The Best Energy, Chemical, Petroleum Stories of 2018: GineersNow Oil & Gas Leaders magazine

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o far, the challenges in the oil and gas industry are tremendously ablaze. As stringent environmental standards are continuously upgraded through the years, the industry might be leaning towards losing its luster in the energy industry.

However, the oil and gas leaders never cease to look for ways to be compliant and competent at the same time.

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Embracing change is never easy. It requires massive efforts to be able to face the adversities and meet global expectations. But looking at how the OGL leaders dealt with the pressure of reducing costs, limiting environmental footprint and optimizing the performance of their companies serves as an inspiration to those who are not ready to commit into sustainability.

Today, we will do a recap of the individuals in the field who did not resist change but rather took it as an opportunity to improve their products and services and become an ally in achieving a sustainable future for the oil and gas industry.

In February, we learned the story of Ronan Le Gloahec, Regional Managing Director for EMEA Weir Oil & Gas, and how the company is thriving despite the prolonged downturn in the energy industry as well as its commitment to digitization and operational excellence.

Meanwhile, we also looked into the leadership of David Reid, the Chief Marketing Officer of National Oilwell Varco (NOV), and how the company built a system that could be expanded to permeate the entire oil field and deal with delivery capacity challenges in a market with very little to offer in spare finances.

Looking back at what these individuals, companies, and organizations have done to empower the sector and remain steadfast in providing the best solutions for the global market.

2018

A Year of Grit and Resilience for Oil and Gas Leaders Donal J. Dempsey, General Manager of Oil & Gas in SNC-Lavalin, is our cover for the April issue. He shared how the company established itself in the Middle East for over 40 years, successfully delivering first-class projects across oil and gas, mining and metallurgy, infrastructure and power industries. Meanwhile, Jurgen Joman, Director of Mazrui Energy Services talked about how the company’s cross- synergies among five operating companies provide a very strong brand with a very strong service offering.

The June and July issue gave us Jens Winkelmann, the Managing Director of Endress+Hauser (UAE) LLC and Jeff Householder President of Emerson’s Automation Solutions MEA. Winkelmann talked about his leadership style and how the company always maintained a diversified approach towards different industry sectors which has enabled it to manage instabilities in the market. On the other hand, Householder tackled the success of the company in providing automation technologies, software and consulting services to help customers operate their facilities safely, reliably and profitably.

In August, Dr. Pierce Riemer, the Director General & CEO of World Petroleum Council, graced our front cover and tackled some very important issues such as the challenges in the petroleum industry, the future of fossil fuels, and the latest disruptive technologies in the field. The following month, Wafik Beydoun, the Chairman of the Board of Offshore Technology Conference, tackled how the conference developed a community of diverse ideas for a united

goal of making strategies and opportunities for oil and gas industry, business, and organizations.

For the remaining months, we didn’t miss the chance to feature Abdulwahab Al-Sadoun, Secretary General of Gulf Petrochemicals and Chemicals Association and talk about the power of Robotics in the energy sector. Al-Sadoun tackles the commitment of the organization to minimizing energy and resource consumption by practicing the principle of maximizing the value and utility of materials over their life cycle and keeping them inside the value chain for as long as possible. Meanwhile, the November issue revealed the Robots, as a multi-faceted technology, can become a permanent solution to the ever-changing needs and increasing demands of this generation.

Looking back at what these individuals, companies, and organizations have done to empower the sector and remain steadfast in providing the best solutions for the global market. We can absolutely expect more innovations in the coming years as Oil ang Gas leaders continue to stay true to their respective missions and align their goals towards sustainability.

Robert Bagatsing EDITOR

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Opportunity in the EMEA Region through End-to-End Partnership Opportunity in the EMEA Region

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through End-to-End Partnership

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The Current State of Fuel According to the World Petroleum Council

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OTC: Celebrating 50 years of Success

NOV: The Strong and Silent Disruptor The Untold Story of National Oilwell Varco

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The Success Story of SNC Lavalin

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Legacy rotating equipment in the EMEA region is often more than 30 years old, requiring significant attention to prevent downtime and protect profit margins.

The prolonged downturn in the energy industry Undisclosed Potential: on Howprofit Mazrui margins, has placed greater pressure Energy Services Is Meeting the forcing companies to re-examine operations in an Needs of Today's effort to create efficiencies and Society gain a competitive advantage wherever they can. To be sure, while prices and margins have decreased, the need to meet the world’s energy demand remains the same, if not increased, with worldwide population growth.

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Endress+Hauser: A Success Story

It is no surprise that we all have to work smarter, and harder. The good news is that technology innovation, streamlined manufacturing, and

Oil & Gas Leaders • February 2018

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Emerson: An Engineering Success Story

GCC Chemical Industry's Contribution to Sustainability and Circular Economy

sound process as well as product engineering and design are helping to alleviate the challenges many energy producers face.

In the EMEA region this certainly holds true. In fact, it is compounded for a variety of sectors that have significant resources invested in legacy equipment that is essential to their operations. Legacy rotating equipment such as pumps, compressors, and turbines can often be more than 30 years old and present significant challenges to protecting profit margins while balancing operational needs.

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Opportunity in the EMEA Region through End-to-End Partnership

Legacy rotating equipment in the EMEA region is often more than 30 years old, requiring significant attention to prevent downtime and protect profit margins.

The prolonged downturn in the energy industry has placed greater pressure on profit margins, forcing companies to re-examine operations in an effort to create efficiencies and gain a competitive advantage wherever they can. To be sure, while prices and margins have decreased, the need to meet the world’s energy demand remains the same, if not increased, with worldwide population growth.

It is no surprise that we all have to work smarter, and harder. The good news is that technology innovation, streamlined manufacturing, and

Oil & Gas Leaders • February 2018

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sound process as well as product engineering and design are helping to alleviate the challenges many energy producers face.

In the EMEA region this certainly holds true. In fact, it is compounded for a variety of sectors that have significant resources invested in legacy equipment that is essential to their operations. Legacy rotating equipment such as pumps, compressors, and turbines can often be more than 30 years old and present significant challenges to protecting profit margins while balancing operational needs.

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With the acquisition of KOP, Weir Oil & Gas has extended its reach to the Asia-Pacific region and offers an expanded suite of pressure control solutions for operators across the globe.

With a 146-year-history of creating global solutions, Weir Oil & Gas is undaunted by the complexities these challenging times create. Weir’s history in the Middle East began with the first desalination plant in Egypt in 1884. Since then, Weir has expanded its reach and localized skilled resources in locations throughout the EMEA Region to serve its customer base.

Weir’s presence in locations throughout the EMEA Region serves operators working

in the region. Weir is truly a global enterprise. With more than 14,000 employees in 70 countries, Weir is a trusted source of Original Equipment Manufacturing (OEM), Operations & Maintenance (O&M), and Services—all backed by superior engineering expertise. This end-to-end capability makes a tremendous difference in the ability to positively impact customers’ operations Total Cost of Ownership.

The company provides client-specific engineered processes and equipment, supporting services and spare parts and offers longterm service agreements to eastern hemisphere energy and petrochemical companies through its 10 supporting Center of Engineering and Manufacturing Excellence (CEMEs) in the United Arab Emirates, the Kingdom of Saudi Arabia, Iraq, Azerbaijan and several across Europe.

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Weir’s ability to perform rebuilds can yield a 30 percent reduction in CAPEX costs when compared with purchasing new equipment.

A few milestones include providing 295 Seaboard™ wellheads, representing 11 different wellhead configurations ranging from 3,000 to 10,000 PSI, to Kuwait Oil Company; providing managed services solutions to one of the worlds largest producers of crude oil located in the Republic of Iraq; opening the first wellhead manufacturing facility in Dubai’s Jebel Ali Free Zone, and more.

Since taking the helm in April 2017, Weir’s new regional managing director for EMEA, Ronan Le Gloahec, has visited Weir’s manufacturing, engineering and service centers across the Middle East, Europe and Caspian region and sees significant opportunities to help operators achieve greater profitability and efficiency in 2018 and beyond.

“From the rig to the grid, and points in between, we provide integrated solutions that are backed by world-class people and facilities,” recalled Le Gloahec. “Our engineered technology offering encompasses wellheads, Christmas trees and Oil & Gas Leaders • February 2018

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frac trees, API valves, BOP control systems and pressure control and production manifolds. We also have a wide service offering that includes the inspection and repair of pressure control equipment including BOPs, OCTG threading and repair, rotating equipment engineering, repair and high grading services; asset management programs; long term operation & maintenance opportunities; re-engineered parts through advanced parts solutions. Last but not least, Weir provides consulting services for workshop management and knowledge transfer structured management programs.”

Weir’s capability to complete rebuilds and reengineer legacy custom and standard equipment is a valuable resource to EMEA companies.

Weir is a recognized and trusted alternative to costly new CAPEX programs for offering Asset Life Extension services and products. Due to the age of legacy equipment, the OEM often no longer exists and neither parts nor drawings are available. Weir’s ability to perform rebuilds often results in a 30 percent reduction over the cost to purchase new equipment. CAPEX avoidance

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Weir Oil & Gas supports clients from the rig to the refinery to the grid with comprehensive Operations and Maintenance programs backed by robust engineering expertise, local service facilities, in-house repair capabilities and ample parts inventories.

Weir’s RFID technology allows up to 1,000 assets to be accounted for in minutes using a proprietary RFID app.

secured through highly engineered processes and products represents a very attractive proposition for a growing customer base across the region and neighboring countries.

But it doesn’t stop there. Weir is also committed to optimizing energy extraction and production operations through a number of initiatives that focus on greater safety, efficiency, productivity, equipment longevity, and lower total cost of ownership. Digitization and innovation are pivotal to Weir’s success and its ability to help its customers realize their goals.

Additionally, Weir is the only company of its kind to offer on-site company-specific customized training programs and in-depth workshops to ensure technicians are properly trained to the full breadth of mechanical rotating equipment: compressors, gear boxes, rotating equipment and pumps. This is especially advantageous in nations where access to experienced and highly trained technicians is limited. Weir created a new one-of-kind 4,000 square meter workshop in Quarn Alam in Oman, which is unique to the

industry. Weir’s training brings Western standards to a traditional apprentice model, with an approach that is 80 percent hands-on experience and 20 percent classroom work as part of a three to five year program.

Weir’s culture underpins its innovative product and service offerings. Look no further than its Radio Frequency Identification (RFID) technology and RFID Mobile App as further proof.

Before Weir’s SPM® Radio Frequency Identification (RFID) technology and RFID Mobile App, maintaining an iron fleet was an error-prone, archaic process that relied on manual data collection.

Now, customers can register each asset by serial number in seconds, which allows up to 1,000 assets to be accounted for in minutes versus hours. This proprietary RFID Mobile App supports and speeds testing and inspection processes by identifying assets by serial number, allowing personnel to perform an inventory of parts and instantly recall the last certificate filed Oil & Gas Leaders • February 2018

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Weir Oil & Gas serves as a champion of the highest health, safety, environment and service excellence standards with a commitment to respect, harmony, entrepreneurship, innovation and empowerment.

and organize the iron in the database based on its assigned unit. The technology seamlessly works with not only Weir equipment but other manufacturers’ equipment.

Other new technologies from Weir include the Mudline Suspension System, which enables operators to run casing at deeper depths. It eliminates debris traps and improves reliability as well as efficiency of tieback operations in offshore operations. It also offers a method of disconnect for all casing strings, allowing the temporary abandonment of a well in a minimum amount of time and without having to cut casings. Casing strings can be easily reconnected for surface completion on a production platform wellhead deck.

Global technological advancements from Weir also demonstrate its commitment to digitization and operational excellence. Weir’s new Pressure Control Intelligent Systems for managedpressure drilling (MPD) and flowback operations Oil & Gas Leaders • February 2018

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digitizes and automates accurate real-time measurements and controls from unique points across the entire operation, transmitted from equipment sensors to a central control unit. The company’s new Simplified Frac Iron System reduces non-productive time through a ‘less-is-more’ approach, radically reducing the site footprint and amount of iron required for fracturing operations and replacing multiple iron strings, numerous turns and connections found in traditional configurations with a safer, straighter, more streamlined large-bore design.

Weir is positioned for greater growth in the EMEA due to four key areas of focus. “We focus on providing mission critical solutions so that we become a vital partner in our customers’ success, designing highly engineered equipment that satisfies the most challenging conditions, an intensive aftermarket care program to ensure reliable operations for high-wear applications, and comprehensive global support to be everywhere our customers are,” Le Gloahec said.

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BEST STORIES OF 2018

“At Weir, our culture is one of ensuring operational excellence – across all our businesses and in all the regions we operate.

My mandate, in support of that culture, is to first and foremost lead the company in a highly efficient manner, serving as a champion of the highest health, safety, environment and service excellence standards,” explained Le Gloahec.

Supporting an environment that promotes respect for one another, multi-cultural, race and gender harmony, entrepreneurship, innovation and empowerment is a priority for Le Gloahec.

This type of culture helps to continue to strategically position Weir, together with the executive team, to operate as a lean organization that is agile enough to respond to the needs of the business’ ebbs and flows.

To better communicate how Weir can improve a company’s performance, Weir unveiled new positioning during ADIPEC 2017.

“The repositioning serves a distinct purpose,” commented Le Gloahec. “Our roots in the EMEA region go back to 1884, when Weir was involved

in the construction of the very first desalination plant in Egypt followed by the first pipeline project in modern-day Iran in 1912. We have achieved many milestones and gone through many changes since then. This positioning will help our energy sector customers and partners have a greater understanding of how we can reduce their Total Cost of Ownership through our combined engineering, manufacturing and aftermarket services expertise from rig to refinery to the grid.”

Even though the market is cyclical, Weir has demonstrated it is well positioned to weather such fluctuations.

During the downturn, Weir responded by investing more in R&D and in July 2017, the company acquired KOP Surface Products, a provider of advanced pressure control wellhead technologies, systems and services – including wellheads, surface trees, valves, actuators and aftermarket services – extending its reach in the Asia Pacific region. With the KOP acquisition, Weir acquired business locations in Singapore

Weir’s Pressure Control Intelligent Systems digitally enable accurate real-time measurements and controls for managed-pressure drilling and flowback operations.

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BEST STORIES OF 2018

Weir Oil & Gas leverages wide-ranging engineering expertise to manufacture, service, and support clients with 10 Centers of Engineering and Manufacturing Excellence across the EMEA region.

and a manufacturing facility in Batam, Indonesia, in addition to a network of sales and service offices in Malaysia, Thailand, Vietnam, Qatar, UAE, Saudi Arabia and India.

This acquisition solidified Weir’s position in the region and complements its existing manufacturing facilities global footprint.

KOP has a long history and a market leading position in Southeast Asia with an emerging market in the Middle East. It is truly complementary to Weir’s solutions portfolio.

Leveraging on a dominant operations and global maintenance service contract base combined with a unique Pressure Control OEM and Rotating Equipment Engineering capacity and capabilities Weir is poised to be a leading resource for EMEA energy producers seeking to enhance their operational efficiency and profitability.

Oil & Gas Leaders • February 2018

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Le Gloahec’s outlook for the oil and gas industry in 2018 sees distinct opportunities.

“If this downturn has done anything, it has made the industry more competitive and forced the whole supply chain to find ways to be more efficient. Our continued R&D investments have been focused on developing technologies and services that help our customers be more efficient so that as the market turns we come out stronger together,” Le Gloahec said.

“Additionally, in some of our service lines and for those we support out of the Dubai, Kingdom of Saudi Arabia and Iraq CEMEs, Weir is aligned to the low end of the cost curve, such as for the Middle East Conventionals, specifically.

Finally, we further support our EMEA customer base with the only In Country state-of-theart Advanced Pressure Control Equipment manufacturing and Rotating Equipment Engineering services plant in Dubai, UAE”.

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Ronan Le Gloahec Regional Managing Director for EMEA Weir Oil & Gas

BEST STORIES OF 2018

NOV: The Strong and Silent Disruptor The Untold Story of National Oilwell Varco

The Company National Oilwell Varco (NOV) is a collection of the strongest brands in oil and gas with different backgrounds and a common culture of building solutions around equipment and services. The oilfield has been a story of businesses and brands who invented at their own risk, trying to solve the complex work of finding hydrocarbons deep in the earth’s crust. As great invention led to great solutions, single brands became the cornerstone of the industry.

We had to drill to deeper well depths, learn how to drill and produce offshore, drill at angles and turn corners to reach further with more difficult drilling, and drill from single structures offshore into 10

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larger reservoirs, in harsher environments. We pioneered technology to get more flow, break rock further, and develop more precise horizontal drilling, which opened a whole new resource within shales. Each event had one core theme: a small company successfully broke through to find great success and, becoming a victim of their own success, created more supply, enabling wild swings in hydrocarbon commodity price and availability.

Through a consolidation of suppliers and building on the innovative and healthy businesses developed through the upcycles and downcycles, NOV has emerged as the backbone of the industry. NOV learned to use the cycles to

build strength, invest in focused acquisitions, and target critical integration-based strategies.

The turning point came with breakthrough inventions across the drilling process and the merger of the three strong brands. First National and Oilwell, who bought out their

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owners and turned a corner of underinvestment to begin acquiring the strongest structural, technology, and equipment production brands in the business—one of whom was a Norwegian entrepreneur who created a stir with integrated digitization in 1994 using his Cyberbase system, which drilled from an oil show to a local drilling rig. National Oilwell purchased them, adding a project capability with some niche pipe-handling

equipment and new mud pump and drawworks designs to their core. Already having the power brands for pumps and drawworks, this put them in the core of new rig design. At the same time another leader emerged from the 80s and 90s with the invention of a groundbreaking top drive technology that had enabled extendedreach drilling. The inventor of the top drive within the emerging technology company had Oil & Gas Leaders • March 2018

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also brought iron roughnecks and pipe-handling robots to the industry. This emerging Varco brand moved aggressively to purchase instrumentation powerhouses Martin-Decker and Totco, quickly followed by a bold acquisition of a struggling, underfunded industry brand, Shaffer, which Varco invested heavily in over time, creating a new breakthrough in blowout preventer (BOP) design.

The Shaffer move was one of the largest turnarounds in oilfield history, breaking the power hold of the previous leaders, GE (Hydril) and Schlumberger (Cameron) over 20 years of transition to a technically dominant position. With both parties acquiring several key investments in top brands for power (Ross Hill), structures (Dreco), cranes (AMClyde, Hydralift), and solids control (Brandt), the Shaffer strategy continued a path that, upon merger in 2005, enabled the emerging NOV to solve the persistent design and rig packaging challenges—late and overbudget newbuilds—by providing a technically leading and powerful integrated solution that was delivered on time and on budget. Others are still trying to catch up with the move. The unbeatable secret to the acquisition strategy is the agility created by keeping the powerful product culture and small company feel with big company benefit. Other corporations copied the strategy but missed the key element—the freedom to operate and run your business around the people.

NOV reinvested in their businesses, keeping a healthy balance sheet to be ready for a downturn, and the company strategically pivoted towards 12

Oil & Gas Leaders • March 2018

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advanced software technologies to harness the value of emerging standardized NOV products and packages. In 2014, NOV divided into three segments to better weather the coming downturn. The segments cover the whole process of equipment and systems in the upstream development and delivery of hydrocarbons: Rig Technologies, which encompasses the original integration described above offering all forms of drilling rigs; Wellbore Technologies, which contains the tools and systems used to excavate a well; and Completion & Production Solutions, which houses the company’s well completions, stimulation, and production systems.

NOV continues to develop new technologies in performance upgrades for drilling rigs, including technologies for BOPs that have extended life through simplification, removal of installation risk, and a system that predicts equipment failures weeks before they occur. NOV has also developed the industry’s first lowcost simple add-on operating system to drilling rigs that provides app-based connection for all third parties to drive and influence a fully automated drilling system.

Although others are attempting to mimic and catch up, NOV’s long-term strategy is just too far ahead; the company has worked with over 100 active engineers across experts from NASA, Boston-based think tanks, and Silicon Valley among the start-up power team.

Investing in a state-of-the-art test rig has put NOV out ahead again. Continuous research and development has yielded a system that brings a true plug-and-play experience into being, a system designed for offshore rigs and complicated pipe-handling and AI functions, but priced to function in low-cost shale environments.

Anticipating difficult times, NOV built a system that could be expanded to permeate the entire oil field, and is already dealing with delivery capacity challenges in a market with very little to offer in spare finances.

In the Wellbore Technologies segment, another key investment was wired drill pipe. Providing broadbandlike communications up and down the entire drillstring, wired drill pipe offers unparalleled visibility. Tools that allow measurement of downhole variables work in tandem with the wired pipe, providing new levels of detail, in real time, on what’s really happening downhole and allowing operators to act before issues even occur. Large companies that bet on their technological advances are in the process of being disrupted by our development, as the autonomous system communicates the work of drilling the well, Oil & Gas Leaders • March 2018

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INTELLIGENT SOLUTIONS FOR WASTEWATER NETWORKS Increasing urbanisation and environmental awareness makes the efficient and reliable collection and transport of wastewater increasingly important. To meet this need, Grundfos supplies wastewater pumps and equipment with market leading efficiency, and intelligent control and monitoring solutions that enable full optimisation of pumping systems.

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AT THE HEART OF GRUNDFOS ISOLUTIONS IS OUR DEDICATED WASTEWATER CONTROLLER In addition to a range of basic features, Grundfos Dedicated Controls offer a number of advanced features that enable autonomous system operation, reduce downtime and maintenance requirements, prevent H2S build up and odour problems, and prolong the service life of all pressurised equipment.

Learn more about the benefits of Grundfos Dedicated Controls at grundfos.ph

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BEST STORIES OF 2018

changing the model and cost structure with selflearning systems. Cloud-connected rigs, in the near future, will begin assisting each other where humans have struggled.

The completions breakthrough will look similar.

NOV is now looking to change the design and operations of completions, working closely with a number of operators to offer tools and products that enable integrated and connected systems across the completion, intervention, and stimulation process, through to plugging and abandoning the well. Just as with drilling rigs, the production systems of the oil field remain rife with timing and budgeting problems. NOV is working to address the need for more efficient drilling systems to align the supply chain around technology that not only delivers on time and on budget but enhances the total cost of ownership during the life of the well.

The digital strategy of NOV as the company continually strives to lower cost and increase the speed and volume of access to hydrocarbons Oil & Gas Leaders • March 2018

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while protecting its people and the environment is unmatched in this industry.

Economic, Product, and Industry Trends Decreasing costs remains the challenge for the oil and gas industry, and NOV serves low-cost markets very well. The Middle East has drawn specific interest, as has the US land business.

The adoption of digitization remains a critical area for NOV, and the desire to lower costs is pushing oil and gas companies towards highly integrated service companies who cover all aspects of the process, including those usually carried out by the oil companies. That pressure pushes the operating companies to seek an alternative that gives them tools to execute better without taking control of their core competencies.

NOV works with its customer base in the region as a facilitating integrator who does not block future innovation and helps the drillers, service companies, and oil companies to eliminate costs together.

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The Person – David Reid History I started as a failing kid in secondary school in Aberdeen, Scotland. I grew up with high-achieving parents and siblings. As I struggled with dyslexia and what today would be called ADD, all I wanted to do was play in bands following a very exciting punk revolution in my generation. A close friend gave me insight into architecture in my final school years and, despite my lack of academic scores and rejection for entry in a construction management and design course, I was accepted on a kindhearted interest in my passion. After walking away from the band, I exceeded all expectations.

During college in Newcastle Upon Tyne I fell in love with a Californian, whom I married after college. I then started working in architecture near Manhattan beach in Los Angeles. I ultimately convinced my bride and took our 6-month old to Scotland. My first job was a conversion of a church to a nightclub and on developing a basic

design, I was let go. Despite years of avoiding the oilfield after some drafting work for BP during college, I was then tempted to work at Baker Oil Tools company, followed by Varco, which changed everything. Varco’s creative, people-centric, visionary style shifted my worldview and reshaped my aspirations.

Leadership Highly mentored and coached with much review and feedback, I was grown beyond my dreams.

My talent was identified, and I was given the opportunity to discover and fail as well as succeed from my early leaders when they pulled me to the corporate headquarters in Orange, California.

While there, I could invent new machines and businesses in a way I had never imagined within how the UK behaves in leadership. Trust and invitation became the cornerstone of how I grew and subsequently how I lead: not too hands-off and actively involved in finding and mentoring people to help them find their dream work.

Oil & Gas Leaders • March 2018

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Innovation It is interesting because I talk to other CMOs around the world and what I do is not at all what they do. I am all marketing in its classic sense; not messaging, but finding opportunity and leaders in our industry to help mold the ecosystem of our business, which detests imbalance. I am to influence without authority by staying connected to, and influencing, the market to evolve. I position NOV so that customers understand our products and technologies disrupt and change their fortunes through developing and leading in value creation.

I have a department that offers methods to creatively tell stories and document project successes from partnering with NOV and I think we do that well. We also have a highly skilled analysis team who studies markets and customer perception, as well as potential market gaps, to offer our businesses high-end consultants who are vested in the success of the work they produce.

Oil & Gas Leaders • March 2018

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Iconic Projects 1. The 100- to 140-ft tall robots called pipe racking systems introduced in 1995.

2. Introduction of NXT boltless BOPs, changing access time from eight hours to 17 seconds in 1997/8.

3. The first all-system drilling package in the Maersk Innovator jack-up in 2001.

4. The tipping point ST-80 taking high-volume iron roughneck in a standard design on global land rigs in 2003.

5. The TDX top drive, which eliminated maintenance time and longevity of service, revolutionized top-drive design in 2006.

6. Introduction of the first app-based operating platform with a closed-loop downhole autonomous drilling system using wired drill pipe in 2013.

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www.recapetroleum.com

BEST STORIES OF 2018

us, isn’t just posturing—it’s the way we choose to run our company. We firmly believe that doing good comes back around.

CSR – Community Investment and Sustainability Our company culture thrives on generosity and service, which is why our employees consistently give back to the communities where we live and work. Companies often talk at length about their community investment initiatives, but we go beyond the words—we hire people who we know share the same values we do. I’ve personally witnessed people at NOV from every walk of life rising up to help each other in times of need, and am proud to be part of a culture that’s genuine and honest.

We’re deeply involved with charitable organizations across the world, working with United Way, Susan G. Komen, the National MS Society, the Alberta Cancer Foundation, and the Snowdrop Foundation, among many others. We hold sporting clays tournaments to support community families dealing with injury and loss, encourage employees to mentor children at Houston-area schools, and address bullying with an innovative partnership with the Houston Texans football team. These are just a few examples, as giving back, for

Perception around energy is changing and we must be a part of the conversation. People often think negatively of the oil and gas industry without delving deeper into what it is we really do and how we do it. Despite misconceptions, at NOV we consider the effect on water, air, and land prior to implementing projects and manufacturing products, which is essential to developing and demonstrating environmental management practices.

Awareness, early identification, and improving technologies and processes of our day-to-day operations allow us to focus on minimizing energy, fresh water, and resource use, and waste generation. We constantly work to better our environmental management and risk by performing audits and due diligence.

OIL AND GAS LEADERS

BEST STORIES OF 2018

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Oil & Gas Leaders • March 2018

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Trivia NOV plays in numerous businesses that are not often known outside of oil and gas, including street light poles, biofuel processing, fiberglass tubular products, wind energy tower installation, all forms of large cranes, sewage systems of all shapes and sizes, processing systems, subsea water treatment systems, large composite systems (pressure vessels, bridges, and ramps), wine and food processing, drug production systems, power systems for the commercial space industry, and lab equipment for curing diseases.

BEST STORIES OF 2018

The Success Story of SNC-Lavalin Founded in 1911, SNC-Lavalin is a global, fully integrated professional services and project management company and a major player in the ownership of infrastructure.

With over 14,000 employees in the oil and gas business and 10 regional offices in the Middle East, the company has successfully delivered first-class projects across all four sectors - providing comprehensive end-to-end project solutions – including capital investment, consulting, design, engineering, procurement, construction, sustaining capital and operations and maintenance – to clients in the oil and gas, mining and metallurgy, infrastructure and power industries.

In this exclusive interview with Donal J. Dempsey, General Manager, Oil & Gas, SNCLavalin, learn more about his leadership style, the history of the company, its latest technologies and product innovations, the future expansion plans of the company, their methodologies in creating innovative solutions for clients and the company’s top projects.

200 mmSCFD modular gas plant USA

A Brief History of The Company, Its Challenges, and Success Stories Our teams provide comprehensive end-to-end project solutions – including capital investment, consulting, design, engineering, procurement, construction, sustaining capital and operations and maintenance – to clients in the oil and gas, mining and metallurgy, infrastructure and power industries.

We have been in the Middle East for over 40 years, successfully delivering first-class projects across all four sectors. We have over 14,000 employees in oil and gas, with hundreds of ongoing projects and 10 regional offices in the Middle East. Work sites include Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Oman, Bahrain and Iraq, with engineering centers in Saudi Arabia, UAE (Abu Dhabi, Dubai and Sharjah) and Qatar, supported by a high value engineering center in Mumbai, India.

Abu Dhabi is the regional headquarters for the overall EMEA region.

OIL AND GAS LEADERS

SNCL Muscat Training Academy Opening – Donal Dempsey & PDO MD Raoul Restucci, the project support team and local Omani Trainees

In 2014, we acquired Kentz and its subsidiary Valerus. The addition of Kentz to SNC-Lavalin significantly expanded our regional footprint.

In terms of people, we almost quadrupled in size in the region in the past three years, so it’s clearly been significant in terms of scale, especially in Saudi Arabia. It’s also given the enlarged company the ability to self-perform multi-discipline construction and inject an additional level of technical competence. As a top-tier EPC contractor and one of the largest international contractors in the region, we can deliver complex projects safely, reliably and cost-effectively, meeting local resource requirements without compromising schedule or quality.

The Latest Technologies and Product Innovations Meeting the changing needs of our clients, embracing innovation and technology were

factors at the heart of the strategic rationale driving the July 2017 acquisition of Atkins.

Atkins is an international consulting, engineering and project management company. With the combined capabilities and geographic presence of our two organisations we now have over 50,000 people serving clients across the globe, 20,000 of which are in Middle East, Africa and India.

The acquisition of Atkins enhanced our offering across the Oil & Gas sector and what’s really exciting is that we’re now able to give our clients independent advisory and consulting, design and specialist engineering, and comprehensive EPCM & EPC, fabrication, completions and commissioning, O&M, and project development services.

2017 also saw the launch of our new Training Centre in Muscat, Oman bringing our global project commissioning and completions experience to the benefit of both Omani

BEST STORIES OF 2018

trainees, and projects within Oman. By bringing these skills into the country, this program provides not only highly skilled jobs locally, but ensures that Oman retains the ability to undertake these key processes with well-trained Omanis in the future.

SNC-Lavalin has an active presence in Oman and in 2017, we were awarded both a fiveyear commissioning framework agreement by Petroleum Development Oman (PDO), and an EPC contract by Salalah Methanol Company LLC for the construction of an ammonia plant.

We have continued our commitment to creating and accelerating opportunities for local workforces in the Kingdom of Saudi Arabia as well. In December, we proudly signed a memorandum of understanding to support Saudi Aramco’s In-Kingdom Total Value Add (“IKTVA”) program, which applies to Saudi Aramco suppliers and drives the localization of oilfield services and equipment value chain, to strengthen and diversify the Saudi economy; transfer technologies, skills and knowledge through training and development; and create thousands of new jobs for the growing Saudi population.

Saudi Aramaco Shabah Gas Oil Separation Plant

The experience gained in Saudi Arabia and Oman puts SNC-Lavalin very much at the forefront of driving In-Country Value (ICV) here in Abu Dhabi with ADNOC. This is further complemented by Abu Dhabi being our EMEA headquarters as well as having three well established offices in the UAE.

The Future Expansion Plans of The Company We combine engineering expertise, deep industry knowledge, digital technology and data across the entire asset lifecycle, to improve and consolidate the design, planning, construction, operation and maintenance of physical assets.

The application of our digital services and tools results in the transformation of data into insight, which drives: • Enhanced engagement, decision making and planning • Improved uptime, security and safety • De-risked projects and reduced CAPEX/OPEX From immersive technology such as Virtual Reality and Augmented Reality, to 5D building

OIL AND GAS LEADERS

information modelling (BIM) and remote operations, intelligent process control and predictive maintenance, we have a full range of digital services and tools to help clients across the industry and around the world.

Together with SNC-Lavalin’s Atkins and Houston Offshore Engineering subsidiaries, we can now deliver offshore projects ranging from conceptual studies to maximize value early in field development to full detailed design and engineering support for construction. Spanning all kinds of fixed and floating structures, our services cover some of the most critical disciplines in offshore. For example, for Premier Oil we fast tracked the execution of a 150 MMscfd production facility in 63 weeks compared to a typical schedule of 4-5 years, and trained the local workforce to operate it, at the Solan field, West of Shetland.

At the other end of the scale, as the world’s brownfield offshore facilities age, need revamping or retiring, late life management and decommissioning have become a major focus.

We have worked in decommissioning and re-use since the 1990’s and have continuously updated our methods since; we continue to work with our offshore clients on ways to extend the life of their offshore assets and develop the plan and commercial model for decommissioning. Our integrity, modifications and operations (IMO) services have been deployed with clients in the Middle East, North Sea and Canada, and combine our engineering expertise with our field services personnel working on these facilities.

Oil & Gas Leaders • April 2018

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Some Notable Projects of The Company Sadara Completions and Commissioning, KSA: In-plant services for the new Sadara Petrochemical plants in Jubail Industrial City in Saudi Arabia; the largest petrochem plant in the world to be built in one phase.

Khazzan Gas Development Oman: We have been involved in this project since BP signed an agreement to explore and develop Block 61 in 2007. Extensive work was undertaken during the conceptual design and feasibility stages. Following successful well testing, we were appointed to carry out the geotechnical assurance for ground investigations that were needed for the pre-FEED and FEED of the central processing facility together with the gas gathering and export system, well sites, residential camps, roads and airstrips.

Khurais Water Injection Pump Stations (WIPS) Facilities for Saudi Aramco: Installation of two water pumps to provide 2MM BPD to

Khurais WIPS Saudi Arabia

the Khurais field in addition to the revamp of four existing water injection facilities for the Ghawar field in Saudi Arabia to inject an additional 2.1MM BPD. We provided detailed engineering, construction, pre-commissioning, commissioning and start-up assistance.

Pearl GTL Project, Qatar: At the Pearl Gas to Liquids (GTL) Project at Ras Laffan, our scope included Temporary Diesel Power Generation for the Pearl GTL Site Temporary Accommodation Camp; EPIC Scope for a 13,000m2 Office Complex including services; Early Works Temporary Facilities Support Services; EPC scope for the combined potable water/fire water storage and pumping systems, and EPC scope for a Modular Waste Water Treatment Plant (12,320m3 per day) for a 35,000-man construction camp. We also carried out engineering, procurement and construction management (EPCM) under a 3 year framework contract for all services relating to plant changes, minor, base and medium projects for Qatar Shell GTL Limited’s onshore and offshore Pearl GTL facilities.

OIL AND GAS LEADERS

UAE SNCL Snr Management Team – Judges on National Day

We have a long-standing relationship with ADNOC. ADNOC and its group of companies, including ADNOC gas processing, onshore, offshore, LNG, refining in addition to its JV partner Borouge, are key clients for us and we will continue to pursue FEED, PMC and EPC projects with them in the future.

We’ve also worked with ADNOC Offshore for a number of years. Our continued relationship has allowed our companies to work together to realize the full benefits of utilizing advanced structural analysis techniques to support safe life extension.

The Methodologies in Creating Innovative Solutions For Our Clients In the Oil & Gas sector, we’ve been able to offer

customers more pre-engineered and modular solutions that are less specifically tailored, are compliant from a safety, technical, operability and maintainability perspective, and are significantly cheaper, sometimes by as much as 30%. These solutions help achieve much greater speed to market and at a lower cost, removing unnecessary levels of complexity without impacting the quality of delivery and output. As we have observed, despite the low oil price environment, governments have prioritised energy investments to meet rising energy demand and maintain potential of existing assets. Additionally, there is a gradual shift towards alternative sources of energy, such as shale and solar. It is therefore more imperative for the energy industry to have access to innovative, robust but, above all, affordable project delivery options, such as modularisation and standardisation, to enhance all aspects of project delivery.

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The Leadership Style of Donal J. Dempsey One of the most important things for me is respect which some people from time to time can forget especially when they move up the ranks.

Everyone on our team contributes to our success from those on the shop floor to the top senior management including all our office support staff. Additionally, one area that sometimes is overlooked is that of spouse’s support. The oil and gas industry can be very demanding where people can be called upon to make sacrifices in terms of time or travel and being away from home. Having supporting spouses and recognising what efforts they have to go to, is also an important item. It’s a team effort at SNCLavalin.

My overall leadership style is very simple and that is “don’t ask anyone to do something you are not prepared to do yourself and if you have to, do it respectfully”.

Qatar Shell GTL Plant

Two other important initiatives which form a key part of my leadership focus is Inclusion and Diversity and Early Career Training & Development. We have a fantastic diversity programme within SNC-Lavalin group but in particular we have a very progressive programme here in the UAE which I am proud of. We don’t lead it, our female staff are fully empowered but we support and contribute. Apart from being the right thing to do, diversity breeds innovation and different aspects of thinking.

When I first joined our company there were not a lot of young engineers, so I have keen interest in trying to do my part to support the next generation that will take our place in the future. We have had some fantastic graduates (some even as Interns) join our company where we have seen them grow and develop over the years. “I am proud of the fact that some of these graduates have moved around with me on some of our earlier projects, and bring new and fresh ideas with them, whilst learning their trade.”

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SNCL Muscat Training Academy Opening, CSR Photos

Top Iconic Projects of SNC-Lavalin Oil & Gas Middle East • Master Services Agreement with Chevron for Systems Completion Support - Global

• Five-year commissioning framework agreement

by Petroleum Development Oman - Oman •

Confidential Client Kazakhstan – Modular Refinery for Gasoline and Diesel Products including Hydrocracker – Exclusive agreement from Basic Engineering to EPC

• Confidential Client Oman – Chlor-Alakli-EDC VCM-PVC Plant – Exclusive agreement from Basic Engineering to EPC

• Confidential Client UAE – 100k BPD Topping Refinery – Exclusive agreement from FEED to EPC • FEED for 500K BPD Oil Processing Facility in Saudi Arabia being executed from Abu Dhabi

• FEED conversion to EPC contract by Brahms Oil Refineries – Guinea • Asphalt production facility contract by Saudi Aramco – Saudi Arabia • EPC control system upgrade contract for GASCO Habshan - UAE

• $800 million EPC project in the Middle East – Saudi Arabia • Wastewater treatment project for Qatargas Laffan Refinery 2 - Qatar • 100K BPD Oil processing facility at Exxonmobil’s West Qurna 1 field – Iraq

• Three-year construction and procurement services contract by Saudi Aramco - Saudi Arabia Donal Dempsey with Canadian Delegation presenting at ITHRA trade meeting in Muscat

• Three-year onshore maintain potential program contract by Saudi Aramco - Saudi Arabia

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About Donal J. Dempsey Originally from Ireland, I studied Industrial Engineering & Design and then Process Instrumentation & Controls at the Cork Institute of Technology. I started my career in the chemical and pharmaceutical industry spending three years in Ireland, mainly with Jacobs Engineering.

Thereafter we targeted core work in Canada where we won our first PMC and engineering project for Kearl 1 Oil Sands in Alberta – I was spending a lot of time in and out of Calgary.

We were also looking at Australia where we won major contracts on Gorgon LNG portfolio.

My first time to Australia was only intended to be for a few days but it ended up being a few weeks, with significant travel back and forth over the next two years on our EPC projects.

My wife (then to be) and I had a keen interest in travelling and, at the age of 24, we decided to move to the Far East with Kentz Engineers & From 2007, we started to reorganise the Constructors in 1996 with our young daughter. company into business units to better spread and grow our capability and experience. In 2008 we floated on the AIM stock exchange, We moved to Thailand for a waste water EPC graduating to the FTSE in 2011. After spending project, and spent some time in our Malaysian two years on a target EPCM project in South office. We were so green but learned fast Africa, I relocated to Dubai as the Regional and really enjoyed the people, culture and camaraderie at Kentz. At that time I was one of Director for EPC Business Unit for the UAE, Oman and Iraq. the youngest engineers; everyone else was a good ten years ahead of me.

In 2014, Kentz was acquired by SNC-Lavalin.

It was a very complimentary collaboration In 1998, we moved to Abu Dhabi where I as the combined company had a full service started in the oil and gas industry and where offering from front end to EPC to operations we resided for nearly nine years, and where and maintenance, including capital financing. our son was born. We are proud to have In January 2017, we reconsolidated all legacy watched and been part of the UAE’s growth company business units into one country P&L, and development into a global, cosmopolitan, and I was asked to take up the role of General open, collaborative and progressive society.

Manager for UAE, Oman, Iraq and the “Stans”.

I am very proud to have been asked by SNCI held various roles including project engineer, engineering manager, commissioning manager, Lavalin to take up this role as its an exciting time to be involved in consolidating the and site manager before moving in to Project Management. Most projects were for ADNOC. company and moving forward to even more successes.

We moved to Qatar in 2007 where I took up a Regional Engineering role for the Middle East.

We have thoroughly enjoyed the last 22 years as international expats and I believe it has had It’s very difficult to explain in this short a big influence on our family. We see that our narrative the next five years as it was kids are much more “citizens of the world” transformational for Kentz and it was a privilege to be part of it. We bid and won major compared to us at that age. It has also created a career exposure that is often quite difficult to EPC projects in Qatar and globally from the get otherwise where it has allowed me to grow engineering hub we set-up in Doha with over 350 engineers at peak. I spent significant time and develop professionally. If I had to do the over three years recruiting in most of the major same again, then the answer would definitely by a “Yes”. cities in India. It’s a lovely country and I really love their open, collaborative and welcoming culture.

OIL AND GAS LEADERS

Donal J.Dempsey

General Manager, Oil & Gas

SNC-Lavalin

BEST STORIES OF 2018

OIL AND GAS LEADERS

Undisclosed Potential:

How Mazrui Energy Services Is Meeting The Needs of Today’s Society Mazrui Energy Services is a subsidiary of Mazrui International LLC, consisting of 5 operating companies strongly connected through its corporate services in terms of business development and strategy support, human resource management, financial management, and last but not least, a very strong commitment to QHSE. It has operations across the UAE, Qatar, Iraq, and Yemen, providing solutions and services in Drilling & Completion Fluids, Solids Control & Waste Management, and Advanced Production Chemicals. It has the capability to design, manufacture, install and support across a broad range of products and services for the oil and gas industry.

In this exclusive interview with Jurgen Joman, the Director of Mazrui Energy Services, learn more about their activities and relevance to the oil and gas industry and how he is leading the organizational strategy and overseeing the operation of five subsidiaries that make up Mazrui Energy Services. Find out what the company’s future plans and expansion goals are and how they are positioning the company to make an impression and support industry changes to deliver success for all of their stakeholders.

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Jurgen Joman

Director Mazrui Energy Services

OIL AND GAS LEADERS

What are the activities and relevance to the oil and gas industry? I believe you have at least six or seven entities that are heavily active in the oil and gas industry, correct?

MAZRUI ENERGY SERVICES JOMAN JURGEN: Mazrui Energy Services is a subsidiary of Mazrui International LLC, a privately held, Abu Dhabi-based conglomerate that operates across numerous diversified industries and sectors.

The group companies are market leaders in sectors including, but not limited to, Oil & Gas, Construction & Logistics, Healthcare, Retail, and Education.

Mazrui Energy Services has operations across the UAE, Qatar, Iraq, and Yemen, providing solutions and services in Drilling & Completion Fluids, Solids Control & Waste Management, and Advanced Production Chemicals. It has the capability to design, manufacture, install and support across a broad range of products and services for the oil and gas industry.

Where do you get the chemicals?

Do you have local facilities?

JOMAN: Let me start by explaining Mazrui Energy Services’ unique position.

Currently, Mazrui Energy Services consists of five companies that work independently or collectively to address individual client needs.

We recognize that having skilled, knowledgeable individuals in the right place is valuable for our business and our customers. We have an impressive line-up of technical staff, locally based in the Middle East, making access to expertise easier and more immediate. Working with our teams provides a seamless collaboration with specialists in a range of highly technical service areas, from oil field services to advanced chemistry production.

JOMAN: Mazrui Energy Services acts in partnership, rather than as a representative.

What we mean is that we aim to have long-term relationships with our principles and take over a substantial part of the responsibility in country.

Sigma Oilfield, one of our five group companies, is responsible for these partnerships, carefully selecting partners on a customer needs basis.

This enables us to build-up a local knowledge base and much needed local intelligence insights, underpinned by a solid service platform.

In return, our clients benefit from our local strategic intelligence in the form of a one stop shop.

For example, we have worked in partnership with Cameron for more than 20 years refurbishing BOP’s (Blowout Preventers). Our clients benefit from our fully equipped facility in Mussafah, which is designed to serve a comprehensive range of engineering and fabrication services to the oil & gas industry.

Cameron is the Schlumberger company?

JOMAN: That is correct. Cameron engineers, designs, and manufactures flow and pressure control technologies for customers working in the oil & gas industry worldwide. Besides this, Sigma Engineering Works LLC undertakes fabrication and associated engineering services for other clients, such as tanks, offshore baskets, silos, boilers, etc.

Mazrui Energy Services consists of 5 operating companies strongly connected through its corporate services in terms of business development and strategy support, human resource management, financial management, and last but not least, a very strong commitment to QHSE. Another of our five subsidiaries is Sigma Specialized Inspection, which provides advanced NDT and quality control services, which again fits seamlessly and uniquely within the group’s strategic structure.

Does Mazrui Energy Services act as a representative?

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That is something similar to what Applus Velosi was doing.

JOMAN: Yes that is correct. However we are fully focused on our territory of expertise, the Middle East region; whereas they are global in their outreach. We recently acquired Total Solutions Middle East, a company specialized in rope access. Rope access is now considered by many companies as a viable alternative to scaffolding and other traditional high altitude access methods. The uniqueness of this service combination makes it possible to provide our offshore clients in a more complete and comprehensive manner. We are an IRATA (Industry Rope Access Trade Association) member, which is recognized as the world’s leading authority in terms of industry rope access.

We also provide Rope Access training, which is carried out in our dedicated training center, under the strict IRATA training programme. This allows us to train our customer employees and transfer knowledge on the ground, locally.

Regrouping seems to be the trend.

JOMAN: I would not categorize this as regrouping. From the outset, we have evaluated market needs strategically, carefully calibrating our service provision because in the oil & gas offshore market there is a need for this combination of services supported by in-depth local market knowledge. The enhancement of our service provision through the acquisition of Total Solutions, for example, means that our skilled inspectors are able to gain work access to areas which at first glance would seem impossible. This allows them to complete a variety of projects quickly, safely, and with minimum disruption to the surrounding environment.

As I mentioned before, it is the unique positioning of Mazrui Energy Services that makes our group of particular interest to customers across the Middle East. The crosssynergies among our five operating companies provide a very strong brand with a very strong service offering. Petrochem, for example, one

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OIL AND GAS LEADERS

of our five, provides technical solutions in Drilling Fluid Systems, Specialty Chemicals, Solids Control Equipment and associated services for the oil & gas industry.

Here our strategy is to provide quality products backed by superior quality service, and engineering practices supported by Petrochem’s local technical staff. Our strength in the fluid industry is a direct result of our commitment to the provision of quality products and services based on strong technical alliances with our customers and understanding of fluids/hole related problems, Maximize Rate of Penetrations, eliminate Non-Productive Time and help to deliver Well Quality Assurance.

Last but not least is our subsidiary Sichem, which is our leading manufacturer of specialty chemicals for the Middle East region. Our products are used by blue chip multinationals and leading regional players in the oilfield.

Besides an extensive product range, we offer a comprehensive range of services including toll manufacturing, logistics, warehousing, QA/QC and analytical services that we carry out in our own laboratories.

Out of these 5 subsidiaries which one is the biggest?

JOMAN: I outlined the unique position that Mazrui Energy Services has as a group. Each subsidiary forms a cornerstone of our future strategy and growth. So, it is not about the size of any single subsidiary it is about the collective force of service. Together, we are able to mobilize people, equipment, and technologies to remote locations throughout the Middle East.

Currently, Mazrui Energy Services employs close to 1000 men and women, each dedicated to providing our customers first class quality service, which is critical to customer field operational success To support our efforts in providing our customers with industry leading services and technologies in the field, we have fully operational bases in various countries in the Middle East.

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When it comes to the regional outreach, you have mentioned several times in the media that you are trying to be one of the leading companies.

JOMAN: We are actively positioning Mazrui Energy Services at the forefront of the industry by responding to the ongoing pressure of commoditization and by actively expanding our opportunity in a period where the industry in many ways lacks overall direction.

We do this by leveraging our regional footprint, the unique capabilities of our workforce, and most importantly the willingness and appetite we collectively have to bring technological advantages to our clients in the region, supported with local support and services.

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Oil & Gas Leaders ďż˝ May 2018

There is a need for broader and more integrated technology platforms capable of delivering improvements for operational performance by consolidating our services under one roof, to address our customer needs.

It sounds like what ADNOC is doing as well. Last year, all the subsidiaries of ADNOC were running on their own, independently, and today they are all centralized.

JOMAN: As I said, the ongoing pressure of commoditization is changing the ways we will work in the future. Operators are seeking smart solutions to work more efficiently and this provides new opportunities for service companies.

ADNOC is a very good example, their new approach will enable them to unlock and maximize significant value across the group. Technology will

OIL AND GAS LEADERS

The 2017 E&P spend, which still makes up around 50 million barrels-per-day of production is expected to be down 50% compared to 2014. At no other time in the past 50 years has our industry experienced cuts of this magnitude and this duration.

When it comes to Mazrui’s 2016 highlights across the companies, are there any major contracts to report or any new clients acquired?

JOMAN: Against this backdrop, I have outlined how we are positioning Mazrui Energy Services. So far, 2017 has started with a number of challenges, in particular the continuing price pressure on new tenders.

become extremely important in this new energy era, and we want to be part of it. We need to think new and act differently if we want to realize future growth.

It used to be “Here is the money and get it done.” Today, they ask, “What do I get from this particular one dollar or one barrel?”

JOMAN: That is correct. So far this year, Brent prices have oscillated between 50 and 55 dollars per barrel as the record OPEC production from the fourth quarter of last year. At present the only region in the world showing clear signs of increased activity.

Nevertheless, we remain confident and optimistic about the future of Mazrui Energy Services as we continue to carefully navigate the current industry landscape, which remains challenging but also presents significant opportunities to those that have the ability to adjust together with the operators.

In light of this we are investing in our manufacturing facility, to ensure a more efficient operation that translates in a less costly operation that benefits our customers.

Is that manufacturing facility going to be here?

JOMAN: Yes, it’s at our existing location in Mussafah. We want

to be close to our customers and we are running a 24/7 operation.

When is it going to be operational?

JOMAN: The entire refurbishment will be finished by the end of 2017 and constitute a considerable investment and a large part of these activities is to bring more efficiency in our manufacturing process, which directly benefits our customers in terms of reduced cost, and less time consuming manufacturing processes.

Our strategy is to develop Mazrui Energy Services with broader and more integrated technologies capable of delivering operational improvements to project performance. The transition isn’t easy and does not happen overnight, however, building on the engineering group which focuses on regional expertise in blow-out preventers, pipe handling, and top drivers; this will further enhance us to accelerate the integration of the surface downhole parts of drilling as well as other affiliated services.

This strategic transfer is a direct result of the changes we see unfolding with our customers.

You provided ADNOC as an example, here you see that they have adopted a different approach to partnerships in order to meet ambitious targets and we need to transition alongside our prime clients.

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Mazrui Energy Services wants to become the preferred choice for our customers.

It seems that collaboration is of the utmost importance?

JOMAN: Yes, commercial alignment with our customers is the most important priority, and this can only be done with collaboration and a thorough, strategic understanding of customer needs and requirements.

We take responsibility using the complete range of our technology portfolio and expertise. Here we invest the entire value of our products and services in one single approach towards our clients, which not only offers a new avenue of local support, it also fosters closer collaboration with our clients, unlocks knowledge transfer, and allows the company to achieve its desired ‘preferred supplier status’.

That is also a trend for a lot of companies who are coming here.

They are trying to say, “We are building the facilities here, we are hiring the people here, and we are here for the long-run. What is your

view on this and how do you standout?

JOMAN: You see being a local company, incountry value becomes a very important factor.

We are more flexible and we are willing to take risk so we can go the extra step with the local suppliers to develop their quality. Another important factor is in-country knowledge transfer.

What I mean is that we are growing a local technology expertise platform that provides local sustainability and service capability throughout the region.

As you rightfully say; we are not leaving, but we need to ensure that we create local technical know-how, which ultimately makes the local companies independent. This ambition can only be realized by completely rethinking the current technology development. As an example, within Sichem we have a strong emphasis on our own product research and development for the manufacturing of drilling fluid chemicals.

Here we develop products specifically to suit the requirements of specific applications. This development is often done in collaboration with our local partners.

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Regional Office: LG Electronics Gulf FZE, P.O Box 61445, Dubai. Tel: +971 4 279 9222, UAE, Mr. Dharmesh Sawant, Tel: +971 50 559 9361, email: dharmesh.sawant@lge.com; Fortune International Trading LLC, Mr. Wail Halbouni, Tel: +971 50 481 3570, email: fortintl@emirates.net.ae; Ghantoot Trading, Mr. Nour Haboush, Tel: +971 50 109 4109, email: nour.h@ghantootgroup.ae; District Cooling Company, Mr. Ahmed Henedi, Tel: +971 50 658 4832, email: ahmed@districtcoolingcompany.com; Al Yousuf Electronics, Mr. Moitra, Tel: +971 50 457 6170, email: pmoitra@alyousuf.com; Bahrain, AJM Kooheji and Sons, Mr. Jayachandran, Tel: +973 36888801, email: v.jayachandran@ajmkooheji.com: Kuwait, Al Babtain Air Conditioning & Refrigeration Co., Mr. Naji Kataya, Tel: +965 5 051 5771, email: nkataya@albabtaingroup.com kw; British Link Kuwait, Mr. Imad Rhayel, Tel: +965 5 157 1229, email: irhayel@blk.com.kw; Oman, Oman Gulf Enterprise, Mr. Narender Kumar, Tel: +968 9 747 4505, email: narenderk@otegroup.com; Aspire Projects and Service, Mr. Vivek Wagh, Tel: +968 99357694, email: vivekwagh@aspireoman.com; Qatar, Video Home Electronics Centre, Mr. Adharsh N Kumar, Tel: +974 5 019 0206, email: adharsh@jumboqatar.com; Mohammad Hayil Group, Mr. Yousif Rustom, Tel: +974 7 001 7067, email: yousif.rustom@alsarh-holding.com; Azerbaijan, NBC LLC., Mr. Elkhan Sadikhov, Tel: +994 50 216 3363, email: elkhan.sadikhov@nbc.com; Al-Con Maxiwell Group, Mr. Vagif Alexperov, Tel: + 994 50 216 2092, email: maxiwellbaku@inbox.ru; Armenia/Georgia, ARAY Gulf, Mr. Vilson Melikjanyan, Tel: +374 9 307 7755, email: vilson@aray.am; Yemen, Modern House Exhibition, Mr. Khaled Jabr, Tel: +967 71 172 0202, email: mail@mhe-yemen.com; Pakistan, Iceberg Industries (Lucky Goldstar), Mr. Imran Jamil Khan, Tel: +923 21 277 6100, email: ceo@icebergindustries.net

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Speaking of many companies, there is a huge presence of oilfield service companies and many of them are local.

JOMAN: Competition in the oil and gas industry is intense, and many of our competitors have greater financial, technological and other resources than we do, which indeed may adversely affect our ability to compete. Mazrui Energy Services has for example capitalized on the expected synergies among the five business units to realize our full product and market value. Optimizing these synergies, realized a decrease in operational expenditure and increasing collective revenues simultaneously, made us stay ahead of the game.

Taking a structured, detailed, top-down financial and operational look at the organization to find key performance areas ensures sustainable operational effectiveness. We are competing with multinational service companies and that by itself provides a good indicator on our pricing structure, deliverables and quality of our products and services.

How do you feel about the market today? Are your clients asking for discounts?

JOMAN: The current downturn has now persisted for many months since the US land rig count peaked in October of 2014. The ‘wait-for-bettertimes’ approach has in the past allowed our industry to live through shorter-term demand down-turns while waiting for business to return to normal. The major difference in the current industry situation is that we are unlikely to see oil prices returning to the $100 level, hence the reason that we need to address our strategic plans for this new era in our industry.

We should not forget that this downturn also provided a natural elimination of industry players.

This shift is likely to have deep and long-term consequences for our industry, while service prices are further commoditizing. The market outlook for oilfield services in the coming quarters will remain challenging as the pressure on activity and service pricing is set to continue.

When you are talking about the market – let’s compare the local players and the international players like Schlumberger. They have shareholders and deeper pockets.

The local companies here have a different dynamic?

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JOMAN: Let us be very clear, everyone in the oilfield service industry, whether you are directly in this business or affiliated, has been affected by this turmoil whether you are a local or an international player.

mindset, leaving behind traditional management styles. It is easy to look back over your shoulder; the challenge is to focus on our forward thinking and to respond in a timely manner on the requirements of our customers.

The service industry has also lowered its cost base. They are operating 24/7, consolidating infrastructure, and employing multiskilled crews.

But one of the largest contributions has come from the service industry’s acceptance of lower pricing. We have shifted our focus towards the recovering of our pricing concessions and renegotiating contracts that have become financially unviable and to work with our customers to help improve their project performance and in this way support them with the ultimate goal of partnership creation, rather than a purely supplier relationship.

In the case of ADNOC, they are looking for the ideal partner and this is something, in our opinion, that cannot be done through a preference selection criteria, such as protection protocol for local companies. Local companies such as ourselves, should take advantage of being a local company and adhere to these changes and create a competitive portfolio that brings added value to our customers. ’Only than are we in the driving seat.’

Do you think that the government, or ADNOC itself, has to place some policy to protect the local markets?

JOMAN: It’s more a question of willingness for transformation. This will require a flexible 36

What will be the driver of the growth?

JOMAN: As I mentioned before, the impact of the oil price downturn, which we have experienced since 2014, will likely have long-term effects on the industry in a number of areas, including capital allocation and people.

The layoffs across the industry threaten to

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damage the industry’s brand as a career destination. This seems to make it more imperative than ever that oil and gas companies need to be innovative in their approach to talent acquisition, development, and deployment.

While we called 2016 the ‘worst year’, we characterize 2017 as ‘the year of slow return.’

Supply and demand are still slow to return to a sustained equilibrium, but it remains to be seen how quickly and to what extent US shale oil drillers might respond by resuming more active drilling programs.

People is one and Capital allocation is the other?

JOMAN: Looking ahead, Abu Dhabi is looking to increase its output over the next five years, and Mazrui Energy Services intends to support this with its services. In order for them to realize this increase, they will need capital allocation.

This is not an Abu Dhabi specific challenge; it’s an industry challenge. While we are not expecting a steep recovery in either oil prices or E&P investments, we still believe that it’s time to shift our focus from cost cutting, headcount reductions, and decremental margins toward

how the industry now needs to re-invent itself by rebuilding both capability and capacity as well as establishing new and more collaborative business models.

There is also an underlining bringing in investment to the offshore sector in the industry?

JOMAN: ADNOC is serious about building up its offshore presence to ensure sustainable longterm production. This will require investment and leaves Abu Dhabi’s offshore as the main focus of activity in its oil and gas sector, although it’s offshore greenfield developments are planned to have shorter production plateaus and will decline more rapidly than the existing fields.

Some other local players are also gearing up.

JOMAN: If you want to survive this downturn you are forced to gear-up and it would concern me if others would not do the same. It’s all about getting more oil by doing this more efficiently and more cost effectively.

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I can only speak for Mazrui Energy Services; we’re most focused towards our customers with whom we closely collaborate and who value what we do in terms of supporting them during these difficult times. We’ve worked closely with them during the down cycle to improve their project economics through technology and operating efficiency. I believe we are now coming to the point where we need to shift our focus from maintaining to building market share, while improving profitability.

What do you think of the new ADNOC concessions when it comes to onshore?

How is this going to change the dynamic?

JOMAN: These new partnerships that ADNOC is creating with these concessions provide us, as a local Oilfield Services company, new opportunities and will unlock new partnerships. It will bring new technologies to the country, where local service companies can tap-in with their services and products. Most of the future developments will be related to mature fields or high sulfur content gas. Therefore the expertise and technology will be of significant importance.

These agreements will bring expertise and carry significant in-country value in terms of knowledge transfer. The bulk of the spending is planned for the next three years, and this will lift output capacity from its current levels.

What is your strategy for the companies that you are chairing? What is your plan and what are you going to do in terms of services and acquisitions?

Geographically, how are you going to steer the companies?

JOMAN: Mazrui Energy Services is at an exciting and expansive stage of future growth. To guide this next stage of growth we have integrated a long-term strategy, which is essential to transform our business to the new oil & Gas era. It is focused on three main pillars, technology transformation, partnerships, and profitability.

Our long-term strategy will enable Mazrui Energy Services to realize and maximize its added value

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across our subsidiaries. We want to establish new partnerships that are more technology driven to drive operational improvements that we can transfer as added value towards our customers.

We are actively positioning Mazrui Energy Services at the forefront of collaborative service offerings for the Middle East’s oil & gas sector. Pre launched at last year’s ADIPEC, customers have responded very positively to our positioning.

At this year’s ADIPEC, we will present our rebranding in full, in Hall 1, where we will fully showcase our ‘Service In Focus’ proposition.

Geographically, our strategy is to expand further into various regions within the Middle East. We will use the same strategy for the successfully established operations in Iraq, Yemen and Qatar.

Are there any other regions like India or Africa?

JOMAN: We will not exclude them, however, our main strategic focus is the Middle East.

We would like to become the first choice of our local customers by means of price, quality and deliverables.

We often hear that local companies want more support from ADNOC. JOMAN: I can understand the request, but I believe it is really up to local companies to make themselves desirable to ADNOC. In other words you need to adjust as a service company to the needs of your customer. We at Mazrui Energy Services have set our long-term strategy to address these needs.

How do you translate the commitment to the region?

JOMAN: At Mazrui Energy Services, we aim to help meet the energy needs of our society in ways that are economically, environmentally and socially responsible. As explained, in-country value is high on our agenda. Being fully committed towards HSE makes us aware of our surrounding community. Mazrui Energy Services is fully committed to ensuring human health, operational

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safety, environmental protection, quality enhancement, and community goodwill.

This commitment is in the best interests of our customers, employees, contractors, our owners, and the communities in which we live and work. Mazrui Energy Services requires an active commitment to, and accountability for, HSE from all employees and contractors. Management has a leadership role in the communication and implementation of, and ensuring compliance with, HSE policies and standards.

After a career with Schlumberger spanning nearly two decades, what was in particular that attracted you to Mazrui Energy Services.

JOMAN: I can sum that up in two words: Undisclosed potential.

I could clearly see the tremendous potential of Mazrui Energy Services’ collaborative services 40

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proposition. That was a key compelling attraction, coupled with the quality and dedication of our owners. There is a market for our services and I am fascinated about how technology can help the oil and gas industry and make a difference by bringing this to the market as well as our customers.

In the future, my ambition is to see Mazrui Energy Services as an oilfield service company that keeps the customer at the centre of its business, and innovates new technology solutions to ensure business partnerships grow ever stronger.

We believe the industry is witnessing important transformations. Our ambition is to position Mazrui Energy Services so that it continues to make an impression and supports industry changes to deliver success for all our stakeholders.

Thank you.

JOMAN: You are welcome.

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Endress+Hauser:

A Success Story Operating as a family-owned business founded in Lörrach, Germany, Endress+Hauser Instruments is a proven-market leader in the design and manufacture of instrumentation and measurement systems that �������������������������������������������������� instruments and measurement systems manufactured

by Endress+Hauser are employed by clients operating within a broad base of industry applications including food, chemical, water and petroleum production and are supported by a comprehensive package of consulting, training, and repair services.

����������������������������������������������������� ������������������������������������������������������ measurement-engineering specialist. Its success is due to the continuity of a prudently run family-owned business that is fully committed to the critical principle of satisfying both the needs and requirements of its ���������������������������������������������������������� ������������������������������������������������� �������������������������������������������������������� �������������������������������������������������� around the globe sell products, services and solutions delivered by Endress+Hauser, while production sites in ����������������������������������������������������� and development. Thanks to the established global roots of the business in various regions and industries, the Endress+Hauser Group is well placed and able to cope ��������������������������������������������������������� lean and highly networked organisation of the company ����������������������������������������������������������� ������������������������������������������������������� personnel across the globe.

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Endress+Hauser provides sensors, instruments, systems ������������������������������������������������������ measurement as well as analytics and data acquisition.

The company supports customers with automation engineering, logistics and IT services and solutions and works closely with the chemical, petrochemical, ������������������������������������������������������ ����������������������������������������������������� ���������������������������������������������������� Endress+Hauser supports its customers in optimizing their processes in terms of reliability, safety, economic �������������������������������������������������� products and solutions are well accepted by major endusers in the region and the installed base has constantly increased over the past years.

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A dedicated service organization supports the customer during the installation, commissioning and life-cycle of our devices. ������������������������������������������� ����������������������������������������� heightened cost pressures, tightening of �������������������������������������������������� in a process plant and the complexity of a multi-vendor installed base with a mix of new and old technologies. Whatever the location or the industry, our global service force of over ������������������������������������������������ ensuring active local presence to help the customer to achieve their business goals. ������������������������������������������� ���������������������������������������������� based on process knowledge and technical expertise of over six decades.

Endress+Hauser started operations in the ������������������������������������������ Endress+Hauser Instruments International focused on regional support and development.

Over the past years, it has grown to more than ������������������������������������������ for sales, service, marketing and project ������������������������������������������ �������������������������������������������� �������������������������������������������� ���������������������������������������� ������������������������������������������ operations in the UAE as a sales centre with ����������������������������������������� also extended to Fujairah.

For two decades, Endress+Hauser was ���������������������������������������������� Oil & Gas Leaders • June 2018

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by the local representative. As a commitment to the Middle East region and to optimize customer support on the Arabian Peninsula, Endress+Hauser opened the new sales center �������������������������������������������� ��������������������������������������������� ������������������������������������������������ ������������������������������������������� ������������������������������������������� sales center is equipped with resources for sales, services and project management.

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Endress+Hauser has always maintained a ���������������������������������������������� sectors which has enabled it to manage the ������������������������������������������������ high in the family-owned business. For example ����������������������������������������������� ������������������������������������������� result that a new sales record was promptly accomplished in the following year after the economy had begun to recover.

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Endress+Hauser has been the technology leader with best-in-class products and solutions to cater critical and challenging applications in the process industry. Its research and ������������������������������������������� keep up the market pace in terms of technology ���������������������������������������������� and patent applications explain the technology superiority attached to them. Endress+Hauser products set standards in quality and technology.

In today’s competitive business, tackling the challenges of reducing costs, optimizing �������������������������������������� yesterday’s solutions will not yield the required results to create a competitive advantage.

Availability of big data for analysis, increased connectivity, and secure cloud based applications etc., connect people, processes and assets, providing continuous inputs and improvement opportunities.

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��������������������������������������������� ushered in huge potential. Endress+Hauser is not new to IIoT. It was one step ahead on the path of digitalization, when it introduced a pioneering sensor technology for liquid analysis in various industries such as chemical, power and energy, food and beverage and water and �����������������������������

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data from production processes and serve to ����������������������������������������������� topology. Digital transformation, will create a sustainable process, increase productivity and system availability while expanding competitiveness.

The Group has developed from a specialist in level measurement to a provider of complete Endress+Hauser is committed to supporting solutions for industrial measuring technology its customers along the road to digitalization. and automation, with constant expansion into ������������������������������������������������ new territories and markets.

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Major Projects Being a leading manufacturer for process instrumentation and automation solutions, Endress+Hauser has always been involved in prestigious projects, even though the public usually doesn’t get to see it.

Whether the cooling systems for iconic buildings in Dubai, the Dubai Mall, Metro Stations, the Dubai Opera the water quality measurement of the Dubai Fountains or involvement with the Masdar’s carbon capture and storage project in Abu Dhabi, Endress+Hauser’s devices deliver important information to run the systems as smoothly and as LɉJPLU[S` HZ WVZZPISL

Some of the clients that we have worked ^P[O HYL 5LZ[SL 4HZHÄ ^H[LY )HYHRH[ VYHUNL Q\PJL (+56* +,>( (+>,( and storage terminals in Fujairah like the 07;- 03 -: ,.( ,TPYH[LZ .SVIHS (S\TPUP\T ^P[O their two plants DUBAL and EMAL produce world-class aluminium quality and use certain Endress+Hauser PUZ[Y\TLU[Z PU [OLPY WSHU[Z ;OL huge cement plants in the UAE are using Endress+Hauser devices to supply their quality products into the fast-growing construction market in the UAE and V[OLY JV\U[YPLZ (SZV 9(2 *LYHTPJZ [OL world’s largest manufacturer of ceramic tiles, is among one of Endress+Hauser’s customer.

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About Jens Winkelmann I was born in the northern part of Germany in 1966 and grew up in a rather rural countryside, that was still heavily influenced economically by a big chemical plant nearby. This is also where my technical career started after high school. After an apprenticeship as measurement and control technician in the German Chemical Industry, “I graduated with a degree in Electrical Engineering – Measurement and Control – from the University in Hannover, Germany.”. I knew right from the beginning that I would join Endress+Hauser. This was always in my career plan.

I joined Endress+Hauser in April 1997 in the after-sales service department. Since then I have gained tremendous experience in various aspects of the business working with Marketing, Projects, Sales and General Management. I have been working for Endress+Hauser in the Middle East region since 2009. When Endress+Hauser established its own sales centre in the UAE in 2014, I took over as Managing Director of the new Endress+Hauser (UAE) LLC with its offices in Dubai, Abu Dhabi and later also Fujairah. In my current position, I am responsible for the company business in the UAE. On the personal side, I have been married for 25 years. I have two children who are currently studying in universities in the Netherlands and the UK. I like to do sports, going off-roading in the deserts and mountains of the UAE and spending time with friends.

Leadership style As a leader I always believe in the empowerment of my team, encouraging them to take initiatives, make decisions and be accountable for their actions. I believe, critical thinking, challenging the status quo and the openness for new approaches are base for a successful, long-term and sustainable development of the people and the company.

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Emerson: An Engineering Success Story Emerson is a global technology and engineering company serving the energy, chemical/petrochemical, life sciences, food and beverage and paper industries. It provides automation technologies, software and consulting services to help customers operate their facilities safely, reliably and profitably.

Emerson has a clear goal across its business: to help operators increase efficiencies and achieve top quartile performance on investment and operations. Top Quartile Performance is defined as achieving operations and capital performance in the top 25 percent of peer companies. Digital

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transformation plays a major role in achieving that goal.

The company offers the oil and gas industry the most comprehensive portfolio of technologies and services across the entire supply chain, ranging from upstream exploration and production, through midstream transmission and logistics, to downstream refining and processing. We help the industry eliminate necessary costs while improving overall productivity.

With a footprint in the Middle East and Africa that is steadily growing over the past three

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decades, Emerson’s Automation Solutions has established itself in its various facilities and service locations all over the region. We provide support services including Consulting, Project Services, Engineering, Manufacturing, Training, and Lifecycle Services. Through our extensive network of service network and engineering capabilities,, Emerson’s services must of our customers locally and providing personalized services and solutions that will solve their operational challenges.

The Company’s Technologies and Innovation Emerson strongly believes in localization – as we continue to grow our footprint in the region, we are dedicated to meeting and understanding the challenges our customers face. This vision is realized by recruiting local talent and helping them with their development through our training and mentoring programs.

With the launch of our new $25M Technology and Collaboration facility in Dhahran Techno Valley, Saudi Arabia, we have created a new regional headquarters that also includes engineering services, calibration, repair and support services, and a research and development center for exploring innovation.

Through this new establishment, collaboration workshops have been initiated with local partners such as the King Fahd University of Petroleum and Minerals (KFUPM), Saudi Aramco, the Dhahran Techno Valley Company, the Ministry of Education and Small & Medium Enterprise Support Group for the Eastern Province. This investment also reflects our long-term commitment to serve the needs of the Kingdom of Saudi Arabia.

Aligned with the Kingdom of Saudi Arabia’s National Transformation Plan and the Saudi Vision 2030 development agenda, the facility houses a collaboration center, educational classrooms, an IIoT (Industrial Internet of Things) laboratory for R&D, as well as concept test laboratories.

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As a technology organization, Emerson is known for introducing innovative technologies within our product platforms of Control Systems, Safety Integrity Systems, Fiscal Measurement, Valve technologies, Process Sensors and Instrumentation, and Reliability for plant assets.

We have broad wireless technologies as well that serve to expand our customer’s view into the plant. To ensure that our customers have use of these technologies, Emerson provides educational services and experts to provide support across the Middle East and Africa region, and, of course, globally.

During the recent pressure within the energy industry, new automation technologies and IIoT/digitization strategies helped energy producers in surviving and thriving (strategies such as lowering costs, improving productivity).

As a result, these strategies transformed the global energy landscape. Today, automation and IIoT technologies are more important than ever. They are instrumental in helping companies drive greater productivity and overall business performance. This is what the Digital Transformation is all about.

Digital transformation at Emerson always starts with a clear definition of the business challenges at hand. Company-wide efforts are underway to help customers focus more on targeted opportunities and implement digital transformation strategies in a scalable way, starting small and growing over time.

This enables them to leverage existing infrastructure and prove benefits before making deeper financial commitments.

The other critical factor in digital transformation – seldom talked about – is people. Successful digitalization requires organizational competencies in five key areas: o Automated workflows – automating repeatable tasks o Decision support – getting the right information to experts, onsite or remote

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o Mobility – making data freely but securely available wherever it’s needed

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o Change management – breaking through the cultural legacies that stymie innovation and organizational momentum o Workforce training – preparing current workers to transition to smart-collar workers who are digitally enabled

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To help customers drive digital transformation, Emerson has developed the broadest and

deepest Industrial IoT (IIoT) platform in the industry. It is called the Plantweb™ digital ecosystem, and it includes a broad sensor network, cybersecurity tools, software consulting, and execution services that bring the technology to life. Plantweb is helping customers quantify and capitalize on significant opportunities, including the following examples: o Improvements in overall equipment utilization to reduce operating costs

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Emerson’s extensive innovation and leadership in the drive of expanding and implementing Internet of Things (IoT) technologies and strategies for customers was recognized.

With industrial business challenges today that are affected by constantly-changing market dynamics, Emerson prevails by utilizing the power of Industrial IoT through the Plantweb Digital Ecosystem to expand process automation capabilities and receive deeper data insights to improve operations.

Referring to the capital project management, industries realize that to gain full advantage of the new technologies and capabilities, companies must follow a different approach to project execution. Acknowledging this possibility, Emerson prepares businesses with the proven Project Certainty approach and the Operational Certainty framework. The Project Certainty initiative, an effort to help companies in achieving Top Quartile project performance, focuses on eliminating project complexity and minimizing cost by embracing innovation in engineering practice and design. Operational Certainty, on the other hand, extracts the value of the technologies applied in the plant through a consulting framework designed to help customers recognize challenges that hinder them from achieving optimum operational performance. The framework helps in defining an efficient automation strategy that addresses business challenges, maximizes shareholder value through operating cost reduction, and enhances process efficiency, plant availability, and personnel safety.

Emerson’s Future

o Improved predictive health capabilities reducing unplanned outages o Improving emissions prevention o Identifying energy leaks o Automating information sharing across shift changes Awarded as the “Industrial Company of the Year” by the IoT Breakthrough Awards in 2018,

Emerson will continue to be an innovator within the industries we serve. We recently refocused the company to concentrate on two company platforms, Automation Solutions and Commercial and Residential. You have likely seen the recent acquisitions that support this strategy. We will continue to aggressively build our business globally and broaden our ability to serve these markets.

Regarding Emerson’s long-term vision growth in the Middle East and Africa, we will continue to drive innovation and transformation. We will also expand our local capabilities and footprint in the countries covered by the region.

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Innovative Solutions, the Emerson Way Emerson’s expanding footprint in the Middle East and Africa includes the establishment of a Final Control Service Center in Ruwais, Abu Dhabi in collaboration with the Abu Dhabi Oilfield Services (ADOS) to provide quick access for our control valves, ensuring accessibility for customers in the region. We have also established a new facility in Lagos, Nigeria, expanded our facilities in Basra, Iraq, and opened the first Flow Calibration and Service Center for Middle East and Africa in Dubai, UAE. Included in Emerson’s global growth is the acquisition of new businesses that will add valuable opportunities to the company’s business all over the world. Such acquisitions that took place within the past two years include Pentair Valves & Controls that helped us establish our global presence in control, isolation, pressure relief valves, and actuation. Another is Paradigm, allowing us to expand our portfolio to complement the Roxar software business. The acquisition of GeoFields aided us in further establishing their position as a comprehensive solutions provider for pipeline operations management. Aventics, a recent acquisition, strengthens and builds upon Emerson’s capabilities and solutions in key discrete and hybrid automation markets.

Emerson continues to innovate on new technologies’ solutions-based designs that address their challenges. Making significant investment in research and development, Emerson’s design team focuses on the importance of human-centered design, creating intuitive products and software that aid customers in dealing with the depletion of the experienced workforce, and initiating a new generation of innovators into the industry.

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Valley in Saudi Arabia allows Emerson to host Saudi entrepreneurs, students, researchers, and industry stakeholders in collaborating with Emerson’s technical experts in the development of process automation technologies and innovative products and solutions that meet the country’s goals and ensure global access to Emerson’s research and development expertise.

The Company’s Most Notable Projects

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1. Emerson signs Agreement with Saudi Aramco to collaborate on Digital Transformation – In June of 2017, Emerson CEO David Farr and Saudi Aramco President and CEO Amin H. Nasser signed a Memorandum of Agreement that focuses on advanced digitization and automation technologies for one of the leading energy and chemicals companies.

2. New Emerson facility in Dhahran Techno Valley – The facility in Dhahran Techno Oil & Gas Leaders • July 2018

3. Emerson donates Oil and Gas Reservoir Characterization Software Licenses to the AUC– As part of its initiative to promote STEM (Science, Technology, Engineering, and Mathematics) in industries and communities around the world, Emerson has donated licenses for its oil and gas reservoir characterization and engineering software (Roxar RMS, Roxar Tempest Suite, and Roxar METTE) to the American University in Cairo (AUC).

4. Emerson’s new manufacturing facility in Dammam, Saudi Arabia – Emerson has opened a new manufacturing facility in Dammam First Industrial City in Saudi Arabia to expand its local manufacturing project execution and service capabilities by providing engineering, staging, commissioning, operational support,

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maintenance support, repair, field services and training support to customers in the capital of Saudi Arabia’s eastern region.

5. Emerson aids Kuwait Oil Company in maximizing the value of reservoir assets – Emerson has supplied Kuwait Oil Company (KOC) with the Roxar RMS reservoir modelling software to aid in building accurate and detailed reservoir models. This new contract builds on KOC’s wide adoption of the previously purchased Roxar RMS software which was crucial in providing input in well placing and determination of the wellbore trajectory in potentially productive parts of the reservoir, and in reducing the geosteering risk for sidetracked wells.

6. Emerson’s Solutions Center and Education Center in Dubai – Emerson has established the Solutions Center and Education Center in the Jebel Ali Free Zone in Dubai, UAE. The Solutions Center provides customers with an immersive, hands-on experience of the latest technology for operations management, while the Education Center supports and strengthens Emerson’s capability in helping customers train and improve their workforce’s skills.

7. Emerson provides automated service to Tahrir Petrochemicals – Emerson has been selected to provide automation, reliability technologies, and services for Carbon Holdings’ Tahrir Petrochemicals Project at Ain Sokhna, Egypt, the largest petrochemical plant in Egypt. Emerson’s best practices and services helped ensure the facility’s completion on time and within budget.

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About Jeff Householder Jeff Householder is the President for Emerson’s Automation Solutions business in the Middle East and Africa. Having joined the company in 1996 as part of the newly formed Systems and Solutions organization in Austin, Texas, Jeff has extensive knowledge and experience in business development for Oil & Gas in the specific areas of Flow and Systems Solutions. Assigned to the President’s role, Jeff’s current focus is on growing Emerson’s organization and footprint in the dynamic and everchanging region.

Jeff subscribes to the LPMA model of leadership. LPMA stands for Leadership Promoting Motivation and Achievement. In this model, emphasis is placed on clarity of role, focused mission and freedom to achieve in methods matched to the employee.

This is Jeff’s second assignment in Dubai. The first role lasted four years, wherein he was responsible for the Systems and Solutions businesses. In his current role as President of the MEA World Area for Emerson, he is expected to be in Dubai for the next 3-5 years.

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From the personal side, Jeff is from the US, growing up in a small town in the mid-West area of the country.

Life there is much different from the fast-paced Dubai lifestyle. His wife is likewise mid-West and together they have raised two daughters and two sons. Neither thought they would ever be ex-patriates but relish the opportunity to learn new cultures and lifestyles.

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The Current State of Fossil Fuel According to The World Petroleum Council Dr. Pierce Riemer, Director General & CEO of World Petroleum Council outlined the challenges in the petroleum industry, the future of fossil fuel, new technologies that are disrupting the oil & gas industry, and accomplishments of WPC. In this exclusive Q&A interview, learn about WPC’s mission, critical projects and notable achievements.

What are the challenges and obstacles in the petroleum industry? How can we solve these problems?

Many would agree that the critical challenges for the oil and gas sector going forward are innovation in technology, the environment, energy poverty and geo-politics. Key to finding solutions for each of those challenges are strategic alliances and closer cooperation

among governments, industry and other relevant stakeholders. This is even more important in times of political or financial crisis.

Although cooperation between IOC’s and NOC’s is not without its challenges, the potential rewards of enhanced cooperation are significant for both parties and indeed, there are many examples of successful partnerships.

The World Petroleum Council (WPC) can facilitate the building of important bridges for all sides to find ways to work together.

Strategic alliances enable businesses to gain competitive advantage through access to a partner’s resources, including markets, technologies, capital and people. Teaming up with others adds complementary resources and capabilities, enabling participants to grow and expand more quickly and efficiently. Many fast-

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growth technology companies use strategic alliances to benefit from more-established channels of distribution, marketing, or brand reputation of bigger, better-known players.

Cooperation also incorporates enhancing relationships with governments, nongovernment organizations, academia, international institutions and the public. For critical issues such as food, water or climate change, no one sector of society can provide the answers on its own but will require cooperation among all sectors.

We all live in a rich world. Thanks to energy and innovation we are living longer healthier lives and the standard of living in most countries continues to rise. That said, we have the obscene situation in this day and age where we have over 1 billion people that have no access to any form of energy and we have 2.9 billion people who have no access to clean cooking fuels and use; wood, charcoal, animal dung and other agricultural waste. The latter leads to over 4 million people dying every year (mostly women) prematurely due to illnesses attributed to air pollution from cooking. To put that in perspective they are cooking, for many hours, in an environment that is the equivalent of smoking 400 cigarettes per hour. We are working with the OPEC Fund for International Development (OFID) and others on our Energy Access Platform to highlight all the good things that our industry is achieving in this area to help alleviate energy poverty and support Sustainability Development Goal 7.

This is also an area with so many cross overs.

We are striving to reduce methane emissions from many areas of the industry and in doing so we can use the gas collected in liquid, compressed or pressurized form to help combat fuel poverty. In fact, when you look at the SDGs, as an industry we are involved with all of them Technology will be a key to the future and the industry is exploring ever more challenging new frontiers where large oil and gas discoveries are being made. So, the future for the oil and gas industry is looking quite bright. But, there is always a but, we need a dedicated and experienced workforce to deliver our energy supply. We need young (men and women) qualified people and we don’t have enough of them.

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Is there a future for the Fossil fuel industry?

The short answer is yes but we deal with lots of scary (high) numbers. As an industry we must provide energy for all. And I mean for all.

We are focused on providing energy for the future population of the world in a sustainable way. There have been amazing increases in the share of renewables yet, we still do not provide energy for all the people currently on the planet.

Just in my short lifetime, the world population has doubled from 3 billion to now over 7 billion people. So, the first scary number is world population. The UN has recently increased its estimate for 2050 to nearly 10 billion and to over 11 billion people by 2100. These are the average figures, hopefully it will be less, but it could also be a lot more and all these people will need energy, food and water. And, thanks to scientific advances all these people will be living a lot longer and by implication using more resources.

The second scary number is the amount of energy we need now just for our existing population. Looking at only the oil industry we are close to providing the demand of 100 million barrels of oil every day. Easy to say quickly, but that is 100 million x 159 litres of product every day. Yet we do this on time, on demand, 24/7, 365 days a year.

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And that’s just the upstream business.

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Downstream then provides everything else around us. We supply an efficient economic and regular supply to consumers; not just fuel for cars, rail, trucks, ships and planes; but also fuel for power generation, petrochemicals, polymers, lubricants fertilizers, pharmaceuticals. The list is endless, and the World is not going to run out of oil, gas, or coal, anytime soon. We can largely forget about the notion of stranded assets on a worldwide basis and peak demand for the majority (or possibly a plateau) could become like peak oil, a distant memory.

Over recent years the renewables sector has considerably reduced the cost of solar and wind this will make that segment grow even faster than previously expected. For the future, with more scary numbers to come we will need everything; all fossil fuels all renewables, even nuclear. Our challenge for the wellbeing of future populations is to continue to provide energy in a clean and sustainable way to all, and I mean all. We will have an energy transition that will certainly last longer than most short-term thinkers believe or understand.

But this will challenge us to the extremes of our development in science, technology and innovation in providing clean energy.

Our high tech and capital-intensive industry requires significant human and financial

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resources to succeed. Over the last few years, there has been a significant lack of investment.

We have reduced costs considerably over the last few years and companies are now far more efficient and lean than they were at 100$ oil. So, companies are in a far better place now and will need to keep these costs down.

With reduced costs and the historic OPEC and Non-OPEC agreements in place we have seen a higher more stable oil price which is encouraging and leading to more FIDs being completed. That said, the big challenge is to fill the gap caused by “minimal” investing for several years. This is a challenge we must deal with otherwise the global numbers will get even scarier.

The planet does not need saving. If we warm it up too much we will not exist. The planet and nature will always adapt to whatever we do, people won’t. Our job is to keep our planet livable and providing clean energy and products for the future wellbeing of all.

What are the latest technologies that are disrupting the Petroleum industry?

I really hate the word disruptive. I appreciate its origins and some good historical examples; but, many current examples normally quoted are

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themselves reverting to the “old norm”; Amazon building bricks and mortar stores, Airbnb building hotels and Uber buying Coach fleets. The main reason I don’t like it is that the word sounds so negative. I would prefer to use the word “enabling technologies”. Technologies which allow us to do things better, more efficiently, safer, cleaner etc.

There are some excellent examples in the petroleum industry. We are at the leading edge of so many disciplines. Digitization is the big one.

Machine learning being able to look at big data that geologists may have missed.

We now have the first automated rigs, robotic vehicles on the sea floor and remote operators and no visible rig on the surface. We have drones looking at rigs and refinery’s and petrochemical plants leading to great improvements in health and safety.

Advances in drilling technology, both horizontal and vertical drilling leading to great advances in conventional and unconventional extraction.

In the biological field there are great advancement in developing biofuels and also great steps forward in CO2 storage removal and utilization technologies.

There is never a dull moment in our industry and people from all disciplines can contribute.

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ABOUT YOUR ORGANIZATION What are some of the accomplishments of your organization?

We organize the largest oil and gas congress and exhibition in the world with all the surpluses going to educational legacy projects. We have sent thousands of students through university and they don’t have to join the industry just study a science or business-related subject.

Leaving a legacy wherever we operate We created the first public debates between the IEA and OPEC Promoting a form of sustainability since 1933 (before it became trendy…… see our founders message in 1933 for an early sustainability message)

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Showcasing for the first time with real numbers gender issues in the industry Setting up an energy access platform to fight energy poverty Working with other industry bodies to persuade the SEC to update their outdated accounting rules for oil and gas.

Working with others to set the world standard for reserves and resources evaluation. Working with the USA, EU, Russia and China cooperating on joint standards and definitions.

Encouraging young people to join the industry and setting up Young Professionals committees in our member countries.

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What are the objectives of your organization.

What are the positive contributions and impact to the society.

The WPC was formed in 1933 as a neutral, non-political, not for profit organisation “to promote oil and gas for the benefit of mankind”. Today it has the same values and is registered as a charity in the United Kingdom.

All profits from WPC events go into charitable concerns. The WPC has member countries which currently number 70. The WPC’s prime value is to facilitate dialogue amongst all stakeholders to find answers to key technical, social, environmental and management issues facing the industry; in order to provide affordable energy for all and contribute towards sustainable growth.

Our mission is to promote the development and utilisation of the world’s oil and gas resources and other energy sources in an efficient and sustainable way, for the benefit of current and future generations. We value strongly: • Respect for individuals and cultures world wide • Unbiased and objective views • Integrity in all actions • Diversity and inclusion • Transparency, good governance and ethical behaviour • To do no harm to people and environment • Safety and security • Cross-national dialogue and networking 91 • The views of other stakeholders

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Dr. Pierce Riemer Director General & CEO 94

World Petroleum Council

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Tell us about yourself My education and work experience is perhaps slightly unusual than the norm. On leaving school at 18 I could not afford to go to University so joined a company that would educate me (I don’t think this would happen today). My career has always been in the energy industry and always associated with environment, utilization or conservation.

My first job was working for The National Coal Board and more specifically Coal Products Ltd on ways to utilize and minimize coal waste products. During my time there, the company sponsored me to do a degree in Applied Chemistry and I worked on environmental and power generation projects, my degree project focusing on developing polyimides based on coal waste products. The company then became British Coal and they sponsored me to do a PhD in designing catalysts for gas to liquids projects, related to gasification.

I also worked on acid rain and early climate change projects. After some time in Corporate planning and managing British Coals European research portfolio (pre and post British Coals privatization) , I joined the International Energy Agency, where I set up their GHG Programme in 1990, responsible for initiating carbon dioxide capture and storage activities.

These responsibilities included, technical programme, demonstration plants, JI, AIJ, CDM activities, and studies relating to greenhouse gas emissions from all sources at the IEA. During this time, I also set up a monitoring programme for the Sleipner activities. I was the official Liaison with Oakridge National Laboratory (USA) for ETDE and oversaw expert documents for PROMPT (The Institute for Prospective Technological Studies), for DGXVII and DGXIII of the EU. I also represented the organization at COP1 and was part of the team at the Kyoto negotiations. From there I joined the WPC as Director General. This involves managing the 70-member countries (representing over 97% of the world’s oil and gas production and consumption) and international committees and liaison with other international organizations and the UN. I represent WPC at UNFCCC and COP meetings and at the UNFC Sustainability Committee and UNECE Reserves and Resources committees. In addition, i sit on the board of the Energy Access Platform with the OPEC Fund for International Development (OFID) and the editorial board of the Journal of World energy Law and Business.

Over the years I have written many papers, a number of patents and a few books, some technical some not so technical.

I am married to Christine, also like me originally a Chemist but she is also a mathematician. We have two children a son, who is in international business development and a daughter who is a toxicologist. To relax I like building computers, gardening and of course spoiling the two grandchildren.

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OTC: Celebrating 50 Years of Success GineersNow exclusive interview with the Chairman of the Board of Offshore Technology Conference (OTC), one of the most largest oil and gas events in the world.

Take a look at the history and achievements of the organization, plus the latest trends in the offshore industry.

What are the latest trends in the petroleum / offshore industry?

This year we were focused on project-ready technologies—including tools, processes and techniques—that reduce the development turnaround that are safer and cost effective.

We had, for instance, a session called “How to Make Offshore O&G Projects Feasible in a USD 45-50 per barrel Environment.” Looking forward to the future and the next 50 years, as we rely more heavily on technology, we definitely expect to see an increase of such innovations, specifically in the Digital and Renewables

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arena, to keep up with the ever-growing global energy demand.

What are the latest technologies that are disrupting the petroleum / offshore industry?

Cross-industry innovations such as the digital transformation and robotics are triggering a historic transformation in the offshore energy sector. We’re also seeing signs of this transformation through advancements in software, big data, data technology, and unmanned vehicles (underwater and aerial). At least seven sessions this year were devoted to these topics.

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What are the accomplishments of OTC for the past 50 years Since 1969, the world has come to OTC to make critical decisions and share ideas to meet the world’s energy needs. Now approaching its 50th anniversary, shifting business, political and economic paradigms have altered the complexion of the conference, but not its status as the one “must-attend” technical conference for engineers and scientists working in offshore energy.

The first Offshore Technology Conference was conducted in May 1969 in Houston, Texas, and was successful beyond expectations with 2,797 registrants, 112 papers presented, and 368 exhibit spaces.

OTC has been held in Houston each year since, with significant growth in size and worldwide participation, thanks to our industry partners and the city of Houston. There are very few annual events in energy that have OTC’s legacy, impact and contributions.

There’s a sense of euphoria and pride among our OTC staff and partner organizations in being part of something that has delivered consistent technology and innovative value for 50 straight years to the offshore sector, governments and economies, small and large, all over the world.

OTC’s 13 non-profit sponsoring organizations use revenue generated from the conferences to provide many other important programs for their members, such as education to students and the public, training, and technical journals.

OTC continues to focus on meeting the needs of the offshore community, which has meant expanding its technical and global reach. The Arctic Technology Conference, OTC Brasil, and OTC Asia are all examples of its commitment to addressing long-term challenges and opportunities for offshore oil and gas.

OTC provides a platform for companies to showcase their technology as it relates to all forms of energy. Though our technical sessions are often dominated by oil and gas related

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topics, our program includes topics from all types of energy. OTC gives professionals the opportunity to continuously improve and learn from others’ work, whether that’s directly tied to their sector in the energy industry or another.

The 2018 conference featured more than 350 technical papers and 100 speakers, more than 60,000 delegates from 111 countries, and more than 2,300 exhibiting companies representing 44 countries. In addition to recurring topics, an emphasis was made on how to reduce costs safely and improve overall value in a low oil price environment.

The manuscripts from OTC’s presentations are also added to the multisociety e-library, OnePetro, where they can be utilized by current and future generations.

OTC also hosts the Distinguished Achievement Awards Luncheon, which has donated a total of USD 1.7 million to charitable organizations over the past seven years.

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The OTC Energy Challenge features more than 60 local area high school students who are working to solve real-world energy Oil & Gas Leaders • September 2018

challenges. With the aid of an academic coach and industry mentors, students compete in teams and present their solutions to the OTC audience via a technical e-poster session. In addition to student presentations, students and participating industry representatives learn more about potential STEM careers, and what drives our future generation of leaders and innovators.

OTC recognizes pioneers, leaders, and innovative companies through its Distinguished Achievement Awards program, as well as exhibitor technologies through the prestigious Spotlight on New Technology Award.

For 2019, OTC’s 50th Golden Anniversary, we will celebrate OTC’s deep commitment to the people and companies who have helped us to reach this milestone. We are grateful to the offshore energy industry, our exhibitors, and our attendees as we all uncover new techniques, technologies, and connections.

Do you have a CSR program?

OTC does not have an explicit CSR program.

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ways. Since 2011, because of the faithful support of industry-leading companies, OTC has raised over 1.7 million dollars for charitable organizations. It has donated, each year, significant amounts to organizations that are in some way connected to the offshore energy industry or to the communities where the industry operates, and makes a difference in people’s lives or addresses important environmental issues. These are: Gulf of Mexico Foundation, Engineers without Borders, Offshore Energy Center, Medical Bridges, IPAA and PEA Energy Education Center for the benefit of the Energy Institute High School, Junior Achievement of Southeast Texas, Oilfield Helping Hands, and the Young Women’s College Preparatory Academy. OTC also donated in August 2017 USD 200,000 to the Salvation Army for Hurricane Harvey disaster relief.

(such as severe water shortages, earthquakes, tsunamis, and other hazards). The program provides funding for these projects and assists geoscientists and their teams in collaborating with multidisciplinary and community-based partners.

Several OTC sponsoring organizations also contribute positively to the community, such as the Geoscientists Without Borders (GWB®) program from the Society of Exploration Geophysicists (SEG). GWB® serves as a catalyst bringing capable scientists together with communities to solve their problems

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OTC’s Top 10 Most Unforgettable Moments 1. Safety has been a focus of OTC— not only within the industry but for the conference. After the BP Macondo accident in 2010, OTC took a leadership role to ensure that safety remained at the forefront.

2. After reaching its highest attendance in 1982 (108,000 attendees), the oil and gas industry experienced a devastating drop in oil prices. As a result, attendance dropped dramatically, and in 1984, OTC leadership decided to cancel the exhibition, the only time it has done so in its 50-year history. Despite this turmoil, OTC was not dissuaded to continue with the dissemination of technical knowledge —the sessions were held without issue.

In the late 1980s, the event quickly rebounded and increased its success with the passing of every decade.

3. In 2004, OTC launched the Spotlight on New Technology program to recognize truly innovative advancements in ocean resources development. Up to 15 technologies, as well as a special category for small businesses, are recognized each year.

4. In 2006, the need to transfer knowledge to the next generation brought about The Next Wave program for young professionals under age 35. Each year, the program offers a workshop during OTC on technical and soft skills they need to develop for their career.

5. In 2007, OTC began the Energy Education Institute, offering a full-day workshop during OTC for Houstonarea science teachers to help them bring energy topics into their classroom.

Teachers participate in hands-on energy lessons provided by the US National Energy Education Development (NEED) Project.

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6. In 2009, OTC experienced a devastating Houston flood that wiped out the outdoor tented Pavilion four days before the show. OTC, Freeman, and other contractors had to quickly relocate 361 exhibitors (68,400 nsf) from the Pavilion to the NRG Arena, a facility not used

by OTC in many years. Because of quick thinking and hard work from all staff and vendors, the move to NRG Arena was a success. So much so, that the Arena has been utilized as part of the exhibition ever since.

7. 2011 and 2012 were years of incredible growth for OTC—through the creation of OTC Brasil, the Arctic Technology Conference, and OTC Asia—extending the OTC brand both geographically and technically.

8. OTC 2014 was an exciting year for the event, as we broke our 1982 attendance number, with a record 108,300 attendees.

It was also the largest exhibition for OTC on-record.

9. OTC’s venue, NRG Park, maintains a comprehensive recycling program. Last year, 36 tons of recyclable material were captured and diverted from landfills.

10. The desire to give back to the community was a primary driver for the creation of a beneficiary for our awards events. All net proceeds from the dinner are donated to a charitable organization that is in some way connected to the offshore energy industry or to the communities where the industry operates, and makes a difference in people’s lives or addresses important environmental issues. Because of the faithful support of industry-leading companies, more than USD 1.7 million has been donated to worthy organizations in the past seven years.

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S T O R Y

GCC Chemical Industry’s Contribution to Sustainability and Circular Economy W

hat are the latest trends in the petrochemical and chemical industry?

The chemical industry in the GCC and globally is in the midst of a fundamental transformation, reshaping existing business models and forcing industry leaders to rethink their strategy for the future. Looking forward, the regional industry’s key priorities will be to focus on developing new business models, pursuing industry consolidation and asset integration, enhancing their international footprint, and supporting a corporate culture focused on

innovation and performance excellence. Further industry consolidation between companies within the GCC can help to create the critical mass needed to benefit from shared services, utilities and procurement as well as innovation efforts and human capital development.

Pursuing right-sizing and integration, and – further downstream diversification – by realizing the full value of hydrocarbon products is another important driver in the regional chemical industry. Now more than ever before companies are investing in their capabilities to diversify their product portfolio

and increase product differentiation, shifting from commodities to specialty chemicals to address growing societal and sustainability challenges. Acquiring or developing new, groundbreaking technologies to enhance the competitive position of liquid feedstock and explore alternative petrochemicals feedstock, oil-to-chemicals being one example, is another important trend that we will continue seeing into the future.

What are the sustainability challenges in the petrochemical

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industry?

The chemical industry – as a solutions provider to some of the key sustainability challenges we face today – has one of the highest contributions to sustainability. In fact, as far as the UN Sustainable Development Goals are concerned, the industry contributes to 12 out of all 17 Goals.

Plastic packaging plays an essen-

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tial role in preventing food from going to waste by prolonging its shelf life and reducing spoilage.

In addition, a new generation of polyethylene films used in farming and greenhouses are capable of increasing crop yields by up to 60 percent in some cases, while inorganic fertilizers currently help to produce more than half of the world’s food, thus ensuring important nutrition for billions of people across the

globe. (SDG 3: Zero hunger) Modern healthcare advancements would not be possible without the use of plastic materials that have for decades played a key role in providing essential medical supplies, helping to improve the health of millions of people and saving lives around the world. Whether they are basic inventions such as IV bags and syringes or lifesaving

OIL AND GAS LEADERS G P C A

Khalid A. Al-Falih, Minister of Energy, Industry and Mineral Resources, Saudi Arabia, inaugurated the 12th Annual GPCA Forum

Yousef Al Benyan, CEO, SABIC, and Chairman, GPCA, delivering the opening address during the 12th Annual GPCA Forum

In fact, as far as the UN Sustainable Development Goals are concerned, the industry contributes to 12 out of all 17 Goals.

medical devices such as incubators and dialysis machines, and even cutting-edge advances like dissolvable plastic heart stents, prosthetics made with plastics on 3-D printers –plastics help improve health and save lives around the world. (SDG 3: Good health and well-being ) Plastics serve as the building block for solutions used in vehicles light-weighting, thereby helping to increase fuel efficiency and significantly reduce carbon emissions. The chemical industry is a primary contributor to the development of innovative building materials and solutions that are significantly more energy-efficient, durable and better performing compared to their counterparts. From roofing to flooring, water pipes to window seals, house wraps to insulation, plastics and other polymers deliver considerable energy savings thus contributing to (SDG 12 and 13 Responsible Consumption and Production and Climate Action). High-quality polyethylene (PE) piping systems also play a key role in addressing the global water challenge; they last three times longer than other pipes, suffer fewer breakages and require less maintenance (SDG 6: Clean water and sanitation) From an emissions standpoint, chemical products save more than twice what they “cost” to produce. That ratio stands to grow even greater with increased investment in innovation.

As environmental pressures continue to grow, putting a strain on our valuable resources, the industry is developing products

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with sustainability in mind, taking into account their entire lifecycle with a focus on increasing their potential for reuse, recycle and energy recovery. Such initiatives are in support of the Circular Economy, which is grounded on the principle of maximizing the value and utility of materials over their lifecycle and keeping them inside the value chain for as long as possible, thus minimizing energy and resource consumption. The circular economy also envisions that plastic does not leak into any natural streams whether land or water, but is rather collected for reuse, recycle or energy recovery, an idea that the industry fully supports

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through its efforts to increase the circularity of its products.

To further prevent plastic from leaking into the environment, a greater focus would be needed on developing land-based waste management infrastructure that supports robust collection, segregation and recycling practices.

The chemical industry in the Arabian Gulf region is one of the fastest growing industries globally whose very beginning started out of the drive to improve the region’s sustainability footprint, by converting associated gas, that was otherwise being flared, into high value chemicals and petrochemicals, thus deriving a tremendous value from what was being treated as

Through utilizing advanced technologies, Arabian Gulf chemical producers continue to invest in process and technology solutions to reduce their energy and water use

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“waste”. Today, within its own operations, the industry has achieved significant strides in improving its environmental performance by minimizing the use of energy in its plants, by converting CO2 into high value products, by reducing the waste created and discharged emissions into

the environment. Through utilizing advanced technologies, Arabian Gulf chemical producers continue to invest in process and technology solutions to reduce their energy and water use, optimize their resource utilization and reduce their energy consumption. This is evident from GPCA’s

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TOP 10 ICONIC ACHIEVEMENTS 1. GPCA is the only regional organization representing the chemical and petrochemical industry sector in the six GCC states.

2. The association voices the common interests of more than 250 member companies from the chemical and allied industries, accounting for over 95% of chemical output in the Arabian Gulf region.

3. GPCA’s members come from both the public and private sectors, reaffirming GPCA’s role to provide a platform for healthy dialogue aimed at the participation of the private-public sectors in maximizing the economic and social returns of the petrochemical industry in the GCC countries.

4. About one third of the association’s member companies is from outside the GCC, specifically from 28 countries, reflecting the industry’s global reach and opportunities to pursue cooperation and growth in the GCC and international markets.

5. Small and medium sized GCC companies offer opportunities for closer cooperation with major companies, as well as opportunities for integration and development of their technical and human capabilities.

6. Over the years, GPCA has emerged as the leading voice of the chemical industry in the GCC, with over 100 publications published to date, and key publications translated into Arabic language.

7. As a result of GPCA’s relentless efforts over the years, total business interest upheld in the region has exceeded USD 210 million through the removal of tariffs, joint remedy measures being taken and GPCA’s advocacy work.

8. GPCA is the youngest association to join the Responsible Care Leadership Group and has repeatedly being recognized for its adoption and implementation of Responsible Care globally. In 2014, GPCA launched the Gulf Sustainability and Quality Assessment System (Gulf SQAS), with 102 companies assessed to date.

9. In 2016, GPCA established Leaders of Tomorrow, considered as the first official collective step to shape the skills of the future industry leaders through stakeholder collaboration.

10. In 2017, GPCA launched the first of its kind initiative in the region – the GPCA Legacy Initiative and Legacy Award “Al Rowad” to recognize the pioneers of the chemical industry in the Arabian Gulf.

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most recent Responsible Care Performance Metrics Report, which highlights over 60 exceptional success stories in driving sustainability excellence in the GCC chemical industry.

tary commitment to enhancing Environment, Health, Safety and Security (EHS&S) performance, which over the years has continued to improve the standards of our processes and operations in compliance with internationally Almost a decade ago, we recognized best practices and adopted Responsible Care®, the established the GCC as one of global chemical industry’s volun- the top regions globally in its

GPCA’s objectives are founded upon three strategic pillars, namely, “Thought Leadership”, “Networking” and “Advocacy.”

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adoption and implementation.

Recently, we have witnessed a significant increase in the number of companies that have adopted the Global Sustainability Agenda, with Responsible Care® playing a key role through building a strong foundation and moving the industry forward in its sustainability journey.

What are the latest technologies that are disrupting the petrochemical industry?

Innovations in feedstock process technologies are some of the latest trends disrupting the industry currently, with several breakthrough projects announced in Asia and the Middle East to produce chemicals directly from coal, and more recently – crude oil. To illustrate the scale of disruption this would create for chemical markets, the COTC technology will produce at least twice the amount of chemicals per barrel of oil compared to a state-of-the-art, well-integrated

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Since our establishment in 2006, GPCA’s mandate is to drive the sustainable development and growth of the petrochemical and chemical industry in the Arabian Gulf region. GPCA is committed to serve our industry and members through our members, with our six working committees – Plastics, Supply Chain, Fertilizers, International Trade, Research and Innovation, and Responsible Care playing a leading role in championing the association’s initiatives and advancing its strategic objectives. refinery-petrochemical complex.

When compared to the current global average of about 8–10% conversion to chemicals per barrel of oil, and 17–20% from a very well-integrated complex such as PetroRabigh in Saudi Arabia, the announced COTC complex due to be built in the region by SABIC and Saudi Aramco will be capable of producing at least 40% of chemicals per barrel of oil—a quantum leap from a state-of-the-art integrated complex.

GPCA’s objectives are founded upon three strategic pillars, namely, “Thought Leadership”, “Networking” and “Advocacy.” Over the years, GPCA has established itself as the leading voice of the chemical industry in the region, and a trusted source of all regional chemical industry information. As part of our objective to establish regional industry data and information resources, we have built a comprehensive portfolio of reports

and studies, with over 100 reports published to date, and key publications translated into Arabic language. Through our Petrochemical Database, GPCA provides access to the most accurate and comprehensive database in the region covering production capacity, trade and products by company and country.

Our advocacy efforts are focused on safeguarding the industry’s common interests both within the region and globally, and promoting industry best practices, excellence and collaboration. As a result of our relentless efforts over the years, total business interest upheld in the region has exceeded USD 210 million, and we continue to collaborate with regional regulators towards the development of policies that ensure the regional industry’s interests are protected and upheld. As part of our networking pillar, we aim to provide effective platforms for members and industry stakeholders to network, share information and knowledge, and strengthen their

Innovations in digitization, artificial intelligence, and the deployment of more energy efficient technologies can add significant value to chemical businesses in the GCC and elsewhere. They can further help optimize functional excellence in manufacturing, marketing, supply chain, sourcing and various service functions.

What are the objectives of your organization?

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partnerships. GPCA represents the regional chemical industry not just within the region but globally, as we sit on the board and steering committee of the International Council of Chemical Associations (ICCA). We are also a part and an active member of the Global Plastics Alliance (GPA) and World Plastics Council (WPC).

“Advocacy” pillar and are divided into the following categories: “Our Youth”, “Our Environment”, “Our Industry”. As part of its commitment to the development of local talent in the region, GPCA in 2016 launched Leaders of Tomorrow, an initiative supported by GPCA members, and considered as the first official collective step to shape the skills of the future industry leaders through stakeholder collaboration. Now in its 8th edition, Describe your CSR initiatives since inception, the program has GPCA’s programs and initia- hosted 343 participants from 40 tives fall under the association’s universities across the six GCC states sponsored by 18 member 24 companies to date.

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We believe that the future of our planet lies in the hands of each and every one of us

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In line with the regional drive towards sustainability and the conservation of resources, GPCA’s award-winning campaign Waste Free Environment started out in Dubai as a beach clean-up event and today boasts a truly global presence stretching across 4 continents 13 countries and 23 cities in 2017. At GPCA, we believe that the future of our planet lies in the hands of each and every one of us, which is why with Waste Free Environment – together with our members – we aim to educate the public about the opportunities to incorporate sustainability into their daily habits and building awareness around the harmful impact of irresponsible litter disposal and the lost opportunities due to a lack of recycling. For its phenomenal growth and clear focus on the community, Waste Free Environment was awarded “Best Social Responsibility Initiative of the Year” for 2016 at

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market. These include Research and Innovation Summit, PlastiIn an effort to bridge the Con, Supply Chain Conference, gap between the younger and Fertilizer Convention, Responpast generations and foster sible Care Conference and the a sense of national pride, we upcoming GPCA flagship event, launched the biannual GPCA Annual Forum, taking place on Legacy Initiative and GPCA 26-28 November 2018 in MadiLegacy Award “Al Rowad” which nat Jumeirah, Dubai. Our official recognize the pioneers of the award series – GPCA Supply chemical industry in the Arabian Chain Excellence Awards, PlasGulf. First of its kind in the GCC, tics Excellence Awards and the program aims to honor indi- Responsible Care® Awards are viduals who have made extraor- designed to recognize exceldinary contributions to foster lence, encourage collaboration and strengthen the industry’s and foster innovation across the development.

GCC industry. In addition, we organize specialized industry seminars and workshops on a Describe your annual activities, range of topics that provide an opportunity for knowledge-sharexhibitions and forums ing and fostering collaboration Each year we organize six among government representaannual conferences aimed at pro- tives, industry leaders and other viding an important knowledge global and regional stakeholders. sharing and networking platform for global and regional stakeholders to exchange industry best practices and learn about the latest developments on the

the 7th ITP Oil & Gas Awards.

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Plastics Committee Fertilizer Committee Supply Chain Committee International Trade Committee Research and Innovation Committee

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At the end of 2017, GPCA’s members stood at 250, of which 213 are full members and 37 are associate members. GPCA members enjoy a number of benefits including access to industry data, exclusive network of high profile business contacts, profiling opportunities on GPCA’s website and publications, and many more.

GLOBE

GPCA M EM

In 2017, 31 new members joined the association in the categories of business partner, service provider, trader, and others. GPCA remains committed to growing its membership base as it reinforces its role as the “Voice of the chemical industry in the Arabian Gulf region”.

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GPCA’S THREE STRATEGIC PILLARS

BOARD OF DIRECTORS EXECUTIVE COMMITTEE

Yousef Al-Benyan

Dr. AbdulRahman Jawahery

Dr. Mohammed Al Mulla

Chairman, GPCA and Vice Chairman and CEO, SABIC

Vice Chairman, GPCA and President, GPIC

Treasurer, GPCA and Managing Director and CEO, QAPCO

Mutlaq Al-Morished

Dr. Ramesh Ramachandran

Ahmad Al-Ohali

Managing Director, PIC

CEO, Tasnee

CEO, EQUATE

CEO, Sipchem

Ahmed Omar Abdulla

Abdulrahman Al-Suwaidi

Ahmed Saleh Al Jahdhami

CEO, Borouge

Managing Director and CEO, QAFCO

CEO, Orpic

Hazeem Al Suwaidi

Jamal Malaikah

CEO, ADNOC Fertilizers

COO and CEO, Natpet

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Executive President, Saudi Chevron Philips

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It would be foolish to turn a blind eye on the progress robotics has brought to almost all industries. A lot of flicks have depicted robots as a foe and something that will soon oust humans of their control. Well, robots taking command over things seem very beneficial, obliterating that idea people once feared.

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hat kind of industry could take so much advantage in this innovation more than engineering? None, perhaps. Robotics has a lot to offer in executing projects and accomplishing huge goals.

Though slowly, this technology has finally changed the game of the oil and gas industry.

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Look at What These Robots Can Do

Oil and gas companies have ever since been struggling to keep their operational costs low. Efficient and reliable work systems require manpower partnered with high-class equipment. But these investments can cost large cuts on profits that is why many companies have already admitted their need for robotics.

Potentially, these metals and wires could function in a more complex manner than humans and can be made to withstand different working conditions. Companies can save resources on manpower and acquisition of complementary tools and machines if they will venture on robots that can do the 131

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In the United States, the fatality rate of workers in this field increased by 27 percent from 2013 to 2014. In every 100,000 employees, there are 16 cases of deaths by then.

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job quickly and precisely.

the fatality rate of workers in this field increased by 27 percent from 2013 to 2014. In every Another issue that is consid- 100,000 employees, there are 16 ered inevitable in this industry cases of deaths by then. are the hazards encountered by employees on the field. Occupations linked to the sector In addition to that, researchhas been ranked as one of the ers who studied the case of deadliest as mortality rate in the workplace fatality in the oil and workplace has been consistent gas industry have been pushing in number. In the United States,

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for companies to “to develop effective and appropriate strategies for preventing fall fatalities� in the sector. They want business leaders to use the power of technology to deal with this dilemma that needs active attention.

Providing solutions to these issues would be an exciting sight to robotic developers. As these objects are tailored fit for every process and operation, almost nothing can’t be taken care of in the future. Safety and efficiency can be both achieved if the industry leaders will invest in this very promising undertaking.

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Embracing the Robotic Revolution

The inclusion of robotics in any workplace is highly advantageous and can also become an asset to attract clients and investors. No businessman would like to venture in an oil rig company that will put the profits at risk by sticking into the conventional workways.

It is expected that between

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2025, the investment in the oil and gas sector will shoot to more than $700 billion.

Because of the world’s increasing demands in petroleum, companies are now doubling efforts in drilling and scouting oil in different areas. But this is highly risky and will require massive labor tantamount to what they want to reap.

These can be solved by inventions such as the Iron Roughneck which is currently deployed in oil rig operations to maximize pipe handling operations by providing integrat-

It is expected that between 2025, the investment in the oil and gas sector will shoot to more than $700 billion.

OIL AND GAS LEADERS

Digital Transformation Operational Intelligence Productivity Risk Management Smart Machine Safety through Security

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ed spinning and torque making capabilities into a single machine. This robot, manufactured

by National Oilwell Varco Inc., can be the solution to reduce the need to repeat laborious and dangerous drilling tasks.

Another robot that can be very functional for the oil and gas industry is Eni’s Clean Sea and underwater drone which is based on an automated underwater vehicle (AUV). This device can be used for offshore inspection and marine monitoring which is highly environmental.

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The silent and discreet feature of this device is highly commendable for it will not disturb sea creatures while delivering precise monitoring onboard.

Different organizations and enterprises are now responding positively to this innovation. To realize the vision of providing efficient, reliable and safe services to each client, there must be a concrete platform to step into and robotics is one. Because of the increasing urgency to develop this technology, the Asset Integrity Call for Ideas has launched a search for innovative robotic concepts for the oil and gas industry this year.

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Shifting to automation will undeniably lessen the workforce but it will also open another opportunity for the robotic industry to boom and hire people for manufacture.

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Yes, fear is still lingering that many people might lose their jobs once these robots take over human operations. Shifting to automation will undeniably lessen the workforce but it will also open another opportunity for the robotic industry to boom and hire people for manufacture.

Though this scenario may still 26 146

be under scrutiny, the benefits it will bring is still more noteworthy than the setbacks it may pose.

There is so much proof to be laid to indicate that the robotic revolution in the oil and gas sector is really happening. But still,

there is much effort to be exerted to keep it consistent and more competent. Despite the doubts, the engineering community will remain open to new possibilities as always.

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WO RLD’ S

FI RST VIRAL

ENGINEERING

MAGAZ INE

www. GineersNow.com

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