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MIDDLE EAST MECCA OF WORLD OIL & GAS
Focus. Reliability. Relationships. INTERVIEW WITH DAVID MULLEN, CEO AT SHELF DRILLING
Growing Offshore Business INTERVIEW WITH JAAP MEIJ, VP SALES OFFSHORE PROJECTS AT DOCKWISE
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DOCKWISE SUCCESSFULLY TRANSPORTS SECOND AIRCRAFT CARRIER HULL Second of two Canberra class Amphibious Landing Helicopter Dock (ALHD) hulls, the Adelaide was loaded onto the Blue Marlin at the Vigo inlet in Spain. The hull was built by Navantia for the Royal Australian Navy measuring 230 m long. The Adelaide was transported to BAE System Australia’s shipyards at Williamstown, where it will be completed and delivered to the Commonwealth of Australia. •
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DOCKWISER 3
FOREWORD The Middle East is home to nearly half of the world’s oil and gas reserves with nations such as Saudi Arabia, Qatar and Iran leading in pole position. The feature, Mecca of World Oil & Gas (12-23), covers the history of Middle Eastern oil spanning 100 years, review of top oil and gas players, world oil and gas landscape, countries leading the offshore pack and offshore drilling hotspots. Next to the feature, you will explore various sections including DockTalk, where Pushing Limits (24-25) and Arabian Float-over (34-35) articles cover recent installation projects. We also provide you with two different Industry Perspectives from the CEO of Shelf Drilling (30-31) and Dutch Ambassador to the UAE (36-37). In the Creating New Horizons section, seasoned managers from Dockwise and Boskalis provide an insight of doing business in the region as they focus on Growing Offshore Business (26-27) and Understanding Customer Needs (32-33). In the Technology Focus section, we describe the phases of an Offshore Float-over installation (28-29) whereby semi-submersible heavy transport vessels are used to transport and install offshore topsides. Next to the oil and gas focus, we included a leisure article covering travel in beautiful Abu Dhabi (8-10).
Enjoy the read.
Editorial Team
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CONTENTS DOCKNEWS 6 - 7
DOCKSHOT 2 - 3
ABU DHABI 8 - 10 DOCKTALK PUSHING LIMITS 24 - 25 ARABIAN FLOAT-OVER 34 - 35
STRONGER TRADE RELATIONS 36 - 37
INDUSTRY PERSPECTIVE FOCUS. RELIABILITY. RELATIONSHIPS. 30 - 31 STRONGER TRADE RELATIONS 36 - 37
CREATING NEW HORIZONS TOGETHER GROWING OFFSHORE BUSINESS 26 - 27 UNDERSTANDING CUSTOMER NEEDS 32 - 33
TECHNOLOGY FOCUS OFFSHORE FLOAT-OVER INSTALLATION 28 - 29
MECCA OF WORLD OIL & GAS 100 YEARS OF MIDDLE EASTERN OIL 14 - 15 TOP OIL & GAS PLAYERS 16 - 17 WORLD OIL & GAS 18 - 19 LEADING THE OFFSHORE PACK 20 - 21 OFFSHORE DRILLING HOTSPOT 22 - 23
MIDDLE EAST FEATURE
FROM THE CEO Dockwise commences 2014 on a positive note following a successful year highlighted by winning its largest contract ever (Wheatstone) and the transport of the Concordia. With the global economy showing signs of recovery combined with a relatively stable oil and gas industry, the outlook for the year provides a platform on which we can continue to enhance our market position. From an organizational perspective it is safe to say that Dockwise has become a solid part of the Boskalis Offshore organization. The coming years will continue to be exciting and at the same time challenging for our staff as Boskalis Offshore expands its position in the industry.
The Middle East is an attractive region with opportunities for service companies active in the oil and gas industry. In the region, we continue to witness an increase of offshore exploration activities. With unique assets and a standing track record, we have much to offer clients operating in the Middle East, particularly with installation projects and jack-up rig transports. Historically, Dockwise has had success in the region transporting a tremendous amount of rigs and plans to maintain its presence.
position and network. We intend to deepen our relationships with the larger EPC contractors active in the region and continue to cooperate with manufacturers in the Far East. With these strategic relationships, we will be able to collectively better serve and surpass end customer expectations. In all, we firmly believe the Middle East is and will continue to be an attractive region with plenty of growth and opportunities.
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Through Boskalis’ established relationships dating back more than 40 years, we will be able to further strengthen our market
Boskalis is strategically positioned to add significant value for our relationships in the Middle East. REGARDS,
ANDRÉ GOEDÉE CEO DOCKWISE
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DOCKWISER 5
WHEATSTONE MARKS DOCKWISE'S LARGEST CONTRACT EVER Dockwise has been awarded a contract by Bechtel for module transport services, for the Chevron-operated Wheatstone Project in Western Australia. The contract value is estimated at approximately USD 275 million, making it the largest contract ever for Dockwise and work has commenced early 2014. The scope of work includes logistical management and transportation of over 100 modules from the Wheatstone Project module yards in China and Malaysia to the Wheatstone Project site located at Ashburton North, 12 kilometers west of Onslow in Western Australia. To complete its scope the full breadth of heavy marine transport assets including an expected total of six
Dockwise Heavy Transport Vessels (HTVs) ranging in size from T-Class to Type III open stern vessels, barges, Floating Super Pallets (FSPs), two new SMIT Giant barges and Anchor Handling Tugs (AHTs) will be used. The HTVs will provide on-deck stowage for modules, as well as piggy back capacity for barges/FSPs also carrying modules, whilst the SMIT Giant barge and AHT combination will be used as a towage solution. By combining the comparative advantage of each transport solution and using the broad expertise across the Boskalis group, a total logistical management and transportation package has been put together.
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DOCKWISE TO TRANSPORT THE WORLD'S LARGEST AND HEAVIEST JACK-UP RIGS Dockwise was awarded a contract from Statoil Petroleum AS for the transportation of two large newbuild jack-up drilling rigs. The two Cat-J rigs will be the largest and heaviest jack-up rigs ever to be transported on a heavy transport vessel. The rigs are on order with a South Korean yard and are scheduled to be transported to
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Norway between the second half 2016 and the second half 2017. Dockwise will deploy two of its largest vessels: the Blue Marlin and her sister vessel the newbuild White Marlin, which will be put into service later this year.
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SUCCESSFUL LUNCH & LEARN SESSIONS Dockwise has been conducting ‘Lunch & Learn’ sessions successfully for many years. These informal sessions are designed to better inform relationships about our service capabilities in a relaxed and informal environment and at the same time better understand customer needs and challenges. A small team of Dockwise experts explain the services offered to a broad group of management, engineering, logistics and procurement professionals with attendance around 40 participants. The cross functional approach has had great results and has been instrumental for a holistic understanding of logistics for large modular projects or heavy marine transport services. Should you be interested in participating in an upcoming session, contact sales@dockwise.com
TEAM BOSKALIS/DOCKWISE AT 'RACE OF THE CLASSICS' An enthusiastic team of 36 young professionals forming team Boskalis/Dockwise competed in the 8th edition of the Race of the Classics, a major regatta in the North Sea - bringing together 24 classic sailing ships - at which more than six hundred Young Professionals lock horns.
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UPCOMING EVENTS
TOUR FOR LIFE Last year Boskalis participated in the Tour for Life 2013, an 8-day cycling tour from Italy to the Netherlands covering 1,250 km. The event is characterized by fundraising to support Doctors Without Borders, an organization that provides emergency medical relief to victims of disasters, conflicts and epidemics. The team was composed of 10 employees from various Boskalis divisions. The philanthropic athletes are now preparing for the upcoming 2014 challenge taking place from August 31 to September 7. For more information, visit: www.tourforlife.nl/en/
APPEA
April 6-9, 2014
Perth, Western Australia
www.appeaconference.com.au
MCE Deepwater Development Madrid, Spain
April 8-10, 2014
OTC
May 5-8, 2014
Houston, USA
www.otcnet.org/2014/
Mexican Petroleum Congress
June 4-7, 2014
Acapulco, Mexico
www.congresomexicanodelpetroleo.com
ONS
August 25-28, 2014
Rio Oil & Gas
September 15-18, 2014
Rio de Janeiro, Brazil
www.ibp.org.br
Canada LNG Export
September 16-18, 2014
Calgary, Canada
www.canadalngexport.com
Offshore Energy
October 28-29, 2014
ADIPEC
November 10-13, 2014
Abu Dhabi, UAE
www.adipec.com
OSEA
December 2-5, 2014
Stavanger, Norway
Amsterdam, The Netherlands
Singapore
www.mcedd.com
www.ons.no
www.offshore-energy.biz
www.osea-asia.com
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DOCKWISER 7
A RISING STAR IN THE REGIONAL FIRMAMENT BY RHONA WELLS
Abu Dhabi is one of the fastest growing visitor destinations in the Middle East region, offering a vast array of tourism activities, from those seeking religious knowledge and experiences to those simply looking for thrills. In 2012, Abu Dhabi welcomed 2,388,023 guests to its 136 hotels and hotel/apartments – a 13% rise on its 2011 performance and surpassing its target of 2.3 million guests for the year, chalking up a record for Abu Dhabi’s hospitality sector according to the Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi). Hotel revenues for the period were also up - this time by 6% - to Dh4.6bn ($1.261bn). The target for 2013 has been set at 2.5 million visitors. Abu Dhabi has a rich past evidenced by scores of restored mud fortresses
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across the emirate and the remains of an underground irrigation system in Al-Ain oasis, a site that has been continuously inhabited for more than 4,000 years. The emirate’s cultural life is rooted in a long tradition of literary work, camel and horseback riding, falconry, traditional artwork and the cultural exchanges brought about by trade. It is the largest and most populated of the seven emirates that make up the UAE, with over 80% of its landmass. The emirate’s population, now over 1.6 million, is expected to reach 3 million by 2030. Sheikh Zayed Grand Mosque One of Abu Dhabi’s most popular tourist attractions is the Sheikh Zayed Grand Mosque. This architectural work of art is one the world’s largest mosques, with a capacity of over 40,000 worshippers. Unlike other mosques in Abu
Dhabi, it is open daily to visitors, except on Friday morning, which is for worshippers only. The complex features 82 domes, over 1,000 columns, 24 carat gold chandeliers and the world’s largest hand knotted carpet. The main prayer hall is dominated by one of the world’s largest chandeliers – 10 meters in diameter, 15 meters in height and weighing 12 tons. The mosque’s first ceremony was the funeral of its namesake, Sheikh Zayed, who is buried at the site. Reflective pools surround the mosque, amplifying its beauty. The striking white and gold colors that shine in the sun are transformed at night by a unique lightning system that reflects the phases of the moon. During the holy month of Ramadan, the mosque hosts vast Iftar meals for the local population, where all are welcome to join together for the breaking of the daily fast.
Abu Dhabi’s coastline (more than 400kms) is one of its major natural attractions, that range from a stroll on the Corniche in the evening to diving and sailing, Abu Dhabi offers a plethora of water related activities; it boasts five marinas including the Emirates Palace Marina, the Al Bandar Marina, Ghantoot Marina, the intercontinental marina as well as the Yas Marina. Yas Marina Yas Marina with its 175 berths gives access to Yas Island, home to Yas Marina circuit, where the world famous Formula One motor racing events are held. Visitors also have the opportunity of driving the circuit as part of the program on offer at the Ferrari Formula One Experience. The Yas Viceroy hotel offers first class facilities on the Island, with direct access from the Marina.
Another slightly more esoteric pastime is camel racing. The annual Abu Dhabi International Hunting and Equestrian Exhibition (Adihex) is home to the annual camel auction, which attracts locals and tourists alike. This year’s reserve price for a young camel is AED25, 000 ($6,800), a 20% increase from 2012. The record auction price however, is AED6m ($1.6m), but AED2m ($550,000) is considered a good price. The Camel Race Track offers races on Thursday and Friday in the winter. Not only can you watch the races, but you’ll have the opportunity to visit the paddocks; the town of Shweihan, in the eastern part of Abu Dhabi emirate is well known for its races, and Liwa also has an annual event.
2000 Green spaces Abu Dhabi offers many green spaces, about 2000. The Khalifa Park, built at a cost of $50 million, has its own aquarium, museum, train play park and formal gardens. As well as its well-maintained green spaces, spacious, modern and air conditioned malls are a welcome escape from the summer heat and a world of choice when it comes to shopping. In Abu Dhabi, malls are a place to catch up with friends or for a family outing. With their imaginative designs and wide range of outlets, shopping malls, of which there are currently 12, are extremely popular. The bigger malls
THE ABU DHABI MALL, WITH OVER 200 SHOPS AND AN AVERAGE OF 40,000 VISITORS A DAY, IS MORE THAN JUST A SHOPPING DESTINATION. DOCKWISER 9
buzz with activity as people meet, eat, pose and parade. During festive occasions such as Eid or Ramadan, malls are venues for special events such as dance or cultural shows, often featuring international acts. The Abu Dhabi Mall, with over 200 shops and an average of 40,000 visitors a day, is more than just a shopping destination. The Mall offers a selection of restaurants, coffee shops, a children’s play area as well as a Cineplex cinema. The Marina Mall features a 100 meter high viewing platform, an ice rink, a bowling alley, a Cineplex, musical fountains and hundreds of big name brands and stores; it has become an Abu Dhabi landmark. A new addition to the mall is CityStore the region’s first stand-alone store of an English Premium League team. The Manchester City FC outlet features a full range of club merchandise,
including a shirt printing service to create personalized items. Desert experiences Making the most of its geographic location and desert heritage, Abu Dhabi also offers a variety of desert experiences, which include the ubiquitous dune bashing, sand boarding, skiing and desert camps. In Al Ain, deep in Abu Dhabi’s heritage heartland Al Khatem, the Arabian Nights Village harnesses the soul and essence of old Arabia. Conceived to give visitors a chance to experience the timeless and ethereal beauty of the desert as well as traditional Emirati life, the Arabian Nights Village is not a hotel, but by no means is it rough camping either. The site is powered by four sound-proofed generators and there are three types of room available, Beit Al Barr, traditional mud houses
of the desert, Beit Al Bahr, the original houses of Emirati seadwellers which are made from palm fronds, and Beit Shaar, or woven tents. There are no televisions onsite, encouraging the guests to enjoy an authentic desert experience. Another exciting green destination is Masdar city, which can be visited daily, a city designed to rely entirely on solar energy and other renewable energy sources, with zero-waste. It initially aims to be a sustainable zero-carbon car free city and is already well on track to achieving its aims. From green credentials to exhilarating experiences and super slick hotels, with new inspiring museums underway, Abu Dhabi has something for all discerning travelers of the 21st century.
This article is reprinted with kind permission from ‘The Middle East Magazine’. It first appeared in October 2013 of said magazine.
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NAME YOUR CHALLENGE. TOGETHER WE'LL ACHIEVE IT.
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Nothing is impossible when we put our minds to it. With the right people and passion we can move mountains. At Dockwise, we provide reliable and trusted services our customers have come to expect. We take pride working together with our clients and partners to deliver one of a kind projects in the oil and gas, mining, renewable, port and marine industries for more than 30 years. We provide exceptional ocean transport, offshore installation and logistical management solutions unlike any other. Our unique fleet of 23 semi-submersible heavy transport vessels in combination with our multidisciplinary engineering hubs enables us to meet your local needs. Being part of Boskalis, the global dredging and marine expert, opens up a world of even more opportunities for our customers. A journey of a thousand miles starts with a single step. Let’s take it together. DISCOVER YOUR JOURNEY AT WWW.DOCKWISE.COM
REALIZING THE INCONCEIVABLE TOGETHER
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MIDDLE EAST FEATURE 100 YEARS OF MIDDLE EASTERN OIL 14 - 15
TOP OIL & GAS PLAYERS 16 - 17
WORLD OIL & GAS 18 - 19
LEADING THE OFFSHORE PACK 20 - 21
OFFSHORE DRILLING HOTSPOT 22 - 23
DOCKWISER 13
MIDDLE EAST FEATURE
OF MIDDLE EASTERN OIL 120 Fears of shortage US Growth of Venezuelan production Post-war reconstruction Suez crisis
100 Iranian revolution Iraq invaded Kuwait Invasion of Iraq Arab Spring
80 60 40 20
1900
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000
2010
0
USD PER BARREL, 2012
Oil has had a significant impact on humanity. The impact, however, on today’s Middle East has questionably been even greater. The age of oil in the region started in 1901, when William Knox D’Arcy, a British businessman, obtained a significant oil concession from the Shah of Persia, which covered much of modern day Iran. The entrepreneur was at the brink of bankruptcy when he discovered oil in 1908 which would later be managed by the Anglo-Persian Oil Company, predecessor to today’s British Petroleum. The discovery of oil and subsequent quantities played a significant role in the dispute for its control leading toward and after the world wars.
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World wars Soon the Middle East would be involved in World War I. The British formed an alliance with Sharif Hussein of Mecca against the Ottomans who were ordered by Enver Pasha. The formed alliance attempted to fuel Arab nationalism against the Turks. After the war, the British failed to support Arab independence as promised. The Ottoman lands would be divided into French and British protectorates with political boundaries that gave little regard to the division of people and groups. This division of land is for the most part still with us to this day. Despite early oil discovery in Persia, the age of oil in the Middle East
would not seriously begin until well after the end of World War I. The global economy continued to rely on coal during the interwar period. After a wave of discoveries of major reserves through the Middle East before and shortly after World War II, coal slowly began to give way to the up and coming oil boom. Of those discoveries, the most significant findings were found in Iraq, Bahrain, Saudi Arabia and Kuwait. Creation and independence of many of the new Middle East states strongly coincide with the influx of oil revenues. Iraq and Saudi Arabia acquired their independence in 1932 followed much later by Kuwait in 1961. Access to oil during World War II
would be not only the deciding factor in countless confrontations, but vital to strategic decision making for both the Axis and Allied powers. After World War II, the majority of oil consumption has been until recently, primarily in Europe, North America and East Asia, despite the largest concentration of oil reserves located in the gulf region. Numerous foreign policy debacles resulted in repeated world oil crises following attempts to colonize or control oil producing nations in the Middle East. Oil crises Mohammed Mossadegh nationalizing the Anglo-Iranian Oil Company in Iran was the commencement of the first crisis in 1951. The United States and Great Britain responded in 1953 by initiating a coup, infamous Operation Ajax, resulting in the fall of Mossadegh and the return of the Shah. There was also growing sentiment in the Middle East that Western oil companies were taking too large a share of the revenues, while the oil exporting countries were keeping only a fraction of what they were entitled. This imbalance among other aspects led to the creation of the Organization of Petroleum Exporting Countries (OPEC) by Saudi Arabia, Iran, Iraq, Kuwait and Venezuela. The next oil crisis would begin with the nationalization of the Suez Canal by Egypt. This oil crisis began in 1967 when Egypt, Jordan and Syria attacked Israel in what would come to be known as the Six-Day War, resulting in an Arab oil embargo that temporarily crippled the American Economy. This encouraged significant energy and monetary policy changes in
the West, particularly a renewed search for other sources of supply and a move to alternative energy sources. Worldwide oil exploration and advances in alternative energy continued to the 1979 Iranian Revolution, resulting in the overthrow of Shah by the dissident Ayatollah Khomeini and establishment of his vision for a Shia Islamic Republic. OPEC’s control and influence over the global oil market reached a crossroad as high oil prices of the 70s resulted in major new oil discoveries in Alaska, Caucasus, the Caspian Sea and North Sea all of which began to undermine OPEC’s dominance. The mid-80s witnessed a collapse in oil prices forcing OPEC to undertake a shift from deliberate price controls to an indirect influence on prices based on member quotas. The last crisis of the twentieth century originated from the first Gulf War and Iraq’s attempted annexation of Kuwait. The combined reserves of Iraq and Kuwait during this period was estimated upwards to almost 70 percent of the world’s known oil reserves. This war ended with the fall of the Saddam Hussein regime followed by a decade of relative stability in Middle Eastern oil states until the events of 11 September 2001, which would upset this balance in a dramatic way. The most recent crisis, the Arab Spring, a revolutionary wave of demonstrations, protests and civil wars, has had a significant impact in the Arab world since 2010. Civil unrest has led to overthrown regimes in Libya, Yemen and Egypt as well as governmental changes in
Oman, Jordan, Kuwait and Bahrain. Minor protests have been seen in Saudi Arabia, whereas major protests have been witnessed in Iraq and Lebanon. Many of these countries continue to experience unrest, while others have managed to subside tensions. The next 100 years Oil sourced from the Middle East has played an important role in molding the 20th century. Oil discoveries of vast quantities, world wars and crises have all contributed in sculpting today’s global oil and gas landscape. Today, the Middle East accounts for nearly half of the world’s proven oil and gas reserves. In spite of significant worldwide shifts and technological advancements in production and exploration, it will likely be many decades before the world economy stops relying on Middle Eastern oil and gas to fuel the demands of a growing global economy. The world’s dependence on fossil fuels is expected to curb in the next 100 years. Technological advancements in alternative energy, peak oil theories and population growth will all play a vital role on global energy supply and demand. Middle Eastern oil and gas reserves will gradually taper off forcing countries in the region to diversify their economy to avoid possible stagnation. A post-oil economy will significant impact humanity, but may potentially have an even greater impact in the Middle East.
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DOCKWISER 15
MIDDLE EAST FEATURE
TOP OIL & GAS PLAYERS MIDDLE EAST LEADING THE WORLD The Middle East is the mecca of oil and gas. With estimated 48 and 43 percent of the world’s oil and gas reserves respectively, the region is by a long shot ahead of the rest of the world. South and Central America are a distant second place with 20 percent proven oil reserves whereas Europe and Eurasia hold 31 percent of the world’s gas reserves. The Middle East is home to oil and gas heavyweights. In total, the region holds nearly half of world oil and gas reserves of which Saudi Arabia holds 15.9% - nearly a sixth - or a whopping 266 billion barrels of oil lying under its territory along with 8.2 trillion cubic meters of gas reserves. Iran boasts 9.4% of the world’s oil reserves and the lion’s share 18 percent of the world’s gas reserves. The Persian nation is
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capable of producing 102 billion cubic meters of gas. Were it not for the numerous trade sanctions imposed on it—a major hindrance to the development of its oil and gas infrastructure—the Islamic Republic could potentially find its production to be many orders of magnitude higher. Recent developments surrounding sanctions placed on Iran may alter the production capabilities of this oil and gas rich nation. Iraq’s oil and gas reserves are estimated at 150 billion barrels and 3.6 trillion cubic meters respectively. The country is currently faced with instability and the slow recovery of its oil and gas industry. Production figures are expected to increase quite rapidly as investment in modernizing its energy infrastructure and field development gathers pace.
The United Arab Emirates ranks high in the region and holds a 5.9 percent of global oil reserves with 97.8 billion barrels at its disposal. The Gulf state is capable of producing nearly 3.3 million bpd. It also has the second-highest production to consumption ratio in the world after Iraq. Though tiny in comparison to its neighbors, Kuwait boasts 6.1 percent of global oil reserves which translates into 101.5 billion barrels of oil. In terms of its production potential, Kuwait pumps out around 3.1 million bpd. Qatar compensates its lack of oil by claiming the world’s second largest gas reserves at 13.4 percent. Second only to Iran, Qatar produces a staggering 157 billion cubic meters of gas.
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IRAN
IRAQ Res 150
9%
Res 157
9.4%
Pro 3,115 3.7%
Pro 3,680 4.2%
Res 3.6
1.9%
Res 33.6
Pro 0.8
n/a
Pro 160.5 4.8%
18%
KUWAIT Res 101.5 6,1%
Res 23.9
Pro 3,127 3,7%
Pro 1,996 2.0%
Res 1.8
1,0%
Res 25.1
13.4%
Pro 14.5
0,4%
Pro 157
4.7%
1.4%
QATAR SAUDI ARABIA Res 266
15.9%
UAE Res 97.8
5.9%
Pro 11,530 13.3%
Pro 3,380 3.7%
Res 8.2
Res 6.1
3.3%
Pro 51.7
1.5%
4.4%
Pro 102.8 3.0%
Reserves Production Reserves Production THOUSAND MILLION BARRELS
THOUSAND BARRELS DAILY
TRILLION CUBIC METERS
BILLION CUBIC METERS
Figures shown as percentage of world total. Source: IEA, BP Statistical Review of World Energy 2013.
DOCKWISER 17
MIDDLE EAST FEATURE
NORTH AMERICA Reserves Production
13% 18%
Oil
5.8% 27%
Gas
TOTAL AFRICA Reserves Production
7.8% 11%
Oil
7.7% 6.4%
Gas
WORLD
SOUTH & CENTRAL AMERICA Reserves Production
20% 8.5%
Oil
4.1% 5.3%
Gas
The Middle East holds nearly half of world’s oil and gas reserves and ranks high in the production of these precious fossil fuels, but how do other regions compare? Oil Comparison The South & Central America region has the second highest oil reserves (20%) followed by North America (13%), Europe & Eurasia (8.4%), Africa (7.8%) and Asia Pacific (2.5%). The top three oil producing regions are led by the Middle East which produces 33 percent of world output followed by Europe & Eurasia (20%) and North America (18%). Gas Comparison Second only to the Middle East, the Europe & Eurasia region has a sizable amount of gas reserves at 31 percent of the world’s total. Collectively, the Middle East and Europe & Eurasia regions account for nearly 74 percent of the world’s known reserves. The Asia Pacific region has the third largest gas reserves at 8.3 percent followed by Africa (7.7%), North America (5.8%) and South & Central America (4.1%). Europe & Eurasia tops the chart as the highest gas producing region with 31 percent of world’s output followed by North America (27%), Middle East (16%), Asia Pacific (15%), Africa (6.4%) and South & Central America (5.3%).
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18 DOCKWISER
EUROPE & EURASIA Reserves Production
8.4% 20%
Oil
31% 31%
Gas
ASIA PACIFIC Reserves Production
2.5% 9.6%
Oil
8.3% 15%
Gas
MIDDLE EAST Reserves Production
48% 33%
Oil
43% 16%
Gas
2.5 13 7.8
9.6
11
18
3
4
3 Middle East
8.3 5.8 4.1 .7
2
6.4
43
16
Production
Total Africa Asia Pacific
5.3
Reserves
31
Gas
15
7
7
Production
20
8.
48
Reserves
8.5
20
Oil
North America South & Central America
31
Europe & Eurasia
Figures shown as percentage of world total. Source: IEA, BP Statistical Review of World Energy 2013.
DOCKWISER 19
MIDDLE EAST FEATURE
OFFSHORE PACK TOP THREE FIELDS LOCATED IN ARABIAN GULF Offshore oil and gas reserves are found throughout the world with the greatest share concentrated in the Arabian Gulf. The three largest offshore oil fields are located off the coasts of Saudi Arabia and the United Arab Emirates (UAE). The combined reserves are estimated well above 100 billion barrels of which an estimated 70 billion barrels are recoverable.
Safaniya Safaniya field in the Arabian Gulf, Saudi Arabia, is the world’s largest offshore field. It is owned and operated by Saudi Aramco, the national oil and natural gas company of Saudi Arabia. The field is believed to contain an estimated total reserve of more than 50 billion barrels. The recoverable oil reserves at the field are estimated to be up to 36 billion barrels. Safaniya was discovered in 1951 and has been in production since 1957. It is operated with more than 624 production wells and a series of different platforms. Daily production
20 DOCKWISER
capacity of the heavy crude oil producing field is up to 1.5 million bpd. Saudi Aramco is currently implementing a Master Development Plan to sustain the production capability of the ageing field. The development plan includes expansion and upgrade of the field’s crude-gathering and transport capacity, and the installation of electric submersible pumps (ESPs) for artificial lifting of crude. Upper Zakum Upper Zakum oil field, located 84 km north-west of Abu Dhabi
Islands, UAE, in the Arabian Gulf, is the second largest offshore oil field in the world. The offshore oil field reportedly contains around 50 billion barrels of oil in total with an estimated recoverable oil reserve of up to 21 billion barrels. The Upper Zakum field was discovered in 1963 and brought on stream in 1967. It is owned and operated by Zakum Development Company (ZADCO), which is a joint venture of Abu Dhabi National Oil Company (ADNOC-60%), ExxonMobil (28%) and Japan Oil Development Company (JODCO-12%).
1
Safaniya Oil Field Saudi Aramco Recoverable Reserves: 36 billion barrels Daily Production: 1,500,000 barrels
2
Upper Zakum Oil Field Zakum Development Company Recoverable Reserves: 21 billion barrels Daily Production: 500,000 barrels
3
Manifa Oil Field Saudi Aramco Recoverable Reserves: 13 billion barrels Daily Production: 500,000 barrels
1 3
2
The current production capacity of the field is 500,000 bpd. The crude oil from Upper Zakum is sent for further processing, storage and export to the Zirku Island located 140 km north-west of Abu Dhabi. The oil field is currently undergoing an upgrade worth more than USD 10 billion to increase its daily production to 750,000 bpd by 2015 and expected to sustain the same volume for 25 years. Manifa Manifa oil field, located southeast of the Safaniya field in the shallow waters of the Arabian Gulf
is reported to contain an estimated recoverable oil reserve of up to 13 billion barrels, making it the third largest offshore oil field. It is a heavy crude oil producing offshore field owned and operated by Saudi Aramco. Manifa field was discovered in 1957. It started production in 1964 with daily capacity of 200,000 bpd. It was brought offline in 1984 due to reduced demand for its heavy crude. Saudi Aramco made an investment decision in 2007 to restart production with increased capacity as the oil price exceeded USD 70 per barrel.
The front-end engineering and design (FEED) for the Manifa crude oil field development was completed by the end of 2007. The first phase of production started in April 2013, and by the end of the year, production reached 500,000 bpd and is expected to increase to 900,000 bpd by the end of 2014.
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DOCKWISER 21
MIDDLE EAST FEATURE
OFFSHORE DRILLING The offshore landscape in the Middle East has seen a considerable degree of drilling activity. High oil prices and development of advanced technologies have led to an increase in the number of offshore drilling projects. The offshore drilling hotspot shows no sign of slowing. In spite of all the challenges, the market for offshore drilling in Middle East is one of the fastest growing in the world. An estimated 307 wells were drilled in the region during 2013 and expected to reach 364 by 2020. The Middle East is attracting a great deal of investment from oil majors such as BP and Total. Offshore drilling expenditure has grown across the region reaching nearly USD 65 billion between 2006 and 2012. High rig count It comes as no surprise for the oil and gas industry that the offshore arena in the Middle East is keeping international and regional drilling companies busy as
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the region has the highest rig count in the world. The region has an estimated 138 rigs in total of which 108 are actively drilling, while the remaining 30 rigs are cold/hot stacked, en route or are under construction. The top five rig managers - Noble, National Drilling, Rowan, Ensco and Shelf Drilling - account for nearly half of the active rigs. Growing exploration activities Saudi Arabia tops the chart with a sizable 46 offshore rigs operating within its territory. The oil and gas giant has over the past year significantly increased exploration activities. Iran and United Arab Emirates are also very active offshore. Iran accounts for 28 offshore rigs while the United Arab Emirates accounts for 21. Qatar follows closely with 11 offshore rigs to further production aspirations. As these offshore drilling trends continue, we can expect sustained investments to support offshore field development in the Middle East.
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The region has an
OFFSHORE RIGS COUNT
estimated 138 rigs in
IRAN
total of which 108 are
28
actively drilling,
while the remaining
SAUDI ARABIA
46
OMAN
QATAR
UAE
11 21
2
30 rigs are cold/hot
stacked, en route or are under construction.
Source: RigBase, Petrodata 2014; Morgan Stanley 2014
DOCKWISER 23
DOCKTALK
LIMITS
OFON2 FLOAT-OVER VIEW THE PHOTO GALLERY
The start of the Ofon2 project goes a long way back. It all started in 2007, when Dockwise received a commitment letter from Technip France, resulting in a contract for the transport of a topside weighing almost 14,000 mt.
Meanwhile, Dockwise matured from a heavy marine transport company to a full transport and installation contractor. Dockwise’s extended capabilities had quite an impact on the Ofon2 contract resulting in a few variation orders following Dockwise’s expressed ambition to take on additional scope. Next to transportation, Dockwise was also assisting with the float-over installation of the now 16,000 mt topside.
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Enduring hurdles In 2011, the ultimate client Total managed and took the next steps required to progress with the project by contracting Saipem-Nigeria for the fabrication of the Ofon2 jacket. Next to this, the Dockwise Ofon2 project team being kept to skeleton-crew had a green light to scale up to a full team in order to prepare engineering, procurement and subcontracting, QHSES, project control, logistics and operations.
Pushing limits The Dockwise team faced the challenge to push the Transshelf to her very limits due to the cargo weight increase to 16,000 mt. Substantial underdeck reinforcements and additional buoyancy realized by two big tanks on the stern of the vessel did the trick in order for the Transshelf to safely transport and install her heaviest cargo ever.
DOCKTALK WITH BAS POLKAMP Project Manager at Dockwise
Next to a safe delivery of the topside, the project team had to deal with another challenge, the rapidly increasing risk of piracy at the topside discharge location in the Gulf of Guinea.
Flawless execution Execution of the project commenced on 22 August 2013, when the vessel was mobilized from Bahrain to the project equipment supply base in Singapore.
yard in Ulsan, Korea to load the topside by means of a skid operation. With the topside safely sea-fastened, the Transshelf commenced her 40 day voyage to OML-102 on 26 November 2013.
Closely following instructions and recommendations given by the Dockwise Security Council, Total/ Technip security advisors and a third party assessor, Drum Cussac was called to transform the Transshelf into an impregnable fortress. “At Dockwise, we take safety seriously. Protecting the crew, cargo and the vessel is etched into our company culture and we do not compromise on safety,” comments Bas Polkamp, Project Manager at Dockwise
With the majority of project equipment carried on deck, Transshelf arrived at the Cosco Dalian Yard in China for outfitting on 17 September 2013. In a period of 6 weeks, the full deck of Transshelf was covered with steel and equipment as every square meter of the deck was used.
After a project life of eight years, the Ofon2 float-over project was completed safely in 13.5 hours. The successful installation of the Ofon2 deck was executed on 7 January 2014.
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Upon completion of the outfitting phase, the vessel sailed to the Hyundai Heavy Industry offshore
DOCKWISER 25
CREATING NEW HORIZONS TOGETHER
OFFSHORE BUSINESS INTERVIEW WITH JAAP MEIJ, VP SALES OFFSHORE PROJECTS AT DOCKWISE
What is your role at Dockwise? As VP Sales Offshore Projects, I have global commercial responsibility for all offshore related transportation and installation contracts. In doing so, I ensure strategic and financial objectives set by the company are met. Next to this, I closely liaise with the regional managers on their individual prospects and assist in our search to identify and collaborate with strategic partners for larger projects that go beyond our existing capabilities. Other responsibilities include membership of the Dockwise Proposals and Project Board and key account management responsibilities for some key clients. Now that Dockwise is a wholly owned subsidiary of Boskalis,
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we closely work together with other business units to ensure we capitalize on the potential synergies of identified opportunities. Furthermore, we feel responsible to make sure communication between the various business units is optimal. How does Dockwise stand to benefit from the growing offshore market? The Middle East is a growing but volatile market influenced by a large number of external and cultural factors. In the region, we foresee a tremendous boost in capital expenditure (CAPEX) in the coming decade. These investments ultimately result in field developments that will require services provided by Dockwise and Boskalis Offshore.
In the near future, we foresee very large offshore developments in the Arabian Gulf and more specifically the United Arab Emirates. With our unique assets and established service track record, we can provide value added activities for the various clients managing these mega development projects. In the long term, a serious number of potential prospects have been identified which require early influencing and positioning to ensure future development concepts match our capabilities. Local visibility and presence are key in this process. At the same time, the Middle East oil and gas market is considered to be a relatively closed market where large local contractors dominate the playing field. Creating
or building a new market position requires the right network, local support, persistence and a business proposition that cannot be ignored. The remaining cultural differences can be bridged with local presence and partners, which are instrumental for growth. Can you describe Dockwise’s competitive environment in this region? Competition mainly comes from the established larger Engineering, Procurement, Installation and Construction (EPIC) contractors that offer transport and installation services as leverage to win full EPIC contracts. For this reason, we focus on (inter)national Engineering, Procurement and Construction (EPC) contractors as they are keen
to team up with Dockwise and Boskalis Offshore.
Jaap Meij, VP Sales Offshore Projects at Dockwise, has more than 20 years’ experience in the offshore industry. Prior
Given the public bidding process for large projects, governed by local laws, price will ultimately be the major differentiator in deciding who will win the job. The value proposition currently offered by Dockwise and Boskalis allows us to be competitive without compromising our margins. With support of Boskalis Middle East, a local entity with more than 40 years’ experience in the region, we will be able to further our ability to win projects of this scale.
to Dockwise, he has worked for Heerema Marine Contractors in various management functions. Mr. Meij holds an Executive MBA from Business School Netherlands.
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DOCKWISER 27
TECHNOLOGY FOCUS
OFFSHORE FLOAT-OVER BIGGER AND HEAVIER DECKS ON THE HORIZON
An offshore installation method that is more than three decades old is generating renewed interest from many operators who are challenged with designing heavy-lift crane installations. Float-over installation has become a cost-effective alternative to lift installation for offshore construction, as everincreasing size and weight of decks constantly exceed the lifting capacity of floating cranes. Exploration of oil and gas in more remote offshore fields is driving the increasing demand for larger offshore units along with float-over installations. In the coming four years, an estimated 660 offshore production platforms are expected to be constructed worldwide of which 180 weigh more than 12,000 tons.
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Float-over strengths Float-over installations have innate benefits due to the installation approach. One of the key strengths of the float-over is the lack of rendez-vous risk, which is the schedule risk resulting from the need to have the crane and vessel in the field at the same time. In principle, float-over installations do not have a weight limitation as today’s heavy transport vessels (HTVs) are capable to transport and install mega sized topsides. In addition, integrated platform installation eliminates extensive offshore hook-up and commissioning resulting in limited overall offshore exposure. Float-over phases There are several phases involved
when installing a deck with a semisubmersible HTV. The first is the standby phase where the HTV is at a safe distance from the jacket but connected to the mooring system. Last minute arrangements such as preparing the vessel’s ballast system or the hydraulic jacks are under way. The second is the docking phase where the vessel carefully enters the jacket slot, the distance between the jacket legs. Winches or tugs are used to pull the HTV carefully into position. In the third phase, pre-mating, the vessel positions the deck directly above the jacket. Once positioned, the HTV ballasts to match the leg mating unit (LMU) with the receptors on top of the jacket legs. During this phase, it is critical that the vessel
motions be limited to suit the chosen LMU geometry. No weight transfer yet occurs. For a successful float-over operation, countless hours of preparation come down to the exact moment when the deck makes contact with the jacket. The fourth phase is the most critical point of the installation leaving no room for uncertainty in the functionality of the load transferring equipment. In the mating phase, the deck is lowered onto the jacket by the vessel’s rapid ballasting system where large quantities of water enter the ballast tanks, which enable the HTV to submerge. During this phase, the deck’s weight is completely transferred from the
vessel onto the jacket. Custom engineered elastomer is used in the design of the LMUs to dampen the friction during load transfer. In the post-mating phase, the deck sits secure on top of the jacket and a gap is created between the deck support unit (DSU) and the HTV to ensure vessel motions will not cause contact between the two. In the exit phase, the vessel departs from the jacket slot on its own propulsion or with assistance from tugs. These five phases may slightly differ depending on equipment and installation approach.
to perform a float-over. The first is the HTV’s width being the right size. The vessel must be narrow enough to fit inside the jacket slot. Secondly, the vessel must be designed with an open stern and equipped with movable casings. The open stern enables the HTV to exit the jacket slot during the last phase of an installation. To ensure the deck is perfectly positioned onboard the vessel, casings, which facilitate balance and ballasting, can be moved to best accommodate the cargo. Lastly, HTVs must have sufficient strength and stability to carry and transport heavy decks.
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Float-over requirements There are three essential specifications required for an HTV
DOCKWISER 29
INDUSTRY PERSPECTIVE
FOCUS. RELIABILITY. OFFSHORE DRILLING ACTIVITIES SOAR INTERVIEW WITH DAVID MULLEN, CEO AT SHELF DRILLING
Jack-up rig ‘Key Hawaii’ on board the Transshelf
Shelf Drilling is working closely with Transocean under a transition services agreement. Is the transition coming along as planned? Achieving independence from Transocean was a challenging and complex undertaking. Although the transition of the 38 rigs in 12 different countries has thrown many obstacles in our way, today we are substantially independent and managed to achieve this within the projected timeframe. The Transaction required that Shelf Drilling establish it own entities in each area of operation with all the prerequisites to operate as an independent company. Shelf Drilling developed and built a fit for purpose ERP system and an IT supporting infrastructure that was
30 DOCKWISER
easy to maintain. The ERP system was intentionally not customized to a high degree. What regional opportunities do you see in the Middle East? The Middle East is a fast growing market and I expect it will continue to be as Saudi Arabia, Qatar and UAE continues to look to increase their production or productive capacity. The customer break-even costs in the Arabian Sea are among the lowest in the offshore sector and compare reasonably well with onshore Middle East. The Saudi Arabian market is experiencing increased domestic demand and increasing natural decline on the large prolific onshore mature fields. Offshore production
is projected to continue to increase; all the significant discoveries are in the shallow water of the Arabian Gulf such as Safaniya and Manifa field with 36 and 16 billion barrels of recoverable oil. Currently almost 25 percent of the country’s production is coming from offshore production. The United Arab Emirates (UAE) is the home of the second largest offshore field “Upper Zakum” with 50 billion barrels of oil in place and 21 billion barrels of recoverable. National Drilling Company (NDC) provide rigs to the parent ADNOC group of companies and also looks to the international contractors for the additional rig capacity to meet the current rig demand. UAE has aggressive production targets and consequently and progressively
Shelf Drilling Holdings Limited is a private company which owns and operates independent catilever jack-up drillng rigs headquartered in Dubai with operations in Southeast Asia, Middle East, India, Mediterranean, North Africa and West Africa. The company is solely focused on shallow water drilling and currently active in 12 countries. Shelf Drilling is led by David Mullen and supported by approximately 4,000 employees and contractors.
increasing rig requirements over the next 5 years. Qatar has clear targets to increase liquid hydrocarbon production as a result of significant near shore exploration success in recent years. Qatar is the home of the largest offshore gas field, the North Field, and I expect we will see a gradual lifting of the gas moratorium on drilling which will further enhance drilling activity in the outer years. Which industry trends in the Middle East impact Shelf Drilling’s growth strategy? The Middle East macro environment is supportive of the current activity trends and will likely continue to support growth. The Middle East is currently the largest jack-up
market and the prolific nature of the near shore fields and low customer break-even economics will continue to fuel growth. In addition the near shore fields will provide a buffer against the natural decline of some of the large on shore fields. The Kingdom of Saudi Arabia has a rapidly growing population where approximately 50% of the population are below 25 years of age, the kingdom currently consumes approximately 4 million barrels of oil per day and this trend will likely continue to grow with the increasing demand within the kingdom. The newbuild supply is not a threat to our activity in the Middle East, as the rigs working in Saudi Arabia are very fit for purpose for what they do, conforming with “Schedule G” and
having a shallow draft capability to work in work-over and development drilling on the very shallow water areas of the Safaniya and Manifa fields offshore Saudi Arabia. We are however also looking at newbuilds, with the difference that the Shelf Drilling newbuilds design will be fit for purpose for our geographies with technical specifications that will provide greater efficiency while drilling and during rig moves. We also believe that we can build new rigs, which are fit for purpose and more efficient and that are substantially less expensive than the newbuilds in the market today.
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DOCKWISER 31
CREATING NEW HORIZONS TOGETHER
UNDERSTANDING NEEDS INTERVIEW WITH KO DE BLAEIJ, DIRECTOR MIDDLE EAST AT BOSKALIS AND KYRIAKOS VAKANAS, GENERAL MANAGER MIDDLE EAST AT BOSKALIS
Port expansion project, Ras Laffan, Qatar
What is your joint responsibility in the Middle East? We are responsible for dredging activities in the Middle East such as building ports and channels and land reclamation. We also support the intergroup companies in the Middle East. For example, we are expanding our activities to areas where we see increased added value, both for our customers and indirectly for Boskalis Offshore and Dockwise who are active in the offshore industry. In doing so, we make use of our network, which dates back to the 1970s, to broaden the services offered to our customers. How important is the Middle East for Boskalis? The Middle East is a strategic region for
32 DOCKWISER
us. We have offices in Bahrain, Oman, Saudi Arabia and the United Arab Emirates. This network allows us to stay close to our customers and further grow our presence in the region. There are projects in this region which run into the billions. A few years back, we won two such projects within a three year period with turnover upward of two billion euros. These mega projects come along once in a while, and some of them are so complex that we are one of the few players who can provide a solution. For example, the Ras Laffan project in Qatar, one of the largest maritime engineering projects in the world, was a port expansion over a period of three years where more than 3,000
specialists worked to create the largest LNG harbor in the world. In total, 29 million cubic meters of sand was used for land reclamation for LNG tank storage, container handling and future docks and 24 million cubic meters was dredged to widen the waterways. In addition, 33 kilometers of breakwaters were constructed, requiring 40 million tons of rock. The Khalifa Port and Industrial Zone (KPIZ) project in United Arab Emirates is another example of a large scale project. The KPIZ is one of the world’s largest greenfield development projects and is part of Abu Dhabi’s major diversification plan to develop various sectors. In total, Boskalis dredged 46 million cubic meters from the access channel and harbor basin.
What is important to get business done locally? Understanding customers’ needs is important. Projects can at times be extremely complex while others are fairly simple. We take every project seriously and always provide the high quality service our customers have come to expect, regardless of whether the project is worth five or 500 million euros. We are always available for our customers and strive to help them grow their business. It is also important to keep our customers abreast of latest technology and capabilities. For example, we recently learned that one of our key customers wanted to conduct Inspection, Repair and Maintenance (IRM) services on two
of their Floating, Production, Storage and Offloading (FPSO) vessels. At that time, they were not aware of the existence of onsite dry-docking services for their IRM needs. We explained to them how the world’s largest heavy transport vessel, the Dockwise Vanguard, is able to dry-dock an FPSO onboard for IRM services. This is an example of how we keep our customers connected to the very latest technology available at Boskalis.
We can now use our extensive network and established reputation in the region to extend the scope of services offered to our customers, primarily through our offshore division which includes Dockwise, the newly acquired heavy transport and installation specialist. With Dockwise, we are able to strengthen our solutions for the energy market.
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Ko de Blaeij and Kyriakos Vakanas are seasoned managers at Boskalis with more than 80 years of combined experience serving the Dutch
How is Boskalis positioned to help organizations in the Middle East grow their offshore ambitions? We are strategically positioned to support regional organizations in growing their offshore ambitions. Boskalis Offshore offers the total marine scope for energy solutions.
multinational in various management functions. Mr. De Blaeij, currently Director Middle East, is responsible for the dredging business in the region and holds a Civil and Environmental Engineering degree. Mr. Vakanas, currently General Manager Middle East, is responsible for growing business in the region and holds a Civil Engineering and Architecture degree.
DOCKWISER 33
DOCKTALK
ARABIAN CMMP DECK INSTALLATION VIEW THE PHOTO GALLERY
DOCKTALK WITH DANIEL VAN DER BEEK Project Manager at Dockwise
Dockwise recently completed the transport and float-over installation of one of the largest integrated decks in the Middle East. The 7,700 mt Central Metering and Manifold Platform (CMMP) was built for the South Oil Company (SOC), Iraq’s Ministry of Oil. The unit will be used for the Iraq Crude Oil Export Expansion Project Phase 2, within the framework of the expansion of the Al Basra Oil Terminal (ABOT), aimed to improve and modernize Iraq’s oil export infrastructure. Foster Wheeler developed the front-end engineering design for the complete project and is currently acting as PMC managing the execution phase on behalf of the SOC. As a project manager, what was your responsibility for CMMP installation? Saipem, contracted by the SOC, was responsible for building and commissioning the topside and reached out to us to provide an outfitted vessel for the load-out from the quayside onto the vessel along with the ocean transport from the yard to the discharge location offshore Iraq.
34 DOCKWISER
My role as project manager was to make sure all the boxes were ticked and ensure a safe and successful project execution which included outfitting, transport and installation. The CMMP deck was transported 3,900 nautical miles through a course of 14 days from Saipem’s yard in Karimun, Indonesia to the Arabian Gulf, about 550 kilometers south-east of Baghdad. The floatover was conducted in 28 m of water
near the Al Faw Peninsula. Can you describe the process involved for the CMMP float-over installation? There are two methods to install topsides offshore. Operators can choose to lift or float-over topsides onto the substructure. The float-over is an alternative installation method to the conventional heavy-lift crane. A float-over installation is executed
using a semi-submersible heavy transport vessel (HTV) or barge. For the CMMP float-over, an HTV was chosen as it better accommodates adverse weather conditions (e.g. typhoon risk) when compared to a barge. Before the installation, the Finesse vessel was modified to accommodate the CMMP unit and subsequent installation. The vessel was equipped with skid beams, surge stoppers, a stern entry guide, boarding ladders, winches and a transom fender. The CMMP float-over installation was executed in four phases. The first phase involved mooring the HTV in front of the jacket by connecting
the vessel in an anchor spread consisting of four anchor points of which two connected the jacket. In the second phase, the vessel was positioned directly above the jacket. Winches onboard the HTV reeled steel wires, which were connected to the jacket, to pull the vessel into the slot. In the third phase, the deck was carefully lowered onto the jacket by the vessel’s ballasting system where large quantities of water entered the ballast tanks, enabling the HTV to submerge. During this phase, the deck’s weight was completely transferred from the vessel onto the jacket. Lastly, a gap was created between the deck support system and the vessel to avoid collision while the vessel slowly exited the slot.
The Arabian Gulf is a known high risk area. What measures does Dockwise take to mitigate security risks? Safety of our crew, cargo and vessel is important. That is why when a vessel is required to sail through a high risk area, the Security Council at Dockwise has to approve. For this project, we received the approval with accompanying measures that had to be taken into account to ensure safety. The most impactful measure was the decision to man the Finesse with a vessel protection detachment (VPD) from the Royal Dutch Navy. Next to the VPD, we had regular communications with the Iraqi Navy who was patrolling the area.
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DOCKWISER 35
INDUSTRY PERSPECTIVE
STRONGER TRADE THE NETHERLANDS AND UAE EXPAND MUTUAL INTERESTS INTERVIEW WITH GERARD MICHELS, DUTCH AMBASSADOR TO THE UNITED ARAB EMIRATES
The Netherlands Ministry of Economic Affairs and representatives of the UAE government agreed in November 2013 to further strengthen trade relations between the two countries, with better protection of mutual investments and cooperation in the energy sector. Has this agreement materialized into recent or upcoming initiatives? The official visit to the United Arab Emirates (UAE) by Minister Henk Kamp in November 2013 has boosted our bilateral ties in these areas. Both the Treaty on Investment Protection and the Memorandum of Understanding (MoU) on Energy Cooperation are important steppingstones. The agreement signed between Minister Kamp and the UAE Minister of
36 DOCKWISER
Finance encompasses investment activity between both countries outside the field of energy. We’re very excited about the increased scope of commercial opportunities this offers to companies from both countries now that the protection of investments is sealed in this treaty. At the moment, the treaty is going through the parliamentary ratification process, after which it will enter into force. We’re planning, together with the Netherlands Foreign Investment Agency (NFIA), to organize an information session on this topic for UAE companies to fully understand and utilize the added opportunities of the treaty. For the MoU on Energy Cooperation we have identified a number of key topics where we can add value.
We’re working closely with the UAE Ministry of Energy and key parties in the Netherlands to bring the MoU to life. We’ll start with gas technologies, renewables and energy saving. In the latter, there is enormous potential in the Emirates. The opportunities are tremendous for both countries and we do look forward to learn from each other and complement one another. What offshore energy developments do you see impacting the UAE? The oil and gas industry is looking further and deeper offshore, as the projects continue to expand in size and capital spending. The driving forces behind regional offshore projects are Saudi Arabia, Qatar and the UAE, where energy and infrastructure projects on a worldleading scale continue to forge ahead.
Gerard Michels is the Dutch Ambassador to the United Arab Emirates since 2010. In this capacity he is responsible for both the Embassy in Abu Dhabi and for the Consulate General in Dubai. Prior to his current assignment, Mr. Michels has held various positions in the Dutch Foreign Service including Brussels and Tokyo. He holds a degree in social and economic history.
As for Abu Dhabi, it’s clear that Abu Dhabi Marine Operating Company (ADMA-OPCO), major producer of oil and gas from the offshore areas of the Emirate of Abu Dhabi, is taking the development of offshore projects very seriously. The Sarb Full Field Development, Umm Al Lulu and Al Nasr projects when combined are expected to increase the Emirate’s production capacity by 300,000 bpd, with a projected combined spending of over USD 10 billion. ADMA-OPCO operates the main offshore assets in Abu Dhabi, which have been in redevelopment to maximize output. The Umm Shaif and Lower Zakum offshore oil fields have a capacity of 520,000 bpd combined, although after an expansion at each they will have a production capacity of 425,000
bpd and 300,000 bpd, respectively. Initiatives such as the introduction of zero gas flaring in the Zakum fields by ADMA-OPCO are promising and show the eagerness to employ new technologies that are less harmful for the environment and maximize usable energy output. The UAE’s position as a regional hub for upstream companies is thanks to a fairly open market and its attributes as a logistical and commercial hub, the location of choice for many firms with regional aspirations.
projects in the UAE based on Dutch technological and innovative expertise and experience. Energy efficiency, effective safety- and riskmanagement programs, developing the workforce, developing new technology, and ensuring competency across the organization have become a focus for major oil and gas companies in the Gulf Cooperation Council region (GCC-region) and provide additional scope for Dutch companies.
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The UAE has ambitious targets to increase offshore oil and gas production. What role do Dutch companies play in supporting the UAE’s offshore initiatives? We are confident we can make significant contributions to energy
DOCKWISER 37
STAND NUMBER 1663
AT OTC!
MASTHEAD The Dockwiser is a publication of Dockwise. For more information, please contact: +31 (0)76-548 41 00 | communication@dockwise.com | www.dockwise.com Project Management Daniëlle Biermans Head Editor Jonathan Martinez Art Direction / Realization Canday | Creative agency for interactive brand communication Printed by Bek | Veghel Contributors Shelf Drilling, Dutch Embassy in the United Arab Emirates, The Middle East Magazine Photography Bart Lommes, Joe Lynch of One Degree North Photography (Singapore), Santiago Domínguez, Foto’s & Friends, iStockphoto, Shutterstock
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