AI Strikes Oil in the Middle East

SLB, Wood, and Halliburton drive digital change reshaping the Middle East’s energy frontier

12 Nov 2025

A digital transformation is sweeping through the Middle East’s oilfields as major energy and engineering firms accelerate modernization efforts. Through acquisitions, innovation hubs, and AI-driven systems, the region’s energy infrastructure is becoming more efficient, resilient, and sustainable.

Engineering and consulting firm Wood has launched a Digital & AI Hub in the Middle East to advance digital transformation and decarbonization goals. The hub supports operators seeking to modernize production systems through cloud computing, automation, and advanced analytics. Company officials said the initiative aims to help regional producers improve performance while lowering operational costs and emissions.

A key development came with SLB’s $7.8 billion acquisition of ChampionX, a move that merges SLB’s digital expertise with ChampionX’s chemical and production technologies. The combined platform offers enhanced chemical management and AI-powered optimization tools that could redefine how oilfields are operated and maintained.

“Digital transformation isn’t just about new tools; it’s about resilience,” said a regional digital strategy director at Wood. “By linking chemical systems, sensors, and analytics, operators can anticipate problems and improve efficiency before disruptions occur.”

Halliburton, another major player, is expanding its digital operations across the Middle East, deploying real-time monitoring and predictive maintenance to cut downtime and reduce waste. Analysts say the benefits, including greater transparency, safer operations, and lower environmental impact, are becoming increasingly tangible as digital infrastructure matures.

Still, challenges persist. Legacy equipment, cybersecurity risks, and uneven data governance continue to slow progress. Experts note that collaboration, workforce training, and sustained investment in regional innovation will be key to overcoming these barriers.

As AI, automation, and cloud-based ecosystems take deeper root, the Middle East’s oilfields are evolving into interconnected, data-rich networks. The transformation, once aspirational, now signals a new phase of digital energy production that could shape the region’s industrial future for decades to come.