Oil & gas news,
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Aramco hands NMDC Energy three offshore projects worth $763 million

NMDC Energy told the Abu Dhabi Securities Exchange on 23 October that it has received a letter of award from Saudi Aramco for three new offshore projects, worth AED 2.8 billion (about $763 million), to be completed in 18 to 23 months.

What we know

The disclosure covers offshore EPC works on three projects. NMDC Energy has worked on Aramco offshore projects under a long-term agreement; the company did not give the names or locations of the new projects.

Diesel at $6.28 a gallon: why refineries cannot keep up

US retail diesel averaged $6.276 a gallon in the week of 19 October, $2.66 more than a year earlier. Gasoline rose far less, to $4.284 (+$1.27). The gap is the story: the world is short of diesel in particular, not of fuel in general.

Why diesel, and why now

The IEA's October report lists three causes. Lower refinery activity and product exports in the Middle East and Russia: combined net gasoil exports from the two fell to 820,000 b/d in September, down more than 60% on a year earlier. Refiners running crude grades their units were not configured for, because preferred feedstocks are restricted. And a tight jet fuel market, which pushed refiners to maximise kerosene and so make less diesel from the same barrel.

The agency expects gasoil supply to fall short of demand again in 4Q26, and lost inventories are unlikely to be rebuilt before the second half of 2027.

Does the world need more refineries?

Before this year the forecast pointed the other way. The IEA's Oil 2025 outlook expected 4.2 mb/d of new refining capacity by 2030, partly offset by 1.6 mb/d of closures, with growth in Asia, especially China and India, and closures in Europe and the United States.

2026 shows how little slack there is in diesel when a few large exporters produce less. The projects moving now are mostly expansions and upgrades of refineries that already run, rather than new sites. Two signed this year, both with named contractors: Dung Quat in Vietnam and HPCL's Mumbai refinery in India.

HPCL Mumbai refinery upgrade: large EPC contract to Technip Energies

Hindustan Petroleum (HPCL) has awarded Technip Energies an engineering, procurement and construction contract for the Lube Modernization and Bottom Upgradation (LMBU) project at its Mumbai refinery in Maharashtra.

What it does

The project modernises HPCL's production of lube oil base stocks and upgrades heavier refinery streams into higher-value products. Technip Energies will book the order in its Project Delivery backlog in 3Q26.

P-82 leaves Singapore for Búzios: second Seatrium FPSO in under a month

Petrobras says the P-82 floating production unit has left Seatrium's Tuas Boulevard Yard in Singapore for the Búzios field in Brazil's pre-salt. It follows P-80, which sailed at the end of September.

Why it matters

The unit sails with its crew on board, straight to location, to cut the time before mooring and well hook-up. Petrobras expects Búzios to reach 11 operating platforms by the end of 2027.

Dung Quat refinery expansion: 148,000 to 171,000 b/d

Vietnam's BSR is upgrading and expanding its Dung Quat refinery in Quang Ngai province. At an investor meeting on 15 October the company said it is accelerating its key investment projects.

What changes

Crude capacity rises from 148,000 to 171,000 b/d, the plant will take a wider range of crudes and produce Euro 5 fuels, and the refinery keeps running during construction.

Latest from BSR's 15 October investor meeting, as reported by Vietnam's Ministry of Industry and Trade magazine: site levelling was about 90% complete at the start of October, and BSR aims to hand the whole site over to the EPC contractor during 2026.

Ghazlan 1: sales gas delivery system to GAS Arabian Services

Saudi Power Procurement Company (SPPC), as principal buyer, has awarded GAS Arabian Services a contract to build the sales gas delivery system to Ghazlan 1.

One barrel, three fuels: why refiners cannot just make more diesel

A 42-gallon barrel of crude, run through an average US refinery, gives about 19-20 gallons of gasoline, 11-13 gallons of distillate (mostly sold as diesel) and 3-5 gallons of jet fuel.

The trade-off

Diesel and jet fuel come from the same middle part of the barrel. This year, when jet fuel was tight, refiners maximised kerosene and made less diesel (IEA). Changing the mix takes hardware: conversion units that crack heavier streams into lighter, more valuable products. HPCL's new integrated hydrocracker in Mumbai is one example of this kind of unit.