Global Oil Market Update – September 2025

This month’s newsletter highlights critical developments in the petroleum sector, ranging from geopolitical disruptions to new exploration initiatives. These updates reflect the interconnected nature of global energy markets and their influence on supply chains, investment, and energy security.

Ukrainian Long-Range Drones Strike Russian Oil Port

• Major Disruption: Ukrainian forces deployed long-range drones against one of Russia’s largest oil ports, sparking fires and halting crude transfers for several hours. The attack not only caused immediate physical damage but also raised concerns about the vulnerability of Russian energy infrastructure and the ripple effect on European fuel markets. Analysts suggest that recurring strikes could pressure Russia to reroute exports or temporarily reduce its supply capacity.

EGPC Strikes Three New Exploration Agreements Across Egypt

• Upstream Growth: The Egyptian General Petroleum Corporation (EGPC) secured three new exploration agreements with international partners, covering both onshore and offshore blocks. These deals are expected to bring in millions of dollars in foreign direct investment and advanced technology to enhance exploration efficiency. Officials note that the agreements could significantly expand Egypt’s proven reserves and reinforce its role as a regional energy hub in North Africa and the Mediterranean.

PM Modi Announces Launch of National Deepwater Initiative

• Energy Independence: Indian Prime Minister Narendra Modi unveiled the National Deepwater Initiative, a strategic program designed to accelerate offshore exploration in deepwater basins. The initiative will provide incentives for private and public sector companies to explore untapped reserves, with the goal of reducing India’s dependence on imported crude oil. Industry experts believe this program could reshape India’s upstream sector and attract global players eager to participate in frontier exploration.

TotalEnergies & KOGAS Sign 10-Year LNG Supply Deal

• Energy Security: TotalEnergies has signed a 10-year agreement with Korea Gas Corporation (KOGAS) to supply liquefied natural gas (LNG) to South Korea. The deal underscores Asia’s growing demand for secure long-term LNG supply amid volatile spot markets. By locking in this contract, KOGAS ensures energy stability while TotalEnergies strengthens its position as a global LNG leader. Market watchers expect this agreement to influence LNG pricing structures across the Asia-Pacific region.

China and Russia Fuel Iran’s Oil Production Growth

• Joint Ventures: Despite ongoing international sanctions, Iran has increased oil production with the support of China and Russia. Through joint ventures and advanced technology transfers, Iran is modernizing its upstream infrastructure and expanding refining capabilities. This cooperation not only boosts Iran’s export potential but also strengthens the energy alliances among these three nations. Analysts warn that rising Iranian output could complicate OPEC’s supply management strategies and shift market dynamics in the Middle East.

Author: Petroleum Newsletter Team

Sources: Reuters, Egypt Oil & Gas, Business Standard, Al Jazeera