Oil Review Middle East issue 2 2012 by Alain Charles Publishing

ORME 2 2012 Cover_ORMETHREE05COVER.qxd 21/02/2012 15:46 Page 1

Vol 15 Issue Two 2012

www.oilreview.me

UK £10, USA $16.50

Sonatrach plans major investments in Algeria New Libya - new problems Shell reveals new growth agenda Statoil to spend big on new wells NOGA - the power behind Bahrain

Extending seismic bandwidth

Multiphase metering flow assurance challenges The next generation of volume visualisation has arrived Pioneering artificial lift solutions See us at both events

“We do not just want to rely on gas and take it for granted. We want to see gas as being part of the solution and not part of the problem.” Datuk (Dr) Abdul Rahim Hashim, President, International Gas Union (IGU). See page 32

al ion r g re cto e th s se 7 9 ing ga 9 rv l & ce 1 e S oi in s

a ye

S01 ORME 2 2012 Start_Layout 1 22/02/2012 15:59 Page 2

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S01 ORME 2 2012 Start_Layout 1 22/02/2012 15:59 Page 3

Vol 15 Issue Two 2012

Contents

www.oilreview.me

UK £10, USA $16.50

Sonatrach plans major investments in Algeria

Extending seismic bandwidth

New Libya - new problems Shell reveals new growth agenda

Columns

Statoil to spend big on new wells NOGA - the power behind Bahrain

Industry news and executives’ calendar

Multiphase metering flow assurance challenges The next generation of volume visualisation has arrived Pioneering artificial lift solutions

Analysis

See us at both events

Libya The biggest post-transitional challenges are yet to come.

ars

Market Outlook

l na gio re ctor e th s se 7 9 ing ga 19 rv & Se oil nce si

Maximise production by extending seismic bandwidth. See page 77. Cover image courtesy of CGG Veritas Data Library

Oil prices will remain volatile, according to Kuwait’s Global Investment House.

Exploration & Production 20

Developments The latest exploration and production news from around the region.

Gas 30

Interview

Datuk (Dr) Abdul Rahim Hashim, President of the International Gas Union (IGU), spoke to Oil Review about the hurdles facing the regional gas sector.

Petrochemicals & Refining 36

Interview KBR’s Regional President, Khaled Abu-Nasrah discusses refining technology.

NOGA Review 43

Profile

Why Bahrain’s National Oil & Gas Authority (NOGA) is the power behind the Kingdom.

Exhibitions and Conferences

Editor’s note DESCRIBED AS A ‘family’ by one delegate in 2010, the world’s geoscientists will be descending on Bahrain this month for a 400-plus series of first-rate technical events, including optional training courses and extended field trips to major resource features in the nearby Gulf. Since its foundation back in 1998, when around 600 delegates were attracted, the GEO series has gone from strength to strength, drawing in more than 1,900 for the combined GEO 2010 package. The programme has always had a strong appeal to geoscientists from across the causeway in particular, drawing in nearly 1,700 from Saudi Arabia last time. The events are also particularly popular with scientific personnel from the UAE and Kuwait, as well as from the host Kingdom of course. This year’s conference theme is Shaping the Future of Geoscience in the Middle East. Featuring some 450 individual presentations including posters, more than 50 spoken presentations will be made in the five separate meeting halls. More than an hour is allocated to each, so there will be plenty of time for thorough analysis and discussion. Meanwhile, with demand for gas for infrastructure and power needs ever increasing, the pursuit for the development of non-conventional gas deposits persists across the region with sour hydrocarbon field recovery gaining priority in many countries. The issue will be addressed at the forthcoming Sour Gas Technology (SOGAT) event in Abu Dhabi. The overall scope of SOGAT 2012 will examine all the ongoing international sour field projects as well as the beneficial uses of sulphur by-products, particularly through the latest research findings in Qatar. There are some events of exceptionally high quality in the region this year, and Oil Review will bring you news of each and every one.

SOGAT 2012 The forthcoming Abu Dhabi event will focus on the latest sour gas technologies.

IT and Communications Technical Focus

GEO 2012

Innovations

fine tradition of first-rate technical events.

Introducing some of the latest available technologies for the oil & gas sector.

Flow Assurance

The 10th Middle East Geosciences Conference and Exhibition promises to continue a

Rig Count

Flow assurance is a growing area of investment as operators across the world focus on

Arabic Section

streamlining and reducing costs.

Volume Visualisation

The next generation of volume visualisation has arrived, says Philip Neri of Paradigm.

Industry News

Gas

Managing Editor: David Clancy Editorial and Design team: Bob Adams, Andrew Croft, Prabhu Dev, Immanuel Devadoss, Ranganath GS, Prashant AP, Genaro Santos, Zsa Tebbit and Julian Walker

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Oil Review Middle East Issue Two 2012 3

Industry News & Events

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Iraq’s offshore oil facility opens

Endress+Hauser sets up Abu Dhabi base

THE IRAQ CRUDE Oil Export Expansion Project (ICOEE) has achieved its "first oil ready for start-up" milestone which will help the country’s planned increase in crude exports. Iraq opened the first of four planned offshore mooring facilities. The units extend into the sea from the southern oil terminal of Fao and have a potential export capacity of 850,000 barrels a day, Falah al-Amri, chairman of the State Oil Marketing Organization, was quoted by Bloomberg as saying. This first phase of the expansion is intended to increase the country's crude oil export capacity by 1.8 million barrels per day (MMBPD) of additional production. A further increase of another 1.8 MMBPD in Iraq's export capacity is intended to be delivered on completion of phase 2 of the expansion. This achievement represents the start of the final commissioning activities leading to readiness of the facilities to load first oil cargo onto a tanker for export. "We have established an excellent working relationship with South Oil Company and Iraq's Ministry of Oil, and this teamwork has been a key success factor in achieving this "first oil ready for start-up" milestone,”said Umberto della Sala, chief operating officer of Foster Wheeler AG. The Director General of SOC, Mr Dheyaa Jaafar Hyjam said: "This forms the first of many steps that would see Iraq's export capacity rising to restore Iraq to its rightful place as a world-class oil producer." Foster Wheeler executed the FEED for the two-phase capacity increase and is currently the project management consultant (PMC) for the EPC of both phases of the project. Souh Oil Company, a company under the Ministry of Oil of the Republic of Iraq, with Foster Wheeler's assistance, purchased long-lead items and free-issued these to the EPC contractors in order to assure the schedule.

ENDRESS+HAUSER OPENED A new office in Abu Dhabi which will allow the company to increase its focus on the oil and gas business in the region and strengthens its presence in the UAE facilitating the support of large projects in an even more effective way. The new office in Abu Dhabi will continue the close cooperation with Endress+Hauser's sales representative, Descon Automation Control System. Due to extensive investments in the oil and gas sector, and also in public infrastructure (water and waste water industry), Abu Dhabi is an important place for the Endress+Hauser group. The company will concentrate on developments in the oil and gas/petrochemical industry and the Michael Ziesemer, COO of the pertaining large international Endress+Hauser group projects. A total of 20 associates in Abu Dhabi ensure that Endress+Hauser can serve its customers in an even better way. The team is supported by the Endress+Hauser Middle East Support Center in Dubai which has been coordinating the activities of the company in the region for five years. "Our goal is to be able to react to the swiftly growing market in a faster manner and to be still closer to our customers," said Michael Ziesemer, COO of the Endress+Hauser group.

Aggreko’s growing hydrocarbon business

Oil demand in 2012 cut by IEA

PHIL BURNS, MANAGING Director of Aggreko Middle East, discussed the company’s continued expansion around the region in the hydrocarbon industry. At a recent media briefing, Burns talked about the company’s involvement in the rapidly developing oil and gas market and what Aggreko provides in terms of generator rental and temperature control An Aggreko rental power package at a refinery solutions. According to Burns the company has being securing a lot of work in the oil and gas sector, where the company provides specialist equipment required for working both on and offshore. Mr Burns highlighted Aggreko’s range of projects in the oil and gas sector around the region. In Oman, the company supplies power for some 185 oil well heads around the Sultanate, which is very challenging when two or three generators are needed in the desert where temperatures can reach 62 degrees. In the UAE, Aggreko provides power to oil platforms and rigs which highlights the company’s solution diversity. Iraq is seen as a massive opportunity, according to Burns. Aggreko has been operating there since 2003 and oil and gas commercial operations are now picking up in the war torn country. The petrochemical industry is also a big market for Aggreko and the company does a lot of work with Sabic helping out with plant shutdowns. “We are very busy in Saudi Arabia both in Yanub and Jubail,” said Burns. This is why Aggreko has opened a satellite operation near Yanub.

THE INTERNATIONAL ENERGY Agency (IEA) in its latest oil report cut its estimates for world oil demand growth this year. In the report, the IEA lowered its forecast for global oil demand in 2012 to average 89.9mn bpd, 300,000 bpd lower than its previous estimate a month ago. As a result, the IEA now expects world oil demand to grow by just 800,000 bpd in 2012, compared with 1.1mn bpd previously, and marginally up from 700,000 bpd in 2011. But while the deceleration of global economic growth this year is now forecast to exceed that registered in 2011, the IEA said the feedthrough to oil demand should be mitigated by more stable oil prices. "Despite the economic backdrop darkening further in 2012... growth marginally accelerates as prices, based on the futures strip, are unlikely to have the same negative influence on demand as in 2011," the IEA said in its report. While the demand outlook has weakened, the IEA said world oil supply is continuing to climb as Libyan output ramps up and as growing OPEC NGLs production more than compensate for a slip in non-OPEC supplies. The IEA said global oil supply rose by 100,000 bpd to 90.2mn bpd in January, with rebounding output from Libya partially offset by declines in non-OPEC countries. OPEC crude oil supply averaged 30.9mn bpd in January, up by 80,000 bpd from December levels, and the highest level from the cartel since October 2008, the IEA said. The IEA reiterated that the perceived risk of the impact of international sanctions on Iranian crude supplies continues to support prices. "Perceptions of impending supply issues are clearly placing a floor under oil prices for now," the IEA said. While sanctions on Iran are already having an impact on crude oil trade flows in Europe, Asia and the Middle East, the world oil market has enough flexibility to cope with any loss in Iranian supplies this year, the IEA said. As a result of lower demand outlook, the IEA cut its estimates for the call on OPEC crude this year by 100,000 bpd to 29.9mn bpd. The 2012 "call" is now 700,000 bpd below the 2011 average, the IEA stated.

4 Oil Review Middle East Issue Two 2012

S01 ORME 2 2012 Start_Layout 1 22/02/2012 15:59 Page 5

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Industry News & Events

S01 ORME 2 2012 Start_Layout 1 22/02/2012 15:59 Page 6

Sonatrach plans big investment in Algeria

Unique Maritime Group expands its services

SONATRACH IS LOOKING to invest US$68 billion in the country's energy sector over the next four years, according to its chief executive. "We plan to invest US$68 billion between now and 2016. This includes several activities," Sonatrach CEO Abdelhamid Zerguine was reported as saying by Reuters. Sonatrach has made unconventional, shale, gas exploration a priority. Sonatrach vice-president in charge of upstream, Said Sahnoun, said the first shale gas well will be drilled in May and a second one in October this year. Sonatrach Group has also produced 206 mn TOE (tonnes oil equivalent) of Sonatrach headquarters in Oran oil in 2011, including 148mn TOE produced by Sonatrach alone, according to preliminary figures put forward by Mr. Zerguine. The group exports reached nearly US$72 billion in 2011, against US$57 billion in 2010, an increase of 26 per cent.

UNIQUE MARITIME GROUP (UMG) is continuing to expand its services and capabilities and the company held a round table to discuss its new regional and international vision 'Strength in Depth'. Harry Gandhi, CEO of UMG said, "We will develop Unique Maritime Group to be the most successful subsea and offshore company recognised worldwide for technical excellence, innovation and quality service." The group's head office has recently expanded its building infrastructure to enable current and future operating requirement, representing a total investment of around US$1.2mn. The work area consisting of office space, warehouses and shaded work zones, facilitates larger volumes of work with a clear segregation and control over various activities, resulting in improved quality of the products assembled by UMG. "The group's global sales for 2011 saw an increase of 12 per cent on previous year and we achieved the targets we had set. The Middle East contributed almost 65 per cent of the overall revenue to the group. I expect a slow recovery in our target sectors to continue and as such have increased targets for this year," said Ian Huggins, General Manager of Unique Systems FZE. "It takes a unique company to provide in-depth support, offshore and onshore, above water and below water. We are proud that the group continues to expand its services, capabilities and geographical infrastructure to better support the success of our customers", added Mr Huggins.

Adnoc and CNPC sign MoU on upstream projects ABU DHABI NATIONAL Oil Company (Adnoc) signed a strategic partnership deal with China National Petroleum Corporation (CNPC) to collaborate in upstream projects in undeveloped areas. The agreement was signed between SPC secretary-general Joan Salem Al Dhahiri and CNPC president Jian Jiemin. "CNPC will conduct technical and economic studies to assess undeveloped areas and will forward them to Adnoc," WAM reported. The areas will be identified by the Adnoc establishes closer ties Supreme Petroleum Council. The with CNPC agreement also aims at cooperating in areas of petrochemical development, technical services, engineering and construction services.

6 Oil Review Middle East Issue Two 2012

Iranian oil embargo could see oil prices skyrocket: IMF THE INTERNATIONAL MONETARY Fund (IMF) has warned oil prices could jump by as much as 20-30 per cent if Iranian exports are disrupted by US and EU sanctions. In a note the IMF warned that if the West imposed financial sanctions on Iran, it would â&#x20AC;&#x153;be tantamount to an oil embargoâ&#x20AC;?, and would lead to a decline in supplies of about 1.5mn bpd from Iran. This volume of disruption would be comparable to losses in output from Libya last year due to civil war. Moreover, if Iran goes ahead with a threat to blockade oil exports via the Straits of Hormuz in the Gulf, the IMF said the shock could be even greater. About a quarter of all oil produced globally, and some 40 per cent of all oil exports - including those from Iraq, Kuwait and Saudi Arabia - are shipped through the Straits each year. "A blockade of the Strait of Hormuz would constitute, and be perceived by markets to presage, sharply heightened global geopolitical tension involving a much larger and unprecedented disruption," the IMF said in a note to the Group of 20 leading industrialised countries. The IMF's concerns about a large Iran-related oil supply shock or an actual disruption has risen recently as the West increases pressure on Iran. Its view is based on the fact that oil stockpiles of major oil consuming countries are lower than usual, while the big oil exporting countries have limited short-term ability to increase supply, the IMF said.

S02 ORME 2 2012 News C_Layout 1 22/02/2012 16:00 Page 7

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Industry News & Events

S02 ORME 2 2012 News C_Layout 1 22/02/2012 16:00 Page 8

ION’s regional push

Emerson signs MoU with Petroleum Institute

ION’S NEW CEO and President, Brian Hanson, spoke exclusively to Oil Review Middle East about the company’s Middle East strategy at the official opening of their new international headquarters in Jebel Ali, Dubai. Hanson commented, “The Middle East is a very important market for us, and this office provides us with proximity to NOC’s, especially those who are Brian Hanson, CEO really looking at innovative technologies, and the and President of Ion important marine and land contractors. We are now supporting them from our new headquarters in the region. One of the main reasons we opened an international headquarters here was proximity to customers. We can really touch a lot of customers out of Dubai, and not just in the Middle East.” The office opening in February also overlapped with ION’s annual Middle East Technical Forum held in Abu Dhabi. This was the sixth forum that ION held in the region for industry leaders to debate today’s toughest E&P challenges. “The seminar went very well and was attended by around 75 delegates – representing regional NOC’s including ADMA, ADNOC, ZADCO, PDO, and local and international contractors. It provided a great cross section of papers, everything from the equipment side to new processing techniques,” Hanson added. Hanson concluded, “Among the many challenges the oil and gas industry faces in the Middle East today are imaging deep gas reservoirs and improving the productivity of existing fields through higher-resolution images and a better understanding of the reservoir characteristics. To help them overcome these challenges, we are rolling out new technologies not only from ION but also from INOVA (our land equipment JV company with BGP). There is a tremendous opportunity to have these new technologies adopted in the Middle East, and this will be our main thrust this year.”

EMERSON PROCESS MANAGEMENT has signed a Memorandum of Understanding (MoU) with the Petroleum Institute of Abu Dhabi (PI), to support the PI engineering programs through technology transfers, and development programs. The MoU which will be in effect for four years with the option for annual renewal. Emerson will provide joint seminars, workshops and training courses in automation, control and instrumentation and offer PI students summer internship opportunities and field trips to manufacturing plants, assembly plants and service centres. Emerson will also donate a life-sized plant representation with a functioning control system and instrumentation. In addition, the MoU involves the provision of a tailored program to PI students utilising Emerson's Steve Sonnenberg, President of Emerson Process PlantWeb University and Management and Dr. Ismail Tag, Acting President Control Loop Foundation and Provost, PI courses with the capacity to track progress and provide formal qualifications. Emerson's accredited Flow Calibration and Service facility in Abu Dhabi will be used to support PI's R&D and graduation projects. Under the terms of the MoU, PI will provide infrastructure and space for the permanent installation of the donated equipment and will promote the courses and seminars internally and, if required, externally to any of the ADNOC group of companies.

Arab oil deposits surged in 2011 A MASSIVE REVISION of Iraq's oil wealth boosted the overall Arab recoverable crude deposits by nearly 29 billion barrels at the start of 2011 but the region's proven gas resources remain almost unchanged. Official data showed Iraq's extractable oil reserves were revised up by almost 28 billion barrels through 2010 after the conflict-battered country launched mega development plans in its hydrocarbon sector. 523_AGG OIL REVIEW ME at AD_(AW) ol.ai From around 115 billion barrels the start

8 Oil Review Middle East Issue Two 2012

of 2009, Iraq's proven oil reserves were upgraded to nearly 143.1 billion barrels at the beginning of 2011. This means Iraq probably controlled the world's second largest oil wealth at the end of that year after Saudi Arabia. The surge in Iraq's oil resources boosted the combined Arab proven crude reserves to a record high of 712 billion barrels at the start of 2011 from around 683.6 billion at the start 1 1/26/12 1:17 to PM the figures by the of 2010, according

Kuwaiti-based Organization of Arab Petroleum Exporting Countries (OAPEC). A breakdown showed the reserves of most other regional nations remained almost unchanged in the absence of new major hydrocarbon discoveries. In contrast, the Arab region's gas reserves recorded no major increase, edging up slightly to 54.6 trillion cubic metres at the end of 2010 from around 54.5 trillion cubic metres at the end of 2009, OAPEC said.

S02 ORME 2 2012 News C_Layout 1 22/02/2012 16:00 Page 9

Industry News & Events

S02 ORME 2 2012 News C_Layout 1 22/02/2012 16:00 Page 10

Executives Calendar 2012 MARCH 2012 4-6

Saudi Safety & Security

DAMMAM

www.sss-arabia.com

4-7

GEO 2012

MANAMA

www.geo2012.com

6-7

Saudi Downstream

JUBAIL

www.saudidownstream.com

11-15

7th Annual Asset Integrity Management Week

ABU DHABI

www.iqpc.com

13-15

Interspill 2012

LONDON

www.interspill2012.com

25-28

Middle East Downstream Week

ABU DHABI

www.wraconferences.com

25-29

SOGAT 2012

ABU DHABI

www.sogat.org

27-29

SPE Intelligent Energy International

UTRECHT

www.intelligentenergyevent.com

2-4

SPE HSE & Security Conference

ABU DHABI

www.ipieca.org

2-5

Syroil 2012

DAMASCUS

www.syroil.com

16-18

Oil and Gas West Asia

MUSCAT

www.ogwaexpo.com

30-3 May

Offshore Technology Conference

HOUSTON

www.otcnet.org

1-4

Baghdad Oil & Gas Conference And Exhibition 2012

BAGHDAD

www.baghdadoilgas.com

8-10

POGEE

KARACHI

www.pogeepakistan.com

20-23

Middle East Petrotech 2012

MANAMA

www.mepetrotech.com

20-23

MEPIPES 2012 (Oil & Gas Pipelines in the ME)

ABU DHABI

www.theenergyexchange.co.uk

22-23

Global Water Oil & Gas Summit

DUBAI

www.cwcoilgasandwater.com

22-24

Meditteranean Offshore Conference (MOC)

ALEXANDRIA

www.moc-egypt.com

28-31

Heavy Oil World 2012

ABU DHABI

www.terrapinn.com/2012/howc

4-7

EAGE

COPENHAGEN

www.eage.org/events

4-8

World Gas Conference

KUALA LUMPUR

www.wgc2012.com

5-8

Caspian Oil & Gas

BAKU

www.caspianoil-gas.com/2012

18-20

Iraq Petroleum 2012

LONDON

www.cwciraqpetroleum.com

APRIL 2012

MAY 2012

JUNE 2012

Readers should verify dates and location with sponsoring organisations, as this information is sometimes subject to change.

10 Oil Review Middle East Issue Two 2012

S03 ORME 2 2012 Analysis_Layout 1 22/02/2012 16:01 Page 11

S03 ORME 2 2012 Analysis_Layout 1 22/02/2012 16:01 Page 12

Analysis

A hydrocarbons law is unlikely to be agreed until at least the second half of 2012. But that seems to be the least of Iraqâ&#x20AC;&#x2122;s problems, according to experts from Exclusive Analysis.

Security risks

remain a concern P

ARLIAMENT IS HIGHLY protective of Iraq's oil resources and continuous jostling between the central government and the Kurdistan Regional Government (KRG) has produced an impasse over the issue of hydrocarbons-related cost allocation and revenue sharing. The Iraqi government is more likely to revise contracts than cancel them altogether, even for companies working with the KRG, given the need for investment into exploration and development to boost production. Contract amendments are likely to shift all or most security risks in oil exploration and production to the Iraqi government, as did the 2009 BP-CNPC contract for Rumaila. With no national oil law, the KRG has signed production sharing contracts with oil companies in the Kurdistan Region. Formal recognition of KRG contracts, including that of ExxonMobil (in Basra's West Qurna-1 oilfield), is unlikely in 2012 as Iraq's central government fears further decentralisation and weakening. There is a risk ExxonMobil will be blacklisted from further oil and gas licensing rounds, or even replaced at West Qurna-1. Sovereign non-payment risk in the three-year outlook is tied to the expansion of oil production and the US' willingness to allow Iraq ongoing access to multilateral financial institutions, like the IMF. Oil exports continue to be lower than projections due to technical problems, attacks on pipelines and a failure to complete oil sale agreements with the KRG. In September 2011, Iraq's average export of 2.1mn barrels per day (mmbpd), dropped to 2.10 mmbpd and was only 2.088 mmbpd in October. An average of 2.9 mmbpd in 2011 had been expected. Despite this, Iraq was able to outperform its budget target, as it had used conservative oil price estimates. Iraq is made up of a roughly 60 per cent Shia and 30 per cent Sunni, whereas the ratio of Arabs to Kurds is around 80 per cent to 20 per cent respectively. The Sunni population is located in western Iraq, the Shia in the south and the Kurds in the north. While a broadly Sunni-Shia and ArabKurd rivalry exists, a multitude of intra-sectarian and political divisions militates against a civil war and fragmentation along sectarian and ethnic lines. The Shia support a number of different leaders and parties that disagree on fundamental issues, including federalism, the level of US co-operation, ties with Iran and de-Baathification. On the local level, various Shia parties and their militias, including Da'wa, the Islamic Supreme Council of Iraq (SIIC), the Badr Organisation, the

12 Oil Review Middle East Issue Two 2012

The potential for conflict continues with indiscriminate attacks still widespread

Sadr Movement and Fadhila compete for political influence and a share in lucrative economic activities, including oil smuggling. Conflict often takes the form of Iraqi security forces (themselves made up of partisans from various sides) engaged in combat with militiamen/insurgents. Still, alMaliki's government is unlikely to be significantly threatened, as he controls the security ministries and, most significantly, the predominantly Shia Special Forces.

In northern Iraq, there is potential for conflict over the disputed oil-rich Kirkuk region

In northern Iraq, there is potential for conflict over the disputed oil-rich Kirkuk region, which is inhabited by Kurds, Arabs and Turcomans. The Kurds have accused the government of stalling a referendum to determine whether Kirkuk should become part of the Kurdistan Regional Government (KRG); civil war risk would be heightened if Prime Minister al-Maliki is unable to retain Kurdish

support for his government. Since 2003, the KRG has deployed Kurdish armed forces in Kirkuk and has been moving Kurds into the area in response to Saddam Hussein's Arabisation policy (in which the Kurds claim several thousand Kurdish inhabitants were displaced), measures that have antagonised non-Kurdish Iraqis. Army forces have likewise deployed in the area since late-2008. When Kurdish 'peshmerga' fighters deployed in Kirkuk in February 2011, the potential for conflict was defused following US mediation. However, the withdrawal of US forces in late-2011 increases the risk that similar disputes escalate into military confrontation. On 17 November 2011, the Iraqi Army's 12th Division deployed to take over the Kirkuk airbase. Kirkuk's largely Kurdish police force blocked the Army's entry. The prospect of fighting was defused only when the central government pledged to turn the base into a civilian airport. Any Kurdish moves to annex the area would increase greatly the risk of fighting, as would further attempts by the government to assert state sovereignty in the area. Further confrontations in the area are likely in 2012. â&#x2013;

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S03 ORME 2 2012 Analysis_Layout 1 22/02/2012 16:01 Page 13

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Analysis

S03 ORME 2 2012 Analysis_Layout 1 22/02/2012 16:01 Page 14

Infrastructural damage to Libya’s oil industry may take time to repair but, even after months of fighting, the state of this pivotal sector is not as bad as might have been expected. In fact, as Samuel Ciszuk tells Vaughan O’Grady, the biggest post-transitional challenges for oil are likely to involve finding the right people to run the industry.

New Libya - new problems

(and a few old ones) I

N RECENT MONTHS, Libya’s transitional government has undoubtedly been mulling over the reconstruction of the oil industry not only of its physical infrastructure but of institutions. Arguably, it’s the institutional side that will need the most attention. The majority of Libya’s refineries and oilfields are still in reasonable working order. However, as Samuel Ciszuk, former senior Middle East energy analyst with IHS*, and now a global oil supply consultant with KBC**, notes, there are a few exceptions. “Es Sider and Ras Lanouf export terminals and the refinery in Ras Lanouf are more damaged than most other places,” he says. Even that, however, does not mean that oilfields are on fire or expensive infrastructure and machinery wrecked. “That’s not happened,” Ciszuk says. “If all that is needed is a bit of carpentry and paintwork, then that’s not bad news - but,” he adds, “there’s still some form of lead time involved.” Recent IHS research notes suggest that repairs needed to Ras Lanuf and Es Sider will mean no output from the Waha oil venture until early in 2012.

Libya’s ageing oilfields need foreign investment

everything is pointing in the right direction - for now at least.

Less serious Agenda Libya's refining capacity might also take time to revive to rates higher than the bare minimum although, ironically, Libya’s refineries were in bad need of an upgrade in any case. However, Ciszuk points out, getting upstream on track will probably be the new government’s priority before the country starts moving forward with downstream projects. ”I don't think building new refineries will be high on their agenda,” he says. Attracting overseas workers probably will be, however. Libya is very reliant on foreign workers both experts and the less skilled workforce - and getting those back is going to be a challenge. IHS estimates tens of thousands of foreign oil engineers, geologists and technicians, mostly from neighbouring Arab states, South Asia and China, have yet to return. It’s not personal safety issues keeping them away, however, but lack of reasonable accommodation. “Much of the damage we’re hearing about, especially round oilfields and so on, is looted living quarters,” says Ciszuk. “That’s going to be a problem; it will take some time to repair.” But a lot of interested parties will get involved very swiftly if the situation continues to improve. “There’s certainly a lot of companies having sent scouting trips to check out their facilities,” says Ciszuk. “Whether they will actually send in their people might still be weeks or months away but

14 Oil Review Middle East Issue Two 2012

And quite often,” he points out, “they are using their Libyan partners in the joint venture companies to start production.” One example of this is Harouge Oil Operations, a joint venture between Libya’s NOC and PetroCanada, which has announced the pumping of crude from the country’s Amal field. “You're still talking about low level production but at least things are starting to move.”

One area much of the oil industry will be looking to sooner rather than later, however, is finding the right people to run it It bears repeating, therefore, that this situation is much less serious than many had feared. However, that doesn't mean getting oil and related industries up and running is going to be plain sailing from now on. Elections, expected by the middle of 2012, may give a clearer view of who the main players will be in a future government and how they will respond to the needs of the oil industry. Meanwhile it’s a matter of nation building rather than dealing with long-standing issues like updating the country’s archaic oil law.

Ageing oilfields However, at any other time a modern oil law would be an urgent consideration and must surely be high on the list of post-stabilisation requirements. Of course the oil law has been tweaked and modified over the years but that will not in the long term be enough. As Ciszuk says, for a long time high amounts of associated gas were being flared off because an oil law instituted in the 1950s would not have made provision for gas. Similarly EOR, a production method that has an obvious role in Libya’s ageing oilfields, was not catered for in 1955. Ciszuk lists a number of areas of legal uncertainty. “Who owns injection facilities? How do you regulate that? How do you deal with the gas? Do you price it? Is it water that’s going to be injected? How do you deal with that? There was a law which in its basic core was unable to handle any of these issues because it was only focusing on the production of oil.” He certainly believes that it would be wise eventually to focus on EOR, which has undoubted potential. However, it also means more government investment, so as he points out, there may be “a temptation to [look to] whatever new exploration can turn up. There are still significant amounts of exploration ongoing in Libya on the back of the most recent licensing rounds.” Some of it has led to disappointment, while some has yet to be completed, he adds. But in that case will the new leadership show any real urgency in looking at how to get EOR projects going? “Hopefully they will, but that will probably require some legislative work.

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Analysis

S03 ORME 2 2012 Analysis_Layout 1 22/02/2012 16:01 Page 16

The question is, will they be able to handle sheer volumes of legislative work when they have to attend to really deep and country-forming constitutional issues?”

Claims That result of such efforts is even harder to predict when we are still unclear on the new political landscape developing in Libya and how it will affect oil and gas. For instance, will populist resource nationalist policies become an issue? Will different groups try to stake their claims to the country’s wealth? As Ciszuk says, we’ll just have to wait “Right now it’s all going to be [about] trying to get some form of new legitimacy - elections, trying to build institutions. The legislation of an industry - which is obviously an extremely important industry, but essentially works, on a day-to-day basis, quite well without a law - can’t be at the top of their agenda.” One area much of the oil industry will be looking to sooner rather than later, however, is finding the right people to run it. However, as Ciszuk suggests, while there may be some skilled people among the new top leadership of the NOC, not to mention the Libyan side of many joint venture oil companies, there aren’t enough of them. In fact there weren’t enough even before recent upheavals, so striking a balance between cleaning

up the Libyan oil sector after decades of corruption and nepotism and yet not losing too many skilled and experienced managers will be a problem. The clamour for many senior industry executives to be removed may have to be handled with care, therefore. On the upside, the inertia of the Gaddafi period, when progress was limited as reformers and conservatives jostled for position, is probably not going to continue. Indications are that there are moves towards having an oil ministry and making the NOC more of a classical national oil company instead of regulator, oil ministry, NOC and overseer in one. “Under [former oil minister] Ghanem the NOC became very much of a fiefdom, suffering a bit from being micromanaged from the top,” says Ciszuk. He continues, “Everything right now points to a sea change when it comes to political transparency and accountability.” We may not see the sort of democratic development many were hoping for any time soon, he adds, but nor will we see a return to what he calls the “opaqueness” of Gaddafi’s rule. Which is modest grounds for optimism - as is the potential of the oil and gas sector to improve the lives of many Libyans. “It's a fairly small population and it’s resource rich,” Ciszuk points out. “If it wasn’t for a very small elite grabbing all the billions for themselves it should be a very welloff country.” ■

*IHS is a leading source of information and insight in energy, economics, geopolitical risk, sustainability and supply chain management. www.ihs.com **The energy consultancy KBC serves the energy and related industries, providing consulting and software solutions to improve return on capital employed. www.kbcat.com

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16 Oil Review Middle East Issue Two 2012

Society of Petroleum Engineers

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Analysis

In its 2012 Oil Market Outlook report Kuwait’s Global Investment House argues that oil prices will remain volatile and China will be the main growth driver for oil demand.

Oil market to be affected by

global volatility G

LOBAL BELIEVES THAT volatility in 2011 is likely to extend into 2012: "as the European debt crisis remains unresolved, Arab Spring continues and unemployment remains high in the US." This is in addition to major risks that still exist in 2012 with Iran and North Korea the two big worries. According to Global, new sanctions on Iran and subsequent military drills by the Iranian Navy has increased the risk of stand-off between the US and Iran which could severely disrupt oil supplies. The transition of power in North Korea has also increased the geo-political risk with lack of clarity over the direction the isolated country will take.

Oil Price Global Research points to an average WTI crude oil price to be in the range of US$95-100 per barrel in 2012 which is also consistent with the Bloomberg Consensus crude oil price of around US$98.7 per barrel and close to 2011 average price of US$94.9 per barrel. “The increase in geo-political risk is also likely to keep an upward pressure on prices. However, any escalation of European sovereign debt crisis presents a major downside risk to oil prices,” Global said in its report. Global added that oil prices ended 2011 close to US$100 per barrel mark as political upheaval in the Arab world outweighed concerns over health of the global economy. The average price for 2011 increased by 19.6 per cent to US$94.9 per barrel. One of the main dominant effects on oil prices has been the ongoing European debt crisis which threatens to throw a spanner in the global economic recovery. The IMF has downgraded its estimate for world economic growth for 2012 in view of the prevailing risks.

OPEC Production and Spare Capacity The report discussed the constant threat of supply disruptions throughout 2011 that plagued oil markets. Political turmoil in the Middle East had a direct impact on OPEC oil production as Libya descended into civil war. The start of civil war in Libya which saw WTI prices spike above US$110 per barrel mark in Q2 2011. Production in Libya fell to 47tbpd in Q3 2011 compared to an average production of 1.55mnbpd barrels in 2010. The shortfall was

18 Oil Review Middle East Issue Two 2012

A graph highlighting OPEC's spare capacity

World Oil Demand

The majority of the world oil demand growth is expected to come from China, Latin America and the Middle East region filled in quickly with Saudi Arabia in particular raising its production to 9.6mnbpd in Q3 2011 from 9.1mnbpd in Q2 2011. However, the production in Libya is on the road to recovery as the Transitional National government has taken over. Crude oil production in Libya has increased to 0.77mnbpd in December 2011. Global adedd: “Saudi Arabia also played a vital role in filling up for loss in production in Libya. According to the report, Saudi Arabia still commands the largest spare capacity of around 2.71mnbpd despite the increase in production in 2011. This holds particular significance at a time when Iran is coming under further pressure because of its nuclear program. EU plans to halt oil imports from Iran in the summer as part of the sanctions. The ability to fill the production gap by Gulf countries, and in particular Saudi Arabia, can be seen in the table above.

World oil demand continued to recover, though at a slower pace. World oil demand grew by 0.9mnbpd in 2011, a 1.04 per cent YoY increase over 2012, driven by demand in the emerging countries, particularly China, Global reported. The recovery in 2011 and 2010 came after a steep decline in 2009 by 1.4mnbpd and a slight decline in 2008. The global financial system is going through turbulence with debt crisis in Europe taking a centre stage. The impact of the crisis manifested itself in the Western Europe oil demand which decreased by 0.16mnbpd. Many European countries are adopting austerity measures to bring fiscal stability. The report stated that the expected growth in world oil demand by 1.2 per cent to 88.9mnbpd will be fuelled by an expected world real GDP growth of 3.3 per cent in 2012. The majority of the world oil demand growth is expected to come from China, Latin America and the Middle East region. “Increase in China’s oil demand is expected to contribute around 40 per cent to the total oil demand growth in 2012. Fears of hard landing in China have faded with inflation in China coming down to 4.2 per cent in November and a cut in reserve requirement for banks, indicating a change in focus by policy makers,” the report concluded. ■

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Tethys terminates Oman well DRILLING OF THE Maha-1 exploration well on Block 3 onshore Sultanate of Oman has been completed, according to Tethys. The well encountered oil, but the oil saturation was too low to be produced. The well has been suspended to enable further studies in the future. Maha-1 was drilled southwest of the producing Farha trend in an area not covered by 3D seismic. The vertical well was drilled to a total depth of 1,465 metres below sea level, encountering the Barik Sand at 1,409 metres. There were minor oil shows encountered while drilling the Barik. However, the oil saturation was too low to be produced and a subsequent sidetrack encountered even less saturation. The well has been suspended to enable further studies in the future. "Oil is clearly present in the Maha part of Block 3. However additional seismic will be required to mature leads to prospect in this area, "comments Tethys Managing Director Magnus Nordin. The drilling programme on Block 3 continues with two rigs currently operating on wells FS-18 and FS-31 respectively. Both wells are located within the Farha trend 3D seismic area and are targeting as yet undrilled fault blocks. Tethys has a 30 per cent interest in Blocks 3 and 4. Partners are Mitsui E&P Middle East B.V. with 20 per cent and the operator CC Energy Development S.A.L. (Oman branch) holding the remaining 50 per cent. Tethys Oil is a Swedish energy company focused on identification and development for production of oil and natural gas assets. Tethys’ core area is the Sultanate of Oman, where the company is the second largest onshore oil and gas concession-holder with licence interests in three onshore blocks.

Harvest updates drilling operations HARVEST NATURAL RESOURCES announced that the Al Ghubar North-1 (AGN1) exploration well onshore Oman has reached a total depth (TD) of 10,482 feet. Interpretation of the mudlog and wireline logs indicates no apparent hydrocarbon saturations within the principal stacked Haima targets in the Barik, Miqrat and Amin reservoirs; however, gas shows and residual hydrocarbons indicate that the structure was charged and failure is attributed to seal effectiveness. The well will be www.harvestnr.com plugged and abandoned with gas shows. Gas shows and hydrocarbon saturations are also present in the shallower limestones and dolomites of the Permian Khuff Formation. Post-well evaluation will focus on determining the potential for non-associated gas reserves in the Permian Khuff and clastic Gharif reservoirs. Drilling operations on the AGN-1 well progressed ahead of schedule with the well reaching TD 22 days ahead of the forecast drill time. Consequently, the dry hole cost (DHC) will be US$2.4mn lower than previously forecast. Harvest expects to expense a majority of the DHC of US$6mn in Q1 of 2012. Harvest has an 80 per cent interest in Block 64 onshore Oman. Block 64 has an area of 3,874 sq-km and was extracted from a pre-existing block (PDO's Block 6) to accelerate exploration for gas and gas condensate by the Omani Ministry of Oil and Gas.

Gulf Keystone exits Hassi Ba Hamou GULF KEYSTONE HAS announced that all required documentation has been executed and all necessary Government approvals obtained pursuant to the agreement between the Company and BG Group, the Operator, providing for the transfer of the Company's right, title and interest for no consideration in the Hassi Ba Hamou (HBH) Permit to the Operator and Sonatrach. This development is in line with the company's announced decision to undertake a gradual strategic exit from Algeria in order to focus on its extensive operations in the Kurdistan Region of Iraq. Todd F. Kozel, Gulf Keystone's Executive Chairman and Chief Executive Officer commented: 'We are pleased that with the HBH transfer we have made good progress towards achieving our goal of a gradual strategic exit from Algeria. We are firmly focused on our operations spanning four exploration blocks in the Kurdistan Region of Iraq, including the Shaikan world-class discovery, where the 2012/13 high impact drilling campaign is currently underway following excellent results achieved in 2011. Gulf Keystone started operating in the Republic of Algeria in 2001 acquiring exploration and appraisal rights over six blocks and two producing fields totalling approx. 17,600 sq-km. In July 2009, the Company announced its intention to undertake a gradual strategic exit from Algeria in order to focus on its extensive operations in the Kurdistan Region of Iraq. In early 2010 Gulf Keystone relinquished Blocks 108 and 128b under the Ben Guecha Permit. In February 2012, an agreement reached in 2010 between Gulf Keystone and BG Group PLC, the Operator providing for the transfer of the Company’s interests in the Hassi Ba Hamou (HBH) Permit to the Operator, was approved by the Algerian government and Sonatrach, Algeria's national oil company. Gulf Keystone is currently evaluating a number of options with regard to its remaining interests in Block 126a (GKN and GKS oilfields under the Ferkane Permit) in order to conclude the Company’s gradual strategic Hassi Ba Hamou exit from Algeria.

20 Oil Review Middle East Issue Two 2012

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DNO updates Kurdistan project NORWEGIAN COMPANY DNO has provided an update on its drilling activity in the Kurdistan region of Iraq.

Kurdistan - Tawke PSC: Peshkabir-1 exploration well The objectives of the Peshkabir-1 exploration are to test the hydrocarbon potential in the Cretaceous, Jurassic and Triassic intervals. Following the installation of the 9 5/8 casing point at the top of the Cretaceous interval a damaged section of the casing was identified some 140 meters above the casing shoe. The damaged section was repaired and drilling recommenced. Oil shows have been observed while drilling the top section of the Cretaceous interval, and core samples are in the process of being collected. Contingent upon observations from the coring results, an open-hole test will be considered before drilling re-commences.

Tawke-16 appraisal well The main objective for the Tawke-16 appraisal well is to test additional resource potential within the northern flank of the Tawke field. The drilling is progressing according to plan, and it is expected that the well will reach the main target within the next few weeks.

and natural gas in the Cretaceous interval. The oil and gas discoveries in Summail-1 will be further evaluated, and as part of this work a 3D seismic acquisition across the entire Summail structure will be undertaken during the next few months. The Summail-1 well was suspended for possible reentry and further testing at a later stage.

Tawke-Deep exploration well Drilling of the Tawke-Deep exploration well has now been approved by the partners. The main objectives of the well are to test the resource potential of the Jurassic and Triassic intervals within the Tawke area. Expected spud of this well is in Q3 of 2012.

Kurdistan â&#x20AC;&#x201C; Erbil PSC:

Kurdistan - Dohuk PSC: Summail-1 oil and gas discovery As previously reported results from the testing operations undertaken in Summail-1 confirm the presence of heavy crude oil in the Jurassic interval

Bastora-1A test production Test production from the Bastora-1A horizontal well has continued at 800-900 barrels of oil / water per day from natural flow. Installation of a down-hole pump has been postponed in order to acquire more information from the well under natural flow. The oil constitutes around 50 per cent of the gross fluid production, and the produced crude oil has continued to be delivered to the local market. The Bastora and Benenan development plans were submitted to the KRG in December, and approval was expected before the end of February.

Statoil seeks West Qurna sale NORWAY'S STATOIL WANTS to sell its stake in a giant 12.9 billion barrel oilfield in southern Iraq to Russia's LUKOIL, and the Iraqi oil ministry has no objection 'in principle', an Iraqi oil official said recently. Statoil holds 18.75 per cent of the West Qurna Phase-2 field, with LUKOIL at 56.25 per cent and Iraq's North Oil Company 25 per cent. The Norwegian state company has considered quitting Iraq for some time and turning its attention to less-risky assets

West Qurna 2

22 Oil Review Middle East Issue Two 2012

elsewhere, industry sources said. It is planning billions of dollars worth of investments in areas such as offshore Norway and in the United States. 'Statoil asked the oil ministry to approve selling its stake in West Qurna to LUKOIL, and in principle the Iraqi oil ministry has no objection to this sale,' said Sabah Abdul-Kadhim, head of the legal section of Iraq's Petroleum Contracts and Licensing Directorate. A senior Iraqi oil industry source confirmed that Statoil had requested approval for the sale and said the deal was in its 'final stages'. Officials at both Statoil and LUKOIL declined to comment as Oil Review went to press. LUKOIL and Statoil in December 2009 sealed a 20-year deal to develop the virgin field and targeted a plateau output of 1.8 million barrels per day (bpd) in six years. 'Under the service contract of West Qurna, Statoil has the right to sell its stake to another company after receiving the approval of the oil ministry,' AbdulKadhim said. 'It's normal, and we will not lose anything because LUKOIL will keep developing the oilfield.' Last week Iraq's cabinet approved a $998 million oilfield service contract for West Qurna Phase-2. An Iraqi oil official, who asked not to be identified, said the deal was with South Korea's Samsung Engineering. The two companies were among the winners of auctions Iraq held more than two years ago to develop its massive southern fields after years of war and underinvestment. Baghdad hopes the deals, which target capacity of 12 million bpd by 2017, will propel Iraq into the top echelon of world producers. But infrastructure bottlenecks and bureaucratic hurdles make achieving a target of 6 million bpd look ambitious. International oil companies have grown increasingly frustrated over time, but Iraqi sources are confident that Statoil's withdrawal will not signal the start of a trend. Iraq produces around 3 million bpd now and expects to add about 500,000 bpd this year. Exports are just over 2 million bpd.

S05 ORME 2 2012 E&P 1_Layout 1 22/02/2012 16:03 Page 23

MENA updates Lagia development MENA HAS SIGNED a contract with Petroservices Drilling Overseas (PSDO) of Egypt for the rental of their 750 HP rig Shams 1 in order to commence operations on its Lagia oil field development in Egypt. The six-well programme consists of working over two existing wells, the drilling of two development wells and drilling a further two appraisal wells, one of them contingent. The recently built rig is on its way from Tian Jin in China and was expected to arrive in Egypt in February for commencement of operations in the Lagia license. MENA has finalised all other work programmes and service contracts to commence work over and drilling operations. The existing Lagia 6 and 7 wells are expected to be completed with a subsurface pump whereafter two development wells and two appraisal wells are planned to be drilled to the top of the Thebes formation at around 1500 ft. The development wells will be completed with thermal casing in order to facilitate steam injection as part of a cyclic steam soak pilot project and fitted with a sucker rod pump.

www.menahydrocarbons.com

A contract for the rental of a 24 MM BTU steam plant is currently being negotiated. Temporary Production facilities for the pilot phase are planned to be rented from Sigma Petroleum Services enabling Installation in line with drilling activities. The produced oil will be transported by road tanker to the production facilities of the General Petroleum Company (GPC) at Ras Gharib. First routine production is expected in the second quarter of 2012. MENA is the sole owner of the Lagia Development Lease covering a 32 sq-km block of land located on the Sinai Peninsula, directly adjacent to the Gulf of Suez. Within the lease, four wells have been drilled between the years 1949 to 2000 that have identified the Lagia oil field. Three producing oil fields, Sudr, Matarma and Asl, are located as close as 26 km to the north of the Lagia oil field. Oil Review Middle East Issue Two 2012 23

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Gulfsands continues operation in Syria GULFSANDS PETROLEUM, THE oil and gas production, exploration and development company with activities in Syria, Iraq, Tunisia, Italy and the US, has provided an update on its operations in Syria. Drilling, logging and well testing operations have now concluded at the Khurbet East 102 (KHE-102) well, an appraisal well which has tested the structural elevation, reservoir quality and reservoir fluids present in the Triassic Butmah and Kurrachine Dolomite Formations on the north flank of the field some 2.3-km north of the Khurbet East 101 well (KHE-101) drilled earlier in 2011. Originally spudded on October 13th 2011, KHE-102 has encountered gas and oil in the Butmah Formation and the results of the well are interpreted to be generally consistent with pre-drill expectations. The hydrocarbon columns and reservoir characteristics interpreted in the KHE 102 well are also seen as broadly confirming the company's initial estimates of total recoverable hydrocarbon volumes from the Butmah Formation of 19.2mn barrels

oil equivalent. KHE-102 encountered the Butmah Formation at a depth of 2847 metres Measured Depth below rotary table (m MD brt), 2442 metres True Vertical Depth below mean sea level (m TVD bmsl), some 16 metres shallow to prognosis. Three consecutive core sections each of 12 metres length were cut, with hydrocarbons shows from core sections and drill cuttings indicating the presence of both gas and oil within the Formation. An open-hole flow test was conducted over the interval 28472895m MD brt (2442-2490 m TVD bmsl). The Butmah Formation flowed wet gas at an average rate of 10.7mn cubic feet of gas per day (MMcfpd) over a five hour period on a 32/64" choke, with an associated hydrocarbon liquid rate of 524 barrels (bbl) per day of 58 degree API condensate. No formation water was produced. The testing operation was terminated prematurely for safety reasons following the failure of a down-hole packer supporting the well test completion string.

Interpretation of results from the flow test, electrical wireline log data and reservoir pressure data recovered over the Butmah Formation, confirms the presence of an oil reservoir with an overlying gas cap as seen in the original oil discovery at KHE-101. The KHE-102 production test initially flowed wet gas with a condensate yield of 49 bbls per MMcf, but as a result of the failure of the packer, it was not possible to subsequently flow oil from the oil leg. The well was subsequently deepened to the Triassic Kurrachine Dolomite Formation, which was encountered seven metres shallow to prognosis at 3119m MD brt (2714m TVD bmsl). In spite of extensive shows of light oil being present on drill cuttings and a single core section recovered below this depth, the Kurrachine Dolomite failed to flow oil during an open-hole test, even following acidification of the reservoir interval, probably as a result of the absence of natural fractures within the low permeability reservoir interval at this location.

Roxi updates Kazakhstan project ROXI PETROLEUM, THE Central Asian oil and gas company with a focus on Kazakhstan, updated the market with regard to BNG well 136. The well, which is on the North Yelemes structure and is planned to be drilled to a total depth of 2,950 metres was spudded on 16 December 2011. At the time of spudding, drilling was expected to take approx. 40 days. However, the severe weather in the area, with minus 30 degree temperatures and high winds, for much of the past month, has meant that Roxi has experienced a series of interruptions to its operations, and consequently the drilling timetable

www.roxipetroleum.com

has been delayed. The exploration well is targeted to encounter Jurassic Bajocian sands at a depth of 2,550 metres and a secondary objective in the Triassic sands at a depth of 2,840 metres. David Wilkes, CEO commented, 'We continue to prioritise the health and safety of our employees and contractors during this period of particularly harsh weather conditions. We plan to resume drilling within the next few days, as weather conditions improve, and we will update the market as soon as we have reached our target depth.'

Libya sees pre-war production levels by June LIBYA ANTICIPATES A return to pre-war oil output of 1.6mn barrels per day (bpd) in June or July this year, Deputy Oil Minister Omar Shakmak said recently. Oil companies were currently producing at between 60 and 90 per cent of their normal output, he told Reuters in an interview. 'In general, if you look at the oil companies, they are all between 60 and 90 per cent of the normal production for each company,' Shakmak said. Libya is currently producing 1.3mn bpd, he added, after the civil war which toppled leader Muammar Gaddafi brought flows to a standstill. When asked if pre-war output could be achieved before the summer, Shakmak said: 'Yes,

24 Oil Review Middle East Issue Two 2012

if you consider the progress in production which has been achieved now, maybe that will be before. But if it is by June-July, we are quite satisfied.' Libya exported 32.2mn barrels of crude in January, state oil company NOC said. Shakmak said a draft proposal looking to split the running of Libya's oil industry between oil production and exploration, or upstream, from oil refining or downstream activities was being looked at but it was unlikely any such change would happen under the current transitional government. 'That's one of the proposals we are thinking of as a strategy, it is not in stage of

activity,' he said. 'But I'm not expecting that will be done during this transitional period of government because most of the major changes should be done by the elected government - all the Libyan people should be involved.' A transitional government appointed in November is leading the North African country to elections in June. Shakmak said some of the remaining challenges included dealing with complaints by workers at oil services companies over employment terms. 'We need to solve these problems because they are serving the production companies,' he said.

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Iran sets deadline for Indian firms

Statoil to spend big on new wells

IN A STRATEGIC move to force India's hands, Iran has set a month's deadline for a consortium of Indian state-run oil companies to sign the contract for bringing to production a gas field discovered in the Persian Gulf in 2006. The consortium of ONGC Videsh, the overseas investment arm of ONGC, northeast explorer Oil India Ltd and refiner-marketer IndianOil Corporation had in 2010 told Teheran it planned to develop the Farsi offshore block by pumping US$5 billion over seven-eight years. But it did not sign a contract for fear of being blacklisted by the US under the 1996 Iran-Libya Sanctions Act of the US that barred any entity to pump more than 20mn in any 12-month period. US blacklisting would have made difficult for the Indian oil companies in the consortium to source funds, technology and other oilfield services. The latest round of embargo against Iran by the US and the EU has added to India's problems, making it difficult to buy Iranian crude – accounting for 12 per cent of total imports – and pay for it. Now, India is routing oil payments through a Turkish bank, at best seen as a temporary measure. The latest deadline on the gas field puts India in a Catch-22 situation. If it signs on the dotted lines, it could upset the Western powers who can make things difficult for the Indian firms. If New Delhi refuses to sign on the dotted lines, it may lose a field with estimated reserves of 21 tcf (trillion cubic feet), or twice the size of India's biggest gas field. This is considered a costly proposition for an energy-deficit economy whose hunger for fuel is growing at a robust rate since oil and gas fields are not easy to come by, and China is always breathing down India's neck in so far as acquisition of global oil assets are concerned.

STATOIL EXPECTS TO spend around US$3 billion as it completes approximately 40 wells during 2012, it announced recently, which means the Norwegian oil major's total exploration activity level will be similar to that achieved last year. The Oslo-listed firm, which also announced its fourth-quarter results, said that total organic capital expenditure for 2012 is estimated to be around US$17 billion, including expenditures relating to new assets from its acquisition of Brigham Exploration Company in December 2011. Last year the firm completed 41 exploration wells, 22 of which were discoveries. The firm also achieved a reserve replacement ratio of 1.17 during 2011, it added. Apart from its acquisition of Brigham, Statoil said that key www.statoil.com events since the end of 3Q 2011 included the optimization of its portfolio through the divestment of the Gassled ownership share and the streamlining of its assets in the Norwegian Continental Shelf through the farm-down of three assets through the firm's agreement with Centrica.

Circle Oil pleased with progress in Egypt CIRCLE OIL PLC announced an update regarding the Al Amir SE Field ("AASE"). AASE-10X was spudded on December 13, 2011 and is located on the central western flank of the AASE field, downdip of the AASE-4X producer. The well's objective was to appraise both the Shagar and Rahmi sands for injection/production in that location. The well was successfully drilled to a total depth of 10,450 feet MD into the Upper Rudeis Formation. The well encountered 34 feet of net pay in the Kareem Shagar sand and 31 feet in the underlying Rahmi sand with oil bearing sands present to the base of the reservoir. The Rahmi zone was perforated from 9,975 to 10,010 feet MD and testing is planned to be conducted shortly. The results will be announced in due course. Following its productive lifespan, the Rahmi sands will be used for water injection. This injection will be targeted principally to support the Rahmi production from the nearby updip AASE-4X well.

www.circleoil.net

26 Oil Review Middle East Issue Two 2012

TNK-BP to boost Arctic output BP PLC'S RUSSIAN joint venture TNK-BP Ltd. said recently, it plans to invest around US$4 billion over the coming three years to develop Arctic oil and gas fields, in a move to offset declining production at Soviet-era fields. TNK-BP – Russia's third-largest oil producer – is developing four oil fields in Yamal in northern Russia with first oil planned in 2016 and production expected to reach a plateau of 15mn metric tons a year within four or five years, said Tom Quigley, vice president in charge of the Yamal Oil project. The company will spend close to US$2 billion on the four oilfields between 2012 and 2014, with total investments over the next 30 years of development at US$12 billion, said Quigley. The crude can be shipped either to Europe or to Asia, and will "most likely" be transported to Asian markets through the East Siberia-Pacific Ocean pipeline, Quigley said. TNK-BP is focusing attention on Russia's Yamal region as production declines in its traditional oil producing areas such as Orenburg and West Siberia developed in Soviet times. By 2021, 27 per cent of overall production will come from the Yamal region, while the share of hydrocarbons from the Orenburg region in Western Siberia will fall to around 20 per cent from over 50 per cent today, TNK-BP said previously. TNK-BP is already producing around three billion cubic meters of natural gas a year at its Rospan unit in the Yamal region. The company expects gas output to plateau at 16 billion cubic meters in 2017 and keep at this level for seven years, with total gas production over the next 30 years at 270 billion cubic meters. Investments in the company's gas production unit in Yamal, Rospan, will be US$2 billion in the coming three years, with total investments over the coming 30 years at US$6 billion. The company also said it will invest US$4.9 billion until 2020 to increase production at the Uvat group of fields in East Siberia. Uvat now produces seven million tons of oil per year.

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E&P

Shell reveals new growth agenda SHELL PROVIDED AN update recently on progress against its strategic plan to generate profitable growth. The firm said that in today's volatile economic environment, the company's strategic aim remains to drive forward with its investment program as well as to deliver sustainable growth and provide competitive returns to shareholders. Net capital investment in 2012 will be in the region of US$30 billion â&#x20AC;&#x201C; 80 per cent in Upstream â&#x20AC;&#x201C; as Shell invests for a new tranche of growth. The global economy and energy markets are likely to see continued high volatility. Shell remains focused on through-cycle investment for sustainable growth. Delivery of underlying strategic drivers for 2012 targets established, underpinned by 14 project start-ups 200911, and Shell's continuous improvement programs. The growth outlook is driven by over 60 new projects and options, maturing circa 20 billion barrels of oil equivalent of new resources potential, including major projects in liquefied natural gas (LNG), deep water, tight gas, liquids-rich shales and traditional plays.

www.shell.com

Tethys announces Tajik tender TETHYS PETROLEUM ANNOUNCED the issue of a tender for the final stage seismic program in Tajikistan which when complete will identify the location for the first deep pre-salt well to be drilled by Tethys. Tethys also updated on its deep exploration strategy in Tajikistan. The initial analysis of the data from the aerial graviometry survey completed at the end of 2011 has revealed several attractive prospective areas with the potential presence of very large deep sub-salt and sub-thrust prospects within the Bokhtar Production Sharing Contract (PSC) Area. This additional seismic will target these areas and provide the final data in a comprehensive program to optimally locate a deep well. It is expected that this data will be acquired this summer with initial interpreted results in Q4 2012. It is also expected that Tethys' large drilling rig 'Telesto' will be www.tethysoil.com

mobilized to Tajikistan before the end of this year in order to drill this well. The seismic program will involve the acquisition of approx. 870-km of new 2D seismic in two areas; the Dushanbe Step and the Vaksh valley. The program has been designed to target these areas as the graviometry survey has identified them to be the most likely to contain large deep prospects including potential Jurassic reefs located on the edge of likely Permian basement high features. Jurassic reefs form some of the most prolific fields in the Amu Darya basin and no wells have ever been drilled through the overlying salt layer in Tajikistan to date. The data also reveals significant potential in other parts of the PSC Area, including the Kulob area, however it has been decided to focus on the Dushanbe Step and the Vaksh valley initially.

Group of Companies

E-mail: sales@petrotech.ae Website: www.petrotechgroup.org

28 Oil Review Middle East Issue Two 2012

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Gas

Datuk (Dr) Abdul Rahim Hashim, President of the International Gas Union (IGU), spoke to Oil Review Middle East about the importance of natural gas for the region and what the main hurdles are in the gas market

Natural gas vital for the

region

Datuk (Dr) Abdul Rahim Hashim, President of the International Gas Union (IGU)

ATUK (DR) ABDUL Rahim Hashim, President of the International Gas Union (IGU), is very passionate about the vital role that natural gas plays in the global energy mix and sees gas demand continuing to rise. He began his career in PETRONAS and has been the President of (IGU) since 2009. The IGU is a global, non-commercial and non-governmental organization aimed at promoting the technical and economic progress of the gas industry. It was started 80 years ago and has around 118 members from the gas associations and companies in 77 countries. Dr Hashim explained that “at IGU we advocate gas and explore new uses of gas and seek out new markets.” The Middle East region is very important to world’s gas market and accounts for a significant portion of the world’s gas reserves. Dr Hashim does not feel that the worsening economic climate from in Europe will have a long term affect on demand for energy and argued: that “there will always be demand for energy as the world population grows and economic progress increases.” In his view, natural gas will start to play a more significant role in the future as demand for gas continues to increase.

30 Oil Review Middle East Issue Two 2012

Regional gas markets Dr Hashim believes that one of the main issues facing the region in relation to the gas market is pricing and the impact of the heavily subsidised gas markets in many countries across the region.

"We do not just want to rely on gas and take it for granted. We want to see gas as being part of the solution and not being part of the problem.” A very important factor in any study of the gas market in the region is that one must take into account the geopolitical elements which play a very important role there. One of the big worries facing certain Middle East countries is that they are gas-deficit. Dr Hashim explained: “Although the region is a net exporter of gas you find that countries here are also importing gas. Dubai is one such example. In fact there are only one or two countries in the region, which are able to export gas in the right transportable form.”

This gas-deficit is starting to bite as regional demand for gas is on the up. “After China and India this region has the third highest demand for gas. This in itself poses a bigger issue of how to deal with the energy issues in the Middle East,” added Dr Hashim. The gas-deficit in certain countries in the region is being intensified by the use of natural gas for domestic purposes, mainly in the power sector.

Prices According to Dr Hashim: “Gas prices are at historic lows but the question is for how long?” He went on to talk about the reoccurring question of whether gas prices be tied to oil prices? “On the one hand you want the producers of gas to get the best value for their resources and the best way would be to link it to oil prices and for the Far East market this has been the norm.” The pricing issue in the region is more difficult to answer as one has to take into account the energy subsidies which are common place in the Middle East. For Dr Hashim the focus should be that if you have subsidies in the market place who do you subsidise? Do you subsidise the whole range of consumers or should you target certain consumers? “As we know subsidies distort the market place and create inefficiencies in the system and do not

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Unconventional gas Although, as far as resources are concerned, the Middle East has much more conventional sources of gas rather than unconventional, the recent boom in the unconventional sector have a direct impact on gas markets in the region.

Pipeline security At present, there are only two commercial modes of transporting natural gas, by pipeline or by ship (tankers) in the form of LNG. He added; ”This is why pipeline security is so important. The issue of where the source of supply is coming from, I think is crucial. You can build the pipeline but the key is where the source originates from. The issue of transit countries is important also. This is why you require a lot more collaboration into getting a pipeline built.” Gas is set to play an increasingly important role in the world’s energy mix

Dr Hashim used the shale gas boom as a great example. He said that it has had an impact on Qatar’s gas markets as there is no longer the demand of LNG from the United States. “But it has also benefited Qatar as well, because the Qataris can now divert resources to the Asian market and in view of Fukushima, to supply the extra demand for LNG very quickly and easily and without causing disruption to the marketplace,” he pointed out. Dr Hashim added: “What we see is that the gas market is much more flexible. But we do not just want to rely on gas and take it for granted. We want to see gas as being part of the solution and not being part of the problem.”

Prospects Dr Hashim ended by highlighting some prospects for the regional gas market. Iraq was one area he highlighted: “As there is a lot of gas there and it is a real opportunity. They are also looking at building exporting facilities in the future.” He went on: “Qataris are leaders in the gas market and there is no doubt how important a role they have played. They have become leaders in LNG in just a short space of time. They aimed for something and went ahead and did it,” said Dr Hashim. For Qatar, it is not just LNG but also GTL that is also very important. It has enabled them to industrialise their economy. It has benefited the whole country overall and has also benefited global markets in terms of supply,” he concluded. ■

Oil Review Middle East Issue Two 2012 31

Gas

encourage consumers to conserve energy. So there is a bigger issue at hand when subsidies are taken into account,” commented Dr Hashim. This is why countries in the region will have to take into consideration various factors when they go forward and eventually reduce or even end subsidies as market related prices are brought in. Dr Hashim commented on the recent efforts to unite gas exporting countries along the same lines as the oil exporting countries have done with OPEC To this effect, the Gas Exporting Countries Forum was held in Qatar at the end of last year. Dr Hashim explained: “When you look at the gas business as a whole it is more of a bilateral arrangement where you have a buyer and seller, so it is more of a one to one relationship which is set over a longer term.” He argued that the IGU was pushing for more collaborative action between the producers. “I think there should be more of this kind of technical cooperation amongst the member countries.”

Gas

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Iran in talks with Oman to supply gas

Rasgas agrees LNG supply contract with Kogas

IRAN’S FIRST VICE-PRESIDENT Mohammed Reza Rahimi said that his talks with Sultan Qaboos dealt with supplying the Sultanate with Iranian gas, both for industrial and household uses. Iran and Oman signed a deal in 2009 to jointly develop an underwater 200km gas pipeline to Musandam and Sohar in Oman. Speaking at a press conference, Dr Rahimi said the talks were fruitful and focused on co-operation to achieve the common interests of both countries, reported Tehran Times. Hossein Bidarmaghz Caretaker director of the National Iranian Gas Export Company (NIGEC) said in September 2011 that Iran has reached agreements with India and Oman on exporting gas to the two countries. One possible way to transfer Iranian gas to India is via Oman through subsea pipelines. Bidarmaghz said based on a trilateral agreement among Iran, Oman and a third country, Iran's gas will feed Oman's liquefaction plant before being processed into various products in the Iran’s First Vice-President Mohammed Reza Rahimi third country.

RASGAS HAS AGREED to sell South Korea's Korea Gas Corp (Kogas) an additional 2mn tonnes a year of liquefied natural gas (LNG) for the next 20 years. Under the agreement, RasGas will also ship additional “incremental” volumes of LNG to Kogas from 2012 to 2016. Rasgas will boost LNG supplies to Korea Gas Corp. by 2mn metric tonnes a year under a 20 year agreement. RasGas said it will commit the volumes from the RasGas 3 consortium - a joint venture between Qatar Petroleum (70 per cent) and ExxonMobil (30 per cnet) - that operates RasGas trains 6 and 7. "This agreement is further evidence of these strong ties and helpful for long term security of LNG supply to Korea," Kogas chief operating officer Young Sung Park said in a statement. Deliveries under the agreement are set to begin in 2013, the Qatari company known as RasGas said in a statement distributed at the signing ceremony in Doha, the capital of the Persian Gulf state. The volumes will increase total LNG dedicated to Kogas, as the Asian company is known, under long term agreements to 9mn tonnes, it said. Kogas already has contracts with Rasgas to receive a total of around 7mn tonnes a year until 2024-2026, the two companies said in a statement. RasGas signed an agreement to send 1.5mn tonnes of LNG to Taiwan’s CPC Corp in December. “The price is quite good,” Ibrahim Ibrahim, economic adviser to the country’s emir, said at the signing, where the sale price wasn’t disclosed. “It’s way different from the prices in other markets because the market in the Far East, as you know, the gap is huge between the Far East and Europe and, of course, if you put in the States, it’s even bigger.” Qatar tries to sell its LNG at a price that is equal to oil on an energy equivalent basis, Ibrahim added.

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32 Oil Review Middle East Issue Two 2012

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Gas

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Second stage of Phase 7 gas production begins BG EGYPT STARTED gas production from the second stage of West Delta Deep Marine (WDDM) Concession Phase 7 in Egypt. The second stage of Phase 7 comprises onshore gas receiving facilities, five new compressors and a new power plant (the first stage comprised a new 36 inch pipeline to the onshore receiving facilities). This latest phase of the WDDM (BG Group 50 per cent, PETRONAS 50 per cent) development is designed to help maintain plateau gas production from the Concession and, in the longer term, these new compression facilities will access incremental reserves as offshore reservoir pressures drop. The compressors use aero-derivative gas turbine technology, a first for an E&P facility in Egypt, reducing impacts on the environment. The new power plant supplements the existing power facility in Idku, and comprises three gas turbine units operating at 11Kv. Commenting on the final delivery of Phase 7 Project, BG Egypt President Arshad Sufi said: “We are very pleased with this latest field development phase, which has been delivered within budget, and commissioned and constructed ahead of schedule during a challenging year for Egypt.” General Electric supplied the compressors, while the new power plant was supplied by Siemens. EGPC affiliate companies performed key roles across the project. ENPPI were responsible for the design and procurement; Petrojet performed the construction work; while EMC undertook commissioning. The concession is managed by the Joint Operating Company (JOC) Burullus Gas Company S.A.E. (EGPC 50 per cent, BG Group 25 per cent, PETRONAS 25 per cent).

Technip wins gas contract in KSA and Kuwait TECHNIP WAS AWARDED a contract by Kuwait Gulf Oil Company (KGOC), for the engineering, procurement, construction and commissioning assistance of their Gas and Condensate Export System project. The project is spread over onshore and offshore locations in two countries, Saudi Arabia and Kuwait. The objective of the project is to deliver a combination of lean gas, condensate and sour gas through a single 12” export pipeline from Al Khafji Joint Operations (KJO) facilities in Saudi Arabia to Kuwait Oil Company (KOC) tie-in facility, namely the Intermediate Slug Catcher being constructed under KOC Project No EF/1718 near Al-Ahmadi, Kuwait. The facilities will also assist KPC / KJO in achieving one of their primary targets of 1 per cent flaring by reducing the The Comanche vessel gas flared and additionally monetize valuable hydrocarbon resources. Total export pipeline length is 110km, with four kilometers onshore in Saudi Arabia, followed by 47km offshore and 59km onshore in Kuwait. Technip's operating center in Abu Dhabi will execute the project, which is scheduled to be completed by the second semester of 2014. Offshore installation will use the Comanche vessels.

Qatar supply LNG to Pakistan

Saudi to pursue gas venture with Kuwait

QATAR AND PAKISTAN signed a memorandum of understanding (MoU) for the supply of around 3.5 mtpa of LNG to Pakistan. The LNG agreement was signed by Pakistan's petroleum minister Asim Hussain and Qatar's minister for energy Mohammed al Sada. A Qatari delegation headed by Sada is expected to visit Pakistan by the end of February to finalise the plan of bringing LNG into Pakistan and the price structure, the official said. Pakistan is interested in importing 500 million cubic feet per day of LNG Mohammed Bin Saleh Al Sada, Minister of from Qatar. The imported Energy & Industry LNG will be initially provided to the power houses in the country to generate 2,500 MW of electricity. The government last year issued licenses to three companies -Pakistan Gas Port, Turkey-based Global Energy Holding and Pakistan's Engro Corporation -- to set up three LNG terminals with a combined regasification capacity of 1.5 Bcf/d. The terminals are expected to be set up by the third quarter of 2012. The government is planning to import LNG through these terminals and will pay a service charge to the terminal operators.

KUWAIT AND SAUDI Arabia are pushing ahead with plans to develop the undisputed part of the offshore Dorra gas field with the front-end engineering and design (FEED) work expected to be completed by June, industry sources said. Iran said in January it would develop its part of the field, which it calls Arash, that straddles the maritime borders of OPEC oil producers Kuwait, Saudi Arabia and Iran. Dorra has been a bone of contention between Kuwait and Iran for decades and the two have yet to agree on their maritime borders in the northern Gulf almost 12 years after OPEC allies Riyadh and Kuwait reached agreement in 2000. Kuwait and Saudi Arabia urgently need to boost gas supplies to reduce domestic oil consumption and boost exports, which Dorra's estimated trillion cubic feet of gas and 310mn barrels of oil should help achieve. "(The) investment decision already taken to develop the Dorra field," said a Gulf Arab industry source. "FEED completion is expected in June 2012." He said Saudi Arabia and Kuwait would develop the undisputed part of the field after having split it in half to conduct seismic surveys. "Dorra is located within Kuwaiti territorial waters, it has nothing to do with Iran," Kuwaiti oil analyst Kamel al-Harami said. Another source said the award of engineering, procurement and construction (EPC) contracts is scheduled for December this year. Dorra is run by Al-Khafji Joint Operations Co (KJO), a 50:50 venture between state oil firms Saudi Aramco and Kuwait Petroleum Corp. Kuwait hopes to nearly quadruple its gas output to more than four billion cubic feet per day (bcf/d) by 2030, including 0.5 bcf/d from Dorra. Saudi gas production rose to 10.7 billion cubic feet per day (bcf) in 2011, up from just 1.65 bcf in 1981, and the world's biggest oil exporter plans to raise its gas production capacity to 16 bcf per day by 2020. Saudi Arabia's proven gas reserves of 286 trillion cubic feet are the fourth largest in the world.

34 Oil Review Middle East Issue Two 2012

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Petrochemicals

Khaled Abu-Nasrah, President, Middle East Region, spoke to Oil Review Middle East about the main opportunities for KBR’s refining technologies in the region.

Refining technology

advancing A

BU-NASRAH BELIEVES THAT the future opportunities in the Middle East Region present KBR with a tremendous growth platform. “On the process technology side, KBR has played a leading role in many defining projects in the Middle East. We have provided technology to the region’s leading NOCs in ammonia, ethylene, refining, and specialty chemicals like Phenol and Aniline. Several of our technologies are widely recognised as providing the lowest CAPEX on grassroots projects while ensuring the highest safety and reliability,” he stated KBR has had a long history in providing expert refining technologies and there is a growing push for 'environmentally friendly' technologies. Abu-Nasrah explained: “Operating companies in the Middle East are paving the way for adopting environmentally friendly technologies and decreasing their carbon footprint as is evidenced by corporatewide initiatives such as SABIC’s “Sustainability” initiative.” He added: “Throughout the region, we are seeing ROSE© Simplified Block Flow Diagram fertiliser and petrochemical producers placing greater emphasis on “energy conservation:” and KBR is playing a leading role in providing process technology to achieve this. Independent sources have cited our ammonia technology as having the lowest energy consumption in the industry. Our FCC technology in KBR’s Residuum Oil Supercritical Extraction or refining has the lowest NOx emissions.” ROSE technology is by far the industry’s Abu-Nasrah feels that progressive operating companies in the region leading solvent deasphalting technology have realised that in the future, they will have an edge over their competitors if they are able to clearly demonstrate that their products are manufactured without impacting the environment or at least demonstrating they have taken steps to ensure the same.

ROSE technology

Abu-Nasrah discussed the importance of KBR’s ROSE ® technology and its applications in the region. “Our Residuum Oil Supercritical Extraction or ROSE technology is by far the industry’s leading solvent deasphalting technology,” he said. Essentially, this technology allows refiners separate valuable components from the heavy (non-distillable) portions of a barrel of crude oil – the so called “bottom of the barrel” solution. “Implementation of ROSE has many benefits from maximising yields on products such as gasoline and lube oils to allowing refineries to diversify into products such as road asphalt and anode-grade coke.” There are many examples of ROSE being implemented across the region last year. KBR was awarded a contract by Saudi Aramco Lubricating Oil Refining Co. (Luberef) to implement KBR’s technology in Luberef’s Yanbu Refinery Expansion Project in Saudi Arabia. KBR was to provide technology licensing and basic engineering services to revamp and almost double the capacity of Luberef’s existing Propane Deasphalting (PDA) Unit. The existing PDA unit, which is currently based on conventional SDA technology, will be converted to KBR’s ROSE technology. In addition to increasing production volumes, the PDA revamp will allow Luberef to increase the production of brightstock and by-products.

36 Oil Review Middle East Issue Two 2012

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Abu-Nasrah talked about trends emerging within the region's petrochemicals/refining sectors. “We see greater integration between refining and petrochemical operations particularly in light of competition for conventional feedstocks like natural gas and ethane.” He added: “Further, we see a much greater emphasis on development of downstream industries/clusters to add more value to basis chemicals within the GCC region – which will have a direct positive impact on regional job growth.” In conclusion, Abu-Nasrah, discussed how KBR could help the productivity concerns in Middle

Khaled Abu-Nasrah, President Middle East, KBR

Eastern refiners. “We are already working with several clients to optimise their existing operations to maximize productivity and profitability through our various technologies. As I mentioned earlier, we are using our ROSE technology to help refiners maximize yields and thereby directly impact their margins. We are also working with refiners to explore ways to convert what are ordinarily considered “waste streams” into high value products like propylene using a proprietary technology called Superflex. Our refining experts call this “molecule management” – i.e. how can we extract the maximum value out of each molecule of crude oil.”■

QPIC post strong Q4 results QURAIN PETROCHEMICAL INDUSTRIES Company (QPIC) posted strong financial results for the Q4 with net profit of US$ 64.9mn. Chairman Sheikh Mubarak Abdullah Al Mubarak Al Sabah commented on the PTAPET project. QPIC is currently contacting world leading consultancy firms in preparation to conduct a detailed feasibility study as well as engaging with technical

partner to cooperate in developing the project. Al Sabah also added, speaking about the PTA-PET project that was mentioned by the minister among other projects, “The PTA-PET project was suggested at first by QPIC more than two years ago, and right when QPIC provided PIC with the project’s required details and market studies being economically viable, PIC decided to move on with the project

without informing or coordinating with QPIC management.” Concluding the event, Al Sabah commented on QPIC’s future plans,“ QPIC is actively seeking new partnerships with well reputed entities and major financial consulting agencies to pick viable and reliable investments across the GCC and Middle East region, in collaboration with world leading investment banks and consultants.”

Oil Review Middle East Issue Two 2012 37

Petrochemicals

Refining trends

Petrochemicals

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QP and Qapco to build a petrochemical complex in Ras Laffan QATAR PETROLEUM (QP) and Qatar Petrochemical Co (Qapco) signed a Heads of Agreement (HOA) for the development of a new US$5billion petrochemical complex in Ras Laffan Industrial City. The complex includes a world-scale steam cracker, with the feedstock coming from natural gas plants in Ras Laffan. The project is scheduled for completion in 2018. The plant will produce petrochemical products mainly to be sold to highgrowth markets in Asia, Africa and Latin America, the country's energy minister Mohammed Al-Sada said at the signing ceremony. The plant, which will include a steam cracker, will produce 1.4mn tonnes per annum of ethylene, 850,000 tonnes per annum of high-density polyethylene, 430,000 of linear low-density polyethylene, 760,000 tonnes per annum of polypropylene and 83,000 tonnes per annum of butadiene. Qatar plans to spend US$25 billion on expanding its domestic petrochemical industry over the next decade and will more than double its annual petrochemical production capacity from 9.2mn tonnes now to 23mn tonnes by 2020, Sada said at the beginning of the year. Qapco is jointly owned by Industries Qatar with an 80 per cent stake and France's Total with a 20 per cent stake. QP and QAPCO will jointly develop the petrochemical complex. QP and QAPCO have been working together for the past few months to plan the development of the project, which will contribute in meeting the continuously growing global demand for various petrochemical products.

Foster Wheeler gets EPC contract in Jubail FOSTER WHEELER SAID the subsidiaries of its Global Engineering and Construction Group have won a contract to develop a Propylene Oxide unit at Jubail industrial city in Saudi Arabia. The engineering, procurement and construction management (EPCm) contract was awarded by Jubail industrial city Aramco Overseas Company (AOC), a subsidiary of Saudi Aramco, and Dow Europe Holding for its Saudi-based venture Sadara Chemical Company. This unit will be part of a world-scale, fully integrated chemicals complex owned and operated by Sadara. The deal has been awarded as an extension to the front-end engineering design (Feed) contract given to Foster Wheeler by AOC and Dow in 2008. Foster Wheeler did not disclose the exact contract value for the project, but said it will be included in the company’s fourth-quarter 2011 bookings. “A key factor in this win was the outstanding Foster Wheeler performance delivered on previous work for Saudi Aramco and Dow,” remarked Umberto della Sala, chief operating officer of Foster Wheeler.

Sabic and Sinopec gets approval for US$5 billion methanol plant SAUDI BASIC INDUSTRIES Corporation (Sabic) and China Petroleum & Chemical Corp (Sinopec) have started negotiations with Trinidad and Tobago to build a US$5.3 billion methanol complex there, Sabic said. Sabic and Sinopec together were selected by Trinidad and Tobago over other international bidders, Sabic said. "This approval marks the launch of negotiations to build the complex and is not binding to either side until final agreement is reached,” Sabic said in a statement. No timeframe for the final agreement was given

A methanol plant

nor the capacity of the plant which will produce methanol and then convert it to olefins. Sabic, also has an agreement with Sinopec to build a US$1 billion-plus polycarbonate plant in Tianjin where the two companies have already started operating a petrochemical joint venture in 2010. Sabic, the world's largest petrochemical company by market value, is 70 per cent owned by the government of Saudi Arabia and makes chemicals, fertilisers, plastics and metals used in paint, rubber, textiles, cleaning and other consumer products.

Six expansion projects in Jubail approved THE ROYAL COMMISSION for Jubail and Yanbu has given the green light for expansion projects at six industrial projects at a cost of US$5.65 billion in the Jubail Industrial City. The project signing ceremony was attended by Commission Chairman Prince Saud bin Abdullah Thunayyan, at Jubail Industrial City. Al Jubail Petrochemical Company (Kemya), a joint venture between Saudi Basic Industries Corp. and Exxon Mobil Corp. has won a deal, the largest in value, to set up an industrial complex on an area covering 32.7 hectares. The US$3.2 billion facility is to produce ethylene propylene diene monomer, rubber and black carbon that are used in automobile industry, the Saudi Press Agency reported.

38 Oil Review Middle East Issue Two 2012

The second project, costing US$80mn , was awarded to Jubail Chemical Industries Company (JANA) for setting up an industrial complex for the expansion of existing industries and adding new products with an annual production capacity of 600,000 tonnes. These included products used in a number of downstream industries such as painting, leather and several chemical industries. Saudi International Petrochemical Co. (SIPCHEM) has been allocated a US$750mn venture to produce ethylene vinyl acetate and low-density polyethylene with a capacity of 200,000 tonnes a year. National Industrialization Co., or Tasnee, obtained approval to develop a US$370mn project to produce super-absorbent

polymers with the capacity of 80,000 tonnes a year. The US$530mn expansion of Saudi Arabian Fertilizer Co. (SAFCO) includes production of 3.67mn tonnes of urea annually. Urea is a major component in the manufacture of several synthetic products such as the melamine and fertilisers. Its technology will also take care of the preservation of the environment such as elimination of carbon dioxide by recycling it for manufacture of urea. "The Two industrial cities in Jubail and Yanbu in the recent year received licenses for new projects worth about US$38 billion while the current investments there stand at US$180 billion," Prince Thunayyan said.

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Petrochemicals

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Power outage affects plants in Jubail

‫أﺣـﺬﻳـﺔ ﻣـﺮﻳـﺤـﺔ ﻋـﻤـﺎل ﺷـﺎﻗـﺔ‬ COMFORTABLE FOOTWEAR FOR TOUGH JOBS

SAUDI POLYOLEFINS CO (SPC) has ramped up the operating rate at its 720,000 tonne/year polypropylene (PP) plant in Al-Jubail to 100 per cent capacity after restarting it at the end of January. The plant, which has two lines, was shut because of a power outage at the Al-Jubail industrial park in mid January. “We are trying to meet as many customers’ requirements as possible. All our key accounts will not be affected by the outage,” said the source. SPC is a joint venture between National Industrialisation Co (TASNEE), which owns a 75 per cent stake, and LyondellBasell, which owns the remaining 25 per cent. Earlier, SABIC said it had achieved normal operating rates at the company's Al-Jubail PP facilities, which were hit by the same power outage. Saudi Ethylene and Polyethylene Co (SEPC), which runs SEPC runs a high density polyethylene (HDPE) unit and a low density polyethylene (LDPE) plant at Al-Jubail, each with a capacity of 400,000 tonnes/year, was also affected by the same power cut.

QP, CNPC to push ahead with China refinery

‫ﻣﺼﻨﻌﻮن ﺣﺬﻳﺔ اﻟﺴﻼﻣﺔ وا ﺣﺬﻳﺔ اﻟﻌﺴﻜﺮﻳﺔ‬ Manufacturer of Safety & Military Footwear

40 Oil Review Middle East Issue Two 2012

CHINA NATIONAL PETROLEUM Corp (CNPC), Qatar Petroleum and Royal Dutch Shell agreed to push ahead with plans to build a US$12.6 billion refinery and petrochemical complex in east China. China National Petroleum Corp (CNPC) said the company and its joint venture partners signed an agreement to cooperate further on the project while Chinese Premier Wen Jiabao visited Doha in January. "The three parties will cooperate further to push for the implementation of the project. The investment is a major development that will deepen CNPC's cooperations with a major Middle East resource nation and an international oil company," CNPC, parent of PetroChina, said in a statement. The statement on CNPC's website didn't provide further details on the project. The project includes a 400,000 (bpd) refinery and a 1.2-million-tonne-per-year ethylene complex. It will be located in the east coastal city Taizhou, won initial government approval in June. The Taizhou refinery and petrochemical project in Zhejiang province will import condensate and raw materials to produce ethylene and other petrochemical products, according to an earlier statement by CNPC, after an initial framework agreement was reached in October.

S09 ORME 2 2012 Noga 1_Layout 1 22/02/2012 17:29 Page 41

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Bahrain’s National Oil & Gas Authority (NOGA), is working through domestic politics and resource constraints to power the kingdom forward. NOGA Review

The power behind

the kingdom T

HE FIRST GULF state to discover oil back in the 1930s, Bahrain is thinking big, despite its limited resources. With plans to double oil production and upgrade and modernise existing energy facilities, there are busy times ahead. At the heart of it all is Bahrain’s state-owned National Oil & Gas Authority (NOGA). Though not blessed with the same depth of reserves as other Gulf states oil reserves are estimated at just 125mn barrels - the tiny kingdom is nonetheless making the most of what it does have. Oil production, around 40,000 barrels per day (bpd), fades into insignificance compared to regional superpower Saudi Arabia. But at a fraction of the size of its larger neighbour - Bahrain is home to just 1.2mn people, half of them expats - this oil production has provided a good base from which the government has developed the economy and diversified it into new areas.

Future links Manama’s modern skyline of gleaming steel and glass towers, home to one of the Gulf’s top financial districts, shows how the nation has moved beyond hydrocarbons. And strong bilateral relations with Riyadh have yielded additional benefits, too, with Saudi Arabia channeling some of its vast oil production for processing at the 250,000 bpd Bahrain oil refinery at Sitra, a major export generator for the country.

Many of these operating units are now implementing significant growth and modernisation programmes

www.noga.gov.bh

Saudi Arabia provides most of the crude for the refinery via a cross-border pipeline, another project underway as the two sides seek to bolster future links. The US$350mn joint project will replace and expand the 60-year-old pipeline. Bahrain also receives a large portion of the net output and revenues from Saudi Arabia's shared Abu Saafa offshore oilfield. NOGA’s reach spreads throughout the nation’s energy economy, upstream and downstream, from pipelines and production through to state-of-the-art transport fuels.

NOGA is active on multiple fronts

Oil Review Middle East Issue Two 2012 43

NOGA Review

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The holding company, NOGA Holding, is the business and investment arm of NOGA responsible for the government’s work in operating companies throughout the energy chain. Flagship companies include Bahrain Petroleum Company (Bapco), which owns the nation’s refinery, Bahrain National Gas Company (Banagas), plus upstream oil operator Tatweer Petroleum. Other NOGA entities include: Bahrain National Gas Expansion Company (BNGEC), Bahrain Aviation Fuelling Company (Bafco), Bahrain Lube Base Oil Company and the Gulf Petrochemical Industry Company (GPIC). Headed by new chief executive, Shaikh Mohammed bin Khalifa bin Ahmed al-Khalifa, appointed towards the end of last year, NOGA is active on multiple fronts.

upgrading its refinery, to boost output to as much as 450,000 bpd by 2018, NOGA officials told the World Petroleum Congress in Qatar, at the end of last year. A lot of progress has already been made on the upstream side with output at the Bahrain field also known as the Awali field - creeping up from around 32,000 bpd some years earlier. Discovered in 1932, Awali’s crude oil production peaked at more than 75,000 barrels per day (bbl/d) in the 1970s, before sinking steadily downwards. After reaching the present level of 40,000 bpd, the next target is to take output to between 70,000 to 75,000 bpd by 2014, with associated gas production also rising to around 1.6 billion cubic feet per day. Within five years the intention is to get production capacity up to 100,000 bpd, a record.

It will enable Bahrain to produce oil from the Rubble reservoir which is located approximately 1,600 feet below the surface. The injected steam will help in heating up the oil and make it much easier to flow out of the reservoir and be produced from the well. The steam injection pilot project is a test to see if production can be improved by the injection of steam. If successful it will be commissioned on a wider scale. The steam injection pilot followed the opening of a new gas compression station in the Bahrain oilfield. As well as steam flooding, Tatweer Petroleum is also using water-flooding techniques to boost production from the legacy field’s reservoirs.

Upgrading Many of these operating units are now implementing significant growth and modernisation programmes designed to maximise Bahrain’s finite energy wealth. As well as upgrading the Saudi pipeline route, this includes boosting oil production from the strategic Bahrain oilfield from 40,000 bpd to as much as 100,000 bpd by 2017. The long-serving Bahrain field spans most of the onshore area of this small Arab Gulf island state. Bahrain is also spending US$6 billion on

Advanced technologies This means tapping in to more advanced technologies to boost recovery rates, with the aid of foreign partners. At the start of the year, Tatweer Petroleum which groups NOGA with the US’ Occidental Corporation (Oxy) and Abu Dhabi’s Mubadala Development Company - inaugurated a heavy oil steam injection project at the field. It is the first time that steam has been injected into an oil reservoir on the Bahrain field.

NOGA is also keen to look at the offshore potential in the Gulf of Bahrain Exploration hunt Despite this incremental success, Bahrain’s limited reserves mean it must actively seek out new reserves if it is to maintain production in the longer term.

More advanced technologuies will be required to improve production

44 Oil Review Middle East Issue Two 2012

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NOGA Review

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At more intensive production rates, the state’s oil reserves may only last 10 to 15 years, according to some estimates. It means oil and gas exploration has taken on a higher priority for NOGA in recent years. As a result, the state oil concern is partnering international companies in this area too. Oxy, for example, is working with NOGA and Bapco to further explore offshore Blocks 1, 3 and 4 in the kingdom over a seven year period. A few years ago, Bahrain also launched a bid round for exploration of its onshore natural gas fields at up to 20,000 feet (6,096 metres) below sea level. Oxy won the contract, beating Canadian Natural Resources and fellow US-based Hess Corporation from a shortlist. Several wells are expected to be drilled this year to confirm the presence of the deep gas, beneath the Khuff reservoirs, in the so-called preKhuff stratum. Other companies conducting exploration work in partnership with NOGA include Thailand’s PTTEP, which operates Block 2 off northern Bahrain. Chevron, Petronas and EnCana are also among those to have taken on blocks in the past decade although results have not been significant. Bahrain is also keen to look at the offshore potential in the Gulf of Bahrain, including areas that became available for exploration after the International Court of Justice’s March 2001 resolution on a territorial dispute with Qatar. The court awarded sovereignty of the disputed Hawar Islands to Bahrain, opening up a potential new area to exploration and production.

Gas focus The production of more gas from the Awali field is equally significant - as is the search for new deposits - providing a filip to the nation’s industrial and social development. This is another area that is becoming increasingly important for NOGA as domestic demand grows, as it does elsewhere around the Gulf. Bahrain’s offshore potential is being investigated

46 Oil Review Middle East Issue Two 2012

Bahrain's proven natural gas reserves are estimated at around 3.25 trillion cubic feet, much of it associated gas from the Awali field. Banagas operates a gas liquefaction plant that utilises gas piped directly from Bahrain's oilfields. But with gas reserves expected to last about 50 years at present rates of consumption, the search for new reserves is clearly a high priority. In the interim, Bahrain is contemplating imports of liquefied natural gas (LNG), following in the footsteps of peer states Kuwait and Dubai. The competition to work with Bapco to supply LNG is already hotting up with nine official bidders linked to the gas import initiative. The aim is to bring first gas ashore by 2014. Among the hopefuls are experienced USbased LNG regasification provider Excelerate Energy, which has worked with Kuwait on its gas import work, and IM Skaugen (IMS). At the end of last year, IMS took delivery of its latest LNG ship, Bahrain Vision, a small scale vessel with a capacity of 12,000 cubic metres. Under the Skaugen plan, LNG would be delivered to the Bahrain import terminal by a multigas LNG carrier, the cargoes being either sourced regionally or shuttled from the former Soviet Union. The shore-based receiving terminal would store LNG in large horizontal, cylindrical, pressure vessel tanks prior to regasification; new tanks could be added if demand grows. In the past, Bahrain has also sought to import pipeline gas from Iran although this project has been held up for years, and derailed frequently by difficult political issues.

Refinery plans NOGA is also steering investment in the downstream industries starting with the refinery. The Bahrain refinery, owned by Bapco, was built in 1935 and was the first in the Gulf. It has expanded through the years and

continues to improve operations, launching a low sulphur diesel production complex in 2007 to produce modern fuels. More recently, Bapco launched first production of lube base oils last September at the Bahrain lube base oil plant, based at the refinery on the country’s east coast. This project is a joint venture between NOGA Holdings, Bapco and Neste Oil of Finland. The site - which has a production capacity of 400,000 metric tons a year - manufactures premium quality VHVI (Very High Viscosity Index) Group III base oils for blending top-tier lubricants. At the opening, the newly-appointed NOGA Holdings CEO hailed the plant as one of the world’s largest units of its type, featuring the very latest technology. The use of Group III base oils will reduce sulphur emissions to the atmosphere, increase the life of lubricating oils, and provide additional engine protection. The investment also created new jobs and helps mark Bahrain as a global leader in lubricating base oils. Neste Oil is responsible for the sales and marketing of the plant’s output, with Bapco responsible for the operation of the plant. There are ambitions also to develop in other downstream directions too. GPIC is a joint venture of Petrochemical Industries of Kuwait, the Saudi Basic Industries Corporation (SABIC), and the government of Bahrain. The GPIC plant, completed in 1985, produces ammonia and methanol for export. GPIC is equally plotting a large expansion at the Sitra site worth a potential US$2 billion. The company achieved its highest ever production rates of ammonia, methanol and urea last year. Total combined production for sale of all three products reached almost 1,195, 060 million tons, 1.9 per cent up on the previous record output. ■

S10 ORME 2 2012 Noga 2_Layout 1 22/02/2012 17:29 Page 47

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NOGA Review

S10 ORME 2 2012 Noga 2_Layout 1 22/02/2012 17:29 Page 48

GPIC sees profits soar

Bapco consortium signs key deal

GPIC WAS ABLE to manufacture a total of 1,575,018 tonnes of ammonia, urea and methanol in the last year, which was its highest annual output since the launch of the company. The urea plant achieved an annual record of 673,681 tonnes of production during 2011, which was the highest output since it went onstream in 1998. Thanks to the close co-operation with the marketers in Saudi Arabia (SABIC) and Petrochemical Industries Company Kuwait, the company was able to enjoy a high flow of exports with a total of 1,170,569 tonnes of products exported on board 61 ships. Owing to GPICâ&#x20AC;&#x2122;s significant record of safe operation and its strict measures for rationalisation of expenditure and the high level of manpower qualification, GPIC made net profits totalling US$265mn, an increase of US$127mn compared to 2010, which equals an increase of 48 per cent in net profit. GPIC has also been able to maintain its investment in the protection of the environment through its high level of productivity following the successful operation of the carbon dioxide recovery unit, which greatly and directly contributed to the reduction of carbon dioxide emissions and increased the output of the methanol and urea plants with reduced energy consumption. All these efforts and initiatives resulted in the company winning numerous awards during 2011 the most important of which was the Chemical Sector Award from the Royal Society for the Prevention of Accidents (RoSPA) UK for the tenth successive time.

ENERGY MINISTER AND Bapco board chairman Dr Abdulhussain Mirza signed a contract on procurement solutions and business efficiencies with the UK-based Achilles Information Limited. The signing ceremony, at the Bapco guest house Al Dar, in Awali, was also attended by Achilles chairman Colin Maund, who signed on behalf of the company. Bapco is leading a consortium of eight of the largest industrial firms in Bahrain - Alba, Asry, Bahrain Airport Services, Tamkeen and the Bahrain Tender Board - to identify collaborative sustainable procurement solutions which will provide business efficiencies and create benefits for the local economy in line with the government's Economic Vision 2030. The first project to be implemented in this initiative is the creation of a 'cloud-based' supplier Dr Abdulhussain Mirza development software solution to enable the consortium to collect and manage accurate supplier information, develop supply chain efficiencies, reduce risk, improve quality and drive local supplier development initiatives. Speaking on the occasion, Dr Mirza said Achilles, as one of the world's leading managers of supplier information, was an ideal partner.

Key steam injection project launched ENERGY MINISTER DR Abdulhussain Mirza has opened Tatweer Petroleum's new Rubble Heavy Oil Steam Injection project. The inauguration ceremony was attended by Tatweer chief executive Dr Ed Hanley, its executive management, Banagas chief executive Shaikh Mohammed bin Khalifa Al Khalifa and other guests. This is the first time that steam has been injected into an oil reservoir in the Bahrain Field. This will enable Bahrain to produce oil from the Rubble reservoir, which is located approximately 1,600 feet below the surface. The injected steam will help in heating up the oil and make it much easier to flow out of the reservoir. Tatweer's first steam injection pilot project is a test to see if oil production can be improved by the injection of steam. If successful, it will be commissioned on a wider scale in the Bahrain Field. Dr Mirza congratulated Tatweer for this achievement in introducing the new technology to the Bahrain Field and allowing the kingdom to reach its resources more efficiently. This project is one of many that Tatweer has commissioned in the field and comes in less than a month from the second phase of its new gas compression station in the Bahrain Field.

48 Oil Review Middle East Issue Two 2012

www.tatweerpetroleum.com

Meanwhile, Dr Mirza yesterday met a delegation of senior officials from international oil company Chevron. He praised efforts of the company in the oil and gas sector. Dr Mirza also hailed co-operation between the National Oil and Gas Authority (Noga) and Chevron, as well as the historical relations between Bahrain and the company. The minister stressed the importance of co-

operation and exchange of expertise between Chevron and Bahrain's national oil companies under the administration of the Nogaholding Company for the benefit of the oil sector. Dr Mirza discussed with the delegation the role of Chevron in the production of oil and gas in the kingdom and several other issues. The meeting was attended by Bapco chief executive Gordon Smith and members of the executive management.

S10 ORME 2 2012 Noga 2_Layout 1 22/02/2012 17:29 Page 49

A valuable project

THE DYNAMIC PACE of redevelopment in the Bahrain Field is on fast track to drill 3,600 new wells over the next 20 years as Tatweer Petroleum Company continues to expand the oil and gas production capacity for the kingdom with ongoing technology innovation to enhance the oil recovery processes. Energy Minister Dr Abdulhussain Mirza congratulated the management and employees of Tatweer Petroleum for drilling oil well number 1,000 as he visited the site in the Bahrain Field near Jebel El Dukhan. The well has been The Bahrain Field - more wells successfully drilled and put on production. Bahrain's first oil well was drilled in 1931 and since the handover of the Bahrain Field operations in December 2009, Tatweer Petroleum has drilled more than 200 oil and gas wells.

BANAGAS OPERATES LPG plant facilities to recover Propane, Butane and Naphtha from Associated gas (from oil wells) and Refinery Off gas. Liquefied Propane and Butane are transferred to refrigerated storage tanks located at the Sitra Wharf area for ship loading. Naphtha is sent to the Bahrain Petroleum Refinery (Bapco) for storage and subsequent export. The residue gas is used as fuel for Banagas furnaces and gas turbines, and the rest is supplied to Aluminum Bahrain (Alba), Riffa Power Station and the Bapco Refinery. This residue gas, of about 250mn standard cubic feet per day (MMSCFD), represents 25 per cent of Bahrain's daily fuel gas consumption. The original plant was commissioned in 1980 with capacity of 110 MMSCFD of Associated Gas. At present BANAGAS operates two gas-processing trains with a total feed gas throughput of about 300 MMSCFD. The low pressure associated gas is collected from 16 well manifolds in the Bahrain Oil Field. The gas is separated in Gas Oil Separators (GOSPâ&#x20AC;&#x2122;s) which are operated by Tatweer Petroleum, the Bahrain Field Operator, at a controlled pressure of about 35 psig. The gas from the well manifolds is distributed to all seven Compressor stations operated by Banagas. Additionally, low pressure non-dehydrated Refinery Off gas is also supplied from Bapco refinery to compressor stations 6 and 7, where it is compressed along with the associated gas and delivered to the Central Gas Plant for LPG recovery.

Oil Review Middle East Issue Two 2012 49

NOGA Review

Tatweer milestone

NOGA Review

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A new record in safety GPIC (GULF PETROCHEMICAL Industries Company) has achieved a record number of working hours without any accident, which is equivalent to 4,413 days of work, the highest achievement in the history of the company. This landmark comes after a year full of achievements and honours, which the company believes is unprecedented in the field of safety, health and the environment at local and global levels. This year, the company was able to win deservedly the chemicals sector award for health and safety from the British Royal Society for the Prevention of Accidents award (RoSPA), outperforming approximately 5,000 other companies, including major international firms, which GPIC claim is an unprecedented achievement in the chemicals sector, where the company has achieved 10 awards during the past 11 years. The company also won this year a Safety Award from the British Safety Council, for the fourth time in a row. In the area of environment, GPIC was awarded for the best environmental management of an industrial enterprise in the private sector in the GCC. In a statement on the occasion, Mr. Abdulrahman Jawahery GPIC President said that he was very happy with these impressive achievements highlighting that GPIC is an example of honourable and excellent co-operation within the GCC. It is worth mentioning that the National Safety Council, USA, recently appointed Mr. Abdulrahman Jawahery as a member of the Board of Directors of the National Council for the safety of the United States of America in the past is the first of its kind in the Arab world and the Middle East. GPIC has a worldwide reputation in the petrochemical sector gained locally and globally. In the field of safety, health and the environment, the company won an award for safety, health and the environment from the National Safety Council, USA, as well as Sir George Earl of the Royal

www.gpic.com

Society for the Prevention of Accidents (RoSPA), UK, and the award of the Kingdom of Saudi Arabia for the best system in environmental management in the Arab world for the second time in a row. GPIC also received the award of HH Sheikh Abdullah bin Hamad Al Khalifa (President of the General Authority for the Protection of Marine Resources, Environment and Wildlife) for the best environmental garden of all industrial enterprises, and the award of the Arab social responsibility of enterprises.

Taking care of business

Bapco now an OSRL member

THE NATIONAL OIL and Gas authority (NOGA) is the government's body in Bahrain responsible for regulation, policy and control of the nation's hydrocarbon assets. Nogaâ&#x20AC;&#x2122;s vision is to be the recognized oil and gas industry leader, fueling economic growth and improving living standards. Its mission is to regulate, oversee and develop the oil and gas and related industries in the Kingdom of Bahrain by providing general www.noga.gov.bh policies and strategic direction, securing a sustained supply of oil and gas to meet existing and future requirements and maximizing returns and contributing to the growth of the National Economy. Noga also encourages joint ventures, co-ordinates with operating companies to start joint downstream projects with GCC, regional or international companies, all with the aim of increasing profitable petroleum investments.

BAPCO HAS BEEN welcomed as the newest participant member of Oil Spill Response Limited (OSRL), it was revealed recently. An associate member since 2007, the company now has access to OSRL services worldwide. It also reinforces the strategic importance of ORSL's Bahrain base and brings OSRL closer to its members in the Middle East. OSRL chief executive Archie Smith said Bapco had been a strong supporter and they had together worked on a number of projects enhancing oil spill preparedness. OSRL is part of the Global Response Network, a collaboration of seven major oil industry-funded spill response organisations whose mission is to harness co-operation and maximise the effectiveness of oil spill response services worldwide. Meanwhile, Bapco achieved another major milestone in terms of safety and reliability when the Refinery Reliability Clock reached 90 days without a reset. This means that the refinery process units and supporting facilities have operated for 90 days without any unplanned shutdown lasting longer than a day. This is the fourth time that this 90-day target has been achieved and could have only been possible with great teamwork from all employees. While this milestone represents a worthy achievement at any time, it is of special significance to Bapco as this target improves cost- effectiveness and ensures lost profit opportunities are minimised. "In January we achieved one million combined Bapco and contractor employees without a lost time injury," a spokesman said. "Key performance indicators, such as these, show how well Bapco has moved towards safe work habits and business processes based on a robust safety and reliability culture," he added.

50 Oil Review Middle East Issue Two 2012

S11 ORME 2 2012 Sogat_Layout 1 22/02/2012 17:30 Page 51

S11 ORME 2 2012 Sogat_Layout 1 22/02/2012 17:30 Page 52

Sogat 2012

The Middle East’s dedicated Sour Oil and Gas conference and exhibition returns with more content and exhibitors in its eighth edition

Sour oil and gas in the

spotlight S

OUR OIL AND Gas Advanced Technology (SOGAT) 2012 in association with ADNOC, will take place from March 2529 at Hilton Abu Dhabi. SOGAT 2012 will examine all the ongoing international sour field projects as well as the beneficial uses of the sulphur by-products, particularly through the latest research findings in Qatar. Also through its various pre-conference workshops it will examine the most relevant technical aspects in more depth as well as discussing the beneficial use of the associated CO2 in ongoing firsts in the UAE, Qatar and Saudi Arabia together with new global initiatives in the 6th International CO2 Forum. Sponsors include: ADNOC, Oxy, Shell, Al Hosn Gas, Saudi Aramco, TOTAL, Qatargas, Dow Oil & Gas, Enersul, GLE, and Sulphur Experts. 2011 was a record year with more than 500 delegates from 23 countries attending SOGAT over five days: with the SOGAT Conference, five separate Workshops and two technical Forums, alongside the Exhibition. As the event keeps on increasing in size and global interest, delegates’ feedback confirms its unique specialisation on sour gas and oil topics focusing on the Middle East. The organisers of SOGAT, Dome Exhibition, expect another strong gathering at the end of March. Nick Coles Director, Dome Exhibitions, said: “SOGAT 2012 continues to expand in content, exhibitors and will do even more so for 2013 as I am looking at expanding the event’s technical scope.” As with previous SOGAT events, the attendees are drawn from senior technical management, engineers and engineering staff. The event is unique and is now the established meeting place for all those involved in sour oil and gas developments focused on the Middle East.

www.sogat.org

SOGAT 2012 will consist of an international conference, an international CO2 Forum, six workshops and an exhibition

Sour Gas Sour gas is getting a lot of attention in region and there is high level of activity in sour gas field development in the Middle East. Gas is playing a much greater role in the region’s developing economies. With the demand for gas for infrastructure and power needs ever increasing the pursuit for development of non-conventional gas deposits persists across the region with sour hydrocarbon field recovery gaining priority in many countries.

52 Oil Review Middle East Issue Two 2012

Oman is currently developing a gas/condensate field in the south containing 3 per cent H2S and 16 per cent CO2 and another field some 300 km from Muscat also with 3 per cent H2S and 6 per cent CO2. Kuwait is studying the challenges of developing HPHT Jurassic sour gas fields both from the point of view of rig and rigless operations and is joined by Saudi Arabia in the prospects of intelligent sour field management given their preference for smart field operations.

Saudi Aramco is aiming to produce 2.5 billion cf/d of sulphur rich non associated gas to be processed at Wasit. Additionally they are looking at the potential of sour gas processing from the Kidan field as well as bringing on the on-shore Karan Field with the 450 MMcf/d of sour gas expected to yield 67 per cent sales gas. Iran is also addressing its sour field issues having just announced that the 12th phase of the South Pars, when operational in 2012, will produce 84 million cubic meters of sour gas per day. The Shah project when operational will process well fluids containing 23 per cent H2S and 10 per cent CO2 thus making the project a new benchmark for the world’s gas processing and treating industry. Alongside this project are the future expectations of developing the sour Bab and Hail fields.

S11 ORME 2 2012 Sogat_Layout 1 22/02/2012 17:30 Page 53

Sogat 2012

SOGAT Conference The 8th International SOGAT Conference will take place between March 27–28. The mixture and importance of the papers to be presented at the 8th International SOGAT Conference reflect the ongoing interest in all aspects of international sour gas field developments and management. Once again all the papers have been selected by a high distinguished Advisory Committee. The papers will cover a number topics including: 6 Sour Oil and Gas Operational and Development Plans Worldwide 6 Sour Gas Management with particular respect to HSE 6 Sour Gas Processing of Ultra Sour and Low Quality Gas Fields 6 Sour Gas Reservoir Characterization and Optimisation 6 Well Completions & Production 6 Sulphur Management & Uses

CO2 Forum: This year’s event is also enhanced by the breadth and scope of the papers to be presented at the 6th International CO2 Forum. The papers will cover: 6 CO2 Recovery & CCS 6 CO2 Sequestration 6 CO2 Injection – Reservoir Management, Benefits and Impacts 6 CO2 Applications, Management Issues and Industrial Experiences

SOGAT Workshops: In addition to the conference and CO2, SOGAT 2012 will host a number of workshops. There will be 6 workshops covering Sulphur Recovery; Sour Gas Treatment and Effective Management; H2S Safety; Practical Guidelines for Developing a Digital Oilfield Implementation Strategy for

Sour gas development is set to increase in the region

Sour Environments; Filtration & Contamination Control; and Fluor Sour Gas Development Projects.

SOGAT Exhibition: As in previous years there will be an exhibition of equipment and services focusing on the expanded themes of the event. There will be over 31 exhibitors, including Fluor, Black & Veatch, BASF, WorleyParsons, UOP Honeywell and DOW Oil & Gas. ■

For more information visit www.sogat.org and for all enquires please contact the exhibition organiser- tea@domeexhibitions.com.

Oil Review Middle East Issue Two 2012 53

Innovations

S12 ORME 2 2012 Innovations 1_Layout 1 22/02/2012 17:30 Page 54

New HyIntensity Fiber Laser cutting systems HYPERTHERM RELEASED TWO new HyIntensity Fiber Laser systems: the 2.0kW HFL020 and the 1.0kW HFL010. These two new systems join a 1.5kW system unveiled in 2010 as the first fully-integrated fiber laser systems designed specifically for cutting applications. â&#x20AC;&#x153;Our integrated fiber laser solution is unique as all of the components are engineered and designed to work together. Cutting application specialists defined and validated all of the cutting parameters so our partners and their customers can easily use laser for a broad range of applications including HyIntensity Fiber Laser HFL020 marking, efficient processing of thin and fractional materials, and fine feature cutting,â&#x20AC;? said Doug Shuda, Hyperthermâ&#x20AC;&#x2122;s fiber laser product manager.

New deep-water pipeline concept DNV HAS DEVELOPED a new pipeline concept, called X-Stream, that can significantly reduce the cost of a deep- and ultra-deepwater gas pipeline while still complying with the strictest safety and integrity regime. X-Stream is based on established and field-proven technologies which have been innovatively arranged. X-Stream can reduce both the pipeline wall thickness and time spent on welding and installation compared to deep-water gas pipelines currently in operation. The exact reduction in the wall thickness depends on the water depth, pipe diameter and pipeline profile. Typically, for a gas pipeline in depths of 2,500m, the wall thickness reduction can be 25 to 30 per cent compared to traditional designs. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s essential for DNV that the new concept meets the strict requirements of the existing safety and integrity regime, and Iâ&#x20AC;&#x2122;m pleased to confirm that this concept does,â&#x20AC;? says Dr. Henrik O. Madsen, DNVâ&#x20AC;&#x2122;s CEO, said. New offshore oil and gas fields are being developed in deeper waters and export solutions for the gas are critical. The distance to shore is increasing too. The X-Stream concept can for such fields represent an alternative to e.g. floating LNG plants combined with LNG shuttle tankers. By controlling the pressure differential between the pipelineâ&#x20AC;&#x2122;s external and internal pressures at all times, the amount of steel and thickness of the pipe wall can be reduced by as much as 25-30 per cent - or even more compared to todayâ&#x20AC;&#x2122;s practice and depending on the actual project and its parameters. This will of course make it easier and cheaper to manufacture and install the pipeline.

Glori Energy agrees field implementation deal with PDO GLORI ENERGY SIGNED a field implementation contract with Petroleum Development Oman (PDO) that will see the company implement its AEROâ&#x201E;˘ (Activated Environment for Recovery of Oil) System in a field in southern Oman. Under the agreement, Glori will deploy its AEROâ&#x201E;˘ System for enhanced oil recovery into an existing PDO field in southern Oman. When compared to alternative enhanced oil recovery methods, Glori's technology, which is based on natural biologic processes, has a much lower cost and is more environmentally sustainable.

Under the contract, Glori immediately deploys resources and commences its S3 Process to customise the AEROâ&#x201E;˘ System for the PDO field. Upon completion of the customised solution, Glori's team will work with PDO to implement the AEROâ&#x201E;˘ System in the field. In support of this contract and other opportunities in the region, Glori will expand the capabilities of its regional office located in Muscat, Oman. "Glori is delighted to have the opportunity to enter into this field implementation project with PDO," said Stuart Page, CEO of Glori

Energy. "As our first Middle East project, this contract represents a key expansion of Glori's geographical scope and establishes a footprint for Glori in a very important oil region. Glori has demonstrated compelling results in field projects in the US and looks forward to achieving similar success in Oman.â&#x20AC;? The AEROâ&#x201E;˘ system makes use of existing non-potable water sources, optimising the water quality to activate and sustain the indigenous reservoir microbial life with the desired metabolic activities.

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54 Oil Review Middle East Issue Two 2012

Tel: +971 2 622 32 40 Fax: +971 2 622 32 49

S12 ORME 2 2012 Innovations 1_Layout 1 22/02/2012 17:30 Page 55

Endress+Hauser’s instrumentation support

SHELL GLOBAL SOLUTIONS International and ORTEC have signed a contract to work closely together on a worldwide scale. The cooperation will focus on the optimisation of The agreement secures the continuation of Shell and ORTEC 25 year working relationship supply chain processes and strategic decision making in up- and downstream engineering disciplines like planning & scheduling, gas field production capacity optimization, spare parts management, and cost estimating. Paulus Steenkamp, Vice President Manufacturing, Production and Engineering Software, Shell Global Solutions International, added: “In Shell’s drive to help secure a responsible energy future, ORTEC, with their high quality software development and technical consultancy services supports us in underpinning Shell’s strategic objective to deliver leading technology solutions.”

ENDRESS+HAUSER INTRODUCES THE Installed Base Audit programme, an instrumentation support program that helps plant managers and maintenance departments identify all the process instrument and analyser measurement devices in the plant, determine maintenance and calibration procedures for each device, keep the devices and processes running at peak efficiency, and reduce Total Cost of Ownership. The program begins with a plant audit by a trained Endress+Hauser instrument and analysr expert who, with the help of plant maintenance personnel, locates and identifies every measurement device. The expert enters device and application data into the Endress+Hauser W@M Life Cycle Management database including serial number, tag, manufacturer, location, age, process conditions, and what each instrument or analyzer is measuring (pressure, temperature, flow, pH, etc.). Next, working with plant engineering, production and maintenance personnel, the Endress+Hauser consultant assists in defining the critical points and assigns each measurement device a Criticality Level of high, medium or low. Based on this data, Endress+Hauser presents an overview of the installed base and makes overall recommendations for improving maintenance activities, such as preventive and corrective maintenance, standardisation of measurement device, and migration of the installed base to newer adevices. The plant gets an organized W@M database with the collected data, enhancing traceability and continued management of all installed measurement devices.

Oil Review Middle East Issue Two 2012 55

Innovations

Shell and ORTEC agree consultancy deal

Innovations

S12 ORME 2 2012 Innovations 1_Layout 1 22/02/2012 17:30 Page 56

Growing demand for automation and control solutions YOKOGAWA PROVIDED AN update on the company’s latest Instrumentation and Control (I&C) offerings in the region and what the main challenges and opportunities are in the oil and gas market. According to Herat Shah, Senior Business Development Manager, in 2012 Yokogawa: “would like to focus more on Middle East, BRIC and SE Asia markets with the main thrust on our Automation and Control solutions.” He added: “Middle East market and local support has been expanded during last few years and it will continue to expand further. Yokogawa investment, infrastructure, installations and manpower strength in Middle East – a long term commitment to our Middle East customers will continue in 2012.” Both FY10 and FY11 were quite promising for Yokogawa and the company won a number of oil and gas projects in the region which included some of the biggest Refineries, Petrochemicals, Oil and Gas Separations, Gas processing, Offshore, Oil and Gas Wells. Instrument offering Yokogawa is dedicated to the I&C business and has an entire gamut of I&C solution for the oil and gas industry. According to Shah: “Yokogawa can provide complete I&C solution right from Satellite, Tie-in Offshore Platforms and Wellheads to Remote Degassing Station (Manifold) to Central Degassing Station (Oil, Gas, Water Separation) to Oil facilitates via MOL Pumps to Refineries or Gas facilities for further processing in Gas and Petrochemicals plants.” Yokogawa provides solutions for the entire value chain of the oil and gas process from Wellhead and offshore platforms that demands high physical strength for RTUs, SIS (ESD and FGS) to be mounted outdoor (under the sun-shade) to withstand high temperature & high corrosive atmosphere. Low power consumption and low heat dissipation with highly intelligent and smart field instruments interface on Foundation Fieldbus, HART protocols and Wireless field devices makes Yokogawa RTUs ideal for critical Wellhead applications. Upstream process demands outdoor RTUs with all-in-one functionality

of ESD, FGS, Process, PID Centum VP system e.g. Chock valve control. In addition, RDS and CDS have complete solution with state-of-the-art Distributed Control System (DCS) and Safety Instrumented System (SIS) with Asset Management System (AMS) to provide remote monitoring, configuration and diagnostics of all field parameters on long distances virtually without any distance limitations. R&D Shah said: “Yokogawa’s R&D investment is the highest in the I&C industry and we have continuously strived to provide products, solutions and technology which have been successfully commissioned in almost all the plants of renowned Oil and Gas customers worldwide. We cover complete portfolio in Field Domain, Control and Safety Domain and Asset and Business domain.” He added that: “All domains are tightly integrated and all products and systems have sophisticated and unique principle of operation with many patented designs which benefits customers in long run with ultimate aim of lowering the Total Cost of Ownership. We provide unprecedented features such as: Silicon Resonant sensors, Hardware availability and industry well-known seven 9’s availability of Yokogawa’s Pair and Spare technology, Specially designed ASIC chips, deterministic data highway, seamless integration between DCS, SIS and RTU to name a few.” Regional challenge Shah explained that to bring I&C systems to the Middle East brings specific challenges. “Large configurations to cater to large oil and gas processing plants in Middle East are completely different challenge compared to other countries. Severe climate conditions also plays an important

role to provide physical strength to system hardware without compromising the stability, accuracy and responsiveness of I&C systems,” he added. One of the main challenges facing the oil and gas industry is availability of hardware and at the same time availability of information to ensure uninterrupted plant operation without process upset. “Operators would like to possess as much information as possible on DCS console to effectively operator, monitor and control the plant. Faster update of parameters with refresh rate on graphics @ 1 sec, Smart Field parameters access from remote field, predictive maintenance and utilising these data for business domain applications” added Shah. Future Shah talked about the evolution of I&C systems for the oil and gas industry. “In terms of oil and gas it is still not a process which is complex , however, architectural based complexity makes the difference in selecting the I&C for any oil and gas application. Large system architecture, Lower Power consumption and Lower system loading and Longer distances are something where I&C manufacturers have to continuously work to achieve customer’s expectations. “ Yokogawa feels that in the future Wireless ISA100.11a future proof, FF-SIF, FDI, Lower footprint, Lower Cost of Ownership, Multi applications handling, tightly Integrated architectures at all levels will be demanded more and more.

Hardbanding offers solution for harsh drilling environments HARDBANDING SOLUTIONS, A business unit of Postle Industries, offers Duraband® NC for HPHT, Sour Gas, Highly Deviated and Geothermal Wells. Drilling these types of wells can be very hard on hardbanding and drill pipe tool joints. In addition, casing can show excessive wear. In these types of wells, typical hardbanding products that contain cracks frequently result in spalling and chipping caused by unwanted materials getting into and under the crack. This requires premature removal of the drill pipe for repair and re-application of the hardband, adding extra costs to any drilling operation. Non-Cracking Duraband NC is the ideal solution. It is the first product ever

56 Oil Review Middle East Issue Two 2012

Duraband® NC

developed offering maximum protection that is applied 100 per cent crack-free. Without cracks, high temperatures, steam, abrasives, and drilling fluids cannot penetrate into and underneath the hardband. Furthermore, it offers superior wear resistance and longer downhole life, thereby reducing drilling costs. Duraband® NC can be applied over itself without any special preparation. The cost of re-application is substantially reduced since it does not have to be removed. With other hardbanding products, the cost of reapplication can be three or four times higher since they have to be removed before reapplication.

S12 ORME 2 2012 Innovations 1_Layout 1 22/02/2012 17:31 Page 57

Innovations

AICCO awards Honeywell Yanbu contract ALAA INTERNATIONAL CONTRACTING Company (AICCO) awarded Honeywell the Process Control System at the Yanbu refinery for a Saudi Aramco project. The contract signing ceremony was held at the end of 2011. It was attended by AICCO President, Mr. Abdulfattah Al-Kahla with Honeywell Country Manager Mr. Mohammed Moosa. This partnership will provide more focus and collaboration of ideas to develop a more productive and positive result. AICCO is confident of awarding the contract to Honeywell in terms of quality of work and reliability. AICCO scope of work is mainly Control Systems and Instrumentation, however it also includes civil works and Mr. Abdul Fattah Al-Kahla, AICCO President and mechanical / Mr. Mohammed Moosa, Honeywell Country Manager piping tie-ins. In terms of utilities - AICCO will be providing a new PIB which will house three new BMS systems for the boilers and also new DCS equipment . In the Tank Farm area AICCO will be providing a new Satellite Instrument House which will house a new ESD system for the area, a new network MOV system where new MOV actuators will be installed throughout the Tank Farm. Additionally, AICCO will replace the existing tank level gauging with a new radar tank gauging system. Also, included is a new VMS system and new Emergency Isolation Valves. In the marine area, AICCO will provide the VMS system and replace MOV actuators and extend the DCS system.

New chemical monitoring product launched LUX ASSURE HAS launched its first product to market following a number of successful field trials with North Sea oil majors. OMMICA™ is a detection kit designed for use on or offshore to determine the concentration of methanol or monoethylene glycol (MEG) in oil or water. Operators in Africa, Australia and Europe have already adopted OMMICA™ and sales to North America and Brazil are anticipated in early 2012. The presence of methanol and MEG can cause serious issues during the processing of hydrocarbons and can lead to discounted pricing. Traditionally, the chemicals are monitored by more complex methods which are not convenient when working offshore. OMMICA™ offers a much simpler approach. Ms Emma Perfect, managing director, LUX Assure, said: “OMMICA™ is the first of the company’s products to be launched since we became focused on the oil and gas industry in 2010. We are extremely excited by the positive response OMMICA™ has generated so far from the oil and gas sector. Commercialisation work on our other technologies is continuing and we intend to launch our next product (CoMic™) for the large corrosion monitoring market soon.” OMMICA™ was initially funded and trialled by a North Sea Operator who required a quick and simple offshore method to monitor methanol and MEG in oil - OMMICA™ was the result. Development was also supported by a SMART:SCOTLAND grant from the Scottish Government. The firm is forecasting US$156,838 of sales in 2012, with an expected accessible global market of over US$1.57mn per year.

BUL BULWARK ULWARK AR A RK PROTECTIVE PR PR PRO RO OTE TEC CTIVE APPAREL APP APPAREL A EL Customer C Cu ustomer C Care: are: + +1-800-223-3372 1-800-22 223-3372 Em E Email: maai m a l: EMEAsalescontactsupport@vfc.com EM MEAsallescontactsup pp port@vfc.com + 971 5 56 61 49 1 68 4 +971 149 1684 JJAZFA AZF FA A LOB LO OB B 14 14 Ofﬁce Ofﬁce 444, 444, Dubai, Dubai, UAE UAE Oil Review Middle East Issue Two 2012 57

Innovations

S12 ORME 2 2012 Innovations 1_Layout 1 22/02/2012 17:31 Page 58

Innovations in oil and gas safety apparel explored APPAREL SPECIALIST VF Imagewear and Bulwark, its flame-resistant apparel brand, established a foothold in the region last year and recently sponsored a seminar that looked at innovations in the oil and gas safety market. Senior executives from VF Imagewear’s brands Bulwark® and Timberland Pro, and leading fabric manufacturers Tencate and Milliken were at hand to provide their insight into innovations in the oil and gas safety sector. One of the senior executives, Peter Keene said: “The purpose of this oil and gas safety seminar is to give people a comprehensive understanding of who we are and what we do. We have been around for over 40 years and we are very excited to learn more about the Middle East. We see the possibilities in the region as significant.” Stan Jewell, Vice President & General Manger, Bulwark Protective Apparel talked to Oil Review Middle East about the importance of VF and Bulwark establishing an office in the region and how safety awareness is increasing everywhere. “Bulwark is the largest flame-resistant apparel company in the world and we have expanded rapidly over the last ten years. VF bought over Timberland Pro in September last year,” Jewell said at the Seminar. VF opened a regional office in mid December which took more than a year to establish but “sets us up very nicely for 2012,” Jewell said to Oil Review.

58 Oil Review Middle East Issue Two 2012

“The office will cover the MENA region and will allow us to start hiring people and we will be adding people in 2012 both the sales and product sides,” he added. Jewell went on explain that: “the office that we have established here and warehouse and stock all speak to a permanence and commitment to this market. This addresses not only our goal Stan Jewell, Vice President & to be here for the long term but also to General Manger, Bulwark build the brands that we stand for.“ Protective Apparel He explained that one thing he observed about the Middle East is that there is a lot of brand recognition making brands very important in this market. VF is a company about brands, he stressed. “We aim to bring our innovation and comfort in apparel to the region. We offer great depth and breadth of product and we are committed to keeping inventory in the region,” he said during the seminar. Jewell concluded: “We focus heavily on fabric development and we are always sourcing our fabric from carefully chosen partners. We see ourselves as innovators and we see our products as technical products not as clothes.”

S14 ORME 2 2012 Tech Focus 1-2_Layout 1 22/02/2012 17:31 Page 59

Multiphase metering flow

assurance challenges T

HIS IS NO surprise as flow assurance is a significant aspect of the transportation of hydrocarbon fluids because failures can be extremely costly to fix. Putting measures in place that minimise financial loss due to flow assurance disruption is therefore a core strategy in todayâ&#x20AC;&#x2122;s market. Flow assurance is an important area for multiphase flows of oil, gas and water mixtures. The recent Saudi Aramco Technology Quest Symposium in Aberdeen focused on the issue of developing multiphase flow metering technologies, as accurate measurement becomes a core strategic issue in the development of Middle East oil fields. The general trend in the global industry is towards using multiphase meters. This is because the advantages they offer include reduced capital and operational expenditure; increased capability to monitor individual wells in real time; reduction in the need for test separators and their maintenance; and minimal loss of production through well shutdowns for well tests.

Multiphase flow assurance is a particularly important area for subsea pipeline installations and installing subsea multiphase meters has additional advantages. These include a reduction in required piping infrastructure and the ability to install meters on each well to continually monitor production. It also delivers the ability to use shared pipeline systems between different operators, once the individual well production has been metered before commingling. The majority of commercial multiphase meters are dependent on accurate fluid properties data obtained from the sampling process. Inaccurate data results in erroneous multiphase flow information and can cause financial losses for operators. Pipeline fluid sampling is therefore essential to identify the presence of components that could lead to flow assurance issues. While early identification of flow assurance problems is vital, the cost and time consuming nature associated of this process often prolongs the intervals between samples. Also, fluid sample collected topside may not be fully representative of fluids at the subsea meter location. This is because organic components such as paraffins and asphaltenes may have deposited in the pipeline and the samples will also have been collected at different conditions. The best solution at present is to invest in subsea sampling which industry is trending towards and investing in developing new technology. The design, modelling and testing of subsea multiphase sampling systems has been crucial to eliminate the risk of failure to collect a sample due to flow assurance problems such as blockages or formation of waxes and hydrates, as well as temperature and pressure changes. Early identification of flow assurance issues is vital to reduce risk. For example, rapid changes in the temperature and pressure during well shut-downs can cause major flow assurance issues. There are also a number of flow assurance issues to consider for multiphase and wet gas flow metering, including blocked impulse lines and deposits of solid material. Blocked impulse lines for differential pressure type meters can be caused by hydrates, waxes and scales. Trace heating can be used around impulse lines to reduce the

formation of hydrates and waxes. Many subsea meters use diaphragms at tappings to prevent the build-up of solids. For multiphase flows some of the flow assurance issues include: 6 Formation of waxes, hydrates, scales etc 6 Restrictions and blockage of pipes 6 Damage of equipment 6 Corrosion and erosion of pipes and equipments Deposits of solid material can cause restriction of pipes and within flowmeters. As this increases the fluid velocity through the meter, the meter could over-read the amount of fluid passing through it. Such deposits include:

Flow assurance is an important area for multiphase flows of oil, gas and water mixtures Hydrates Hydrates are solid crystalline structures which form natural gas and water mixtures under certain pressure and temperature conditions. Hydrates forming in-flow conditioners can affect the flow profile and the meter performance, as well as damage equipment with moving parts. For example, when using positive displacement meters which some multiphase meters use. This also becomes a problem if metering wet gases using differential pressure (DP) meters and a flow condition to correct it deviate from any flow profile before the flow enters the meter. Methanol and glycol are used as hydrate inhibitors as they prevent hydrates from forming. However, inhibitors injected into pipelines can change the fluid properties, which could affect the meter response if the meter relies on accurate fluid property data. This means that ideally fluid sampling should be performed near to the meter to ensure that the sample is representative of the fluid passing through it. The early detection and quantification of water from multiphase flow meters is extremely important for flow assurance to enable a quick response to use hydrate inhibitors and determine the amount to use.

Oil Review Middle East Issue Two 2012 59

Technical Focus

Flow assurance is a growing area of investment as operators across the globe focus on streamlining and reducing costs as part of their quest for more effective ways to successfully exploit hydrocarbons. Emmelyn Graham* explains.

Technical Focus

S14 ORME 2 2012 Tech Focus 1-2_Layout 1 22/02/2012 17:31 Page 60

Waxes Some oils contain wax molecules, and at sufficiently low production temperatures will form wax particles. The wax can start to deposit on the pipe wall or inside the meter and affect electrical detection of fluids. This can lead to blockages in the pipe, or if your multiphase flow meter has a Venturi, the wax build up can start to alter the dimensions of the Venturi leading to errors as well as blocking the impulse lines. Keeping production temperature sufficiently high and using a technique such as heat tracing can prevent waxes from forming.

Scales These are formed from inorganic chemicals that are present in the flow. Mixing seawater and produced water from the well is a common source of scales, as is mixing water from multiple wells. Scales can be treated using inhibitors, but prevention is better than cure as scales are difficult to remove and once formed strong acids might be required to remove scale.

Asphaltines Asphaltines are dark solids, usually black or dark brown in colour. The operating temperature, pressure and multiphase composition of the flow determine whether asphaltines actually form. However, unlike hydrates and waxes, asphaltines do not melt when heated.

Sand Sand is undesirable not just for multiphase flow but all types of flow. This is because it erodes pipe work, multiphase flow meters, valves and other components. Unfortunately, unlike hydrates, wax and scales there is no cure to combat such erosion, and once a component has been worn the only option is to replace it.

Multiphase flow meters (MPFM) Understanding multiphase metering technology is essential to predict the effects of any flow assurance issues, production upsets, unexpected changes in the metering values, or erroneous metering readings. MPFM principally operate by measuring the bulk flow rate of the multiphase mixture and calculating the individual phase fractions to give the flow rates of the individual streams within the mixture. While there are a number of MPFM measurement techniques, usually a meter will combine several of them to determine the individual flow rates of the oil, gas and water components within the flow. The following are techniques commonly used in MPFM: 6 Differential Pressure (DP) Meters – one of the most commonly used type of flow meter which can be used in one of two ways. Either to calculate the flow rate of multiphase mixture, or if that is already known, the device can be used to calculate the density of the mixture. DP meters are extensively used to meter wet gases, either by applying corrections to correct for the presence of liquids or as part of a wet gas meter.

Example of cross correlation

60 Oil Review Middle East Issue Two 2012

Diagram of a differential pressure meter

6 Cross-correlation – where two sets of sensors look for correlated signals caused by flow disturbances such as slugs and bubbles. This of course won’t work well in homogenous flow or when there is an emulsion as by definition it means there is nothing to cross-correlate. 6 Electrical properties – where the measurements of the electrical impedance across the pipe can determine the electric properties of the multiphase mixture such as capacitance and conductance. Capacitance sensors work best in oil-continuous flow, while conductivity sensors work best in water-continuous flow. The results of these tests can then be used to determine the phase factions of the multiphase mixture. 6 Microwaves – can be used in two ways to measure multiphase mixtures – resonance and absorption. Like electrical capacitance, microwaves exploit the difference in permittivity of the multiphase components to determine the individual phase fractions of the mixture. 6 Gamma Ray Attenuation – of which the most common nuclear sources

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Technical Focus

S14 ORME 2 2012 Tech Focus 1-2_Layout 1 22/02/2012 17:31 Page 62

Diagram of gamma ray attenuation

used are Barium 133, Caesium 137 and Americium 241. This involves the nuclear source being placed on one side of the pipe with a detector on the other side. The number of gamma rays that pass through the pipe depends on the composition of the multiphase mixture inside the pipe and therefore indicates the composition of the flow. For example, gas is a weak absorber of gamma rays, while water is a stronger absorber. 6 Partial separation – combines the elements of MPFM with separation techniques and is very useful when the multiphase mixture has a high gas volume fraction greater than 95 per cent. Partial separators use a device to separate the gas and liquid streams so that they can be measured. The advantage of these is that while they are larger than MPFM, they are smaller than test separators.

An assured future Because of its financial and safety importance, flow assurance will continue to be a vital aspect of multiphase flow management. The use of MPFM to monitor production is also set to continue due to the usage advantages and cost reductions they deliver. The industry’s buy-in to this is evident when events such as the Aramco Technology Quest Symposium have multiphase flow meters high on the agenda. While the complex technologies used in MPFM substantially increases the cost of a meter, this is significantly outweighed by the advantages they offer operators. This is because while multiphase flow meters can be affected by flow assurance issues, they can also be used to identify potential flow assurance issues, saving financial loss and

reducing safety risks. The level of investment required means that the development of meters that have longevity is important, especially with the additional cost of subsea meters and the issue of meter accessibility they bring. Multiphase meters to support effective flow assurance are therefore here to stay as all the signs point to industry’s commitment to investment in their development. *Emmelyn Graham, Flow Consultant at NEL, a global centre of excellence for flow measurement and fluid flow systems for over half a century. NEL maintains and develops the UK's National Flow Measurement Standards on behalf of the UK Government and owns some of the most modern and sophisticated test, analysis and experimental facilities in the world. ■

Zenith presents ‘pioneering’ artificial lift solutions ZENITH OILFIELD TECHNOLOGY recently presented two white papers on cutting edge technology at the European Artificial Lift Forum in Aberdeen. The Aberdeenshire-based firm launched a new electrical submersible pump (ESP) gauge at the event following a successful trial in the Middle East. The new downhole ESP gauge operates even when damage occurs on the motor cable which results in a ground fault, spelling the end for operators having to run blind with no well data as a result of this common problem. Dave Shanks, Development Manager at Zenith, presented a white paper on the impressive results of the trial on Thursday 23rd February. The company also revealed case studies of its innovative Z-Sight automated well surveillance technology which efficiently manages large volumes of well and pump data, performing automatic data analysis in real-time to deliver simple well status messages to the operator. Greg Davie, managing director of Zenith Oilfield Technology, said: “Artificial lift is crucial to increasing production and we have developed a range of technologies to monitor and analyse downhole data, making these operations as efficient as possible. The Z-Sight automated well surveillance system uses real-time optimisation and diagnosis, giving recommendations to further enhance well performance.” Following the system’s intelligent optimisation recommendations, it has been proven to typically boost production between six per cent to more than 50 per cent. In one installation of Z-Sight, production was increased

62 Oil Review Middle East Issue Two 2012

by 287 per cent, generating US$55,000 additional revenue per day from a single well. Z-Sight is expected to increase Zenith’s gross revenue by over 15 per cent and installations are forecast to rise from 27 in 2011 to over 300 in 2012 with sales transpiring in the Middle East, Asia, South America and Africa. A Zenith Oilfield Technology technician in the Inverurie workshop

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The next generation of volume visualisation has arrived, says Philip Neri of Paradigm. Technical Focus

Emerging

technologies 3

D VOLUME VISUALIZATION has been around for 20 years, and many improvements have been made to the early technologies that enabled geoscientists and engineers to see inside the massive data volumes emanating from modern 3D seismic acquisition and processing methods. Over time, the solutions evolved from expensive, highlyspecialized computer systems to mainstream desk-side (and even laptop) architectures, thanks to the advances in chip designs, cheaper and more abundant memory and improved standards for data transfer within the computer. Credit has to be given to the requirements of video game applications, which drove many of these developments, and which happen to match the needs of industrial applications addressing 3D seismic, as well as medical and other market segments. Visualization solutions for 3D seismic have been tracking these developments in an evolutionary manner, leveraging the technical improvements to allow for larger datasets, higher display resolutions and new processes such as automatic fault extraction, sub-volume detection and sculpting, true spatial event auto-tracking and multi-attribute quantitative interpretation. Performance improvements were made possible for some years by the availability of multi-cpu and multi-core cpu architectures, allowing for the parallelization of some tasks in order to accelerate intensive computations. If we look at a typical high-end multi-core computer, it is clear that there are significant bottlenecks when dealing with large volumes: reading data from disk

to RAM is done at about 1 GB/second in optimal circumstances. This is not too much of a concern because this operation is done only once at the beginning of a work session. The CPU cores interact with RAM at transfer rates of 32 GB / second. The handing over of rendered images (or any other data) from CPU RAM to the graphic card is however limited to some 5 GB / second, which will slow down the transfer of information to the display. The fundamental architecture of a visualization solution has remained remarkably similar to the very first solutions launched in the early 1990s: seismic data was loaded from disk into the computerâ&#x20AC;&#x2122;s main memory (RAM), and the rendering of the 3D views was performed using the compute power of the CPU. Rendered images were then passed on to the graphic card and from there projected onto the computerâ&#x20AC;&#x2122;s display. For the user, this entailed a lag between the change of a viewing or rendering parameter and the actual update of the image on screen. Since seismic visualization entails data volumes ranging from a gigabyte to tens of gigabytes, i.e. an order of magnitude larger than typical gaming applications, the computerâ&#x20AC;&#x2122;s resources were pushed to their limits. To avoid an unacceptably long lag, rendering algorithms were kept simple, and parameters were constrained to value ranges that did not entail excessive calculation loads. As a result, users had to settle for renderings that were visually acceptable but not as detailed or realistic as technically feasible. Graphic cards have evolved significantly over the past ten years, mostly to address the needs of video gaming software. These games require an instant

Figure 2 (a) - Comparison of rendering quality. Above is the older CPU-based process

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Technical Focus

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Figure 2 (b) - The new GPU-based rendering

response to user inputs and the rapid update of scenes and renderings to generate the display screen, it would be possible to develop uncompromising, very high a more realistic virtual experience. This led to the development of increasingly resolution rendering algorithms as well as allowing for display parameters that powerful processing capabilities on the video card itself, as well as increased would make full use of every detail in the data, with instant response times. memory on the card to avoid bottlenecks shuttling data to and from the CPU. This revolution has now gone from concept to reality. The volume The seismic processing industry was the first segment of geosciences to visualization rendering code and display management have been entirely retake note of these developments, and to adapt some of its compute-intensive written in nVIDIA’s CUDA C++ language, implementing for the first time a processes to run on graphic cards, repatriating the results to the CPU on completely re-engineered, compute-intensive rendering process that avoids completion. With hundreds of cores packed on one card, the overheads of many of the weaknesses and inaccuracies of past solutions. The result is a transferring the data from RAM to graphic card and back were more than offset display with a much-improved amount of detail in complex situations, a better by the phenomenal computing power at hand. There were additional incentives visual perception of depth and relative positioning of objects, and the ability for to pursue this architecture because graphic cards are not only powerful, they the user to tweak at will the rendering parameters to achieve an optimal result have a lower electrical consumption and lesser cooling requirements compared [Figure 2]. The latter is made both easy and comfortable because there is no to multi-core / multi-CPU setups for an equivalent or better productivity. perceptible lag between a parameter change and the update of the view. Many Because seismic processing code is already built for parallelization to operate “what if?” trials can be made to adjust parameters at will. on clusters and make the most of multi-core systems, such applications were In practical day-to-day usage, the amount of seismic that can be handled on well suited to leverage the full capabilities of a modern high-end graphic card. the graphic card is about one third of the available memory, since there is a For the gaming developers, and now for the emerging computational uses of need to store locally intermediate computation results and other data. Still, for the Graphic Processing Unit (GPU), standardized as well as proprietary most applications in exploration and production, this is an acceptable amount of programming languages emerged to make it easier to harness the resources of information to handle at one time. graphic cards. Currently, these languages are the open standard OpenCL and nVIDIA’s proprietary CUDA [Compute Unified Device Architecture] C++. These languages allow the programmer to execute code on the graphic card as an extension to the resources of the conventional CPU. The graphic card is eminently suited to manage parallelism using Single Instruction Multiple Data [SIMD] commands. For 3D volume visualization applications, the opportunity to look at leveraging an architecture that would solve the issues of lag and of rendering compromises came when new graphic cards dramatically increased the size of their memory. With 6 gigabytes of memory, it became realistic to work with seismic data volumes directly on the graphic card. With this breakthrough, and the ability to leverage massive parallel computing power (over 400 cores on a single card) with impressive internal Figure 3 - Discriminating karst intrusions originating in the Ellenberger formation that impact the Barnet Shale formation bandwidth (144 GB / second) and a direct access to

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A practical application of new volume visualization capabilities The shale gas plays in North America are very active with tight, intense drilling programs and a need for a fast turnaround for interpretation and modeling activity in order to generate accurate, fully-informed and low-risk drilling plans to guide the horizontal drilling and the hydraulic formation fracturing that together ensure productive wells. Our example is in the Barnett Shale formation in East Texas. The Barnett Shale lies on top of a limestone formation, either the Viola Limestone and Simpson Group, or the porous Ellenberger limestone. Above the Barnett Shale, another limestone formation is found, the Marble Falls formation. While these Marble Falls and Viola formations are an integral part of the success of the Barnett Shale field development towards the North, as they help contain induced fractures, the Ellenberger however is more porous and affected by dissolution features called karsts, which results in places in the formation of chimneys that intrude into the Barnett Shale and present a significant drilling hazard. These chimneys are also a concern as they degrade the mechanical properties of the shale, making it undesirable to perform hydraulic fracturing in the proximity of such a feature.

Volume visualization is the quickest way to locate, identify and qualify unpredictable, localized anomalies. Because the shale has very little seismic character, it is difficult to identify easily any disruptions or anomalies. The best approach is to fine-tune the rendering parameters using a multi-attribute view involving conventional amplitude data and Coherence Cube®, to single out unconforming events [Figure 3]. Assigning a specific coloration to these events allows them to stand out in the 3D view, making them easier to locate [Figure 3]. Seismic surveys in the area of the Barnett Shale are of average size and because the overburden well understood and relatively uncomplicated, seismic interpretation ahead of well planning typically focuses on the area immediately surrounding the Barnett Shale, at depths of some 2,300 meters. The limit of two gigabytes of seismic to make use of the memory of the graphic card is more than enough to accommodate Barnett Shale datasets. As can be seen in the illustration, the karst features colored in light blue are easy to identify. Subvolume detection algorithms can then delineate the actual chimney features [Figure 4]. Since the well planning tool operates within the same window, the borehole can be accurately located away from the risk of karst intrusions. The improved quality of the rendering is clear, as can be seen when shown alongside the same data rendered using older processes and algorithms.

Conclusion The gaming industry has driven the development of very powerful graphic cards that are now being used as computing devices for highly-parallelized processes. With the advent of mature programming languages and larger on-board memory, it has been possible to completely re-engineer seismic volume visualization solutions to deliver a quantum leap in performance, better responsiveness, more accurate rendering algorithms and the real-time computation of attributes. Together, these benefits cut dramatically the time needed to perform a complete visualization workflow, with better user comfort and an improved quality and level of detail of the displays. Because the solution uses standard 64 bit computers and commercial graphic cards, it is available both on Microsoft® Windows 7 and on Red Hat® Enterprise Linux®.

Acknowledgments: The author would like to thank Marathon Oil for the right to utilize their data for the purpose of illustrating this article, and Paradigm colleagues Evgeny Ragoza for his insights into new computer architectures, and Bruno de Ribet for his help in collating the Barnett Shale case study materials. ■

Figure 4 - Sub-volume detection delineates the karst ‘chimney’ within the Barnett Shale (Left: map view, right perspective view).

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Technical Focus

Once the CUDA-based volume visualization application was operational, new possibilities emerged to further improve project turn-around and offer novel functionality to the end user. As mentioned earlier in this article, modern visualization workflows often include multi-attribute processes. In order for these workflows to be practical, it was necessary to compute any and all desirable attributes and to store the resulting data volumes on disk. Then and only then could the user initiate a visualization session, read from disk to RAM the attributes he or she deemed to be the most likely to address the session’s objectives, and then proceed to manipulate co-rendering parameters and other display processes to perform multi-attribute visualization. There are two weaknesses to this approach: first, the need to know before starting a session exactly which attributes will be required, and second the time lag that will affect the adjustment of multi-attribute rendering during the session. In the new volume visualization paradigm based on the powerful graphic card, the availability of massively-parallel computation resources makes it possible to calculate most attribute volumes on demand, making it superfluous to pre-calculate and store on disk these attributes. This not only dramatically shortens the turn-around time for a visualization project, since it is no longer a requirement to pre-compute, store and then retrieves attribute volumes. It also makes the multi-attribute workflow more interactive and flexible, since the user can call up any of the attributes in real time. In addition, the adjustment of corendering parameters is done instantly, allowing the user to fine-tune more meaningful displays with no time penalty. It was previously a common practice to pre-compute many attributes ahead of a visualization session in order to be able to call on them rapidly. This resulted in significant disk space usage as well as a lot of compute and management time for the users. In practice, not all of these pre-calculated attribute volumes were found to be relevant or suitable, and data management overheads become commonplace to keep track of large amounts of attribute volumes related to visualization projects.

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Special Supplement Described as a ‘family’ by one delegate in 2010, the world’s geoscientists will be descending on Bahrain for a 400-plus series of first-rate technical events, including optional training courses and extended field trips to major resource features in the nearby Gulf.

Shaping the

future D

ESCRIBED AS THE 'region’s premier geoscience event', GEO 2012 is being held in Bahrain from 4th-7th March. The target audience for the 10th Middle East Geosciences Conference & Exhibition is once again local and international geologists, geochemists, geophysicists and reservoir engineers. All activities in the Bahrain International Exhibition & Convention Centre, including the three field trips outside the Kingdom, are under the patronage of Prime Minister, HRH Prince Khalifa bin Salman Al Khalifa. Organisers Arabian Exhibition Management (AEM) in association with their partners All World Exhibitions confirm the usual wide range of leading-edge professional/scientific NGOs are supporting this two-yearly programme, including AAPG (USA), BGS (Bahrain), DGS (Dhahran, KSA), EAGE (Europe), ESG (UAE), GSO (Oman) as well as the international Society of Exploration Geophysicists and the Qatar Geological Society. Since its foundation back in 1998, when around 600 delegates were attracted, the GEO series has gone from strength to strength, drawing in more than 1,900 for the combined GEO 2010 package. The programme has always had a strong appeal to geoscientists from across the causeway in particular, drawing in nearly 1,700 delegates from Saudi last time. The events are also particularly popular with scientific personnel from the UAE and Kuwait, as well as from the host Kingdom, of course. This year’s conference theme is Shaping the future of geoscience in the Middle East. Featuring some 450 individual presentations including posters, more than 50 spoken presentations will be made in the five separate meeting halls. More than an hour is allocated to each, so there will be plenty of time for thorough analysis and discussion. Five separate panel discussions will be included, under the sub-themes: 6 Exploration: new frontiers 6 Geoscience and the environment 6 Multi-disciplinary approach for hydrocarbon E&D 6 Emerging trends in R&D 6 ‘Producing the last drop’. A full conference technical programme in handy one-page format is available on the website, with comprehensive details of presenters and content on the following pages.

66 Oil Review Middle East Issue Two 2012

www.geo2012.com

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Special Supplement Summarising so many items is not easy, but this year the organisers have gone to the trouble of grouping them under one of 10 leading topics, which should be read in conjunction with the full tabulated programme. These are: 6 Engaging future generations (personnel issues) 6 Technologies to solve complex reservoir challenges 6 Reservoir characterisation 6 Advances in geophysics 6 Integration and next-generation technologies 6 Petrophysics 6 Geological studies and basin modelling 6 New play concepts in exploration – the role of risk management, innovation 6 Harvesting unconventional resources 6 Roles, responsibilities of geoscience in the environment and safet As usual, a number of complementary ancillary activities are being offered at separate cost, carefully timed to allow full participation in the main event. These include a series of twothree day field trips to Oman (two) and Abu Dhabi. There are also a number of one-two day short training courses on offer, which can be

participated in by conference non-attendees. These will cover: 6 Full waveform inversion 6 Risk, uncertainty and decision-making in unconventional resource plays 6 Principles of resource characterisation 6 New approaches in the tectonic development of the petroleum systems in the Arabian plate 6 Practical geomechanics for the O&G industries 6 Microseismic monitoring in O&G reservoirs 6 3D reservoir modelling of natural fractured reservoirs. Full details including supplementary costs and event organisers can be obtained from the website below GEO 2012 takes place from 4th-7th March (technical conference; 5th-7th for the associated exhibition). ■

For further information visit www.geo2012.com or call Arabian Exhibition Management on +973 17 550 033 (fawzi@aeminfo.com.bh). For conference queries specifically the electronic contact is martina@aeminfo.com.bh

Some observations on GEO 2010

MONITORING

RESERVOIR D E FO R M AT I O N

FROM SPACE

The Exhibition: “Well organised and with excellent business opportunities” (SGS Gulf) The Conference: “A great opportunity to meet fellow geoscientists around the world – after all we are all one family” (Petroleum Development Oman)

Reservoir evaluation specialist SPECTRASEIS IS A technology leader in microseismic fracture imaging and reservoir evaluation and provides services to many of the world’s leading E&P firms, including a growing customer base among North American unconventional operators. Spectraseis provides a competitive advantage to its customers in the worldwide oil and gas industry through cutting-edge innovations in surface and borehole passive seismic monitoring, data processing and imaging. The company’s key technologies include its UltraSense™ highsensitivity broadband surface and borehole arrays, advanced wave equation based imaging using high speed GPU computing, and ambient wavefield characterization www.spectraseis.com methods for preand post- frac reservoir studies and fluid mapping in mature fields. Spectraseis has a portfolio of more than 60 issued and pending patents covering key geoscience technologies.

TRE will be at GEO 2012 Bahrain International Exhibition and Convention Centre 5-7 March 2012 Come and visit us at stand # 187

treuropa.com | trecanada.com

Oil Review Middle East Issue Two 2012 67

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Special Supplement Sercel acquires GRC

Itâ&#x20AC;&#x2122;s all in the toolbox

CGG VERITAS ANNOUNCED that its subsidiary Sercel has acquired the assets of Geophysical Research Company, LLC (GRC). Headquartered in Tulsa, Oklahoma (USA), and established in 1925 by Amerada Petroleum Corporation, GRC is a leading provider of downhole sensors and gauges for the oil and gas industry. With approximately 120 employees, GRC is expecting 2011 revenues in the order of US$22mn. This acquisition builds upon Sercelâ&#x20AC;&#x2122;s diversification into the well environment and more specifically the artificial lift market which shows promising growth for the coming years. GRCâ&#x20AC;&#x2122;s memory gauge business complements Sercelâ&#x20AC;&#x2122;s existing product offering and geographical coverage. GRC products will benefit from Sercelâ&#x20AC;&#x2122;s technology and know-how for new product industrialization as GRC will be launching a number of products within the next two years. Bob Laird, CEO of GRC stated â&#x20AC;&#x153;On behalf of GRC, our customers and employees, we are truly excited about being a part of Sercel. We clearly share common core values and the vision of providing our customers with advanced technology and value added solutions to optimize and extend the economic life of their oil and gas producing assets. This acquisition offers GRC leverage in strengthening and expanding our global presence, operational efficiency and technology offering. GRCâ&#x20AC;&#x2122;s management team will continue in place with Sercel.â&#x20AC;? "We look forward to continue to expand and strengthen our footprint in downhole measurements with GRCâ&#x20AC;&#x2122;s product range," said Pascal Rouiller, President and CEO of Sercel. "GRC has built a strong reputation and developed a unique expertise for reliable downhole instrumentationâ&#x20AC;?.

BLUEBACK RESERVOIR, A fast growing technology company specializing in providing Ocean plug-ins and 3D geomodeling services for the global oil & gas exploration and production industry, recently announced the release of the Blueback Toolbox v11. The Blueback Toolbox suite of Petrel plug-ins contains Petrel functionality features not available in standard Petrel. The Blueback Toolbox suite now contains five different modules; Geology Toolbox, Geophysics Toolbox, Project Management Toolbox, Reservoir Engineering Toolbox and the new Seismic Reservoir Characterization Toolbox. The Blueback Seismic Reservoir Characterization Toolbox delivers high-end geophysics tools to assist in reservoir characterization. The current content is focusing on estimating seismic net pay for thin bedded reservoirs and classification of seismic data using AVO analysis to help identify hydrocarbons. The functionality range from the seismic net pay workflow, as presented by Connelly www.blueback-reservoir.com (2007), AVO seismic classification, and functionality for creating connected volumes of your extracted seismic attribute bodies. The Seismic net pay workflow involves a series of steps from analyzing the AI-GI gradient, through coloured inversion and the creation of seismic net pay maps.

Blueback Reservoir LV SURXG WR DQQRXQFH QHZ RIÂżFH RSHQLQJ LQ 'XEDL %OXHEDFN 5HVHUYRLU LV D IDVW JURZLQJ WHFKQRORJ\ FRPSDQ\ VSHFLDOL]LQJ LQ SURYLGLQJ FRQVXOWLQJ VHUYLFHV DQG VRIWZDUH VROXWLRQV IRU WKH JOREDO H[SORUDWLRQ DQG SURGXFWLRQ LQGXVWU\ Geomodeling, Interpretation and Reservoir Engineering Services Â&#x2021; 2QVLWH &RQVXOWDQWV Â&#x2021; 5HPRWH DQG RU DG KRF PRGHOLQJ VXSSRUW Â&#x2021; &XVWRPL]HG PRGHOLQJ VROXWLRQV Â&#x2021; 0HQWRULQJ Software Products Â&#x2021; ,QQRYDWLYH DQG HIÂżFLHQW SOXJ LQV IRU 3HWUHO WR RSWLPL]H DQG LQFUHDVH \RXU HIÂżFLHQF\ Software Development Services Â&#x2021; 6FKOXPEHUJHU 3UHIHUUHG 2FHDQ 'HYHORSPHQW 3DUWQHU Â&#x2021; 'HYHORSPHQW RI SOXJ LQ DSSOLFDWLRQV IRU 3HWUHO Â&#x2021; 'HYHORSPHQW VHUYLFHV DV D FRQVXOWDQF\

*Marks of Schlumberger

Learn more? Visit us at GEO 2012 in Bahrain, Hall 1, booth #174 ZZZ EOXHEDFN UHVHUYRLU FRP Ĺ&#x2021;VDOHV#EOXHEDFN UHVHUYRLU FRP Ĺ&#x2021;7 w w w . b l u e b a c k - r e s e r v o i r . c o m

68 Oil Review Middle East Issue Two 2012

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Special Supplement CGGVeritas is applying new technology to extend seismic bandwidth and maximize production, explains Paul Wood.

Emphasising

vibrations

HE ARTICLE ‘Illuminating Resolution’ (GEO ExPro Vol. 8, No. 3) described the evolution of seismic acquisition technologies that aim to achieve the geophysicists’ goals of illumination and resolution. One development featured in the article is the concept of extending the frequency content or bandwidth of seismic signals, especially at the lowfrequency end, in order to achieve better vertical resolution and more accurate quantitative seismic interpretation. One of the seismic companies looking at this is CGGVeritas with its onshore and offshore broadband solutions, EmphaSeis™ and BroadSeis™.

surveys that use explosives as a source are able to record very low frequencies from broad bandwidth explosions. But surveys using drilled explosives are relatively more expensive, and can have significant environmental, safety and security limitations. So most modern seismic surveys on land use Vibroseis sources where access permits. Vibroseis trucks apply a sweep over a range of frequencies into the ground using hydraulic motors that shake a baseplate, with the force opposed by a heavy weight mounted on the vehicle.

The mechanics and hydraulics of Vibroseis sources and the associated force applied to the ground are quite complex. The force that can be generated at a given frequency is constrained by various factors that affect different segments of the output spectrum, varying with the make and model of the vibrator. At very low frequencies, between 1 and 10 Hz, two of the most important parameters governing the maximum output force are the reaction mass displacement (the distance it can move up and down) and the flow rate of fluids in the

EmphaSeis for Vibroseis EmphaSeis has been developed to extend the lowand high-frequency bandwidth of Vibroseis surveys to enhance the delineation and characterization of fractured, shallow, or deeper reservoirs. This enhancement comes from improvements to both structural imaging and stratigraphic inversion which both benefit from a broader bandwidth. Seismic

Seismic surveys that use explosives as a source are able to record very low frequencies from broad bandwidth explosions

Response curves of a seismic vibrator showing the constraints on the generated force at various frequencies. CGGVeritas

Oil Review Middle East Issue Two 2012 69

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Special Supplement hydraulic drive system. The vibrator specifications are used to calculate these low-frequency limiting curves and then in designing the EmphaSeis sweep. In the example shown on the previous page, when trying to maintain a constant output force at low frequencies, the main constraint on the signal is the mass displacement, the parabolic red curve. Between 4 to 10 Hz, the hydraulic fluid flow (magenta curve) becomes the dominant limit on output as the hydraulic system tries to feed a large enough volume of fluid to actuate the piston. The electronics controlling the force of the signal have to avoid exceeding these curves, or significant distortion will occur. Normal Vibroseis sweeps are linear, running smoothly through the frequency band. Tapers are applied at low and at high frequencies to gradually increase the output force of the vibrator as the sweep starts and ends to avoid an increase in distortion. In the linear sweep shown here in blue, starting at 5 Hz, the limit of flow constraint is reached at around 7 Hz, by 8 Hz the 75 per cent drive level set for this sweep Full bandwidth 2D seismic lines comparing linear (18s, 6-72 Hz) sweep with EmphaSeis (18s, 4-72 Hz) sweep has been reached, and the flow limit is no longer sources. Data courtesy of Khalda Petroleum Company/Apache exceeded for the remainder of the bandwidth. But between 7 and 8 Hz the vibrator is overdriven, often leading to a decision to use a longer taper, resulting in lower output at low less time on generating the mid frequencies, which is possible without degrading frequencies. the signal because of the higher drive level achieved at these frequencies. This sweep design allows EmphaSeis to deliver more low-frequency energy while maintaining the conventional sweep length and productivity. The mechanics and hydraulics of Vibroseis Early field trials of EmphaSeis verified that lower frequencies than are recorded with linear sweeps can be recovered with the EmphaSeis custom sweep. In a test sources and the associated force applied to that CGGVeritas conducted together with Shell International, an additional 15 dB the ground are quite complex of signal were recorded at 3 Hz in a borehole array (representing the far-field source signature) when using an EmphaSeis sweep of 2-80 Hz, compared to a linear sweep of 5-80 Hz. In a production test on a 2D seismic reflection line Non-Linear Sweep conducted with Khalda Petroleum Company/Apache in Egypt, additional low The EmphaSeis technology applies a customized non-linear sweep that is frequencies were recovered using EmphaSeis. These low frequencies could be designed to stay within the mechanical and hydraulic limitations of the vibrator as crucial for delineating new exploration or development targets, as the additional shown by the green line on the graph. In addition to generating more energy at bandwidth improves the resolution and image quality of deeper reservoirs. low frequencies (in production, starting as low as 1.5 Hz), the EmphaSeis drive level can be increased to achieve higher peak force (up to 90 per cent) in the mid Optimizing Production frequencies. One consequence of the non-linear sweep is that more time is In addition to extending the bandwidth of Vibroseis sources, CGGVeritas has required to generate the low frequencies â&#x20AC;&#x201C; to allow the reaction mass and fluid developed techniques that optimize the productivity of Vibroseis crews. This is flow to work smoothly without distortion. This can be compensated by spending especially important in the Middle East where desert terrain allows sources to be

Frequency (Hz) EmphaSeis tests have shown improved recovery of low frequencies both in borehole data (left, Baeten et al, 2010) and reflection seismic data (right, courtesy Khalda Petroleum Company/Apache).

70 Oil Review Middle East Issue Two 2012

CMP R

S17 ORME 2 2012 GEO 2_Layout 1 22/02/2012 17:33 Page 71

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The latest innovation from CMP Products is Traditional barrier type cable glands employing a clay based sealing compound, have been used in our industry for many years to provide effective explosion protection. However, a certain degree of risk is associated with this traditional installation process and this risk increases with the number of cable cores. Multi core cable require the highest degree of competence and a long installation time to ensure a void free, safe installation. Not to recognize this will lead to rework, or failure of the seal. A Liquid Pour, Fast Curing, Liquid Resin Barrier Seal that installs in seconds and cures in minutes. Its unique formula begins with a low viscosity liquid that flows into the cable interstices completely surrounding the cable conductors, and in the process displacing the air from the cable gland’s sealing chamber ensuring the “perfect seal”. The viscosity then increases and completely cures in less than 40 minutes. Reduces Risk, delivers unprecedented reliability, minimizes installation time and is clean and easy to use. Is certified for use in Hazardous Areas with Global Certification including approval under IEC and NEC installation codes. Supplied with a series of CMP barrier glands including PX2K, PX2KW, PX2KX, PXSS2K and PXRC. Simply add the suffix “REX” when ordering, e.g. 20PX2KWREX CMP PXSS2K and PX2KW cable glands incorporating the new

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S17 ORME 2 2012 GEO 2_Layout 1 22/02/2012 17:33 Page 72

Special Supplement

Pre-stack migration results from a test utilizing ISS combined with unique coded sweeps (Pecholcs et al 2010)

distributed freely over a wide area with few obstructions. There is a continual need to improve image quality by reducing shot and receiver spacing and increasing the fold. So acquisition of a 3D survey over a given area would take much longer, perhaps becoming prohibitively expensive, if measures were not taken to improve production rates. CGGVeritas has also recently seen an increased need for high productivity applications in regions like Alaska, Canada and parts of North America where seasonal constraints require crews to acquire data in a relatively short period of time. To conduct highdensity surveys in these locations, a highproductivity Vibroseis technique is essential. When 3D surveys started to become the norm rather than the exception in the Middle East, early techniques to speed up production used ‘flip-flop’ sources. One group of vibrators would move up while a second was ‘shaking’, minimizing the down time arising from changing source locations. Petroleum Development Oman introduced ‘slip-sweep’ (Rozemond, 1996), where one vibrator group would start vibrating before the previous one had finished their sweep. Because the frequency bands of their signals did not overlap (one group would be vibrating in a low-frequency band while the other was at the high end), the signals could still be decoded. In 2003, CGGVeritas introduced an in-field processing technique called High-Productivity Vibroseis Acquisition (HPVA) for slip-sweep operations that filters the harmonic distortion from the overlapping sweeps to improve image quality and increase productivity. With the introduction of super-crews recording many thousands of channels, receiver spread layouts became large enough to support groups of vibrators, or even fleets of single vibrators, sufficiently far apart

72 Oil Review Middle East Issue Two 2012

that they could vibrate simultaneously without causing interference. This technique, called Distance Separated Simultaneous Sweeping or DSSS, was introduced by BP (Bouska, 2008), which also implemented a simultaneous sweeping method, Independent Simultaneous Sweeping (ISS™) in 2008 (Howe et al., 2008). In this method, individual Vibroseis units effectively act as autonomous units, positioned at various locations within a receiver spread, each sweeping independently when it is ready. The recorder is continuously gathering data and the records are reconstructed later. Simultaneous source techniques, or blended acquisition such as ISS, are seen as one of the keys to future productivity gains in both land and marine acquisition. Vibroseis lends itself well to this arena by providing the opportunity to use uniquely coded sweeps for the individual sources. This enables the elementary, individual sources to be separated out from the tangle of simultaneous data much more accurately, a process known as deblending. In a test in Saudi Arabia conducted with Saudi Aramco, CGGVeritas demonstrated that by using 18 separate vibrators, each with a unique sweep code, it was possible to log over 44,000 records in a 24 hour period (Pecholcs et al. 2010). Further, using unique sweeps with a pseudo-random character instead of linear sweeps, data quality was improved and productivity was pushed to over 45,000 records a day. The results highlighted the importance of deblending for simultaneous source acquisition as illustrated. CGGVeritas aims to constantly improve its Vibroseis methods. Techniques such as EmphaSeis, HPVA, and V1 increase resolution while pushing the threshold and pioneering new industry records on productivity. ■

EmphaSeis and BroadSeis are trademarks of CGGVeritas. ISS and DSSS are trademarks of BP. This article appeared previously in GEO ExPro Magazine, Vol. 8, No 6. (www.geoexpro.com) References: Baeten, G.J.M., Egreteau, A., Gibson, J., Lin, F., Maxwell, P., Sallas, J.J., (2010), Low-frequency Generation Using Seismic Vibrators. 72nd EAGE Conference & Exhibition, Expanded Abstracts, B015. Bathellier, E., Kirtland Grech, G., Scott, M., Branan, A. (2011), Slip-sweep key in ‘superspread’ survey, American Oil & Gas Reporter. Bouska, J. (2008), Distance Separated Simultaneous Sweeping: the World’s Fastest Vibroseis Technique. EAGE Vibroseis Workshop, Prague, Czech Republic, Expanded Abstracts, 15983. Howe, D., Allen, A.J., Foster, M.S., Jack, I.J., Taylor, B., [2008], Independent simultaneous sweeping. 70th EAGE Conference & Exhibition, Expanded Abstracts, B007. Pecholcs, P., Lafon, S., Al-Ghamdi, T., Al- Shammery, H., Kelamis, P., Huo, S., Winter, O., Kerboul, J-B., Klein, T., [2010], Over 40,000 VPs per day – with real-time quality control: Opportunities and Challenges, SEG Expanded Abstracts 29, 111. Rozemond, H.J. [1996] Slip-sweep acquisition. 66th SEG Annual Meeting, Expanded Abstracts, 64-67.

S17 ORME 2 2012 GEO 2_Layout 1 22/02/2012 17:33 Page 73

Middle East & North African Rig Count The Baker Hughes Rig Count tracks industry-wide rigs engaged in drilling and related operations, which include drilling, logging, cementing, coring, well testing, waiting on weather, running casing and blowout preventer (BOP) testing. THIS MONTH Country

VARIANCE LAST MONTH

LAST YEAR

Oil

Gas

Misc

Total

Oil

Gas

Misc

Oil

Gas

Misc

Total

ABU DHABI

BAHRAIN (1)

CYPRUS (1)

-1

DUBAI

Middle East

IRAN

IRAQ

ISRAEL (1)

-1

JORDAN

KUWAIT

OMAN

50 12

PAKISTAN

-1

QATAR

-1

SAUDI ARABIA

SUDAN

SYRIA

177

239

-1

177

233

YEMEN TOTAL

North Africa ALGERIA (1)

-3

-2

EGYPT

-1

LIBYA

MOROCCO (1)

TUNISIA

TOTAL

103

-3

105

Source: Baker Hughes

Oil Review Middle East Issue Two 2012 73

S18 ORME 2 2012 Arabic_Layout 1 22/02/2012 17:36 Page 74

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S18 ORME 2 2012 Arabic_Layout 1 22/02/2012 17:36 Page 75

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Society of Petroleum Engineers

PERATIONS INTERNATIONAL PRODUCTION O CONFERENCE EXHIBITION AND

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Plan to participate in one of the largest Production and Operations events in the region Visit www.spe.org/events/poce or call +971.4.457.5800 for more information. 'PS TQPOTPSTIJQ BOE FYIJCJUPS PQQPSUVOJUJFT DPOUBDU Sylvia Ansara CVTJOFTT EFWFMPQNFOU NBOBHFS BU sansara@spe.org PS Reginald Alcala TBMFT BOE CVTJOFTT EFWFMPQNFOU DPPSEJOBUPS BU ralcala@spe.org Host Organisation and Titanium Sponsor:

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Country Representative Telephone Fax Email Country Representative Telephone Fax Email China Wang (86)10 China WangYing Ying (86)108472 84721899 1899 (86) (86)10108472 84721900 1900 ying.mathieson@alaincharles.com ying.mathieson@alaincharles.com India Tanmay Mishra (91) 80 65684483 (91) 80 40600791 tanmay.mishra@alaincharles.com India Tanmay Mishra (91) 80 65684483 (91) 80 40600791 tanmay.mishra@alaincharles.com Italy Camilla Capece (39) 06 97619380 camilla.capece@alaincharles.com Italy Camilla Capece (39) 06 97619380 camilla.capece@alaincharles.com Nigeria Bola (234) bola.olowo@alaincharles.com Nigeria BolaOlowo Olowo (234)8034349299 8034349299 bola.olowo@alaincharles.com Russia Sergei (7495) 540 540 7564 7564 (7495) (7495)540 5407565 7565 mne@acpmos.ru mne@acpmos.ru Russia SergeiSalov Salov (7495) South (27) SouthAfrica Africa Annabel AnnabelMarx Marx (27)218519017 218519017 (27) (27)46 46624 6245931 5931 annabel.marx@alaincharles.com annabel.marx@alaincharles.com Qatar Saida (974) saida.hamad@alaincharles.com Qatar SaidaHamad Hamad (974)55745780 55745780 saida.hamad@alaincharles.com UK Steve (44) (44) 20 20 79730076 79730076 stephen.thomas@alaincharles.com stephen.thomas@alaincharles.com UK SteveThomas Thomas (44)20 207834 7834 7676 7676 (44) USA Michael (1) 203 7447 michael.tomashefsky@alaincharles.com USA MichaelTomashefsky Tomashefsky (1) (1)203 203226 226 2882 2882 (1) 203 226 226 7447 michael.tomashefsky@alaincharles.com

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Jotun Paints U.A.E. Ltd (LLC)......................................................................................5 Metscco Heavy Steel Industries Company Limited............................................27 Mimo Contracting......................................................................................................51 National Pipe Company............................................................................................31 Oil Country Tubular Ltd (OCTL)................................................................................39 Oman Cement Company ..........................................................................................83 Petrotech Enterprises (L.L.C.) ..................................................................................28 Prakash Steelage Ltd. ..............................................................................................29 Qatar Fuel co -woqod-..............................................................................................19 Saga PCE Pte Ltd ......................................................................................................35 Saudi Leather Industries Company Ltd. ................................................................40 Schlumberger Oilfield Mktg Communications ......................................................2 Schlumberger Technical Services, Inc...................................................................53 Shree Steel Overseas FZCO ....................................................................................10 Sin Hiap Chuan Hardware and Engineering Pte Ltd ..........................................31 Society of Petroleum Engineers (International Production and Operations Conference and Exhibition 2012) ..........................................................................79 Society of Petroleum Engineers ......................................................................16, 32 Southern California Valve ........................................................................................55 Specialized Oilfield Products ....................................................................................9 T.R.E. Tele-Rilevamento Europa ..............................................................................67 Tenaris..........................................................................................................................17 VF Imagewear/Bulwark............................................................................................57 WESTAD ......................................................................................................................58

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Oil Well Cement (OWC) produced by Oman Cement Company (S.A.O.G) under accurate temperatures is an obvious choice for oil well cementing worldwide and now it is ready to face the challenges of highly specialized arctic and horizontal cementing: • Conforms to the American Petroleum Institute (API) specification – 10A Class-G- (HSR), Class-B- (HSR) and Class-A- (O) grades. • Tested by worldwide cementing companies • Easy to disperse resulting in considerable cost savings • Used by major oilfield companies such as: Petroleum Development of Oman (PDO), Schlumberger, Halliburton & Occidental • Exported to GC Countries, Iraq, Yemen, Libya, Sudan, Tanzania, Turkmenistan, Pakistan, India and Syria. Oman Cement manufacturing facility operates on world class quality management system ISO 9001 and environmental management system ISO 14001. Quality control is online and laboratory automation systems consist of online x-ray spectrometers and robotic samplers, linked to process controllers and a raw mill proportioning system. OCC has an enduring commitment to customer satisfaction, continual improvement and a stronger foundation for tomorrow. Winner of His Majesty’s Cup for the Best Five Factories in the Sultanate of Oman for the 10th time.

Oman Cement Company (S.A.O.G) Corporate Office: PO Box 560, Ruwi, PC 112, Sultanate of Oman. Tel: +968 24437070, Fax: +968 24437799 Email: admin@omancement.com Website: www.omancement.com

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