Major international oil companies are signaling continued interest in expanding their presence in the Middle East despite ongoing conflicts and geopolitical uncertainties in the region. Representatives from Shell, BP, TotalEnergies, ConocoPhillips, and Chevron voiced optimism about the long-term investment opportunities presented by the Middle East’s abundant, low-cost oil and gas reserves during industry events this week.
Executives from these firms are preparing to attend the World Petroleum Congress in Riyadh, Saudi Arabia, this weekend, despite rising security concerns linked to ongoing hostilities involving Iran-backed Houthi rebels. Saudi Arabia’s invitation to the event underscores the kingdom’s intent to reaffirm strong ties with global energy companies and explore new partnerships amid shifting regional dynamics.
Patrick Pouyanné, CEO of France’s TotalEnergies, which holds the largest footprint among international oil companies in the Gulf, emphasized the region’s strategic importance. Pouyanné noted the company’s ambition to expand investments across Middle Eastern countries, even if that entails developing new infrastructure such as pipelines to diversify crude export routes. He stressed the necessity of unlocking access through the Strait of Hormuz by pursuing alternatives in Abu Dhabi, Iraq, and Syria.
Shell’s CEO Wael Sawan expressed confidence in the quality of Middle Eastern assets and the capability of regional governments to bring resources to market. Similarly, BP chief Meg O’Neill highlighted her company’s historical roots in the Middle East and affirmed BP’s commitment to remain engaged despite the conflict’s human and political toll.
The kingdom of Saudi Arabia and the United Arab Emirates—which control some of the world’s largest and lowest-cost hydrocarbon reserves—remain critical targets for foreign investment. Traditionally, their national oil companies, Saudi Aramco and Abu Dhabi’s Adnoc, have tightly controlled access to these reserves, limiting the scope of foreign involvement or offering limited financial returns to partners.
During a public address in London, Saudi Aramco’s head of strategy Ashraf Al Ghazzawi reiterated the region’s dominance, noting that the Middle East holds about half of the world’s oil reserves along with significant spare production capacity. He urged the industry to maintain a long-term view beyond current tensions. However, some industry observers pointed out that both Aramco and Adnoc have increasingly sought to diversify their holdings internationally in recent years.
Executives also highlighted evolving approaches by Middle Eastern governments aimed at attracting foreign investment. Ryan Lance, executive chair of ConocoPhillips, discussed how countries like Iraq and Syria have begun offering more competitive contracts that reflect geopolitical risks. “We need a contract that accommodates the risk,” Lance said, acknowledging previous difficulties the company faced investing in Iraq over the past quarter-century.
Chevron CEO Mike Wirth described the evolving economics in the region as increasingly favorable, noting that talks to take over Iraq’s West Qurna oilfield, previously operated by Russia’s Lukoil, are nearing completion. Wirth acknowledged ongoing risks but said that potential returns are beginning to justify the challenges.
Overall, despite the war’s disruption and the lack of a clear resolution to regional conflict, international oil majors remain focused on the Middle East’s long-term potential as a vital source of global energy supply.