Developing Qatar’s largest offshore oil reservoir
e Al Shaheen field, Qatar was deemed uneconomical for development until Maersk Oil’s pioneering horizontal well technology made development possible. Today its reservoirs are among Qatar’s biggest oil producers. Maersk Oil is now developing Qatar’s largest offshore oil reservoir, together with Qatar Petroleum. e Al Shaheen field development plan is currently the world’s largest and most complex, offering unique opportunities to work with the latest technologies and a rewarding career at the forefront of the oil and gas industry.
e Al Shaheen Field Development Plan (FDP 2005) encompasses the construction and installation of 15 new platforms and the drilling of over 160 wells. At Maersk Oil we foster a creative environment where employees are empowered to develop solutions to overcome these highly technical and complex challenges. With operations around the world including Qatar, the North Sea, Brazil, Algeria, Angola, Kazakhstan and the US Gulf of Mexico, Maersk Oil offer excellent prospects for your future as part of an international and culturally diverse team. As we make the most of Qatar’s resources, you can make the most of the opportunities we offer. Explore more at www.maerskoil.com
Part of the A.P. Moller- Maersk Group, and active since 1962, Maersk Oil operates some 800,000 barrels of oil equivalent per day. Maersk Oil has activities in several locations such as the North Sea, Qatar, Brazil, Algeria, Angola, Kazakhstan and the US Gulf of Mexico.
CONTENTS
PowerDrive vorteX
APRIL 2010
Getty Images
*Mark of Schlumberger.
© 2010 Schlumberger.
10-DR-0110
28
Supercharge your drilling
57
73
20 ARAMCO ADDRESS
37 ADIPEC PREVIEW
66 OPEN HOUSE
Saudi Aramco’s CEO and president Khalid Al-Falih says the need for oil and gas will not diminish despite the emergence of renewables.
ADIPEC 2010 kicks off in October this year and Oil and Gas Middle East gives you a complete preview of the event.
Nabil Alalawi talks candidly on Iraq, Iran and how he’s engineering a 77% growth plan in 2010.
25 OIL& GAS AWARDS
46 DRILL PIPE COATINGS
44 BIG PICTURE
Oil & Gas Middle East presents the first awards ceremony and welcomes nominations for the prestigious gongs.
Drill pipe coatings can protect the crucial interior of a pipe during the drilling process. NOV Tuboscope’s Jack Dyer explains all.
Shell’s Pearl topsides left the Dubai J Ray McDermott yard in March. We were there.
28 IRAQ UPDATE
57 MAERSK OIL QATAR
A comprehensive update of the situation of the oil and gas industry in Iraq.
Exclusive picture special from the Al Shaheen offshore field development mega-project.
30 OMAN FOCUS
60 OPEN HOUSE
Oman is boosting its production levels through cutting edge enhanced oil recovery projects.
Drydocks World CEO Geoff Taylor reveals his ambitions to tackle the upstream EPC market.
REGULARS 2 WEB HIGHLIGHTS 4 COMMENT
An operator in the Middle East drilled a challenging 5,155-ft well section in a single run at an average ROP of 64.86 ft/h with PowerDrive vorteX* rotary steerable system (RSS) utilizing the PowerDrive Xceed* RSS steering section. The PowerDrive vorteX RSS has a fully integrated high-torque power section that converts mud hydraulic power to additional mechanical power at the bit for fast drilling and reduced nonproductive time. An inclination hold function allows drilling a tangent or horizontal section without intervention from the directional driller. www.slb.com/pdvorteX
7 REGIONAL NEWS
www.arabianoilandgas.com
16 NEWS ANALYSIS 77 PROJECTS
April 2010 Oil&Gas Middle East
1
WEB HIGHLIGHTS
The online home of:
MOST POPULAR NEWS
ONLINE SPECIAL REPORT
secures $600m Qatar 1 Petrofac Petroleum contract sour gas project to start up in 2 Shah 2014- CEO to shelve Ras Tanura plans 3 Aramco - report wins Saudi Aramco sulphur 4 Jacobs contract refinery to be inaugurated 5 Laffan next week
IN PICTURES
Offshore Arabia 2010 review ArabianOilandGas.com reports directly from offshore Arabia 2010, which was held in the Dubai National Exhibition Centre in March. With interviews, news photos and comprehensive coverage of the show, all you need to know about Offshore Arabia is wasily accessible. All the offshore oil and gas industry in the Middle East was out in force and ArabianOilandGas. com was there to bring you bang up to date. BREAKING NEWS AND VIEWS FIRST FORMER PM: IRAQ WILL HONOUR DEALS Getty Images
Iyad Allawi says new hydrocarbon law to be passed quickly and Iraq will honour deals already signed with major oil firms in past six months.
Decision imminent on Shah gas development according to project CEO, talking exclusively to ArabianOilandGas.com at an industry event in Abu Dhabi.
ArabianOilandGas.com
ArabianOilandGas.com
PETROFAC SECURES $600M QP CONTRACT
ArabianOilandGas.com
Oil&Gas Middle East April 2010
SPOT POLL WOULD FURTHER SANCTIONS AGAINST IRAN IMPROVE CROSS TRADE GULF LINKS??
36.4% No 27.3 % Yes 18.2 % No affect 9.1% What sanctions? 9.1% Conflict is likely
KSA ALERT: OIL INDUSTRY TERRORISM THREAT Getty Images
Petrofac wins gas sweetening facilities project from Qatar Petroleum in Qatar worth a total of US$600 million.
2
SHAH GAS PROJECT TO START UP IN 2014: CEO
SAUDI ARAMCO GALLERY A look at Saudi Aramco, the state owned Saudi oil giant in pictures. Including shots of it’s HQ and research centre. ArabianOilandGas.com
Hundreds arrested following security fears for upstream infrastructure. Unclear how disturbance will affect sector.
ArabianOilandGas.com
www.arabianoilandgas.com
COMMENT
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
Energy bounces back Industry already seeing signs of poaching problems again ecruitment agents and HR personnel have revealed to Oil & Gas Middle East this month that many of the deep cuts local firms made in 2008 and 2009 appear to have been too deep, and hiring is firmly back on the agenda. Whilst on the one hand a return to the good old days of hiring and recruiting from all over the world is a sure and healthy sign that the industry has bounced back from a period of inactivity and lean times, these individuals are concerened that a buoyant market will quickly ascend into a frenzied round of class-act poaching, which plagued managers and section heads from 2006 right through most of 2008. Finding talent in the region should, in theory, be easier than ever, they say. When companies had to slash overheads and manpower, the people who were let go were inevitably not their most prized assets. As harsh as it sounds, managers will do everything possible to retain their best performers, and let the deadweight go. This means that companies willing to start poaching know that by looking locally they will find the cream of the crop, without having to bother with the pesky matter of relocations. Whilst every contractor out there will be delighted to see the downward pressure on margins easing, the more astute account managers will be concerned how the perceived bounce-back in the energy business will impact the prices they are currently getting from suppliers. One Abu Dhabi executive recently told me that in the wake a a decent quarter of busines, all of a sudden he was facing the unexpected challenge of staff retention. “It’s madness. After 18 months of belt-
R
Oil&Gas Middle East April 2010
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 4 210 8255 email: daniel.canty@itp.com Senior Energy Writer Peter Ward Tel: +971 4 210 8662 email: peter.ward@itp.com Contributors Ventures, Rigzone Advertising Commercial Director Jude Slann Tel: +971 4 210 8693 email: judith.slann@itp.com Sales Manager David Wheeler Tel: +971 4 210 8582 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 G-nie Arambulo, Efraim Evidor, Thanos Lazopoulos Staff Photographers Isidora Bojovic, George Dipin, Lyubov Galushko, Jovana Obradovic, Ruel Pableo, Rajesh Raghav Production & Distribution Group Production Manager Kyle Smith Deputy Production Manager Matthew Grant Production Coordinator Devaprakash Managing Picture Editor Patrick Littlejohn Image Editor 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
Is your company braced for a return to boomtime economics and talent retention problems?
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
tightening suddenly I’m seeing a return to the antics of 2007, and frankly that wasn’t good for business.”The pervading feeling throughout the upstream community has certainly become more optimistic of late. This is clearly a great relief to some, and should be celebrated. However, managers will do well to stay in tune with what’s happening outside their own firms, or end up paying the price. Ensuring job satisfaction might never have been so important.
Circulation Customer Service Tel: +971 4 210 8000
Daniel Canty, Editor E-mail: daniel.canty@itp.com
To subscribe to the magazine, please visit: www.ArabianOilandGas.com 4
ITP Business Publishing Ltd
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.
Audited by: BPA Worldwide. Average Qualified Circulation: 7,370 (July - December 2009)
Published by and © 2010 ITP Business Publishing, a member of the ITP Publishing Group Ltd. Registered in the B.V.I. under Company Registration number 1402846.
www.arabianoilandgas.com
If you could predict tomorrow’s share prices, you’d be golden. If you could predict tomorrow’s problems in your plant, ditto.
See potential problems before they hit, with PlantWeb™ digital plant architecture. With PlantWeb, you’ll have a network of predictive intelligence throughout your plant, from measurement, control and mechanical equipment to control and asset management software. So you’ll be on top of what might happen next. Call +971 4 811 8100 or visit www.EmersonProcess.com/PlantWeb
The Emerson logo is a trademark and service mark of Emerson Electric Co. Š2010 Emerson Electric Co.
LQV 0RQH\ DG 2*0( LQGG
Change Extreme to Routine © 2010 Weatherford International Ltd. All rights reserved. Incorporates proprietary and patented Weatherford technology.
Weatherford’s Revolution® rotary-steerable service (RSS) takes extremes of temperature, pressure and reach in stride
Visit us at SPE Annual Technical Symposium Al-Khobar, Saudi Arabia (April 4-7) Stands 27 and 28 Oil & Gas West Asia Muscat, Oman (April 11-13) Stand 519
Drilling Services
Drilling
Evaluation
Completion
Production
Intervention
• Directional & performance drilling - Adjustable gauge stabilizers - Coiled-tubing-drilling BHAs - Directional surveying & survey management - Steerable drilling motors - Well planning & engineering • LWD - Acoustics - Azimuthal resistivity - Formation testing - Imaging - Standard triple combo • MWD - Directional survey & gamma ray - Drilling performance - Magnetic ranging - Mud pulse & EM telemetry • Rotary-steerable systems - HP/HT RSS - Motorized RSS - Point-the-bit RSS - Vertical drilling systems
From deep, hot holes to extended-reach, underbalanced wells, our Revolution RSS is helping clients develop reservoirs never before accessible. And our point-the-bit technology delivers smoother boreholes even at high build rates. These performance gains result from our Revolution Evolution continual-refinement process. Discover how Tactical Technology™ can raise productivity and lower your anxiety. Visit weatherford.com or speak with a Weatherford representative near you. We might change the way you look at all your service needs.
The change will do you good
SM
weatherford.com
LEAD NEWS
Shah decision in weeks - Al Ghafli $300m initial works package awarded to Al Jaber in March Abu Dhabi National Oil Company (ADNOC) and ConocoPhillips have awarded a US$300m construction contract for their Shah gas project to Al Jaber Group. Al Jaber Group will build the infrastructure, including roads as well as units such as gas treatment plants. The project will treat around 1 billion cubic feet of gas from Shah, and pump around 540 million cfd of processed gas into the UAE network. The initial works package is estimated to be worth around $300 million. “The award of the Shah Project’s Early Works Package to Al Jaber Energy Services Company signals the beginning of what will ultimately be a new benchmark for the gas processing and sulphur recovery industries worldwide,” said Dr Nick Coles, organiser of the SOGAT conference. One of the key papers to be presented at last month’s Sour Oil and Gas Advanced Technology conference 2010 (SOGAT) focused on the challenge of transporting 10,000 tonnes of sulphur per day from the main plant in the large dunes180 km south east of Abu Dhabi to a new sulphur terminal in Ruwais. Speaking to Oil & Gas Middle East on the sidelines of the sixth international SOGAT conference in Abu Dhabi, the newly installed chief executive officer of the project operator, Saif Al Ghafli said that the owners (ADNOC and Conoco) were still in talk with Union Railways regarding the transport of sulphur from the Shah Field. “Initially a hot sulphur pipeline was considered the best option, but the owners are talking directly with the rail company and this is being considered,” he revealed. If a rail option is selected over the buried pipeline then the proposed sulphur granulation plant will be shifted from the Ruwais site which has been earmarked for it, to the Shah
www.arabianoilandgas.com
Tactical Technology™ in action: Our Revolution® rotarysteerable service (RSS) and other advanced drilling technologies take drilling productivity to new highs. Strong on hot-formation performance. The Revolution high-pressure/high-temperature RSS and HEL™ hostileenvironment, logging-while-drilling system made it possible to drill a gas well in the Haynesville shale, USA, where temperatures reached 160°C. This success saved our client six days and US$1 million. The system also holds a regional temperature record of 170°C in the Bay of Bengal, India.
Long on underbalanced lateral performance. The Revolution
Saif Al Ghafli gave the keynote address at SOGAT 2010.
field itself. Al Ghafli said he is expecting to announce the major contracts for the $10 billion project in the coming weeks. The project will set a new standard for sour gas developments, as the sulphur content is 23% - a level so corrosive projects of this nature were once considered unviable. “The owners are very happy with the prices which have been tendered, and I expect to be able to make an announcement any day now,” he said. First gas from the project is expected in early 2014 and will go some way to contributing to the ever increasing future power demands in the UAE. “The project is definitely going ahead - Abu Dhabi needs this,” said Al Ghafli.
RSS can handle demanding underbalanced drilling-pressure regimes. And teamed with our EMpulse™ electromagnetic telemetry, it extends the reach and placement of long lateral wellbores. The system recently drilled a 1,867-m section on dry air at an average of 40 m/hr. Tactical Technology can improve productivity for the life of your well. Visit weatherford.com, or speak with a Weatherford representative near you. SM
The change will do you good weatherford.com © 2010 Weatherford International Ltd. All rights reserved. Incorporates proprietary and patented Weatherford technology.
April 2010 Oil&Gas Middle East
7
REGIONAL NEWS
AlMansoori nails Key JV deal Pressure pumping specialists tie up with Abu Dhabi OFS firm in joint venture deal Abu Dhabi’s home grown oil- ices has signed a joint venture onshore energy production field service and supply giant agreement with Key Energy service company. The joint venture will AlMansoori Petroleum Serv- Services, an American-based bring several new services to AlMansoori’s capabilities in coil tubing, workover rigs, pumping/cementing, fracturing and acidising, as well as see Key Energy services establish a base in the Middle East. “Although AlMansoori has strong roots in the Middle East, the company’s international reach has consistently grown and North America has been a market that has become increasingly important to us,” said Nabil Alalawi, CEO of AlMansoori Specialized Engineering. Key Energy has seen a bounceback in form in its primar y US market, recently announcing a fourth quarter 2009 increase in revenue of Nabil Alalawi is chief executive officer of Al Mansoori Specialized Engineering.
29% on Q3 for its production ser vices segment. Fourth quarter revenue stood at US$56.1 million, buoyed primarily from a 54% increase in US generated pressure pumping revenue. “This is Key’s first venture in the Middle East and AlMansoori’s reputation and experience in the region assures us that the partnership will be a successful one. The JV will enhance AlMansoori’s portfolio of ser vices to provide a ver y impressive and full ser vice offering to the industr y and we look for ward to progressing further opportunities with AlMansoori in both the Middle East and North Africa,” added Don Weinheimer, senior vice president of production ser vices at Key Energy.
Offshore service heavyweight Bergen Oilfield opens in Oman Bergen Oilfield Services AS (BOS), the Norwegian offshore seismic survey company has established a full representative office in the Sultanate of Oman.
24 0 9
Gross tonnage of the BOS Atlantic, which recently won an offshore Oman 2D seismic survey tender. Source: BOS
8
Oil&Gas Middle East April 2010
The Oman office will be run The opening coincides oil companies to re-examine locally by Alf Hesthag. with an important exploration littoral and oceanic waters. 2D survey win for the BOS Atlantic in Omani waters. The BOS says the Atlantic is one of the best equipped 2D vessels around today and the firm has every confidence of establishing this as a key area for future business. Offshore exploration has seen something of a renaissance in the Middle East, as technological improvements in seismic acquisition and reservoir characterisation have driven national and private BOS owns a fleet of three high-end 2D seismic acquisition vessels.
www.arabianoilandgas.com
REGIONAL NEWS
Iraq operator announced
HIGHLIGHTS
Getty Images
Getty Images
Longford Energy eyes exploration prospects in Kurdistan Region
Iran has proposed to develop the Arash Natural Gas Field together with Kuwait, according to Mahmoud Zirakchianzadeh, head of the state owned Offshore Oil Company. “Iran has proposed that development, investment, production and management…be done on a joint basis by the parties involved,” said Zirakchianzadeh. Kuwait was expected to “accept Iran’s idea of joint development of the field,” he said.
The Kurdistan Region of Iraq recommenced oil exports in June 2009. The region is rich in oil and associated natural gas reserves.
Longford Energy announced in March it has been appointed as the operator of the Chia Surkh Block and plans to commence seismic acquisition during the second quarter of 2010. Longford acquired a participating interest in a PSC Contract in June 2009 for the Chia Surkh Block, which covers approximately 985 square kilometres,
132
Million barrels Longford’s best estimate for ultimate recoverable oil in the Chia Surkh Block, Kuridustan Region of Iraq Source: Longford Energy
www.arabianoilandgas.com
in the Sulaymaniyah Governorate of the Kurdistan Region of Iraq. The Block contains a historical discovery as well as multiple exploration prospects. An initial resource estimate was completed by DeGolyer and MacNaughton Canada in September 2009 for the shallow tertiary horizons of the discovered field. The independent assessment established a gross unrisked prospective resource with a best estimate of 132 million barrels of potential ultimate recoverable oil on the field as of September 1 2009. Longford said last month that it has identified up to five exploration prospects and leads that could provide significant opportunities to further discoveries and resource expansion. Longford has completed the establishment and registration of its Kurdistan office in the city of Sulaymaniyah,
and in preparation for the start of operations, a professional management team comprising of foreign staff personnel and local nationals have been put in place. A 300km 2D seismic acquisition program has been prepared and approved. The seismic program has been designed to evaluate both the known Chia Surkh Field and up to four exploration prospects on the Block. The Chia Surkh Field will be evaluated for near term development potential and the exploration targets, defined by surface anticlines, will be further appraised for exploration drilling. Longford is in the early planning stages to drill the first exploration well on the Chia Surkh Field during the fourth quarter of 2010. Keep up to date with Iraq contracts at www.ArabianOilandGas.com
Kuwait Energy Company (KEC) has announced the discovery of a new oil well in the northern area of Burg El-Arab (BEA) field in the Egyptian western desert. The newly discovered well, BEA N-1X, is located in a separate fault block in the northern part of the field. The well was tested in December last year and produced an initial rate of 280 barrels of 33API oil per day with no water. “The new discovery is another milestone for KEC’s exploration efforts in Egypt. This discovery is a result of their ongoing efforts,” said Sara Akbar, deputy chairman and CEO of KEC. Total has signed an agreement to acquire a 50% interest in Kazakhstan’s concession held by OilTechnoGroup (OTG), the Kazakh subsidiary of Poland’s Petrolinvest. The 5500km2 onshore license presently being explored is in northwestern Kazakhstan. As operator of the license, Total will proceed with a work programme that includes reprocessing of seismic data and drilling of a well. An encouraging well has already been drilled.
April 2010 Oil&Gas Middle East
9
REGIONAL NEWS
Baker Hughes nets Aramco drilling deal Saudi Aramco has awarded Baker Hughes a two year contract for two coiled tubing drilling packages designed to re-enter existing wells in the gas fields of southern Saudi Arabia. Baker Hughes will provide project management and oversight and downhill drilling and completion services. “This is an important award for Baker Hughes,” notes Khaled Nouh, president of Baker Hughes, Middle East. “The contract will allow us to demonstrate our project management capabilities, both in the KSA and in the wider Middle East region, on a very important project for Saudi Aramco,” he added.
Khaled Nouh, Baker Hughes, Middle East.
10
MIS wins NDC rig deal Project is MIS’ highest rig refurbishment contract to date UAE-based Maritime Industrial Services Co. Ltd. Inc. announced in March that it signed a US$55.4 million contract with Abu Dhabi’s National Drilling Company (NDC) for the refurbishment of jack-up drilling rig NDC Al Bzoom. The contract, which is MIS’ highest contract to date in its ‘refurbishment’ value stream, will cover the Rig Integrity Assurance Programme (RIAP) as its base scope for the modification and refurbishment work on the rig. The signing ceremony was held under the patronage of HE Abdalla Nasser Al Suwaidi, chairman of NDC, and Abu Dhabi National Oil Company (ADNOC) deputy CEO and exploration & production director, with the contract being signed by Abdalla Saeed Al Suwaidi, NDC’s general manager and Kevin Hudson, MIS managing director.
Kevin Hudson is managing director of Sharjah’s Maritime Industrial Services.
“We enjoy a solid business association with MIS. This is not the first time that NDC contracts MIS for its specialised rig refurbishment works, nor will it be the last time,” said Mr. Abdalla Al Suwaidi at the signing ceremony. “We look forward to a continued strong relationship with MIS.” Kevin Hudson reiterated the sentiment. “This agreement builds on an excellent track
Oil&Gas Middle East April 2010
record between the two companies. We will do everything in our capacity to ensure that this project further strengthens our partnership with NDC.” Rig NDC Al Bzoom, which is a Baker Marine BMC- 150-IC design with a rated water depth capacity of 110 ft and drilling depth of 18,000 ft, will be used to drill oil wells in Abu Dhabi’s offshore fields upon completion.
www.arabianoilandgas.com
d l
d
REGIONAL NEWS
Topaz posts $65m profit for 2009 Recession resilient performance thanks to upstream work according to marine firm UAE engineering giant Topaz Energy and Marine has posted a net profit of US$65 million for 2009, demonstrating year on year growth of 7%, 14% and 38% respectively. The firm also revealed revenues of $448 million, demonstrating strong growth throughout the year. “This is an outstanding achievement in a volatile economic climate and reflects the inherent strengths of our business. Facing great adversity, we have demonstrated our business to be one that grows shareholder value in a measured and responsible fashion in any economic cycle,” said Fazel Fazelbhoy,
the CEO of Topaz Energy and Marine. “Topaz’s recession resilience is a result of a considered blend of long and shortterm contracts, exposure to geographies of strategic importance to global energy markets and our refusal to jump on the bandwagon of speculative vessel newbuildings at the peak of the market,” he added. The firm’s global exploration and production spend is projected to rise by approximately 10% in 2010, with the firm expecting a visibly firmer market in this year, but with continued weakness in the Fazel Fazelbhoy, CEO of Topaz Energy and Marine. first six months.
ABB scoops $2.8 million pipeline deal in Dukhan, Qatar ABB, the leading power and automation technology group, has signed a US $2.8 million deal with leading contractor BlackCat Engineering & Construction
to design and develop a major integrated Safety Integrity Level 3(SIL 3) and process control solution for a gas pipeline project in Dukhan, Qatar.
The gas pipeline process control and safety solution will come from ABB.
12
Oil&Gas Middle East April 2010
Dukhan is home to one of Qatar’s large oil fields and is located in the western part of the country. The Dukhan field encompasses four reservoirs, three of which are oil reserves and one containing associated gas. The production facilities located in the oil field produce over 335,000 barrels per day. ABB will supply SIL 3 controllers for emergency shutdown, process control, and fire and gas systems as well as its SIL3-compliant System 800xA for new and existing plants on the field as part of an upgrade and development plan. The ABB system provides a host of new automation functions and gives opera-
tors at Dukhan secured centralised access to these functions. This will result in improved safety standards, less downtime for the gas transmission network, and lower operating costs as well. “This is one of the first projects where the process control and safety system are integrated on the same platform,” revealed Johan de Villiers, country manager for ABB in Qatar. “ABB is very excited to be a part of this landmark project as it will be an excellent reference for the region’s safety market and will also establish our 800xA solution as a reliable and serious contender for the safety market.”
www.arabianoilandgas.com
REGIONAL NEWS
BP leads $6bn Chirag project State oil company approves massive deepwater development package Azerbaijan’s steering committee for the development of the Azeri, Chirag and thr deepwater portion of the Gunashli (ACG) fields, sanctioned investment in the new Chirag Oil Project (COP) in March. The $6 billion development plan is the next major step in the ongoing development of the ACG field in the Azerbaijan sector of the Caspian Sea. The COP development will allow recover y of an additional 360 million barrels of oil in total. This aim will be achieved by installing new wells that will primarily target the currently producing Fasila reser voirs and also the Balakhany X, IX and VIII reser voirs located above the Fasila. The project is planned to increase oil production and recover y from the ACG field through a new offshore facility which is designed to fill a critical gap in the field infrastructure between the existing Deepwater Gunashli (DWG)
A drilling engineer on the Dada Gorgud rig in the Azeri Field, Azerbaijan, which drilled the AZB001 well.
and Chirag-1 platforms. “This is a step for ward towards realisation of Azerbaijan’s energy production growth plans aimed at positioning the countr y as one of the major suppliers to the world’s oil markets,” said Rovnaq Abdullayev, president of the State Oil Company of the Azerbaijan Republic
(SOCAR). “We believe the project’s immediate benefits are even more valuable to us because for the first time the project’s world class multi-billion dollar facilities will be fabricated inside the countr y fully utilising local resources.” Some $4 billion of the total project value will be spent on
the construction of facilities and the pre-drill programme, and the balance of the sum will be spent on the platform development well drilling during the production period. First oil from the Chirag Oil Project, the latest stage in ACG’s development stretching back more than 15 years, is expected in late 2013.
Iran seeking $200bn investments in oil, gas and refinining plans Iran is to embark on a US$200 billion oil, gas and refining investment plan over five years to avoid a decline in production, the country’s oil minister has said in March. “For the next five years, we are now planning seriously for investment of upstream and downstream of US$200 billion worth of investment,” Masoud
www.arabianoilandgas.com
Mirkazemi told reporters ahead of the OPEC meeting in March. The minister also revealed that sanctions will not affect the plans, which will “introduce a degree, a percentage of efficiency” as oil and gas fields in the country move towards depletion. “Therefore a step should be taken so that investment will be Iranian Oil Minister Masoud Mirkazemi.
also absorbed by this process of...increasing production,” Mirkazemi said. “It’s about 31 years since Iran got independence and some countries do not like it,” he said in reference to western sanctions imposed on the Islamic republic. “These kind of sanctions will not have any effect on investment.”
April 2010 Oil&Gas Middle East
15
NEWS ANALYSIS
NEWS ANALYSIS Black Cat on the prowl Has Qatar’s largest engineering and construction firm outgrown its native borders? Qatar’s home grown Black Cat Engineering and Construction has been grabbing headlines for all the right reasons in recent weeks. The company, which began with a small office in Doha and a single portacabin site office in Dukhan oil and gas field, is today stamping its mark upon many of Qatar’s most ambitious upstream and energy related projects, and may well start to look to Gulf, or even international markets, as much of its domestic project portfolio reaches fruition. The company’s evolution into Qatar’s largest EPIC and maintenance contractor for the upstream oil and gas industry has coincided with quite unparalleled activity in the small Gulf state. Today the company claims a manpower base of over 2500 men and anticipated annual turnover just shy of the $100 million mark. In October last year AMEC, one of the largest international engineering and project
Qatar’s Black Cat Engineering and Construction could well be about to pounce on projects outside its home turf. management companies, joined forces with Black Cat, forming a joint venture agreement to offer asset support services to the oil, gas and petrochemical sectors in the country.
EMERGING TREND
$100
M
Black Cat Engineering and Construction currently boasts an annual turnover around the $100m mark.
16
Oil&Gas Middle East April 2010
The JV should be seen as part of a wider trend, which is accelerating in the region, of forming top tier, preferred bidder status firms with global competencies, but national backing. It’s a mix that’s bound to win. Indeed, the same synergies have long been
exploited in joint venture outfits created from international oil company minority stakeholders and the national oil companies. Few of the world scale projects embarked upon in the Gulf region have not had an IOC name attached. Shell’s Pearl GTL plant with QatarGas, the upcoming Shah sour gas development company has ConocoPhilips onboard as a major stakeholder, and countless other examples exist throughout the upstream project landscape. Even local service providers, such as Al
Shaheen Well Services in Qatar, have taken a technological leap bringing onboard Weatherford as partners. Of the Black Cat, AMEC deal, the official word was that the JV combines the global capabilities and strong relationships of AMEC, with the long established local capabilities and market position of Black Cat. The deal could prove critical for both companies, essentially delivering a one stop shop bringing international best practice capabilities, with
www.arabianoilandgas.com
NEWS ANALYSIS
the all important local delivery touch to customers in Qatar. Exactly what a national oil or gas company would have on its wish list. “This new joint venture is part of our long term strategy to not only work in countries but also to be an integral part of their future. I am delighted to be working with Black Cat as we come together to form a world class service for Qatar, part of our strategically important Middle East region,” said Tony Cruddas, president of AMEC’s
Natural Resources Growth Regions Business. Sheikh Hamad bin Abdulla al-Thani, Black Cat chairman said, “We have created this joint venture company to offer truly world class services to world class companies like QP and its international partners. The JV with AMEC enables us to offer much needed services to the rapidly expanding oil and gas production facilities in Qatar.” Black Cat was acquired by Qatar Investment & Projects Development Holding Company AMEC has worked on many Gulf projects, including offshore UAE.
Custom Reel Solutions Custom Engineering Capabilities
Refueling/oil transfer reel
Reelcraft’s Capabilities 9 Built to your exact needs 9 Very few size and weight constraints 9 Special finishes/paint options 9 Various drive types 9 Wide range of pressures 9 Many unique options available 9 No minimum quantities
660’ x 4” hose (201m x 102mm)
Made in USA
Marine grade expoxy finish 4” I.D. hose (102mm)
Made in USA
Middle East inquiries, please contact Thompson International:
®
+1-260-489-1685 or e-mail: info@t-i-i.com
www.reelcraft.com www.arabianoilandgas.com
Manufacturer of industrial grade hose, cord and cable reels
April 2010 Oil&Gas Middle East
17
NEWS ANALYSIS
AMEC, Black Cat’s new JV partner has a massive upstream pedigree. (QIPCO Holding) in 1999. The fresh injection of capital from QIPCO has seen turnover and profitability increase five-fold since the acquisition. With a healthy backlog of over $165 million (excluding a $467 million joint venture project for the Ras Laffan Emergency and Safety Training College), Black Cat has been well placed throughout the downturn and continue its rapid expansion. The company is currently executing projects in Dukhan, Mesaieed and Ras Laffan and its client base includes Qatar Petroleum, Gasal (a JV between
$165
M
The BCEC project backlog currently stands at $165 million, excluding a $467 million order for the Ras Laffan Emergency training college.
18
Oil&Gas Middle East April 2010
QP and Air Liquide), Rasgas, Qatargas, QChem, Qafco, Petrofac and Hyundai. Recent and ongoing projects include pipelines and compressor stations, storage facilities, control room upgrades and brown field modifications to existing process plants. The company has managed to expand its originally fairly limited array of contracting services to include all aspects of engineering, construction and maintenance of oil, gas, and petrochemical plants.
three of which are oil reserves and one containing associated gas. The production facilities located in the oil field produce over 335 000 barrels per day. Last year the firm scooped a major contract from QP for the EPIC of Sweet Fuel Gas Supply to Dukhan consumers. With an approximate contract value of $110 million, the project is scheduled for completion in March 2012. The project consists of sweet fuel gas supply system pipelines and associated facilities. The construction activities include but are not limited to the construction of pipelines with sizes ranging from 4 inch to 36 inch diameter. In addition, 42km pipeline, cable trenching, road works, 62 culverts, 83 track crossing, pig launchers and receiver stations, valve stations, 33 KV sub-station & control system works are involved. As Arabian Gulf states seek to seal more of the value-creation projects within their borders, ambitions to retain more of
PROJECT WATCH Last month Black Cat awarded a $2.8 million deal with ABB to design and develop a major integrated Safety Integrity Level 3 and process control solution for a gas pipeline project in Dukhan. Dukhan is home to one of Qatar’s largest oil fields, encompassing four reservoirs, Petrofac Emirates CEO, Peter Warner.
the value-add service revenue comes as a natural progression. Such partnerships have already proven hugely successful elsewhere. In the UAE the state investment firm Mubadala joined forces with international service and EPC provider Petrofac to form Petrofac Emirates, in a 50/50 joint venture. Since then the JV firm has outstripped the pack when it comes to winning major deals in Abu Dhabi’s upstream business, but also outside its own home ground. Last year saw the nationally-backed, internationally accomplished partnership net billions of dollars worth of business. The JV, formed back in 2008, promptly scooped a major contract award from Gasco, worth approximately $2.1bn, with a value to Petrofac Emirates of around $1bn. The 48-month lump-sum contract which kicked off in 2009 is for the construction of the 4th NGL train at the Ruwais complex in Abu Dhabi. The firm is considered amongst the frontrunners for work on the development of the Shah Sour Gas Field, with contracts expected to be announced in by June this year. As far as companies to keep an eye on go, we suspect Black Cat is about to pounce on projects in the wider Gulf. Qatar is a fantastic proving ground, but the company’s aspirations, and financial clout, suggest it can’t be caged there forever.
www.arabianoilandgas.com
Motors | Automation | Energy | Transmission & Distribution | Coatings
Efficiency and reliability for industry. Transforming energy into solutions.
www.weg.net/ae
WEG MIDDLE EAST FZE JAFZA - JEBEL ALI FREE ZONE JAFZA View 18, 19th Floor, Office LOB18 1905 Dubai – UAE PO Box 262508 Phone: +971 (4)8130800 Fax: +971 (4) 8130811 info-ae@weg.net
CERA WEEK COVERAGE
Oil and gas will still play a vital role.
Saudi Aramco’s technology and research centre in Dahran, Saudi Arabia.
“When I say ‘adequacy, I mean that we need to ensure adequate and reliable supplies of energy to meet the growing needs of the global population. Even today, billions of our fellow human beings lack access to adequate supplies of energy from modern sources. The world’s population will be expanding not only in numbers, but also in their demands for higher living standards and greater prosperity. … We must be able to meet those expectations.” Regarding affordability, AlFalih said that if energy becomes prohibitively expensive then: “We may jeopardise global economic stability and growth, and risk tipping the world into a have and have-not scenario. The way I see it, energy has always been an enabler of prosperity rather than a drag on development … and will continue to play that positive role.” Al-Falih said the third side of the Triple A Triangle, acceptability, refers to environmental protection. “Our consumers will not feel secure unless they know
that we are doing our utmost to provide energy in a manner that is environmentally responsible,” he said. “Stewardship of the environment is not only a moral duty for energy providers but also a sound economic choice and good business.” Al-Falih encouraged listeners to pursue strategies and
www.arabianoilandgas.com
and — most importantly — sufficient time to implement.” Secondly, leaders need to encourage wise and timely investments in petroleum, given the central and leading role it will continue to play in meeting energy demand. Third, the energy sector must make concurrent invest-
“The world’s population will be expanding not only in numbers, but also in their demands for higher living standards and greater prosperity. We must be able to meet those expectations” activities that incorporate these Triple-A imperatives. He said that, first, industry leaders need to adopt a pragmatic, yet progressive, attitude toward energy issues. “We must understand that any path we choose to enhance global energy security will require hard work, massive investments
ments in both conventional and alternative sources that allow real competition to flourish; and fourth, leaders must consider and address the issue of environmental protection and sustainability. “In the end, we need to meet growing energy demand to permit economic growth and social
development, and do so in a manner that protects our environment,” he said.
FUTURE SOURCES OF ENERGY During his keynote address, AlFalih specifically addressed the issues and perceptions related to traditional versus alternative energy sources needed to meet future demand. “Even with the great strides we have made as an industry, we find a great deal of uncertainty surrounding the future of energy in general and of petroleum in particular,” he said. “There are assumptions the industry is going to somehow fundamentally transform the face of energy overnight. Such an assumption ignores the thorny issues of how — and how quickly — we are going to get from here to there … how much it will cost and who will pay for it.” He added that even though there is great promise in a number of alternative energy sources, leaders need to stay
April 2010 Oil&Gas Middle East
21
CERA WEEK COVERAGE
Schlumberger’s Carbonate Research Centre is in Dharan, Saudi Arabia.
Aramco is looking to develop gas.
Renewables are playing an increasingly important role in meeting the world’s energy demands.
focused on the fact that hydrocarbons will remain the dominant energy source for decades to come. He went on to say that the consensus view is that, 20 years from now — even with technological advances between now and then — fossil fuels will continue to satisfy about 80% of total energy consumption. “I do want to clarify that the industry should continue to invest in the most promising renewable sources,” he said. “I do not believe in an ‘eitheror’ choice but rather a complementary approach. Given that global energy demand is set to double over the next 40 years, I strongly believe we will need contributions from all sources.” He added, however, that the industry should invest at the appropriate levels “in our triedand-true energy sources — including oil.”
ing to help meet current world demand and also ensure adequate energy supplies in the future. He said the company has been building capacity both in the upstream and downstream sectors, including integrated refining and petrochemical facilities both in Saudi Arabia and foreign countries. He added at the conference that Saudi Aramco has not
“The consensus view is that, 20 years from now — even with technological advances between now and then — fossil fuels will continue to satisfy about 80% of total energy consumption”
slowed down in making substantial investments in capital growth, which have increased the company’s production capacARAMCO FOCUS Al-Falih also touched on the ity to an unprecedented 12 milsteps that Saudi Aramco is tak- lion barrels per day.
22
Oil&Gas Middle East April 2010
He also said that investments will roughly double the company’s gas capacity over a 10-year period and that there will be an increase in capital investments made by the downstream joint ventures. “The company is making equally substantial investments in developing its greatest resource — our people,” AlFalih added.
“These investments are a tangible reflection of our belief that oil will remain a major player on the world’s energy scene for the foreseeable future. Our vision has always been focused on the
longer term. Just as we have done for more than 75 years — we will build for today as well as for future generations.” Al-Falih concluded his keynote address by telling listeners, “If we commit ourselves to working collaboratively … then I believe that our collective energy future will no longer be characterised by the uncertainty of its prospects but rather by its unlimited potential.” Following his address, AlFalih touched on the following areas in response to questions submitted from the audience: Saudi Aramco has and will remain committed to investing in its capital expansion programs — even during a time of unstable world markets and rising costs — to help ensure global energy security. Additionally, the company is making a considerable investment in developing in-Kingdom gas resources through new gas discoveries and processing facilities.
www.arabianoilandgas.com
“Every once in a while there comes somebody who comes up with a completely revolutionary idea. This idea of the VersaRig which we are introducing into the market here is very unique business. It was invented some time back by a person from Oklahoma, who had the idea but didn’t have the marketing capability or the ability to take it to the step of commercialism. We were able to bring this idea with this gentleman and bring it to the world. We have the exclusive rights for the whole Eastern hemisphere and it is very revolutionary and is a complete new concept of how people service the oil wells. The reception from clients is – how did we not know about this earlier? It is such a simple idea, how come nobody has even talked about this? Always the revolutionary ideas are the simple ideas. “
DIARY
DEC 14 2010
AWA R D S he Middle East’s upstream oil and gas community will have a glittering new addition to its calendar in December this year, with the first ever Oil & Gas Middle East awards. Hosted by ITP Business, publisher of ArabianOilandGas.com and Oil & Gas Middle East, on 14th December 2010 the ceremony will be held at the Westin Hotel in Dubai. The aim of the Oil & Gas Middle East Awards is to celebrate excellence amongst the region’s outstanding upstream industry. The awards will to seek out best in class organisations, projects, and the people who have proven that going that extra mile, even when part of a multinational company or multi-billion dollar project, can make a real difference. From young engineers climbing the first rungs on the upstream career ladder, to the project manager who has overcome seem-
T
www.arabianoilandgas.com
ingly insurmountable odds to bring projects in on time and on budget, right through to exemplary leadership at the top – the Oil & Gas Middle East Awards will identify those performers responsible for positioning the Middle East at the heart of the world’s energy sector. The Awards website has been live since March and is now receiving entries. Judging by initial traffic and enquiries the event promises to be just the ticket to round off the year that energy bounced back. The launch of some of the world’s most ambitious energy schemes and the successful delivery of mega projects in Saudi Arabia, Abu Dhabi, Qatar, and of course Iraq will no doubt prove that 2010 heralded a new era of quality and excellence in the upstream business. Globally acknowledged as the dominant source of the next generation’s energy, now the Middle East’s NOCs
and their partners have shown that they are leaders in operational excellence and quality project management too. Nominations are open to companies, individuals and projects. NOCs, international majors, service companies and environmental initiatives are all invited to participate and can do so through the website.
AWARDS JUDGING After the closing date for submissions all nominations will be collected and reviewed by the judging panel. Each award winner will be decided by consensus among the judges and no correspondence will be entered into by outside parties. Judging will be based on the strength of the submissions together with a review of the nominee’s activities in the area of nomination. Details of the executive judging panel will be announced shortly.
April 2010 Oil&Gas Middle East
25
DIARY
AWA R D S
THE AWARDS HAVE BEEN SEPARATED INTO FOUR DISTINCT CATEGORIES TO HONOUR THE BEST IN CLASS PROJECTS, COMPANIES, INDIVIDUALS AND INITIATIVES THROUGHOUT THE UPSTREAM ENERGY WORLD IN THE MIDDLE EAST. Full details of awards categories and the nomination process can be found online at www.ArabianOilandGas.com/Awards
26
Oil&Gas Middle East April 2010
PROJECTS
PEOPLE
Best upstream Gas Project Best upstream Oil Project Best enhanced oil or gas recovery project Offshore project of the year
Young engineer of the year Best project manager Oil & Gas Middle East’s Outstanding Leader of 2010
COMPANIES
JUDGES AWARDS
Best international collaborative project Best exploration and production performance Best technology implementation Middle East oil field service provider of the year Engineering Achievement 2010
Best implemented environmental programme Most successful national graduate training programme Best corporate social responsibility initiative Lifetime achievement
www.arabianoilandgas.com
IRAQ WATCH
Ministry about the start-up of work, as has the Eni-led consortium developing the Zubair field. Yesterday also saw news that Russia’s LUKoil, the operator of
Samuel Ciszuk of IHS Global Insight.
the West Qurna-2 TSC, had sent a technical team to engage in talks with state-owned South Oil Company (SOC) late last week, in order to prepare the way for an approval of its early work and preliminary development plan. Budgetary issues were also reportedly on the agenda at the 12.8-billion-barrel non-developed supergiant oilfield, which LUKoil will develop together with Norway’s Statoil. Shell and Petronas have also recently detailed their early planning and development plans enough to officially state a first production target of 175 000 b/d for 2012 at the Majnoon field, which ultimately is hoped to yield 1.8 million b/d of crude. While companies are preparing their full-scale entry into Iraq, the
government- and coalitionforming negotiations look set to drag on, given the very even result between the election’s two largest opposing factions. Incumbent prime minister Nuri al-Maliki’s State of Law alliance saw itself beaten to the top spot by Iyad Allawi’s Iraqiya list by a margin of two parliamentary seats, and neither is able to form a ruling coalition without at least two of the other principal political groupings. The very close outcome of the elections, with only a slight advantage for the Iraqiya party, has raised fears again that political frustrations in the coming weeks and months might spill over into violence. This has been exacerbated by initial signals from Prime Minister alMaliki that he is contesting the
election result. Still, it is uncertain whether Allawi’s Iraqiya will be able to summon up a coalition, given that it would probably have to work with at least one of the INA factions—if not the whole list—to gather the necessary support, which looks like an unlikely match. The upside for oil companies is that any victor needs a lot of money to fund reconstruction and will need oil’s revenues during the upcoming period.
PARLIAMENTARY SEATS IN IRAQ’S ELECTION Iraqiya State of Law INA Kurdistania Others TOTAL
91 89 70 43 32 325
Fieldbus Technology for Applications in Hazardous Hazardo Environments Today’s development shows that many chemical and petrochemical companies have production plants, production andprocess automation machines in operation which use gas-air or dust-air mixtures which can be explosive. For this reason,the electrical components used in such plants and systems must not pose a risk of explosion resulting in injury to personsor damage to property. The WAGO-I/O-SYSTEM 750 is designed for use in both hazardous and non-hazardous environments. Using the fieldbus technology in hazardous environments can be very time consuming and cost intensive and is onlymade possible in a limited way. When used in hazardous areas of Zone 2, the WAGO-I/O-SYSTEM 750 offers a safe, easy and economical connection to the sensors and actuators of Zones 0 and 1.
WAGO Middle East SAIF Zone, Q4 – 282 Tel: +971 6 5579920 Fax: +971 6 5579921
The Ex i I/O modules were specially developed for this purpose. They build up an intrinsically safe section, which can beintegrated into a standard fieldbus node, offering all the advantages of a state-of-the-art fieldbus technology (e.g. field-bus independency, flexibility, modularity, programmability, reliability, cost effectiveness).
www.wago.com
www.arabianoilandgas.com
April 2010 Oil&Gas Middle East
29
OMAN COUNTRY PROFILE
tiveness of Oman to international companies. “Indeed, Oman has continued to attract foreign investors, despite the slow global market condition,” he said, attributing this appeal to the healthy state of the Sultanate’s oil and gas sector and its prospects for growth in the future. “We have floated a few tenders in the middle of the year, and we are in discussion with some of the interested companies, the results of which will be known before the end of the year. We are also in preparation for a new bid round soon. We are confident that we will get reputable companies to work on them. Our doors are open for any size of companies who are willing to be our partners. Our process is transparent,” Dr Al Rumhy stated.
GAS On the gas front, Oman continues to meet the demand of customers, Dr Al Rumhy said, noting that gas availability is currently well over 99.8 per cent. But he acknowledged “production challenges” in the continuing quest to boost gas output. “We have to be smarter in the way we develop our fields by selecting the right technology for the right field,” he noted. Oman is hoping to also increase LNG production in order to export it and the economic crisis that has hit 2009 has provided more time for the country to come up with
1.2T ft³ Oman has targeted increasing its gas production to 1.2 trillion ft³ by 2013 Source: EIA
www.arabianoilandgas.com
OMAN’S PROJECT PIPELINE
New EOR project – PDO Oman’s largest upstream company, PDO is embarking on a massive enhanced oil recovery project in 2010 In 2009 Petroleum Development Oman (PDO) approved the fullscale development of the Amal East and West fields by means of steam-based enhanced oil recovery (EOR) techniques. Amal will become the site of the fourth field-development project in the the PDO EOR portfolio, which currently consists of a polymerinjection project at Marmul, a miscible-gas injection project at Harweel and a steam-injection project at Qarn Alam. “This is another milestone in the execution of our strategy for the long-term sustainability of the nation’s oil and gas production. That strategy is based on the application of appropriate technology and the development of capable people,” PDO’s managing director John Malcolm said. PDO has been producing oil by conventional means since 1984 at Amal, which is in south Oman. But the oil is heavy, limiting the rate of production as well as the percentage of the oil in place that can ultimately be recovered. The application of steam will enable the Amal oil to be produced more quickly and in greater volumes. The peak production rate from the two fields is expected to be three times the current production rate. Steam-injection trials to support the full field development have been ongoing at Amal since 2007. Steam will be used in different ways in each field. In Amal West, the steam will drive oil from dedicated injection wells towards
The field-development plan calls for a total of 300 new wells to be drilled. building a water treatment plant with a capacity of 80 000 cubic metres per day and a polymer preparation and injection facilities station which will have a capacity of 17 500 cubic metres per day,” said Malcom. “It is an excellent example of the increasing application of new technology to increase production at PDO’s mature oilfields.” The main Al Khlata reservoir has very heavy, viscous crude and production will be substantially increased using polymer flooding as an enhanced oil recovery technique. Polymer flooding works by MARMUL UPDATE adding polymer to water in order Petroleum Development Oman to make it more viscous before successfully commissioned its first it is injected into the reservoir. full-scale enhanced oil recovery Increasing the viscosity of water project at Marmul in February this leads to a more effective oil sweep year. The Marmul Polymer Project which increases both production in the south of PDO’s concession area, will add a further 8,000 barrels and the ultimate recovery factor. The project will lead to a 10% per day of oil production over the coming years. “This is an ambitious increase in the oil recovery factor from the Al Khlata reservoir. and novel project that involved dedicated producing wells. At Amal East, which contains heavier oil, the steam injection and oil production will take place through the same wells. The steam is first injected into the reservoir, allowing it to heat the oil around the wells, and then the hot oil and water are back-produced from the same well in a repeated cycle. The field-development plan calls for a total of 300 new wells to be drilled over a 14-year period. Facilities ready to receive the “hot” oil are planned to be in place by the end of 2012.
April 2010 Oil&Gas Middle East
31
OMAN COUNTRY PROFILE
ALTERNATIVE ENERGY?
The return of king coal Oman has signed key contracts for coal-fired Duqm power plant
PDO’s state-of-the-art infrastructure. new supplies to meet its goals. PDO dominates the natural gas upstream sector, although foreign companies have been enlisted in new exploration and production products, particularly in the reservoirs which are more geographically complex. Natural gas production in 2008 was estimated at nearly 848 billion cubic feet and it is
5.5
BILLION BARRELS
2009 EIA estimates for Oman’s crude oil reserves stood at 5.5 billion barrels. The agency says production peaked in 2008 at 970,000 BPD.
32
Oil&Gas Middle East April 2010
In November 2009 technical and financial advisory contracts for the Duqm coal-fired power plant were finalised, as Oman pushes forward in its bid to improve electricity generation capacity. WorleyParsons and KPMG, respectively, won the bids to build the 1 000MW station, the Sultanate’s first coal-powered generation site. “The two contracts mean that we are going ahead with Oman’s first coal-fired power project at Duqum,” an official from the state-run Public Authority for Electricity and Water told Reuters. The Duqm IWPP - worth an estimated US $2 billion, including its desal plant - is one of five major ventures that the Omani government is pursuing in order to match capacity to demand. The others are the 420MW Mirbat plant, Barka III (650MW), Sohar II (650MW) and the upgrade of the
believed that production volumes could reach 1.2 trillion cubic feet (Tcf) by 2013. The Khazzan and Makarem fields are estimated to contain significant volumes of natural gas, and BP is currently developing them, hoping to achieve
A coal fired power station has been suggested in Oman. Ghubrah plant in Muscat (additional 500MW). The Sultanate’s lack of natural resources makes the coal-fired option feasible; over in the UAE, Ajman signed a deal with MMC last year to build a coal-fired plant in the emirate.
production in 2010. Foreign companies are contracted by Oman to produce gas from the more technically challenging fields. Oman’s domestic natural gas pipeline system is controlled by the Oman Gas Com-
pany (OGC) but the company has contracted the management of the network to consortium of private companies. The gas network spans about 1,100 miles and brings supplies from production centres to the country’s LNG termi-
www.arabianoilandgas.com
GULF TECHNICAL & SAFETY TRAINING CENTRE
SAFETY • All types of HSE Courses • HUET/Sea Survival Courses (OPITO) • Fire Fighting Courses • Road Safety
Book for trainings at: E-mail: enquiry@gtsc.biz, gtsc@gtsc.biz • Tel: +971-2-5541220 • Fax: +971-2-5541716 Please visit our website: www.gulftech.ae
TECHNICAL • International Certification (IADC, IWCF, OPITO, IMI, ASHI, IOSH, EFR, STCW-95, ETC...) • Developing Personnel from Green-hand to Any Level in Drilling and Well Intervention
GTSC Egypt
GTSC Iraq
GTSC Saudi Arabia
Building 77, Road 104, Behind Armed Forces Hospital Maadi, Cairo, Egypt Tel: +202 252 84753/66059 Fax: +202 252 84756 Email: egypttraining@gtsc.biz, gtscegypt@gtsc.biz
Aen Kawa – Kazma Road Erbil, Iraq Mob: +964 7503115261 Tel: +964 662576844 Email: gtsciraq@gtsc.biz
P.O. Box 3599 Al Khobar, Saudi Arabia Tel: +966 3 8611875 Fax: +966 3 8611843 Email: gtscsaudi@gtsc.biz
OMAN COUNTRY PROFILE
nals, power plants and other assorted domestic end users. The consumption of gas in Oman has increased recently. Factors such as the foray into EOR projects, an economic diversification programme and the 2008 oil price boon all had a significant impact. Between 2007 and 2008 the consumption is believed to have increased by nearly 25%. It is thought that consumption could reach 580 Bcf by 2013. Some of this demand is satisfied through imports from Qatar via the Dolphin pipeline. Last year Oman’s sole natural gas exports were LNG. Approximately Bcf of LNG was exported in 2008, and nearly two thirds of that went to South Korea, with the remainder being shipped out to Japan, India, Taiwan and Spain. Oman has three LNG production trains, with a combined capacity of approximately 320 Bcf.
“Production is expected to increase to between 850,000 and 900,000 bpd in 2010” Oil and Gas Minister Dr Mohammed bin Hamad al Rumhy The company has also found a potentially large gas field. Following an ambitious exploration programme in central Oman, PDO said the major oil discovery had been made at Al Ghubar South, close to the existing Al Ghubar and Qarn Alam fields. In all, four exploration and appraisal wells were drilled in 2009 to confirm the discovery,
RECENT NEWS Petroleum Development Oman (PDO) announced in February 2010 the discovery of three new oil fields, one with a major volume of oil in place. A PDO employee on inspection rounds.
and further drilling to delineate further extensions of the field is planned during 2010. The amount of oil in place could be in excess of 1 billion barrels, the company said. During 2009, PDO made two further oil discoveries at Dafiq West in the north of PDO’s concession area and Anbar in the central region of the Sultanate.
The Anbar discovery, close to the existing Sadad field, followed an innovative drilling campaign in which 12 wells were drilled in a grid pattern. Five of the wells encountered oil in the Gharif reservoir and these are currently being hooked up to the existing production network in the area as part of an early production system designed to evaluate the new field. The new Dafiq West field is close to the Dafiq field which was originally discovered in 2005. A production test well at Dafiq West has already been connected to local production system, joining three existing
OXY IN OMAN Oxy’s Oman operations are concentrated at the giant Mukhaizna oil field in south-central Oman, the Safah field in northern Oman, and adjacent areas. During its 30-year tenure in Oman, Oxy has increased production, reserves and scope, and today is the country’s secondlargest oil producer. At Mukhaizna, Oxy has implemented an aggressive drilling and development program, including a major pattern steam flood project for enhanced oil recovery. As of year-end 2008, gross daily production was over six times higher than the production rate in September 2005, when Oxy assumed operation of the field. Oxy plans to steadily increase production through continued expansion of the steam flood project.
will be hosting its monthly OFG (Oil Field Get- Together) Date: Thursday 29th April 2010 at 12.30 to 3.30 pm. Cost: AED 200 per person including 3 course meal. Beverages sponsored by
34
Oil&Gas Middle East April 2010
www.arabianoilandgas.com
OMAN COUNTRY PROFILE
222K
Oman’s refining capacity stands at approximately 222 000 barrels per day.
test wells from the Dafiq field. Once the evaluation process is completed, the Dafiq West and Dafiq fields will be jointly developed. PDO also said it had made a large gas discovery at Khulud in the north of PDO’s concession area. Gas in potentially large volumes was found at a depth of more than 5000 metres. Two new wells are currently planned in the area in 2010 to help evaluate this discovery, the company added.
www.arabianoilandgas.com
Shell, through PDO, has a fuel blending plant just outside of Muscat. Marine lubricants and fuels are produced here. “These four discoveries represent an important success for PDO’s exploration efforts during 2009,” managing director John Malcolm said.
“They highlight the continued hydrocarbons potential of Oman’s subsurface and shows that there will be opportunities for further explora-
tion for many years to come.” Oman’s output is dwarfed by its OPEC member neighbours, but it is on course to remain an exporter for now.
April 2010 Oil&Gas Middle East
35
ADCO GM INTERVIEW
Abdul Munim Al Kindy tells Oil & Gas Middle East how enhanced oil recovery projects are no longer the preserve of the depleted field, and how ADIPEC couldn’t come at a better time owering above the rapidly transforming Abu Dhabi skyline and commanding views which stretch from jack-ups rigs at one end of the corniche, to the gleaming dome of the Emirates Palace in the other is the Abu Dhabi Company for Onshore Operations, (ADCO) HQ. This is the nerve centre for a
T
www.arabianoilandgas.com
Abdul Munim Al Kindy, general manager of Abu Dhabi Company for Onshore Oil Operations.
company capable of churning out over half a billion barrels of black gold – a sustainable capacity rate touching 1.4 million barrels of crude each day. The resources belong, of course, to Abu Dhabi, and ADCO works as an operator firm within the ADNOC group umbrella. ADCO can trace its origins back to 1939
(laying claim to being the oldest organisation in the country). The company switched its legal status to operator on its 40th anniversary in 1979, and ever since has served its stakeholders – key minority IOC partners and the National interest. The switch itself was largely administrative in its nature, but freed the company up
April 2010 Oil&Gas Middle East
37
ADCO GM INTERVIEW
“The company began life with a concession and ten years later drilled its first well. Unfortunately that was dry and drilling moved on to Sharjah and Dubai. It wasn’t until 1958 that the company made its first discovery, and we began shipping in 1963. From there, well what you see around you in Abu Dhabi today is inextricably linked to ADCO.” Indeed, the majority – 60% in fact – of Abu Dhabi’s crude output is thanks to the activities of ADCO. However, with a raft of new projects the numbers will reflect an even greater proportion of the state’s revenues to the onshore operator. “Today it is around 60%, but we will play a more dominant role in crude output as we increase our oil production,” reveals Al Kindy. The ADIPEC 2008 conference was chaired by Ali Al Jarwan, general manager of ADMA-OPCO. The company is also the UAE’s largest producer of gas. “We produce around 4.5 to strike an incredibly efficient balance of pioneering cutting edge enhanced oil billion cubic feet of gas per day from associtechnical skills from its upstream partners, recovery project schemes. ated and non-associated production. Almost combined with the capital backing and vast Oil & Gas Middle East spoke with Abdul at point of source we pass this to our sister resource wealth of the ADNOC Group. Munim Saif Al Kindy, ADCO general man- company GASCO,” he says. The mix has proved a potent one. In spite ager ahead of the most recent ADIPEC of the collapse of the oil price in November conference leadership panel, of which he is TH E CARB ON CONU NDRU M 2008, the company has forged ahead with this year’s chair. The company has major plans afoot to susits onshore E&P projects – and today is The sense of history with ADCO is tain that gas production. “There are some tackling some of the most technically chal- intermingled with the promise and hopes really interesting recycling projects which lenging frontier projects anywhere on the for the future of Abu Dhabi, the two inextri- will enable us to reduce the natural gas we planet. Sustaining production in mature cably linked when Al Kindy talks about his currently use for injection, such as CO2 fields and increasing output at new sites current role. enhanced recovery techniques which warrant a proper investigation.” On November 11 last year the company began the first advanced CO2 injecADCO GM IN R POFIE L tion project on a carbonate reservoir in the Abdul Munim Al Kindy joined the Abu Dhabi MENA region. “If we can technically assert Petroleum Company (ADPC) in 1975, as an the value of CO2 in terms of enhanced oil apprentice, and continued his further educarecovery then we may start a much wider EOR scheme at one of our major fields by tion in the UK. He graduated in Mechanical 2016,” reveals Al Kindy. Engineering in 1982. He occupied a number The general manager says that whilst of senior positions in all onshore fields and the technical challenges and commercial terminals. In 1990 he joined British Petroleum, viability issues of EOR projects remain sigon secondment, and worked in North Sea nificant, the way the company is formed operations, commercial, and strategy developwith key stakeholder partners means it has ment. In 1997 he was appointed as the deputy access global experience and knowledge general manager of ADCO, joined National when it comes to understanding of CO2 Drilling Company in 2001, as General Manager. injection projects. He returned to ADCO in 2007 as its general “One of the significant contributions manager, and will be the chairman of the 2010 Abdul Munim Al Kindy. which our major oil company partners ADIPEC conference in November. make to ADCO is the input of technology,
38
Oil&Gas Middle East April 2010
www.arabianoilandgas.com
ADCO GM INTERVIEW
“The problem was, and always has been, that the industry as a whole tries to do the same things all at the same time. This is a cyclical industry, so to be an efficient operator you have to position yourself well ahead of demand curves” Abdul Munim Al Kindy, ADCO general manager
Abu Dhabi will pull put all the stops for ADIPEC.
so between our stakeholder partners we can tap a wealth of experience and knowledge when it comes to CO2 injection. These partnerships have been quite effective in terms of shaping and contributing to our objectives and programs.” Whilst many firms around the world are dabbling with carbon sequestration and storage, Al Kindy says the work being done at ADCO is helping the company consolidate a regional leadership role in developing and executing CO2 related EOR projects – actually increasing production.
“The application of CO2 has proven its worth in fully depleted reservoirs and sandstone formations, but some of the projects we have in our portfolio and in our sights will mean injection during the early stage of a big field’s life. We don’t really know exactly how the field will react because there are a lot of variables including porosity, geology et cetera.” Al Kindy hints that a wider supply issue may develop fruitful relationships within Abu Dhabi’s own borders, and form part of a carbon masterplan. “Of course, the
For sponsorship opportunities, please contact: Jason Bowman Publishing Director Tel: +971 4 210 8351 Email: jason.bowman@itp.com
For nomination enquiries, please contact: Stuart Matthews Senior Group Editor Tel: +971 4 210 8476 Email: stuart.matthews@itp.com
Raz Islam Commercial Director Tel: +971 4 210 8587 Email: raz.islam@itp.com
For table bookings and further information, please contact: Annie Chinoy Deputy Marketing Manager Tel: +971 4 210 8353 Email: annie.chinoy@itp.com
WEBSITE NOW LIVE NOVEMBER 2010 DUBAI, UAE
FOR A CHANCE TO HAVE YOUR ACHIEVEMENTS RECOGNISED AT THIS YEAR’S AWARDS OR TO BOOK YOUR PLACE AT THE GALA DINNER, PLEASE VISIT:
www.constructionweekonline.com/cwawards
www.arabianoilandgas.com
April 2010 Oil&Gas Middle East
39
ADCO GM INTERVIEW
ADCO is in execution phase for high-end EOR projects as the sun sets on the era of easy oil. commercial aspect of establishing a carbon supply partner needs to be examined very closely, but I think we will have a lot of interesting opportunities to work with Masdar.”
AH EAD OF TH E CURVE Abu Dhabi reinvigorated its status as a focal point for upstream oil and gas firms when the repercussions of a tumbling oil price sent shockwaves across the E&P world. By forging ahead with many of its upstream developments Abu Dhabi became the watchword for oilfield service companies not just within the region, but globally.
Problems for many operators were beginning to show well in advance of the global financial crisis and subsequent oil price freefall in 2008. When the futures markets for crude deliveries reached a peak in excess of $147, the problem for operators was to battle with was far from one of revenues – indeed it was spiralling costs. As the pool of able and available EPC contractors became stretched ever more thinly, the cost of upstream projects skyrocketed. “The problem was, and always has been, that the industry as a whole tries to do the same things all at the same time. This is a cyclical industry, so to be an efficient opera-
tor you have to position yourself well ahead of demand curves.” Al Kindy says that ADCO, with the blessing of the Supreme Petroleum Council, was able to push ahead with a lot of the projects it had slated, and has achieved quite exceptional gains from the timely access to EPC contractors during a market downturn. “We have gained probably 30% on our budgets. This hasn’t just been approaching the market and demanding better prices, it can only come about through open and transparent competition.” The general manager says that once the marketplace understands and trusts the openness of the process, real competition comes into play. “For example, on a billion dollar project, if you had eight bidders, the variation in prices tendered can be a little as 1%. This is because all the contractors drive their margins in order to win business, and because of this we have seen some excellent results on our budgets and forecasts.” “The SAS project (Sahil, Asab and Shah field development) was budgeted at $4.5 billion but was awarded for $3.5 billion, and the Bab compression facility, which was tendered for $1.5 billion was awarded for almost a 40% saving,” reveals Al Kindy. The company has almost come to the completion phase for many of its big ticket projects, so the emphasis from the operator’s perspective has shifted to one of timely execution, bringing projects in on time and on budget.
IN TH E PIPELINE The Abu Dhabi Crude Oil Pipeline Project aims to offset reliance on Arabian Gulf oil terminals while reducing shipping congestion through the Strait of Hormuz, essentially strengthening overall export capability on the eastern coast of the United Arab Emirates. Originating from Habshan in Abu Dhabi - the current collection point for Abu Dhabi’s onshore crude oil production - ADCOP will terminate in Fujairah. The 48-inch-diametre pipeline has been designed to transport some 1.5 MMBPD of crude oil from ADCO facilities at Habshan over a distance of 370 km to an oil terminal in Fujairah for export through offshore loading facilities. The scale of the project is immense and encompasses the construction of the main oil terminal and offshore loading facilities at Fujairah, in addition to the installation of the main pipeline. “ADCOP is an IPIC project, and ADCO will become the operator once it is completed. When the pipeline is operational ADCO will have two terminals to export from, which gives the market new options and added security of supply,” explains Al Kindy.
40
Oil&Gas Middle East April 2010
www.arabianoilandgas.com
ADCO GM INTERVIEW
ROAD TO ADIPEC This November will see Abu Dhabi fling open its doors once more to the world’s upstream community for the colossal Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), which runs 1st - 4th November. Al Kindy will be Chairing this year’s conference, and he says the timing of the event (which is held every two
years), could not be any better. “It really is an interesting time for ADIPEC – It is ideal really. This is where the key industry issues surrounding the oil that will fuel us all for the next twenty years will be discussed. There is a real and fundamental urgency for suppliers and developers to come together and see what is out there and come up with new ideas,” he says. “Whether you are looking at methods to sustain your production or increase your production, this is the time that everybody is doing it. ADIPEC 2010 is really coming at a critical juncture for the industry.”
“The SAS project (Sahil, Asab and Shah field development) was budgeted at $4.5 billion but was awrded for $3.5 billion, and the Bab compression facility, which was tendered for $1.5 billion was awarded for almost a 40% saving,” Abdul Munim Al Kindy
BUILDING A NATIONAL WORKFORCE Enhancing human capital and building a homegrown knowledge pool is one of Al Kindy’s personal priorities, though he stresses the company is already a high-acheiver in this field. “We have a situation facing us where the future supplies of oil will be heavier, more sour, and in physically more challenging downhole environments to work in.” Whilst important work is being made with enhanced oil recovery and digital oilfield improvements, Al Kindy says the solution will not simply come from improving pracitices and recovery rates. “Technology is not the catch-all solution. We must ensure we have the human capital in development now in order to implement the developments the industry is working on now. Al Kindy highlights the ageing staff issue which is facing every upstream operator. “Somehow this has to be tackled without dilution to the knowledge pool. We are continuously exploring how we can attract youngsters to the industry. There is an underlying image for the upstream industry
818 men 219 women
The Petroleum Institute in Abu Dhabi currently has over a thousand undergraduate students enrolled. To date 44 graduates have begun careers with the ADNOC group of companies.
www.arabianoilandgas.com
The Petroleum Institute in Abu Dhab is preparing the next generation. with the youth of today.” The general manager points out that many college and university aged students view oil and gas as short term and environmentally damaging. “It’s more important than ever that this trend is reversed. Locally we have been aggressive in trying to find effective solutions. ADNOC pioneered the setting up of the Petroleum Institute, and we now have male and female collages covering five key disciplines, and we are seeing the quality engineers coming in. This is definitely already having a positive impact and is allowing us to see quality engineers who are easily integrated into our organisations come through the system. We have prepared the ground work – in fact ADNOC has been a pioneer of integrating females into field work in this region.”
April 2010 Oil&Gas Middle East
41
WORLD PIONEERS
IN STEEL BUILDING INDUSTRY Low-Rise buildings for all applications, industrial, commercial, and institutional ‌ ranging from warehousing to multi storey shopping complexes and aircraft hangars.
engineering resources, manufacturing capabilities, along with the international experience of our certiďŹ ed builder sales network, to provide a total solution for your building needs. We'll apply our vast
w w w. z a m i l s t e e l . c o m
ADCO GM INTERVIEW
produce the most comprehensive edition of ADIPEC yet. The topics are set to draw out the best of the technical proficiency and futuristic vision from our industry experts including drilling and completion technology, future exploration and geosciences approaches, intelligent fields, CO2 management, enhanced hydrocarbon recovery, conservation strategies in HC production, HSE, the next generation of field developments and projects, and operations of the future. “Someone wise once said to me that to be an expert in any field in the oil and gas industry starts with reading every SPE paper on the subject. Very slowly you build from there. This conference is going to be an excellent platform and tool for the delegates,” beams Al Kindy. The ADIPEC 2010 conference steering committee meet at ADCO’s HQ in Abu Dhabi to finalise the agenda. The conference and exhibition is the largest gathering of upstream suppliers and technology firms in the Middle East, and the conference has always delivered topical and thought-provoking sessions. “Speaking for ADCO, it will be really important for us to share views with peers in the industry and exchange technical know-how. The SPE (Society of Petroleum Engineers), has help made this industry quite an open one in the way it promotes the sharing of ideas, and myself and the steering committee have been working very closely with the SPE to bring experts to Abu Dhabi to discuss what they have been working on. Ultimately it’s a fantastic learning tool, and is really exciting for young engineers.” The committee, through the SPE have been receiving and collating abstracts for a few months, but the excitement surround-
ing this year’s event is evident in the submissions to date. “By this time two years ago we had received 80, to date we have over 290 – a massive increase. Last time over 800 abstracts were submitted in total, and I hope we can exceed that.” At the time of going to press Oil & Gas Middle East discovered the call for papers has been extended to April 15. With the theme “Delivering Energy in the Low Carbon Era: Challenges and Opportunities”, the programme committee for ADIPEC 2010, co-chaired by Fareed Abdulla, ADCO and David Marsland, Shell, has set its focus on vision, surface and sub-surface technical topics and aims to
“We have gained probably 30% on our budgets. This has not just been by approaching the market and demanding better prices, it can only come about through open and transparent competition” Abdul Munim Al Kindy
www.arabianoilandgas.com
Al Kindy says ADIPEC 2010 is shaping up to be the most successful yet.
April 2010 Oil&Gas Middle East
43
ADIPEC PREVIEW
The Middle East’s premier upstream event kicks off on November 1st – have you got your stand yet?
Hifazat Ahmad, ADIPEC 2010 event director
44
ADIPEC 2010, the world’s second largest upstream oil and gas event is almost totally sold out, with seven months still to go, according to Hifazat Ahmad, this year’s event director. “We are now close to 96% sold out,” revealed Ahmad. The overall space in the main halls at Abu Dhabi National Exhibition Centre (ADNEC), excluding the concourse, is around 31 000m2, and so far over 30 000m2 has been sold.” OTC in Houston still holds the top spot in terms of footfall, exhibitor numbers and floor
Oil&Gas Middle East April 2010
space, but ADIPEC, which is targeting its biggest year to date, is fast approaching the number one spot as the global focus for exploration and production investment shifts to the Middle East. To have sold so much of capacity this far in advance of an event is unusual says Ahmad, but is a reflection of refocusing global attentions, and the inexorable rise of Asian firms in the upstream arena.“Firstly,I think this is a reflection of the quality of event, and the overall health of the oil and gas industry. It may not be booming, but it is in a very healthy state right now. People are still looking to grow their businesses.”This year’s event has attracted record interest from Asia, with more floor space
taken than ever before by South Korean and Chinese firms, in addition to the national pavilions. “Overall there has definitely been greater interest from Asia this year. China is now our biggest national pavilion and they are still asking for more space. South Korea and India have been stronger than ever before too.” “American and Canadian participation has grown somewhat. There is a trend of more North American companies wanting to do business here,” says Ahmad. Despite these strong figures it is still too early to accurately predict footfall for this year’s event. However, ADIPEC 2008 attracted just over 39 000 delegates. “My target this year is to reach 45 000,” says Ahmad.
NEWS FLASH www.ArabianOilandGas.com is the official online Media Partner for ADIPEC 2010 – Make sure you are up to speed by logging on today. For unique news and views in the run up to ADIPEC, and to post your own news in the run up to the show contact us by e-mail at OilandGas@itp.com
www.arabianoilandgas.com
ADIPEC PREVIEW
2008
Approximately 1600 companies have booked oor space for ADIPEC 2010.
www.arabianoilandgas.com
April 2010 Oil&Gas Middle East
45
DRILL PIPE COATINGS
to get specifications changed with National Oil Companies in the region. Whilst a lot of local wells may not necessarily be classed as difficult, the downhole environment can be quite challenging, and with extremely sour oil there is a tendency to over-engineer and over-design in order to ensure a broad safety margin,” he says.
LOCAL MOTION Until recently 100% of API accredited drill pipe was imported to the region from steel mills abroad. However, seamless drill pipe manufacturers are flocking to the region, initially in Saudi Arabia, but also in the UAE. Dyer says that local market dynam-
ics is changing the dynamics of drill pipe procurement. “Now that pipe manufacturers are coming up in the region I am sure there will be string support from operators or even National Oil Companies to see these businesses flourish. Building up local capabilities has long been an ambition in the Middle East, and this is an opportunity I can see being seized.” In order to ensure a smooth and efficient supply chain, from the operator order through to pipe delivery, NOV Tuboscope has 16 pipe coating plants dotted around the globe, in close proximity to major manufacturing partners. “In order to maintain that speed and flexibility, now that local mills will be making a larger portion of the pipe used in the Middle East, we are building our own state of the art coating facility in Abu Dhabi’s Industrial City (ICAD).” The new facility will be operational this year, and tours of the coating plant and its technology will be arranged at this year’s ADIPEC event. “These local mills will want to compete on
Jack Dyer, NOV Tuboscope.
www.arabianoilandgas.com ww www w ww w w..ar .aa abiano abi aab biano bi aanno nnoila oila iland landg nnddg dgaas. asss..cco com oom m
April 2010 Oil&Gas Middle East
47
the
Power of One
™ One-source power solutions from Cummins Power Generation: Island mode or paralleling to incoming power source Full range of diesel and gas gensets, 8kW to 2700kW, 50hz and 60hz Fully-integrated systems with automatic transfer switches, switchgear and controls Cummins reliability and support, when and where you need it Fast response and delivery, worldwide Trusted relationship from Cummins’ extensive dealer network
To see the Power of One™ in action, visit www.cumminspower.com
DRILL PIPE COATINGS
Coating of pipes is crucial. a global scale. In order to compete with the major names in drill pipe manufacture these firms will want the credibility that third party inspection firms can provide, so that is another area of the Tuboscope business I expect to grow,” explains Dyer.
LOCAL MANUFACTURING VAM Drilling, part of the Vallourec Group, is a fully integrated provider of drillstem products, and has recently stamped its presence on the Middle Eastern market with a series of acquisitions, including Pro Tools, and the D-PAL manufacturing and supply centre in Jebel Ali. The DPAL FZCO manufacturing facility located in the Jebel Ali Free Zone (Dubai, UAE), offers a large range of drill pipes to the oil drilling industry in the Middle East, where it enjoys an excellent service reputation. It
25000
VAM Drilling’s Dubai fabrication plant has an annual production capacity for 25 000 joints.
www.arabianoilandgas.com
has an annual production capacity of 25 000 joints. “We offer a complete range of high-performance products and services for the toughest drilling applications, including drill pipe, heavy weight, drill collars, accessories and performance drilling systems,” says Anthony Monnet, regional manager, VAM Drilling. “For the local market VAM Drilling has equally supplied drill pipe from Europe, the USA and now the Middle East. Thanks to its new Drill Pipe and BHA manufacturing facilities, VAM Drilling Middle East FZE is now capable of supplying its regional clients with full package API and Premium proprietary products with short lead times and proximity services,” says Monnet. The acquisition of DPAL is in line with VAM Drilling’s strategy to be closer to our clients and to optimize our offer: short lead times, improved responsiveness by acting local,and overall optimized services. VAM Drilling takes full advantage of its vertical integration with the Vallourec Group to provide guaranteed quality every time. “We are very pleased with the equipment and layout of the new VAM Drilling Middle East facility. As is generally the case in any acquisition, once we have fully realised the capabilities of the facility we have made the necessary changes to ensure that we meet the level of quality demanded by VAM Drilling throughout the world.” Many drilling environments and well profiles encountered in the Middle East require high sour service resistant grades, high-torque and fatigue resistant drill pipe as well as performance drilling solutions. “These
The coating of a pipe can negate the need for expensive high grade steel. demands are driven by the regional National Oil Companies’ needs for new reservoirs to feed growing regional gas production. VAM Drilling’s innovation strategy and service oriented development is built to achieve these targets. Though business is largely dependent on drilling activity, which has been suppressed across the world in the last year, Monnet says that the acquisition has been completed in a timely manner in order to capitalise on anticipated growth. “Regional drilling activity has not yet fully recovered, although during the 1st quarter
of this year we have seen major oil companies start to move forward on highly challenging and long term projects which clearly indicates their confidence in the future,” he concludes.
FUSION BONDED EPOXY COATINGS: These coatings are available in thick and thin films that are applied in powder or liquid form over a proprietary primers layer to deliver maximum adhesion and superior downhole performance.
April 2010 Oil&Gas Middle East
49
MARINE FOCUS
their storage, meaning that they can deliver a lot quicker if they get an enquiry from their customers. So they don’t have to wait for a cargo to come in from the Arabian Gulf. What was the typical clean product carrier day rate in 2009?
In 2009 the market went down quite dramatically and time charter rates fell from the high teens to the low teens so if you wanted to rent yourself a product tanker for a year, you could probably find it in the region of $11-12k a day. The spot market was a little bit lower and I think the rates on the spot market over the year fluctuated Gulf Navigation Holding operates a modern fleet and has business across the globe including the Middle East and Asia. from $5-$12k per day. There is some improvement this year, ing them and releasing them not much but there is improveagain. And this affects my sense ment. The time charter rates of justice because what is stopare probably $12-13k per day ping these people going back and the spot market is $8-14k to shore getting more arms and per day depending on where starting all over again. So we you are. These rates are for an would like to see some stronger measures taken. I think that MR product tanker which is a requires some political decision standard product tanker. and probably some land operation to deal with this issue. How has piracy It is not an easy task. What affected your business? we do at Gulf navigation when We have not been affected yet. I we have a ship in those waters, think everybody is in a wait and and that happens often, is we see position. For our company barbed wire the ships, we go we haven’t luckily had any prob- full speed to make it hard for lems yet but if you speak more a small ship to board, and we generally then it is a big issue never go through without naval and we as ship owners can only protection. We put the safety appeal to the relevant authori- of our seafarers very high and ties and get their act together luckily so do our charterers. We and get an international legis- typically wait until an escort ship lation in place that will allow is available to convoy a number the naval forces to actually do of merchant ships through the affected areas. I salute the naval something about the problem. What they are doing right ships that are are helping the now, is whenever they are catch- merchant ships in this situation. Per Wistoft is chief executive officer of Gulf Navigation.Holding PJSC. ing the pirates they are disarm- It is very valued.
“Right now, whenever they catch pirates they are disarming them and releasing them again. And this affects my sense of justice”
www.arabianoilandgas.com
April 2010 Oil&Gas Middle East
51
AL SHAHEEN FDP INSTALLATION
aersk Oil Qatar announced last month the successful installation of the last of 15 new platforms and other offshore facilities as part of the Al Shaheen Field Development Plan (FDP). The firm, along with Qatar Petroleum, is developing Qatar’s largest offshore oil reservoir under a complex development plan at an investment of around $6 billion. “We are very pleased to have reached this important milestone within the project, safely and on schedule. We are now able to focus on optimising production from the Al Shaheen field, supporting Qatar in its vision to become one of the
M
COMPLETION COUNTDOWN Unveiled: The final installation of Maersk Oil Qatar and Qatar Petroleum’s landmark Al Shaheen Field Development Plan www.arabianoilandgas.com
April 2010 Oil&Gas Middle East
53
AL SHAHEEN FDP INSTALLATION
world’s major energy players,” Maersk Oil Qatar acting managing director Sheikh Faisal Al Thani said. “The size and vast technological scope of the project has made a significant contribution to the growth of Qatar’s knowledge-based economy, offering unparalleled learning opportunities to local talent, as well as some of industry’s best engineers,” he added. The FDP encompasses the installation of new platforms and associated facilities totalling 131 000 tonnes, and the drilling of a vast network of oil
production and water injection wells. That target is less than a year away from coming to fruition. “We expect to achieve our target of 160 wells by the end of Q1 2011,” Peter Balslev, head of drilling engineering, maersk Oil Qatar told Oil & Gas Middle East.
The installation project team had to overcome difficult weather conditions.
AUSPICIOUS BEGINNINGS Maersk Oil entered into an Exploration and Production Sharing Agreement with Qatar Petroleum. Under the agreement, Maersk Oil would evaluate the possibilities of establish-
Over 160 wells will be drilled by 2011.
The topsides were constructed in Abu Dhabi by NPCC.
Block 5 sits to the North East of Qatar.
54
Oil&Gas Middle East April 2010
www.arabianoilandgas.com
AL SHAHEEN FDP INSTALLATION
“The project has made a significant contribution to Qatar’s knowledge-based economy, offering unparalleled learning opportunities” Sheikh Faisal Al Thani
Sheikh Faisal Al Thani, Maersk Oil Qatar acting managing director
We create
the solution
world-class Where safety knows no compromises _ R. STAHL sets new standards. As one of the leading
ing commercial oil production from Block 5 - an area of originally 3,500 square kilometres offshore Qatar. The exploration and exploitation rights include all Block 5 geological formations above the Khuff Formation, which contains the “North
LICENCE DATA Licence: Block 5 & Block 5 Extension Area Location: Qatar Arch Area: 2.214 sq. kms Operator: Maersk Oil
www.arabianoilandgas.com
Field”, the world’s largest nonassociated natural gas field. In 1994 oil production from the Al Shaheen Field in Block 5 commenced. In 2004 Maersk Oil entered into an Exploration and Production Sharing Agreement for Block 5 Extension Area, applicable for the reservoirs in Block 5, covering an area of 139 square kilometres north of Block 5. In December 2005, Maersk Oil Qatar and Qatar Petroleum agreed on a plan for further development of the Al Shaheen Field offshore Qatar. The 2005
suppliers of systems and components for hazardous areas, we offer the complete spectrum for the following fields: > Automation > Distribution and Control > Operating and Monitoring > Installation Equipment > Lighting > Alarm and Signalling. R. STAHL stands for modern explosion protection worldwide. With their great commitment, competent teams attend to the safety of people and facilities. We will gladly assist you. R. STAHL Middle East FZE, Dubai, U.A.E., Tel. + 971 4 8835855 or info@stahl.ae
April 2010 Oil&Gas Middle East
55
AL SHAHEEN FDP INSTALLATION
Field Development Plan (2005 FDP) comprises drilling of more than 160 additional production and water injection wells during a 6-year period from 2006, as well as establishment of three additional offshore platform locations with production and accommodation facilities - 15 new platforms in total - interconnected by sub sea pipelines. As part of the 2005 FDP, Maersk Oil Qatar will also build and operate additional facilities for
56
Oil&Gas Middle East April 2010
gathering and delivery of associated gas to Qatar Petroleum for utilization at their onshore plants. In 2008 the oil production was in average some 330,000 barrels per day.
PHASED DEV ELOPMENT The first phase of activities in Block 5 under the agreement with QP included acquisition, processing and interpretation of 2D and 3D seismic data and
subsequent drilling of appraisal wells in the Al Shaheen Field plus exploration wells at other locations within the block. The drilling of appraisal wells in the Al Shaheen Field was completed in 1994. An early test production scheme was agreed with Qatar Petroleum and implemented accordingly providing for start of regular oil production in 1994, 2 years after commencing the activities in Qatar. The Al Shaheen
Field production facilities were extended during 1995 to 1996 with new subsea export pipelines, an additional single point mooring loading buoy, new process facilities and a STAR type wellhead platform. Simultaneously, a number of horizontal wells were drilled in the field. Besides adding to the total production, the new wells targeted previously unexploited reservoirs, tested alternative well completion techniques and
AL SHAHEEN FDP INSTALLATION
New facilities totalling 131 000 tonnes of steel were involved in the offshore mega-project.
www.arabianoilandgas.com
April 2010 Oil&Gas Middle East
57
AL SHAHEEN FDP INSTALLATION
enabled water injection trials. During the period 1996-1999, further wells were drilled.The Al Shaheen Field crude oil blend is lifted by customers from a floating storage tanker moored at the Al Shaheen Field location, formerly the Knock Nevis, the
largest ship in the world, though planning and rigorous scheduling has allowed the project to she has now been retired. grow smoothly, and safely. “Our contractors had to INSIDE IVEW John Cheesebrough, senior contend with a supplier marproject manager, has worked on ket that in many cases was all three stages of the develop- over extended and therefore ment plans, and says intricate deliveries affected or less reli-
able than would otherwise have been expected,” explains Cheeseborough. “But they were very experienced and were able to work around these difficulties with support from the Maersk Oil site representatives. The weather
Inside an Al Shaheen offshore platform.
58
Oil&Gas Middle East April 2010
www.arabianoilandgas.com
AL SHAHEEN FDP INSTALLATION
“For the whole Al Shaheen Field we expect 550 - 600 people to be working with operations and maintenance offshore” Karsten Jensen, Maersk Oil Qatar
www.arabianoilandgas.com
April 2010 Oil&Gas Middle East
59
AL SHAHEEN FDP INSTALLATION
conditions of 2009/2010 also proved to be a challenge, but one that they overcame.” The major process and utility platforms were manufactured by NPCC in Abu Dhabi and Sime Darby, Malaysia; the wellhead platforms by J.Ray McDermott in Dubai’s Jebel Ali Free Zone and Larsen & Tou-
John Cheeseborough, senior project manager.
bro in India. The accommodation platforms were manufactured and shipped in from the UK. Each of the platforms has been installed on fixed jackets at defined locations, where they will remain for the project lifespan. Getting the project off the drawing board and to where it is today has, of course, been
Karsten Jensen, technical director, Maersk Oil Qatar.
a significant personal milestone, but also one I’m sure for the many Maersk Oil engineers, inspectors and support staff involved in the project at all locations. All involved were extremely committed and hard working, which is an important part of why this project was executed successfully,” he adds.
Once construction is complete, the site will be a semi-permanent home to many offshore workers. “For the whole Al Shaheen field, we expect around 550-600 people to be working with operations and maintenance off-shore,” said Karsten Jensen, technical director of Maersk Oil Qatar.
The Al Shaheen project is the fruition of almost two decades of upstream engineering.
60
Oil&Gas Middle East April 2010
www.arabianoilandgas.com
CEO INTERVIEW
Drydocks World fabricated the hulls and support structures for the Aker Solutions H6 E semi submersible drilling rigs.
BUILD & DELIVER Drydocks World CEO Geoff Taylor reveals that the global shipyard owner is unleashing its EPC and project management ambitions with a firm eye on upstream offshore work rydocks World is outgrowing its reputation for ship repair and maintenance and is making a substantial grab for a slice of upstream contract work. With new vessel building, rig refurbishment, repair and new builds, and a raft of offshore packages already under its belt, chief executive officer and executive chairman Geoff Taylor says its time for the group’s yards to take the next step and announce its arrival in the EPC
D
62
Oil&Gas Middle East April 2010
and project management sector. “Ship repair is still a major and significant part of what we do, but we do a huge amount of rig refurbishment as well, so we are actually bigger in offshore than many people expect. For example, right now in the Dubai yard we have one semi-submersible, one jack-up rig, as well as the usual array of FPSOs.” The company has a strong pedigree in the FPSO conversion market, and through that work has built a valuable knowl-
edge and skills base well suited to other major offshore work. “From the Dubai yard we have also branched out into new building. This hasn’t been a huge part of the business yet, but we have done some very sophisticated projects, notably the Aker Solutions H6 E hulls and support structures, which was a substantial job. There is 15 000 tonnes of steel in each of those units,” says Taylor. Following the group’s acquisition of yards in South East
Asia (three in Indonesia and one in Singapore), the company has built upon a sound offshore offering, with primary areas of expertise in anchor handlers, big offshore structures and tugs. “Those yards have a heavy leaning towards the offshore market. We have several jackups in those yards right now,” he says The upstream capabilities, and shift towards capturing more EPC work is a point Taylor is keen to get across. “Whilst
www.arabianoilandgas.com
CEO INTERVIEW
ship repair and maintenance is a core fundamental part of the business – it is certainly not what we are limited to. We have expanded our business, importantly not by crushing more business into our existing yards, but by acquiring and equipping appropriate facilities. For example when we began new building work in Dubai we built a separate load out facility and workshops specifically for that purpose.” Ultimately Taylor wants the company to move from being a contractor to carrying out EPC project work direct for the client. “We have made significant strides in that direction. We have sourced alliances and JVs with engineering and project management firms. All of the elements we have not historically had in house we will cultivate and incorporate into our overall offering.” Though the focus will initially be on specialised offshore installations, the Drydocks World yard in Dubai new build facility has been built to handle anything up to VLCC size. “If the margins were right we are certainly capable of handling a job such as a newbuild FPSO, but there is around 40 000 tonnes of steel in a VLCC so that would be an important consideration if you were building in the Middle East,” explains Taylor. The shift towards the engineering remit has been part of a natural evolution for the group. “We have been a construction contractor now for many years, progressively taking on more of the engineering involved too. Some clients are happy to let the yards take the engineering because it can be much more efficient. If you are doing your engineering remotely, then
www.arabianoilandgas.com
when construction issues arise it can take time to get that remedied, which actually frustrates the ongoing work. Sometimes a solution may be agreed upon which has knock on effects for work which has continued, so we think it’s a better service to offer a more complete package.” Taylor says the roll out of EPC capabilities will happen on a case by case basis. “Some customers still want control over all of the topsides work, for example, but we could take on all of the marine engineering work. In The company boasts yards in Indonesia, Singapore and the United Arab Emirates. a measured and controlled way we are looking to take on more of that engineering work.” With the facilities and the resources the company can call upon from its global network of yards and staff, supplemented by suitably qualified JV partners, Taylor says it would be ridiculous to think the firm would not eventually move into that market. “There are many players in the field, much smaller than us, who take on EPC work and then sub-contract out huge amounts of the engineering, essentially glorified construction yards, but they’ve taken more risk away from the client, so that trend has grown.” New build offshore modules is an area Taylor says the group is likely to take an active role in. “We have seen, around the world that a lot of major module projects are held up by complications in design and parallel engineering. The key factor to the end user is hitting their delivery dates. We don’t make any money with vessels hanging around in our yards, so getting the vessels out on time is essential to both us and the client.” Geoff Taylor says taking on more EPC work is well within the firm’s capabilities.
April 2010 Oil&Gas Middle East
63
CEO INTERVIEW
Drydocks World is looking to build upon its marine pedigree by branching out into the upstream EPC market. Offshore modules will be on its target list.
“The early indicators out there right now suggest that a cautious optimism is creeping back into the market. For oil and gas related industries in particular conditions look more favourable now than they have for some time” Geoff Taylor, Drydocks World CEO Drydocking facilities at the Dubai yard are among the world’s largest. FPSO and jack-up work has proven the group’s capabilities, though Taylor insists that, despite boundless ambition, the company is clear on where limitations do lie. “If it comes to something complex such as an advanced compression unit, then we will be in a position to say we have a strategic partner embedded within our organisation and they will have the pedigree that upstream companies look for.” “If there is a job where external experience outweighs our own, we are in a position,
64
Oil&Gas Middle East April 2010
or very soon will be, to bring that expertise in as part of our offering.” The longevity of the downturn in terms of global yard activity must be drawing to a natural conclusion, asserts Taylor. He explains that when markets are depressed and owners choose to operate at maximum intervals between yard work, there comes a point where those rigs simply must come in. “The fact that very little work has been carried out over the last 18 months suggests that something has got to happen pretty
soon. Owners can’t do nothing for such an extended period of time. The oil price has been steady, and if anything creeping northwards and that suggests that investment will start to kick in again pretty soon.” Maximising the group’s global capabilities will be the maxim that dictates its 2010 business ethos. Growing the market’s awareness away from a Dubai-centric view of the company’s offering will entail a global effort, and one that will see the group assert itself ever-more promi-
nently in the upstream sphere. “The early indicators out there right now suggest that a cautious optimism is creeping back into the market. For oil and gas related industries conditions look more favourable now than they have for some time. My goal is to make sure that by the time the market is back in full swing, Drydocks World is recognised as an EPC and project capable outfit, which has maintained its quality and reputation in our mainstream marine business too,” concludes Taylor.
www.arabianoilandgas.com
CEO INTERVIEW
acquisitions. While days such as today show the positives attached to this, Alalawi reveals it does not come without challenges. “When you start expanding in double digits every year, we are talking about from 2009 to 2010 growing 77% - that is a huge. Then of course promoting from within and training from within just cannot fulfill the experience level we are looking for, so we have to hire from our competitors,” he sates. “We are talking about over 20-25% of new recruits coming in from alien cultures and the challenge is to not lose the culture. The strength of AlMansoori is the special family culture where everybody feels they are part of a family, not just a number,” he adds. Family events such as the open day go a long way to reinforce that structure but the company also has huge ambitions in the area. Alalawi says for them, 2010 is a big year. “We are very buoyant, 2010 is a year where a lot of our clients have been able to put their act back together after a bad 2009 for them, where a lot of their budgets have been frozen or shelved and now they have been given the green light to start drilling again.” One area of the business which provokes particular enthusiasm from Alalawi is their new acquisition, VersaRig. “Every once in a while there comes somebody who comes up with a completely revolutionary idea. This idea of the VersaRig which we are introducing into the market here is very unique business. It was invented some time back by a person from Oklahoma, who had the idea but didn’t have the marketing capability or the ability to take it to the step of commercialism,” he comments. “We were able to bring this idea with this gentleman and bring it to the world.
www.arabianoilandgas.com
Clients were invited to the open day at AlMansoori’s principal oilfield service yard in Mussafah, Abu Dhabi. AlMansoori has had considerable We have the exclusive rights for the whole Eastern hemisphere and it is very growth in a number of regions, but there revolutionary and is a complete new con- is one country where the firm is still strugcept of how people service the oil wells. gling to make a breakthrough. “Iraq has unique circumstances that don’t encourage local companies like ourselves to be major players, as it stands today,” says Alalawi. He adds that the multinational oil companies in Iraq have taken on the big oilfields in the south with very stringent conditions, meaning they must produce oil and generate cash flow very quickly. This, he claims does not make for good Nabil Alalawi, CEO, AlMansoori. conditions for his firm. “It all boils down to the comfort zone – they are comfortThe reception from clients is – how did we able with the companies they have been not know about this earlier? It is such a working with in the west, like Weathersimple idea, how come nobody has even ford, Halliburton, Schlumberger, like talked about this? Always the revolution- Baker Hughes. They have been working ary ideas are the simple ideas,” he adds. with these companies in the North Sea,
“We are very buoyant, 2010 is a year where a lot of our clients have been able to put their act back together after a bad 2009”
April 2010 Oil&Gas Middle East
67
Introducing the boom truck crane concept combining American and German technology
DARWISH BIN AHMED & SONS PO Box 28883 Abu Dhabi United Arab Emirates Tel: +971 2 5584800 Fax: +971 2 5582242 e-mail: trucks@dbasons.com web: www.dbasons.com
DARWISH BIN AHMED & SONS PO Box 1728 Al Ain United Arab Emirates Tel: +971 3 721 3256 Fax: +971 3 721 2984 e-mail: dbaalain@dbasons.com web: www.dbasons.com
UNITED MOTORS & HEAVY EQUIPMENT CO. LLC PO Box 22804 Dubai United Arab Emirates Tel: +971 4 282 9080 Fax: +971 4 282 7740 e-mail: trucks@utdmotors.com web: www.utdmotors.com
CEO INTERVIEW
The oilfield service and specialised engineering outfits of AlMansoori joined forces to host the guests.
www.arabianoilandgas.com
around the world and in the US. AlMansoori for them is a question mark, can they perform?” Alalawi goes on to say that the situation in Iraq will improve with time, and at this point opportunities will become available to his group. More pressing a matter for Alalawi is the situation between Iran and the US. “If super sanctions happen and Iran is put in a corner where it has to react and something happens and it becomes physical, it could be very damaging to the oil and gas business,” he warns. “Or it could go the other way, where the super sanction happens and most of the European companies walk out of Iran, which would put the local companies in a very good business position,” he adds. For now though AlMansoori will concentrate on coping with its huge growth spurt in the past couple of years. Alalawi explains: “We have more than seven or eight business units and every one of them has a general manager and they are all profit centres. They have to expand based on their capabilities, market requirements and financial capabilities. Some are growing double their size, some 35%, some 40%, for each business, the circumstances dictate how fast they can grow.” As Alalawi rejoins his employees at the open day, it is clear the circumstances for this particular family, are pretty much perfect.
April 2010 Oil&Gas Middle East
69
HYDRAULIC TOOLS
The ToughLift jacking system.
Use the Force International hydraulic tools specialist Hi-Force has launched 250 new products in its hotly anticipated 2010 catalogue he 2010 Hi-Force hydraulic tools catalogue has recently been launched into the Middle East and international markets.
T
The new catalogue is by far the biggest and most comprehensive offering from Hi-Force, the leading UK-based manufacturer of high pressure hydraulic tools and equipment. Packed full of product and technical information, the new catalogue has 64 additional pages and over 250 new products, compared to the 2007 edition further testament to the tremendous growth that is taking place at Hi-Force worldwide, according to Kevin Brown, Group Managing Director. “The catalogue now showcases over 1 700 products,
70
Oil&Gas Middle East April 2010
with many new additions to the range including pull cylinders, new generation split flow pumps, machine lift jacks, low height hollow bore jacks, spring assisted return tensioners, hydraulic tensioner nuts, hydrotest pumps with onboard chart recorder, and battery operated crimping tools, large capacity nut splitters and the ToughLift jacking system,” says Brown. Hi-Force manufactures the vast majority of its hydraulic tools in-house, and has set a target of over 70% of machined components by the end of 2010, ensuring the company delivers high quality products, on time and at a competitive price. Brown adds that the company is forging
ahead with a massive on-going investment program across the globe. “The tremendous growth achieved by Hi-Force, over the past three years, has necessitated an urgent need for increased investment in our in-house manufacturing capability. In the past two years we have invested in several new state-of-the-art Mori Seiki CNC machines to cope with our increasing product manufacturing demands.” The company has invested in a brand new 9 axis CNC machining centre, costing over US$750 000 and weighing 30 tonnes, which arrives at its new premises in July this year. “There is little doubt that Hi-Force is gearing up for continued healthy growth in the
www.arabianoilandgas.com
HYDRAULIC TOOLS
A two speed hand pump unit.
A TWH-N hydraulic torque wrench.
The 2010 catalogue is available now.
www.arabianoilandgas.com
global hydraulic tools market. Our products are manufactured to the highest quality, using the best machinery available to ensure that all Hi-Force products meet the most stringent quality requirements possible, whilst also maintaining a competitive edge over brands manufactured in lower cost countries.” End users and authorised distributors of Hi-Force have been eagerly awaiting the new catalogue and particularly the new products. One product generating particular interest is the new ToughLift jacking system that enables heavy mobile equipment users, in the mining and construction industry and locomotive operators in the railway industry, to speed up maintenance and breakdown repairs, requiring urgent attention, using this state of the art jacking system. With continued investment in
new product design and cutting edge technology, Hi-Force products remain at the leading edge of the hydraulic tool industry. Also included are improved SolidWorks, product dimensional drawings and samples of some of their new training animations.
INVESTMENT “As the investment within Hi-Force continues to grow, so has our marketing department and its workload. We believe we have created a first class catalogue, based around our customers’ needs, that is packed full of new products and technical information,” says Mar Noordhoek, Hi-Force global sales and marketing director. “The 2010 Hi-Force catalogue has been a major project for the marketing department, over the past six months and we have already had several requests
OUT NOW The 2010 catalogue is available to download in English from www.hi-force.com with other language options to be added later this year.
from overseas distributors, for foreign language versions, which we hope to complete and distribute within this year,” concludes Noordhoek.
April 2010 Oil&Gas Middle East
71
SOGAT 2010
Delegates were treated to outstanding panel sessions and lively debate led by conference chairman Kamal Morsi and event director Dr. Nick Coles.
“The owners are very happy with the current pricing and we expect announcements and awards to follow very soon” Saif Al Ghafli, ADGDCo CEO from 800 MMSCFD to 1300 MMSCFD – which necessitated the careful consideration of how the 12% sour gas was to be processed to feed the Jubail Industrial complex,” he added. Alami said that a Jacobs and Shell proposal to adopt Sulfinol-M technology for gas sweetening and enrichment was selected. Rajesh Shetty of Qatargas Operating Company Limited delivered an excellent presentation on the lessons learned during commissioning and start up in Qatargas trains 4 and 5. Last year Qatargas started up the two largest LNG trains in the world, each with a capacity
74
Oil&Gas Middle East April 2010
of 7.8 million tonnes per annum. These trains include integrated gas treatment facilities consisting of acid gas removal (AGR) unit using BASF aMDEA for removal of H2S and CO2, mole sieves with a Selexol regeneration unit for removal of mercaptans, a Flexsorb acid gas enrichment unit and a sulphur recovery unit with tail gas treating. “All treating units have demonstrated operation at designed capacity and a successful performance test has been executed. Commissioning and statt up of Train 5 was significantly enhanced by the incorporation of lessons learnt from Train 4,”
explained Shetty. The critical, and much-talked about issue of sulphur handling relating to the Shah sour gas field was addressed in part by Abdalla Hamad Almuhairi and Ken Lunsford of Abu Dhabi Gas Development Co and Nick Lenstra of Worley Parsons. Historically, buried liquid sulphur pipelines presented engineering and operational challenges due to the high deferential temperature between the pipeline and surrounding soil, and the unique characteristics of sulphur. “A fundamental problem with buried, hot pipelines is the elevated operating temperature. The transport of liquid sulphur must be
done at temperatures between approximately 115º C and 152º C to accommodate the unique characteristics of elemental sulphur,” explained Lenstra. On the sidelines of the conference Saif
Ismail Alami, Saudi Aramco
www.arabianoilandgas.com ww www w ww w w.ar w.ar .aara arab ar aabi bbiiaano annnooilandg iliila lannd la ndg dgaas. dg asss..com .com coom co m
SOGAT 2010
Rajesh Shetty presented a paper on the lessons learned from the start up of the two largest LNG trains in the world for Qatargas.
“Commissioning and start up of Train 5 was significantly enhanced by the incorporation of lessons learnt from Train 4” Rajesh Shetty, Qatargas Al Ghafli told Oil & Gas Middle East that discussions were ongoing between Union Railways and ADNOC, a 60% stakeholder in the Abu Dhabi Gas Development Company, over whether an overland rail option may prove more sensible. “These discussions are happening directly between the two companies, but the original FEED study was carried out for the pipeline option. If a rail solution is selected the granulation plant will be moved to the Shah processing site instead of Ruwais, where it was originally planned to be.” Al Ghafli explained that whilst to date the only EPC award has been the early works
76
Oil&Gas Middle East April 2010
and utilities package (won by Abu Dhabi’s Al Jaber Group), the principal eight EPC packages would be awarded “in the coming weeks”. The project, which was originally slated to cost in the region of $13 billion has been able to take advantage of significant depreciation in project costs. “The owners are very happy with the current pricing and we expect announcements and awards to follow very soon,” he said.
For full SOGAT coverage including exhibitor interviews and image gallery visit www. ArabianOilandGas.com Kamal Morsi chaired the presentations and panel discussions at SOGAT 2010.
www.arabianoilandgas.com
PROJECTS
Ongoing and upcoming projects Information is supplied by Ventures Middle East. Tel: +971 2 622 2455. URL: www.ventures-uk.com BAHRAIN Project Title
Client
Consultant
EPC Contractor
Budget ($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
Study
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
Oil & Gas Pipelines at Mina Al Ahmadi
KOC
Not Appointed
2000
EPC Bid
Crude Oil Transit Line
KOC
Not Appointed
280
EPC Bid
Booster Station 171
KOC
Not Appointed
800
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
KUWAIT
Crude Oil Flow Pipeline
KOC
Combined Group Contracting Company
135
Execution
Pilot Water Injection Plant at Dharif Marrat Oil Field in West Kuwait
KOC
Not Appointed
14
EPC Bid
Effluent Water Injection Phase I & Sea Water Injection Phase II
KOC
Not Appointed
750
EPC Bid
Pipeline between GC-7 and manifold TB-1 at Burgan Field
KOC
Heavy Engineering Industries & Shipbuilding Company (Heisco)
20
Execution
Crude Oil Flow Pipelines in North Kuwait
KOC
Not Appointed
110
EPC Bid
Sulphur Handling Facilities at Mina al-Ahmadi
KNPC
Not Appointed
132
FEED
Crude Oil Export Pipelines at Gathering Center 16 and Water Flowlines at Minagish
KOC
Combined Group Contracting Company
52
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
KOC Facilities at Kuwait's Key Oil Fields
KOC
National Petroleum Services Company (Napesco)/ Halliburton
206
Execution
Maintenance & Repair of Pipelines
KOC
O & G General Engineering & Contracting
72
Execution
Mechanical Maintenance Works for Shuaiba Refinery
KNPC
Not Appointed
150
EPC Bid
Mina al Ahmadi - Doha West Pipeline
Ministry of Energy (Electricity & Water)
Penspen International (UK)
Heavy Engineering Industries & Shipbuilding Company (Heisco)
128
Execution
Gas Booster Station 160
KOC
AMEC, Kuwait
Snamprogetti Kuwait
649
Execution
Pipeline from Shuaiba North to Mina Abdulla
Ministry of Energy
Not Appointed
55
FEED
Jurassic Early Production Facility (EPF)
KOC
Not Appointed
1500
EPC Bid
Booster Station 132
KOC
SK Engineering & Construction, Kuwait
724
Execution
Fourth Gas and Condensate Train at Mina al-Ahmadi Refinery
KNPC
Not Appointed
679
EPC Bid
Upgrade of South Ghudair Gathering Centre
KOC / Saudi Arabia Texaco (SAT)
Arabi Enertech
27
Execution
Maintenance of Oil Production Facilities in West Kuwait
KOC
Not Appointed
150
EPC Bid
Fifth Gas Fractionation Train at Mina al-Ahmadi
KNPC
Not Appointed
888
EPC Bid
Gathering Center 14 in the South East
KOC
Almeer Technical Services
45
Execution
AMEC, Kuwait
Thyssenkrupp (Germany)
Fluor Corporation
OMAN Project Title
Client
EPC Contractor
Budget ($M)
Status
Fuel tank at Mina Al Fahal Refinery
ORPC
Daewoo Engineering & Construction,Oman
17
Execution
Propane Recovery Unit at Mina Al-Fahal Refinery
ORPC
Not Appointed
50
EPC Bid
Upgradation of Refinery at Mina al-Fahl
ORPC
Not Appointed
60
EPC Bid
www.arabianoilandgas.com
Consultant
April 2010 Oil&Gas Middle East
77
PROJECTS Project Title
Client
Sea Water Supply at Sohar Refinery
ORPC
Duqm Refinery & Petrochemical Complex
ORPC
Oil Exploration in Blocks 3 & 4
CCED /Tethys Oil (Oman) Ltd
Gas Compressor Station at the Nimr field
Oman Gas Company
Octal Petrochemical Project at Salalah Free Zone
Octal Holding
Consultant
Not appointed
EPC Contractor
Budget ($M)
Status
Not Appointed
20
EPC Bid
Not Appointed
7000
Study
CCED
100
Execution
Tecnicas Reunidas / Worley Parsons
Galfar Engineering & Contracting, Oman
36
Execution
Uhde
National Construction & Trading Co. LLC (NCTC)
700
Execution
Kauther Gas Compression Project
PDO
Petrofac International, Oman
350
Execution
PTA Plant at Sohar Port
Oman Oil Company (OCC)/ JBF Industries Ltd.
Not Appointed
680
Study
Crude Oil Stabilisation Unit at Mukhaizna
Occidental Mukhaizna
Not Appointed
100
EPC Bid
Depletion-Compression Project at Saih Nihayda
Petroleum Development Oman (PDO)
GS Engineering & Construction, Dubai
350
Execution
Storage Tanks and Terminals at Sohar
Oiltanking Odfjell Terminals & Company
Oiltanking (India) / Larsen & Toubro
80
Execution
Marmul Central Development - Phase 3
Petroleum Development Oman (PDO)
Gulf Petrochemicals Services, Oman
61
Execution
Qarn Alam EOR Project - Off-plot Package
PDO
Galfar Engg. & Cont.
139
Execution
Qarn Alam EOR Project - On-plot Package
PDO
MEG WorleyParsons
Dodsal
450
Execution
Methanol Plant in Salalah
Oman Oil Company (OCC) / UK GTL Resources / Mubadala Development Company, Oman / Vitol
Jacobs Engineering
GS Engineering & Construction
910
Execution
Oil & Gas Pipeline and Processing Plant in Musandum
Oman Oil Company (OCC)
Not Appointed
500
EPC Bid
Harweel Cluster Phase - 2
PDO
AMEC
Petrofac International / Galfar Engineering & Contracting
960
Execution
Project Title
Client
Consultant
EPC Contractor
Budget ($M)
Status
Petrochemical Complex at Ras Laffan
QP/Total
Not Appointed
Not Appointed
3000
Concept
Low-Sulphur Condensate Storage Facility at Ras Laffan
Dolphin Energy Limited, Qatar
Qatar Engineering & Construction Company
212
Execution
QATAR
reliability focused engineering
www.aesseal.com
contact: don van rooyen email: donvr@aesseal.co.za tel: +971 4 2669595 / +971 2 6778700 cell: +971 (0) 508120142
78
Oil&Gas Middle East April 2010
dry gas mechanical seals & repair engineered mechanical seal support systems advanced air coolers bearing protection mechanical seals
• • • • •
solutions extending equipment life
www.arabianoilandgas.com
PROJECTS Project Title
Client
Consultant
EPC Contractor
Budget ($M)
Status
Jubail-2 Export Refinery - Pipeline and Offsite Package
Saudi Aramco/Total
Technip
Gulf Consolidated Contractors (GCC)
300
Execution
Yanbu Export Refinery - Crude Unit Package
Saudi Aramco / ConocoPhilips
Kellogg Brown & Root (KBR), Saudi Arabia
Not Appointed
970
EPC Bid
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
Sasref Refinery - Jubail Sulphur Treatment Unit
Saudi Aramco Shell Refinery Company (Sasref)
CBI Lummus in Middle East
JGC Corporation,SaudiArabia
350
Execution
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
Kayan Petrochemicals Complex at Jubail - PP Package
Saudi Basic Industries Corporation (Sabic)/Saudi Kayan Petrochemical Company
Fluor Arabia Ltd., Saudi Arabia
Samsung Saudi Arabia Ltd.
400
Execution
Yanbu Export Refinery-Offsites & Utilities-Package 8
Saudi Aramco/ ConocoPhilips
Kellogg Brown & Root (KBR), Saudi Arabia
Not Appointed
125
EPC Bid
Wasea Bulk Plant
Saudi Aramco
Dar Al Riyadh Architecture & Engineering
Sinopec
250
Execution
Kayan Petrochemicals Complex at Jubail - Amines Package
Saudi Basic Industries Corporation (Sabic) Saudi Kayan Petrochemical Company
Fluor Arabia Ltd., Saudi Arabia
Not Appointed
300
EPC Bid
Dammam 7 - Petrochemicals Complex
Dammam 7 Petrochemicals
Not Appointed
400
FEED
Ethyl Vinyl Acetate Plant
Saudi International petrochemical Company (SIPC)/ Hanwha International Private Ltd.
Not Appointed
800
FEED
Rabigh Refinery Expansion & Petrochemical Complex - Phase 2
Rabigh Refining & Petrochemical Company (Petro-Rabigh)/Sumitomo Corporation
Not Appointed
4000
Study
Polysilicon Plant in Jubail
First Energy Bank/ Cosmos Industrial Investment Corporation/PMD
Not Appointed
1200
Concept
JGC Corporation
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
80
Oil&Gas Middle East April 2010
www.arabianoilandgas.com
PROJECTS Project Title
Client
Consultant
EPC Contractor
Budget ($M)
Status
Jetty Boil-Off Gas Recovery Project
Qatargas
Fluor Corporation, Abu Dhabi
Not Appointed
800
EPC Bid
Block 4 North
Qatar Petroleum/Anadarko
Not Appointed
Wintershall, Germany
150
Execution
Acid Gas Removal Plant 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
Oily Water Effluent Pipeline in Dukhan Field
Qatar Petroleum (QP)
Oryx GTL - Phase 2
QP/Sasol/Chevron
Gas Pipeline Network within Ras Laffan Industrial City
Qatar Petroleum
Mott MacDonald Qatar
Q-Chem 2
Qatar Chemical Company (Q-Chem)
Aker Kvaerner,Qatar
Not Appointed
3000
Concept
Galfar Al Misnad Engineering & Contracting
11
Execution
Not Appointed
1400
Study
Larsen & Toubro, Qatar
117
Execution
Daewoo Engineering & Construction, Qatar
700
Execution
Condensate Refinery at Ras Laffan - Phase 2
Laffan Refinery Company
Not Appointed
800
Study
Pearl GTL Project - Package C4
QP / Royal Dutch/ Shell
Halliburton /JGC Corporation
Chiyoda Corporation / HHI Company
1750
Execution
Barzan North Field Development
ExxonMobil Corporation/Qatar Petroleum (QP)
Chiyoda Corporation/J Ray McDermott
Not Appointed
8000
EPC Bid
Pearl GTL Project - Package C8
QP/Royal Dutch/Shell
JGC Corporation/Halliburton
Veolia/Saipem/Al Jaber
101 - 250
Execution
Plateau Maintenance Project
Qatargas
Technip, Qatar
Chiyoda/Technip
1200
Execution
QVC Expansion Project
QVC
Not Appointed
Not Appointed
31 -100
Study
Oxygen & Nitrogen Production Unit at Ras Laffan
Gasal
Air Liquide Engineering
70
Execution
Nitrogen Pipeline Network at Ras Laffan
Gasal
Black Cat Engineering & Construction
12
Execution
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 - LDPE 3
Qapco
Uhde
Uhde/Tefken
549
Execution
Polyacetal Resins Plant at MIC
National Qatar Industries / LG Chem / Tasnee
Not Appointed
137
FEED
Qafco VI
Qatar Fertilizer Company (Qafco)
Saipem / Hyundai Engineering & Construction Company
610
Execution
TSE Pipeline from STP to Dukhan
Qatar Petroleum (QP)
Petroserv Limited
15
Execution
Pearl GTL Project - Pipelines Package
QP / Royal Dutch / Shell
J Ray McDermott
150
Execution
Al Shaheen Project - Package 13
Maersk Oil Qatar
J Ray McDermott
185
Execution
Two New Glycol Regeneration Trains in Dukhan
Qatar Petroleum
Qatar Kentz
300
Exectution
Al Shaheen Project - Packages 17 & 18
Maersk Oil Qatar
NPCC
600
Execution
Qafco V
Qafco
Saipem/ Hyundai Engineering & Construction Co
3200
Execution
Maintenance on Platforms at Measieed Refinery
Qatar Petroleum (QP)
Not Appointed
50
EPC Bid
Headworks for Muaither RPS and Associated Pipelines
Qatar General Electricity & Water Corporation (Kahramaa)
Al Waha Contracting
109
Execution
Qatar Kentz
100
Execution
Not Appointed
101 - 250
FEED
Receiving & Loading Facility at Ras Laffan
Qatargas
Common Sulphur Project
DEL
JGC Corporation / Halliburton
Worley Parsons
Not Appointed
Washington Group International
Pearl GTL Project - Wellhead Platforms Package
QP/Royal Dutch/Shell
JGC Corporation/Halliburton
J Ray McDermott
300
Execution
Pearl GTL Project - Package C5
QP / Royal Dutch / Shell
JGC Corporation / Halliburton
Toyo Engineering Corp. / Hyundai Engineering & Construction Company
1480
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
Client
Consultant
EPC Contractor
Budget ($M)
Status
SAUDI Project Title Safaniyah Offshore Infrastructure
Saudi Aramco
Not Appointed
1000
EPC Bid
Jubail - 2 Export Refinery - Interconnection between Refinery Units and Plant Utilities
Saudi Aramco / Total
Technip, Saudi Arabia
Technip/ China Technical Consultants Incorporate(CTCI)
700
Execution
Yanbu Export Refinery - Coker Unit Package
Saudi Aramco / ConocoPhilips
Kellogg Brown & Root (KBR), Saudi Arabia
Not Appointed
1200
EPC Bid
Shabab-2 Oil Pipeline Project
Saudi Aramco
Stroytransgaz
200
Execution
Caustic Chlorine / Ethylene Dichloride Factory in Jubail
Arabian Chlor Vinyl Company /Maaden /Sahara Petrochemical Company (Al Waha)
CMAI Consulting Company
Daelim Industrial Company,Saudi Arabia
400
Execution
www.arabianoilandgas.com
April 2010 Oil&Gas Middle East
79
PROJECTS Project Title
Client
Consultant
EPC Contractor
Karan Field Exploration - Platforms Package
Saudi Aramco
Clough-Zuhair Fayez Partnership
J Ray McDermott
500
Execution
Yanbu Export Refinery - Gasoline Unit Package
Saudi Aramco / ConocoPhilips
Kellogg Brown & Root (KBR), Saudi Arabia
Not Appointed
2300
EPC Bid
Kayan Petrochemicals Complex at Jubail - LDPE Package
Saudi Kayan Petrochemical Company / Saudi Basic Industries Corporation (Sabic)
Fluor Arabia Ltd., Saudi Arabia
Daelim Industrial Company,Saudi Arabia
400
Execution
Petrochemical Complex - Ethylene Cracker Package
Saudi Chevron Phillips Petrochemical Company (SCP)/ Saudi Polyolefins Company (SPC)
Parsons Engineering Corp.
JGC Corporation,SaudiArabia
1200
Execution
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
Jazan Economic City Export Refinery
Ministry of Petroleum and Mineral Resources
Not Appointed
12000
Study
Petrochemical Complex - Polymer Package
Saudi Chevron Phillips Petrochemical Company (SCP)/ Saudi Polyolefins Company (SPC)
Daelim Industrial Company/JGC Corporation
5000
Execution
Al Khafji Oil Processing Facilities Expansion
Al Khafji Joint Operations (KJO)
Not Appointed
400
EPC Bid
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
Parsons Engineering Corp.
Budget ($M)
Status
Fertiliser Complex Expansion at Jubail - Urea & Ammonia Plant
Saudi Arabian Fertilizer Company (Safco)
Not Appointed
150
FEED
Dammam Oil Field Development
Saudi Aramco
Not Appointed
1000
Concept
Jubail - 2 Export Refinery - Plant Utilities Package
Saudi Aramco / Total
SK Engineering & Construction
150
Execution
Manifa Oil Field Redevelopment - Onshore Package
Saudi Aramco
Foster Wheeler
JGC Corporation / TR / Snamprogetti
2360
Execution
Kayan Petrochemicals Complex at Jubail - EO/EG Package
Saudi Basic Industries Corporation (Sabic)/ Saudi Kayan Petrochemical Company
Fluor Arabia Ltd., Saudi Arabia
China Technical Consultants Incorporate(CTCI)
500
Execution
Technip
Pipeline from Ras Tanura to Riyadh
Saudi Aramco
Nacap-Suedrohrbau, Saudi Arabia
350
Execution
ASU at Jubail
National Industrial Gas Company (GAS)
Samsung Saudi Arabia Ltd.
300
Execution
Yanbu Export Refinery - Tank Farm - Package 5
Saudi Aramco/ ConocoPhilips
Kellogg Brown & Root (KBR), Saudi Arabia
Not Appointed
900
EPC Bid
Yanbu Export Refinery - Battery Limits and Solids Handling - Package 6
Saudi Aramco / ConocoPhilips
Kellogg Brown & Root (KBR), Saudi Arabia
Kayan Petrochemicals Complex at Jubail - HDPE Package
Sabic / Saudi Kayan Petrochemical Company
Not Appointed
450
EPC Bid
Huanqiu Contracting & Engineering Corporation (HQCEC)
600
Execution
UNITED ARAB EMIRATES Project Title
Client
Consultant
EPC Contractor
Budget ($M)
Status
Replacement of Oil & Water Pipelines
Adma - Opco
Technip / Worley Parsons, Abu Dhabi
Costain
900
Execution
Adnoc Storage Facility in Hamriyah Free Zone
Takreer
Borouge Complex Expansion - Phase 3 - Offsites & Utilities Package
Abu Dhabi Polymers Co. (Borouge)
Tecnimont SpA, Abu Dhabi
Hail Field Development
ADCO / Gasco
Not Appointed
Crude Oil Pipeline Replacement
Zadco
OGD-3/ AGD-2 - Pack 2
GASCO
OGD-3/ AGD-2 - Pack 4
GASCO
Green Diesel Project in Ruwais Umm Shaif Gas Injection Facilities Base Oil Plant in Abu Dhabi
Not Appointed
150
EPC Bid
Not Appointed
500
EPC Bid
Not Appointed
749
Study
Not Appointed
300
EPC Bid
Bechtel
Bechtel
1460
Execution
Bechtel
Snamprogetti
1420
Execution
Takreer
Wood Group Mustang
GS Engineering & Construction
350
Execution
Adma - Opco
WorleyParsons
Hyundai Heavy Industries
1597
Execution
Abu Dhabi Oil Refinery Company (Takreer); Neste Oil (Finland);
Neste Jacobs / Technip
Not Appointed
1000
EPC Bid
Zakum West Gas Processing Facilities Project
Adma - Opco
Technip
Technip / NPCC
300
Execution
Asab Full Field Development
ADCO
Foster Wheeler
Petrofac
1000
Execution
Bab Oil field Development - Phase 2
ADCO
Technip
SK Engineering & Construction Company
805
Execution
Crude Oil Storage Tanks at Umm Al-Nar Refinery
Abu Dhabi Oil Refinery Company (Takreer)
Engineers India Limited (EIL), Abu Dhabi
Al Husam General Contracting
33
Execution
Gas Pipeline from Nitrogen Plant to Habshan Oil Field
Abu Dhabi Gas Industries Company (Gasco)
Dodsal, Abu Dhabi
85
Execution
www.arabianoilandgas.com
April 2010 Oil&Gas Middle East
81
PROJECTS Project Title
Client
Consultant
EPC Contractor
Budget ($M)
Status
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
OAG Network-Pack 3 - Ras Al Qila to Habshan Pipeline
Gasco
Fluor Corporation
CCC
400
Execution
OGD-3/ AGD-2 Pack 3
GASCO
Bechtel
Bechtel
1241
Execution
Borouge Complex Expansion - Phase 2: Ethane Cracker
AUH Polymers Company
Linde
1100
Execution
Development of Qusahwira & Bida Al-Qemzan Fields
ADCO
National Petroleum Construction Company
1800
Execution
Taweelah-Qidfa Gas Pipeline
DEL
Stroytransgaz, Abu Dhabi
418
Execution
Asab Gas Development (AGD) Modifications - Package 1
GASCO
Veco Engineering
Technip
408
Execution
Inter Refineries Pipeline Project at Ruwais - 2nd Stage - Pipeline
Abu Dhabi Oil Refinery Company (Takreer)
Technip, Abu Dhabi
Not Appointed
700
FEED
Borouge Complex Expansion - Phase 3 - LDPE Plant
Abu Dhabi Polymers Co. (Borouge)
Tecnimont SpA, Abu Dhabi
Not Appointed
500
EPC Bid
Washington Group International / Veco Engineering
Interconnecting Pipelines in Fujairah Oil Terminal 2
Port of Fujairah
Nico International
100
Execution
Sour Gas Development - Sulphur Pipeline
Abu Dhabi National Oil Company (ADNOC); ConocoPhilips;
Fluor Corporation, Abu Dhabi
Not Appointed
125
FEED
Expansion of Ruwais Refinery - Package 3
Abu Dhabi Oil Refinery Company (Takreer)
Foster Wheeler, Abu Dhabi
Samsung Engineering
2700
Execution
Demothballing Project
Abu Dhabi Marine Operating Company (Adma-Opco)
Technip, Abu Dhabi
Not Appointed
400
EPC Bid
Borouge Complex Expansion - Third Polyolefin Plastics Project
Abu Dhabi Polymers Co. (Borouge)
Tecnimont SpA / Jacobs Engineering
Not Appointed
3000
EPC Bid
Upper Zakum - Fujairah Oil Pipeline
IPIC/Conoco Phillips
WorleyParsons
China Petroleum Construction Corporation
3290
Execution
Expansion of Ruwais Refinery - Package 4
Abu Dhabi Oil Refinery Company (Takreer)
Foster Wheeler, Abu Dhabi
Daewoo Engineering & Construction Ltd.
1200
Execution
Sour Gas Development - Gas Processing Plant
Abu Dhabi National Oil Company (ADNOC); ConocoPhilips;
Fluor Corporation, Abu Dhabi
Not Appointed
800
EPC Bid
Sour Gas Development - Sulphur Recovery Unit
Abu Dhabi National Oil Company (ADNOC); ConocoPhilips;
Fluor Corporation, Abu Dhabi
Not Appointed
800
EPC Bid
Integrity Enhancement of Fire Protection System at Umm Al Nar Refinery
Takreer
Not Appointed
Not Appointed
15
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 - Phase 3
Takreer
Washington Group Int'l
Dodsal
272
Execution
Sour Gas Development - Offsites & Utilities
Abu Dhabi National Oil Company (ADNOC); ConocoPhilips;
Fluor Corporation, Abu Dhabi
Not Appointed
1000
EPC Bid
Sour Gas Development - Sulphur Handling Terminal
Abu Dhabi National Oil Company (ADNOC); ConocoPhilips;
Fluor Corporation, Abu Dhabi
Not Appointed
450
EPC Bid
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
50
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
12
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
Refinery in Fujairah
IPIC
Foster Wheeler
Not Appointed
5000
Study
82
Oil&Gas Middle East April 2010
www.arabianoilandgas.com
RIG STATISTICS
RIG STATISTICS
Rigzone report on current rig contracts by operator
Information is supplied by RigZone.com
RED SEA Manager
Rig Type
Current Status
Current Region
Rig Name
Atwood Oceanics
Jackup
Drilling
MidEast - Red Sea
Atwood Aurora
Diamond Offshore
Jackup
Drilling
MidEast - Red Sea
Ocean Heritage
Diamond Offshore
Jackup
Drilling
MidEast - Red Sea
Ocean Spur
Egyptian Drilling
Platform Rig
Drilling
MidEast - Red Sea
EDC 34
Egyptian Drilling
Jackup
Drilling
MidEast - Red Sea
Kamose
Egyptian Drilling
Jackup
Ready Stacked
MidEast - Red Sea
Senusret
Egyptian Drilling
Jackup
Ready Stacked
MidEast - Red Sea
Zoser
Egyptian Offshore Drilling Company
Jackup
Enroute
MidEast - Red Sea
El Qaher I
KS Energy Services Ltd.
Jackup
Ready Stacked
MidEast - Red Sea
Bennevis
Maersk Drilling
Jackup
Drilling
MidEast - Red Sea
Maersk Endurer
Rowan
Jackup
Drilling
MidEast - Red Sea
JP Bussell
Saipem
Jackup
Ready Stacked
MidEast - Red Sea
Perro Negro 4
Seadrill Ltd
Jackup
Drilling
MidEast - Red Sea
West Prospero
Transocean Ltd.
Jackup
Drilling
MidEast - Red Sea
GSF Adriatic X
Transocean Ltd.
Jackup
Drilling
MidEast - Red Sea
GSF Key Singapore
Transocean Ltd.
Jackup
Cold Stacked
MidEast - Red Sea
GSF Rig 103
Transocean Ltd.
Jackup
Drilling
MidEast - Red Sea
GSF Rig 105
Transocean Ltd.
Jackup
Drilling
MidEast - Red Sea
GSF Rig 141
Transocean Ltd.
Jackup
Cold Stacked
MidEast - Red Sea
Interocean III
Transocean Ltd.
Jackup
Drilling
MidEast - Red Sea
Transocean Comet
Transocean Ltd.
Jackup
Cold Stacked
MidEast - Red Sea
Transocean Mercury
Manager
Rig Type
Current Status
Current Region
Rig Name
Aban Offshore
Jackup
Drilling
MidEast - Persian Gulf
Aban VI
Aban Offshore
Jackup
Ready Stacked
MidEast - Persian Gulf
Aban VII
PERSIAN GULF
Aban Offshore
Jackup
Drilling
MidEast - Persian Gulf
Aban VIII
Aban Offshore
Jackup
Drilling
MidEast - Persian Gulf
Deep Driller 2
Aban Offshore
Jackup
Drilling
MidEast - Persian Gulf
Deep Driller 4
Aban Offshore
Jackup
Drilling
MidEast - Persian Gulf
Deep Driller 5
Aban Offshore
Jackup
Ready Stacked
MidEast - Persian Gulf
Deep Driller 6
Arabian Drilling
Jackup
Drilling
MidEast - Persian Gulf
Arabdrill 17
Arabian Drilling
Jackup
Ready Stacked
MidEast - Persian Gulf
Arabdrill 22
Arabian Drilling
Jackup
Drilling
MidEast - Persian Gulf
Arabdrill 30
Arabian Drilling
Jackup
Drilling
MidEast - Persian Gulf
Arabdrill 8
BassDrill Ltd.
Tender
Ready Stacked
MidEast - Persian Gulf
BassDrill Alpha
China Oilfield Services Ltd.
Jackup
Drilling
MidEast - Persian Gulf
COSLPower
China Oilfield Services Ltd.
Jackup
Drilling
MidEast - Persian Gulf
COSLStrike
Delba Perforadora Internacional S.A.
Semisub
Under Construction
MidEast - Persian Gulf
Delba III
Delba Perforadora Internacional S.A.
Semisub
Under Construction
MidEast - Persian Gulf
Delba IV
ENSCO
Jackup
Drilling
MidEast - Persian Gulf
ENSCO 54
84
Oil&Gas Middle East April 2010
www.arabianbusiness.com
RIG STATISTICS
RIG STATISTICS
Manager
Rig Type
Current Status
Current Region
Rig Name
ENSCO
Jackup
Drilling
MidEast - Persian Gulf
ENSCO 76
ENSCO
Jackup
Cold Stacked
MidEast - Persian Gulf
ENSCO 84
ENSCO
Jackup
Drilling
MidEast - Persian Gulf
ENSCO 88
ENSCO
Jackup
Drilling
MidEast - Persian Gulf
ENSCO 94
ENSCO
Jackup
Drilling
MidEast - Persian Gulf
ENSCO 95
ENSCO
Jackup
Accommodation
MidEast - Persian Gulf
ENSCO 96
ENSCO
Jackup
Ready Stacked
MidEast - Persian Gulf
ENSCO 97
Foresight Group
Jackup
Drilling
MidEast - Persian Gulf
Foresight Driller 5
Foresight Group
Jackup
Cold Stacked
MidEast - Persian Gulf
Foresight Driller VII Global Pearl
Global Petro Tech
Jackup
Cold Stacked
MidEast - Persian Gulf
Great Offshore
Jackup
Ready Stacked
MidEast - Persian Gulf
Amarnath
GSP
Jackup
Drilling
MidEast - Persian Gulf
GSP Atlas
GSP
Jackup
Inspection
MidEast - Persian Gulf
GSP Orizont
Gulf Drilling International
Jackup
Drilling
MidEast - Persian Gulf
Al Doha
Gulf Drilling International
Jackup
Drilling
MidEast - Persian Gulf
Al Khor
Gulf Drilling International
Jackup
Drilling
MidEast - Persian Gulf
Al Zubarah
Gulf Drilling International
Jackup
Drilling
MidEast - Persian Gulf
GULF-2 (Al-Rayyan)
Gulf Drilling International
Jackup
Drilling
MidEast - Persian Gulf
GULF-3 (Al-Wajba)
Hercules Offshore
Jackup
Ready Stacked
MidEast - Persian Gulf
Hercules 170
Hercules Offshore
Jackup
Drilling
MidEast - Persian Gulf
Hercules 261
Hercules Offshore
Jackup
Drilling
MidEast - Persian Gulf
Hercules 262
Japan Drilling
Jackup
Drilling
MidEast - Persian Gulf
Sagadril 1
Japan Drilling
Jackup
Drilling
MidEast - Persian Gulf
Sagadril 2
KS Energy Services Ltd.
Jackup
Ready Stacked
MidEast - Persian Gulf
KS Endeavor
Maersk Drilling
Jackup
Drilling
MidEast - Persian Gulf
Maersk Resilient
MENAdrill
Jackup
Under Construction
MidEast - Persian Gulf
MENAdrill Jackup TBN 1
MENAdrill
Jackup
Under Construction
MidEast - Persian Gulf
MENAdrill Jackup TBN 2
Mosvold Middle East Jackup
Jackup
Under Construction
MidEast - Persian Gulf
MEJU Jackup TBN 1
Mosvold Middle East Jackup
Jackup
Under Construction
MidEast - Persian Gulf
MEJU Jackup TBN 2
Nabors Offshore
Jackup
Drilling
MidEast - Persian Gulf
Nabors 240
Nabors Offshore
Jackup
Workover
MidEast - Persian Gulf
Nabors 655
Nabors Offshore
Jackup
Drilling
MidEast - Persian Gulf
Nabors 656
Nabors Offshore
Jackup
Drilling
MidEast - Persian Gulf
Nabors 657
Nabors Offshore
Jackup
Drilling
MidEast - Persian Gulf
Nabors 660
Nabors Offshore
Jackup
Ready Stacked
MidEast - Persian Gulf
Nabors 867
National Drilling
Jackup
ModiďŹ cation
MidEast - Persian Gulf
Al Bzoom
National Drilling
Jackup
Drilling
MidEast - Persian Gulf
Al Ghallan
National Drilling
Jackup
Drilling
MidEast - Persian Gulf
Al Hail
National Drilling
Jackup
Drilling
MidEast - Persian Gulf
Al Ittihad
National Drilling
Jackup
Drilling
MidEast - Persian Gulf
Al Yasat
National Drilling
Jackup
Drilling
MidEast - Persian Gulf
Beynouna
National Drilling
Jackup
Drilling
MidEast - Persian Gulf
Brakah
National Drilling
Jackup
Drilling
MidEast - Persian Gulf
Delma
National Drilling
Jackup
Drilling
MidEast - Persian Gulf
Diyina
National Drilling
Jackup
Drilling
MidEast - Persian Gulf
Junana
National Drilling
Jackup
Drilling
MidEast - Persian Gulf
Yemilah
Navymar Shipping Company
Jackup
Drilling
MidEast - Persian Gulf
Oriental 1
NIDC
Jackup
Drilling
MidEast - Persian Gulf
Alborz
NIDC
Jackup
Drilling
MidEast - Persian Gulf
Alvand
www.arabianbusiness.com
April 2010 Oil&Gas Middle East
85
Official Show Daily Publisher
THE 3RD SAUDI ARABIA INTERNATIONAL OIL & GAS EXHIBITION & CONFERENCE 10–12 OCTOBER 2010
Join the exhibitors of the largest oil & gas event in Saudi Arabia WWW.SAOGE.ORG
DAMMAM, KINGDOM OF SAUDI ARABIA
RIG STATISTICS
Manager
Rig Type
Current Status
Current Region
Rig Name
NIDC
Jackup
Modification
MidEast - Persian Gulf
Shahid Modarress
NIDC
Jackup
Drilling
MidEast - Persian Gulf
Shahid Rajaiee
Noble Drilling
Jackup
Ready Stacked
MidEast - Persian Gulf
Noble Cees van Diemen
Noble Drilling
Jackup
Ready Stacked
MidEast - Persian Gulf
Noble Charles Copeland
Noble Drilling
Jackup
Accommodation
MidEast - Persian Gulf
Noble Chuck Syring
Noble Drilling
Jackup
Modification
MidEast - Persian Gulf
Noble David Tinsley
Noble Drilling
Jackup
Drilling
MidEast - Persian Gulf
Noble Dhabi II
Noble Drilling
Jackup
Ready Stacked
MidEast - Persian Gulf
Noble Dick Favor
Noble Drilling
Jackup
Accommodation
MidEast - Persian Gulf
Noble Gene House
Noble Drilling
Jackup
Accommodation
MidEast - Persian Gulf
Noble Gus Androes
Noble Drilling
Jackup
Drilling
MidEast - Persian Gulf
Noble Harvey Duhaney
Noble Drilling
Jackup
Drilling
MidEast - Persian Gulf
Noble Jimmy Puckett
Noble Drilling
Jackup
Drilling
MidEast - Persian Gulf
Noble Kenneth Delaney
Noble Drilling
Jackup
Drilling
MidEast - Persian Gulf
Noble Mark Burns
Noble Drilling
Jackup
Drilling
MidEast - Persian Gulf
Noble Roger Lewis
Noble Drilling
Jackup
Ready Stacked
MidEast - Persian Gulf
Noble Roy Rhodes
Odebrecht
Semisub
Under Construction
MidEast - Persian Gulf
Norbe VI
Pride International
Jackup
Modification
MidEast - Persian Gulf
Pride Montana
Pride International
Jackup
Drilling
MidEast - Persian Gulf
Pride North Dakota
Pride International
Jackup
Inspection
MidEast - Persian Gulf
Pride Pennsylvania
Pride International
Semisub
Modification
MidEast - Persian Gulf
Pride Venezuela
Riginvest GP
Jackup
Under Construction
MidEast - Persian Gulf
Riginvest Jackup TBN 1
Rowan
Jackup
Modification
MidEast - Persian Gulf
Arch Rowan
Rowan
Jackup
Drilling
MidEast - Persian Gulf
Bob Keller
Rowan
Jackup
Modification
MidEast - Persian Gulf
Charles Rowan
Rowan
Jackup
Drilling
MidEast - Persian Gulf
Gilbert Rowe
Rowan
Jackup
Drilling
MidEast - Persian Gulf
Hank Boswell
Rowan
Jackup
Modification
MidEast - Persian Gulf
Rowan California
Rowan
Jackup
Modification
MidEast - Persian Gulf
Rowan Middletown
Rowan
Jackup
Drilling
MidEast - Persian Gulf
Rowan Paris
Rowan
Jackup
Drilling
MidEast - Persian Gulf
Scooter Yeargain
Saipem
Jackup
Drilling
MidEast - Persian Gulf
Perro Negro 2
Saipem
Jackup
Drilling
MidEast - Persian Gulf
Perro Negro 3
Saipem
Jackup
Workover
MidEast - Persian Gulf
Perro Negro 5
Saipem
Jackup
Drilling
MidEast - Persian Gulf
Perro Negro 7
Saudi Aramco (NOC)
Jackup
Drilling
MidEast - Persian Gulf
SAR-201
Scorpion Offshore
Jackup
Drilling
MidEast - Persian Gulf
Offshore Freedom
Scorpion Offshore
Jackup
Drilling
MidEast - Persian Gulf
Offshore Intrepid
Scorpion Offshore
Jackup
Under Construction
MidEast - Persian Gulf
Offshore Mischief
Thule Drilling ASA
Jackup
Under Construction
MidEast - Persian Gulf
Thule Energy
Thule Drilling ASA
Jackup
Under Construction
MidEast - Persian Gulf
Thule Force
Thule Drilling ASA
Jackup
Modification
MidEast - Persian Gulf
Thule Power
Transocean Ltd.
Jackup
Drilling
MidEast - Persian Gulf
GSF High Island II
Transocean Ltd.
Jackup
Drilling
MidEast - Persian Gulf
GSF High Island IV
Transocean Ltd.
Jackup
Modification
MidEast - Persian Gulf
GSF Key Hawaii
Transocean Ltd.
Jackup
Drilling
MidEast - Persian Gulf
GSF Main Pass I
Transocean Ltd.
Jackup
Drilling
MidEast - Persian Gulf
GSF Main Pass IV
Transocean Ltd.
Jackup
Cold Stacked
MidEast - Persian Gulf
GSF Rig 127
www.arabianbusiness.com
April 2010 Oil&Gas Middle East
87
BIG PICTURE
Sail Away
J Ray McDermott in Dubai saw off the Pearl GTL topsides destined for Qatar’s North Field in March
The topsides left J Ray’s Dubai yard in Jebel Ali last month.
T
he first of two offshore structures left the J Ray McDermott fabrication yard in Dubai, bound for Qatar, where it will produce natural gas for the Pearl Gas to Liquids project. The Pearl 1 topside was built over 20 months by J Ray McDermott at its yard in Jebel Ali. It was transported to Qatar by barge. “The J Ray McDermott team are to be congratulated for completing the construction of the Pearl 1 topside safely and efficiently. I am glad that the Pearl 1 topside is now on its way to Qatar, where it will serve for decades producing natural gas,” Andy Brown, Shell’s executive vice president and managing director of the Pearl GTL project, said. The structure has a lift weight of 1840 tonnes and once it reaches its destination,
88
Oil&Gas Middle East April 2010
will be lifted on top of a platform jacket which is already fixed to the seabed over the North Field in a water depth of about 36 metres. The topside has five decks of production, control and testing
“It will serve for decades producing natural gas” Andy Brown, Shell
equipment including 90km of control and power cables within it. The structure will be connected to 11 wells drilled into the natural gas reservoir deep below the seabed. Processing of the natural gas will be conducted onshore.
Andy Brown is managing director of the Pearl Project in Qatar.
www.arabianoilandgas.com
Š 2010 Schlumberger. Company, product, and service names are the properties of their respective owners. 10-IS-0043
LV JI DG RJPH LQGG
Innovate. For the Long Run. The 2010 SIS Global Forum is a unique opportunity to gain insights from key industry leaders, share experiences with your peers, and hear about the latest solutions from SIS. The Forum offers executive and technical sessions that discuss strategies to help you gain competitive advantage and extract maximum value from our technology. Register today. May 18–20, 2010, Hotel Novotel West London.
www.slb.com/sisforum2010
$0