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ABU DHABI
Rises to the challenge and aims to boost production from 2.82 to 3.5 million bpd
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nnovative partnerships, exchange of expertise, workforce development and a drive towards sustainability are the pillars guiding Abu Dhabi as its oil industry settles into the next chapter and sets new goals. To reach the target of 3.5 million bpd by 2017 more than US$25 billion will be invested in Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi Company for Onshore Oil Operations (ADCO) over the next five years. Concerns that UAE would change the structure of its partnerships have passed. Instead, ADNOC is harnessing the experience of IOCs to create dynamic partnerships that can handle future production challenges. “It’s up to us to choose who is best and who can add value,” said HE Suhail Mohamed Faraj Al Mazrouei, the UAE’s Minister for Energy. “What matters for this government is the positive opportunities we create for the next generation,” he added. The family of oilfields, which include Bab, Asab and Bu Hasa, are together responsible for half of the emirate’s almost 3 million bpd output and hold more than 100 billion barrels of oil in one of the most politically stable parts of the world. ADNOC also aims to boost the capacity of the Lower Zakum offshore field to 425,000 bpd in 2016, by adding 100,000 bpd. Flexibility is key for any partner in Abu Dhabi. Since concessions expired in January 2014 the industry recognizes the value of niche technical expertise and is building partnerships accordingly.
A good example is Statoil which is a new contender to the concessions. The Norwegian Ambassador Anders Berge explains, “Statoil brings the experience of working in extreme conditions. This has sharpened our technological edge and has been a catalyst to spinoff technology.” Another international company Maersk, also operates as a lead technical player in the region thanks to its experience with “Part of our strategy is carbonates. This is a valuable asset for to be more open which Abu Dhabi. is making UAE a hub for energy.” As niche expertise remains a priority, Abu Dhabi is focused on H.E. Suhail Al Mazrouei UAE Minister of Energy the continued development of its research centers which include the Glenelg School, the Petroleum Institute and the Masdar Institute. These institutions, along with the support of the IOCs and service companies, create an environment that enables innovation and continuously regenerates the industry. As Minister Al Mazrouei explains, “we are not just targeting production, but also how to achieve sustainability and maximize resources for future generations.”
Mubadala Petroleum has operated the Ruby gas field in Indonesia since 2013
2,000,000,000
barrels of oil with recovery rates up to 70%
Statoil has through management focus and innovative use of technology recovered an additional 2 billion barrels of oil from five mature fields in Norway, with recovery rates up to 70 percent. Statoil Abu Dhabi B.V. – Abu Dhabi 3, Mireekh Street Al Nahyan Commercial Bldg , Al Nahyan District P.O. Box: 127376 www.statoil.com Tel.: +971 26572222
Business as usual for the UAE’s oil industry
UAE’s partnerships continue but will interest in Asia transform the market?
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bu Dhabi has come a long way since its original concessions were first agreed in 1939. Today, as its oil fields mature and concession agreements are revised, shifts are taking place such as the move towards gas development and the entry of Asian international oil companies (IOCs) into the UAE marketplace. The terms for the new bids were challenging when they were issued in 2013. Bidders were asked to present plans to attain a 70% recovery rate, almost double the previous quota of 40%, over a 40-year concession in return for a 5% to 10% stake. The first of the traditional partners to sign a new concession was Total. The French company won the bid due to the scope of its technical and commercial offer. As well as receiving a 10% stake, Total was appointed asset leader for the South East, including the fields Sahil, Asab, Shah, Qusahwira and Mender, described as “technically challenging,” by Total and Bu Hasa, which is Abu Dhabi Company for Onshore Oil Operation’s (ADCO) largest field. Hatem Nuseibeh, President of Total UAE, attributes Total’s selection to the company’s long history in the UAE along with its “large footprint” in the region, its geology expertise and its interest in developing local talent. “It is truly a partnership and not a concession agreement,” Nuseibeh said. While no one was surprised to see the renewal of Total’s concession or the increased collaboration between the partners, the contracts signed with Korea and Japan represent an unexpected turn for Abu Dhabi. On March 4th 2015, Abu Dhabi National Oil Company (ADNOC) signed a Memorandum of Understanding with Korea National Oil Corporation (KNOC) and Korea Institute of Geoscience and Mineral Resources (KIGAM). The memorandum provides for cooperation in research and development activities for oil field development in UAE. In April JODCO, a group company of Japan’s Inpex was awarded a 5% stake in ADCO’s onshore oil concession for the next forty years.
Similar to the deal with Total, the agreements with KNOC, KIGAM and JODCO will be collaborative in nature. As well as sharing technical expertise ADNOC, KNOC and KIGAM plan to promote joint research, implement expert exchange programs and host seminars. What was most surprising about the announcement of JODCO as partner was that it came before other contenders such as BP, Shell, Occidental Petroleum, Statoil and Rosneft. This is an important collaboration for a Japanese company in the Middle East, where it can secure shipments without having to pass the Strait of Hormuz. With Japan relying on around 83% of its total crude imports from the Middle East, this can only enhance the country’s energy security. Abu Dhabi’s relationship with Asia is mutually beneficial. “Most of our oil goes to the Asian market,” explained “The development HE Suhail Al Mazrouei, Abu Dhabi’s of local talent is at Minister for Energy. “They are more the heart of all our than consumers because they are programs.” growing and building companies. Aqeel Madhi We are taking risks together and they CEO NPCC help us in other sectors. For example, the Japanese are our partners in Mubadala,” he said. The Minister is confident that Abu Dhabi’s “excellent partnerships” between IOCs and NOCs will be as successful as the old ones, which enabled UAE to lead one of the most efficient exploration programs in the industry and to become one of the world’s major oil producers. In short, despite the changes, it is business as usual for Abu Dhabi’s oil and gas industry.
The principals of safety and quality continue to drive growth at NPCC
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stablished in 1973, NPCC is an Abu Dhabi engineering, procurement and construction (EPC) company with operations in the Arabian Gulf, South and South East Asia and plans to expand its activities to Africa and the Caspian region. Despite the fall in oil prices, the company is keeping pace with the current trend towards consolidation in the global oilfield sector by pursuing a policy of “premium acquisitions and collaborations,” according to company CEO, Aqeel Madhi. “NPCC has grown to a large, fully integrated EPC solutions provider, acquiring assets, talent and capabilities over four decades of executing challenging work in the region,” Madhi said. “We are proud of maintaining one of the best safety statistics in the industry and our project performance records are impressive, irrespective of working in collaborations or as a single entity.” NPCC’s current offshore projects in Abu Dhabi include the Umm Lulu, Umm Shaif and Al-Nasr oil fields where it operates
as a strategic partner. Because of the scale and capabilities of the company’s services, it acts as a one-stop solutions provider for oil and gas projects both in the upstream and downstream sectors. NPCC continuously works to develop strategic partnerships with local contractors, vendors, manufacturers and service providers to ensure it can provide “in-country value” wherever it operates. The company owns 22 vessels and has yard capabilities that span more than one million square meters of seafront. It boasts a loyal workforce, most of whom have been with the company for two decades. Looking to the future, Madhi is optimistic. “We are expanding our client base offering quality services driven by cost efficiencies. There are plans to acquire technology through collaborations, mergers and acquisitions, so that we service niche markets such as EOR and Deepwater. At the same time we continue to exceed the expectations of our existing customers through the timetested principles of safety, quality and timely delivery.”
Explore. Develop. Produce.
Mubadala Petroleum is an Abu Dhabi-based international, upstream oil and gas exploration and production company. We were established as a wholly-owned subsidiary of Mubadala Development Company in June 2012, incorporating and building on the success and materiality of Mubadala’s existing investments in the oil and gas sector. We manage assets and operations spanning the Eastern Hemisphere, and our success is built on a clear purpose, strong partnerships, the passion and capability of our people, and our focus on performance.
For more information please visit mubadalapetroleum.com
Innovation is not a project, it is a journey Suhail Al Mazrouei, Minister for Energy, UAE economy but we are a small country with a small population. The oil industry was our foundation and we are still keen to excel in it and maintain our role as a reliable supplier to the world and a reliable OPEC member, but it is not our only focus.
Keen to diversify their oil-dependent economy, the United Arab Emirates invest in innovation, science and technology to secure a sustainable future. Minister for Energy, Suhail Al Mazrouei outlines the emirate’s main areas of research, in particular renewable energies and water.
The central theme set by come for the future. At the the UAE government for time, we created a struc2015 is innovation. How tured scholarship program does this apply to the en- so that our best and brightest could study in the leadergy sector? An important driver is ing universities in the world. Those that we want to early graduates reduce our de“We have helped build our pendency on oil among the oil & gas sector. revenues and gas imports. best standards Both the Abu Dhabi National This is why very early in the dein the world Oil Company (ADNOC) and velopment of in terms of ADIA have since our country, the government crepreserving the worked together to develop talated the Abu Dhabi Invest- environment.” ent and investments in Abu ment Authority (ADIA) and helped to se- Dhabi. We are a $400 billion cure other sources of in-
Do you include the protection of the environment in this push for innovation? Indeed, it is a key part of many of our innovation projects. I’ll give you the example of flared gas. Up until the mid-1990s, many oil producers, including us, flared the associated gas because it had little commercial value. But given the impact on the environment, Sheikh Zayed, the founder of the UAE, set the objective of zero flare. It was a bold decision that required huge capital expenditures. As it turned out, not only did it contribute significantly to reducing CO2 emissions, but it also saved vast quantities of gas. Today, we push oil and gas companies to protect the environment and marine life, and we take this responsibility everywhere we operate. We have among the best standards in the world. What are the UAE’s main areas of investment in terms of innovation? Water is very important to us, it even is more important than oil. So finding a sustainable source of water is a priority and we
40% The percentage of the UAE’s gross domestic product directly based on oil and gas output.
want to excel at this. The Masdar Institute of Technology is focused on this issue right now. Renewable energy is another area, which interests us as demonstrated by our projects and investments abroad. Certain industrial areas interest us too, such as the production and use of aluminum. We are the world’s second or third largest producer of semi-conductors. We are interested in medicine, and in genetics in relation to agriculture. The cabinet of Ministers declared 2015 to be the Year of Innovation and chartered a ministerial committee to design a structured policy for innovation that the whole government will adopt. We aspire to promote creativity and innovation among all the population of the UAE, whether they are nationals or expatriates. We aspire to start from the early years of school to the highest levels of R&D facilities. Today, the UAE has really become a land of opportunity particularly for young and innovative people. Innovation is not just a project, it is rather a journey.
We are pushing the boundaries of technological innovation Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Chairman of Masdar Kingdom, which are two of the world’s largest and most sophisticated renewable energy projects. An important element of our energy portfolio’s strategy is to maintain Abu Dhabi’s leadership in future energy markets. By developing renewable energy projects domestically and internationally through Masdar, we are extending our leadership beyond hydrocarbons and ensuring we play a significant role in the growing share of renewable energy globally. We are also sharing experience and best practices with other countries in the region – Jordan, Oman and Saudi Arabia. The Masdar Institute has The Masdar Institute plays a key role in training the future generation five main research areas: of business executives and policy makers that will move the UAE’s water, innovation, energy, economy forward. microsystems and smart and sustainable systems. More generally, we are inWhat will be the impact of and stimulate innovation? vesting heavily across key For example the team at the fall in the oil price on sectors, many of which are the diversification of the Masdar, in collaboration knowledge driven, such as with the Masdar Institute, is UAE economy? energy, transWe have been able to miti- advancing CCUS gate the impact because of technology to in“By developing port, education, health our vision set out decades crease hydrocarrenewable care, technolago to diversify our econo- bon production water, my. In order to do so, we while reducing energy projects, ogy, space, deemishave invested for years in carbon education because there is a sions. They are we are extending fense, real estate, metals critical link between eco- also researching our leadership and mining nomic growth and invest- how to combine and financial ment to develop a highly renewable enerbeyond services. and cutskilled and productive gy workforce. The Masdar In- ting-edge desalihydrocarbons.” What are stitute is training the UAE’s n a t i o n your plans for developing future energy leaders and technologies. renewable energy projects Through Masdar, we’re pushes the boundaries of outside the UAE? technological innovation also making an impact in We are continuously lookrenewables – from the and R&D. ing for opportunities to exShams 1 solar power plant tend our leadership and What are Mubadala and in Abu Dhabi, to the Lonshare our knowledge with Masdar doing to encourage don Array in the United
1% This is the estimated reduction in GDP for the UAE due to the fall in oil prices, compared with an estimated 3.5 percent for other hydrocarbon dependent economies.
16,000 This is the number of homes in Oman that will be supplied with wind energy, thanks to a project led by Masdar.
other countries, so they, too, can work toward ensuring sustainable access to energy. For example, in Oman, Masdar is delivering the GCC’s first large-scale wind farm, which will generate power for 16,000 homes. In Jordan, Masdar is developing the 117 MW Tafila wind farm, which will power more than 80,000 homes. In Afghanistan, Masdar installed solar home systems in about two dozen villages, giving access to electricity to more than 3,000 people. The UAE-Pacific Partnership Fund, a US$50 million initiative, is developing grant-funded renewable energy projects, which Masdar is implementing in the South Pacific.
UAE’s newest export is local expertise
UAE’s oil companies harness years of experience to develop new market opportunities
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he key word for Abu Dhabi’s oil and gas industry today is sustainability. As the historical period of concessions ends and new partnerships begin to emerge, Abu Dhabi remains focused on a visionary goal, creating opportunities for its next generation. This goal means creating the ideal environment for growth and ensuring that technology and talent are available to overcome challenges. To achieve this, Abu Dhabi takes the dual approach of educating domestic talent in a research community focused on developing cutting edge solutions whilst also deepening its markets abroad by expanding the range of services offered to clients in foreign countries. Falling oil prices may have slowed the industry but they haven’t depleted Abu Dhabi’s reserves. Abu Dhabi holds 95% of the UAE’s crude oil reserves and 92% of gas reserves. It has proven reserves of 1.3 trillion barrels of conventional oil with “Abu Dhabi has invested in education possible resources of 2.7 trillion so the industry has the barrels. However, 60% of the regions’ right resources.” fields are carbonates, which demands Musabbeh Al Kaabi both enhanced oil recovery (EOR) CEO Mubadala technology and skilled technical Petroleum teams to safeguard efficient recovery. To ensure Abu Dhabi can provide skilled technicians and engineers, the Masdar Institute was established in 2009 as a research-driven graduate-level university focusing on advanced energy and sustainable technologies. “Our concern is to develop human capital by giving them an education that is on par with the best in the world. That is why we work very closely with MIT,” said Dr. Fred Moavenzadeh, the Institute’s President. To emulate MIT standards, all of the Institute’s faculty members have spent at least one year on a MIT research project or working with
Abu Dhabi’s technical students are amongst the industry’s finest
an MIT counterpart. To develop ties with local industry, the Institute has put an innovative program in place, signing Abu Dhabi-based companies up to sponsorship contracts. To date, Masdar has signed contracts with 40 companies. Though this is a new program for Masdar, the culture of knowledge sharing to improve local expertise in Abu Dhabi has been part of the partnership programs for decades but its importance has been heightened with the government’s new focus on sustainability. For example, Mubadala Petroleum was established in 2012 as a subsidiary of Mubadala, incorporating and building on the success of Mubadala’s Oil & Gas business unit. The company is active in three core geographical areas, the Middle East, Africa and Southeast Asia. Its goal is to create a footprint of skilled Emirati people in the oil and gas community on a worldwide level. “As Mubadala Petroleum we want to create and develop strong leaders,” said Mussabeh Al Kaabi, CEO of Mubadala Petroluem, “not just for the UAE, but also in the countries where we operate. In Abu Dhabi, we think it is an excellent opportunity for UAE nationals to be exposed to the international oil and gas industry.” Al Kaabi also credited the 10-year-old Petroleum Institute for providing the industry with qualified graduates who are primed to handle the challenging conditions of fields in both the UAE and abroad.
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ecause of its long history and the many challenges presented by its fields, Abu Dhabi has an established research and development community that is producing some of the finest engineers and technicians in the industry. The IOCs operating in Abu Dhabi also play a role in the culture of technology and talent transfer. “It goes hand-in-hand with a proper NOC-IOC partnership,” said Richard Doidge who heads Maersk Oil’s business development activities in Abu Dhabi. He believes Maersk’s reputation as “a long-term partner and a responsible corporate citizen,” is an asset that the company can bring to the UAE. “In 2011 we opened “Total has made a big effort of an Abu Dhabi office ‘Emiratizing’ its workforce in this to show our long-term country,” said Hatem Nuseibeh, commitment.” President of Total UAE. The IOC Richard Doidge set up the Total Abu Al Bukhoosh Managing Director Maersk Oil Academy (Total ABK) in 1974 to train the mechanics, electricians, engineers and higher management needed to run the country’s fields. “Many people working today in key postings have gone through Total ABK,” said Nuseibeh. Meanwhile companies such as NPCC are increasing market share abroad by harnessing its UAE experience. “We continuously work to develop strategic partnerships with local contractors, vendors, fabricators and service providers to derive long
The skilled workforce sets Abu Dhabi apart
term mutual value and in the process offering genuine “In Country Value” in the areas of operations,” explained Ageel A. Madhi, CEO of NPCC. Demand for quality talent is high. As well as the various NOCs and IOCs operating there, Abu Dhabi’s service industry is growing at a fast pace. Established in 1977, AlMansoori Specialized Engineering is a pioneer as a local provider in the Abu Dhabi service sector. It has grown in that time to become an international provider with more than 2,000 employees in 24 countries and branches in 15 countries. “When I started in the industry there was a lot of nationalism in the oil companies,” said Ibrahim Alalawi, deputy CEO of AlMansoori Specialized Engineering. “I have seen a full 180 degree turn. Now, the NOCs are partnering with the IOCs to get the benefits. I have seen that the IOCs do not have all the answers and they are learning from the NOCs. In the oil company-service company relationship, I am seeing it move towards a more collaborative environment. That is where I see the future heading: more collaboration between NOCs and IOCs and more collaboration between oil companies and service companies,” he added. Big Data technology is driving the push towards collaboration for many companies including AlMansoori. The engineering specialist has recently launched a new technology, the multiphase flow meter, which is designed to cause less disruption to the flow of the oil by offering real-time data. “As the fields in the region are aging, we are seeing more demand for data. Many of our services are related to capturing data, whether it is well testing, logging or running gauges. We expect that trend to increase in the future,” said Alalawi. Mubadala Petroleum is an example of another Abu Dhabi company that is using its technical expertise to grow foreign markets. As well as having strong operations in Oman, Qatar and Bahrain, the company is active in Africa and has signed an agreement with Somalia. Al Kaabi believes that Mubadala has developed assets, which can be leveraged to develop the company’s operations abroad. “We have developed very strong capabilities in the exploration side and in the mid to small field oil and gas operations. We have a strong alliance with companies who are “As the regions’ fields strong in EOR and have experience age, we are seeing an in terms of execution, technical increased demand for resources and capital investment data.” required in these projects. In Abu Ibrahim Al-Alawi Dhabi we have many complex and Deputy CEO AlMansoori Petroleum Services challenging projects starting from ultra sour gas development all the way to very exotic chemical EOR projects in offshore. We want to build on the strong relationship with ADNOC and try to export some part of that knowledge through Mubadala Petroleum elsewhere in the world.” Al Kaabi sees an oil and gas industry that shares knowledge from region to region as viable and expects the industry to follow that trend in the future. With a planned investment of $25 billion in the industry over the next five years and a growing number of bases in foreign countries, Abu Dhabi is harnessing the expertise developed from that investment and creating a valuable exportable commodity.
Our priority is the MENA region Ibrahim Alalawi, Deputy CEO, Al Mansoori Specialized Engineering ness to see what might be suitable to be applied. Now more broadly, in terms of E&P, one of the biggest challenges for the GCC countries is that there are many inactive wells, for many different reasons. Ageing facilities and declining productivity are also challenges. This has led our customers in the region to take a more collaborative approach; they are sharing their challenges with us.
15 The number of countries where Al Mansoori has branches
24 The number of countries where the company operates
Given the fact that there are not many indigenous oil and gas service companies in the UAE, how do Is the number of explain Al Mansoori’s sucemployees worldwide cess and longevity? Because our traditional economy was based on agriculture, fisheries, pearls, and trading, a lot of local some of the best, highly businesses founded here at trained people. It must be the start of the said that the UAE economic have done an ex“We have growth were cellent job in estabtrading comlishing the Petroa very well panies. The leum Institute. It educated advantage of works very closely Al Mansoori generation of with ADNOC and at the time its group of comEmiratis was that it panies to produce was founded who are just the graduates our by engineers. industry needs. Our technical as competent capabilities Would you considas any other er Al Mansoori gogave us a head start in workers in the ing public in the the oil and gas future? world.” business. As the stock Nowadays, markets here we have a very well educatmature and investors ed generation of Emiratis become more educated and who are just as competent knowledgeable, we might as any other worker in the see more stability in the world. In the company, we markets and it could be pride ourselves for having attractive for us.
2,000
Created in 1977, Al Mansoori Specialized Engineering is one of the few Emirati companies operating in the oil & gas sector. As a provider of oil and gas services, Al Mansoori has gained international recognition.
In what regions is Al Man- ing. Whether the low oil soori focusing its develop- price will affect exploration ment? activity remains to be seen, Our focus and priority is but when we see a new the MENA region. From market developing, we do time to time, not want to miss we get unsolicout on that. ited offers to “Inactive wells work in other With maturing oil are one of countries, fields throughout which is why the region, Enthe biggest we have some hanced Oil Reoperations in covery is becomchallenges Gabon, Congo, ing key. How are facing GCC Uganda, Kenya you positioned in and Tanzania. this area? countries” We are also Indeed, as fields looking at mature and proMadagascar. We have done ductivity rates go down, we work in Ethiopia and Soma- are going to see more EOR lia, some of the Caspian projects. We are actively countries, as well as Bangla- keeping abreast of the latest desh and Myanmar. technology in EOR as well East Africa is very promis- as other aspects of the busi-
We have ambitious plans to grow in the GCC region Aqeel Madhi, CEO of National Petroleum Construction Company (NPCC)
NPCC is the UAE’s national engineering, procurement and construction company providing EPC solutions to the offshore and onshore oil & gas sector. CEO Aqeel Madhi outlines how the company is adapting to the new environment of low oil prices, and its development objectives.
How are you responding to out inefficiencies in the the current low oil price business process. This said, we have a roenvironment? It is without doubt a major bust balance sheet and we issue and as expected, we are at full capacity for this year. In addition, have seen several large projects “Our project we are optimistic about future either shelved or projects we have cancelled. performance bidden for. AlAt NPCC, we records are though the inseek a solution in the fundamenimpressive.” dustry outlook tends to be cautals. While retious, we believe duced commodity prices have enhanced our that the working relationprice competitiveness, we ships we have developed endeavor to further en- with NOCs and IOCs in the hance the robustness of our past decades will continue project execution and im- to foster our growth prosprove our costs by weeding pects.
What differentiates NPCC from its competitors? NPCC has grown to a large, fully Integrated EPC solutions provider, acquiring assets, talent and capabilities over four decades of executing challenging work in the region. The project performance records are impressive, irrespective of working in collaborations or as a single entity. Very few companies can boast of yard capabilities spanning over one million square meters of seafront land and a fleet of 22 fully owned vessels. We lay great emphasis on creating an employee-friendly and safe environment. Most of our employees have been with us for over two decades. This ensures continuity of experience and fosters loyalty. We provide “One Stop Solutions” for O&G Projects both on the upstream and downstream sectors. We continuously work to develop strategic partnerships with local contractors, vendors, fabricators and service providers. Our recent projects have successfully demonstrated how we can build on our core set of skills and capabilities. What are you doing to increase your market share in the region? We have ambitious plans to grow in the GCC region. We are expanding our client base by offering quality services driven by cost efficiencies. There are plans to acquire technology through
22 It is the number of vessels fully owned by NPCC
9,000 The number of employees at NPCC
1 billion dollars
Is the total amount of investment made by NPCC in the past few years collaborations and the M&A route, so that we service niche markets such as EOR and Deepwater. At the same time we continue to exceed the expectations of our existing customers through the time-tested principles of safety, quality and timely delivery. We have invested over a billion dollar in the past few years with the main objective of strategically positioning NPCC to capitalize on targeted opportunities. Further efforts were also directed towards enhancing internal capabilities through a combination of organic and inorganic activities. Another major asset is our multicultural workforce in excess of 9,000 employees.
Maersk Oil, keen to export its technical know-how to Abu Dhabi
Statoil’s experience with mature fields offers value to Abu Dhabi
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ast year Statoil opened an improved oil recovery (IOR) center in Trondheim, Norway, one of the largest of its kind in the world. For countries working with mature fields, improved oil recovery (IOR) and enhanced oil recovery (EOR) are vital. “In Norway, Statoil has achieved over 70% recovery rate in some of the country’s oldest producing reservoirs,” said Mr. Neri Askland, Statoil’s Middle East VP and Abu Dhabi Country Manager. “This is achieved through systemically working closely with contractors and production data, applying new technologies, and implementing and monitoring EOR techniques,” he said. Because of this experience with processes and technology, Statoil is in a strategic position vis-à-vis Abu Dhabi where oil and gas fields are mature and demand EOR expertise. “In addition, Statoil has much experience with CO2 capture and storage, which is relevant
“IOR and EOR are key for countries and companies working with mature resources.” Neri Askland, Statoil’s VP Middle East & Country Manager Abu Dhabi
if a CO2 for EOR strategy is applied in the Middle East,” Askland said, adding that the company also has a track record in biologically sensitive areas. Now that the Mongstad project in Norway has been completed, Statoil is in a position to offer that expertise to Abu Dhabi and is keen to work in the region. As Askland explained, “ADNOC is already deploying CO2 for EOR, which is an important project to follow. Statoil has extensive experience dealing with the CO2 value chain and we are ready to share any relevant learning with Abu Dhabi.”
aersk Oil produces oil from the Danish and UK sectors of the North Sea, Algeria, Kazakhstan and the US Gulf of Mexico. The Middle East is a key region for Maersk Oil, with Qatar contributing an important part of the company’s global production. Exploration and development projects are also underway in Kurdistan. To build on this, Maersk Oil is interested in extending its offshore activities in Abu Dhabi. “Qatar represents close to half of our global production, so the fact that there are potential opportunities for us to secure field development and production projects in Abu Dhabi, where we could deploy our core competencies in developing these difficult and complex carbonate reservoirs, would be a compelling reason to focus on business development here,” said Richard Doidge, who heads Maersk Oil’s business development activities in Abu Dhabi. Maersk Oil could potentially fit into the Abu Dhabi joint operating model, since IOC partners with niche expertise
Maersk Oil Qatar (MOQ), operator of Qatar’s largest offshore oil field - Al Shaheen
are being asked by ADNOC to serve as lead technical advisors on specific assets. “Traditionally, we are a company that has been very technically focused,” Doidge said. “We are good at identifying the right technology for the best technical challenge in terms of reservoir development, deploying and optimization.” He is confident that Maersk Oil’s experience from the Al Shaheen Field in Qatar is exportable to Abu Dhabi which lies in the same geological basin with similar reservoirs. “We have pushed the limits of horizontal well technology, not just to maximize recovery and production, but to drive down corresponding per-barrel costs,” Doidge explained. To show its long-term commitment to the region, Maersk Oil established an office in Abu Dhabi in 2011 and has been developing its relationship with ADNOC. “We believe that the potential opportunities arising from the eventual offshore relicensing could be a good match to our core competencies. We hope that ADNOC understands this,” said Doidge.
NPCC, a world class EPC company provides total EPC solutions to both Offshore and Onshore in the Oil & Gas sector. With headquarters in Abu Dhabi, NPCC operates in the Arabian Gulf, South Asia and South East Asia, and has plans to expand its operations to Africa and the Caspian region. NPCC with its state-of-the-art fabrication facilities in Mussafah, Abu Dhabi spreads over an area of 1.3 million sq. meters. NPCC has the capacity to fabricate up to 100,000 MT of structural steel every year.
We are good at identifying and deploying the right technology Richard Doidge, Head of Maersk Oil’s business development in the Middle East “We have been developing our relationship with Abu Dhabi National Oil Company here for some time. Setting up an office in Abu Dhabi in 2011 was an important part of showing our longterm commitment.”
Denmark’s Maersk Oil is present in Qatar since 1992, where it has been developing the Al Shaheen field. The company is now ready to invest in new projects.
What would the UAE add reservoirs, is a compelling reason to focus on business to Maersk Oil’s portfolio? Qatar represents almost development here. Traditionally, half of our globMaersk Oil is al production “We have very technically so it is an improduced over focused. We are portant part of 1.4 billion good at identiour portfolio. fying the right Now the fact barrels from technology for that there are potential op- the Al Shaheen the right technical challenge in portunities for field, with a terms of reserus to secure cumulative voir developfield developinvestment of ment and then ment and production projmore than $9 deploying and optimizing that ects in Abu billion.” technology. Dhabi, where In Qatar, we we could deploy our core competencies have developed the Al Shain developing these diffi- heen field since 1992, which cult and complex carbonate is now a major producing
asset at some 300,000 barrels per day. In total, we have produced over 1.4 billion barrels from this field, with a cumulative investment of more than $9 billion. This is the kind of experience and expertise we can offer Abu Dhabi. For example, there is scope for some reservoirs within the major fields to be more optimally developed, as well as some of the smaller fields and discoveries. Our technical niche lies in being able to tackle the kind of reservoirs and fields that are considered more marginal, and turning them into commercial success stories. How is the current slump in oil prices affecting Maersk’s R&D? We have pushed the limits of horizontal well technology, not just to maximize recovery and production, but also to drive down corresponding per barrel development costs. For example, by de-
veloping the Al Shaheen field with ultra-long horizontal wells, we have managed to limit the number of wells, and the number of wellhead platforms. In Doha, Qatar, we are investing $100 million over 10 years in the Maersk Oil Research & Technology Centre, with particular emphasis on well technology, Enhanced Oil Recovery, and the offshore environment and habitat of the Arabian Gulf. All this is in partnership with Qatar Petroleum, and focused on technological and environmental developments that can enhance success and sustainability. This characterizes the way we work: being a long-term partner and a responsible corporate citizen. We believe this is another important aspect that we can bring to the UAE. We have been developing our relationship with Abu Dhabi National Oil Company (ADNOC) here for some time. Setting up an office in Abu Dhabi in 2011 was an important part of showing our long-term commitment. We have been doing a lot to make sure that ADNOC and other important stakeholders here understand who we are, what we have done, how we have done it, why we are different, and how we could partner here to do something similar. Eventually we hope that all of this will come together to translate into real business opportunities for us.
We can bring to the UAE our experience and technology Neri Askland, Vice-President Middle East & Country Manager of Abu Dhabi at Statoil
One of the most prominent oil companies in the world specialized in off shore, Norway’s Statoil is ready to invest in the UAE.
What advantages do you strong experience in CO2 bring to the UAE as a new capture and storage. Also, some countries have reentrant? The Middle East is a vast sources situated in biologically sensitive resource base areas and Statoil but gradually, “Statoil has has a long expeproducing here developed rience in this will be more defield. Other manding and a careful countries are more technology short of free gas, will be needed to approach to and alternative ensure maxipreserve the gas value chains mum recovery. and energy mixStatoil has a environment.” es are needed. strong track reStatoil has also a cord in IOR (Increased Oil Recovery) and track record in establishing we can bring here our ex- such value chains. The UAE will balance our perience, processes and offshore portfolio. We are technology. In addition, Statoil has a looking to establish a long
term, strategic partnership nental Shelf has some of with Abu Dhabi. The Midthe strictest frame condidle East holds tions in the “We are some of the lowworld. As the est cost per barlargest operator leaders in rel resources in in Norway, Stathe world, which technologies toil has develmeans the reoped a careful that improve approach to engion can resist the slump in oil sure no harm is the capture prices. Abu Dhamade to the enbi is a stable and storage of vironment. We country for inhave also develCO2.” vestors, and it oped technolocan contribute to gies for environstrengthening our portfolio mental monitoring, and we against geopolitical risk are leading in technologies that improve the capture fluctuations in oil prices. and storage of CO2. Carbon Capture Storage What are Statoil’s main (CCS) is one of the most achievements in EOR? important technologies in IOR and EOR are of utthe efforts to reduce carbon most importance for counemissions. Our experience tries and companies workat Mongstad shows that it ing with mature resources. is necessary to further deIn Norway, Statoil has velop this technology and achieved recovery rates of reduce costs. over 70% in some of its oldThe Abu Dhabi National est producing reservoirs. Oil Company (ADNOC) is Statoil is a technology already deploying CO2 for driven energy company. We spend 50% of our R&D EOR, a very interesting funds on R&D and 50% and important project. Stathrough contractors and toil has a long experience suppliers. Statoil believes in in dealing with the CO2 a joint effort with suppliers value chain and we are and partners in developing ready to share any relevant the best technology to insight with Abu Dhabi. achieve ultimate recovery. The UAE will have to comOur technology encompete for capital with many passes the whole oil and other Statoil projects gas industry value chain around the world. Why infrom subsurface to transvest here? portation technologies. Abu Dhabi represents a stable country for invesHow does Statoil’s use tors, and I believe it can technology and procecontribute to strengthening dures formanaging enviour portfolio towards georonmentally sensitive oil political risk as well as crefields? ating economic robustness The Norwegian Contiincluding oil price.
Petrochemical sector buoys UAE oil industry Low oil prices put pressure on the industry to grow petrochemical sector
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hanks to its location, which gives the UAE access to the Middle East, Africa and Asia, its established ties to Europe and East Asia, and its substantial reserves of oil and gas, the petrochemicals industry is the manufacturing segment in which Abu Dhabi has the most apparent competitive advantages. It is not surprising then that it has become one of the most important drivers of economic diversification for the country. The availability of expertise and advanced technology means that the country’s petrochemical company, Borouge, continues to be a key player despite the region’s changing landscape. Established in 1998, Borouge grew its capacity by 700% in the period from 2010 to 2014 and is expanding its markets for polyolefin products, particularly in the Middle East, where there is a demand for infrastructure materials such as industrial piping, wire and cable systems. To meet growing demand in the Middle East and Asia, Borouge has expanded its plant to create an additional 350,000 tons per year of low-density polyethylene. Working with Borealis in Sweden, the company produces highly specialized and super clean products for the wire and cable industry in order to retain its market leader position. “With Borstar® and the Borlink™ Supercure technology, the product range of both companies is able to meet the industry’s most stringent needs,” said Abdulaziz Alhajri, CEO of Abu Dhabi Polymers Company, a subsidiary of Borouge. Ali Vezvaei, President of Linde AG Engineering for the MENA region, agrees that Borouge’s plant offers key advantages to the sector due to its economies of scale and progressive technology. Abu Dhabi’s Borouge 3, the world’s largest gas-based ethylene cracker, is a solid pillar within Linde’s engineering portfolio, one that has become a benchmark in the industry for safety thanks to Linde’s in-house technologies. As the world’s biggest industrial gas company with a history that goes back almost 140 years and a dedicated technology arm, Linde Engineering is a key player in Abu Dhabi’s petrochemical sector. “In the petrochemical sector, our story goes beyond building complex plants. We are also focused on developing innovative solutions in view of regional super trends like natural gas availability and feed stock flexibility. Our efforts in Borouge have been focused on developing commercially viable solutions to allow the much needed regional growth and job
creation to continue despite of the gas crunch,” Vezvaei said. Because of Linde’s experience in Europe, the company offers the region key expertise to sustain profitability and efficiency. “Linde has had decades of experience not only in design and execution of technologies but also in enhancement and optimization of the process around it so clients have a better return on “We are focused on investment and an optimized developing much needed regional growth despite product slate. Linde’s innovative the gas crunch.” solution, “Value-Cracking,” is Ali Vezvaei focused on the streams and the President Middle East & process, to optimize the value North Africa, Linde chain from molecules to money.” Moving forward Vezvaei believes that the sector’s competitiveness depends on how technology is used. Linde is innovating to meet the challenges of the new petrochemical landscape by implementing a target of “operational excellence” along with a “different level of performance indicators such as energy efficiency and sustainability,” Vezvaei said. Along with decreasing feedstock, the region faces another challenge as more global petrochemical production moves to the US in the wake of the trend towards shale gas where the “shale revolution” has stimulated a tremendous production of oil and natural gas. Advances in oil and natural gas production technology, such as hydraulic fracturing, are fueling this revolution. Alhajri is confident that Borouge’s three world-scale ethane crackers in Ruwais, which can “process ethane and turn it into ethylene in a very competitive and cost effective way,” will allow the region to retain its market leader share. There is no question that the petrochemical landscape is changing, but Abu Dhabi is meeting those challenges head-on with a proactive policy of technological innovation, efficiency and sustainability, policies that will not only benefit the UAE but are setting standards worldwide.
Borouge: renowned for housing the world’s largest ethane crackers in Ruwais, Abu Dhabi
Taking hospitality to the next level
Luxury hoteliers in Abu Dhabi rise to the challenge of serving ADIPEC
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s the Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC) is set to open on 9 November, the emirate is getting ready to welcome some 85,000 conference goers. Hosted by the Abu Dhabi National Oil Company (ADNOC), the show will also gather 7,000 delegates and 2,000 exhibitors from more than 120 countries. This type of global event and others have made of Abu Dhabi a prime destination for MICE (meetings, incentives, conferencing, exhibition) tourism. But the emirate is also developing tourism as a whole, although with a different view from its glitzy neighbor, Dubai. Here, visitors are invited to taste the proverbial Arabian hospitality and discover a city that, although dotted with skyscrapers, has kept and enhanced its heritage. “Shangri-La is about Dubbed ‘The Arabian Jewel’, Abu luxury but also about Dhabi is a discreetly spectacular city that engaging with our combines the grandeur of monuments guests straight from our hearts.” such as the immaculate Sheikh Zayed Mosque, one of the largest in the world THOMAS GUSS General Manager with a capacity of 40,000, the much Shangri-La Hotel talked about Saadiyat cultural island, Qaryat Al Beri which will host the Louvre Abu Dhabi Abu Dhabi and the Guggenheim, currently under construction, but also the Abu Dhabi Heritage Village, which recreates the pearling village it used to be up until the 1970s. With the rise of Abu Dhabi as a tourism destination, combined with the expansion of the international airport and the growth of the national Etihad airline, the hospitality sector is thriving. The number of hotel guests for the first four months of 2015 was up by 20% compared to last year, according to the Abu Dhabi Tourism and Culture Authority, which expects the total number to reach 3.9 million this year.
Sheikh Zayed grand mosque seen from Shangri-La Hotel Qaryat Al Beri
This upward trend has spurred home grown hotel chains such as Jannah Hotels & Resorts, which owns three hotels in Abu Dhabi and two in Dubai. Meaning both ‘paradise’ and ‘garden’ in Arabic, Jannah offers its guests the genuine Arabian hospitality. “Bedouin hospitality is the very soul of Jannah Hotels & Resorts,” says CEO Nehme Imad Darwiche, adding that he has learned “the best lesson in hospitality while staying with the noble Bedouins of the Liwa Desert in the Empty Quarter.” A similar notion of genuine, heartfelt hospitality is put forward by the General Manager of one of Abu Dhabi’s finest hotels, the Shangri-La hotel Qaryat Al Beri. “Shangri-La is about luxury and only few can claim this. But beyond, there is also a notion of sincerity and humility. The atmosphere here is about creating a serene environment for our guests, and engaging with them straight from our heart,” explains Thomas Guss, General Manager of Shangri-La hotel, Qaryat Al Beri, Abu Dhabi. But all the words are not enough to describe Bedouin hospitality, or karam. It has been for centuries one of the pillars of life here. And you just have to live it to believe it.
Shangri-La philosophy sets new standards
Top chef delight
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e all have an inner Shangri-La, don’t we? A heavenly place where life unfolds happily and peacefully, forever youthful. Few know that this mythical place situated somewhere in the Himalayas comes from a 1930s novel, Lost Horizon, by British author James Hilton. The name was chosen by the hotel chain for its first luxury hotel in Singapore, in 1971. Since then, it has become synonymous with utmost luxury. But not the
bling type, rather the most refined, discreet and elegant one. Today, Hong Kong-based Shangri-La Hotels and Resorts is Asia Pacific’s leading luxury hotel group (over 38,000 rooms in total), regarded as one of the world’s finest hotel management companies.
his is the final touch that confirms Abu Dhabi’s rise as a top tourism destination: world-class gastronomy. One of the most brilliant chefs in the world, Spain’s wunderkind Sergi Arola (two Michelin stars), recently opened his own tapas restaurant at the former Pearls & Caviar at the ShangriLa, now named P&C by Sergi Arola. “It will be a sharing menu – tapas and variations on paella with different kinds of rice. The food will be rich in flavor and quality. I have taken my favorite
dishes from across the world to create the menu,” he recently declared in an interview with the local press. The restaurant P&C by Sergi Arola at ShangriLa Qaryat Al Beri, Abu Dhabi, is the Spanish chef’s first venture in the Middle East.