Oil & Gas Middle East - Jan 2010 by ITP Business Publishing

NEWS, DATA AND ANALYSIS FOR THE MIDDLE EAST’S ENERGY PROFESSIONALS

January 2010 • Vol. 6 Issue 1

An ITP Business Publication, Licensed by International Media Production Zone

CRACKING UPSTREAM BIDS Industry leaders on tackling the O&G barriers to entry

UNLOCKING POTENTIAL

Megarme rope access team working in Qatar.

Mid East drive for Schlumberger’s consultancy business

SKY’S THE LIMIT Rope access industry is rolling out services which will save you time and money

FULL IPTC SPECIAL REPORT - DOHA TALKS UP 2010 OPPORTUNITIES ABOUND IN MIDDLE EAST GAS DEVELOPMENTS, ACCORDING TO NOC An ITPLEADERS Business Publication

CONTENTS

JANUARY 2010

DeepLook-EM

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15 IRAQ WINNERS

24 ROPE ACCESS

38 LOOKING AHEAD

Comprehensive list of all the winners from the second round of bidding for Iraq’s lucrative oil and gas ﬁeld development projects.

How are rope access specialists servicing the upstream sector? Oil & Gas Middle East braves great heights to ﬁnd out.

Momentum Engineering brings back an old networking tradition for oil and gas professionals in the region.

16 QATAR’S FUTURE

28 BUSINESS PLANNING

48 FACE TO FACE

A look at the future for Qatar following Wintershall’s expansion in the country and an update on the massive North Field.

Schlumberger Business Consultancy on the constant need for change in the current environment for oil and gas businesses.

Norm Gilsdorf of Honeywell Process Solutions on how to lead during a crisis.

18 IPTC REVIEW

31 SAUDI UPDATE

Oil & Gas Middle East reports on all the hot topics from the IPTC conference in Doha last month.

An update on all the top projects underway and being planned in the Kingdom.

22 BREAKING THROUGH

36 DRILLING JACKS

Roundtable discussion featuring top industry ﬁgures on how a company can best break into the sector.

Looking closer at the technology behind jacking gearboxes for jack-up drilling rigs.

REGULARS

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2 WEB HIGHLIGHTS 4 COMMENT

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7 REGIONAL NEWS

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15 NEWS ANALYSIS 41 PROJECTS

January 2010 Oil&Gas Middle East

WEB HIGHLIGHTS

The online home of:

MOST POPULAR NEWS

ONLINE SPECIAL REPORT Getty Images

awarded contract by Aramco 1 KBR Rabigh JV Manifa given 2015 2 US$9bn completion date by Aramco

3 Iraq oil contracts: The winners lowest bidder for $60mn 4 Dodsal GASCO pipeline job JV postpones sulphur 5 ADNOC decision at $10bn Shah

EDITOR’S CHOICE

The ten largest oilﬁeld tech ﬁrms ArabianOilandGas.com has decided to salute the companies who spend billions of dollars, as well as millions of man-hours, on making the life of an average oil and gas worker more productive, safer and easier. What is interesting about the list is that the majority of the companies are headquartered in Houston. It is obvious that developing innovative new technologies as well as manufacturing the more common or garden oil & gas products is not something that any old Johnny-come-lately company can do. BREAKING NEWS AND VIEWS FIRST ARAMCO AWARDS SEISMIC CONTRACTS Getty Images

Argas has been awarded two contracts worth a US$373 million to conduct offshore seismic surveys for state-owned hydrocarbons giant Saudi Aramco. ArabianOilandGas.com

SABIC OBJECTS TO ANTI-DUMPING DUTIES Getty Images

SABIC and Advanced Petrochemicals Company have announced the submission of their objections to anti-dumping duties to India’s dumping committee. ArabianOilandGas.com

Oil&Gas Middle East January 2010

TOTAL, REPSOL & CNOOC WIN ALGERIA LICENCES State-owned Algerian oil Sonatrach has announced the award of exploration and production contracts for three areas in a licensing round in the North African country. ArabianOilandGas.com

WHAT COPENHAGEN MEANS FOR ENERGY PRODUCERS Peter Ward covers the news, views and fallout of the Danish climate conference in December. ArabianOilandGas.com SPOT POLL WHICH CONTRACTOR HAD THE BEST 2009?

55.6 % Petrofac 33.3 % Samsung Engineering 11.1 % Technip

SHELL AWARDED SOUTH AFRICAN PERMIT Shell has announced that it has won a Technical Cooperation Permit for a oneyear study to determine the hydrocarbon potential in parts of the Karoo Basin in central South Africa. ArabianOilandGas.com

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COMMENT

Ignore the biofools The next 30 years of energy starts with oil and gas

Registered at Dubai Media City PO Box 500024, Dubai, UAE Tel: 00 971 4 210 8000, Fax: 00 971 4 210 8080 Web: www.itp.com Offices in Dubai & London ITP Business Publishing Ltd CEO Walid Akawi Managing Director Neil Davies Deputy Managing Director Matthew Southwell Editorial Director David Ingham VP Sales Wayne Lowery Publishing Director Jason Bowman Editorial Energy Group Editor Daniel Canty Tel: +971 4 435 6257 email: daniel.canty@itp.com Senior Energy Writer Peter Ward Tel: +971 4 435 6436 email: peter.ward@itp.com Contributors Ventures, Kevin Baxter, Edward Attwood Advertising Commercial Director Jude Slann Tel: +971 4 4356348 email: judith.slann@itp.com Sales Manager David Wheeler Tel: +971 4 4356376 email: david.wheeler@itp.com Studio Group Art Editor Daniel Prescott Designer Lucy McMurray Photography Head of Photography Sevag Davidian Chief Photographer Khatuna Khutsishvili Senior Photographers Efraim Evidor, Thanos Lazopoulos Staff Photographers Isidora Bojovic, George Dipin, Lyubov Galushko, Jovana Obradovic, Ruel Pableo, Rajesh Raghav

Experts agree that natural gas alone can deliver the necessary carbon emissions improvements. he biggest gains for cleaner energy and lower emissions will come not from algal blooms, but from efficient harnessing of the energy in oil and gas. As industry leaders and technology firms converge on Abu Dhabi in January for the World Future Energy Summit the temptation will be to wax lyrical about the virtues of solar, wind and biofuels as solutions to the world’s energy and climate problems. Great leaps are being made in the clean and renewable energy sector, and the leading role Abu Dhabi is playing by funding the world’s first carbon neutral city, Masdar, should not be downplayed. If ever there was a time for eco-trumpet blowing, then the WFES is indeed that week. However, given that the world is facing a huge uphill energy challenge in the next 20 years, upstream and integrated oil and gas companies alike should use the summit to explore the more practical, and much more significant, technology gains in carbon capture and sequestration and cleaner burning fuels. Shell Qatar should be centre stage for its Pearl GTL project. With five out of the world’s six billion people still without

reliable and cheap energy it is all too easy for the lucky few to extol the merits of renewables and chastise those who turn oil and gas into energy. The truth is that achieving major reductions in carbon emissions cannot be achieved in the short and medium term without a bigger commitment to gas. Asia and South America’s coming energy demand boom aside, oil’s many derivatives, from plastics to lubricants cannot be economically replaced, (though synthetics are getting better), and nor will the world’s aeroplanes, cars and ships be whizzing around the globe after a thirtyminute recharge anytime soon. The European supermajors have been extolling their green and clean credentials for years now, and the US giants are mobilising their PR machine to the same end now. Middle Eastern firms must seize 2010 as an opportunity be loud and proud of their gas developments, and what better platform than the WFES? See you there. Daniel Canty, Editor E-mail: daniel.canty@itp.com

To subscribe to the magazine, please visit: www.ArabianOilandGas.com 4

Oil&Gas Middle East January 2010

Production & Distribution Group Production Manager Kyle Smith Production Manager Eleanor Zwanepoel Production Coordinator Devaprakash Managing Picture Editor Patrick Littlejohn Image Retoucher Emmalyn Robles Distribution Manager Karima Ashwell Distribution Executive Nada Al Alami Circulation Head of Circulation & Database Gaurav Gulati Marketing Head of Marketing Daniel Fewtrell ITP Digital Director Peter Conmy ITP Group Chairman Andrew Neil Managing Director Robert Serafin Finance Director Toby Jay Spencer-Davies Board of Directors K.M. Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin Circulation Customer Service Tel: +971 4 435 6000 Certain images in this issue are available for purchase. Please contact itpimages@itp.com for further details or visit www.itpimages.com Printed by Color Lines Press Subscribe online at www.itp.com/subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

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LEAD NEWS

ENOC’s Dragon bid rejected The 455p a share offer has been rejected by shareholders at a London meeting Shareholders of Dragon Oil have rejected ENOC’s bid to buy out the remaining shares of the company it did not previously own. The offer of GBP 4.55 a share failed to get approval from the required 75% of shares voted at a London meeting. ENOC itself was not allowed to vote with its shares, meaning a total of 12.1% of shareholders were able to block the deal by rejecting the offer. Previously, the largest of the major shareholders Baillie Gifford, Noster Capital and Carmignac Gestion, had announced they would be rejecting the offer. ENOC is now unable to sell its shares in the company until 2011. The result will come as a blow to ENOC’s ambitions to become an integrated upstream and downstream oil company and means the company will not gain access to Dragon’s US$1 billion cash pile. Small shareholders at the meeting berated directors for the apparent lack of activity in using the cash. In response to the rejection of the much discussed offer, government-owned ENOC has

billion The reported cash pile on which Dragon Oil is sitting

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ENOC still owns a controlling share of Dragon Oil, which has the majority of its interests in Turkmenistan (pictured).

declared itself a “committed long term majority shareholder in Dragon Oil”. In a statement made to ArabianOilandGas.com, the firm revealed: “We acknowledge that the deal has not been voted through. We were confident of a successful outcome, particularly following the recommendation by the Independent Committee. We also noted that RiskMetrics Group had recommended to shareholders to vote for the recommended transaction and offer price.” ENOC also revealed the firm was under no pressure to sell its current shares in Dragon. “The wider economic back-drop in Dubai has not affected our ability to complete this transaction,” it stated. In the wake of the financial news emananting from Dubai

and London in December, companies in the United Arab Emirates were re-evaluated by Moody’s last month, largely on account of Dubai World’s statement that it had requested a standstill on outstanding loans. Despite this, the general mood of companies in the oil and gas sector remains upbeat. Dolphin Energy released the following statement on the matter. “Moody’s is reviewing UAE and Abu Dhabi GRI ratings for a possible downgrade. Dolphin Energy will fully cooperate with Moody’s to conclude the review as soon as possible. Given our sound business model and our long term contracts with our customers, we are confident that Dolphin Energy is well placed. Our day to day operations will be unaffected during this time.”

ENOC was cagey about the prospects of another bid for the remaining Dragon Oil shares it does not own: “ENOC cannot comment as to whether or not it may entertain making an offer to acquire the outstanding shares in Dragon Oil.” ENOC also refused to comment on its future expansion and acquisition plans, following the rejection of the bid.

Saeed Khoory, group CEO of ENOC.

January 2010 Oil&Gas Middle East

REGIONAL NEWS

Kuwait’s $87.6bn spending plan Oil Minister sets out 20-year plan at conference held in Kuwait City in December The head of Kuwait’s oil indus- hydrocarbons assets over the try has revealed that the Gulf- next 20 years. Bloomberg reported that state plans to spend US$87.6 billion on developing the country’s Oil Minister Sheikh Ahmed Getty Images

Sheikh Ahmed Al-Sabah, Kuwait Oil Minister, has revealed the ambitious spending plans.

Al-Sabah told a conference in Kuwait City that the money will be spent “from today till 2030” and that the figure will cover both the construction of new facilities as well as maintenance and services. Kuwait also has plans to revive Al Zour, the $15 billion grassroots refinery project, planned with a capacity of 615 000 barrels per day. The massive refinery project was cancelled earlier this year due to political in-fighting and concerns over irregularities regarding the awarding of certain contracts. State refiner Kuwait National Petroleum Co (KNPC) awarded deals worth US $8.4 billion to Japan’s JGC Corp, South

Korea’s GS Engineering and Construction Corp, SK Energy and Daelim Industrial in 2008. In September, Kuwait received its first commercial cargo at its new LNG terminal. The opening of the terminal had followed months of delays which had caused a number of tankers to be moored off the coast of the Gulf state.

$15 billion

The cost of the Al Zour grassroots reﬁnery project, which is set to be revived.

Petrofac announces impressive end-of-year proﬁts for 2009 The UK-based oil and gas contractor Petrofac has announced that it is confident of delivering an after-tax profit of US$330 million for the year ending December 31, 2009. In a statement from the company, it said that the profit, which represents year-onyear growth of around 25%, is the result of “our success in securing new contracts during the year and the continued good progress across the majority of our businesses”. “In a year that has been very challenging for the oil and gas service industry we are delighted with our performance and the record revenue and

Oil&Gas Middle East January 2010

profits we expect to deliver,” Ayman Asfari, group chief executive of Petrofac said. “During 2009 our differentiated and competitive offering has helped us secure more than

$6 billion of new contracts in the Middle East, North Africa and, most recently, in the UK’s North Sea. “The high level of backlog we are now carrying gives us

Ayman Asfari, group chief executive of Petrofac was delighted with the ﬁrm’s results.

excellent revenue visibility for next year and beyond.” “Our strong performance has enabled us to continue to invest in the business. I am pleased that we have been able to attract further high calibre personnel to Petrofac. We look forward to the coming year with considerable confidence,” he added. The statement also said that the group’s backlog is expected to be approximately $7.8 billion at the end of the year, comprising approximately $6.2 billion from Engineering & Construction and approximately $1.6 billion across the other business units.

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REGIONAL NEWS

2015 target for Manifa

HIGHLIGHTS

Oilfield will have a 900 000 bpd capacity, Saudi Aramco reveals Getty Images

The hydrocarbons giant Saudi Aramco has named 2015 as the completion date for Manifa, the US$9 billion offshore oil project it is currently developing in the Kingdom of Saudi Arabia. In a statement, the company said that Manifa, which will have a production capacity of 900 000 barrels per day (bpd) of Arabian Heavy crude oil plus 65 000 bpd of condensate, will be completed in 2015, which represents a delay of around two years on previous projections from the firm. “World demand for energy, matched with new refining capabilities, led the company to plan operations at Manifa that will add 900 000 barrels per day in production capacity of heavy crude oil,” the statement said. “As engineers considered effective and efficient ways to produce the oil from the field, Saudi Aramco commissioned a

Foster Wheeler has won two contracts.

The Manifa project will have a production capacity of 900,000 barrels per day.

comprehensive environmental impact assessment, with expert evaluation by authoritative international institutions,” it added. Aramco also said that the causeway and drilling islands system that will make up the project is 60% complete with the offshore jackets being 100% complete. There will be 41 kilo-

metres of causeway and 27 drilling islands in total at the end of the project. A central processing facility being built onshore will also process 1 billion cubic feet per day (cfd) of natural gas. Turn to page 31 for a full Saudi Arabia project update.

KBR wins major Rabigh engineering contract The US-based engineering company KBR has announced that it has been awarded a contract by Saudi Aramco and Sumitomo Chemical at the companies’ joint Rabigh II Project in the KSA. The scope of works on the contract, the value of which was not disclosed, will see KBR provide basic engineering and related services for its phenol technology in support of what will be a detailed feasibility study for the project.

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“KBR will provide a basic engineering package and related services to facilitate the feasibility study, a joint initiative between Saudi Aramco and Sumitomo,” a statement released by KBR said. “The study is designed to evaluate the viability of investment in the Rabigh II Project, which includes an ethane cracker, a new aromatics complex and various petrochemical units including phenol and acetone,” it added.

The project is planned as a major expansion of the existing petroleum refining and petrochemical production complex in Rabigh, Saudi Arabia.

60K

BPD

Petro Rabigh gasoline production, out of 400 000 bpd refining capacity

Foster Wheeler has announced that it has been awarded two separate steam generator contracts by Tecnicas Reunidas Power for the Manifa Cogeneration and Main Substations Project in Saudi Arabia. In a statement the company said that one contract award is for the design and supply of two heat recovery steam generators (HRSG), while the other is for the design and supply of two packagetype steam generators. Specialist Services announced in December it has been awarded a contract for the engineering, procurement and project management (EPPM) of 150-man living quarters, switch-gear and turbine generator modules for the ONGC MHN Platform Project in India. In a statement the company said that the contract was awarded by Larsen & Toubro Limited India and the modules are intended to replace the old BHN Process Platform which was destroyed in the Mumbai High North field fire in 2005. Last month, the Shell JV Petroleum Development Oman (PDO) confirmed the award an engineering, construction and procurement (EPC) contract for the Saih Nihayda gas compression project to South Korea’s GS Engineering and Construction.

Source: Petro Rabigh

January 2010 Oil&Gas Middle East

REGIONAL NEWS

EVENTS SAUDI OIL AND GAS 2010

Technology is talked up Al-Hamli calls for further investment in oil and gas technology Getty Images

17-20 January 2010 Conference and Exhibition Riyadh, Saudi Arabia

WORLD FUTURE ENERGY SUMMIT 18-21 January 2010 Abu Dhabi, UAE

O&G MAINTENANCE TECHNOLOGY/PIPELINE REHABILITATION & MAINTENANCE 2010 18-20 January 2010 Exhibition – Manama, Bahrain

INTERSEC January 17-19 2010 Exhibition and conference, Dubai, UAE

OIL AND GAS INDIA CONFERENCE AND EXHIBITION (OGIC) January 20 2010 Renaissance Mumbai Hotel, Mumbai, India - conference

DEEP GAS CONFERENCE AND EXHIBITION (DGAS) January 24 2010 The Gulf Hotel, Manama, Upstream conference

OILTECH BAKU 23-24 February 2010 Exhibition and conference – Baku, Azerbaijan

SOUR OIL AND GAS ADVANCED TECHNOLOGY (SOGAT) 28 March – 1 April 2010 Conference – Abu Dhabi, UAE

Mohamed Al-Hamli, UAE Energy Minister, would like to see a greater investment in technology coming from the oil and gas sector.

The Minister of Energy for the UAE has urged the hydrocarbons industry to continue investing in new technologies to further enhance recovery from the world’s reservoirs. Speaking at the International Petroleum Technology Conference (IPTC) in Doha, Qatar, Mohamed Al-Hamli called for “integrated efforts and synergy between the producing and consuming countries, and the companies which conduct research and develop production technology”. Hamli also cited the massive improvements made to recovery percentages in recent years. “We should not forget that the percentage of oil production from reserves did not exceed 35% in the past. Whereas, by

Oil&Gas Middle East January 2010

virtue of the modern technology, it has gone up to 50%-60%, and according to many experts, it may even reach 80%, if current technology is developed further,” Hamli said. “The fact that half of the used energy is lost during transforming to useful forms of energy, would make us perceive the major and vital role technology can play in improving usage as well as production efficiency,” he added. Hamli also called on oil producing countries to assign a significant part of their revenues to invest in research covering exploration issues, and in establishing technology which is capable of ensuring energy supplies remain constant to consuming countries.

“The world puts almost complete reliance on fossil energy, which represents 80% of the energy in use today. We have to address major challenges. This fact requires managing science and technology to make current energy more favourable for the environment, and to develop alternative energy to add more economic value to energy and to become safer and more sustainable,” he said.

60%

Approximate percentage of oil production from reserves currently. It is hoped this figure can reach 80% through the use of technology.

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REGIONAL NEWS

Chevron reveals $21.6bn plan US firm announces bold spending plans for 2010 - only down 5% from last year

$17.3 billion

Total upstream spending Chevron is planning for 2010 - Representing 80% of total investment. Source: Chevron

decrease from projected 2009 expenditures and $1.6 billion of expenditures by affiliates, which do not require cash outlays by Chevron’s consolidated companies, is included. “Our company is certainly in a strong financial position,” said chairman and CEO Dave O’Reilly. O’Reilly also said about 80% of the 2010 spending program is for upstream oil and gas exploration and production projects worldwide. Another 16% is associated with the company’s downstream businesses that manufacture, transport and sell

Getty Images

The US supermajor Chevron Corporation has announced a US$21.6 billion capital and exploratory spending programme for 2010. In a statement, the company said that the budget is a 5%

Dave O’Reilly, CEO of Chevron, reveals the ﬁrm is in a strong ﬁnancial position.

gasoline, diesel fuel and other refined products. “Much of our 2010 spending continues to be on large, multi-

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REGIONAL NEWS

Oil demand set to rise again The president and CEO of Saudi Aramco has underlined the importance of hydrocarbons in meeting the global energy requirements of the next 20 years. Speaking while on a tour of Asia, Khalid Al-Falih said that despite the emergence of renewable energy, oil and gas would still be the major fuel source. “The developing economics of the world … are at the heart of the International Energy Agency’s forecast that world primaryenergy demand will increase,” Al-Falih said. “The forecast estimates demand will grow by 40% by 2030 — roughly 1.5 percent per year. And [the IEA forecast also estimates that] oil will remain President and CEO of Saudi Aramco Khalid Al-Falih sees oil as the top energy source. the single largest fuel in the energy mix.” Al-Falih also said that while time, there will be attractive uses other forms of energy would for our hydrocarbons other than emerge, oil will still be used burning,” Al-Falih said. “Saudi Aramco is moving its elsewhere and pointed to Saudi Arabia’s ever-growing petro- hydrocarbon products deeper chemicals industry as proof of and deeper downstream into Yearly increase in demand for oil. petrochemicals and the many his point. Total demand is to increase 40% by 2030. “Ultimately, as renewables valuable products which are Source: IEA begin to displace petroleum over derived from them.”

1.5%

Aramco brings Yanbu deadline forward A joint venture between the hydrocarbons giant Saudi Aramco and US supermajor ConocoPhillips has cut five days off the deadline date for bids to build the US$6 billion Yanbu oil refinery in the KSA. Reuters reported that bids for five engineering, procurement and construction (EPC) contracts on the 400,000 barrels per day facility have to be submitted by January 26 as opposed to the original date of January 31. “The last due date is January 26. As far as we are concerned, we have no problem in meeting the closing date,” one bidder is quoted by Reuters as saying. The packages up for grabs include a coking unit, a crude facility, a gasoline unit, a hydrocracker and a tank farm. A contract for a solids unit at the facility has been set a February 28 deadline. All contracts will be awarded by May 2010 with a completion date set for March 1, 2014.

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January 2010 Oil&Gas Middle East

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REGIONAL NEWS

Iraq oil auction: round two wins All the winners from the second round of bidding for Iraq’s oil and gas contracts Getty Images

Officials in Iraq have said that the Gulf state could soon rival Saudi Arabia with regard to oil output after the second bidding round for oil contracts in the country was concluded. Most of the major oilfields were snapped up by international oil companies, with few fields that attracted no bids. “Iraq is a powerhouse in the region and it will regain its its rightful place,” Foreign Minister Hoshiyar Zebari was reported by Reuters as saying. The absence of US oil companies from the winning bidders surprised many industry experts and appeared to contradict claims that American companies would end up being the major developers of Iraq’s vast hydrocarbon reserves. Iraq’s second round of bidding for oil projects took place last month and produced a larger number of awards than round one.

WINNERS WEST QURNA PHASE TWO Location: South Iraq. Won by: Lukoil (85%) & Statoil (15%). An as yet unnamed Iraq partner will be added at a later date with a 25% share taking Lukoil and Statoil 63.75% and 11.25% respectively. Scope: Reserves of 12.9 billion barrels. Winning consortium pledged to raise production to 1.8 million barrels per day (bpd) with a remuneration fee of $1.15 per barrel.

QAYARA AND NAJMAH FIELDS Location: Northern Iraq near the city of Mosul. Won by: Sonangol (Angola) Scope: Reserves of 800 million and 858 million barrels respectively. Sonangol pledged to raise production to 120 000 and 110 000 bpd over nine years and will be paid $5 and $6 a barrel respectively.

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MAJNOON

Scope: Reserves of 4.1 billion barrels. Consortium pledged to increase production to 535 000 bpd over Location: Southern Iraq, near Iranian border. 13 years with a remuneration fee of $1.40 per barrel. Won by: Shell-led consortium with Petronas. Scope: Reserves of 12.58 billion barrels. Consortium to raise production to 1.8 million bpd over 10 years BADRA with a remuneration fee of $1.39 per barrel produced. Location: Eastern Iraq near Iranian border. Won by: Gazprom-led consortium with Turkey’s TPAO, Korea’s KOGAS and Petronas. GHARRAF Scope: Reserves of 109 million barrels. Winning Location: Southern Iraq. consortium pledged to raise production to 170,000 Won by: Petronas-led consortium with Japex. Scope: Reserves of 863 million barrels. Consortium bpd over seven years with a remuneration fee of $5.5 per barrel. pledged to increase production to 230 000 bpd over 13 years with a remuneration fee of $1.49 per barrel.

HALFAYA

FIELDS WHICH FAILED TO ATTRACT BIDS

Location: Southern Iraq. Won by: China National Petroleum Corp.-led consortium with Petronas and Total.

Kiﬂ, West Kiﬂ, Merjan, Qamar, Gullabat, Naudman, Khashim al-Ammar and East Baghdad. Iraq’s Oil Ministry said it would develop them alone.

January 2010 Oil&Gas Middle East

NEWS ANALYSIS

NEWS ANALYSIS Qatar’s new gas deals Wintershall to drill offshore despite moratorium on North Field extension to 2014

The moratorium on North Field development has been extended, but Wintershall netted three new offshore gas licenses in December.

Qatar will not proceed with any new grassroots projects as its moratorium on further development of the North Field extends into 2014. The country is instead looking to save its reserves for the future, growing only through upgrades to existing projects or to meet an increase in domestic demand. Samuel Ciszuk, IHS Global Insight’s Middle East energy analyst reveals the significance of the move: “Qatar has repeatedly extended its moratorium on new gas projects, with the

latest news clearly underlining its dominant train of thought that its end-2010 presence in the global gas markets will be sufficient, bearing in mind the mega-field’s longevity as well as other strategic concerns.” “The news means that the North Field’s time as a largescale investment destination has passed, with mainly the existing partners being allowed to monetise some additional reserves depending on the survey outcome, severely diminishing IOC growth pos-

Oil&Gas Middle East January 2010

sibilities in the emirate going forward,” Cizsuk explains. “The news is also bad for several neighbouring countries that woke up to their own gas shortages of late and were hoping for the construction of further Qatari pipelines in the future,” he adds. Qatar is already the world’s largest LNG producer and will have a 77 million-t/y capacity by late next year and even with new greenfield projects, 12 million t/y could still be added through debottleneck-

ing, while Qatar is also likely to keep a margin for the possibility of domestic industrydriven demand growth. Recent quotes from Saad alKaabi, director of oil and gas ventures at state-owned Qatar Petroleum (QP)hinted at the direction that the country is taking. “If we go for grassroots projects, we’ll have to set up new operating projects and we’ll have new costs,” al-Kaabi told Bloomberg. Despite this news, greenfield investment in the country is still going strong. The German oil and gas producer Wintershall used the International Petroleum Technology Conference (IPTC), held in Doha, Qatar, to announce that it is planning to expand its operations in Qatar and is the operator of three offshore gas field licences in the Gulf state. A director of Wintershall, Martin Bachmann, says that the blocks are located close to the massive North Field. “We are the largest exploration acreage holder in Qatar at this point in time. We won the blocks against very stiff competition and that is because it is one of the best prospects in Qatari waters,” Bachmann said. The first exploration well in the Khuff formation of Block

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NEWS ANALYSIS

4N will be drilled offshore in 2010 with a second following soon after. Block 4N covers 544 square kilometers in water depths of around 70 metres. Bachmann said that Wintershall plans to invest around US$100 million on developing Block 4N alone. Wintershall is also operator for offshore Block 3, which was awarded in 2007. The block covers an area of 1666 square kilometers. Wintershall also operates the adjacent Block 11. Wintershall, a subsidiary of the German conglomerate BASF, also announced that it was planning to open an office in Abu Dhabi that would serve the whole region. There is a clear view that Qatar, despite apparently holding back on developments in the North Field, is still an

attractive place for investors. Mohamed Al Sayed, chief executive officer of Al Shaheen Well Services reveals: “Qatar remains a very attractive market because it is not all just about oil. The gas market is far more stable largely because the projects and sales contracts are long-term ventures.” GE is another firm which looks at Qatar as a key market. “Qatar has been a real success story for us. Its become a benchmark within GE Oil & Gas and when we look at moving into new areas we benchmark that against the Qatar experience we have had,” explains Mohammad Ayoub, regional general manager for GE Oil & Gas. With ringing endorsements such as these, Qatar is looking at a bright future, with or without a moratorium.

Mohammad Ayoub, GE Oil & Gas, says that Qatar experience for GE is unparalleled.

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January 2010 Oil&Gas Middle East

EVENT REPORT – IPTC

Saad Al-Kaabi, director of oil and gas ventures at Qatar Petroleum.

IPTC 2009 Higher investment in unconventional recovery projects and emerging natural gas opportunities dominated the Doha conference as 2009 drew to a close he International Petroleum Technology Conference (IPTC) 2009 was held at the Sheraton Doha Resort and Convention Hotel in Doha, Qatar, last month and brought together industry professionals from around the globe to discuss the technological advancement of the hydrocarbons sector. The conference was opened by Sheikh Hamad Bin Khalifa AlThani, Emir of the State of Qatar and Abdullah Bin Hamad Al-Attiyah, the Qatari Deputy Prime

Minister and Minister of Energy and Industry and the opening address was given by Mohammed Bin Dhaen Al Hamli, Minister of Energy for the UAE. Al Hamli spoke passionately about advances in oilfield technology which have resulted in oil production from fields rising from 35% to 50-60%. Al Hamli also called on the industry to ensure that young people were brought into the industry to overcome the many problems presented by an ageing oil and gas workforce.

Oil&Gas Middle East January 2010

Speakers at the event included Rich Kruger of ExxonMobil, Saad Al-Kaabi from Qatar Petroleum, Ali Al-Jarwan, Abu Dhabi Marine Operating Company and Andrew Gould from Schlumberger. The conference programme focused on dissemination of new and current technology, best practices and the importance of the “value chain” and maximising asset value. The packed exhibitor hall played host to a number of high-profile oil and gas giants

with Qatar Petroleum, Saudi Aramco, ADNOC, Kuwait Oil Company, Shell backed up by oilfield services providers including Schlumberger and Weatherford.

DAY 1 The opening day brought major announcements from Qatar Petroleum, ExxonMobil and Schlumberger (see news), aside from the opening address from Al Hamli. The biggest news was reserved for Germany’s

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EVENT REPORT – IPTC

upstream division of BASF, Wintershall. The company kicked off a lively event with the news it is planning to expand its operations in the Middle East and is the operator of three offshore gas field licences in Qatar. Speaking to Oil & Gas Middle East at IPTC, a director of Wintershall, Martin Bachmann, said that the blocks are located close to, but are not part of, the massive North Field. “We are the largest exploration acreage holder in Qatar at this point in time. We won the blocks against very stiff competition and that is because it is one of the best prospects in Qatari waters,” Bachmann said. The first exploration well in the Khuff formation of Block 4N will be drilled offshore in 2010 with a second soon following. Block 4N covers 544 square kilometers in water depths of around 70 metres. Bachamann said that Wintershall plans to invest around US$100 million on developing Block 4N alone.

The principal conference discussion points revolved around new global carbon management initiatives, footprint minimisation in drilling and completion and the latest technological developments in cleaner fuels.

DAY 2 The second day of IPTC took a closer look at the natural gas industry and what opportunities were currently available to Gulf countries developing their liquefied natural gas (LNG) industries. Speaking ahead of the Copenhagen climate conference, there was a general consensus that natural gas would emerge as a real winning industry in 2010, as the desire to drop oil and coal in favour of cleaner burning gas was almost guaranteed to occur. The technical session panel of the day discussed the environmental advantages of LNG, a fuel source from hydrocarbons that produces far fewer emissions than oil or coal. Senior

Ayyoub expects a similar level of drilling and workover activity to continue throughout 2010.

CAUTIOUS AL SHAHEEN PREDICTS STABILITY IN 2010 Khaled Ayyoub general manager at Al-Shaheen Well Services Company says $100 million revenues reflect a tough market What brings you to IPTC?

Al-Shaheen has been established since June 2008, but Weatherford has been here for a long time. As a joint venture between a subsidiary of Qatar Petroleum and Weatherford, we have come to IPTC to support what they are trying to achieve here. Has 2009 been a tough year in Qatar?

Actually it was a little bit below expectation. We are still busy but due the rig count decline in Qatar, which declined from 32 to around 22 in 2009, this obviously affected our business. However, despite this we have still managed to maintain the same level of activity in Qatar in terms of drilling and completing wells. Through our wide portfolio of services we can provide in Qatar we have managed to compete with the big players that operate in the market. What are your expectations for 2010?

We have revenues of $100 million which is also our target in 2010. You will see a lot of activity in Qatar over the next two quarters. Some of them will be tenders some will be single sourced. Or the customer has the option to extend the current deal it already has in place. We are open for all options. We are here whatever QP calls for. That is why we have done a joint venture. But it is not only QP in Qatar, you have big players like RasGas, Maersk, Oxy, Shell, Wintershall, Total. They are our customers globally and know us from elsewhere. We have no problem with IOCs and NOCs. Are you optimistic about a pick-up in drilling spend?

2010 will be similar to 2009. I think we’ll see the same levels of activity plus or minus 5%. I don’t think there will be any major change. Q2 in 2011 is when we are expecting it to really change. Visitors ﬂock to the ExxonMobil stand at the IPTC exhibition.

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January 2010 Oil&Gas Middle East

EVENT REPORT – IPTC

professionals from BG Group, RasGas, Shell Qatar, Middle East Total and ExxonMobil participated in the discussion. The interest in LNG was evident in the IPTC exhibition hall with both the Pearl GTL and Qatargas 4 being popular stands with the visiting delegates, who came from all over.

DAY 3

A buoyant conference session was held discussing many topics.

The key theme which emerged on the final day of IPTC 2009 was a call for higher investment in unconventional recovery methods, with speakers implor-

ing NOCs to support highrisk investments that will allow more oil to be produced from already existing, and ageing oilfields. High ranking industry professionals from Eni E&P, QP, Saudi Aramco, Kuwait Oil Company, Total and Shell E&P International spoke in the conference. The panellists discussed the challenges around increasing hydrocarbon recovery in existing fields and developing future energy resources which are energy intensive and more expensive.

SCHLUMBERGER’S TRIPLE LAUNCH AT IPTC 2009 CEO Andrew Gould defends cuts and says Middle East business unaffected

Oil&Gas Middle East January 2010

The offshore stimulation vessel performing the MaxCO3 Acid treatment in Qatar’s North ﬁeld.

Schlumberger CEO Andrew Gould attended the IPTC forum in Doha.

Getty Images

Schlumberger rolled out the big guns at the IPTC, with CEO Andrew Gould flying into Doha to promote the launch of three new products by the oilfield services giant. The first, the EM Pipe Scanner, is an electromagnetic casing inspection tool that can run through tubing to produce a quantitative scan of the interior surface and thickness of the production casing. “The unique ability of the EM Pipe Scanner to measure corrosion in production casing without having to pull completion tubing saves customers significant cost,” Zied Ben Hamad, marketing and technology manager, Schlumberger Wireline said. The second product, OPTICall, is a thermal profile and investigation service. This distributed temperature sensing (DTS) service tracks fluid movements in real time along the wellbore, helping to detect leaks, monitor gas lift and evaluate fractures to improve field productivity. “The OPTICall service offers a low-risk, economical way to troubleshoot issues in all types of wells,” Claude Durocher, Slickline business manager, Schlumberger said. The third, the MaxCO3 Acid degradable diversion acid system is a polymerfree, non-damaging acidising system that can be used for both matrix and fracture stimulation in carbonate reservoirs with permeability contrasts or natural fractures. “The MaxCO3 Acid system is designed to be used in oil or gas wells in both open-hole and cased-hole intervals, regardless of deviation. Treatment design, execution and evaluation are optimised using Schlumberger proprietary software applications,” the company said. Speaking earlier in the conference Gould had moved to defend Schlumberger’s recent cost cutting measures, stating the core areas of the business had not been affected. “We have protected our key research and development expenditures with only minimal adjustments in the overall plan,” Gould concluded.

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EVENT REPORT – IPTC

$6BN INVESTMENT COMING TO FRUITION Esbern Hoch head of geoscience, director, Maersk Oil Qatar speaks to Oil & Gas Middle East What’s you message to the industry at IPTC 2009?

We’ve been here [Qatar] since 1992 and we felt it was important for us is to show the industry the success we have had. Also we wanted to support Qatar Petroleum, our partner in the Al Shaheen field. Has the fluctuating oil prices in 2009 affected you?

When you undertake a US$6 billion project like Al Shaheen Field Development Plan you define your investments based on expectations of a fluctuating oil price. In the late 1990s we were down to $9.50 per barrel, so this crisis hasn’t been nearly as bad as that. What does 2010 hold for Maersk Oil Qatar?

We are installing a huge number of offshore facilities at the moment. We have more than 30 facilities installed on our offshore platform locations and they will be finalised by the middle of Q2 in 2010. We have also started a pilot scheme for gas injection. We need to maintain the reservoir pressure and currently using water, but we can be even more efficient if we use gas.

Hoch says Maersk Oil Qatar is ﬂat out working on the Al Shaheen ﬁeld development plan.

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LIFTING EXPECTATIONS

January 2010 Oil&Gas Middle East

ROUNDTABLE

STEPPING INTO THE RING How does a company without a proven background in the local oil and gas business enter the industry? Oil & Gas Middle East sat down with four industry experts to see how that barrier can be overcome THE PANEL

CHAIR: DANIEL CANTY, EDITOR OF OIL & GAS MIDDLE EAST

TAWFIQ ABU SOUD

KARIM KHAIRY NASR

ISSAM SHARARA

TERRY WILLIS

Executive director of infrastructure, water and power at Drake & Scull International. He is looking to expand the company’s construction and engineering portfolio into the upstream oil and gas business.

Operations manager, Middle East, TecWell. Nasr spent nine years with Hallibuton as an E-Line engineer, and now represents the Norwegian acoustic logging company from the Abu Dhabi base in Mussafah.

VP international business development, Middle East, Cudd Energy Services. Cudd offers a broad range of technical and specialised oilfield services to companies engaged in the E&P activities.

Managing director of the Energy Industries Council – A UK based trade association. The EIC provides services to help member companies expand their business in the oil, gas and power sectors in the region.

If national oil companies demand local experience as a prerequisite, how do new firms penetrate the market?

no newcomers can enter the market. That in itself is bad for competition and ultimately bad for the oil companies. Of course, when you are specialised to the extent that you are the only person in the market that can do what you do, you don’t have a problem entering any markets. They need you. However, if you are in EPC the oil companies can throw up barriers to new entrants because they think there are already enough players in the market. Terry Willis: A good example here is Petrofac. Having previously not secured any upstream work in Abu Dhabi, despite an impressive regional portfolio,

in September 2008 they signed a joint venture agreement with Mubadala. Since then they have secured around $7 billion worth of Abu Dhabi projects. Essentially, if you have something to offer and something to give, then finding the right partner is the key, and there are plenty of success stories out there. Tawfiq Abu Soud: We have on our staff a tremendous wealth of experience in the oil and gas industry. However, in spite of this, the only way we can penetrate the market is to partner with already well established players in the market and the major EPCs. The biggest problem we are facing is with West-

ern companies. The American and European firms seem reluctant, whereas we have been very successful with the Asian companies who are more willing to play ball.

Issam Sharara: Where a contract calls for local experience and local services, we have gone into joint venture with a local company or our existing local agent for that specific project. When a local base is demanded we can activate that local joint venture relationship. Tawfiq Abu Soud: That may work when you already have oil and gas projects on your portfolio, but without that experience it is much harder to even qualify. This means only existing companies will get work, and

Oil&Gas Middle East January 2010

Are agency agreements an effective way to manage regional business?

Karim Khairy Nasr: We have tried several relationships with agents around the region, and speaking from my own personal experience they have been a disaster. Over the last five years I have managed to establish just one good agent presence in Saudi Arabia, and that pretty much covers it as far as good

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ROUNDTABLE

A full range of industry experts were present to discuss how a company can best break into the upstream oil and gas market in the Middle East. regional agency experiences go in this area. Issam Sharara: Agency agreements can be problematic for sure, but in many cases in the Middle East you have to be a registered company in that country in order to get work there – particularly in the Middle East, so in terms of actual investment the risk can be lower. Terry Willis: Every six weeks I am approached by members who want out of agency agreements because they perceive them as failing in their role. I tend to play devil’s advocate and ask “When did you last see him?” More often than not people reply “a few years ago”. It is

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important to remember these agents have their own business to run, so unless you are prepared to put the effort and time into fostering these relationships they can quite easily fail through a lack of effort. Companies are very happy to sign on the dotted line and then wait for the work to come in, and in this market that attitude simply does not work. It’s got to be a 50/50 relationship.

tomorrow by putting in low bids then it’s a dangerous game. The terms you agree with an oil and gas company set the tone for how your whole relationship with them will be defined. If you go in cheap, you will be forced to stay at that level. Tawfiq Abu Soud: We are not in the business of losing money, and we aren’t going to bid so low we lose on a project just for the sake of saying we’ve done it. Doctoring entry pricing is not something Drake & Scull Are Asian firms carrying engages in. To get into a marout projects at margins deemed ket we want to do it right on reatoo cheap by local companies? Karim Khairy Nasr: If com- sonable terms. I have a responpanies are willing to sacrifice sibility to the shareholders of the profits of today for business the company.

Are there softer markets to enter?

Terry Willis: Oman is a good example of a softer entry market. PDO put their contracts on line and its open bidding. Once the technical bid has been accepted the next round is online bidding. That’s when the fun starts.

CONCLUSIONS: Organic growth into the oil and gas sector may once have been possible, but today entry must be through strategic partnerships or alliance agreements. When the industry returns to rampant growth this may become the case again.

January 2010 Oil&Gas Middle East

SPECIALIST ACCESS

ACCERSEASS ALL A

Rope access specialists are targeting the upstream market with an array of in-house hydroblasting and NDT service packages Simplicity and speed of offering are vital components.

pstream and midstream oil and gas installations offer some of the most hostile working conditions, and most complicated infrastructure, of any industry in the Gulf. From oil storage tanks to working at heights of over 100 metres cold-cutting steel on jack-up rigs, access to critical components is made doubly difficult by the stringent safety requirements imposed on contractors. With this in mind, Oil & Gas Middle East sought

Ian Caffery, general manager of ArabianAccess Solutions.

out the leading rope access and hydroblasting experts in the Middle East, and found that for firms which can offer time and money saving service packages, business is booming. Rope access originated in France and was imported in the UK in the early 1980s. Initially used onshore and accepted as a safe and cost effective alternative to traditional access systems such as scaffolding, rope access soon found its way into the offshore oil and gas industry. The leading firms operat-

ing in the UAE say that a rope access system can be set up safely and quickly and have the technician at the worksite in minutes where other access systems can take hours or even days to erect. “The simplicity and speed of access to high or otherwise restricted areas for oil and a gas company is big business for us,” explains Billy Harkin, managing director of Megarme. “Increasingly we’re being called out for offshore installation shut-downs. Just recently

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SPECIALIST ACCESS

OFFSHORE CASE STUDY Project Brief A satellite platform in the Northern Emirates requires upgrading, including complete re-coating of topsides and jacket. The platform has no accommodation on board therefore the workforce is transported daily by boat. Traditional Method Transport vast amounts of scaffold which will take several trips with supply boat and many lifts with the onboard crane (max lift 5 tonnes). Transport scaffolding team to erect scaffolding for complete platform which can take many weeks. Once scaffolding is erected transport coating team and equipment to complete re-coating which would take around seven weeks. On completion of re-coating, mobilise scaffolding team to dismantle staging and transport back to beach again taking many lifts and journeys. Rope Access Method Transport rope access team with rope access equipment and re-coating equipment. Hang ropes in position required and start re-coating on the same day; it will take around seven weeks to complete. Benefits At the front end, there is no requirement for scaffolding, thus fewer boat journeys and crane lifts, and less labour cost in terms of accommodation, meals and travel. Transportation by boat can prove difficult via a dependency on weather conditions. The rope access technicians are all qualified painters/blasters and will complete the project in the same time as deck painters/blasters (sometimes scaffolding can be obstructive when spraying or blasting). At the back end of the project, de-mobilising can be done in one journey again saving boat trips and time. Rope access has a tremendous safety record and can reduce manhours, which equates to fewer opportunities for accidents to happen. Source: Project case study provided by Arabian Access Solutions

we completed a tower demolition for Dubai Petroleum.” From the call out, a team can be assembled, equipped and flown out to a rig, with work underway within 24 hours. The ease of mobilisation, and the fact that a total shut-down is not required (as is often the case with a scaffold solution), is a big factor when time is money. Ian Caffery, general manager of Arabian Access Solutions says the advantages of speed onshore are magnified for jobs in the offshore environ-

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ment. “With a scaffold team you need an additional ten to twelve beds, plus the added time it takes to organise the logistics of all the equipment and installation. From arrival, a rope access team can be working in around thirty minutes.” Whilst clearly specialised work, which requires an astonishing head for heights, the standard process is not to look for abseiling experts and give them a trade. Rather, skilled tradesmen in their field are selected and given the rope Skilled tradesmen are taught to abseil, rather than the other way round.

January 2010 Oil&Gas Middle East

SPECIALIST ACCESS

JARGON BUSTER NDT Non-destructive testing is a wide group of analysis techniques used in science and industry to evaluate the properties of a material, component or system without causing damage. Because NDT does not permanently alter the article being inspected, it is a highlyvaluable technique that can save both money and time in product evaluation. UT In ultrasonic testing, very short ultrasonic pulse-waves with centre frequencies ranging from 0.1-15 MHz and occasionally up to 50 MHz are launched into materials to detect internal flaws or to characterise materials. The technique is also commonly used to determine the thickness of the test object, for example, to monitor pipework corrosion. MPI Magnetic particle inspection (MPI) processes are non-destructive methods for the detection of surface and sub-surface defects in ferrous materials. They make use of an externally applied magnetic field or electric current through the material, and the principle that the magnetic flux will leave the part at the area of the flaw.

access training, often in-house. “Whether they be electricians, welders, inspectors first, we bring in our trainer from the UK who will bring them up to required standard for rope access work. Of course, we do try to enhance the skill sets once people are working for us. So if someone is a UT inspector, we would train them up to MPI. We provide all of the internal training necessary for offshore such as the H2S training and helicopter evacuation certifications,” explains Harkin. Megarme has carried out inspection and maintenance work for most of the region’s biggest oil and gas companies. “We’ve worked for Dolphin and RasGas in Qatar, ZADCO, GASCO in the UAE and the firm is planning to open a Bahrain office in 2010, with the hope of penetrating the lucrative Saudi Arabian market. “We have found in the past it is very difficult to crack the Saudi Arabian upstream sector from a remote office. Bahrain will hopefully act as something of a gateway for us there,” says Harkin. The array of tasks which the leading rope access firms are now regularly called upon is impressive, and growing. From simple hydroblasting to strip paint before an inspection, right through to super-high pressure jetting at 40,000 psi (which can cut steel) and ultrasonic and magnetic particle inspection services, the firms have swollen their skill sets in order to capture rewarding upstream inspection contracts. “We are evolving into a credible inspection agency in our own right. Rather than being primarily a rope access outfit, we are constantly rolling out additional services, otherwise companies

Oil&Gas Middle East January 2010

Hydroblasting and non-destructive testing have been rolled out as typical service offerings by the Middle East’s leading rope access ﬁrms.

“Megarme is evolving into a creditable inspection agency in its own right” Billy Harkin, managing director, Megarme in the inspection business will move into the rope access field,” observes Harkin. Megarme is currently aiming to have a full radiographic inspection centre in Abu Dhabi, open in 2010. “Even though it represents a relatively small part of the inspection remit, if a company is tendering for a full three-year inspection contract it wants you to have it all in house – it’s simpler for the end user to have one company to deal with rather than half a dozen subcontracting firms,” he says. Caffery concurs, adding that the specialist skills and inspection work remit is a vital part of the Arabian Access offering. He says the crucial difference is being able to provide a sta-

ble of services geared around the needs of the oil and gas industry, and that the marketplace for qualified firms is still relatively uncrowded. “Having spent a year working at Dubai Petroleum as a project manager I was able to see lots of gaps in the market compared to the services offered in the North Sea oil industry, so bringing the skills and equipment over to plug that gap has been our remit since we launched a year ago.” The combination of rope access and non-destructive testing capabilities has proven not only recession-resistant, but in fact, a tough climate was the ideal time to launch, Caffery explains. “As a company we

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SPECIALIST ACCESS

were not deterred by the collapse in confidence around our launch in January 2009. We’re in a position where we can offer huge savings to the industry, so in many ways it was a good time to launch and we’ve surpassed expectations for our first year.” Despite the dangers inherent in working at height, or in hard-to-reach areas, rope access has a strong safety record, and is fast being recognised as one of the safest methods of carrying out operations that are perceived as dangerous. “The statistics show that rope access is one of the safest methods of carrying out work at height. In the civil engineering field this is important, but that HSE requirement is stepped up another level in the upstream world,” says Harkin.

Arabian Access Solutions is also pioneering new techniques for some of the most dangerous and unappealing jobs in the oil business – tank cleaning. It is still common in the Gulf for a team of workers to enter storage tanks and manually dig the sludge and residues out. “Obviously there is a huge HSE issue there, not to mention climbing up and down 20 metre ladders with sludge on their boots in the heat of the summer. Those are truly horrible conditions to work in. We have a modified suction pump solution which we lower into the tank, which means people don’t have to go in at all. It cuts down the number of people going in to the tank and in terms of scheduling, it slashes the time taken to get the job done.”

As oil companies and EPC contractors alike continue to keep cost control at the top of the agenda for 2010, going direct to rope access and hydro blasting and non-destructive testing certified firms could spell significant cash savings. “Quite often, a lot of our upstream work has been subcontracted down from the EPC company, through the various layers of the construction or maintenance chain. It ends up sub-contracted to a fairly high level, but of course if companies came to us direct there are far fewer people creaming a margin off the service cost, so it could be a lot cheaper,” concludes Harkin.

Billy Harkin, managing director of Megarme.

• ROPE ACCESS • TENSION NETTING • HYDRO BLASTING • CAMERA SURVEY • ENGINEERING SERVICES • TECHNICAL RESOURCES Industrial City of Abu Dhabi Mussafah PO Box 129446 Abu Dhabi, United Arab Emirates Phone: +9712 550 2495 Fax: +9712 550 2494 Email: info@arabianaccesssolutions.com Al Barsha Business Centre PO Box 450079 Dubai, United Arab Emirates Phone: +9714 371 3355 Fax: +9714 371 3331 Email: info@arabianaccesssolutions.com

www.arabianaccesssolutions.com

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January 2010 Oil&Gas Middle East

INTERVIEW

21ST CENTURY MODEL In the E&P industry, change is constant. Helping upstream players reinvent themselves to meet global energy demands is Schlumberger Business Consultancy one are the days of “that’s how we’ve always done it” management. For today’s national oil companies and their international partners in the Gulf, change is the only constant. Oil and gas companies are continually striving to reinvent themselves to meet the challenges of finding and accessing new reserves, optimising mature reservoirs, and answering global demands for

pany has established a brand new regional office, (in addition to its Kuwait City entity), in Abu Dhabi, which will be staffed by two vice presidents and ten consultants. “The Gulf is obviously an extremely interesting part of the world. SBC is a combination of management consultancy skills and E&P knowledge which is very well aligned with the needs of the region’s national oil companies which have to develop their capabili-

“It used to be the case that companies chose either a very localised or a centralised model, but thanks to the evolution of communication technology, we now see ways of developing and optimising that choice” Antoine Rostand, global managing director, SBC energy. Significant skill shortages are further compounding these difficulties. In 2004, Schlumberger Business Consulting (SBC) was established under the sponsorship of group chairman and CEO Andrew Gould to help oil and gas companies realise dramatic performance improvements and sustained growth. Oil & Gas Middle East met Antoine Rostand, the global managing director of SBC to discuss the firm’s fresh start in the Middle East for 2010. The com-

ties and import best practices,” explains Rostand. “What is interesting about SBC in the Middle East is that we are the only consultancy firm with both operational and strategic insight to be able to impact the oil and gas business. It’s a very technical business, so the deep understanding of the upstream industry is a real advantage in that regard.” Helping oil and gas companies face the energy challenges of the 21st century has been the firm’s remit since its inception,

Oil&Gas Middle East January 2010

Antoine Rostand says oil and gas companies simply must continue recruiting. and Rostand says the issues that global E&P businesses are facing today mark a step change for energy companies, coupled with an urgency which cannot be understated. “We need to provide cheap energy to the world, especially the five billion people who lack

adequate energy at this point in time. This challenge is compounded by the fact that we have to reduce the carbon footprint of the hydrocarbon based industry which is a very complex problem indeed.” In this context, SBC is focused on oil and gas part of

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INTERVIEW

SBC HAS ADVISED:

63% of the Major IOCs 70% of the Major NOCs the energy equation, which represents about two thirds of the primary energy needs of the world. The oil and gas business is facing a complex array of challenges. There are new frontiers, new technologies, new entrants to the market, and critically, a lack of people. “New Frontiers is quite a different concept in the Middle East compared to, say, the North American market because of the abundance of natural resources in the region. Tight gas is perhaps a good example of what would be a New Frontier in the Middle East environment.” Rostand says that it is almost impossible to characterise a typical project for the SBC client list, which reads like a Who’s Who of Big Oil. “In the last six years we have done more than 600 projects, for more than 40 clients in over 30 countries. There is a huge scope and diversity in what we do.” Around 20% of SBC’s deployments are strategic in nature, for example consulting a company on the best entry strategy for doing business in a new domain, such as Brazil, or Saudi Arabia. The business is currently dominated by people development issues. “Around 40% of our work is helping oil companies develop their in house skill sets, such as petrophysicists, or geologists. We do a lot of work in speeding up the capability development within teams.” The remaining slice of SBC’s activities is operational in nature, overcoming technical issues or improving production rates.

www.arabianoilandgas.com

One operational issue which has come to dominate the SBC pipeline is how to optimise a business in an era of centralisation vs localisation. “For a lot of clients, the major issue is to explore what aspects of the business should be run locally or by regional affiliates, versus what should be dealt with centrally. It used to be the case that companies chose either a very localised or a centralised model, but thanks to the evolution of communication technology, we now see ways of developing that choice,” says Rostand. The demand slump and drying up of international credit lines has changed the focus for many oil companies. “With the financial crisis we have moved from a very bullish view where most of our work was growth orientated, with a big focus on recruiting more people and developing organisations for growth. Recently, however, it has certainly become much more about efficiency.” Slacking off on recruitment now is likely to cause serious operational problems when demand kicks into overdrive again. Rostand says the SBC line is that firms simply must keep recruiting.

Optimised efﬁciency have become the buzzwords for the oil and gas sector.

tackle the challenges that are Now the focus has shifted going to emerge in the next 20 to optimising operations, or 30 years.” logistics and inventory and the NOCs are in a position to make real organisational EFFICIENCY DRIVE According to Rostand, the great- improvements by employing est gains for oil companies in best practice techniques. “Of course, the strategic the next five years are likely to come from changing working imperative of a national oil practices. “During the last five company is different to priyears we had a boom, and dur- vate or public oil companies. ing periods of frantic activity They have immense resource wealth, but their mission now is to continue to increase their capabilities. They have done a lot in recent years, but in developing the tougher resources such as tight or Antoine Rostand, global MD, SBC sour gas they must gear their strategy around doing this by themselves,” says Rostand. “A whole framework has people don’t focus on optimis“The NOCs have already been developed from the uni- ing their supply chains, or the become the largest producversities up to handle the flow of way companies do business. ers, so the emphasis must be people needed by the oil and gas Cost tends to become less of an on continuing that momentum industry. We absolutely need to issue when the priority is to get and taking the new challenges keep recruiting to ensure the as much oil as possible out of head on and tackling them,” industry has the lifeblood to the ground.” he concludes.

“NOCs have immense resource wealth, but their mission is now to continue to increase their capabilities”

January 2010 Oil&Gas Middle East

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SAUDI ARAMCO PROJECT UPDATE Khalid Al Falih, Saudi Aramco’s CEO (right) with Saudi Arabian Oil Minister, Ali Al Naimi at the Petro Rabigh launch in November 2009.

KSA PROJECT FOCUS Saudi Aramco’s major project development programme is pushing ahead - CEO ork in no upstream environment has the potential to raise the pulse of an oil company like the promise of work in Saudi Arabia. Not only does it have the potential to meet much of the world’s future energy needs, it also holds the opportunity to work on genuinely exciting and cutting edge recovery projects. With more detailed analysis of Saudi Aramco’s projects, tenders and news available on ArabianOilandGas.com, to kick the new year off Oil & Gas Middle East has digested recent activity in Saudi Arabia and brings you a project snapshot from around the country. Comments from CEO Khalid Al-Falih, and information from Saudi Aramco shines a light on the state of play for the Kingdom’s largest upstream oil and gas projects.

www.arabianoilandgas.com

IN HIS WORDS - KHALID AL FALIH Addressing delegates at the World Oil and Gas Assembly in Bangalore last month, Khalid Al-Falih, CEO of Saudi Aramco said that the Manifa and Khurais projects were vital to addressing the long-term call on oil, and that Aramco was aggressively ramping up exploration, improving recovery and building its reserves every year. “While oil fields in many basins throughout the world are becoming increasingly mature, the share of the Middle East in global oil supplies will steadily rise. I am proud to say that Saudi Aramco has played, and will continue to play, an even bigger role as one of the key suppliers of oil to India, Asia and the whole world,” said Al Falih. Here are the project specific excerpts from his keynote address.

On Manifa “Our Manifa project, at 900 000 barrels per day capacity, is one of the largest heavy crude oil increments ever commissioned by the industry, but distinctive aspects of the field made for costs not typically associated with development. Manifa lies in shallow waters in the fragile ecology of the Arabian Gulf, requiring unique access solutions involving drilling islands. When we made this investment decision, oil prices were above $70 per barrel, and as in the Khurais example, demand prospects were strong. After contracts were awarded, however, prices declined to below $35, demand projections fell, but costs did not proportionally decrease, clouding the robustness of the investment. We reviewed the programme, and with some execu-

tion plan modifications, including deferring completion by two years, decided to continue.” On Khurais “At 1.2 million barrels per day capacity, the Khurais program is the single-largest crude increment ever commissioned by the industry. When we made this investment decision, oil prices were in the range of $55 per barrel with expectations of stronger prices; oil demand projections were healthy; and costs in the usual range. Mid-programme oil peaked at around $140 per barrel. And yet toward the end of the programme, prices had fallen to below $35 and demand had tumbled due to the financial crisis, while costs spiraled, doubling our investment.”

January 2010 Oil&Gas Middle East

SAUDI ARAMCO PROJECT UPDATE

MANIFA OFFSHORE OILFIELD

Work on the Manifa project is scheduled to close in 2015.

Getty Images

ZULUF OILFIELD

problem surrounding the field, is the large amount of heavy sour crude, which is expensive to process. In the current economic conditions, it has been thought best to delay the project. UPDATE: The Manifa project has now been given a 2015 completion date by Saudi Aramco. The company revealed in a December 2009 statement that the project will be completed for the new date, representing a delay of around two years on previous projections.

Aramco has awarded offshore exploration contracts to ARGAS. reserves worth $373.3m to Arabian Geophysical and Surveying Co (ARGAS). The Saudi-based company expects to start gathering the data in the Zuluf oilfield in November 2010, it said in an e-mailed response, adding that work would be completed in two years. Seismic work at Zuluf is an extension to the shallow water contract which Argas completed last month and would extend to the Iranian border.

Oil&Gas Middle East January 2010

Getty Images

Zuluf is one of the countryâ&#x20AC;&#x2122;s largest oilfields and is located near the Safaniyah and Marjan oilfields. Exploration and development has been expected at the field since Aramco announced it would be exploring non-producing fields such as the Red Sea, Nafud Basin and northern and western Saudi Arabia. UPDATE: Aramco has awarded two seismic contracts to explore offshore oil and gas

At an estimated cost of US$9 billion, the Manifa oilfield was expected to begin production in mid-2011. The scope of the field includes 900,000 bpd of oil, 120 million scfd sour gas, 50,000 bpd condensate and 950,000 bpd of produced water. Among the known contractors working on the project are Saipem, Halliburton, Foster Wheeler, Technicas Reunidas and Jan De Nul Group. It was announced in April that the project was expected to be delayed by six months. The main

www.arabianoilandgas.com

SAUDI ARAMCO PROJECT UPDATE

SAUDI ARABIAN GAS PROJECTS Saudi Arabia is well known for its huge unexploited natural gas resources. There has been a lack of investment in the gas sector due to highly subsidised prices, increasing production, exploration and processing costs of gas. A strategy was put in place back in 2006 to add 50Tcf of non-associated reserves between 2006 and 2016 through new discoveries. Approximately three hundred development and exploratory wells are reportedly being planned by 2010. According to Saudi Aramco, exploration and development

will also be commencing in nonproducing areas such as the Red Sea, Nafud basin and northern and western Saudi Arabia. UPDATE: Saudi Arabia has announced new projects in the Kingdom. These developments look set to change the countryâ&#x20AC;&#x2122;s gas outlook for good. It was announced recently that the largest ever gas plant in the Kingdom is to be built in order to supply utilities and some industries. The new gas plant is expected to process more than 1.8 billion cubic feet per day (cfd) of gas. It will process

all offshore non associated dry gas and this will go a long way to meet rising demand for utilities and some industries. The Wasit gas development programme at Manifa is split into several projects that include building gas processing facilities, two offshore gas platforms, one tie-in platform, subsea power and communication links and pipelines. Canadaâ&#x20AC;&#x2122;s SNC-Lavalin said in September that it would provide engineering and design work and project management services for the project.

YANBU Snapshot: Yanbu is a joint venture between Saudi Aramco and ConocoPhillips. It is a full conversion refinery designed to process 400 000bpd of Arabian heavy crude. Update: Five days has been cut off the deadline date for bids to build the refinery. Bids for five EPC contracts on the facility now have to be submitted by January 26. All contracts will be awarded by May 2010, with a completion date set for March 2014.

Getty Images

The Wasit gas development programme includes two offshore gas platforms, one tie-in platform, subsea power and communication links and pipelines.

Oil&Gas Middle East January 2010

www.arabianoilandgas.com

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OFFSHORE TECH FOCUS

BOXING

CLEVER

Hyosung’s award winning jacking gearbox.

Korea’s Hyosung claims its new jacking gearboxes give both reliability and power for consistent offshore performance

il rig drilling platforms are extremely high cost capital investments. So it is understandable that the designers and end users of such massive structures have reliability and availability at the very top of their list of ‘must haves’ when they consider much of the critical equipment.

And for jack-up platforms, that are designed to float to a location and then have the drilling platform ’jacked up’ off the surface of the sea, one piece of critical equipment is surely the jacking gearbox. Jacking gearboxes provide the power to lower the platform legs onto the sea floor and then lift the enormous weight of the drilling

platform high enough above the water so there is no interference to drilling operations from wave motion, even in stormy and windy conditions. Hyosung Corporation of Korea claims its jacking gearboxes give both reliability and power. SKF provides 23 bearings in each of their latest designs of gearbox, including

Leaders in Fluid Engineering 36

Oil&Gas Middle East January 2010

www.arabianoilandgas.com

OFFSHORE TECH FOCUS

the SKF CARB toroidal roller bearing which delivers the highest carrying power in the smallest package of any bearing type. Any system is only as strong as the key components in the design. If any single components should fail, the entire system fails. It was with these thoughts in mind that WonCheol Hong, senior designer at Hyosung Industrial Machinery began his project to design a smaller, lighter, more powerful jack-up gearbox for oil drilling platforms, than his company had delivered before. One major component in the design is the bearings that support the shafts and gears as they lift the enormous weight of the platform at 1.5 feet per minute. The sheer weight of the platform and the very demanding operating conditions mean that minor deflections of the shafts cannot be avoided. And to pre-

Hyonsung’s gearbox.

vent that they cause premature bearing failure in gearbox appliCARB bearing focus: cations the bearings selected CARB is a self aligning radial bearing with an inner ring that moves must be able to accommodate independently of the outer ring, enabling the shaft to move smoothly these deflections in all condiwithout inducing axial loads. It therefore accommodates misalignment tions throughout the life of the like a spherical roller bearing and axial displacement like a cylindrical gearbox. Hong’s final selection roller bearing. Additionally it carries extremely high loads due to relaincluded SKF tapered roller tively long and barrel shaped rollers. bearings, spherical roller bearBecause the rollers are barrel shaped, and the inner and outer rings ings, and CARB bearings for the are correspondingly concave and symmetrical, the bearing will always very demanding load carrying position itself in the raceway for optimum load carrying performance. in the planetary gears. The first drilling platform The CARB design eliminates the equipped with these gearboxes problem of induced axial loads started drilling off the coast of resulting from thermal expanChina in January 2009 and will sion of the shaft. This enables two stay there for three years. The major design options: oil rig, operated by an Ameri1. Keep the current bearing can company, uses 54 Hyosung dimensions and radically increase reducers to jack up the drilling bearing service life. platform, having 18 gearboxes 2. Downsize and achieve the same Cutaway of a CARB bearing. on each of its 3 support legs. or better operational reliability. Considering the rig platform has a maximum drilling variable deck load of 3,673 tonnes it sider that such gearboxes need tions. Later models had a 550 is easy to understand why Hyo- to give reliability and power. kips carrying capacity with prosung and the rig operator con- Add to that the fact that the oil portionally more holding and drilling platform is expected to severe storming capacities. Hong is proud of his work be active for 20 years, and so are the gearboxes, then reliability in designing the gearbox. “I am really means reliability. Espe- very happy with the technical cially if the operator wants to support I received from SKF in have efficient and trouble free this project. The use of CARB, operation during the anticipated and its self-aligning ability, total of 2000 hours period of lift- allowed us to design low-profile ing and lowering of the platform gears that are wider, stronger once it is positioned, after the and give greater torque capacvessel is moved to various drill- ity than previous designs. This ing sites during those 20 years. allowed us to downsize the The first gearboxes produced gearbox with confidence, and have a lifting capacity of 440 this was proven in tests when kips (kilo-pounds) and a holding we loaded the gearbox plancapacity of 700 kips in normal etary gears to three times the conditions, extending to 1 000 expected loads with no probkips in severe storming condi- lems,” says Hong.

TECH TALK

Leaders in Fluid Engineering www.arabianoilandgas.com

January 2010 Oil&Gas Middle East

EVENT REVIEW Jimmy Larsen, comme rcial director of event sponsors Momentum Engineering.

Event: Oil Field Get-together Location: Monarch Hotel, Dubai Sponsor: Momentum Engineering Attendees: 86 Next event: January 28th

Tim Bingham, general manager, s. World Fuel Service

Michael Reed, principal consultant, DNV with Darrel Dennis, sales manager, Forum Middle East.

manager, Gerry Ryan, regional Halliburton, es, vic ser & drill bits ernaInt s Mark Porter, Frank’ t. Eas dle Mid tional

NETWORKING SMASH HIT Despite tight times in 2009, Momentum Engineering put the year to bed by delivering a long-forgotten social tradition for upstream professionals ith 25 years of experience serving the oil industry, Ruth’s Chris Steak House launched monthly Oil Field Get-togethers at the restaurant, in The Monarch Dubai, in the hope of continuing a tradition that has been long forgotten in this market. Jimmy Larsen, commercial director of Momentum Engineering, the sponsors of the December OFG said, “An Oil Field Get-together is a casual forum for oil and gas professionals to come and meet their peers and industry colleagues with the objective of developing their

contact database, stimulating potential trade and deals, and catching up with old friends.” This monthly event has been born with the hope that the Oil and Gas industry boundaries will be broken down on a personal level – and by inviting a different company to be the sponsor each month, thus allowing new perspectives and topics to be shared on a regular basis with a key speaker. “This, we hope, will encourage people working in these close-knit industries to mark these regular dates in their diary so that this ongoing networking opportunity becomes a

Oil&Gas Middle East January 2010

regular occasion for them,” continues Larsen. In attendance at the December OFG were over 15 leading oil companies including the sponsors of the December event, Momentum Engineering. The OFG offers a networking session both pre and post lunch, and a convivial tone was set from the off. With fine fare the friendly forum managed to overcome what has been dubbed a cut-throat year, and acquaintances and contacts were made amidst a flurry of business card exchanges. Sentiment about the year ahead was at best cautiously

*ANUARY

28 In 2010, the OFGs will be held on the last Thursday of every month. The upcoming meeting will be on January 28th.

optimistic, though many industry insiders expected tough times to continue at least in the first half of 2010.

www.arabianoilandgas.com

EVENT REVIEW

Julie Zollikofer, ofﬁce manager, Energy Industries Council, Mutaz Bakhiet, business information ofﬁcer, Energy Industries Council.

Matthew Furness, bus development executiveiness and Kevin Talbot, divisio, manager, J.Ray McDer n mott, with Bob Br Bririritton ttto ttto t nn,, ggen en e era eraal manag age ag geer, er,r, Bri Briidon Br d nM do Miiddl Mid ddl ddle lee Eas EEaas ast.t.

Mike Harvey, drilling superintendent, ENSCO Oceanics, Craig W Miller, general manager, Technical Access Services.

Mark Bobeck, VP sales, TSC Offshore Corporation, Harish Ramachandani, Machinery People.

“As we continue to sail in some unchartered waters, 2010 will be a slower year than previously forecast, however there still continues to be a degree of optimism from global operating companies to pursue investments in some of the lesser developed areas,” said Mike Smith, vice president sales, Mid-

dle East region, Maclean Electrical (incorporating Noksab). Smith acknowldeged that oil and gas focused outfits have had a slower year mainly due to the number of deferred or cancelled projects, however Maclean Electrical’s global growth has continued through being recognised as a strategic service provider.

“Awareness is the single biggest challenge this area will throw up next year, with a lower level of projects and the same number of players, awards will be tougher to achieve, margins will get tougher, and then payments will have to be closely managed. Therefore becoming smarter and more alert will

be the order the day in 2010,” added Smith. “We anticipate that quite a few projects that were delayed in 2009 will now be implemented. We anticipate a good year but with pricing considerations. Retrieving payments outstanding was a major issue in 2009,” said Larsen.

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PROJECTS

Ongoing and upcoming projects Information is supplied by Ventures Middle East. Tel: +971 2 622 2455. URL: www.ventures-uk.com BAHRAIN Project Title

Client

Consultant

EPC Contractor

Budget ($M)

Status

Redevelopment of the Reﬁnery in Bahrain

Bapco

Chevron Lummus Global (US)

Not Appointed

100

FEED

Redevelopment of Awali Onshore Oil Field

Bapco / National Oil and Gas Authority (NOGA) / Occidental Petroleum Corporation (US)

Not Appointed

1000

Lube Base Oil Project

Bapco / Nestle

Jacobs Engineering

Samsung Engineering Company

430

Execution

Offshore Field Development

Bapco

Fugro Robertson Limited (UK)

Occidental Petroleum Corporation / PTT Exploration and Production (PTTEP)

2000

Execution

Project Title

Client

Consultant

EPC Contractor

Budget ($M)

Status

Project Kuwait Scheme

KPC / KOC

Sproule Associates Limited (Canada)

Not Appointed

7000

FEED

Gas Pipeline From BS-131 to Mina Al Ahmadi

KOC

AMEC

Petrofac International

544

Execution

Crude Oil Manifold at GC 27

KOC

Not Appointed

EPC Bid

Gathering Center 16 in West Kuwait

KOC

Fluor Corporation

Not Appointed

750

EPC Bid

Gathering Centre 24 at Sabriya

KOC

AMEC

SK Engineering & Construction

621

Execution

Repair and Replacement of Pipelines in Southeast Kuwait

KOC

Arabi Enertech

Execution

Instruments Installation and Maintenance Co. (ImCo)

Execution

Not Appointed

750

FEED

Study

KUWAIT

Replacement of Oily & Efﬂuent Water Lines at GC 23 and GC 25

KOC

Efﬂuent Water Injection Phase I & Sea Water Injection Phase II

KOC

Transit Line from Abdali Main Point to Abdali Mid-Point Manifold

KOC

Not Appointed

EPC Bid

Crude Oil Flow Pipelines in North Kuwait

KOC

Not Appointed

110

EPC Bid

Gas Compressor at GC 16 & Gas Reinjection at Minagish

KOC

Safwan Petroleum Technologies

Execution

Lower Fars Pilot Project (LFPP)

KOC

Al Khorayef Commercial Co. Ltd

100

Execution

LPG Filling Plant at Umm Alaish

KOTC

Not Appointed

100

EPC Bid

Mina Al Ahmadi Reﬁnery Upgrade - Phase 1

KPC

Almeer Techical Services Company/ Flour Corporation

140

Execution

Upgrade of South Ghudair Gathering Centre

KOC / SAT

Arabi Enertech

Execution

Flowlines Upgradation & General Support Services

Saudi Arabian Texaco/ KGOC

Mushrif Trading

Execution

AMEC, Kuwait

Fluor Corporation

Maintenance Services for KOC

KOC

Mina al Ahmadi - Doha West Pipeline

Ministry of Energy (Electricity & Water)

Penspen International (UK)

Gas Booster Station 160

KOC

AMEC, Kuwait

Snamprogetti Kuwait

649

Execution

Maintenance of Mina Abdullah Reﬁnery in the South

Kuwait National Petroleum Company (KNPC)

Kharaﬁ National, Kuwait

111

Execution

Jurassic Early Production Facility (EPF)

KOC

Not Appointed

1500

EPC Bid

Booster Station 132

KOC

Not Appointed

800

EPC Bid

Drilling Service in Kuwait - Contract 4

KOC

Weatherford Oil Tools Middle East

Execution

Al Zour North Project - Pipeline Packages

Ministry of Energy

Not Appointed

136

EPC Bid

New Base Oil Plant at Shuaiba

KNLOC

Not Appointed

400

Dry Crude Storage Tank at Gathering Centre 1

KOC

Bridge and Roof Company

Execution

Gathering Center 14 in the South East

KOC

Almeer Technical Services

Execution

EPC Contractor

Budget ($M)

Status

Mashael Group of Companies

200

Execution

NJS Consulting/Al Dowailah

Petrofac, Kuwait

125

Execution

Heavy Engineering Industries & Shipbuilding Company (Heisco)

128

Execution

Study

Oman Project Title

Client

Sohar Bitumen Reﬁnery

Sohar Industrial Port Company (SIPC)

Nimr C Full Field Water Injection Project

PDO

Harweel Cluster Phase - 2

Petroleum Development Oman (PDO)

Crude Oil Stabilisation Unit at Mukhaizna

Occidental Mukhaizna

Duqm Reﬁnery & Petrochemical Complex

Oman Reﬁneries & Petrochemicals Company (ORPC)

Consultant

Al Hassan Engineering

Execution

AMEC, Abu Dhabi

Petrofac International, Oman; Galfar Engineering & Contracting, Oman;

960

Execution

Not Appointed

EPC Bid

Not appointed

Not Appointed

7000

Study

Asphalt Plant at the Sohar Reﬁnery Complex

Sohar Reﬁnery Company

Engineers India Ltd.

Not Appointed

FEED

Gas Compressor Station at the Nimr ﬁeld

Oman Gas Company

Tecnicas Reunidas / Worley Parsons

Galfar Engineering & Contracting, Oman

Execution

Octal Petrochemical Project at Salalah Free Zone

Octal Holding

Uhde

National Construction & Trading Co. LLC (NCTC)

700

Execution

Kauther Gas Compression Project

PDO

Petrofac International, Oman

350

Execution

Marmul Polymer Flooding Project

Petroleum Development Oman (PDO)

Bahwan Engineering Company (BEC)

150

Execution

Two New Gas Pipelines in the South of the Sultante

PDO

Not Appointed

101 - 250

EPC Bid

Depletion-Compression Project at Saih Nihayda

Petroleum Development Oman (PDO)

Not Appointed

350

EPC Bid

Pipeline Between the Nimr Field and the Port City of Salalah

Oman Gas Company

Not Appointed

EPC Bid

Marmul Central Development - Phase 3

Petroleum Development Oman (PDO)

Gulf Petrochemicals Services, Oman

Execution

Qarn Alam EOR Project - Off-plot Package

PDO

Galfar Engg. & Cont.

139

Execution

Qarn Alam EOR Project - On-plot Package

PDO

MEG WorleyParsons

Dodsal

450

Execution

Methanol Plant in Salalah

Oman Oil Company (OCC) / UK GTL Resources / Mubadala Development Company, Oman / Vitol

Jacobs Engineering

GS Engineering & Construction

910

Execution

Oil & Gas Pipeline in Musandum

Oman Oil Company (OCC)

Not Appointed

500

EPC Bid

Saih Rawl Gas Depletion Project

PDO

Bahwan Engineering Company (BEC)

545

Execution

www.arabianoilandgas.com

Tecnicas Reunidas, Oman

January 2010 Oil&Gas Middle East

PROJECTS QATAR Project Title

Client

Consultant

EPC Contractor

Budget ($M)

Status

Petrochemical Complex at Ras Laffan

QP/Total

Not Appointed

3000

Concept

Low-Sulphur Condensate Storage Facility at Ras Laffan

Dolphin Energy Limited, Qatar

Al-Shaheen Oil Reﬁnery

Qatar Petroleum

Qatar Engineering & Construction Company

212

Execution

Axens France

Not Appointed

5000

EPC Bid

Block 4 North

Qatar Petroleum/Anadarko

Not Appointed

Wintershall, Germany

150

Execution

Acid Gas Removal Pant in Dukhan

Qatar Petroleum (QP)

Technip, Qatar

Not Appointed

350

EPC Bid

Melamine Project at Mesaieed

Qatar Melamine Co.

Eurotecnica/Urea Casale

QECC

250

Execution

Petrochemical Complex at Ras Laffan

QP /ExxonMobil Corporation

Not Appointed

3000

FEED Bid

Subsea Pipelines Pkg. for Qatar Gas 3 & Qatar Gas 4

Qatar Petroleum (QP)

J Ray McDermott, Dubai

100

Execution

Oryx GTL - Phase 2

QP/Sasol/Chevron

Not Appointed

1400

Study

Gas Pipeline Network within Ras Laffan Industrial City

Qatar Petroleum

Mott MacDonald Qatar

Larsen & Toubro, Qatar

117

Execution

Oleﬁns Complex

QP/ Shell

Not Appointed

2500

Study

Condensate Reﬁnery at Ras Laffan

Laffan Reﬁnery Company

Technip, Qatar

Daewoo Engineering & Construction, Qatar; GS Engineering & Construction, Qatar;

602

Execution

Pearl GTL Project - Pipelines Package

QP/Royal Dutch/Shell

JGC Corporation/Halliburton

J Ray McDermott

150

Execution

Barzan North Field Development

ExxonMobil Corporation/Qatar Petroleum (QP)

Chiyoda Corporation/J Ray McDermott

Not Appointed

8000

FEED

Pearl GTL Project - Package C8

QP/Royal Dutch/Shell

JGC Corporation/Halliburton

Veolia/Saipem/Al Jaber

101 - 250

Execution

Pearl GTL Project - Storage Tanks Package

QP/Royal Dutch/Shell

JGC Corporation/Halliburton

CB&I

400

Execution

QVC Expansion Project

QVC

Not Appointed

31 -100

Study

Ras Laffan-Mesaieed Ethylene Pipeline

Q Chem ll / Ras Laffan Oleﬁns Co.

Punj Lloyd

Execution

Methanol Capacity Expansion at Mesaieed

Qafac

Mustang Tampa

Not Appointed

501 - 750

FEED

Gas to Liquids Project-3 (Pearl GTL)

QP/Royal Dutch/Shell

JGC Corporation/Halliburton

Consolidated Contractors International Company (CCC)

16000

Execution

Low Density Polyethylene Unit at Mesaieed

Qapco

Uhde

Uhde/Tefken

549

Execution

Al Shaheen Project - Packages 17 & 18

Maersk Oil Qatar

NPCC

600

Execution

HFO Bunkering Project

Qatar Petroleum

Maritime Industrial Services

Execution

Condensate Reﬁnery at Ras Laffan - Phase 2

Laffan Reﬁnery Company

Not Appointed

800

Study

Al Khaleej Gas Development Phase 2 - Onshore Package

Exxon Mobil/ Ras Gas

Chiyoda

Chiyoda/Technip

1600

Execution

Plateau Maintenance Project

Qatargas

Technip, Qatar

Not Appointed

1200

EPC Bid

Al Shaheen Project - Package 13

Maersk Oil Qatar

J Ray McDermott

185

Execution

Two New Glycol Regeneration Trains in Dukhan

Qatar Petroleum

Not Appointed

300

EPC Bid

Worley Parsons

Ras Gas 3 - Trains 6 & 7

Rasgas 3

Chiyoda Foster Wheeler

Chiyoda/Technip

13000

Execution

Qafco V

Qafco

Not Appointed

Saipem/ Hyundai Engineering & Construction Co

3200

Execution

Maintenance on Platforms at Measieed Reﬁnery

Qatar Petroleum (QP)

EPC Bid

Headworks for Muaither RPS and Associated Pipelines

Qatar General Electricity & Water Corporation (Kahramaa)

Al Waha Contracting

109

Execution

Receiving & Loading Facility at Ras Laffan

Qatargas

Qatar Kentz

100

Execution

Common Sulphur Project

DEL

Washington Group International

Not Appointed

101 - 250

FEED

Pearl GTL Project - Wellhead Platforms Package

QP/Royal Dutch/Shell

JGC Corporation/Halliburton

J Ray McDermott

300

Execution

Al Khaleej Gas Development Phase 2 - Offshore Package

ExxonMobil Corporation/ RasGas Company limited (Ras Laffan Liqueﬁed Natural Gas Company );

Chiyoda Corporation, Qatar

J Ray McDermott, Qatar

300

Execution

Gas Sweetening Facilities Integrated Project at Mesaieed

Qatar Petroleum

Worley Parsons

Not Appointed

350

EPC Bid

Doha Urban Pipeline Relocation Project

Qatar Petroleum

Tebodin

Punj Lloyd

181

Execution

Pearl GTL Project - Package C2

QP/Royal Dutch/Shell

JGC Corporation/Halliburton

Linde

900

Execution

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Oil&Gas Middle East January 2010

www.arabianoilandgas.com

PROJECTS SAUDI Project Title

Client

Consultant

EPC Contractor

Budget ($M)

Marjan, Zuluf and Safaniya Oil Fields Upgrade

Saudi Aramco

WorleyParsons

J Ray McDermott

250

Status Execution

South Rub Al Khali Gas Development

SRAK

KCA Deutag Drilling

2000

Execution

5 Sulfur Recovery Units in Uthmaniyah & Shedgum

Saudi Aramco

Imad Company for Trading & Contracting

150

Execution

Shbab-1 Oil Pipeline Project

Saudi Aramco

Stroytransgaz

200

Execution

Sasref Reﬁnery - Ultra-low Sulphur Diesel Complex

Sasref

ABB Lummus Global

350

Execution

Jubail-2 Export Reﬁnery - Pipeline and Offsite Package

Saudi Aramco/Total

Technip

Gulf Consolidated Contractors (GCC)

300

Execution

Onshore Maintenance Potential Project

Saudi Aramco

RHM/CAT/Suedrohrbau

300

Execution

Sasref Reﬁnery - Ultra-low Sulphur Diesel Complex

Sasref

ABB Lummus Global, Saudi Arabia

350

Execution

Gas Oil Separation Plant at Hout Field in Divided Zone

Al Khafji Joint Operations (KJO)

Toyo Engineering Company

Consolidated Contractors International Company (CCC)

400

Execution

New NGL Facilities at Berri Gas Plant

Saudi Aramco

Not Appointed

300

Concept

Jubail-2 Export Reﬁnery - Distillation and Hydrotreating

Saudi Aramco / Total

Tecnicas Reunidas (TR)

1200

Execution

Petrochemical Complex - Polyoleﬁns Package

SCP

Parsons E&C

Daelim Industrial Company

1200

Execution

Ras Tanura Reﬁnery

Saudi Aramco

WorleyParsons

Not Appointed

8000

FEED

Ras Abu Ali Upgrade

Saudi Aramco

Zuhair Fayez Partnership Consultants

Wasea Bulk Plant

Saudi Aramco

Shedgum - Yanbu NGL Line Expansion - Phase 2

Saudi Aramco

Ras Tanura Reﬁnery - DHT Unit

Saudi Aramco

Reﬁning & Integrated Petrochemicals Complex

Nama

Ebgaig - Al Khobar Natural Gas Pipeline

SWCC

Ethylene Amines Project At Jubail

Arabian Amines Company

Foster Wheeler

Jacobs Engineering / Burns & McDonnell Engineering

Bonatti S.p.A

160

Execution

Not Appointed

250

EPC Bid

Suedrohrbau

200

Execution

Samsung Saudi Arabia Ltd.

500

Execution

Not Appointed

1500

Study

Not Appointed

100

FEED

Hyundai E&CC / Hanwha E & C

300

Execution

Jubail - 2 Export Reﬁnery - Aromatics Plant

Saudi Aramco / Total

Axens

Samsung Saudi Arabia Ltd.

650

Execution

Jubail-2 Export Reﬁnery - Coker Unit Package

Saudi Aramco / Total

Foster Wheeler

Samsung Saudi Arabia Ltd / Chiyoda Corporation

850

Execution

Karan Field Exploration - Platforms Package

Saudi Aramco

Clough-Zuhair Fayez Partnership

J Ray McDermott

500

Execution

New Domestic Reﬁnery in Jubail

Saudi Aramco

Not Appointed

5000

EPC Bid

Jubail Petrochemical Complex - Phase 3

Sipchem

Not Appointed

8000

EPC Bid

Petrochemicals Complex in Yanbu

Saudi Aramco / Sabic

Not Appointed

3000

Study

Karan Field Exploration - Onshore Elements Package - Gas Facilities

Saudi Aramco

Foster Wheeler /A. Al Saihati , A. Fattani & Al Othman Consulting Engineering Company (Sofcon)

Hyundai Engineering & Construction Company (HDEC)/ Petrofac

600

Execution

Jizan Economic City Export Reﬁnery

Ministry of Petroleum and Mineral Resources

Not Appointed

12000

FEED

Ammonia Plant In Jubail

Sipchem

Not Appointed

200

FEED

Al Khafji Oil Processing Facilities Expansion

Al Khafji Joint Operations (KJO)

Not Appointed

400

FEED

Yanbu Export Reﬁnery - Hydrocracker Package

Saudi Aramco/ConocoPhilips

Kellogg Brown & Root (KBR)

Not Appointed

1200

EPC Bid

Jubail-2 Export Reﬁnery - Storage Tank Package

Saudi Aramco / Total

Technip, Saudi Arabia

Punj LIoyd Ltd / Petro Steel

1000

Execution

Karan Field Exploration - Offshore Elements Package

Saudi Aramco

Petrocon Arabia, Saudi Arabia

J Ray McDermott

1000

Execution

Haldor Topsoe

Fertiliser Complex Expansion at Jubail - Urea & Ammonia Plant

Saudi Arabian Fertilizer Company (Safco)

Not Appointed

150

EPC Bid

Wafra Steam Injection - Phase 2

Chevron / Saudi Aramco

Saudi Arabian Texaco INC

500

Execution

Jubail - 2 Export Reﬁnery - Plant Utilities Package

Saudi Aramco / Total

Technip

SK Engineering & Construction

150

Execution

Manifa Oil Field Redevelopment - Onshore Package

Saudi Aramco

Foster Wheeler

JGC Corporation / TR / Snamprogetti

2360

Execution

J Ray McDermott, Saudi Arabia

800

Execution

Kellogg Brown & Root

Not Appointed

17000

FEED Execution

Manifa Oil Field Redevelopment - Platforms Package

Saudi Aramco

Ras Tanura Petrochemicals Complex

Saudi Aramco / Dow

ASU at Jubail

National Industrial Gas Company (GAS)

Samsung Saudi Arabia Ltd.

300

Petrokemya - 4 in Jubail

Petrokemya

Technip / Aker Kvaerner

Not Appointed

FEED

Upgrade of the Oil Reﬁnery at Yanbu

Saudi Aramco Mobil Reﬁnery Company Ltd. (Samref)

Worley Parsons, Saudi Arabia

2000

Execution

Kayan Petrochemicals Complex at Jubail - HDPE Package

Sabic / Saudi Kayan Petrochemical Company

Huanqiu Contracting & Engineering Corporation (HQCEC)

600

Execution

UNITED ARAB EMIRATES Project Title

Client

Consultant

EPC Contractor

Budget ($M)

Status

Replacement of Oil & Water Pipelines

Adma - Opco

Technip / Worley Parsons, Abu Dhabi

Costain

900

Execution

Adnoc Storage Facility in Hamriyah Free Zone

Takreer

Not Appointed

150

EPC Bid

Borouge Complex Expansion - Phase 2: Offsites and Utililies

AUH Polymers Company

Foster Wheeler

Technicas Reunidas

1230

Execution

Hail Field Development

ADCO / Gasco

Not Appointed

749

Study

Crude Oil Pipeline Replacement

Zadco

Not Appointed

300

EPC Bid

OGD-3/ AGD-2 - Pack 2

GASCO

Bechtel

1460

Execution

OGD-3/ AGD-2 - Pack 4

GASCO

Bechtel

Snamprogetti

1420

Execution

Green Diesel Project in Ruwais

Takreer

Wood Group Mustang

GS Engineering & Construction

350

Execution

Umm Shaif Gas Injection Facilities

Adma - Opco

WorleyParsons

Hyundai Heavy Industries

1597

Execution

Modiﬁcations to 41 Well Head Towers

Adma - Opco

WorleyParsons

Not Appointed

150

EPC Bid

Zakum West Gas Processing Facilities Project

Adma - Opco

Technip

Technip / NPCC

300

Execution

Asab Full Field Development

ADCO

Foster Wheeler

Petrofac

1000

Execution

Bab Oil ﬁeld Development - Phase 2

ADCO

Technip

SK Engineering & Construction Company

805

Execution

Gas Processing Facility in UAQ

Gulf Energy Company

Technip/Kvaerner

Not Appointed

120

EPC Bid

Umm al Dalkh Full Field Development

Zadco

Not Appointed

650

Study

Sahil Phase-2 Development

ADCO

Foster Wheeler

Tecnicas Reunidas / CCC

250

Execution

Onshore and offshore Sour Gas Development

ADNOC / ConocoPhilips

Fluor Corporation

Not Appointed

10000

EPC Bid

IGD - Gas Processing Platform - Pack 6

Adnoc / Adma-Opco

Fluor Corporation Abu Dhabi

NPCC

405

Execution

Borouge Complex Expansion - Phase 2: Oleﬁns Conversion Unit

AUH Polymers Company

ABB Lummus Global, Abu Dhabi

Samsung Corporation, Dubai

300

Execution

Fertil Plant Expansion

Fertil

Jacobs Engineering

Samsung / Uhde

1200

Execution

OAG Network-Das Island Compression Facilities

Adgas

Fluor Corporation

Technip

610

Execution

OAG Network-Pack 2 - Das Island to Ras Al Qila Pipeline

Gasco

Fluor Corporation

NPCC

241

Execution

Oil&Gas Middle East January 2010

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PROJECTS Project Title

Client

Consultant

EPC Contractor

Budget ($M)

Status

OAG Network-Pack 3 - Ras Al Qila to Habshan Pipeline

Gasco

Fluor Corporation

CCC

400

Execution

OGD-3/ AGD-2 Pack 3

GASCO

Bechtel

1241

Execution

Borouge Complex Expansion - Phase 2: Ethane Cracker

AUH Polymers Company

Linde

1100

Execution

National Petroleum Construction Company

1800

Execution

Stroytransgaz, Abu Dhabi

418

Execution

Development of Qusahwira & Bida Al-Qemzan Fields

ADCO

Taweelah-Qidfa Gas Pipeline

DEL

Asab Gas Development (AGD) Modiﬁcations - Package 1

GASCO

Veco Engineering

Technip

408

Execution

Jebel Dhanna Crude Oil Storage Tanks

Adco

ILF Consulting

Not Appointed

100

EPC Bid

LNG Storage Hub in Techno Park, Dubai

DMCC / Techno Park / LNG Impel

Not Appointed

2000

FEED

Umm Al Lulu Oil Field Development

Zadco

Tebodin Middle East, Abu Dhabi

Not Appointed

1500

EPC Bid

New Reﬁnery in Fujairah

AGOL

Mott MacDonald

Not Appointed

1000

Study

Borouge Complex Expansion - Phase 3: PDH & Phenolics Complex

AUH Polymers Company

Not Appointed

1000

Study

Abu Dhabi Gas Grid

Abu Dhabi Gas Industries Company (Gasco)

Terasen International ( Lootah BC Gas )

Not Appointed

1000

Pre FEED Bid

Zirku Production Facilities Debottlenecking

Zadco

Technip, Abu Dhabi

Not Appointed

450

EPC Bid Execution

Washington Group International / Veco Engineering

Upper Zakum - Fujairah Oil Pipeline

IPIC/Conoco Phillips

WorleyParsons

China Petroleum Construction Corporation

3290

Flowlines & Wellhead Installations to ADCO

Abu Dhabi Company for Onshore Oil Operations (ADCO)

Mott MacDonald

Al Husam General Contracting

100

Execution

Tank Terminals in Fujairah

Emarat

Penspen International

Not Appointed

EPC Bid

Khubai-Margham Gas Pipeline

Margham Dubai Est.

Parsons Brinkerhoff

Not Appointed

FEED

Integrity Enhancement of Fire Protection System at Umm Al Nar Reﬁnery

Takreer

Not Appointed

EPC Bid

Integrated Gas Development (IGD) - Das Island Process & Utilities Package

Adnoc / Adgas

Fluor Corporation

Hyundai Heavy Industries(HHI),Abu Dhabi

1000

Execution

Satah Full Field Development

Zadco

Tebodin Middle East, Abu Dhabi

Not Appointed

250

FEED

Expansion of Sulphur Handling Facility in Ruwais

Takreer

Washington Group Int'l

Dodsal

272

Execution

Cathodic Protection on Wellhead Casing in Bab and Ruwais Fields

ADCO

ILF Consulting Engineers, Abu Dhabi

EMDAD LLC, Abu Dhabi/ Alsa Engineering

Execution

Gas Exploration Facilities - Kahaif, Moveyid and Sajaa

BP Exploration Operating Co Ltd(BP Sharjah)

AMEC, Abu Dhabi

Not Appointed

500

FEED

Expansion of Ruwais Reﬁnery - Package 1

Takreer

Bechtel

SK Engineering & Construction Company

2100

Execution

Expansion of Ruwais Reﬁnery - Package 2

Takreer

Bechtel

GS Engineering & Construction

3100

Execution

New SCADA System at Umm Shaif and Lower Zakum

Adma - Opco

WorleyParsons

Telvent

Execution

Integrated Gas Development (IGD) - Ruwais Storage Tanks Package

Gasco / Adnoc

Fluor Corporation

Chicago Bridge & Iron (CB&I), Dubai

533

Execution

NGL Pipeline from Asab to Ruwais

Gasco

VECO

Dodsal

153

Execution

Gas Injection Topsides at Upper Zakum

Zadco

Technip

Not Appointed

FEED

Shah Full Field Development

Adco

Foster Wheeler

CCC / Tecnicas Reunidas

250

Execution

Integrated Gas Development (IGD) - Ruwais 4th NGL Train Package

ADNOC / Gasco

Fluor Corporation, Abu Dhabi

Petrofac International / GS Engineering & Construction

2100

Execution

reliability focused engineering

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contact: don van rooyen email: donvr@aesseal.co.za tel: +971 4 2669595 / +971 2 6778700 cell: +971 (0) 508120142

Oil&Gas Middle East January 2010

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January 2010 Oil&Gas Middle East

FACE TO FACE

FACE TOFACE

Norm Gilsdorf, president of Honeywell Process Solutions

The big projects are still out there They recently announced the opening of the control room there, so it’s great to be part of such an important project.

have been working on those for a number of years now, so we have some excellent experience in that particular field.

Has day to day management changed then? As a company we have been very careful with travel in 2009. However, my travel budget is probably two or three times higher because staying in touch with all the relevant teams is absolutely vital.

Where will the hotspots of activity be in 2010? Today we see more projects coming up in the Caspian and Arctic regions, and in the Middle East the principal activity driver is gas. Projects geared around getting gas out of the ground and marketing that will be big, and downstream we expect to see more projects in the years to come. It stands to reason as this is where the feedstock is. How soon those come up will be linked to the general economic recovery and demand for petrochemical products.

What’s the most exciting project you are involved in? Personally it’s got to be the Pearl GTL project in Qatar. That’s a huge project, literally one of the largest in the world. Honeywell was selected by Qatar Shell to design and implement the integrated process automation and control system for the world’s largest Gas to Liquids (GTL) plants. The project covers the whole upstream and downstream spectrum, it’s very exciting.

Are you pitching for business on the UAE’s huge sour gas project in Abu Dhabi? We have had discussions regarding the Shah field development in Abu Dhabi. We are very strong in process control, but also crucially fire and safety, as well as our H2S detection solutions. We are well placed to provide an integrated solution. In Kazakhstan we are working on some notoriously sulphur rich projects and we

Are things looking up for upstream players in the region? I look at the region as one of the first areas to emerge from last years prevailing conditions back to growth. We have already seen positive figures from Asia and I think it will spread here next. The UAE for us is a very important centre, and although we have the capability in all the GCC countries to serve domestic markets, Abu Dhabi is our hub. Oil production projects in the Middle East have continued throughout the last economic cycle, so comparatively speaking the Middle East is faring well.

How do you lead a company in a recession? In my role as a leader the big challenge is keeping my team focused on the customer and delivering solutions that bring value despite tough macro economic conditions. The key is all about communication, both with team leaders around the world and making sure we always listen to our customers to meet the conditions they are in.

“We have had discussions regarding the Shah ﬁeld development in Abu Dhabi”

Oil&Gas Middle East January 2010

and out there, but decisions are certainly taking longer on these projects. Big oil and gas projects take several years to be designed, configured and costed, and when the economic crisis hit, a lot of the firms which were engaged in these big ticket projects wanted to re-evaluate whether they had the best costs. We have a good number of projects that we have won, and we remain optimistic about the year ahead.

What’s the project pipeline like in 2010? I would say that the projects are still available

Norm Gilsdorf, president of Honeywell Process Solutions.

www.arabianoilandgas.com

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