LONDON: Buoyed by the success of seismic imaging that found an extra billion barrels of oil in the Gulf of Mexico, BP is looking to take its latest technology to Angola and Brazil.
The software used in the Gulf, based on an algorithm created by Xukai Shen, a geophysicist straight out of Stanford University, led to BP discovering the crude in an area where it had long thought there was none to be found.
Industry experts said the scale of the discovery 8 km below BP’s Thunder Horse field, announced last week, marked a major leap forward for deepwater exploration — a costly business known for its low success rate and high risk. It is an example of how technology is helping deepwater make a comeback after a decade when the industry has focused on advances in onshore shale.
The new deposit was found with software known as Full Waveform Inversion (FWI), which is run on a super-computer and analyzes reverberations of seismic soundwaves to produce high-resolution 3D images of ancient layers of rock thousands of meters under the sea bed, helping geologists locate oil and gas.
It is more accurate than previous surveying methods, BP said, and processes data in a matter of days, compared with months or years previously.
While the discovery marked the biggest industry success for digital seismic imaging, the British oil major’s rivals are hot on its heel with similar techniques.
BP scientist John Etgen, the company’s top adviser on seismic imaging, said it aimed to retain its edge with a new machine it has developed, Wolfspar, to be used alongside FWI.
The submarine-like Wolfspar is dragged by a ship through the ocean and emits very low frequency soundwaves, which are particularly effective for penetrating thick salt layers that lie above rocks containing fossil fuels, he added.
Etgen told Reuters that BP planned to roll out Wolfspar alongside FWI in the second half of this year at the Atlantis field in the Gulf of Mexico, where a large salt layer still hides parts of the site. The company plans to expand the use of the technology to other big oil and gas basins, including Brazil next year and Angola at a later stage, he said.
“Seeing through very complex, very distorted salt bodies was the hardest problem we had, the most challenging,” the Houston-based scientist said in an interview.
In both Brazil and Angola, oil deposits are locked under thick salt layers. Brazil’s deepwater oil fields comprise one of the world’s fastest-growing basins in terms of production. BP last year signed a partnership with Brazil’s national oil company Petrobras to develop resources there.
Billion-barrel oil finds are rare, particularly in mature basins like the Gulf of Mexico. But the scale of output from deepwater wells means they can compete with the most low-cost basins in the world, in particular US shale.
BP is far from alone in focusing on technology; all big oil companies have put a growing emphasis on digitalization to reduce costs following the oil price collapse of 2014.
In fact, BP’s spend on R&D was the third lowest among the world’s top publicly traded oil companies in 2017 at $391 million, compared with Exxon Mobil’s $1.1 billion and Royal Dutch Shell’s and Total’s budgets of over $900 million.
Other majors have also made advances. Italy’s Eni has launched the world’s most powerful industrial computer to process seismic data, for example, while France’s Total is using drones to carry out seismic mapping in dense forests such as in Papua New Guinea.
However Barclays analysts said in a report last year that BP and Norway’s Equinor had the most advanced deployment of technology among oil majors.
The seismic breakthrough for BP came when Xukai Shen tested a new idea he had for the FWI algorithm in 2016.
“What happened was magic — the pieces came together,” recalled Etgen. “We finally had the right algorithm with the right data set to create the model of the salt formation and use the model to remove distortion.”
BP says its new seismic technology could save it hundreds of millions of dollars in exploration hours by pinpointing the location of the most promising deposits.
“It allows us to drill the right wells, drill wells at lower costs, drill wells in the best part of the reservoir, drill fewer wells,” Etgen said.
The costs of the technology are a fraction of BP’s oil and gas production budget of around $12 billion per year.
An FWI survey costs up to $20 million to carry out, while processing the data costs up to $10 million, Etgen told Reuters. The annual spend on the super-computer that runs the software is about $20 million.
“The companies that are investing in technology are coming through and winning the race,” Henry Morris, technical director at independent North Sea-focused explorer Azinor Catalyst.
“That’s where BP are doing a good job. It’s working.”
Seeing through salt layers with confidence “adds real value” and saves companies the premiums they must pay to acquire resources through acquisitions, according to Bernstein analysts.
“With high-performance computing, the seismic processing and interpretations are being done in two weeks rather than 1,000 years, as it would have been if they still used 20th century computers,” they said.
“Investors should therefore expect more from BP with this edge.”
After billion-barrel bonanza, BP goes global with seismic tech
After billion-barrel bonanza, BP goes global with seismic tech
- New algorithm allows quicker and cheaper exploration of the most promising oil deposits
- Industry experts said the scale of the discovery 8 km below BP’s Thunder Horse field marked a major leap forward for deepwater exploration
Saudia Cargo, Henan Aviation Group ink deal to bolster routes between Riyadh, Zhengzhou
RIYADH: Saudi Arabia and China are strengthening their air cargo cooperation through a new agreement to create a joint freight hub as part of the Air Silk Road initiative.
The deal, inked between Saudia Cargo and Henan Aviation Group, will see new new routes opened between Riyadh and Zhengzhou, according to a statement.
This correlates with the Saudi Aviation Strategy, which recognizes the need to increase air connectivity with key markets such as China as part of the Kingdom’s goal of transporting 4.5 million tonnes of air cargo by 2030.
The statement further highlighted that the agreement aims to “support integrated logistics services and free trade zone development” and “advance sustainability and cross-border e-commerce through logistics innovation.”
It also seeks to explore investment opportunities in the high-tech and aviation sectors in Zhengzhou.
The MoU came during a meeting held by President of the General Authority of Civil Aviation Abdulaziz bin Abdullah Al-Duailej in Riyadh with Henan Province Vice Governor Sun Shougang to bolster investments between the two countries, the Saudi Press Agency reported.
During the discussion, the two sides discussed strengthening economic relations, focusing on fostering high-quality investments for leading firms and empowering the private sector to seize available opportunities. Both parties also explored enhancing Saudi-Chinese air transport in alignment with Vision 2030 and the Saudi Aviation Strategy.
GACA also held a Saudi-Chinese roundtable to explore collaboration opportunities in logistics zones and air cargo. The meeting included the Chairman of China Henan Aviation Group, along with representatives from national carriers and logistics firms.
The roundtable also included various Saudi government entities, such as the Ministry of Energy, the Ministry of Investment, and the Ministry of Transport and Logistic Services, as well as the Saudi General Authority of Foreign Trade, the Economic Cities and Special Zones Authority, the Industrial Center, and the Air Connectivity Program.
The Chinese delegation conducted a field visit to the Special Integrated Logistics Zone in Riyadh and the cargo zones at King Abdulaziz International Airport in Jeddah, where they observed operational capabilities, cargo-handling facilities and zones, e-commerce shipments, and the digital capabilities and mechanisms in use.
The delegation also visited King Khalid International Airport in Riyadh, where they toured the Airport Operations Control Center to observe the services provided as well as explored the commercial areas, and duty-free store.
China’s COSCO Shipping unveils Dammam office
Chinese company COSCO Shipping has launched its first office in the Kingdom in Dammam in an attempt to enhance operational efficiency and logistical connectivity.
This move also strengthens the firm’s partnership with the Saudi Ports Authority, or Mawani, supports trade growth, and achieves the goals of the nation’s Vision 2030 of consolidating the Kingdom’s position as a global logistics hub.
Saudi NHC continues house building deal with Chinese firm
Saudi Arabia’s National Housing Co. has extended its partnership with China State Construction Engineering Corporation, which aims to build 20,000 housing units within NHC destinations.
The partnership has been realized through the launch of multiple projects across NHC sites in the Eastern Region, Riyadh, and Jeddah, delivering over 3,800 housing units.
It comes as an extension of the Saudi-Chinese partnership series and several agreements signed with Chinese firms during the official visit to China by Minister Al-Hogail and NHC CEO Mohammed bin Saleh Al-Buty.
NHC stated that the partnership extends its efforts to enhance the real estate supply and inject more housing units through quality partnerships with major international companies to establish urban destinations with high-quality standards across the Kingdom.
Saudi Aramco lowers propane, butane prices for May
RIYADH: Saudi Aramco has reduced its official selling prices for propane and butane for May 2025, according to a company statement issued on Tuesday.
The price of propane was cut by $5 per tonne to $610, while butane saw a steeper reduction of $15 per tonne, bringing it to $590. The adjustments reflect shifts in market conditions and follow a downward trend from the previous month.
Propane and butane, both classified as liquefied petroleum gas, are widely used for heating, as vehicle fuel, and in the petrochemical industry. Their differing boiling points make each suitable for distinct industrial and domestic applications.
Aramco’s LPG prices are considered key benchmarks for supply contracts from the Middle East to the Asia-Pacific region.
The global LPG market is undergoing a significant shift as steep tariffs on US imports prompt Chinese buyers to replace American cargoes with supplies from the Middle East.
Meanwhile, US shipments are being redirected to Europe and other parts of Asia.
This realignment is expected to put downward pressure on prices and demand for shale gas byproducts, posing financial challenges for both US shale producers and Chinese petrochemical companies. At the same time, it is likely to drive increased interest in alternative feedstocks such as naphtha.
Middle Eastern suppliers are emerging as key beneficiaries, filling the gap left by reduced US exports to China. In addition, opportunistic buyers in Asian markets like Japan and India are capitalizing on the price drops to secure more favorable deals.
Trump to reduce impact of auto tariffs, commerce secretary says
WASHINGTON: President Donald Trump’s administration will move to reduce the impact of his automotive tariffs on Tuesday by alleviating some duties imposed on foreign parts in domestically manufactured cars and keeping tariffs on cars made abroad from piling on top of other ones, officials said.
“President Trump is building an important partnership with both the domestic automakers and our great American workers,” Commerce Secretary Howard Lutnick said in a statement provided by the White House.
“This deal is a major victory for the President’s trade policy by rewarding companies who manufacture domestically, while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing.”
The Wall Street Journal, which first reported the development, said the move meant car companies paying tariffs would not be charged other levies, such as those on steel and aluminum, and that reimbursements would be given for such tariffs that were already paid.
A White House official confirmed the report and indicated the move would be made official on Tuesday.
Trump is traveling to Michigan on Tuesday to commemorate his first 100 days in office, a period that the Republican president has used to upend the global economic order.
The move to soften the effects of auto levies is the latest by his administration to show some flexibility on tariffs, which have sown turmoil in financial markets, created uncertainty for businesses and sparked fears of a sharp economic slowdown.
Automakers said earlier on Monday they were expecting Trump to issue relief from the auto tariffs ahead of his trip to Michigan, which is home to the Detroit Three automakers and more than 1,000 major auto suppliers.
General Motors, CEO Mary Barra and Ford CEO Jim Farley praised the planned changes. “We believe the president’s leadership is helping level the playing field for companies like GM and allowing us to invest even more in the US economy,” Barra said.
Farley said the changes “will help mitigate the impact of tariffs on automakers, suppliers and consumers.”
Last week, a coalition of US auto industry groups urged Trump not to impose 25 percent tariffs on imported auto parts, warning they would cut vehicle sales and raise prices.
Trump had said earlier he planned to impose tariffs of 25 percent on auto parts no later than May 3.
“Tariffs on auto parts will scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive and less predictable,” the industry groups said in the letter.
The letter from the groups representing GM, Toyota Motor, Volkswagen, Hyundai and others, was sent to US Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent and Commerce’s Lutnick.
“Most auto suppliers are not capitalized for an abrupt tariff induced disruption. Many are already in distress and will face production stoppages, layoffs and bankruptcy,” the letter added, noting “it only takes the failure of one supplier to lead to a shutdown of an automaker’s production line.”
IMF Executive Board to meet on May 9 to review Pakistan’s loan programs
- IMF board’s approval of staff-level agreement with Pakistan will pave the way for disbursement of $1 billion
- Islamabad also secured a new loan program with IMF in March to help build resistance against natural disasters
KARACHI: The International Monetary Fund’s (IMF) Executive Board will meet on May 9 to review its staff-level agreement with Pakistan for an ongoing $7bn bailout program and a new climate resilience loan scheme with Islamabad, the global lender said on its website recently.
The IMF reached a staff-level agreement with Pakistan in March on the first review of the country’s Extended Fund Facility (EFF) and a new $1.3 billion loan arrangement under the Resilience and Sustainability Facility (RSF). Pakistan secured the EFF program last year and deems it crucial to escape a prolonged economic crisis. The staff-level agreement, once approved by the IMF Executive Board, will pave the way for an immediate disbursement of about $1 billion for Pakistan.
The RSF, on the other hand, will support Pakistan’s efforts in building resilience to natural disasters, enhancing budget and investment planning to promote climate adaptation, improve the efficient and productive use of water. It will also help in strengthening Pakistan’s climate information architecture to improve the disclosure of climate risks and align energy sector reforms with mitigation targets.
“May 9, 2025, Pakistan-first review under the extended arrangement under the Extended Fund Facility, request for Modification of Performance Criteria, and request for an arrangement under the Resilience and Sustainability Facility,” the IMF wrote on its website on Friday, disclosing its Executive Board’s schedule.
Pakistan has been prone to natural disasters and consistently ranks among the most severely affected countries in the world due to climate change effects. Unusually heavy rains and melting of glaciers in 2022 triggered flash floods across the country, killing over 1,700 people and inflicting losses over $33 billion.
The IMF program has played a key role in stabilizing Pakistan’s battered economy, which has made some gains in recent months, most notably a reduced inflation rate. The government has said the country is on course for a long-term recovery, while Finance Minister Muhammad Aurangzeb has vowed Islamabad will continue to implement financial reforms mandated by the international lender.
Pakistan secured the $7 billion loan program in September 2024 as it attempted to consolidate its economy since averting a default in 2023. Islamabad has since undertaken several reforms to reduce public debt, maintain low inflation, improve energy sector viability, and accelerate growth.
Pakistan hopes to achieve further economic progress by increasing its exports and attracting foreign investment from regional allies, particularly the Gulf countries. Islamabad has signed memoranda of association (MoUs) regarding trade and investment worth billions of dollars with Saudi Arabia, the United Arab Emirates, Azerbaijan, China and other countries in recent months.
Oil Updates — crude falls as economic jitters dampen demand outlook
SINGAPORE: Crude oil prices fell on Tuesday as investors lowered their demand growth expectations due to the ongoing trade war between the US and China, the world’s two biggest economies.
Brent crude futures fell by 78 cents, or 1.18 percent, to $65.08 per barrel by 10:49 a.m. Saudi time. US West Texas Intermediate crude futures fell 75 cents, or 1.21 percent, to $61.30 a barrel. Both benchmarks fell more than $1 on Monday.
“Markets are closely monitoring the US-China trade negotiations, understanding that deteriorating trade relations between the world’s two largest economies could lead the global economy toward a recession,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
“The lack of confidence in future demand and the absence of concrete signals for demand revival in mainland China will continue to overshadow oil prices.”
US President Donald Trump’s push to reshape world trade by imposing tariffs on all US imports has created a high risk that the global economy will slip into a recession this year, according to a majority of economists in a Reuters poll.
China, hit with the steepest of those tariffs, has responded with its own levies against US imports, stoking a trade war between the top two oil consuming nations. That has prompted analysts to sharply lower their oil demand and price forecasts.
Barclays on Monday cut its 2025 Brent crude price forecast by $4 to $70 a barrel, citing elevated trade tensions and a pivot in production strategy by the OPEC+ group as drivers of a 1 million barrel per day oil supply surplus this year.
Meanwhile, several members of OPEC+, which comprises the Organization of the Petroleum Exporting Countries and its allies, will suggest an acceleration of output hikes for a second consecutive month in June, sources told Reuters last week.
“A substantial (oil) price decrease appears probable if exporting countries boost production,” oil analyst Philip Verleger said in a note.
US crude oil stockpiles also likely rose by about 500,000 barrels in the week ended April 15, according to a preliminary Reuters poll of analysts on Monday.
Industry group American Petroleum Institute will publish its estimates on US oil inventories on Tuesday. Official figures from the Energy Information Administration will follow on Wednesday.
