NEWS, DATA AND ANALYSIS FOR THE MIDDLE EAST’S ENERGY PROFESSIONALS An ITP Business Publication
August 2009 • Vol. 5 Issue 08
CABLE BUYERS GUIDE Industry insiders reveal the key to a successful cable purchase
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Mohamed Meziane, President and CEO of Sonatrach
New launch oilfield service company in KSA
Unlocking North Africa’s richest hydrocarbon resource base
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CONTENTS
I’ve got the power of Petrel 2009.
Efficient modeling of complex reservoirs.
39 15 NEWS ANALYSIS
33 ASK THE EXPERT
56 FACE TO FACE
China’s economy has continued it’s sole onward march, consuming more monthly like for like oil in 2009 than in 2008. But where is the ‘recovery’ heading?
Bilal Abdallah of Honeywell Process Solutions answers the burning questions surrounding asset management strategies.
16 OPEC OUTLOOK 2030
35 NEW KID IN TOWN
Kurt Glaubitz, upstream relations team leader at Chevron explains how the US oil giant is hoping to boost production in the Saudi - Kuwaiti partitioned neutral zone.
OPEC headquarters has released its World Oil Outlook 2009 report, extending projections to 2030. Will the world be a vastly different place? We think not.
Miles Walker, CEO at QMENA, explains why now is the time to launch a new oilfield service company in Saudi Arabia.
18 COVER STORY
39 OFFSHORE LNG FOCUS
Africa’s biggest company and Algeria’s lion, Sonatrach is on course to spend $65 billion in five years.
DNV’s Conn Fagan explains how the latest generation of FSRUs and FPSOs will be classed.
26 BUYER’S GUIDE
52 TENDER TRACKER
Indespensible checklist for all cable procurement managers.
Top picks and tender listings from ArabianOilandGas.com
REGULARS 2 WEB UPDATE
Broad integration. Deep science. Open architecture. Petrel* 2009 gives me an advantage no other application can offer—the ability to honor the finest reservoir details using parallel processing and advanced geological population methods like multipoint statistics—that really makes the difference in understanding the geometries of complex facies. Petrel 2009. Empowering you to do more. www.slb.com/petrel2009
4 COMMENT 7 REGIONAL NEWS 15 NEWS ANALYSIS 39 O&G MARINE
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47 PROJECTS 52 RIG STATS
August 2009 Oil&Gas Middle East
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WEB HIGHLIGHTS
The online home of:
MOST POPULAR NEWS
ONLINE SPECIAL REPORT Getty Images
1 US ambassador stakes out criticism of Iraq’s oil output
2 Oman looks to award US$7bn woth of oilfield service deals
3 Chevron shuts Kuwait office due to lack of work
4 Samsung awarded $300m ASU contract by SABIC
5 BP may hand control of Rumaila to CNPC
EDITOR’S CHOICE Getty Images
10 days that shook the oil world ArabianOilandGas.com brings you the top ten oil industry events that shook the world. “The events are ranked chronologically, not in order of importance, and include incidents that had widespread political repercussions rather than just being the largest or first,” says Online Editor Kevin Baxter. “The list prompts some interesting questions, such as: Would OPEC have ever been founded if President Eisenhower had not placed a tax on Middle East oil imports? What would the early 90s oil markets have looked like if Iraq had not invaded Kuwait? We’ll never know.”
SPECIAL REPORT Wolfram Lacher, Control Risks analyst on Egypt’s energy sector ArabianOilandGas.com
BREAKING NEWS AND VIEWS FIRST SPOT POLL SHELL SIGNS FLNG DEAL WITH SAMSUNG JV
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Joint venture to design and build floating liquefied natural gas vessel formed between Samsung and Technip.
ARAMCO CEO SAYS CAPACITY AT 12MBPD IN JUNE
ArabianOilandGas.com OMAN INVITES BIDS FOR $500M CONTRACTS
Oil&Gas Middle East August 2009
ArabianOilandGas.com
HOW IS THE MIDDLE EAST UPSTREAM SECTOR FARING IN 2009?
41% Very well thanks 39% Better than most 11% Slow but manageable 09% We’re suffering badly
TAQA PAYS US$404M FOR DUTCH OIL CO. Getty Images
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Oman Oil Company is to invite bids for an EPC contract, worth between $300 million and $500 million, for the construction of an oil and gas pipeline and processing plant. ArabianOilandGas.com
Khalid al-Falih says figure was reached after startup of three fields, namely Nuayyim, Khurais and Shaybah.
Abu Dhabi energy giant continues 2009 spending spree with acquisition of DSM Energie Holdings, which produces around 5000 barrels of oil equivalent gas each day. ArabianOilandGas.com
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COMMENT
Seize the season
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
Summer may be the best time to sit down to business
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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 Senior Group Editor Stuart Matthews Energy Group Editor Daniel Canty Tel: +971 4 4356257 email: daniel.canty@itp.com Contributors Kevin Baxter, Abdelghani Henni, Ventures, Rigzone Advertising Commercial Director Jude Slann Tel: +971 4 4356348 email: judith.slann@itp.com Studio Group Art Editor Daniel Prescott Designer Lucy McMurray Photography
The relaxed settings offered by upcoming corporate events represent an opportunity not be be missed.
Head of Photography Sevag Davidian Chief Photographer Nemanja Seslija Senior Photographers Alan Desiderio, Efraim Evidor, Khatuna Khutsishvili Staff Photographers Khaled Termanini, Thanos Lazopoulos, Leila Cranswick, Jovana Obradovic, Rajesh Raghav, Ruel Pableo, Lyubov Galushko Production & Distribution
ith summer well and truly upon the Gulf, many oil company employees will be looking forward to a well earned break abroad with the family. As temperatures soar, typically the business environment across the Arabian Peninsula cools. Many locals and expatriates alike schedule annual family vacations around the summer season, but this year isn’t quite like any other. After a particularly shaky start to the year, it seems oil and gas support industries have had something of an unseasonable push, culminating in a flurry of major contract announcements in June and July. There have been notable winners, but most crucially it seems that the national oil companies around the Gulf have stuck to their word and ploughed ahead with several landmark projects. Many managers may be wondering when and how this business boost will filter down to demand for their services and products, and whether this year it may be better to hang around and be on hand throughout the summer months. Indeed, I’m sure that many who do choose to take a holiday now will remain on call throughout their ‘break’
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ready to hop on a jet at a moment’s notice if the right client calls. There may be another reason why this August is the one to skip a holiday too. As the Holy Month of Ramadan begins in a couple of weeks, the opportunity to take advantage of the corporately hosted Iftar and Souhoor celebrations may offer a chance to meet and mix with industry contemporaries, and pick over what was a very tough six months at the start of this year. Of course, such occasions aren’t the place to target potential clients with aggressive pitches, but the opportunity to meet and relax with fellow upstream professionals seems like one not to be missed in the current climate. If you’re new to the Gulf, these events are a must-attend, and offer a great experience and invaluable insight into local traditions and customs. If you’re an expat-veteran, perhaps it’s time to embrace these opportunities again. Either way, I hope to see you all there. Ramadan Kareem. Daniel Canty, Group Editor E-mail: daniel.canty@itp.com
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Oil&Gas Middle East August 2009
Group Production Manager Kyle Smith Production Manager Eleanor Zwanepoel Production Coordinator Devaprakash Managing Picture Editor Patrick Littlejohn Image Retoucher Emmalyn Robles Distribution Manager Karima Ashwell Distribution Executive Nada Al Alami Circulation Head of Circulation & Database Gaurav Gulati Marketing Head of Marketing Daniel Fewtrell ITP Digital Director Peter Conmy ITP Group Chairman Andrew Neil Managing Director Robert Serafin Finance Director Toby Jay Spencer-Davies Board of Directors K.M. Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin Circulation Customer Service Tel: +971 4 435 6000 Certain images in this issue are available for purchase. Please contact itpimages@itp.com for further details or visit www.itpimages.com Printed by Color Lines Press Subscribe online at www.itp.com/subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.
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Published by and © 2009 ITP Business Publishing, a member of the ITP Publishing Group Ltd. Registered in the B.V.I. under Company Registration number 1402846.
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LEAD NEWS
LEAD NEWS GASCO’s $9.2bn awards August 09
Abu Dhabi giant pushing ahead with Habshan and Ruwais Integrated Gas Development bu Dhabi Gas Industries (GASCO), has confirmed that it has awarded contracts worth a total of US$9.2 billion for engineering, procurement, construction and commissioning (EPC) works for the Integrated Gas Development (IGD) Project to be built at Habshan and Ruwais. GASCO, a subsidiary of Abu Dhabi National Oil Company (ADNOC) said that the four packages were awarded on a lump sum turn key basis and will cover the construction of a process plant, utilities and offsites, the Ruwais fourth natural gas liquids (NGL) train and Ruwais storage tanks. A joint venture between the contractors JGC of Japan and Tecnimont of Italy were awarded the process plant contract which is worth a total of $4.7 billion. This is the third contract Tecnimont has won in the MENA region this month after securing a $61.5 million contract with Sonatrach in Algeria and a $22 million FEED contract with an ADNOC joint venture Borouge. The $1.7 billion offsites and utilities contract was awarded to Hyundai Engineering and Construction of South Korea. Petrofac continues its run of big contract awards in 2009 by being awarded the
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Petrofac continues its run of big contract awards in 2009 having snared the $2.1 billion Ruwais fourth NGL train contract.
$2.1 billion Ruwais fourth NGL train contract. The UK-based company will carry out the works in a joint venture with South Korean outfit GS Engineering. The Ruwais storage tanks package was US company CBI and is worth a total of $530 million. GASCO said in a statement that the initial phase of the projects will commence from the respective contractors’ home offices before moving to the respective sites at Habshan and Ruwais for construction activities. The completion dates
for all works is the third quarter of 2013. The IGD Project will be built at a greenfield location in Habshan, known as Habshan 5. The site will house four gas processing trains with a combined processing capacity of 2 billion standard cubic feet per day (scfd) of gas. Of this, 1 billion scfd of gas will be transferred to the offshore oil field of Umm Shaif via Das Island and pumped into the field to increase production. The rest of the gas will be sold domestically in the UAE.
GASCO said that the projects are expected create around 30 000 jobs at the peak of construction activities. The IGD Project will also provide a permanent link between offshore and on shore facilities of ADNOC and will provide operational flexibility for oil and gas production.
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trillion cubic feet – UAE’s natural gas reserves – 92% of which is in Abu Dhabi.
August 2009 Oil&Gas Middle East
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REGIONAL NEWS
REGIONAL NEWS Shah Field sulphuric headache Source says superheated pipeline could cause project costs to rise by up to 20% The budget for the Shah sour gas field, the joint venture between Abu Dhabi National Oil Co (ADNOC) and ConocoPhillips, may see its budget rise by US$2 billion due to the construc-
tion of a sulfur gas pipeline. Sources close to the project have been quoted in international media saying that the complex nature of the what will be the world’s largest sulfur Getty Images
The pipes capable of transporting molten sulphur could drive project costs up by 20%.
pipeline will mean that the project cost could rise by 20% to $12 billion. “The Shah project is moving ahead but at a cost of $12 billion instead of $10 billion because of difficulty in finding people to do the sulfur pipeline,” the source is quoted by Zawya Dow Jones as saying. ADNOC announced four tenders for the Shah field at the Gastech 2009 conference held in Abu Dhabi in May. However, the package covering the construction of the 275 kilometre pipeline that will transfer the sulfur to Ruwais where it will be granulated was not released due to a lack of suitable forthcoming bidders.
The technical issues surrounding the contract involve keeping the sulfur in a liquid form. This means that the pipeline will need to keep a constant temperature of between 125155 degrees Celsius, with only minor fluctuations acceptable. The reserves held in the Shah gas field have been cited by Abu Dhabi as an essential requirement to the United Arab Emirates’ domestic energy requirements. The Shah Gas Field is 180 km southwest of Abu Dhabi. The joint venture will involve the construction of a one billion ft3 per day gas processing plant, new gas and liquid pipelines and the sulfur exporting facility.
BP’s Iraq development contract may yet be vetoed
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Oil&Gas Middle East August 2009
in its authorities, according to existing law, but if parliament finds these contracts or this [bidding] round ... are not beneficial, parliament can prevent the government,” parliament speaker Ayad al-Samarai said in newswire reports. “Parliament can stop the government and its decision would be binding,” he added. The comments come after the controversial live television auction at the end of June
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The massive production contract for the Rumaila oilfield in Iraq that was recently awarded to a BP-led consortium, could still be blocked by the country’s parliament despite reports to the contrary by the Oil Ministry. A senior government official made the claims to news agencies that the agreement could still be vetoed by senior lawmakers in Baghdad. “The government believes that such a subject is included
that resulted in the super giant Rumaila field being awarded to the consortium that is led by BP and includes the China National Offshore Oil Corp (CNPC). Additional complications arose in late July, when the trade union representing workers of Iraq’s state-owned Southern Oil Company (SOC) threatened to prevent exploitation of the Rumaila field. The absence of an oil law in the Iraq is also proving The Naher al-Umran gas refinery, 40 kms problematic for the Oil Ministry. north of Iraq’s southern city of Basra.
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REGIONAL NEWS
Project review in 2013
HIGHLIGHTS
El-Badri says over 110 OPEC upstream projects are going ahead
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Despite market fluctuation in the run up to the US driving season, OPEC secretary general Abdallah El-Badri has said that the overwheliming majority of OPEC upstream projects are going ahead, with a handful postponed, but up for review in 2013. El-Badri noted that an excessively high oil price could hamper the global economic recovery, but the safe level for producers and consumers has not yet been reached. Speaking exclusively to Oil & Gas Middle East the secretary general said: “I always encounter the question of what is the right oil price, but truly I don’t have a price tag. OPEC does not want to see a very high price, but neither a low price, because overall this increases volatility in the market.” With oil futures trading around the US$66 - $70 window during July, El-Badri said that a moderate price range best serves the interests of both consumers and producers, and a sustainable and stable price is his goal. El-Badri declined to be drawn on an exact target figure, but conceeded, “An oil price of up to $80 would not harm world economic recovery or growth, and the range $70 - $80 is a moderate price.”
Secretary General Abdallah El-Badri says the majority of OPEC projects are going ahead.
El-Badri said that lessons should be learned from the volatility experienced in 2008, and that safegaurds should be put in place. “We cannot eliminate speculation and we cannot eliminate hedging, these are fact of the market, but guidelines and a standard must be put in place so that excessive speculation and hedging activity does not negatively impact the oil market.” With demand projections for the second half of 2009 still well below production capacity, ElBadri said that OPEC member state investment is ploughing ahead despite the perceived
slump, but some upstream projects have been postponed for up to four years. “Right now we have over 150 projects in upstream oil and natural gas liquids (NGLs), but at this time, because there is excess production capacity, we are postponing 35 projects until after 2013.”
CORRECTION Projects on hold for review were originally reported to be postponed until 2030. Secretary El-Badri has stressed the projects will be considered again in 4 years. Read the full and exclusive interview with the OPEC secretary general at ArabianOilandGas.com
A Kuwait Oil Company (KOC) pipeline that leads to the Ahmadi port leaked a substantial amount of oil in July. A KOC spokesperson conmfirmed the leak has been brought under control. The Kuwaiti news agency Kuna reported that approximately 250 barrels of oil was leaked out of the pipeline before a specialist team isolated the line and plugged the hole. An investigation into the incident has been launched. Gulf Keystone Petroleum announced in July that it has been awarded “significant” interests in two production sharing contracts (PSCs) by the Kurdistan Regional Government (KRG).The British exploration and production company said the contracts cover the exploration, development and production of hydrocarbon resources in the Sheikh Adi and Ber Bahr blocks in Iraqi Kurdistan. Pakistani engineering company Descon Engineering, has been awarded a contract worth US$100 million to carry out the construction of air separation units at Gasco at Ruwais. Descon will carry out the civil and mechanical works for the Mirfa-1 Project. Construction is set to begin in August and slated for completion in Q1 2011. The two plants will supply a total of 670 000 cubic metres per hour of nitrogen for injection into the onshore condensate field at Habshan in Abu Dhabi.
August 2009 Oil&Gas Middle East
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REGIONAL NEWS
Dragon Oil ups production 11%
Exxon spuds well in Libya
Dubai-based exploration and production company Dragon Oil announced that average production rose 11% in the first half of 2009 compared to the corresponding period of 2008. “The first six months of 2009 were eventful on the operational and corporate fronts,” CEO Jaleel Al Khalifa said. “Due to changes in the drilling programme and certain operational issues the average production for 1H 2009 was below expectations. However, we remain committed to our drilling programme and expect up to 15% growth in annual production on average over the years 2009-11,” he added.” Dragon Oil’s crude oil sales for the period rose by 40% compared to 2008. The company sold 4.9 million barrels although the average price received for its crude dropped 54% to around the US$50 mark. Average daily production grew to 42 808 barrels per day (bpd) from 38 482 bpd in 2008.
US supermajor ExxonMobil has announced that its affiliate, ExxonMobil Libya Ltd, has started drilling the first deepwater exploration well in Libya. The A1-20/3 well is being drilled in Contract Area 20 (CA 20) located offshore in the Sirte Basin, northeast of the city of Misrata, in the Libyan Mediterranean Sea. “We are pleased to start drilling our first deepwater exploration well in Libya based on the rigorous technical work conducted by our Libyan National and expatriate scientists, and in collaboration with the National Oil Corporation (NOC) to progress our exploration program,” Phil Goss, president of ExxonMobil Libya Limited, said. The company said that the rig, contracted from Noble Africa Limited, is capable of operating in water depths up to 2,195 meters, and can drill to a depth of 9,144 meters. Elsewhere in Libya, ExxonMobil Libya Limited has completed
Oil&Gas Middle East August 2009
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First deepwater drilling begins in Libya’s Mediterranean waters
Libya has approximately 41 billion barrels of oil, 80% of which is in the Sirte Basin.
two 3D seismic surveys in offshore Contract Areas 20 and 21, and three 2D seismic surveys in offshore Contract Areas 44, 20, and 21. OPEC member Libya, holds the largest proven oil reserves in Africa, followed by Nigeria and Algeria. The country has total proven oil reserves of 41.5 billion barrels as of January
2007, up from 39.1 billion barrels in 2006. About 80% of Libya’s proven oil reserves are located in the Sirte basin, which is responsible for 90% of the country’s oil output. Over the next six years, Libya would like to see oil production capacity increase by 40 percent from 1.8 million barrels per day (bbl/d) to 3 million bbl/d by 2013.
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REGIONAL NEWS
Dubai yard renews BP alliance BP Shipping partnership dating back to 1992 extended after 44 successful projects UAE ship repair, conversion and new building yard Drydocks World – Dubai has announced that it has renewed its longstanding association with BP Shipping with the signing of a new alliance agreement. Drydocks World said the agreement will see the two companies work closely to achieve “optimum production levels” based on mutually agreed terms, which includes strict implementation of accepted standards in safety, quality and environmental protection. A joint team headed by Ravi Senaratne, commercial director, Drydocks World – Dubai and Andrew Cassels, manager, Fleet Integrity Team, BP Shipping, will monitor all repair projects from the outset, even prior to the vessel’s arrival in Dubai, until the work is complete. Ecluding time charters, the BP-managed fleet consists of around 60 vessels - four Very Large Crude Carriers (VLCCs),
Drydocks World Dubai handles 400 vessels in an average year, most of them ULCCs and VLCCs, and has LNG servicing capability.
one North Sea shuttle tanker, 42 medium size crude and product carriers, seven liquefied natural gas (LNG) carriers and three new liquefied petroleum gas (LPG) carriers. All of these ships are double-hulled. BP Shipping also also managed 24 regional vessels, including coasters. Nawal Saigal, managing director of Drydocks World – Dubai with a BP official.
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August 2009 Oil&Gas Middle East
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NEWS ANALYSIS
NEWS ANALYSIS Chinese oil appetite is up Year on year consumption is up for third month in a row as China picks up global shortfall
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lion stimulus package stoking domestic consumption and gross domestic product (GDP) growth rebounding to 7.9% in the second quarter from 6.1% in Q1,” said Vandana Hari, Asia news director at Platts. “The new peak in Chinese oil processing rates in June was no doubt also helped by the government’s new domestic fuel pricing formula in use this year, which aims to protect refiners on costs and margins. But there is plenty of scepticism by oil market observers that domestic consumption will keep China’s engine running at the current Merrill Lynch and UBS economists predict further growth in the dragon economy. pace in the coming months if Wang Tao, an economist its export markets continue to demand for oil imports, which will go some way to stemming with UBS Securities and one of remain in the doldrums.” the expected drop in demand the experts on the forecast panel, said China could achieve the from the OECD countries. GLOBAL VIEW China’s official news agency, set goal of 8% economic growth In the last week of July, Bank of America Merrill Lynch raised Xinhua, also reported that for the full year. Chinese banks lent a record its forecast for the world’s third- China’s economy showed more largest economy to grow 8.7%, signs of recovery and was likely 7.37 trillion yuan (1.08 trillion from 8.0% previously. Recent to grow by around 9% in the third US dollars) in the first half to economic data “convinced the quarter, quoting a senior econo- shore up the economy. “China’s market that China’s recovery mist. Wang Xiaoguang, director economy was in the V-shaped is real,” said Merrill economist of Macroeconomics Division of recovery course. The government stimulus Institute of Economic Research Ting Lu. Merrill now expects China’s of the National Development package could help the country achieve the eight-percent gross domestic product to grow and Reform Commission. China’s economy was fore- economy expansion goal, while 9.2% in the third quarter and 11.3% in the fourth quarter. It cast to grow by 8.9% in the third the next priority for China also raised next year’s growth quarter year-on-year, according is creating more jobs,” Sun rate to 10.1% from 9.6%. Such to the report released by the Chunming, an economist with growth is likely to lead to greater Peking School of Development. Nomura Securities told Xinhua. Getty Images
hina consumed 33.35 million metric tonnes of crude oil in June, which was up nearly 2.6% from the corresponding month of 2008, and the third month in a row to register a year-on-year increase in demand, according to a Platts analysis of official data in July. Crude oil throughput at Chinese refineries rose to a new high of 31.92 million metric tonnes in June, or an average of 7.8 million barrels per day, dwarfing the previous record of 31.19 million metric tonnes processed in May. Domestic crude production in June, however, failed to keep pace with the rise in refinery runs, inching up 1.8% from a year ago to 15.71 million metric tonnes (3.83 million b/d). Meanwhile, China’s year-todate oil demand is slightly below 2008 levels, as the strength in the second quarter 2009 could not fully offset the slump in the first quarter. Chinese oil demand in the first half of 2009, at 186.32 million metric tonnes, was 0.23% below the same period of 2008, Platts estimates. “China appears to have decoupled itself from the world’s economic malaise for now, with Beijing’s Yuan 4 tril-
August 2009 Oil&Gas Middle East
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NEWS ANALYSIS
In depth: OPEC analysis World Oil Outlook 2009 says Asia will account for 80% of demand growth to 2030 ast month’s OPEC market report revealed that several encouraging trends have begun to take root, and economic indicators are for world oil demand to return to positive growth in 2010. The OPEC reference basket surged $11.38 per barrel, or almost 20% to average over $68 in June. Encouragingly, wild fluctuations appear to have exited the market, with July closing just below at $68.32 at the time of going to press. These figures are the highest monthly averages recorded since October 2008. “Considerable optimism over prospects for the world economy, US dollar fluctuations and rising equity markets helped the basket firm to over $70/b as the market moved further into the driving season,” stated the report. However, it warned that weak demand and continuing builds in refined products capped the bullish sentiment.
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ECONOMIC OUTLOOK The report stated that the 1.4% contraction so far this year, the world economy is expected to rebound in 2010 with growth of 2.3%. The OECD is forecast to grow at a miserly 0.7%, up from -3.9% in 2009. The US is expected to grow at 1.2% next year, but the report highlights that the main concern in the OECD group continues to be the Eurozone, which is expected to decline a further 0.4% after this
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year’s massive contraction of 4.6%. Despite some encouraging signs in the OECD, many uncertainties prevail as unemployment is expected to grow further, and consumer sentiment remains restrained to say the least.
OIL DEMAND The OPEC report says that world oil demand is expected to turn positive in tune with the global economic picture in 2010. “After two consecutive years of negative growth, global demand next year is projected to show an increase of 500 000b/d. Non-OECD are expected to make up the bulk of the increase, growing by 800 000b/d. It follows in the analysis that the OECD region is forecast to see a continued contraction of 300 000 b/d, following a decline of 1.8mb/d in 2009. The overall global economic outlook will be the biggest factor impacting oil demand growth. “The pace of global economic Asia will account for the biggest increase, but from a low per capita use base. recovery continues to be the main risk for outlook for the next year. For the current year the world oil demand growth forecast remains at -1.6mb/d. The report also estimates that the demand for OPEC crude in 2009 will average 28.5mb/d, a decline of 2.3mb/d from 2008. In 2010, the demand for OPEC crude is expected to average 28.1mb/d, repreOPEC World Oil Outlook 2009 senting on 400 000b/d drop from the current year.
Oil&Gas Middle East August 2009
“Realistically, however, fossil fuels will continue to satisfy most of the world’s energy needs, contributing more than 80% to the global energy mix over this period. And oil will continue to play the leading role to 2030”
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NEWS ANALYSIS
WORLD OIL OUTLOOK Last month also saw the unveiling of the hotly anticipated 2009 World Oil Outlook report from OPEC HQ in Vienna. Essentially the outlook for oil producers is rosy. Under all of the reference scenarios factored in, global energy use is still set to rise. In the reference case, it increases by 42% from 2007 – 2030. Developing countries will account for most of these increases, by virtue of higher population and economic growth. “However, energy use in developing countries will remain much lower on a per capita basis, and globally, renewable energy will continue to grow fast, but from a low base,” it says. The outlook
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points out that nuclear energy’s slice of the mix grows faster than in the previous outlook, while hydropower is also set to expand faster than the oil growth rate. “Realistically, however, fossil fuels will continue to satisfy most of the world’s energy needs, contributing more than 80% to the global energy mix over this period. And oil will conitune to play the leading role to 2030.”
ANALYSIS Interestingly, the report has revised downward oil demand projections in both the medium and long term assumptions. The medium term prospects for oil demand are adversely impacted by the lower economic growth projections.
“Given the anticipated slow recovery, the annual increments in demand for 2010 and 2011 are below that of 2012, once economic growth has returned to its full potential. This represents a major reassessment from the previous reference case. By 2013, oil demand is 5.7 mb/d lower than in last year’s outlook, with a difference of 4mb/d already witnessed in 2009.” As the report projects further into the future, it concedes that the global recession has had a significant impact on previous estimates. “Efficiency improvements are stronger than previously assumed, and this compounded with the global recession, has led to a significant downward adjustment
to oil demand in the longer term. Oil demand in the reference case is less tha 106mb/d in 2030, down from 113 mb/ d last year.” Almost 80% of net demand growth is expected to come from developing Asia. “Nevertheless, the per capita oil use in developing countries will remain far below that of the developed world. For example, one person’s use in North America will still be 10 times that of South Asia.”
REVISED – ONLY JUST The report digests a great many complex factors and provides a projection which confirms the world will be different in 2030 – but not too much. Solid rationale for continuing usptream investment, then.
August 2009 Oil&Gas Middle East
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SONATRACH EXCLUSIVE
ALGERIA’S AMBITION OPEC Secretary General, Abdalla El-Badri
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Oil&Gas Middle East August 2009
Sonatrach, has allocated $65 billion for its five year plan. Oil & Gas Middle East meets North Africa’s most dynamic oil company CEO, Mohamed Meziane www.arabianoilandgas.com
SONATRACH EXCLUSIVE
Sonatrach’s gas processing facility located in Arzew on the western coast of Algeria, 450km from the capital Algiers.
onatrach, Algeria’s state-owned oil company is rightly portrayed as a North African behemoth. The firm, by most standard indicators, is the giant continent’s largest company, Europe’s second largest gas supplier, and the third largest LNG exporter worldwide. The company retains control over all oil and gas exploration, production, and refining
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activities. Its importance to the national economy cannot be overstated. The hydrocarbon sector is not only the backbone of the economy, but also the country’s engine room, providing the foreign exchange and wealth to fund the ambitious diversification efforts of the government. Oil and gas related activities account for roughly 60% of budget revenues, 30% of the national GDP
and a massive 95% of Algeria’s export earnings. Steering the national ship Sonatrach is chief executive officer Mohammed Meziane. Given the astonishing ambitions he has for the next five years, and the money that will be spent to get the job done, he’s fast gained a reputation as one of the hardest men to get a sit down meeting with in the industry. Oil &Gas Middle East managed just
that recently in Abu Dhabi, and discovered February’s reports of a US$60 billion investment chest over the next five years was wrong. It’s now $65 billion, and the upstream business will be the principal benefactor. “We aim to invest US$65bn on the energy sector in the next five years, with an average of $1.5 billion each year for the next five years on exploration activities alone. It may be higher
August 2009 Oil&Gas Middle East
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SONATRACH EXCLUSIVE
“Sonatrach wants to invest in upstream activity in Nigeria and Niger, and to control the whole value chain, from producing the gas, to supplying, transporting and marketing it”
in some years, but the average is $1.5bn,” reveals Meziane. Pressed on which fields would be developed first, Mezian revealed that the countries twin giant oil and gas fields will be allotted considerable funding. “We have important development in Hassi Massoud field and we continue the improvement of production in Hassi R’Mal. The other developments will concern all the discoveries we have made within recent years, which is between 70 and 75 discoveries of different sizes.” The Hassi Messaoud oil field, located 630 kilometres southeast of Algiers, produced around 400,000 bbl/d of crude in 2008, and the Hassi R’Mal giant gas field holds 2.415 trillion cubic metres of natural gas, and probable reserves of around 2.7-3 trillion cubic metres. The annual producing capacity is around 100 billion cubic metres of natural gas. Existing projects are also pushing ahead, and Meziane says a raft of deals signed
recently will expedite the project development process. “Sonatrach has been already awarded and signed contracts for the Menzel Ledjmet East (MLE) field and Al-Merk field this year with Saipem, Petrofac, ABB and other companies. There are other major projects which are also under way like Haoud Berkaoui phase II, Menzel Ledjmet among others. We will start the development on these projects in the coming weeks and the contracts have been already signed.” The project development plans are in place to achieve some lofty, but Meziane says, realistic targets. “Our goal is to reach 1.5m bpd by 2005- 2007, we have now capacity of 1.45m bpd, but our real production is around 1.2m bpd, in accordance with the OPEC decision. For gas, real production is 150bn cubic metres per year, condensates 13 to 14 mtpa. For LPG it currently stands at 8.69 mtpa, but these production figures will be increased through the
THE SECOND BID ROUND The second upstream bid round will offer ten blocks, three gas fields and seven oil fields. The number of participants at the general presentation held by ALNAFT “l’Agence Nationale pour la Valorisation des Ressources en Hydrocarbures” on July 27th stood at 52 companies. Bid round agenda: • 27th July 2009: General presentations of technical data and the modalities of participation at the data room for interested companies • 15th August to 22nd August: data room session and technical file and delivery of specifications related to each interested company. • 2nd Sep to 26th Oct: Clarification meeting where companies can make written proposals for desired changes to the contracts. • 9th Nov: ALNAFT transmits the final contractual documents and informs all companies about the modifications made. • 20th Dec at 10am: dead line for offer’s submission and the publicly opening of envelops at 10:30am. • 16th Jan 2010 at 14 00 pm: the signature of contracts in Algiers. Mohamed Meziane attended GASTECH in Abu Dhabi earlier this year.
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Oil&Gas Middle East August 2009
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SONATRACH EXCLUSIVE
development plans that I outlined earlier.” The $65 billion price tag on investment to 2014 may have been born in an extremely high price environment, but the subsequent collapse and stabilisation in 2009 has not forced the figure to be revised. Meziane says that these projects are cornerstones of Algeria’s economy, and will go ahead regardless. However, when asked for a sensible benchmark for the oil price, Meziane points to the $65 - $75 price range. “This is a fair and reasonable price for oil today.” This would deliver a favourable margin to Algeria. Earlier this year Chakib Khelil told the UK’s Financial Times that Sonatrach needed an oil price of $40-50 a barrel for its investments to pay off.
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GOING GLOBAL Algeria’s national oil giant has ambitions and goals beyond its own borders. Its oilfield experts have been lending their skills to producers around Africa as well as operations as far away as South America. “Sonatrach has international investment programs in subSaharan countries Mali, Niger, Mauritania, Egypt, Libya and Tunisia, and also in Peru at the Camisea field in the Amazon Rainforest. These investments are ongoing, and seismic works in Mali and Niger have been completed, along with a seismic and drilling project in Libya.” Sonatrach is operating in two blocks (095 and 096) located in the Ghadamès Basin in neighbouring Libya. Egypt is also an exciting operation for Sonatrach.
Meziane says Sonatrach is forging ahead with its investment plans in 2009. In what was a first offshore venture for Sonatrach, the company partnered with Statoil in the exploration of an 8,368 sq km block in the Mediterranean Sea back in 2007. El Dabaa Offshore lies in 1km to 3km of water in an
area west of the Nile Delta. Statoil operates with an 80% interest, while Sonatrach holds the remaining 20%. “In Tunisia, Sonatrach is an equal partner in a joint venture company with the Tunisian
August 2009 Oil&Gas Middle East
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SONATRACH EXCLUSIVE
company ETAP. We have made small discoveries with this joint venture, one in Algeria and the other one in Tunisia – both of which we are going to develop,” explains Meziane. In Europe Sonatrach is also making its presence felt, with a hand in several refining and downstream marketing projects, mainly in Spain, the United Kingdom, Italy and France.
Sonatrach, but on the national level, we finance our projects using our own cash flow or through Algerian banks. Internationally we largely invest through our own cash flow as well, but also sometimes turn to banks for financing.”
MIDSTREAM DEVELOPMENT
Algeria expects to boost its exports of natural gas to 100bn FINANCING cubic metres by 2015, up from The oil industry in general 62bn today. In order to get that to is facing quite a conundrum. gas Whilst project build, labour and material costs have plummeted since 2008, the lines of credit necessary to seize the opportunity have evaporated along with many a banker’s ego. Sonatrach, unlike many IOCs however, has the cash to available to fund its ambitious development plans. “Generally we self finance. The decision of project financing abroad of course depends on the fiscal situation of
Mohamed Meziane met Oil & Gas Middle East in Abu Dhabi.
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Oil&Gas Middle East August 2009
“We aim to invest US$65bn on the energy sector in the next five years, with an average of $1.5 billion each year for the next five years on exploration activities alone” market, Sonatrach is driving forward substantial midstream developments projects, including a landmark subSaharan pipeline which will connect Nigeria to the Mediterranean markets through Niger and Algeria. “We have three main pipeline projects underway. For the Med Gas project, between Algeria and Spain the pipeline has already been laid, and will be operationally ready by the end of 2009. The pumping stations in Beni Safa (western Algeria) and the reception station in Almeria in Spain are being built now too.”
The second pipeline project is Galssy, which will link Algeria to Italy. “All of the feasibility studies have been completed, and we are in the process of getting the authorisations and the permits, this will take time, but I hope that we will receive all the permits by the end of this year and then we will start the construction in early 2010.” Linking Nigeria to Algeria through Niger, using the Algerian gas grid to transport the Nigerian gas to supply the European market is certainly the most challenging midstream project in Meziane’s portfolio. “We are currently in the process of the feasibility study and the related work, and preparing the studies of the framework of the project (Feuillet de route). This takes a bit more time as it crosses three countries, and each country has its own legislations. We are looking closely at the financial side of this project too, as there are European countries which are interested in financing this project.” The complexities do not daunt Meziane, who says that he hopes to see this pipe operational by 2015. Key contracts for the Trans-Saharan network are scheduled to be awarded in 2011, assuming the cross-border agreements between Sonatrach and Nigeria can be
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SONATRACH EXCLUSIVE
“Our decision is to not delay any project. Sonatrach will not delay, freeze or cancel any projects. We are taking every step to maintain the rhythm of investment”
arranged in time. The project is estimated to come in at around $12 billion. Meziane says that whilst the pipeline will be funded by several entities, including producers and consumers, he is keen to see the company play an active role in the whole production and delivery cycle. “Sonatrach wants to invest in upstream activity in Nigeria to produce the gas and secure the supply of the pipeline. We are working hard to secure the participation of Niger, and also to control the whole value chain, from producing the gas, to supplying the gas and transporting and marketing it in Europe.”
IOC’S IN ALGERIA
Sonatrach is currently the world’s second largest LNG exporter.
NUMBER CRUNCHER: SONATRACH • Largest company in Africa • 1st commercial producer and exporter of LNG in the world* • 2nd largest LNG exporter in the world • 3rd largest natural gas exporter worldwide • 11th largest oil & gas company in the world • $12 billion – estimated cost of Trans-Saharan pipeline • 16 – Number of new discoveries in 2008 • 7 – Number of discoveries made with foreign partners
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Oil&Gas Middle East August 2009
Sonatrach has worked with many of the oil majors throughout the years, and Meziane expects to see existing partnerships grow, and new ones be formed in the busy years ahead. “We have many international partners, including Shell, Total, Statoil, Petro-Vietnam, PetroCanada, Halliburton, Repsol, and Schlumberger, a lot of the big names. They are investing and are very satisfied with their business in Algeria,” smiles Meziane. Looking ahead, the CEO says that Algeria’s policy towards new ventures and partnerships is very much one of an open door. “We are proposing that when we have projects bidders should approach us and begin discussions. It’s best to have a good dialogue and establish what both parties can bring to the table.” Meziane points to the regulatory reforms in 2005 as a good, workable model which will further encourage foreign participation in Algeria’s upstream
sector, without jeopardising the national interest. “The legislative hydrocarbon laws 005 and 007 of 2005 give an excellent umbrella for foreign companies in Algeria. I think the regulations are very good, and the conditions are clearly and openly declared. The legislation states that Sonatrach, or any other Algerian company, should have a 51% stake, while a foreign partner, or partners will control the remainder,” he explains. “For example, in the downstream projects, the feedstock gas is allocated at an incentivised rate, which will be very lucrative for downstream investors, but the overall project is controlled by Algeria.” Other policies have been enacted which make investment in Algeria very attractive, says Meziane. “Favourable conditions such as tax exemptions are very important and act as good incentives to not only invest in Algeria, but also to build a good ongoing partnership,” he adds.
RACE IS ON In order to capitalise on the current cost-benefit of growing the oil industry in Algeria, Sonatrach has committed to pushing ahead with its key projects, and the CEO is keen to stress that projects will not be put on hold, despite the fact that volatility in the oil markets has become part and parcel of the 2009 experience so far. “Our decision going forward is to not delay any project. Sonatrach will not delay, freeze or cancel any projects. We are taking every step to maintain the rhythm of investment. I have declared many times that our budget, our predictions and our plans are on track and have not changed.”
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UPSTREAM CABLES
SPEC
CHECK Global cable suppliers are chasing the Middle East’s petro-fuelled market. Helping you make sure you can get quality and reliability from vendors is the first Oil & Gas Middle East Cables Buyers Guide
Mike Smith, VP sales for MacLean Electrical, is based in Dubai.
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Oil&Gas Middle East August 2009
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UPSTREAM CABLES
Supply chain complexity is an important consideration as upstream cable vendors increasingly source goods globally. ables for the upstream sector represent a multimillion dollar industry each year. Greenfield projects offer the most potential, but constant repair and upgrades of oilfield equipment, pipelines and drilling rigs has kept the world’s leading cables providers buoyant despite the shelving of several big ticket projects. Many global suppliers have scrambled for the Middle East’s petro-dollar, and that competition is only set to increase. Badly managed supply chains and substandard cable manufacturing processes can blight a major oilfield project, so keeping expenditure down without jeopardizing a project can be a tough balancing act for a procurement manager. To make clear the issues involved, Oil & Gas
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Middle East has partnered with industry veteran Mike Smith, VP sales at MacLean Electrical Group (incorporating Noksab), to bring you an indespensable buyer’s guide. MacLean Group is a worldwide provider of electrical products and power, control, instrumentation and fibre optic cables for offshore and onshore energy, petrochemical, process and marine applications. What specifications should upstream customers be aware of?
MS: Correct specifications and appropriate current Industry standards are paramount for selecting the correct electrical cables for oil, gas and process onshore, offshore and marine applications. Although the basic make up of cable has not
drastically changed over the past 50 years, what has changed are the properties of materials used in the manufacture which are constantly being developed with product longevity, protection against harmful elements and safety in mind. A number of recognised authorities and approval industry standards companies follow developments and ensure that before any written specification is approved, appropriate strict testing is carried out. What research and considerations should a procurement manager be aware of in the current market climate?
MS: In the current climate where most of us are sailing in unchartered waters, procurement managers’ attention should be focused on ensuring
August 2009 Oil&Gas Middle East
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UPSTREAM CABLES
quality and proven manufacture. When cost reduction pressures affect everyone, opportunities present for low cost manufacturers to introduce reduced quality and manufacturing standards, always to the detriment of the life expectancy of the cable and safety, whether for a new project or for maintenance and repair applications. The purchase price is not necessarily the actual cost, and when cable is purchased purely on the basis of lowest price, problems inevitably occur. The primary component in any cable is copper, such a price volatile commodity in today’s market place. The appropriate means of ensuring the purchaser is obtaining the best price is by managing the copper value - a simple process available through any reputable cable supplier. Other materials used in the manufacture of cable also have an effect on pricing. What is most important is to ensure that there is no degradation of the manufacturing quality or with the quality of materials used in the cable construction. Appropriate words of wisdom are “You get what you pay for”. What criteria are most important when choosing your cable supplier?
Mike Smith says that the upstream business has taken a hit in the course of the last year, but is bouncing back. can prove extremely beneficial, providing buyers with a better understanding of the manufacturing processes and constraints as well as hands on feel for a supplier’s manufacturing capabilities and quality. Where do oil and gas companies make mistakes in the cable purchasing sector?
MS: Mistakes are often made in the purchase of cables. Thankfully within the oil and gas market, a proven track record does show that, providing the specification and standards are fully documented, a reputable cable supplier will provide buyers with the confidence that they understand the requirements and will ensure that any possible oversight or more appropriate solution is proposed prior to manufacture.
MS: When choosing a cable provider, an organisation must have confidence in its supplier. This can be measured by experience, specialist knowledge, industry references and the ability to supply the necessary test and certification documents. The opportunity to see and handle cable samples is also a useful way to measure the Is the industry static, quality of a supplier’s products. or are improvements constantly Should time allow, a factory visit being made?
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Oil&Gas Middle East August 2009
MS: The MacLean Electrical Group, through its cables specialist Noskab, has been successfully supplying all types of electrical, instrumentation and control cables for oil, gas, process, energy and marine applications for almost 40 years. Along the way they have introduced innovative ideas, collaborated on technical improvements, provided commercial and technical advantage, constant improvements to manufacturing and documentation quality and have been a reliable source for application advice, matching the appropriate cable to a client’s application. For any new project, numerous cable types and accessories are required and appropriate knowledge, experience and proven capability are essential to maximize the benefits for clients through effective manufacturing monitoring, distribution and cable management. Involving a dedicated and reli-
able cables partner early in the project helps to ensure the best product for the application, most economic manufacturing lengths, reduction of surplus materials and product damage during the life of your project.
ABOUT THE AUTHOR Mike Smith is the Middle East sales vice president for the MacLean Electrical Group (incorporating Noksab). With 35 years experience in the global cables market, and 14 years in the Middle East, Smith is based in Dubai with clients around the entire Middle East region. MacLean Electrical Group has one of the industry’s most comprehensive project experience lists, recognition that the leading companies across the world who need to rely on high quality supply chain, make regular use of its services.
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UPSTREAM CABLES
Oglaend System has developed the MultiGrid support product, suitable for all main disciplines including piping, cables and HVACs.
INDUSTRY FOCUS: CABLE MANAGEMENT
Oglaend System chairman and company founder, Gunnstein Austigard.
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Oil&Gas Middle East August 2009
Oglaend System is a veteran to the oil and gas industry’s cable management sector, formed over three decades ago in Norway and with a regional subsidiary opened in Dubai three years ago. “No place has higher requirements with respect to quality, weight, safety and corrosion resistance than the oil and gas industry on the North Sea shelf. Our 30 year pedigree of close collaboration with the industry there has given us the advantage to test our products under the harshest conditions imaginable,” explains company chairman, Gunnstein Austigard. “Our engineers work closely with our customers and through this collaboration we have developed the MultiGrid system which has been designed to support all disciplines with fixing points
including piping, whatever purpose.” The MultiGrid from Oglaend System allows for normal construction practices for new plants and installations while enabling last minute project modifications and subsequent maintenance and modification work to be completed. The latter is achieved without the need for time consuming, costly and potentially dangerous hot work permit operations, thanks to its bolt-on/screw principle. Austigard says the system is an ideal solution for a wide variety of energy industry applications, but is particularly well suited to drilling rigs, offshore platforms, FPSOs, FSRUs, petrochemical plants, LNG terminals, as well as other upstream and midstream applications where cable management can
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UPSTREAM CABLES
be a complex mixture of safety and installation efficiency. Beyond the MultiGrid, Oglaend System has a wide portfolio of cable management systems to support the industry’s need for cable trays, lighting trunking, and FRP ladders, as well as clamps and fixing for cables, pipes and tubes. “In the oil and gas industry safety is obviously paramount, so we comply with the specifications, which are mostly given by the owner of the project, but our installed equipment is usually based on DNV standards or American Petroleum Institute(API) and British standards, which are widely used.”
Austigard adds that Oglaend System has been involved in some very interesting projects lately. “And we’re excited about bringing that know-how to the Middle East oil and gas market,” says Austigard. Among these landmark projects is the Bayu-Undan, a huge oilfield in the Timor Sea offshore Australia, operated by ConocoPhillips. This field is being developed by three jacket platforms, the topside decks for each weighing in at a massive 30 000 tonnes. Oglaend System delivered over 17 500 metres of OEladders and approximately 55 000 metres of SBF-RF40 trays and cable channels for the topsides.
Regionally, the Pearl GTL in Qatar is receiving the Oglaend System treatment. Pearl will be the world’s largest plant of its type, converting natural gas into 140 000 barrels per day of clean-burning liquid products. Oglaend System has a contract for supplying the key process plant and jetties. For these packages the company has produced 65 000m of cable ladder and 175 000m of cable tray – plus accessories. “Our ability to rethink our business – and to understand customer’s needs has resulted in a huge range of products. Our goal is to help clients cut Oglaend cable solution installed on overall costs, both in the short and the Bayu-Undan offshore facility. long run,” says Austigard.
Oglaend System installed 17 500m of OE-ladders and 55 000m of SPB-RF40 trays and cable channels for the ConocoPhillips Bayu-Undan offshore facilities.
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August 2009 Oil&Gas Middle East
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EXPERT VIEW
Ask the
Expert Question: I’m in charge of asset management for a large oilfield facility. What’s the best approach to optimising safety, efficiency and reliability?
Expert: Bilal Abdallah business development manager, manufacturing excellence, Honeywell Process Solutions If you have a question you want answered, or a topic discussed, please send it to daniel.canty@itp.com
A
sset management: The phrase may be a modern term, but the concept is not new; in fact it dates back to the Stone Age, in a manner of speaking. When Man started using tools, maintenance began with the sharpening of stone knives as well as the preservation of clothing and other basic belongings. It was a major part of the survival of mankind for centuries. This reactive maintenance prevailed for thousands of years until the advent of the ‘machine’. Once machines were invented, preventive maintenance (lubrication, replacement of parts and regular checks) began to gain traction and was used in conjunction with reactive maintenance. The measures for preventive maintenance were set out by the emerging manufacturing sector. Over-maintenance then became a concern when research showed that in more than 70% of surveyed cases it was proved that equipment aging and reliability were not inter-dependant. Fast-forward to more recent times and Honeywell’s control loop management (loopscout) studies which determined that 50% of maintenance processes were quite unnecessary while 10% were actually harmful!
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Therefore, plants started to take advantage of technology to monitor the equipment condition as basis for maintenance. However, there was a tendency to set up equipment condition monitoring processes around the plant, most of which were not required and added to needless costs. To rationalise the method of using a varied maintenance approach, industries such as those
– it helped foster collaborative and innovative thinking to optimise the use of available resources. Having said that, integration is a tool: To use it efficiently and effectively for leveraging the desired results is a science… I may even call it an art! Several integration projects failed for any number of reasons: Unclear direction, complexities, and violation of internal regulations, to name just a few.
“Integrated technology has provided a much-needed solution. It helps foster collaborative and innovative thinking to optimise the use of available resources” in the aviation sector adopted Reliability Centered Maintenance (RCM) which proved to be an excellent tool in terms of reducing or avoiding reliability issues at the equipment design phase. However, RCM did not work quite so effectively with existing equipment since it drew heavily on the plant’s high-level resources, aggravating a situation where such resources were already becoming scarce. Integrated technology thus provided a much-needed solution
A thorough understanding of business processes and best practices is extremely crucial for collaborative asset management to work effectively and efficiently with top management buyin at the very outset. Inexpensive measures should also be first examined for their efficacy such as ‘visual inspection’ that can be implemented by trained operators for simple routine inspection jobs using Remote Frequency Identification (RFID) proximity scanning.
Another example is monitoring process parameters for predictive maintenance where only (eg.) six simple measurements can provide the required data to periodically calculate both the efficiency and fouling factor. Vibration monitoring can also be widely used since monitoring tools are now less expensive and wireless technology has made it feasible to even monitor pumps and other rotating equipment. Performance management through rigorous models and benchmarking is key to ensure optimum utilisation of compressors and turbines. Corrosion monitoring is often considered a separate practice because of its specialised nature where risk based inspection is often used. Instrumentation and smart devices need to be effectively monitored not just because of their high cost value, but also because of far-reaching effects on safety and efficiency on the plant due to any malfunction. Asset management is a comprehensive practice that involves several departments including operations and management, and can no longer be the sole domain of the maintenance section. Integration and presentation tools can be used wisely to support the plant’s holistic strategy.
August 2008 Oil&Gas Middle East
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T h e 2 n d S au d i Ar a b i a Intern at i on a l O i l & G a s E x h i b i t i on & C on f erence DA M M A M, K ING DO M OF SAUDI ARABIA
T he main O il & G as eve nt in the K ingdom of Saudi A rabia, the wor ld’s la rge st oil produc e r
01–03 NOVEMBER 2009
www.saoge.org
MARKET WATCH
Miles Walker, QMENA chief executive is based in Dubai.
GAME
CHANGER hen news broke in July that a new joint venture oilfield services company had been formed in Saudi Arabia, industry veterans must have though the timing odd. In an era of consolidation, how bold does a fresh entrant have to be? With a paid up capital of US$10 million, and aggressive expansion in its sights, Oil & Gas Middle East sought out
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QMENA chief executive Miles Walker to discover why Quorum OGT has chosen now as the time to strike in the Middle East. “Quorum Middle East is an oilfield service company, as opposed to Quorum Oil and Gas Technology Fund, which is an investment company (and the parent organisation), which is a private equity company which has always
Launching next generation technology to a hungry MENA audience will separate QMENA from the pack, says CEO Miles Walker
invested in oilfield technology companies,” explains Walker. Quorum OGT has been around for over two decades and will be known to many through it’s acquisitions of up and coming technology providers. The company has built a track record of buying stakes in companies, usually in their teenage years. Rather than target highrisk start-ups, the fund tends to back companies with revenues
between $2 million and $50 million coming in. “The investment from Quorum OGT is more than just a capital injection, there’s a lot of management experience that comes with having Quorum on board. This has done very well for its investors, typically returning 18% - 19% each year for the last two decades. The company’s not completely risk averse, but it’s very calculated in where
August 2009 Oil&Gas Middle East
35
MARKET WATCH
they place there money. Eight companies were invested in during 2008, and that’s from a pool of several thousand that were examined, so the research is paramount.” With such an impressive track record, (made all the more remarkable given the gloomy economic backdrop in 2008, the company still managed a return to inception investors of 18.77%) one may be wondering why opening a new oilfield service company now is a priority for the Quorum OGT managed QMENA division, headquartered in the UAE. Walker is keen to explain the drivers behind both the push into the Middle East and the timing. “Traditionally much of the fund’s profit has been derived from the North American market, so in order to open up fresh opportunities and markets, the company decided that is would be advantageous to fund a start-up oilfield service company here in the Middle East, to bring the technologies from North America to the Middle East through an exclusive master licence agreements. That’s how QMENA was formed.” The master licence agreements are critical to the success the QMENA. Currently five of the seven portfolio companies are signed up through exclusive contracts, which cover the whole North Africa and the Middle East, India and Pakistan region. QMENA will operate as a UAE company, focused on bringing these new technologies to the local markets. “It is important people recognise that we’re a regionally focussed company, with a complete service team here on the ground, from operations supervisors, team managers and support staff, not
36
Oil&Gas Middle East August 2009
Walker says partnering with AlTurki opens many doors for the proprietory oilfield technology the company can offer. just a sales office extension of cant advantages over the major the fund.” suppliers. “The major ERP solutions are focused on serving primarily western manufacturing TECH TALK Delivering ‘game changing’ models, whereas Wellpoint is technologies to the Middle East much more process driven, so sounds ambitious, but Walker is applications in mining and petconfident that what the firm has rochemicals, as well as oil and on offer will shake up local mar- gas are extremely well suited to it. Initially we have targeted the kets. “As well as being an oilfield upstream sector, but also the service company we’re actually banking and aviation industries looking at some of the govern- are a good fit, and we’ve had ment municipality contracts we some very productive conversawant very closely. With the Well- tions with the big players in the point product we’re targeting this region.” By discerning which coneverything from aviation services to oilfield management, and tracts and tenders are a best fit, almost everything in between. Walker says the company stands It’s such a diverse piece of soft- a good chance of capturing ware. It’s a remarkable ERP national oil company contracts. solution that we can provide “We’re being very selective with faster and more economically the contracts we’re going for with the NOCs, we are not chasthan the really big providers.” Walker is not deterred by ing everything that’s out there the scale of the competition in - it is a much more targeted the ERP business, and says the approach. What we’ve found Wellpoint package has signifi- from dealing with the NOCs in
this region is that many of them welcome the extra competition. Quite a few technology markets are limited to a few established names, so the injection of fresh competition is definitely something these companies welcome in the market.”
THE KINGDOM Q – OGT announced in July that Q-MENA, had entered into a letter of intent which is intended to lead into the establishment of a 50/50 joint venture with the Khalid Ali AlTurki & Sons (AlTurki) in Saudi Arabia, with each party contributing up to an initial US$5 million to the joint venture. “Obviously Saudi Arabia is the leading country for oil production in the Middle East and has the largest market for oil services with over US$40 billion of contracts let in the last three months alone,” explains Walker. “Q-MENA’s proprietary
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MARKET WATCH
technologies have significant sales potential in the Saudi market. We went through a process of discussing potential investment into QMENA with all of our prospective leads, and ultimately we decided that the best group within the Kingdom was AlTurki. They have an extensive network of businesses within Saudi Arabia, and we were looking at capitalising on their knowledge of the market, and combining it with our knowledge to create a standalone Saudi Arabian operation. Essentially it will mirror QMENA, whilst being able to capitalise on AlTurki’s relationships and infrastructure in the Kingdom” says Walker. Obviously the relationship with Aramco is important, but Walker says it’s about more than just that. Familiarity with all of
www.arabianoilandgas.com
the processes involved in dealing with Aramco is paramount too. Through the JV Walker says that opportunities beyond Aramco are equally exciting. “We hope to look at the whole Kingdom, so beyond upstream there are opportunities with the petrochemical sector for the Wellpoint ERP solutions, so companies like SABIC are also on our radar, as well as the mining industry.” The CEO is undeterred by the current state of the industry, and says that there may in fact be advantages to launching the company during a slump. “Of course, the industry has seen better times, but I believe this is a good time to invest. From my experience whenever a large service company has appeared in the past, they’ve
always started during an industry downturn, with solid investors behind it. At the end of the downturn we’ll emerge very strong, and I’m confident that we are bringing technologies that the Saudi market has not previously had access to.” Walker adds that the collaboration with AlTurki was borne
out of a mutual desire to move quickly. “The company completely shares our vision of going into this market very aggressively, and that’s one of the things that attracted us to that partnership. Both parties want to be big players in the Kingdom, so that common desire is very promising.”
TECH FOCUS: WELLPOINT ERP SOLUTIONS In December 2008, QMENA entered into a license agreement with WellPoint whereby it became the exclusive licensee for WellPoint’s products in the Middle East, North Africa and certain parts of South Asia. QMENA acquired the right to sell 600 seats of any of the WellPoint software Dynamix AX software packages for $2 million, representing a substantial discount on WellPoint’s list price. QMENA is in the process of negotiating on-sales of these licenses in order to provide immediate revenues. QMENA has hired a consultant, Stewart Jack, an experienced ERP software consultant, to manage the Management Information division and initiate sales of the WellPoint licenses.
August 2009 Oil&Gas Middle East
37
OFFSHORE LNG CLASSIFICATION
IN DEPTH:
OFFSHORE LNG UNITS
The world is on the cusp of an LNG revolution. As more transport and processing takes place offshore, Oil & Gas Middle East reveals the process behind classification of these floating energy hubs ubai will soon host the 125 000m3 capcity Golar Freeze, a floating, storage and regasification unit (FSRU) for Dubai Supply Authority (DUSUP) and Shell in Dubai. Hamworthy is delivering the regasification skids for this vessel in September 2009. The system is being in-
D
stalled on the 1977-built LNG carrier that is being converted into an FSRU before being time chartered by Dubai Supply Authority (DUSUP) for 10 years, with options to extend for up to another five years. After its deliver y to DUSUP in the second quarter of 2010, Golar Freeze will be perma-
nently moored alongside a purpose-built jetty within Jebel Ali port. The FSRU will be capable of storing 125 000m3 of LNG and delivering up to 14 million m3/day (about 3 MTA) of regasified LNG to DUSUP for deliver y into Dubai’s gas network. Shell is acting as advisor on the project.
DNV CLASS Conn Fagan, business development manager, Offshore LNG, DNV Energy lifts the lid on how class rules are being formulated for the next generation of LNG FPSOs and FSRUs. Many factors are contributing to the current trend to develop and deploy offshore
Leaders in Fluid Engineering www.arabianoilandgas.com
August 2009 Oil&Gas Middle East
39
OFFSHORE LNG CLASSIFICATION
units for production and for import of LNG. Key among these are the desire to monetise remote gas fields, to avoid onshore safety and permitting issues and to ensure diversification of energy supply. Whatever the reason, these new applications provide a number of challenges when it comes to finding and applying relevant standards and predicting regulatory requirements.
At the other end of the value chain, at the market end, the transported LNG needs to be re-gasified to be made available for end-users. Carrying out such an operation offshore has several advantages compared to use of
lation and technical codes and standards. This is an area that DNV has been looking into in order to bring clarity to our clients.
as ships and follow a maritime compliance regime and ship-classification procedures. Vessels engaged primarily in processing of hydrocarbons have been defined as offAN ACCEPTABLE shore installations and follow an offshore comAPPROACH Classification has long been pliance regime and associated offshoreclass procedures.
DIFFERENT APPLICATIONS Offshore gas deposits are unfortunately often inconveniently located when it comes to being able to get to market. Whereas oil, with a little processing, can be readily stored and transported, natural gas can be more problematic, particularly where pipeline connection is either not technically or economically feasible. The solution being most evaluated at present is to liquefy the gas offshore to facilitate its transportation by ship to market. There are a number of variations in the concepts being proposed. These are related to scale of production, selected liquefaction process, extent of pretreatment of gas, and limitations on the composition of feed gas to name some.
14
MILLION
Cubic metres per day of gas will be supplied to DUSUP from the Golar Freeze. Source: Hamworthy
existing or new construction of land-based terminals. The offshore solutions have ranged from equipping the LNG carriers with their own regasification plant so that they can temporarily connect and discharge gas to a shore pipeline (Shuttle Regasification Vessels) or permanently locating a storage vessel with regasification plant which is regularly replenished by shuttle tankers. The permanently moored units may either be moored offshore or moored inshore at a jetty. What all of these concepts have in common is that they lie within a grey area with regard to applicability of existing legis-
used as a widely recognised means of verifying that an acceptable level of safety has been achieved in design, construction and operation of maritime vessels and floating offshore installations. Classification is typically used as a means also of demonstrating compliance with both maritime and offshore legislation. Traditionally vessels primarily engaged in transportation of LNG have been defined
Thus vessels used as Shuttle Regasification Vessels have followed a shipping regime and vessels acting as LNG FPSOs will follow an offshore regime. In between these applications are the various forms of Floating Storage and Regasification Vessels (FSRUs), inshore and offshore. In this case, partially
Leaders in Fluid Engineering 40
Oil&Gas Middle East August 2009
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OFFSHORE LNG CLASSIFICATION
dependent on authority acceptance, either a ship approach or an offshore approach may be used as seen fit. However, from the DNV perspective the important issue is the level of safety achieved rather than definition as ship or offshore unit. DNV have therefore developed requirements applicable to the various applications and aim at ensuring that
ments related to the operation as a regasification vessel. Specifically DNV have developed a guidance document entitled Classification Note 61.3 Regasification Vessels. For offshore-regime vessels, DNV bases its approach on design as an FPSO and adds considerations based on the fact that the hydrocarbon being processed results in LNG. The relevant DNV document is then DNV OSS 309 Verification, Cer-
“Offshore gas deposits are unfortunately often inconveniently located when it comes to being able to get to market� Conn Fagan, business development manager, Offshore LNG, DNV Energy
However whichever approach is adopted learnings from the second regime will also need to be accounted for. For example most LNG FPSOs will adopt a ship-shaped structure and use a containment system based on maritime application so that design methods and requirements applicable for such may form the basis for the off-
may adopt offshore practice for design of the position mooring system and adopt typical offshore requirements for process safety and shutdown systems. In either case however the pecularities of the specific application will need to be taken account of in considering the suitability of using requirements not originally developed for such a new application.
DEVIL IN THE DETAILS
an acceptable level of safety is achieved in all cases.
CLASSIFICATION RULES For ship-regime vessels, DNV use as basis their rules which cover gas carriers and have supplemented these with require-
Classification Rules will also typically make reference to international codes and standards when it comes to detailed design of systems or components on the vessel to be classified. When dealing with a concept which has never been built before it may well be the case that a code or standard used on a similar existing concept will be used as a basis. Here it is important to make some assessment tification and Classiof the applicability of indification of Gas Export and vidual requirements. It may Receiving Terminals, together well be that existing codes and with underlying Offshore Stand- shore application. Similarly a ship carrying standards have either explicit or, ards which address the techniout regasification operations more problematically, implicit cal details.
Leaders in Fluid Engineering www.arabianoilandgas.com
August 2009 Oil&Gas Middle East
41
OFFSHORE LNG CLASSIFICATION
assumptions which may not be wholly appropriate for the new application. An example of this would be the assumption of defined filling levels in vessels for marine transportation of LNG, which have not anticipated sloshing effects due to the intermediate filling levels experienced in offshore terminals. Similarly the source and potential increased frequency of leakage of gas may indicate an increased need for detection and automatic action. Other codes make assumptions about available separation of main functions which may not be practicable in an offshore application. One important means of ensuring that design, construction, and in-service requirements adequately address a particular and perhaps novel application is the use of risk assessment as an integral part of the DNV rules related to these LNG vessels.
Nakilat’s Q-Max vessels, with a capacity for 266 000m3 of LNG, can carry 80% more cargo than conventional ships.
been a long tradition of use of risk analysis. Similarly for novel concepts and in projects where key design features will change from project to project then an approach based on a combinaRISK ASSESSMENT Classification Societies have tion of prescriptive and risklong realised that it is extremely based requirements will be the difficult to formulate purely sensible way to proceed. prescriptive Rules which will address all types of vessels and their applications. Where designs remain relatively static over time, as has been the case in some parts of the maritime industry, prescriptive Rules will be adequate. However in many offshore-related projects where key parameters will be very siteand project- specific there has
For LNG FPSO and FSRU projects therefore, comprehensive risk assessments have been carried out to define specific requirements related to layout, escape, fire protection, venting and flaring arrangements, explosion prevention and protection.
The industry is rapidly developing new concepts to address new offshore LNG applications. DNV is providing assistance to our clients to ensure that this can be done within an appropriate rule framework which will lead to safe and regulatory compliant designs.
ABOUT THE EXPERT: Conn Fagan is responsible within DNV for business development within the area of offshore LNG terminals both for regasification and for liquefaction. He has been responsible for developing DNV standards and services with respect to classification of both FSRUs and LNG FPSOs and is closely involved with classification of the first FSRUs to be deployed and the first LNG FPSOs being designed.
Leaders in Fluid Engineering 42
Oil&Gas Middle East August 2009
www.arabianoilandgas.com
TENDER TRACKER
TENDER TRACKER Oman Focus: Kauther Gas Plant
TOP PICKS: Onshore Qatar field works Thermal Isolation & Fire Proofing Support at Offshore Locations in Qatar Country: Qatar Category: Offshore Issuer: Qatar Petroleum Closes: Aug 16, 2009 Dedicated Uwainat Gas Line to Typhoon Turbine at PS-2 in Qatar Country: Qatar Category: Onshore Issuer: Qatar Petroleum Closes: Aug 30, 2009
Petrofac has been a major player in the development of the Kauther gas field project in the Sultanate of Oman.
THE WIN: Oilfield services contractor Petrofac has announced that it has been awarded a massive US$350 million contract for the Kauther gas-field depletion compression project in the Sultanate of Oman. The UK-based company will undertake the engineering, procurement and construction (EPC) of the gas compression system, and associated facilities
at the Kauther gas plant, in addition to undertaking the commissioning and six months of initial operations management. “We are delighted to have successfully secured the Kauther gas depletion compression project,” Maroun Semaan, group COO of Petrofac said. “This award serves to further reinforce Petrofac’s commitment to the Omani market, gives us continuity of business
Maroun Semaan says the project illustrates Petrofac’s competitiveness.
44
Oil&Gas Middle East August 2009
in the Sultanate and again highlights Petrofac’s continued competitiveness in the Middle East,” he added. The contract was awarded on behalf of the Government of Oman by Petroleum Development Oman (PDO), which has been developing the Sultanate’s gas fields on behalf of the Government since 1978. The project follows the successful completion of the Kauther gas plant (pictured above) in 2007, which Petrofac built on a full EPC basis for PDO, including commissioning and operations. In 2008, Petrofac was asked to carry out the front end engineering and design (FEED) for the gas depletion-compression project and then invited to submit a commercial proposal for the EPC on a negotiated basis.
Water Pipeline from Kahramaa Meter To QP Tank at Dukhan Country: Qatar Category: Onshore Issuer: Qatar Petroleum Closes: Aug 30, 2009 Geology Lab Facilities within Dukhan Country: Qatar Category: Onshore Issuer: Qatar Petroleum Closes: Aug 30, 2009
ArabianOilandGas.com provides free access to the latest publicly available tender listings from across the GCC countries. The tenders included are aggregated from a wide variety of public and private sector sources. Wherever possible, tenders include the issuer, name and category of the tender, opening and closing dates.
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TENDER TRACKER
TENDER LISTING Kuwait, Oman, KSA & UAE EPIC of Fire Training Ground Upgrade within Dukhan Fields Country: Qatar Category: Onshore Issuer: Qatar Petroleum Closes: Jul 5, 2009 Abdali Main - Abdali Mid Oil Pipeline Country: Kuwait Category: Onshore Issuer: Central Tender Committee Closes: Aug 4, 2009 Condition Monitoring & Preventive Maintenance Services in Kuwait Country: Kuwait Category: Onshore Issuer: Kuwait Oil Company Closes: Aug 4, 2009 Construction of New Booster Station in North of Kuwait Country: Kuwait Category: Onshore Issuer: Central Tenders Committee Closes: Aug 16, 2009
Construction of Oil Pipeline in North of Kuwait Country: Kuwait Category: Onshore Issuer: Kuwait Oil Company Closes: Aug 23, 2009 Jurassic Project in North Kuwait Country: Kuwait Category: Onshore Issuer: Central Tenders Committee Closes: Sep 1, 2009 EPC of the DHDS Revamp & CCR Lift Line Project in Mina Al-Fahl Country: Oman Category: Onshore Issuer: Oman Refinery Company Closes: Jul 29, 2009 Engineering & Construction Support Services in Oman Country: Oman Category: Onshore Issuer: Oman Gas Company Closes: Aug 3, 2009 Small Volume Prover for Flowmeters with Required Accessories Country: Oman Category: Onshore
Issuer: Oman Refinery Company Closes: Aug 10, 2009 Supply of Fresh Catalyst And Additives ZSM - 5 Country: Oman Category: Onshore Issuer: Oman Refinery Company Closes: Aug 10, 2009 EPC for Five Major Projects at Sohar Refinery Country: Oman Category: Onshore Issuer: Oman Refinery Company Closes: Aug 10, 2009 Installation of New Service Water Line In Oman Country: Oman Category: Onshore Issuer: Oman Refinery Company Closes: Aug 17, 2009
Shah Gas Field - Development Country: United Arab Emirates Category: Onshore Issuer: ADNOC Closes: Dec 31, 2009 Shah Gas Field - Main Process Country: United Arab Emirates Category: Onshore Issuer: ADNOC Closes: Dec 31, 2009 Shah Gas Field - Offsite Package Country: United Arab Emirates Category: Onshore Issuer: ADNOC Closes: Dec 31, 2009 Shah Field - Utilities Package Country: United Arab Emirates Category: Onshore Issuer: (ADNOC) Closes: Dec 31, 2009
Jazan Refinery - Submission of Proposals Country: Saudi Arabia Category: Refining Issuer: Ministry of Petroleum and
Mineral Resources Closes: Sep 2, 2009
www.arabianoilandgas.com/ tenders/index/
To include your tenders in this section submit your entry through ArabianOilandGas.com
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August 2009 Oil&Gas Middle East
45
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
EPC Contractor
Budget ($M)
Status
Khuff Gas Production and Distribution Expansion
Bapco / NOGA
Consultant
Not Appointed
200
Concept
Redevelopment of Awali Onshore Oil Field
Bapco / National Oil and Gas Authority (NOGA)
Not Appointed
1000
Study
Lube Base Oil Project
Bapco / Neste
Jacobs Engineering
Samsung Engineering Company
325
Execution
Offshore Field Development
Bapco
Fugro Robertson Limited (UK)
Occidental Petroleum Corporation / PTT Exploration and Production (PTTEP)
2000
Execution
Status
Kuwait Project Title
Client
Consultant
EPC Contractor
Budget ($M)
Project Kuwait Scheme
KPC / KOC
Sproule Associates Limited (Canada)
Not Appointed
7000
FEED
Gas Pipeline From BS-131 to Mina Al Ahmadi
KOC
AMEC
Petrofac International
544
Execution
Crude Oil Manifold at GC 27
KOC
Not Appointed
30
EPC Bid
Gathering Centre 16 in West Kuwait
KOC
Fluor Corporation
Not Appointed
750
EPC Bid
Gathering Centre 24 at Sabriya
KOC
AMEC
SK Engineering & Construction
621
Execution
Repair and Replacement of Pipelines in Southeast Kuwait
KOC
Not Appointed
17
EPC Bid
Replacement of Oily & Effluent Water Lines at GC 23 and GC 25
KOC
Instruments Installation and Maintenance Co. (ImCo)
4
Execution
Effluent Water Injection Phase I & Sea Water Injection Phase II
KOC
Not Appointed
750
FEED
Water Effluent Transfer Pipelines
KOC
United Gulf Construction Company (UGCC)
35
Execution
Crude Oil Flow Pipelines in North Kuwait
KOC
Not Appointed
3
EPC Bid
Gas Compressor at GC 16 & Gas Reinjection at Minagish
KOC
Safwan Petroleum Technologies
67
Execution
Gas Pipeline between Booster Station 140 & GCMB Manifold
KOC
United Gulf Construction Company (UGCC)
7
Execution
LPG Filling Plant at Umm Alaish
KOTC
Not Appointed
100
FEED
Mina Al Ahmadi Refinery Upgrade - Phase 1
KNPC
Almeer Techical Services Company/ Flour Corporation
140
Execution
Upgrade of South Ghudair Gathering Centre
KOC / SAT
Arabi Enertech
27
Execution
Flowlines Upgradation & General Support Services
Saudi Arabian Texaco/ KGOC
Mushrif Trading
25
Execution
Maintenance Services for KOC
KOC
Petrofac, Kuwait
125
Execution
ESD Systems at Gathering Centres
KOC
Mushrif Trading Contracting Company, Kuwait
11
Execution Execution
AMEC, Kuwait
Fluor Corporation
Gas Booster Station 160
KOC
Snamprogetti Kuwait
649
Gathering Center 14 in the South East
KOC
AMEC
Almeer Technical Services
45
Execution
Jurassic Early Production Facility (EPF)
KOC
Not Appointed
400
EPC Bid
Chemical Handling Facilities in Kuwait
KOC
Not Appointed
50
EPC Bid
Drilling Service in Kuwait - Contract 4
KOC
Weatherford Oil Tools Middle East
80
Execution
Al Zour North Project - Pipeline Packages
Ministry of Energy
Not Appointed
136
EPC Bid
New Base Oil Plant at Shuaiba
KNLOC
Not Appointed
400
Study
Dry Crude Storage Tank at Gathering Centre 1
KOC
Bridge and Roof Company
9
Execution
Telemetry System in Southern Oil Fields
KOC
Tecnicas Reunidas
70
Execution
Status
NJS Consulting/Al Dowailah
OMAN Project Title
Client
EPC Contractor
Budget ($M)
Sohar Bitumen Refinery
Sohar Industrial Port Company (SIPC)
Mashael Group of Companies
200
Execution
Nimr C Full Field Water Injection Project
PDO
Al Hassan Engineering
65
Execution
Harweel Cluster Phase - 2
Petroleum Development Oman (PDO)
AMEC, Abu Dhabi
Petrofac International, Oman; Galfar Engineering & Contracting, Oman;
960
Execution
Enhanced Oil Recovery at Mukhaizna
Occidental Mukhaizna
MEG Worley Parsons
Dodsal
450
Execution
Mabrouk Field Project
PDO
Galfar/Integrated Engg. & Construction Co;
1,501 - 2,000
Execution
Asphalt Plant at the Sohar Refinery Complex
Sohar Refinery Company
Engineers India Ltd.
Not Appointed
80
FEED
Gas Compressor Station at the Nimr field
Oman Gas Company
Tecnicas Reunidas / Worley Parsons
Galfar Engineering & Contracting, Oman
36
Execution
Octal Petrochemical Project at Salalah Free Zone
Octal Holding
Uhde
National Construction & Trading Co. LLC (NCTC)
700
Execution
Kauther Gas Compression Project
PDO
Aromatics Complex in Sohar
AOL
Two New Gas Pipelines in the South of the Sultante Depletion-Compression Project at Saih Nihayda
Consultant
Petrofac International, Oman
350
Execution
LG International / GS Engineering & Construction
1200
Execution
PDO
Not Appointed
101 - 250
EPC Bid
Petroleum Development Oman (PDO)
Not Appointed
350
EPC Bid
Pipeline Between the Nimr Field and the Port City of Salalah
Oman Gas Company
Not Appointed
51
EPC Bid
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
www.arabianoilandgas.com
Jacobs Engineering / Axens
August 2009 Oil&Gas Middle East
47
PROJECTS Project Title
Client
Consultant
EPC Contractor
Budget ($M)
Status
Qarn Alam EOR Project - On-plot Package
PDO
MEG WorleyParsons
Dodsal
450
Execution
Methanol Plant in Salalah
Oman Oil Company (OCC) / UK GTL Resources / Mubadala Development Company, Oman / Vitol
Jacobs Engineering
GS Engineering & Construction
910
Execution
Olefins Complex at Sohar
Oman Petrochemical Industries Corporation; Oman Oil Company (OCC); Dow Chemicals;
Fluor Corporation, Oman
2300
On Hold
Saih Rawl Gas Depletion Project
PDO
Tecnicas Reunidas, Oman
545
Execution
Project Title
Client
Consultant
EPC Contractor
Budget ($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
Al-Shaheen Oil Refinery
Qatar Petroleum
Axens France
Not Appointed
5000
EPC Bid
Block 4 - North
Qatar Petroleum/Anadarko
Not Appointed
Wintershall, Germany
150
Execution
Sulphur Handling Facilities
Qatargas
Washington Group Int’l (WGI)
WGI/Al-Jaber Energy Services
360
Execution
Melamine Project at Mesaieed
Qatar Melamine Co.
Eurotecnica/Urea Casale
QECC
250
Execution
Petrochemical Complex at Ras Laffan
QP /ExxonMobil Corporation
Not Appointed
Subsea Pipelines Pkg. for Qatar Gas 3 & Qatar Gas 4
Qatar Petroleum (QP)
Bahwan Engineering Company (BEC)
QATAR
Not Appointed
3000
FEED Bid
J Ray McDermott, Dubai
100
Execution
Oryx GTL - Phase 2
QP/Sasol/Chevron
Not Appointed
1400
Study
Gas Pipeline Network within Ras Laffan Industrial City
Qatar Petroleum
Mott MacDonald Qatar
Larsen & Toubro, Qatar
123
Execution
Olefins Complex
QP/ Shell
Not Appointed
Not Appointed
2500
Study
602
Execution
Execution
Condensate Refinery at Ras Laffan
Laffan Refinery Company
Technip, Qatar
Daewoo Engineering & Construction, Qatar; GS Engineering & Construction, Qatar;
Pearl GTL Project - Pipelines Package
QP/Royal Dutch/Shell
JGC Corporation/Halliburton
J Ray McDermott
150
Q-Chem 2
Q-Chem
Aker Kvaerner
Daewoo Engineering & Construction, Qatar
700
Execution
Pearl GTL Project - Package C8
QP/Royal Dutch/Shell
JGC Corporation/Halliburton
Veolia/Saipem/Al Jaber
101 - 250
Execution
Pearl GTL Project - Storage Tanks Package
QP/Royal Dutch/Shell
JGC Corporation/Halliburton
CB&I
400
Execution
QVC Expansion Project
QVC
Not Appointed
Not Appointed
31 -100
Study
Ras Laffan-Mesaieed Ethylene Pipeline
Q Chem ll / Ras Laffan Olefins Co.
Punj Lloyd
45
Execution
Methanol Capacity Expansion at Mesaieed
Qafac
Mustang Tampa
Not Appointed
501 - 750
FEED
Gas to Liquids Project-3 (Pearl GTL)
QP/Royal Dutch/Shell
JGC Corporation/Halliburton
Consolidated Contractors International Company (CCC)
16000
Execution
Low Density Polyethylene Unit at Mesaieed
Qapco
Uhde
Uhde
410
Execution
Al Shaheen Project - Packages 17 & 18
Maersk Oil Qatar
NPCC
600
Execution
HFO Bunkering Project
Qatar Petroleum
Maritime Industrial Services
60
Execution
LLDPE Plant in Mesaieed - Main Plant
Qatofin
Snamprogetti
250
Execution
Al Khaleej Gas Development Phase 2 - Onshore Package
Exxon Mobil/ Ras Gas
Chiyoda
Chiyoda/Technip
1600
Execution
Plateau Maintenance Project
Qatargas
Technip, Qatar
1200
EPC Bid
Al Shaheen Project - Package 13
Maersk Oil Qatar
J Ray McDermott
185
Execution
Two New Glycol Regeneration Trains in Dukhan
Qatar Petroleum
Worley Parsons
Not Appointed
101 - 250
EPC Bid
Ras Gas 3 - Trains 6 & 7
Rasgas 2
Chiyoda Foster Wheeler
Chiyoda/Technip
13000
Execution
Qafco 5
Qafco
Not Appointed
Snamprogetti / Hyundai Engineering & Construction Co;
3200
Execution
"$ #
$
! " "
48
Oil&Gas Middle East August 2009
www.arabianoilandgas.com
PROJECTS Project Title
Client
Consultant
EPC Contractor
Budget ($M)
Status
Al Shaheen Project - Package 12
Maersk Oil Qatar
Qatar Engineering & Construction Company
100
Execution
Headworks for Muaither RPS and Associated Pipelines
Qatar General Electricity & Water Corporation (Kahramaa)
Al Waha Contracting
109
Execution
Ethane Cracker cum Aromatics Complex at Mesaieed
QP/Honam
Foster Wheeler
Not Appointed
3000
EPC Bid
Common Sulphur Project
DEL
Washington Group International
Not Appointed
101 - 250
EPC Bid
Pearl GTL Project - Wellhead Platforms Package
QP/Royal Dutch/Shell
JGC Corporation/Halliburton
J Ray McDermott
300
Execution
Al Khaleej Gas Development Phase 2 - Offshore Package
ExxonMobil Corporation; RasGas Company limited (Ras Laffan Liquefied Natural Gas Company );
Chiyoda Corporation, Qatar
J Ray McDermott, Qatar
300
Execution
Gas Sweetening Facilities Integrated Project at Mesaieed
Qatar Petroleum
Worley Parsons
Not Appointed
200
EPC Bid
Doha Urban Pipeline Relocation Project
Qatar Petroleum
Tebodin
Punj Lloyd
181
Execution
Pearl GTL Project - Package C2
QP/Royal Dutch/Shell
JGC Corporation/Halliburton
Linde
900
Execution
SAUDI Project Title
Client
Consultant
EPC Contractor
Budget ($M)
Status
Marjan, Zuluf and Safaniya Oil Fields Upgrade
Saudi Aramco
WorleyParsons
J Ray McDermott
250
Execution
South Rub Al Khali Gas Development
SRAK
KCA Deutag Drilling
2000
Execution
5 Sulfur Recovery Units in Uthmaniyah & Shedgum
Saudi Aramco
Imad Company for Trading & Contracting
150
Execution
Kayan Petrochemicals Complex at Jubail - Storage Tanks Package
Saudi Kayan Petrochemical Company
Fluor Arabia Ltd.
Dayim Punj Lloyd Construction Contracting Co. Ltd.
79
Execution
Sasref Refinery - Ultra-low Sulphur Diesel Complex
Sasref
ABB Lummus Global
ABB Lummus Global
350
Execution
Production Facilities Exp. at Hout Field in DZ
Al Khafji Joint Operations
Toyo Engineering
SNC Lavalin / SaudConsult / Nesma & Partners Contracting Company
200
Execution
Onshore Maintenance Potential Project
Saudi Aramco
RHM/CAT/Suedrohrbau
300
Execution
Sasref Refinery - Control Systems Upgrade
Sasref
Petrocon Arabia / Yokogawa Middle East
100
Execution
Biaxially Oriented Polypropylene Plant (BOPP) in Dammam
Rowad National Plastics Co.
DMT Technology Holding
53
Execution
Yanbu Gas Plant Expansion
Saudi Aramco
Enppi
180
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
Ras Tanura Refinery
Saudi Aramco
WorleyParsons
WorleyParsons
8000
Execution
www.arabianoilandgas.com
Jacobs Engineering Inc.
August 2009 Oil&Gas Middle East
49
PROJECTS Project Title
Client
Consultant
EPC Contractor
Budget ($M)
Status
Sharq Petrochemicals Complex -Ethane/propane cracker
Sharq
China Technical Consultants Incorporate(CTCI); Shaw InternationalSaudi Arabia;
Shaw International / China Technical Consultants Incorporate(CTCI);
1000
Execution
Hawiyah Plant Expansion
Saudi Aramco
Jacobs Engineering Inc.
Shedgum - Yanbu NGL Line Expansion - Phase 2
Saudi Aramco Foster Wheeler
Tecnicas Reunidas
400
Execution
Suedrohrbau
200
Execution Execution
Ras Tanura Refinery - DHT Unit
Saudi Aramco
Samsung Saudi Arabia Ltd.
500
Refining & Integrated Petrochemicals Complex
Nama
Not Appointed
10
Study
Ebgaig - Al Khobar Natural Gas Pipeline
SWCC
Not Appointed
100
FEED
Ethylene Amines Project At Jubail
Arabian Amines Company
Jacobs Engineering / Burns & McDonnell Engineering
Hyundai E&CC / Hanwha E & C
300
Execution
Jubail - 2 Export Refinery - Aromatics Plant
Saudi Aramco / Total
Axens
Samsung Saudi Arabia Ltd.
650
Execution
Jubail-2 Export Refinery - Coker Unit Package
Saudi Aramco / Total
Foster Wheeler
Samsung Saudi Arabia Ltd / Chiyoda Corporation
850
Execution
Jubail Acetyle Complex - Acetic Acid and Acetic Anhydride
Sipchem
Eastman Chemical
Fluor Corporation
600
Execution EPC Bid
Dhahran Pipe Upgrade
Saudi Aramco
Not Appointed
200
Jubail Petrochemical Complex - Phase 3
Sipchem
Not Appointed
8000
EPC Bid
Petrochemicals Complex in Yanbu
Saudi Aramco / Sabic
Not Appointed
Not Appointed
3000
Study
Karan Field Exploration - Onshore Elements Package - Gas Facilities
Saudi Aramco
Foster Wheeler /A. Al Saihati , A. Fattani & Al Othman Consulting Engineering Company (Sofcon)
Hyundai Engineering & Construction Company (HDEC)/ Petrofac
600
Execution
Rabigh Refinery Expansion - Phase 2
Petro-Rabigh / Saudi Aramco / Sumitomo Corporation
JGC Corporation
Not Appointed
4000
EPC Bid FEED
Ammonia Plant In Jubail
Sipchem
Haldor Topsoe
Not Appointed
10
SRU in Khursaniyah Gas Plant
Saudi Aramco
Jacobs Engineering Group Inc.
Snamprogetti / Imad Company for Trading & Contracting
150
Execution
Shaybah Field Expansion - Phase 2 - Package 1
Saudi Aramco
Jacobs/SNC Lavalin/SaudConsult
SNC Lavalin
700
Execution
Jubail-2 Export Refinery - Storage Tank Package
Saudi Aramco / Total
Technip, Saudi Arabia
Punj LIoyd Ltd / Petro Steel
800
Execution
Karan Field Exploration - Offshore Elements Package
Saudi Aramco
Petrocon Arabia, Saudi Arabia
J Ray McDermott
500
Execution
Fertiliser Complex Expansion at Jubail - Urea & Ammonia Plant
Saudi Arabian Fertilizer Company (Safco)
Not Appointed
150
EPC Bid
Wafra Steam Injection - Phase 2
Chevron / Saudi Aramco
Saudi Arabian Texaco INC
500
Execution
Jubail - 2 Export Refinery - Plant Utilities Package
Saudi Aramco / Total
Technip
SK Engineering & Construction
150
Execution
Manifa Oil Field Redevelopment - Onshore Package
Saudi Aramco
Foster Wheeler
JGC Corporation / TR / Snamprogetti
2500
Execution
Manifa Oil Field Redevelopment - Platforms Package
Saudi Aramco
J Ray McDermott, Saudi Arabia
800
Execution
Ras Tanura Petrochemicals Complex
Saudi Aramco / Dow
Not Appointed
17000
FEED
ASU at Jubail
National Industrial Gas Company (GAS)
Not Appointed
100
EPC Bid
Petrokemya - 4 in Jubail
Petrokemya
Not Appointed
10
FEED
Upgrade of the Oil Refinery at Yanbu
Saudi Aramco Mobil Refinery Company Ltd. (Samref)
Worley Parsons, Saudi Arabia
2000
Execution
Sasref Refinery Expansion
Sasref
Not Appointed
275
FEED
Kellogg Brown & Root
Technip / Aker Kvaerner
ABB Lummus Global
UNITED ARAB EMIRATES Project Title
Client
Consultant
EPC Contractor
Budget ($M)
Status
Replacement of Oil & Water Pipelines
Adma - Opco
Technip / Worley Parsons, Abu Dhabi
Costain
900
Execution
Adnoc Storage Facility in Hamriyah Free Zone
Takreer
Not Appointed
75
EPC Bid
Borouge Complex Expansion - Phase 2: Offsites and Utililies
AUH Polymers Company
Foster Wheeler
Technicas Reunidas
1230
Execution
Hail Field Development
ADCO / Gasco
Not Appointed
Not Appointed
749
Study
Crude Oil Pipeline Replacement
Zadco
Not Appointed
100
EPC Bid
OGD-3/ AGD-2 - Pack 2
GASCO
Bechtel
Bechtel
1460
Execution
OGD-3/ AGD-2 - Pack 4
GASCO
Bechtel
Snamprogetti
1420
Execution
Green Diesel Project in Ruwais
Takreer
Wood Group Mustang
GS Engineering & Construction
350
Execution
Umm Shaif Gas Injection Facilities
Adma - Opco
WorleyParsons
Hyundai Heavy Industries
1597
Execution
Modifications to 41 Well Head Towers
Adma - Opco
WorleyParsons
Not Appointed
150
EPC Bid
Zakum West Gas Processing Facilities Project
Adma - Opco
Technip-Coflexip
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
700
Execution
Gas Processing Facility in UAQ
Gulf Energy Company
Technip/Kvaerner
Not Appointed
120
EPC Bid
Umm al Dalkh Full Field Development
Zadco
Not Appointed
Not Appointed
650
Study
Sahil Phase-2 Development
ADCO
Foster Wheeler
Tecnicas Reunidas / CCC
250
Execution
Onshore and offshore Sour Gas Development
ADNOC / ConocoPhilips;
Fluor Corporation
Not Appointed
10000
EPC Bid
Integrated Gas Development (IGD) - 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
Not Appointed
450
EPC Bid
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/NPCC
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
Habshan Gas Complex Expansion
GASCO
Fluor Corporation
1000
Execution
Taweelah-Qidfa Gas Pipeline
DEL
Stroytransgaz, Abu Dhabi
418
EPC Bid
50
Oil&Gas Middle East August 2009
Bechtel, Abu Dhabi
www.arabianoilandgas.com
PROJECTS Project Title
Client
Consultant
EPC Contractor
Budget ($M)
Status
Asab Gas Development (AGD) Modifications - Package 1
GASCO
Fluor Corporation
Not Appointed
500
EPC Bid
Jebel Dhanna Crude Oil Storage Tanks
Adco
ILF Consulting
Not Appointed
100
EPC Bid
LNG Storage Hub in Techno Park, Dubai
DMCC / Techno Park / LNG Impel
Not Appointed
2000
FEED
Umm Al Lulu Oil Field Development
Zadco
Tebodin Middle East, Abu Dhabi
Not Appointed
1500
EPC Bid
New Refinery in Fujairah
AGOL
Mott MacDonald
Not Appointed
1000
Study
Borouge Complex Expansion - Phase 3: PDH & Phenolics Complex
AUH Polymers Company
Not Appointed
Not Appointed
1000
Study
Abu Dhabi Gas Grid
ADNOC Distribution
Terasen Int’l/ Lootah BC Gas
Not Appointed
1000
Pre FEED Bid
Zirku Production Facilities Debottlenecking
Zadco
Not Appointed
Not Appointed
450
EPC Bid
Upper Zakum - Fujairah Oil Pipeline
IPIC/Conoco Phillips
WorleyParsons
China Petroleum Construction Corporation
200
Execution
Urea Production Unit Debottlenecking
Fertil
Mitsubishi Heavy Industries Middle East, Dubai; Uhde Fertilizer Technology; Urea Casale;
Descon Engineering, Abu Dhabi
180
Execution
Tank Terminals in Fujairah
Emarat
Penspen International
Not Appointed
22
EPC Bid
Khubai-Margham Gas Pipeline
Margham Dubai Est.
Parsons Brinkerhoff
Not Appointed
30
FEED
Integrity Enhancement of Fire Protection Sytem 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
Not Appointed
250
Design Execution
Expansion of Sulphur Handling Facility in Ruwais
Takreer
Washington Group Int’l
Dodsal
272
Cathodic Protection on Wellhead Casing in Bab and Ruwais Fields
ADCO
ILF Consulting Engineers, Abu Dhabi
EMDAD LLC, Abu Dhabi; Alsa Engineering;
27
Execution
Gas Exploration Facilities - Kahaif, Moveyid and Sajaa
BP Exploration Operating Co Ltd(BP Sharjah)
AMEC, Abu Dhabi
Not Appointed
500
FEED
Expansion of Ruwais Refinery - Package 1
Takreer
Foster Wheeler, Abu Dhabi
Not Appointed
400
EPC Bid
Crude Oil Storage Tanks at Umm al-Nar Refinery
Takreer
Engineers India Ltd
Al Hussam General Contracting
33
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
400
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
12000
Concept stage
www.arabianoilandgas.com
August 2009 Oil&Gas Middle East
51
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
Diamond Offshore
Jackup
Drilling
MidEast - Red Sea
Ocean Heritage
Diamond Offshore
Jackup
Drilling
MidEast - Red Sea
Ocean Spur
Egyptian Drilling
Platform Rig
Ready Stacked
MidEast - Red Sea
EDC 21
Egyptian Drilling
Platform Rig
Workover
MidEast - Red Sea
EDC 34
Egyptian Drilling
Jackup
Drilling
MidEast - Red Sea
Kamose
Egyptian Drilling
Jackup
Drilling
MidEast - Red Sea
Senusret
Egyptian Drilling
Jackup
Modification
MidEast - Red Sea
Zoser
KS Energy Services Ltd.
Jackup
Ready Stacked
MidEast - Red Sea
Bennevis
Maersk Drilling
Jackup
Drilling
MidEast - Red Sea
Maersk Endurer
Saipem
Jackup
Workover
MidEast - Red Sea
Perro Negro 4
Transocean Inc.
Jackup
Drilling
MidEast - Red Sea
GSF Adriatic X
Transocean Inc.
Jackup
Ready Stacked
MidEast - Red Sea
GSF Key Manhattan
Transocean Inc.
Jackup
Ready Stacked
MidEast - Red Sea
GSF Rig 103
Transocean Inc.
Jackup
Drilling
MidEast - Red Sea
GSF Rig 105
Transocean Inc.
Jackup
Drilling
MidEast - Red Sea
GSF Rig 141
Transocean Inc.
Jackup
Ready Stacked
MidEast - Red Sea
Interocean III
Transocean Inc.
Jackup
Drilling
MidEast - Red Sea
Transocean Comet
Transocean Inc.
Jackup
Drilling
MidEast - Red Sea
Transocean Mercury
PERSIAN GULF 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
Aban Offshore
Jackup
Drilling
MidEast - Persian Gulf
Aban VIII
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 8
BassDrill Ltd.
Tender
Under Construction
MidEast - Persian Gulf
BassDrill Tender TBN 1
BassDrill Ltd.
Tender
Under Construction
MidEast - Persian Gulf
BassDrill Tender TBN 2
China Oilfield Services Ltd.
Jackup
Drilling
MidEast - Persian Gulf
COSLPower
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
Delta Offshore Rig Logistics Limited
Semisub
Modification
MidEast - Persian Gulf
Viner 1
ENSCO
Jackup
Ready Stacked
MidEast - Persian Gulf
ENSCO 50
ENSCO
Jackup
Drilling
MidEast - Persian Gulf
ENSCO 54
ENSCO
Jackup
Drilling
MidEast - Persian Gulf
ENSCO 76
ENSCO
Jackup
Drilling
MidEast - Persian Gulf
ENSCO 84
ENSCO
Jackup
Modification
MidEast - Persian Gulf
ENSCO 88
ENSCO
Jackup
Drilling
MidEast - Persian Gulf
ENSCO 94
ENSCO
Jackup
Drilling
MidEast - Persian Gulf
ENSCO 95
ENSCO
Jackup
Ready Stacked
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
GSP
Jackup
Drilling
MidEast - Persian Gulf
Atlas
GSP
Jackup
Drilling
MidEast - Persian Gulf
Orizont
Gulf Drilling International
Jackup
Drilling
MidEast - Persian Gulf
Al Doha
Gulf Drilling International
Jackup
Waiting on Loc
MidEast - Persian Gulf
Al Khor
Gulf Drilling International
Jackup
Drilling
MidEast - Persian Gulf
Al Zubarah
Gulf Drilling International
Jackup
Waiting on Loc
MidEast - Persian Gulf
GULF-2
Gulf Drilling International
Jackup
Drilling
MidEast - Persian Gulf
GULF-3
52
Oil&Gas Middle East August 2009
www.arabianoilandgas.com
RIG STATISTICS
Manager
Rig Type
Current Status
Current Region
Rig Name
Hercules Offshore
Jackup
Drilling
MidEast - Persian Gulf
Hercules 170
Hercules Offshore
Jackup
Drilling
MidEast - Persian Gulf
Hercules 261
Hercules Offshore
Jackup
Drilling
MidEast - Persian Gulf
Hercules 262
Hercules Offshore
Jackup
Under Construction
MidEast - Persian Gulf
MEJU Jackup TBN 1
Hercules Offshore
Jackup
Under Construction
MidEast - Persian Gulf
MEJU Jackup TBN 2
Japan Drilling
Jackup
Drilling
MidEast - Persian Gulf
Sagadril 1
Japan Drilling
Jackup
Drilling
MidEast - Persian Gulf
Sagadril 2
KS Energy Services Ltd.
Jackup
Under Construction
MidEast - Persian Gulf
KS Endeavour
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
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
Modification
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
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©2009 COADE, Inc. All Rights Reserved. COADE, CADWorx, CAESAR II, TANK and PV Elite are registered trademarks or trademarks of COADE, Inc.
www.arabianoilandgas.com
August 2009 Oil&Gas Middle East
53
RIG STATISTICS
Manager
Rig Type
Current Status
Current Region
Rig Name
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
NIDC
Jackup
Under Construction
MidEast - Persian Gulf
NIDC Jackup TBN 1
NIDC
Jackup
Under Construction
MidEast - Persian Gulf
NIDC Jackup TBN 2
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
Drilling
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
Ready Stacked
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
Modification
MidEast - Persian Gulf
Noble Roy Rhodes
Odebrecht
Semisub
Under Construction
MidEast - Persian Gulf
Norbe VI
Pride International
Jackup
Drilling
MidEast - Persian Gulf
Pride Montana
Pride International
Jackup
Drilling
MidEast - Persian Gulf
Pride North Dakota
Queiroz Galvao Perfuracioes
Semisub
Under Construction
MidEast - Persian Gulf
Lone Star
Rig Manager Undisclosed
Jackup
Cold Stacked
MidEast - Persian Gulf
KS Venture
Riginvest GP
Jackup
Under Construction
MidEast - Persian Gulf
Riginvest Jackup TBN 1
Rowan
Jackup
Drilling
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
Ready Stacked
MidEast - Persian Gulf
Rowan Middletown
Rowan
Jackup
Drilling
MidEast - Persian Gulf
Rowan Paris
Rowan
Jackup
Drilling
MidEast - Persian Gulf
Scooter Yeargain
Royal Oyster Group
Jackup
Under Construction
MidEast - Persian Gulf
Thule Energy
Royal Oyster Group
Jackup
Under Construction
MidEast - Persian Gulf
Thule Force
Royal Oyster Group
Jackup
Modification
MidEast - Persian Gulf
Thule Power
Saipem
Jackup
Ready Stacked
MidEast - Persian Gulf
Perro Negro 2
Saipem
Jackup
Workover
MidEast - Persian Gulf
Perro Negro 5
Saipem
Jackup
Drilling
MidEast - Persian Gulf
Perro Negro 7
Saudi Aramco (NOC)
Jackup
Modification
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
SeaWolf Oil Services Limited
Jackup
Ready Stacked
MidEast - Persian Gulf
SeaWolf Onome
SeaWolf Oil Services Limited
Jackup
Ready Stacked
MidEast - Persian Gulf
SeaWolf Oritsetimeyin
Transocean Inc.
Jackup
Drilling
MidEast - Persian Gulf
GSF High Island II
Transocean Inc.
Jackup
Drilling
MidEast - Persian Gulf
GSF High Island IV
Transocean Inc.
Jackup
Drilling
MidEast - Persian Gulf
GSF Key Hawaii
Transocean Inc.
Jackup
Drilling
MidEast - Persian Gulf
GSF Main Pass I
Transocean Inc.
Jackup
Drilling
MidEast - Persian Gulf
GSF Main Pass IV
Transocean Inc.
Jackup
Cold Stacked
MidEast - Persian Gulf
GSF Rig 127
54
Oil&Gas Middle East August 2009
www.arabianoilandgas.com
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P.O. Box 2752, Dubai, U.A.E Tel: +971 (4) 3472646 Fax: +971 (4) 3472148
www.arabianbusiness.com/energy
August 2009 Oil&Gas Middle East
55
FACE TO FACE
FACETOFACE
Kurt Glaubitz, upstream relations team leader, Chevron
Chevron: Steamflooding the neutral zone What is Chevron’s regional presence today? We are the only international oil company operating in the partitioned neutral zone (PNZ) between Saudi Arabia and Kuwait, and the exciting news is that we’ve just extended our concession for another 30 years, to 2019. We’ve had a concession there for over 60 years. Chevron has a long history in the region, dating back to the 1930s when we first discovered oil in Dammam at Well No 7. We also, through our predecessor company, discovered the Burgan field in Kuwait, and the Ghwar field in Saudi Arabia. What are you doing in the Partitioned Neutral Zone? We’re producing around 250 000 barrels of oil there each day and, through the steamflooding technology we are deploying, we are looking to enhance the production of heavy oil. We have completed the first part of a pilot project last year. Now we are moving to 25 wells. Additionally, we are looking to boost production at Wafra field. The tests will take about three years, and if that’s successful we anticipate that it has the potential to be applied to other carbonate reservoirs in the Middle East. We’ve been using this technology for four decades in California and for two decades in Indonesia.
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Oil&Gas Middle East August 2009
What does steamflooding technology entail? It involves super-heated steam being injected into the reservoir to boost production. This has been very successful in sandstone reservoirs and, this is our first go with a carbonate reservoir. Our
Are you engaged anywhere outside KSA and the PNZ? We have a presence in Qatar which includes a marketing arrangement with the GTL ORYX facility. We have just inaugurated an energy efficiency centre at the Qatar Science and Engineering Park,
“In the Middle East alone our direct employees run to several thousands, and around 90% of those are Gulf Nationals” Kurt Glaubitz initial results are really very good. In California we’ve actually been able to eliminate decline, so we are confident it has the potential to increase production. Do you manage a healthy ration of local employees? In the Middle East our direct employees run to several thousand, and around 90% of those are Gulf Nationals. We have a very strong commitment to employing local employees wherever we do business. Around 90% are Saudi Nationals, and that includes a significant portion of the management structure there too. For many year’s we’ve run a successful training exchange programme with our Houston office which helps.
which represents a $20 million commitment over five years looking at energy efficiency solutions for the Middle East climate, including solar technology. Also, Chevron has downstream operations throughout the region, including aviation services. Our primary focus on exploration and production is going to be in the Partitioned Neutral Zone, but we are also looking at new opportunities more broadly. What opportunities are most exciting at the moment? Iraq is particularly exciting. We are very interested in participating there, but clearly the terms and conditions have to be right. We were prequalified for two of the
bid rounds. The first two were for brownfield production boosting at exisiting facilities. Iraq is interesting for us because we already have a programme, which has been running for five years, to train Iraqi engineers and scientists. Most of that training takes place in the US, and we have trained about a thousand engineers already, so that has really been quite successful. Why would an national oil company partner with Chevron? Our long history in the region means we are very familiar with the business landscape. There are three core parts to the offering we bring to deals with national oil companies. Project management skills – and that’s notable because there are over 40 ongoing projects in which Chevron has a net $1 billion-plus interest, in terms of capital committed. Also, there is the technology we bring and that’s across the whole deepwater, LNG, and EOR and heavy oil spectrum. Thirdly, there’s the capital we can bring. We have a $23 billion capital programme this year, which is unchanged from previous years. We understand the need to invest for the long term, whilst acknowledging the fact that demand is down at the moment. As economies of the world rebound we want to make sure that there is supply and ways to meet that demand.
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