% in the first half of the year, reaching 574.7 thousand tonnes.

Gasoline production in Uzbekistan declined by 14.8% to 575.6 thousand tonnes, while diesel fuel productionincreased by 10.4% to 557.5 thousand tonnes during the same period.

At the end of last year, natural gas production in Uzbekistan fell by 4.5% to 44.597 billion cubic meters, and oil production dropped by 8.5% to 713.4 thousand tonnes.

The production capacity of Uzbekistan’s oil and gas industry previously allowed for the extraction of around 70 billion cubic meters of natural gas and 8 million tonnes of liquid hydrocarbons annually. However, due to reserve depletionand technological losses, hydrocarbon production has significantly declined over the past 15–20 years.

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“The proposed investment of ten billion dollars in East Kalimantan will be directed toward the development of offshore natural gas fields in the Makassar Strait region, specifically the Jangkrik and Merapas fields,” the minister was quoted as saying by Antara News Agency.

According to the Ministry of Energy and Mineral Resources, the Italian oil and gas company plans to commence production at the two adjacent fields in 2027, which will boost gas supply to meet both domestic and export market demands.

Eni operates in 64 countries with a workforce of over 31,000 employees. The company is engaged in the exploration, development, and production of oil and natural gas, as well as refining, marketing, trading, and transportation of raw materials, along with operations in renewable energy.

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In the ever-changing world of the oil and gas EPC market, upgradation and exploration are not just buzzwords but a bottom line. From the deserts of the Middle East to offshore rigs in Brazil, engineering and construction giants are working on billion-dollar projects that shape how the world powers itself. The global oil and gas EPC market was more than USD 55.4 billion in 2024, and the reports from Research Nester say it could reach over USD 138.3 billion by 2037. Digital tools like AI, 3D modelling, and modular builds are becoming the norm in today’s oil and gas world. So much is happening worldwide, including a green energy mix, carbon capture talk, and more offshore projects. It’s a space full of hustle, change, and risk. In this blog, let’s explore how this industry keeps reshaping itself, step by step.

Top Trends Supporting the Transformation of the Oil and Gas EPC Market

It’s already the middle of 2025, and there are loads of changes happening in the EPC market. With new technologies, ever-rising demand, and renewed sustainable spree, the EPC market is adapting fast. Here’s a look at the latest trends shaping the industry and what to expect soon.

• LNG Tanking and Petrochemical – the Real Expansion of Hybrid Energy

LNG tanking and petrochemical expansion are turning into real growth engines, and in the future, there is a huge prospect for these energies. In 2024, global LNG trade hit over 401 million metric tons, and Asia’s demand supported the development of new regasification terminals and shipping hubs. With China and North America adding millions of tons of annual capacity, many bigger projects are sprouting too. A big example is Lotte Chemical Titan’s Indonesian arm’s newly commissioned cracker in Banten province. Starting in September 2025, it’ll supply 350,000 tonnes of ethylene per year to Lotte Chemical Indonesia Nusantara over 10 years, backed by a USD 3 billion agreement. Another one is India’s ₹61,077 crore (over USD 7.4 billion) investment in Indian Oil’s project in Odisha. It includes refinery, polypropylene, MEG, PX, PTA plants, and a textile park, and is projected to support over 15,000 jobs and boost Odisha’s industrial growth. All these expansions demonstrate that the demand for LNG and petrochemicals is rising, and it’ll boom in the coming years.

• Automation & Technology Play a Huge Role

EPC is no longer about manual blueprints and slow approvals. Digitalization and automation are everywhere. Digital twins, AI, IoT, 3D‑BIM tools, and modular construction are taking over the EPC industry, too. More than 48% of EPC jobs now use modular build, 36% digital engineering, and 29% AI‑based systems. For instance, Shell and ADNOC companies are using digital twins to watch their plants in real-time, spotting pressure changes before they create trouble. These tools help manage risk, tighten delivery, and save money. In fact, companies are having 37% gains through digital twins, and 33% safety improvements using robotics.

Drones can survey a field in just a few hours and increasing time efficiency. Sensors on equipment predict failures before they happen. Sensors and IoT on platforms are cutting budgets by 20%, downtime by 25%, and equipment mishaps by almost 40%. At CERAWeek in March 2025, operators showed off AI-driven drilling wins such as BP guiding drill bits automatically, Devon boosting efficiency 15%, and Chevron flying drones over shale to flag issues early. Moreover, around 50% of oil and gas firms see digital tools boosting safety and decarbonization, and at least 85% of companies said that automation is important for the expansion of the oil and gas EPC sector.

• Sustainability – A Non-Negotiable Aspect

The oil and gas industry is constantly adapting new technologies to comply with the recent sustainable changes. Many new EPC contracts now include carbon capture, hydrogen production, or biofuels. In Europe, projects like Norway’s Northern Lights CO2 storage are blending traditional oil expertise with green tech. In the U.S., public-type projects made up around 60% of EPC revenue in 2023, with the private side growing fast, gas‑related EPC projects up by at least 8% annually. McDermott, for example, has been working on offshore wind installations alongside its oil and gas work. This shift completely depends on changing client preferences and stricter regulations. Some giant producers have set “net-zero” targets by 2050. TotalEnergies, for one, cut methane emissions by 55% between 2020 and 2024, hitting its goals a year ahead. Oil and Gas Climate Initiative (OGCI) members slashed upstream methane intensity almost 50% since 2017, aiming for near-zero by 2030.

Top 5 Nations in Oil & Gas EPC (Engineering, Procurement, and Construction) Market

Wrapping Up

The next five years will see more hybrid projects, oil and gas mixed with hydrogen or carbon capture. Digital tools will keep cutting costs, and labor shortages might push more automation. One thing is apparent, and that is EPC in oil and gas isn’t fading. It’s upgrading itself. Companies that accept this flow faster, using tech, going green, and managing risks, will lead the market. The rest will struggle to keep up. For now, the oil and gas EPC market remains a high-stakes game, where only the smartest players win. And with energy demand still strong, the race is far from over.

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