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AWARDS: WE REVEAL THE SHORTLISTED NOMINATIONS FOR 2017 @ArabianOilGas

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

arabianoilandgas

September 2017 • Vol. 13 • Issue 09

THE APP • DO OAD W NL

THE APP • DO OAD W NL

THE APP • DO W OAD NL

THE APP • DO OAD W NL

The inaugural edition of a new annual rankings feature by O&GME that endeavours to recognise and reflect the portfolio and work of companies operating in the crucial domain of oilfield services in the MENA region

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CONTENTS

LAUNCH ISSUE

29 SEPTEMBER 2017 / Volume 13 Issue 09

Highlights in this issue:

10

12

29

49

Data In Numbers

News round-up

Special Report

The MENA region will see a number of critical energy projects pushed through in 2017, despite uncertainties that cloud the investment outlook, acccording to APICORP Energy Research.

ADNOC’s decision to gear up for the renewal of the ADMA-OPCO concession in March next year, is our top story of the month. The offshore acreage will be split into two or more concessions.

Top 30 Oilfield Services Companies list

AWARDS: arabianoilandgas.com

We are delighted to introduce this new annual rankings coverage to evaluate and acknowledge the performance of oilfield services providers.

The Report on skills, training and certification presents an overview of the aspects concerning one of the most vital domains of the oil and gas industry - talent acquisition and development.

After the conclusion of the nominations period, that spanned nearly three months, we are proud to say that the number of entries O&GME and R&PME Awards 2017 have risen by a third this year / P22 SEPTEMBER 2017

3

CONTENTS

Also inside:

10

12

14

06 / Editor’s letter Indrajit Sen shares his thoughts on an industry development.

10 / In Numbers APICORP estimates Saudi Arabia will lead the Gulf in investing in the energy value chain.

18

22

12 / News update The top news stories from the regional industry.

14 / Around the Gulf A snapshot of major news from around the Gulf region.

18 / Comment

4

Upstream companies should use benchmarking to identify effective ways and best practices to improve performance.

22 / Awards coverage

KEEP UP-TO-DATE For all the latest news, check out www.arabianoil andgas.com

Online

A few of the sponsors of the O&GME and R&PME Awards 2017 open up about the event.

EPC CONTRACTORS

29/ On the cover: Top 30 Oilfield Services Companies rankings

Editor’s choice: www.arabianoilandgas.com • Oil & Gas Middle East Top 30 EPC Contractors list 2017 • Oil & Gas Middle East Power 50 2017 list • Video: Interview with Norm Gilsdorf of Honeywell • Video: Quick chat with Rory O’Donnell of SNC-Lavalin

Find out which are the 30 leading companies that have made it to the inaugural list this year.

49 / Special Report: Skills and training

49

The regional oil and gas industry is leaving no stone unturned in attracting the best of local talent.

App

60 / Project listings

DOWNLOAD IT TODAY ON YOUR iOS, ANDROID OR KINDLE

An exhaustive list of projects information by DMS Projects.

66 / Five Minutes With...

Helena Seelinger of NACE International Institute.

SEPTEMBER 2017

60

66 arabianoilandgas.com

EDITOR’S LETTER

M&A decoded: United we stand,

divided we fall Oil and gas players seem to be convinced that business rivalry is not prudent in the prevailing era of challenging oil prices

C

6

ompetition can thrive in a business environment where conditions are conducive. When circumstances are as daunting as in present times, rivalry has to be replaced THIS ISSUE: with synergies for the very susWe have responded tenance of the industry. to the need for Thus far, since stakeholders recognising the work of oilfield services started feeling the discomfort players by introducof doing business with the ing a new power list onset of the downturn in early (starts from p29).

2015, it was mostly players in the oilfield services and EPC domains that were compelled to consider mergers and acquisitions (M&A) as a way to remain competitive.

Now it seems that E&P companies, who form the highest echelon of the oil and gas industry, too are now finding it wise to sustain themselves by collaborating – with two of the global majors recently throwing themselves into the rising tide of M&A. French energy giant Total last month announced it had signed a deal worth $7.45bn to acquire the oil and gas division of Danish business conglomerate Maersk.

Total expects its acquisition of Maersk Oil, set to be completed in the first quarter of 2018, to strengthen its operations in the North Sea and raise its output to 3mn barrels per day by 2019.

Total also hopes its biggest conquest, since it acquired Elf in 2000, to generate financial synergies of more than $400mn per year, in particular by combining assets in the North Sea, as well as in other key regions like MENA. It also said the acquisition would boost earnings and cash flow.

While on one hand the landmark merger between Total and Maersk Oil can signal the start of many more such mega M&A transactions in the E&P sphere, collaborations between major players in the other domains continue unabated.

Jacobs Engineering Group Inc and CH2M Hill Companies Ltd, both American engineering firms that have and continue to perform EPC work for key regional oil and gas projects, also announced last month that they have entered into a definitive agreement under which Jacobs will acquire all of the outstanding shares of CH2M in a transaction worth circa $3.27bn.

Going by these two jumbo M&A deals in August 2017, it would be safe to assume that more such major consolidations are on the cards.

Now on to news that I am longing to share. We have received a record number of nominations for the Oil & Gas and Refining & Petrochemicals Middle East Awards 2017. We are also delighted to reveal (on page 26-27) the shortlisted entries for the awards this year. So a big ‘thank you’ to one and all!

Indrajit Sen Deputy Editor, Oil & Gas Middle East indrajit.sen@itp.com Mergers and acquisitions in the Middle East and North Africa

To subscribe to Oil & Gas Middle East, or other ITP SUBSCRIBE Business titles, go to: www.itp.com/subscriptions.

SEPTEMBER 2017

PO Box 500024, Dubai, UAE Tel: 00 971 4 444 3000 Web: www.itp.com Offices in Abu Dhabi, Dubai, London & Mumbai ITP Media Group CEO: Ali Akawi Executive Director: Matthew Southwell Group Editorial Director: Greg Wilson Group Publishing Director: Ian Stokes Editorial Editorial Director: Robert Willock Tel: +971 4444 3357 email: robert.willock@itp.com Deputy Editor: Indrajit Sen Tel: +971 4444 3264 email: indrajit.sen@itp.com Advertising Sales Manager: Kimberley Barnes Tel: +971 4444 3351 email: kimberley.barnes@itp.com ITP Digital Advertising Director: Riad Raad Tel: +971 4 444 3319, email: riad.raad@itp.com ITP Live General Manager: Ahmad Bashour Tel: +971 4 444 3549 email: ahmad.bashour@itp.com Studio Head of Design: Genaro Santos Photography Director of Photography: Patrick Littlejohn Senior Photographers: Rajesh Raghav, Efraim Evidor, Richard Hall, Ethan Mann Staff Photographers: Lester Apuntar, Aasiya Jagadeesh, Ausra Osipaviciute, Grace Guino, Fritz Asuro, Sharon Haridas, Ajith Narendra Production & Distribution Group Production & Distribution Director: Kyle Smith Production Manager: Basel Al Kassem Outsource Manager: Aamar Shawwa Production Coordinator: Mahendra Pawar Senior Image Editor: Emmalyn Robles Circulation Director of Conferences, Circulation & Data: Michael McGill Senior Circulation Manager: Manoj Chaudhary Circulation Executive: Loreta Regencia Marketing Director of Awards & Marketing: Daniel Fewtrell Events Manager, Business Events: Sophie McHugh ITP Group Chairman: Andrew Neil CEO: Ali Akawi CFO: Toby Jay Spencer-Davies Director: Walid Akawi 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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IN NUMBERS

Cautious optimism in energy investments

TOTAL PLANNED AND COMMITTED MENA ENERGY INVESTMENT 2017-21 ($BN)

The MENA region will see a number of critical energy projects pushed through in 2017, according to APICORP Energy Research

T

he Middle East and North Africa (MENA) region will see a number of critical energy projects pushed through in 2017, despite uncertainties that cloud the investment outlook. While $337bn has already been committed to projects under execution, an additional $622bn-worth of development has been 10 planned for the next five years.

Leading the drive will be Saudi Arabia, which – along with the rest of the GCC – will invest across the energy value chain. Iraq and Iran will play catch-up and are determined to push their ambitious oil and gas plans. Investments in Iran are starting to flow back after years of sanctions, but there will be many above-ground challenges.

In North Africa, Algeria has vowed to pump billions into its upstream sector. Much is also expected in Egypt, as recent gas finds promise to meet rapidly rising power demand. But there will be many challenges as low oil prices, the uncertain economic outlook, regional instability and conflicts all have an impact on planned investments.

The power sector accounts for the largest share of investments, at $207bn. The oil and gas sector will represent $195bn and $159bn respectively, with the remaining investments in petrochemicals.

Projects under study represent by far the largest portion of planned investments, at $282bn. But, given the current investment climate and uncertain outlook, APICORP does not anticipate that all projects in this phase will actually move to the execution phase. In its view, contracts at the design and EPC phases are more likely to materialise in the medium-term. Projects at the EPC phase amount to $125bn, while those at design reach $78bn.

SEPTEMBER 2017

COMMITTED MENA ENERGY INVESTMENT 2017-21 ($BN)

CHANGE IN INVESTMENT OUTLOOK

2016-2020 2017-2021 % Change

Committed 289 337 17%

Planned 611 622 2%

Total 900 960 7%

SOURCE: APICORP RESEARCH arabianoilandgas.com

IN NUMBERS

BRENT PRICE – HISTORIC ($/B)

11

PLANNED MENA ENERGY INVESTMENT 2017-21 ($BN)

arabianoilandgas.com

COMMITTED MENA ENERGY INVESTMENT

BY SECTOR (%)

SEPTEMBER 2017

NEWS

Coming up: /13 /14 /14 /14 /15

ADMA-OPCO concession renewal under discussion The offshore acreage operated by ADNOC Group company ADMA-OPCO, which is up for renewal in March 2018, will be split to unlock greater value

12

EXISTING SHAREHOLDERS:

The existing shareholders in ADMA-OPCO are BP (14.67%), Total (13.33%), and JODCO (12%), with ADNOC retaining the majority 60% stake.

I

n yet another major announcement, the Abu Dhabi National Oil Company (ADNOC) has revealed it is in “advanced discussions” with more than a dozen potential partners that have expressed an interest in the offshore concession that is currently operated by ADNOC subsidiary, the Abu Dhabi Marine Operating Company (ADMA-OPCO), which expires next March.

The potential partners include existing concession holders in ADNOC’s offshore fields, as well as new participants, according to the

Emirati oil giant. ADNOC also said that the existing asset would be split into two or more concessions with new terms to unlock greater value and increase partnership opportunities.

The concession comprises the Lower Zakum field, Umm Shaif, Nasr, Umm Lulu, and Satah Al Razboot (SARB) oilfields. ADNOC, on behalf of the Abu Dhabi government, will retain a 60% shareholding in the new concession areas.

Dr Sultan Ahmed Al Jaber, UAE Minister of State and group CEO

Jacobs acquires CH2M News from around the Gulf TAQA starts Kurdistan output Brent crude oil prices Ras Al Khair contract awarded

of ADNOC said: “As part of ADNOC’s new partnership approach, we look forward to working with partners who will bring new and innovative thinking to the table. Partners who can demonstrate tangible value-add to our operations through technology, expertise, long-term capital, and market access, as well as a shared commitment to drive operational performance and efficiency to deliver smart growth and strong financial returns. Our ideal partners should also be willing to invest across different parts of our value chain.”

The announcement comes less than a month after ADNOC unveiled the expansion of its strategic partnership model, as well as the active management of its portfolio of assets. The company aims to build on its flexible operating model, as well as its 2030 growth strategy, to maximise value from across the group, improving revenue streams and securing greater access for ADNOC’s products in key growth markets.

As ADNOC looks to boost oil production capacity to 3.5 million barrels per day (bpd) in 2018, offshore development is a key focus for the company. The existing concession area operated by ADMAOPCO, which produces around 700,000 bpd of oil, is planned to have a production capacity of around one million bpd by 2021.

PART OF ADNOC’S NEW PARTNERSHIP APPROACH, WE LOOK FORWARD TO WORKING WITH PARTNERS WHO WILL BRING NEW QUOTE: “AS AND INNOVATIVE THINKING TO THE TABLE. PARTNERS WHO CAN DEMONSTRATE TANGIBLE VALUE-ADD TO OUR OPERATIONS.” SEPTEMBER 2017

arabianoilandgas.com

NEWS

Jacobs to acquire CH2M

SPOT POLL

Jacobs’ acquisition of CH2M – financed in part with $1.2bn of new three-year term debt – will create a $15bn global engineering major Jacobs Engineering Group and CH2M HILL have announced that they have entered into a definitive agreement under which Jacobs will acquire all of the outstanding shares of CH2M in a cash and stock transaction.

The enterprise value of the transaction will be approximately $3.27bn, including around $416mn of CH2M’s net debt.

The transaction equity value of $2.85bn will be paid 60% in cash and 40% in Jacobs’ common stock.

Jacobs said it expects to finance the transaction through

THE MIDDLE EAST COULD DEVELOP A GAS HUB, WITH TRANSPARENT PRICES, AND WHERE GAS IS FREELY TRADED, BY:

BUSINESS

$4.4BN CH2M’s trailing 12-month revenues stand at $4.4bn.

a combination of cash on hand, borrowings under the company’s existing revolving credit facility, and $1.2bn of new committed three-year term debt arranged

by BNP Paribas and The Bank of Nova Scotia.

13% 2020 39% 2025 37% 2030 or later 11% Never Source: Gulf Intelligence

13

arabianoilandgas.com

SEPTEMBER 2017

NEWS

REGION

AROUND THE GULF Latest developments across the region 3

2 1 6

5

4

1. BAHRAIN

2. IRAQ

TAQA announces Kurdistan output

3. KUWAIT

PRODUCTION The Abu Dhabi National Energy

Company, or TAQA, has announced that crude production from its new oil block in the Kurdistan region of Iraq began in July. Production from the Atrush Block in the Kurdistan Region of Iraq is expected to ramp up to 30,000 barrels per day gross project capacity during the rest of this year, TAQA confirmed.

“Atrush will be a significant contributor to the group’s long-term cash flows and net income,” said Saeed Hamad Al Dhaheri, acting chief operating officer.

TAQA’s combined production figure stood at 131,086 barrels of oil equivalent per day in H1 2017, down by 11% from H1 2016, as a result of capital expenditure reductions.

14 Bahrain’s National Oil and Gas Authority (NOGA), led by the kingdom’s oil minister, Shaikh Mohammed bin Khalifa Al-Khalifa, is pursuing a number of projects in the country, including a new oil pipeline binding Bahrain and Saudi Arabia, a liquefied natural gas terminal, Banagas plant expansion, Bapco refinery expansion, and the development of Bahrain oil field and other NOGAsupervised schemes.

Former Iraqi oil minister, Ibrahim Bahr Al Olum, has said it is necessary for Iraq to regain an old pipeline that used to export Iraqi crude through Saudi Arabia, according to a Reuters report citing an interview published in the Saudi newspaper Al Hayat. The Iraqi Pipeline in Saudi Arabia has not carried Iraqi crude since 1990 and has been controlled

by Saudi Arabia since 2001 as compensation for debts.

Kuwait has begun injecting chemicals into complex oil reservoirs to extract heavier-grade oil, in the first such enhanced oil recovery (EOR) operation of its kind in the Middle East, according to state-owned Kuwait Oil Company. The project in the north of the country “aims to enhance and develop Kuwait’s oil reserves” as part of ambitious long-term goals for the sector, Reuters reported.

4. OMAN

5. SAUDI ARABIA

6. UAE DATA SNAPSHOT

BRENT CRUDE OIL PRICES 52

A joint independent power producer associate of Oman Oil Company, GS EPS Co, and GS Holdings have completed the construction of Phase IV, a 900 megawatt (MW) combined cycle power plant powered by directly imported liquefied natural gas . The power efficiency of Phase IV is 60%. Its cost-competitiveness comes from directly procuring the fuel needed for power generation.

SEPTEMBER 2017

Saudi Aramco has signed a memorandum of understanding with Kellogg Brown & Root (KBR), under which KBR will make at least 70% of its procurement spending within the Kingdom’s supply chain by 2021. KBR is committed to a five-year action plan to expand and develop its physical and human capital within Saudi Arabia, supporting Saudi Aramco’s drive to fortify the local economy.

EPC major KBR has reportedly won a project management consultancy contract for two major projects in Abu Dhabi. The contract, awarded

by Occidental Abu Dhabi on behalf of Abu Dhabi National Oil Company (ADNOC), is for the management of the front-end engineering and design services phase of the Dalma gas field development and the detailed design and surveys phase of the Hail and Ghasha Islands project.

$52.72

50

48 Jul 21

Aug 21

Decline in US oil inventories, lower output from Nigeria and buoyant global demand have slightly boosted oil prices. Source: oil-price.net arabianoilandgas.com

NEWS

Aramco awards key Ras Al Khair contract A consortium comprising Saudi Archirodon and Huta Hegerfeld AG Saudia won the first major contract at the $5.2bn shipyard complex, for dredging, reclamation, and marine structures

Saudi Aramco has awarded the first major contract in the planned construction of the US $5.2bn Ras Al Khair shipyard complex, which is designed to reduce Saudi Arabia’s dependence on oil exports.

The oil giant awarded the contract for dredging, reclamation, and marine structures to a consortium comprising Saudi Archirodon and Huta Hegerfeld AG Saudia. Aramco, which is leading the construction of the shipyard, did not reveal the value of the contract, but said the initial phase of the contract would be completed by 2020, according to the Saudi Gazette.

MARINE

4,500M The contract includes building 4,500m of quay walls and wharves at the Ras Al Khair shipyard.

Ahmed Al-Sa’adi, senior vice president for technical services at Saudi Aramco, said: “It is an important milestone for the King Salman International Complex for Maritime Industries and Services, the largest of its kind in the region. The complex is in line

with the Kingdom’s economic diversification objectives; it will position the Kingdom as a strategic logistics hub and will create vast job opportunities.”

The contract is reportedly the first major undertaking for the maritime complex, where contractors will conduct dredging and reclamation of approximately 37 million cubic metres of fill, in addition to ground improvement over an area of 7.4 million square metres.

Saudi Aramco stated that the project would comply with all of the environmental and sustainability requirements laid out by the Saudi government.

15

Emergency Mobile No: 00971 50 3752010

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Plot No S-50807, Jebel Ali, Free Zone (South), P.O. BOX 17729, Dubai-United Arab Emirates

Telephone: +9714-8865119 Fax : +9714-8865118 Email: sales@sso.ae | info@sso.ae www.shreesteeloverseas.com

SEPTEMBER 2017

Increase diesel yields — and profits — for your refinery Louis Burns, Technical Sales Manager, Fuels for ExxonMobil Catalysts and Licensing, LLC

Global demand for diesel fuel is growing, and likely will continue to grow significantly in the years ahead as developing markets continue to expand. Smart refiners are looking for ways to seize the opportunity to increase their production — and

Figure 1: HDT configuration Light ends

Hydrogen

Virgin diesel: 52 lv%, 625°F endpoint Kerosene: 30 lv% FCC LCO: 18 lv%

HDT, 780 psig

profitability.

Naphtha

HDT MIDW™

Many of them, however, rely on production methods that don’t ensure maximum yields of high-quality diesel, especially when refining waxy, high-paraffin crudes. These methods are hindered further by tighter specifications where vehicles need diesel that can perform in winter or even arctic conditions. To increase yields and profits, refiners should consider a more effective option that may improve overall product value.

Common production methods Refiners typically increase diesel production by raising the boiling range of the hydrotreater (HDT) feed to the fuel specification limit, which can introduce coldflow property issues, because heavier feeds contain higher molecular weight paraffins.

ULSD Diesel

Rate/Properties (Winter)

HDT feed

HDT product

Pipeline specification

Charge, kbd

50

48.8

--

Specific Gravity

0.843

0.840

Sulfur

0.25 wt%

<10 ppm

<10 ppm

Pour point, Deg F

-5.2

-5.2

-5.0

Cloud point, Deg F

0

0

10

T90% off, Deg F

578

578

640

To meet cold-flow specifications, refiners often: • Blend treated kerosene into diesel pool • Route untreated kerosene to HDT feed • Undercut diesel endpoint • Catalytically remove paraffin from the diesel (cracking)

These traditional options have drawbacks that can undermine profitability.

The first two can limit the amount of jet production, which usually has a higher value than kerosene or diesel.

Kerosene-to-diesel blending may be limited by other properties, such as flash point, and kerosene volume blending limitations may curtail the total diesel production. Undercutting

diesel cutpoint can degrade diesel to

Figure 2: Refinery yields with MIDW™ technology applied

vacuum gas oil (VGO), which also may

Refiner’s projected net benefit from ExxonMobil MIDW technology: $20M/yr+ Feed rebalancing: Uplift atmospheric gas oil (AGO) to diesel, and more kero to jet fuel Pre-MIDW

ExxonMobil Catalysts and Licensing offers an effective way to modify diesel cold-flow properties: MIDW™ technology for isomerization dewaxing of distillate fuels. It’s a relatively simple drop-in catalyst solution for dewaxing diesel that uses existing plant equipment.

Diesel endpoint temp (°C)

A better option

Feed composition pre-MIDW

Using MIDW

350 340 330 320 310

337°C

GIVEAWAY

reduce gasoline-to-diesel flexibility.

300 290

Spec: 338°C

Ƈ Ȃ ƎƐ°C

Feed composition using MIDW Kero 7%

Light cycle oil 18%

Light cycle oil 18%

Kero 30%

AGO 52%

303°C

AGO 75%

D86 T90% off

The MIDW catalyst enables production of high cetane and low cloud and pour point diesel at higher yields, allowing refiners to increase the diesel endpoint and reduce or eliminate the need for kerosene blending to meet cold-flow properties. Refiners can: • Reduce cloud point – a change of 54°F (30°C) is achievable • Increase diesel retention – yields as high as 98%, depending on cloud point

HDT feed basis Volume %

Base case

With MIDW™

Delta Vol%

Virgin diesel

52

75

23

Kerosene

30

7

-23

Fluid catalytic cracking – light cycle oil

18

18

0

Figure 3: Economic analysis Business cases Cold property modification

$M/yr

Base case

Pour point can limit virgin diesel cutpoint; T95% off at 625°F

Base

MIDW™ case

MIDW could go beyond 70°F of cutpoint in diesel, lowering pour point and cloud point by more than 21.6°F

20

• Meet Euro V/VI quality MIDW technology draws on ExxonMobil’s catalyst, process engineering and operational expertise to deliver

hydraulically full by routing kerosene to HDT feed.

MIDW technology is shown in Figure 2.

the highest value. Installed in over 15 units worldwide, MIDW catalyst is also used within ExxonMobil’s global refining circuit, and interest is growing among refiners seeking a proven solution.

By using MIDW catalyst, which would lower cloud point by 21.6°F (12°C), this refiner would have the flexibility to increase the HDT feed endpoint (T95%) by 62°F (34.4°C) — the equivalent of backing out 12 kbd of kerosene from HDT feed, while meeting cold-flow properties.

The economic analysis shown in Figure 3 is based on historical trade of liquefied petroleum gas (LPG), naphtha, kerosene, heavy atmospheric gas oil (HAGO), light cycle oil (LCO) and ultra low sulfur diesel (ULSD) to West Texas Intermediate (WTI) crude.

The rebalancing of kerosene with heavier diesel in the HDT feed would result in a profit improvement of as much as $20M/ year. The refinery also now would have incremental swing capability between gasoline and diesel production by adjusting diesel endpoint to meet market

Refiners seeking a more profitable method for meeting diesel specifications need to consider the advantages of MIDW technology.

Opportunity in action A refiner processing light sweet crudes that contain moderate to high paraffin content, for example, could use MIDW technology to increase diesel yields. To meet cold-flow specifications in winter, this refiner could be undercutting the feed endpoint to a single-reactor diesel HDT (Figure 1) and keeping the unit

1

1. The MIDW™ technology and catalyst can be customized for a variety of single or multiple reactor configurations. © 2017 ExxonMobil. All trademarks used herein are trademarks or registered trademarks of Exxon Mobil Corporation or one of its subsidiaries.

Source of test results/product information: ExxonMobil data

demands. The HDT unit impact with

COMMENT

Have your say: Contact indrajit.sen@itp.com

Upstream benchmarking: The path to future success Euro Petroleum Consultants believes companies should use benchmarking not only to demonstrate good performance, but also to identify effective best practices to significantly improve performance on a continual basis

18

B

enchmarking is a tool that helps companies to identify how they are performing compared to their peers in the industry, and it also allow firms to track improvements on a continuous basis. By conducting benchmarking, organisations will benefit from the experience of other similar companies in the oil and gas sector.

Some firms use benchmarking in order to demonstrate to stakeholders such as customers, shareholders, and lenders that the company is performing to an acceptable level. Benchmarking can also provide an effective input to the company’s strategic planning process by defining projects for improvement based on realistic analysis. This is why companies should use benchmarking not only to demonstrate good performance, but also to identify which best practices will most effectively and significantly improve their performance on a continual basis.

Objectives of benchmarking The objectives of benchmarking are

SEPTEMBER 2017

to establish a company’s actual performance levels, determine superior performance levels and reasons for such performance, and quantify and understand any performance gaps in key business areas. The process also enables the sharing of knowledge about best working practices, which will in turn enable superior performance. Through effective benchmarking, learning becomes the foundation for long-term performance improvement.

The upstream sector Within the upstream sector, various types of facilities can be benchmarked, from production and processing facilities to marine terminals, storage, loading and unloading facilities, as well as gas and oil pipeline systems, liquefied natural gas (LNG) handling facilities, and underground gas storage.

In these uncertain times, the upstream oil and gas industry faces many challenges that should be addressed for ongoing and future operations. Last year, we observed that companies were moving from

About the authors: Colin Chapman is the president of Euro Petroleum Consultants.

Ekaterina Kalinenko (right) is a project manager at the firm’s Moscow office. high-risk exploratory drilling to exploration in mature fields and processing, in order to reduce costs, improve margins, and adapt to market fluctuations.

While using benchmarking for assessing the current state of upstream business, one has to answer essential questions, such as which kep performance indicator (KPI) can realistically show the highs and lows of this segment, and of each asset separately, and to what fields can – and should – yours be compared. How to best form a portfolio of assets in order to examine them as a whole, and how to achieve a high level of productivity, closing the gap between the current reality and the desired benchmark goal, are also important considerations.

For process plants like refineries or gas and petrochemicals production, a certain number of process schemes are used, making them more or less typical and, thus, comparable. The most well-known benchmarking analysis in the downstream sector is done by Solomon Associates. When it comes to arabianoilandgas.com

COMMENT

the upstream sector, however, and trying to benchmark well and field productivity, no two fields are very similar, even though they might be located in one territory or belong to one basin.

Depending on the geographic data, climate, resource features, technology used, pressure, and other parameters that can vary by order of magnitude, each field is unique in its own way. In addition, operating conditions change over the lifecycle of the field, and can only be estimated with a limited degree of accuracy.

This is not to mention that, onshore and offshore, newly discovered and mature fields, different types of beds, contents, and characteristics of reservoirs cannot be aligned.

If we were to take well productivity per day as a criterion, we would need to know the type of well, the condition of other, nearby wells, as well as watercut, turnaround period, oil reserves to production ratio, and so on. It becomes challenging to form a base for benchmarking, let alone to create a final report.

Nevertheless, companies pro-

Ekaterina Kalinenko of Euro Petroleum Consultants.

viding evaluations of upstream activities, such as Juran Global, have managed to set up metrics that allow for the vital elements of the business. Some programmes have been designed with input from companies’ participants and are aimed to provide management teams with the information needed to support strategic and operational improvement decisions.

Being part of a peer group can be

useful in terms of insight into their competitive position in the market, reasons to allocate capital in certain assets, and to capitalise on the historical data of the asset.

If we take as an example the production and processing facilities of an oil and gas company, the scope of a benchmarking programme should focus on the operational efficiency and effectiveness of facilities. To measure efficiency, we need to calculate costs and manpower time expended for operations, maintenance, business overheads, technical support, energy, and utilities, as well as health, safety, and environment (HSE), and quality. To measure the quality of performance, the KPIs may include availability and reliability, utilisation, downtime, maintenance management, emissions, waste, safety, and training.

In conclusion, benchmarking of upstream facilities can provide companies with a clear vision of how to improve over the coming years. When budgets are tighter, it is important for firms to maximise the benefits of their existing assets.

Benchmarking can help maximise the efficiency of existing assets.

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COMMENT

Have your say: Contact indrajit.sen@itp.com

Small valves make a big difference in operations Pressure reducing valves (PRV) are central to oil and gas production, keeping pressure within the very strict parameters required at all times. Oxford Flow, a commercial offshoot of the University of Oxford, explains how this new method of pressure regulation could result in a significant improvement of onshore operations in the oil and gas industry.

About the author: Steve Busby is the business development director at Oxford Flow.

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he oil and gas sector is always under pressure to do more with less. And with maximising performance and profits paramount, any new technology that can help companies operate more efficiently will always be of interest.

A new technology originating from the UK’s University of Oxford and being introduced to the Middle East this year by spin-out company Oxford Flow has the potential to greatly improve oil and gas operations – all by installing a newly patented and highly innovative valve.

The importance of valves in the industry Pressure reducing valves (PRV) are central to oil and gas production, keeping pressure within the very strict parameters required at all times. And this pressure regulation is especially important in onshore operations, where oil or gas may need to be transported at several different pressures at different stages of the process.

Yet despite how essential PRVs are not just to oil and gas operations, but to myriad industrial processes, selecting a valve to use can often feel like an exercise in assessing the least-worst option. For example,

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while the traditional diaphragm valve patented by Bryan Donkin in the Victorian age is cheap to operate, it is also prone to failure as the elastomers that enable the device eventually succumb to fatigue, erosion and embrittlement as a result of the very high pressures. And while actuated ball valves are undeniably efficient, they also require a hugely expensive uninterruptable power supply in order to ensure safe and reliable operation.

In contrast, the devices being introduced to the market by Oxford Flow manages to hit the advantage of being as efficient as it is costeffective.

Created in the labs of Oxford University’s Osney Thermo-Fluids Laboratory, the innovative technology was created in the course of Oxford Professor Thomas Povey’s research into heat transfer in jet engines, after he found his work limited by the fact that no existing PRV was capable of withstanding the very high pressures he needed to use in the course of his experiments.

Not one to shy away from an engineering challenge, Povey returned to ‘engineering first’ principles and designed a valve that used a piston to regulate pressure rather than a diaphragm. arabianoilandgas.com

COMMENT

Replacing the diaphragm with a piston In the Oxford Flow model, the diaphragm is replaced by a direct sensing piston actuator. One side of the piston is exposed to the downstream pipeline pressure, while the other side is balanced against a pressure cavity controlled by a pilot regulator.

During operation, the piston moves inward, reducing the size of the cavity when the downstream pipeline pressure exceeds that within the pressure cavity set by the pilot regulator.

The movement of the piston actuator in closing reduces the flow rate to maintain a stable downstream pressure. As demand increases, the downstream pressure falls below that set by the pilot and the reverse operation occurs.

including reduced hunting, lower noise emissions, minimised flow turbulence and reduced minimum pressure head-drop.

Other advantages include just one moving part, which means the Improved performance Oxford Flow valve is much better Testing demonstrated that in addition to being a more efficient and re- placed to handle ‘dirty’ or corrosive liable way of regulating pressure, this substances and is less likely to malfunction. This in turn reduces repair piston-led technology also brings and replacement costs, meaning Oxwith it a host of other benefits,

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ford Flow devices have an ultra-long service schedule when compared to other valves in the market. And because they’re also self-powered, self-regulating and self-controlling, and smaller and lighter than their competitors, both running costs and installation costs are also significantly lowered.

More good news for businesses is that adopting the devices will not necessitate wholesale replacement of infrastructure. Oxford Flow’s technology can also be easily retrofitted into existing pipelines, and is simple to fit into the current strainers and filters used in the sector. For example, the IM Series wafer-type and IHF Series can both be installed between PN and ANSI flanges.

The use of these valves can not only contribute to much more reliable and efficient operations for oil and gas businesses operating in the Middle East, but it can also help lower costs too. And in a market in which profit margins are consistently under pressure, that can only be a good thing.

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AWARDS PREVIEW

Surge in nominations We are delighted to announce that total number of entries for the Oil & Gas and Refining & Petrochemicals Middle East Awards 2017 rose by 33% compared to last year’s event, while new companies participating this year increased by 43%

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he eighth edition of the Oil & Gas and Refining & Petrochemicals Middle East Awards has caused excitement in all quarters of the upstream, midstream, and downstream segments of the regional energy industry.

This enthusiasm is clear from the significant increase in the number of nominations received this year, which saw a rise of 33% from last year. During the 82-day nominations period, which closed on 31 July, companies and individuals from all segments and verticals within the energy sector sent in their entries for this year’s 12 awards categories.

The 2017 awards have also seen a growth in the number of new companies that have submitted nominations – a figure that has soared by 43% from last year’s event.

The new digital platform that was introduced for nominations this year has played a significant role in boosting Silver sponsor

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entries, having made it considerably quicker and more convenient for entrants to submit documents and information about their work and achievements.

The numbers speak for themselves, and the encouraging statistics obtained at the end of the awards nomination period is evidence of the overwhelming desire for recognition and celebration that prevails among industry stakeholders.

The team involved in organising the awards is proud of the way the event has been embraced by the regional energy industry this year, and is encouraged by the fact that the event continues to grow in stature, enabling us to reach out to more industry players year after year.

Before we reveal the shortlisted nominations for this year’s awards, we will hear from the remaining sponsors of the event – two of them having already shared their views in last month’s issue – about their association with the 2017 Oil & Gas and Refining & Petrochemicals Middle East Awards.

Category sponsors

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AWARDS PREVIEW

Orpic Shaima Ahmed Al Aufi, manager of corporate communications services at Oman Oil Refineries and Petroleum Industries Company (Orpic) What role do you think the Oil & Gas and Refining & Petrochemicals Middle East Awards play in rewarding success in the regional industry?

These awards have been in the market for quite a long time and are credible awards, recognising leading players, innovative solutions, and best practices throughout the oil and gas industry, in both its upstream and downstream segments. They hold significant importance for Orpic as part of our aim to lead performance in the refining and petrochemicals industry.

Why do you feel it’s important to celebrate success in the energy industry?

Success is crucial to the existence, development, and sustainability of any business, let alone oil and gas companies. We, at Orpic, believe that celebrating the success of our achievements is the beginning of yet more challenging but rewarding experiences down the road. It has been said that “success isn’t always about greatness. It’s about consistency”, so, as we keep pushing for operational excellence and consistency in our quality standards, it is important to celebrate success accordingly.

At Orpic, we have many success stories that need to be heard, starting with the ongoing growth of projects, namely Sohar Refinery Improvement Project (SRIP), Muscat – Sohar Product Pipeline (MSPP) project, and Liwa Plastics Industries Complex (LPIC) project, as well as all the in-country value (ICV) contributions, corporate social responsibility (CSR) initiatives, Silver sponsor

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and the environment enhancement programmes. Therefore, sponsoring the achievements of the oil and gas sector in the Middle East underscores the fact that we are contributing to the most important sector in the world.

We believe that the Oil & Gas and Refining and Petrochemicals Middle East Awards are a great opportunity to stand out, compete, and – above all – inspire other players in the market to be part of this regional acknowledgement.

communities, while at the same time optimising the opportunity to enhance the ICV. Bringing core businesses and related stakeholders’ initiatives into the spotlight has, therefore, become necessary to the development of the industry.

Additionally, Orpic aims to maximise the economic and social impact of its business operation by playing an active and positive role as a ‘good neighbour’ to all stakeholders. We believe that social investments strengthen our community engagement and the economic development of local communities, especially in the trying economic conditions we see at present.

What would you say of our campaign to shine a spotlight on factors that are crucial to the oil and gas industry?

Orpic is committed to promoting and improving awareness of its projects, initiatives, and operations, both internally and externally, as well as our environmental programmes, ICV initiatives, and CSR programmes.

It is, therefore, vital to recognise the big role played by the corporate’s stakeholders in driving growth, operational excellence, and social responsiveness.

By recognising their remarkable contribution, you offer an all-round boost to both major businesses and their relevant stakeholders, striking a balance that could positively impact businesses, individuals, and

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Category sponsors

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AWARDS PREVIEW

AVEVA Mohamad Awad, vice president of sales in the MEA region at AVEVA

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What role do you believe these awards play in recognising achievements in the regional industry?

Recognising and rewarding achievements in this way emphasises to others the importance of investing in new diversification strategies and a movement towards innovation.

Eight years of awards celebrate the Middle East’s constant strive to become an industry leader and compete on an international level, with much to celebrate. Looking back at eight years of winners, you can see that bold steps have been – and are still being – taken by companies to improve cost and efficiency; health, safety, and environment (HSE); and operational excellence.

We often focus on what’s not working, and forget to recognise what’s gone well, to stop and celebrate it. A successful mindset requires cultivation, and celebrating success through awards helps us focus on the positive things.

As a first-time sponsor of these awards, why did AVEVA decide to support the event this year?

At AVEVA, we are motivated by success, and those of our clients. These awards are a way to promote the momentum of the great things that are currently being achieved, which will inspire others to innovate for the future.

Sponsoring the Young Professional of the Year award is important to AVEVA, as the future belongs to the youth of today. They are the next innovators and leaders. Recognising the Silver sponsor

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great things they bring to our industry is essential.

Awards speak volumes. As a coveted third-party endorsement of achievement, they place the nominees and winners at the forefront of the industry. Years of support from some of the biggest and best NOCs and service providers is testament to the quality of the recognition gained by being a part of the awards.

How important do you think it is to recognise performance in areas such as operational excellence, HSE, and corporate social responsibility (CSR)?

While progress has been made in certain areas, the industry is not yet where it needs to be. Refocusing attention on new technology for preventative strategies, and programmes to maintain and enhance momentum in operational excellence, HSE, and CSR are crucial.

Even after 29 years, Piper Alpha still serves as a shocking reminder of the inherently hazardous nature of our industry, and shining a spotlight on initiatives taking place in these vital

domains allows us to encourage further sustainable, innovative solutions and ideas for the oil and gas sector.

This year sees the introduction of three new categories for the downstream sector: Sour Gas and Sulphur Management of the Year, Logistics Service Provider of the Year, and Water Management Solution of the Year. Do you believe that our efforts to highlight achievements in downstream operations are justified?

The downstream segment includes complex and diverse activities and is experiencing a period of rapid change.

With refining margins under pressure for the medium and longer term, largely because of over-capacity and relatively slow demand growth, it is right to highlight the achievements of players that have improved their ability to compete more aggressively in the market. Ensuring people continue to innovate and achieve throughout the entire oil and gas business chain is crucial for the industry’s future.

Category sponsors

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AWARDS PREVIEW

DIA33

Nadeem Raza, group chief executive officer at DIA33 What role do you think the Oil & Gas and Refining & Petrochemicals Middle East Awards play in recognising achivements in the regional industry?

Awards and recognition are an opportunity to display, recognise, and inspire the achievers, passionate and ambitious inventers, collaborators, contributors, and developers in any industry. The Oil & Gas and Refining & Petrochemicals Middle East Awards aim to highlight a deserving few, and

they are objective when it comes to showcasing organisations and individuals for their commendable achievements.

Why do you believe it’s so important to celebrate success within the regional energy industry?

Energy is a metaphor for the global fabric. Anything and everything depends on energy, in its various forms.

From food, shelter, clothing, and comfort, to travel and exploration, the energy industry has transformed the world, and the whole concept of living. Celebrating the energy industry is no less than celebrating life.

As a first-time sponsor of our awards, what made DIA33 decide to get involved this year?

We’re in a difficult marketplace, with unyielding cost pressures, product proliferation, and regulatory scrutiny. In this setting, we believe in empowering those that are pioneering innovative approaches to business, the environment, and sustainability.

As a chemical distribution company, DIA33 is, therefore, thrilled to support this work by promoting awareness of the important work being done by this year’s nominees and winners. We have seen the growth of these awards for the last five years now, and

Silver sponsor

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we are extremely pleased that DIA33 is able to sponsor the Oil & Gas and Refining & Petrochemicals Middle East Awards this year.

We are looking forward to presenting the very prestigious award of Downstream Project of the Year, as it particularly shows the development of this industry and its value, not just within the Middle East, but across the global refining and petrochemicals market.

This year, along with Downstream Project of the Year, we have three newly introduced categories that target the downstream sector: Sour Gas and Sulphur Management Project of the Year, Logistics Service Provider of the Year, and Water Management Solution of the Year. This makes a total of four categories out of a dozen that pertain to the refining and petrochemicals sector of the industry. Do you believe that our efforts to highlight downstream operations, in addition to recognising achievements in the upstream segment, are justified?

Downstream operations include refining, processing, and converting crude into thousands of products that are essential for producing millions of finished products that are used by people all over the world every single day. However, such processes also produce many by-products, like sour gas and sulphur. It’s vitally important that these by-products are handled efficiently – and that those involved in managing the waste actually help to make the planet greener.

Meanwhile, recognising logistics providers at the same time as applauding the manufacturers is very logical, as the logistics service providers are the ones that actually deliver the things you need to your doorstep.

Category sponsors

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AWARDS PREVIEW

We present the finalists The entries that were received for each of this year’s 12 awards categories have been assessed, evaluated and appraised, and the successful nominations have been shortlisted as follows:

McDermott Operational Values – McDermott International Inc Predictive Personal Protective Equipment & Worksite Supervisory System – Saudi Aramco

Logistics Service Provider of the Year Agility ATS Shipping DIA33 Integra Petrochemicals Schmidt ME Logistics

CSR Initiative of the Year

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AGOC’s (Aramco Gulf Operations Limited Company) Local Community Programmes – Saudi Aramco Participation in Jusoor Social Projects – Orpic Participation in Ramadan Aman initiative – ENOC

Oilfield Services Company of the Year

Downstream Project of the Year

Oil & Gas Woman of the Year

Duqm Refinery Project – Duqm Refinery and Petrochemical Industries Company Project Black Pearl – Vopak Horizon Fujairah Limited Sadara Project – Sadara Chemical Company Sohar Refinery Improvement Project – Orpic

Dr Abeer Olayan – Senior research scientist, Saudi Aramco Dr Esra Younis Ahmed AlKhadhar AlHosani – Instrumentation and control engineer, ADCO, an ADNOC Group company Fatma Al-Otaibi – Team leader, Information Solutions, Exploration & Production, Research & Technology, Kuwait Oil Company Gina Fyffe – CEO, Integra Petrochemicals Nabilah Al-Tunisi – Chief engineer, Engineering Services, Saudi Aramco Rebecca Liebert – president and CEO, Honeywell UOP

HSE Initiative of the Year After-Hours Safety System – DADM Enterprises KOC & Emerson WirelessHART Project – Emerson

AlMansoori Specialized Engineering Pipe & Well O&M Services Co Weatherford Middle East Asia

Operational Excellence Strategy of the Year Cable Deployed ESP System – Saudi Aramco Corporate Operational Excellence Programme – Yanbu NGL Fractionation Department, Saudi Aramco Excellence Journey – Saudi Aramco LEAN Six Sigma – Weatherford Middle East Asia People, Process, Performance: Field Development, North Kuwait – Kuwait Oil Company Silver sponsor

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Category sponsors

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AWARDS PREVIEW

Sour Gas & Sulphur Management Project of the Year Design and Development of an Innovative Downhole Corrosion and Scale Monitoring System in High-Temperature Sour Gas Wells – Saudi Aramco Shah Gas Development Project – Al Hosn Gas

Technical Innovation of the Year Date Seed-Based Sized Particulate LCM and Formation Strengthening Materials – Saudi Aramco Novel and Effective Fluid Loss Solution in Highly Fractured Formations – Global Chemical Company LLC/ TBC-Brinadd LLC Shallow Water Inspection and Monitoring Robot – Saudi Aramco Smart DAS Up-Holes for Simultaneous Near-Surface Characterisation and Deep Reflection Imaging on Land – Saudi Aramco SuperButol – Saudi Aramco Unique Coil Tubing Inspection Technology – AlMansoori Inspection Services/ iRobotics World’s Slimmest CT Tractor for Matrix Acidising Stimulations in Extended Reach Wells – Saudi Aramco

Training Initiative / Programme of the Year 27

Emerson & KOC Competency Development Programme – Emerson Localisation Initiative in Partnership with King Fahd University for Petroleum & Minerals – Honeywell UOP NextGen – Weatherford Middle East Asia NGLFD Operator Development Programme – Saudi Aramco Sadara Apprenticeship Programme – Sadara Chemical Company Vocational Training Programme for Employees – SNC-Lavalin

Water Management Solution of the Year Construction and Commissioning of BTX Removal System to Absorb the BTX Components from the Waste Water Stream – Saudi Aramco Multi-Stage Water Treatment System with Porous Ceramics – Saudi Aramco Sokalan RO 3500 – BASF Zero Liquid Discharge Water Treatment Solution for Produced Water Recycle and Oil Recovery – Saudi Aramco

Young Oil & Gas Professional of the Year Abdul Rahman Bin Omar – EXPEC ARC, Saudi Aramco Silver sponsor

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Dr Esra Younis Ahmed AlKhadhar AlHosani – Instrumentation and control engineer, ADCO, an ADNOC Group company Fatima Al Zaabi – Industrial trent engineer, Turbine Services & Solutions Marwa Hassan – Engineer, Design and Evaluation Systems for Client, AlMansoori Specialized Engineering Mohammed Al-Ghazal – Engineer, Saudi Aramco Sahil Gandhi – Chief operating officer, Unique Group Zainab Al-Saihati – Field drilling engineer, Saudi Aramco Category sponsors

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TOP 30 OILFIELD SERVICES COMPANIES

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hile our two annual lists Power 50 and Top 30 EPC Contractors - seek to rank players in the landmark segments of operators and upstream project engineering, respectively, we have been feeling the need for a separate ranking to recognise stakeholders in another vital sector of the upstream oil and gas market: oilfield services.

Welcome to the Top 30 Oilfield Services Companies 2017, the inaugural edition of this annual list. Our endeavour, through this new ranking, is to pay tribute to the numerous local and international companies that have been serving operators in the Middle East and North Africa (MENA) region’s upstream sector for decades now.

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We understand that the term ‘oilfield services’ applies to virtually every company under the sun that has some association with the oil and gas industry. Hence, in order to streamline the focus of the coverage, we have concentrated on only the enterprises that offer products and services that fall into any one of the following four verticals, which are crucial to the very functioning of the industry: oilfield tools, equipment, and machinery; upstream technology; digital and software systems; and upstream project consultancy and project management.

Before we begin the listing, however, Georges Chehade, a partner at Strategy&, highlights some of the opportunities Saudi Arabia presents to oilfield services providers.

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TOP 30 OILFIELD SERVICES COMPANIES

OPPPORTUNITIES ABOUND IN SAUDI ARABIAN MARKET Georges Chehade, a partner with Strategy&, believes the Kingdom’s IKTVA agenda provides ample scope for oilfield services companies to tighten their grip on the Saudi oil and gas sector

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audi Arabia is driving an economic transformation that provides important opportunities for local companies and multinational corporations (MNCs) in oilfield services and equipment. There are two opposing forces at work within the broader economic changes. The government is encouraging foreign direct investment and making it easier for foreign companies to do business in Saudi Arabia without local partners.

At the same time, the government is also increasing local content requirements, potentially giving the local private sector a significant role. Saudi Vision 2030, the official economic programme, seeks increased local content, local jobs, and a greater role for the private sector.

In response, local and foreign companies must review their strategies and how they approach partnership. This is because local company-MNC partnerships are the most significant force in the Saudi oilfield services and equipment sector. MNCs were critical to developing the sector and previously had to partner with local firms. These local enterprises were the agents, distributors, or passive joint venture partners of MNCs. Many are large, family-owned conglomerates with interests in multiple sectors. Local firms must now see what they can exploit from their current operations and which capabilities they have to build.

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TOP 30 OILFIELD SERVICES COMPANIES

Recent changes pull in two different directions, toward greater openness and toward greater localisation. Foreign companies can operate solo in Saudi Arabia under certain conditions. As of late 2015, foreign enterprises can have complete ownership of wholesale and retail operations in return for investment, research and development, logistics and after-sales support, and employment commitments.

Some large, well-established foreign firms are already taking advantage of this and have licences for trading activities in Saudi Arabia through 100%-owned subsidiaries.

However, the drop in the oil price three years ago has intensified the government’s policy of economic diversification, particularly through localisation. The most important local production and employment initiative for the oil-field services and equipment industry is Saudi Aramco’s In-Kingdom Total Value Add programme (IKTVA). The company procures the lion’s share of Saudi oil-field services and equipment. Saudi Aramco increasingly requires that MNCs provide a plan to increase local production. IKTVA, along with other localisation policies, is well established and more are on the way.

This changed environment provides an opening for local companies and MNCs. They can proactively redraw their vision and strategy for the oil-field services and equipment sector. This means examining what kinds of investments are available, assessed in terms of localisation potential and economic attractiveness, and their coherence with their existing investment portfolio. Local firms should ask what they can exploit from their existing operations.

Partnerships will change. Some local firms could operate

independently in niches that MNCs find uninteresting.

Some MNCs will maintain an agent/distributor relationship with a local partner where it is not feasible technologically or commercially to localise a specific product.

Other MNCs could go for complete ownership of their Saudi operations because they have high-value processes that they can localise, and the skills to undertake localisation without a partner.

In this new environment, the main issue for local firms is to develop the capabilities to support efficient and profitable localisation, whether with an MNC or alone. They must strengthen, or acquire, capabilities in eight key areas: financial, technological, operational, marketing, supply chain, shared services, manpower development, and policy advocacy.

Financial capabilities matter, because traditionally the MNC covered most investment through its offshore production.

However, local firms should now be able to fund either their part of localised manufacturing or their own operations.

Similarly, MNCs were the main technology providers, which is why changing partnerships are an opportunity for local companies to develop their technological capabilities.

Local companies should be able to select which technology to invest in, particularly if they choose to operate alone.

In the past, operational capabilities were mostly the concern of MNCs, which used to lead core technical operations. However, local companies should now review joint venture operational plans and practices based on their familiarity with the Saudi environment and experience of non-core operations in other sectors.

“SAUDI ARABIA IS MAKING IT EASIER FOR FOREIGN COMPANIES TO DO BUSINESS.”

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TOP 30 OILFIELD SERVICES COMPANIES

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SCHLUMBERGER

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HIGHLIGHT: Schlumberger operates in over 85 countries and employs about 100,000 people of 140 nationalities.

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et’s launch the list with a company worthy of the top spot. Schlumberger has topped the ranking by virtue of its exhaustive portfolio of oilfield products, services, and technologies, and its focus on the Middle East and North Africa (MENA) oil and gas market. The Houston-headquartered oilfield services major has been working with key upstream operators, and has been involved with numerous complex projects in the region.

In alignment with the global corporate push for operational excellence, Schlumberger seems to have put mergers and acquisitions (M&A) at the centre of its expansion strategy. The merger with Cameron last year, the purchase of Peak Well Systems in January this year, and the jointventure with rival Weatherford (named OneStim) for the North American market, are among the significant acquisitions Schlumberger has made in recent times, ensuring that the company increases its reach in the global oilfield services market with every addition to its portfolio.

The standard of products and services within a company’s portfolio figures heavily in where oilfield services players stand in the market.

Schlumberger has been producing pioneering products for decades now, most of which are in operation in the regional industry. The OptiDrill real-time drilling intelligence service is one such highlight in its portfolio, helping mitigate risk and increase efficiency during drilling. The system offers early detection of hazards and drillers receive quick guidance on how to mitigate severe downhole dynamics.

$7.5BN

SCHLUMBERGER’S REVENUE HAS RISEN BY 8% IN Q2 2017 TO STAND AT $7.5BN

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TOP 30 OILFIELD SERVICES COMPANIES

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BAKER HUGHES, A GE COMPANY

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aking global headlines this year is the recent acquisition of Baker Hughes by GE Oil & Gas. The mega-merger has created an oilfield services giant that boasts of a ‘fullstream’ portfolio, making Baker Hughes, a GE Company (BHGE) the world’s second largest oilfield services provider.

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The merged organisation has a legacy of working with almost every major NOC and IOC in the Middle East and North Africa region for about 80 years, and boasts a regional workforce of 6,000.

The company has been solving complex issues faced by its customers in the Middle East, for example by successfully enabling production in a well that had not produced since its initial completion several years ago. BHGE worked with the operator to develop a solution using its proprietary PulsFrac dynamic event modelling software and perforating services to re-complete this challenging well, getting it back online to start producing thousands of barrels of oil equivalent a day.

HIGHLIGHT: BHGE is working on a multimillion dollar drilling services award from a major operator in Oman. The award includes directional drilling, measurementwhile-drilling, and loggingwhile-drilling services, cementing BHGE’s position in the Omani market.

$23BN

ESTIMATED ANNUAL GLOBAL REVENUE OF THE COMBINED BHGE ENTERPRISE

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TOP 30 OILFIELD SERVICES COMPANIES

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HALLIBURTON

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linching the third position in the rankings is US major, Halliburton.

In an interview with O&GME earlier this year, Ahmed Kenawi, Halliburton’s senior VP for the Middle East and North Africa (MENA) said the company’s regional strategy is aligned with the global three-pronged policy – to bank on the company’s core strength of working on mature fields, unconventional and deepwater projects.

Since deepwater projects are uncommon in the MENA region, barring a few in Egypt, Halliburton’s principal focus is delivering on mature fields.

The company, which has delivered multiple

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EOR projects globally and regionally, is currently working on a couple of projects in the GCC. Its subsidiary company, Landmark, is working on a digital EOR project in the GCC, where it is controlling the asset’s processes and workflows to achieve field optimisation.

More recently, Halliburton has also started work on an unconventional project in Oman, where the company ousted a major competitor that had been incumbent on the project for seven years. At the time, Kenawi also revealed that Halliburton was set to begin work on three new project management contracts this year, including work on six additional rigs with full lump sum turnkey deals in Iraq.

Given the specialised work that Halliburton delivers, the company says technical innovation is key to maintaining its efficient oilfield services portfolio.

HIGHLIGHT: Halliburton is presently promoting its Acoustic Conformance Xaminer (ACX) tool – a system that that uses hydrophone array technology to locate and describe communication paths and flow areas in the wellbore area, vertically and radially, in real time.

9,000

HALLIBURTON’S GLOBAL 50,000-STRONG WORKFORCE INCLUDES 9,000 EMPLOYEES IN MENA

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TOP 30 OILFIELD SERVICES COMPANIES

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WEATHERFORD

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ecuring the fourth spot in the O&GME ranking this year is another Houston-based oilfield services leader. Weatherford has had a presence in the Middle East for more than 40 years, and its operations in Egypt and Abu Dhabi date back to the 1970s.

Today, the region is home to one of the company’s largest manufacturing centres, as well as a Global Technology and Training Centre, both of which are located in the UAE. The Abu Dhabi

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Manufacturing Centre supplies a wide range of equipment to more than 150 companies in over 40 countries worldwide.

When it comes to its operations within the Middle East, Weatherford has been invited to participate in a number of turnkey projects for a major regional NOC. The company won a turnkey project related to rigless well testing operations and successfully mobilised operations in June this year.

As a global leader in managed pressure drilling (MPD) technologies, Weatherford has deployed its flagship offering throughout the Middle East region, to maximise drilling productivity and, more importantly, to prevent the risk of catastrophic well-control incidents.

HIGHLIGHT: Recently, Weatherford helped one of its customers in the Middle East save a $19mn well from abandonment and drilled to section depth using MPD, ending almost a month of conventional drilling attempts.

$2.7BN

REVENUE EARNED BY WEATHERFORD GLOBALLY IN THE FIRST HALF OF 2017

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TOP 30 OILFIELD SERVICES COMPANIES

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EMERSON

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WEIR OIL & GAS

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merican industrial products and services provider Emerson has consolidated its position in the Middle East and Africa’s oil and gas market over the last three decades, by virtue of its 11 regional offices and 19 service locations. Emerson is working on several projects to entrench itself in the region; its under-construction base in the Dhahran Techno Valley (DTV) for instance. The objective of the $25mn facility, which will be completed in January 2018, is to cater to the oil and gas, mining, and other industries in Saudi Arabia. In terms of its oil and gas portfolio, Emerson has recently launched Plantweb Digital Ecosystem - an Industrial Internet of Things (IIoT)-based offering, that enables process industries achieve ‘operational certainty’.

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he acquisition of KOP Surface Products in June this year has significantly enhanced Weir Oil & Gas’ upstream portfolio and its capability to cater to its impressive clientele in the EMEA region. The company’s offering of products and services is distinctly segregated into three key segments of oilfield services: pressure control, rotating equipment, and operations & maintenance. With its regional base in Dubai and with manufacturing and service units in key locations across the Middle East, Weir Oil & Gas has been successfully serving major customers - with recent examples being its wellhead equipment supply contract to KOC, and a maintenance contract with SNOC - and is in a firm position to consolidate its hold and expand in the region.

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SEPTEMBER 2017

TOP 30 OILFIELD SERVICES COMPANIES

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WELLTEC

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anish oilfield services provider Welltec has bagged the seventh position in our rankings. Among the many notable products and technologies that form its upstream portfolio, the Welltec Annular Barriers (WABs) have proved to be quite successful for the company’s Middle East business. A number of WABs have been in operation in regional oilfields posing complex production issues. In these cases, no cementing technique could resolve the problem, so a WAB was deployed in the open hole in conjunction with cement, with the WABs preventing crossflow between two zones that previously led to cement channelling and failure. Deployment of WABs in operations has been deemed as an economical solution by Welltec’s customers.

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HONEYWELL

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ith regional governments setting ambitious economic objectives, Honeywell has been at the forefront of managing some of these key oil and gas initiatives in Saudi Arabia, Egypt, the UAE and Oman. For instance, Honeywell has signed a deal with Saudi Aramco in order to drive efficiency and productivity in operations. With regards to its portfolio, Honeywell’s Digital Suites for oil and gas is a set of software and services that can help oil and gas producers boost production performance by 3% to 5%, while improving operational safety. The range of six suites are related to Operational Data, Process Safety, Production Surveillance, Equipment Effectiveness, Production Excellence, and Operational Performance.

SEPTEMBER 2017

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TOP 30 OILFIELD SERVICES COMPANIES

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NATIONAL OILWELL VARCO

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oving close to unarguably their biggest regional customer - Saudi Aramco - by setting up base in Saudi Arabia, is proving to be an effective business strategy for oilfield services companies.

National Oilwell Varco (NOV), much like its peers, recently announced it is expanding the operations of its Fiber Glass Systems business unit with a new composite pipe manufacturing facility near Dammam. The facility has established NOV as the kingdom’s first local manufacturer of high-pressure spoolable composite pipes and has enhanced the company’s ability to provide lightweight, corrosion-resistant, and engineered products. Moreover, NOV improved its standing in the regional market after winning a $45mn contract last year from Algeria’s Sonatrach for managing well operations.

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PENSPEN

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t was perhaps winning a contract last year to serve in a project operated by Emirati oil giant ADNOC, that helped Penspen elevate its stature in the regional market. The UKbased company signed an agreement with Matrix Construction to provide modification works at the Bab and Asab fields, located west of Abu Dhabi, and operated by ADCO. Penspen was sub-contracted the detailed engineering works by Matrix Construction, the EPC contractor. Executing the FEED work for this project previously had helped Penspen bag this deal. CEO Peter O’Sullivan told O&GME last year that the company, which has worked in Abu Dhabi for about 40 years, was banking on more orders from ADNOC to cement its position in the local oilfield services market.

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TOP 30 OILFIELD SERVICES COMPANIES

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SPX FLOW

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SIEMENS

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he resurgence of Iraq and the opportunities that its underdeveloped oil and gas industry presents is proving to be lucrative for oilfield services companies. A recent joint venture with local Iraqi firm WTE Wajdi Group has thus helped SPX Flow raise its profile in not just Iraq, but also in the region. By way of the JV - which will be based in the North Rumalia oilfield in southern Iraq, and have an office in Dubai - SPX Flow is looking to expand its business of supplying all rotating and static equipment for oil and gas customers in Iraq. The US-based entity is also relying on its portfolio of pumping applications for oil and gas to grow its customer base in the region - products from its Plenty brand of pumps and mixers being a key part of the offering.

erman industrial services doyen Siemens has consistently enhanced its oil and gas offering, by virtue of which the enterprise is also regarded as a key oilfield services provider. The company banks on its legacy of 150 years of presence in the Middle East to do business with the region’s key oil and gas players. Siemens’ engineering expertise, combined with the portfolio of its subsidiaries Dresser Rand and Rolls-Royce, helps its produce innovative products, such as the SGT-A35 RB - a lightweight, aeroderivative gas turbine, that can generate up to 38MW of power. The product’s efficiency lies in its ability to address the complex requirements of offshore applications, like floating production, storage and offloading vessels.

SEPTEMBER 2017

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SUPPLIER YOU SHOULD KNOW

has had the most positive response from the upstream MENA market?

Trans Asia has recently been involved in a number of decommissioning projects in the MENA region for the replacement of topside platforms and pipelines that have completed their design life.

We have developed a range of solutions for the effective decommissioning of the facilities within the shortest possible time frame, and with minimal impact to the environment, which have been hugely appreciated by our clients.

Trans Asia is working on new technologies for the demolition of pipelines and platforms.

Trans Asia Pipeline INTERVIEWEE: SURENDRANATH DHANEKULA, MANAGING DIRECTOR, TRANS ASIA PIPELINE SERVICES What does your companyâ&#x20AC;&#x2122;s portfolio of products and services include for the upstream oil and gas industry in the Middle East and North Africa (MENA) region?

Trans Asia provides a range of services for the oil, gas, and petrochemicals industry. Our services are mainly classiďŹ ed as pipeline, process, industrial, or specialty services. These services are utilised by a number of operators to ensure that their facilities are leak-free for start-up, as well as during routine maintenance and operations.

Which of the products or services that Trans Asia provides

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Innovation and research and development (R&D) form the backbone of any oilfield services company. What R&D activity takes place at Trans Asia to improve your offering, and what measures does the company take to ensure its portfolio stays relevant to the requirements of the modern oil and gas operator?

We are constantly working to improve our service offerings, with a lot of emphasis on innovation and R&D to ensure that we are able to provide our clients with the best services in the most economical and safest way possible. We are currently working on a number of new technologies for the safe demolition of pipelines and platforms, which will soon be introduced into the market.

In the current economic climate, how has the nature of business changed for an oilfield services company like yours, and how are you coping with these new realities?

Due to the current economic situation in the oil and gas industry, we have observed that the clients have become more demanding in terms of the schedule, and they would like to have minimal downtime on their assets. We are constantly developing ways to innovate our services to meet the tight schedules, with the greatest emphasis on quality and safety.

SEPTEMBER 2017

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TOP 30 OILFIELD SERVICES COMPANIES

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14

NATIONAL DRILLING COMPANY

ABB

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n the Middle East, ABB has been serving the oil and gas industry for about three decades, and caters to its clientele in the MEA region through its hub in Abu Dhabi. ABB’s industrial offering is structured into four areas: a) robotics and motion; b) the power grid segment; c) industrial automation; and d) the electrification segment.

As for notable contracts, ABB is providing electrical distribution systems and equipment, power management and telecommunication systems for the entire Al Nasr offshore project, operated by ADNOC’s ADMA-OPCO, as part of an $18mn-worth deal from NPCC, the EPC contractor of the project.

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rilling services provider National Drilling Company (NDC), an ADNOC Group company, has carved out a name for itself of being the sole company managing the Emirati oil giant’s extensive drilling operations and meeting complex onshore and offshore needs. The company has achieved prominence as a drilling contractor due to its capabilities in drilling, electric logging, and wire line. Since 2010, when NDC had 28 rigs, it has expanded its operations in response to customer demand, with about 94 rigs in its fleet currently. Since Rig ND-1 was deployed in 1973, NDC’s drilling fleet has drilled over 7,000 wells. NDC, notably, also runs a Drilling Training Centre that trains young Emiratis for oil and gas operational roles.

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AVEVA

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he oil and gas sector is a core focus of engineering design and information management software provider AVEVA. The UK-headquartered company boasts of having over 4,000 customers globally, including many of the world’s leading owner/operators and EPC contractors. Many of these clients have relied on AVEVA’s technology for decades, particularly in the area of 3D Plant and Marine design visualisation for offshore operations. With ‘Digital Asset approach’ at the heart of its engagement strategy with the oil and gas industry, AVEVA has developed an application named ‘AVEVA Engage’, that allows operators to realise a Digital Asset through a touch-driven interface. It is intended to support a wide range of activities where intuitive and immediate access to the digital asset is valuable.

SEPTEMBER 2017

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TOP 30 OILFIELD SERVICES COMPANIES

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ROCKWELL AUTOMATION

GATES

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eing apparently the only original equipment manufacturer of drilling hose, and having the only API 7K-certified manufacturing facility in the region, puts Gates Engineering & Services in a leading position in the oilfield services market. The company’s offering includes a range of Gates Oilfield hose and couplings, which is made of high pressure mud hose, blow out prevention systems and BlackGold hydraulic hose. Besides, Gates is one of the few manufacturers in the region to have an API-certified 16C hose within its portfolio. The company also claims its response time to customer needs is commendable.

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igital oilfields is what forms the basis of Rockwell Automation’s portfolio for the oil and gas industry. The American industrial automation services major collaborates with its customers to provide systems to visualise and control production from the wellhead to custody transfer. Rockwell Automation helps customers maximise the recovery of existing reserves, optimise production and reduce downtime. Rockwell Automation is ardently promoting its digital oilfield-based platforms in the regional market, with the ‘ConnectedProduction’ range being the highlight.

Rockwell’s open systems technology simplifies integration of equipment from multiple vendors into a single control base for a ConnectedProduction.

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ALMANSOORI

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ith a net investment of over $350mn and a base in Abu Dhabi, AlMansoori Specialized Engineering’s commitment to oilfield services has resulted in the development of capabilities across: production testing and early production facillities; drill stem testing; coiled cubing; slickline and completion activities; logging tubing conveyed perforation; workover drilling: tubular and rig inspection; directional drilling; safety, technical safety training; manpower supply; oilfield manufacturing; and strategic joint ventures. Founded in 1977, AlMansoori Specialized Engineering currently operates in 26 countries across the Middle East, North Africa, East and South East Asia and employs about 3,000 engineering and technical staff. ADNOC and Aramco are its principal customers.

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SEPTEMBER 2017

TOP 30 OILFIELD SERVICES COMPANIES

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SAP

SCHNEIDER ELECTRIC

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s an enabler of digital transformation and digital oilfields, software systems major SAP’s technology allows its oil and gas clients achieve streamlined production and distribution processes.

Vis-à-vis its clientele, the ADNOC Group is using SAP’s digital platforms, as part of a long-term partnership, for the transformation of its IT services and business processes, across exploration, production and other vital aspects. Saudi Aramco is partnering with SAP to implement a digital business marketplace, that pivots on the company’s flagship product Ariba, for thousands of Aramco’s buyers and suppliers. Moreover, SAP is making significant investments in both KSA and the UAE to develop R&D and training centres to assist in boosting the digital capabilities of the local oil and gas industry.

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or E&P companies, performance is correlated to detailed technical, operational and economic knowledge of the assets in their portfolio. To cater to this key upstream need, French industrial automation and digitalisation major Schneider Electric joined hands with Halliburton subsidiary Landmark to connect its IoT-enabled open and interoperable system architecture and platform EcoStruxure with Landmark DecisionSpace, allowing operators to build a real-time digital representation of individual assets and the overall portfolio. Schneider Electric is also keenly promoting its Unit Performance Suite in the Gulf - a software-based system that helps oil and gas players package closed-loop, real-time optimisation with monitoring and workflow in a single solution.

ALI & SONS

he Ali & Sons Marine Engineering Factory (ASMEF), the offshore and marine division of Abu Dhabi-based business conglomerate Ali & Sons, has made it to the list by virtue of the laudable work it has been performing for the ADNOC Group, its biggest client, for years now. ASMEF is a diversified facility with activities that range from ship re-

SEPTEMBER 2017

pairs and shipbuilding, rig repairs and refurbishment, to making oil and gas modules and jackets, all the way down to operational maintenance. To its credit, ASMEF has successfully delivered brownfield services to ADCO and ZADCO in the form of e-houses, in addition to providing process modules structures, pipe racks, piping and manpower support.

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TOP 30 OILFIELD SERVICES COMPANIES

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23

CORETRAX

CHURCHILL DRILLING TOOLS

E

ngineering services company for wellbore clean and abandonment, Coretrax, has been rapidly expanding in the Middle East. The UK-based company has recently moved its Saudi Arabian operations into a bigger 130,000 sqft facility in Dammam.

The facility can accommodate up to 150 personnel and has a warehouse/training complex. The base is one of five for Coretrax in the Middle East, the others located in Abu Dhabi, Dubai, Kuwait and Kurdistan. Speaking of its upstream portfolio, Coretrax’s signature product - the CX-IST - can be deployed from the surface down the work string and inflated to provide a 100% seal between the tool and the casing wall. One of the benefits of this tool is that it gives operators a positive indication that the cement will be set in the correct place.

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C

hurchill Drilling Tools is a specialist engineering company, providing advanced drilling solutions for the oil and gas industry. The company’s success hinges on its patented drop-in dart technologies which help control the next generation of downhole tools - taking the industry forward in critical areas such as well control, drifting, mud circulation and stuck-pipe recovery. The company has had particular success in the MENA region. In early 2016, Churchill decided to set up base in the UAE and by October-end, its MENA business had exceeded initial budget by almost 100%. Churchill’s signature product, the HyPR HoleSaver, has had noteworthy success in the Gulf.

GLASSPOINT

f ever a company has achieved admirable success with its very first project, that too in a new region, such a fairy tale-like story has been that of Glasspoint. The US-based company first arrived in the Middle East in 2011 when it was awarded a pilot project with Petroleum Development Oman (PDO). GlassPoint completed the project in Oman on time, on budget

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and exceeding performance targets. This success led to the $600mn, 1,021 MW solar thermal project, called Miraah, currently being built for PDO in south Oman. On the back of this pioneering, solar power-based enhaced oil recovery project, Glasspoint continues to grow in the region, taking its expertise in this special form of EOR to clients in Kuwait and Bahrain.

SEPTEMBER 2017

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TOP 30 OILFIELD SERVICES COMPANIES

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FLEXITALLIC

C

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orrosion management specialist Flexitallic has made a mark in the regional oil and gas industry thanks to its advanced sealing systems and gaskets. With a comprehensive portfolio that includes flagship products like Thermiculite (high temperature sealing material), Corriculite (anti-corrosion sealing material), the FRG (Flange Rescue Gaskets) and the Change gasket, Flexitallic has been helping its oil and gas customers extend the longevity of their assets. With its regional base in Ras Al Khaimah, Flexitallic intends to strengthen its hold on the regional oil and gas market. It has already supplied its products to key upstream projects in the region.

WAVEFRONT

W

avefront Technology Solutions Inc., the American provider of fluid injection technology for well stimulation and Improved/ Enhanced Oil Recovery, has claimed a boost in its reputation in Kuwait by virtue of the customer satisfaction its flagship Powerwave brand has earned in the Gulf state. Through its strategic marketing partner, Gulf Drilling and Maintenance Company (GDMC), Wavefront continues to build the Powerwave brand in Kuwait. The success of Powerwave can be gauged from the fact that a regional customer informed Wavefront that the use of Powerwave during an acid well stimulation resulted in overall cost savings of 30% related to various operational aspects. Wavefront is now looking to replicate the success of Powerwave in oilfields in KSA, Oman and Bahrain.

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CGG

I

t is in Oman where French geosciences company CGG has witnessed the latest in its recent spate of successes in the region. CGG has won an extension, until the end of 2021, of its contract with Petroleum Development Oman (PDO) for the provision of subsurface imaging technology and services at its dedicated processing center (DPC) in Muscat. Within the terms of the extension, the DPC’s capacity, resources and responsibilities will be expanded to respond to the specific requirements of PDO’s data acquisition strategy. Earlier in February, CGG completed the acquisition and processing of the first-ever airborne gravity gradiometry (AGG) survey in Bahrain. Conducted on behalf of Bapco, this was the first commercial survey to be performed using CGG’s signature Falcon Plus AGG system.

SEPTEMBER 2017

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TOP 30 OILFIELD SERVICES COMPANIES

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WOOD GROUP

TWMA

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he planned acquisition of its fellow British rival Amec Foster Wheeler has highly elevated Aberdeen-based Wood Group’s stature in the global oilfield services market. The merger, when complete, is expected to reward Wood Group with an increased portfolio, larger client base and a broad region in which it can expand its business. So far, the company’s operation in Saudi Arabia has stood out in its regional business. In January this year, Wood Group secured a five-year, multi-million dollar framework agreement to continue to provide engineering and project management services to Saudi Aramco’s onshore capital programmes. The contract also includes three, one year extension options and is being delivered locally

by Wood Group’s base in Al Khobar.

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K-based TWMA has been able to position itself in the regional upstream market as one of the rare players in the environmental and drilling waste management services domain. The firm has been able to cast the spotlight on its flagship TCC RotoMill product which helps drill cuttings travel through the system, before separating those into the three constituent parts of oil, water and solids for recycling and reuse. In January, TWMA in partnership with ESNAAD-PJS celebrated reaching one million incident-free man hours on the ZADCO UZ750 project in Abu Dhabi, operated by ADNOC. The project’s work scope involved a whole host of TWMA’s products, including treatment of NAF drill cuttings with the industry-recognised TCC RotoMill technology.

HUAWEI

hinese digital systems provider Huawei is leading a campaign to impress upon the regional oil and gas industry the importance of digital asset management, and is assisting its customers to operate in a compact digitised environment. According to a senior executive managing Huawei’s enterprise business in the Middle East, the company is work-

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ing with energy majors like ADNOC, Aramco and the Kuwait Oil Company to implement a digital infrastructure in their operations. Less than a year back, Huawei installed a data centre for ADMA-OPCO that is chiefly tasked with processing the extraordinary volume of data generated and received from the exploration and production facets of the latter’s operations.

SEPTEMBER 2017

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A SPECIAL REPORT INTO A KEY SEGMENT OF THE REGIONAL UPSTREAM INDUSTRY

TECHNOLOGY FOCUS

OPERATORS SEEK NEW WAYS TO TRAIN ITS STAFF / P56

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MARKET FOCUS Amid downturn, oil and gas players are looking to recruit for specialised positions/ p52

KNOWLEDGE PARTNER

SPECIAL REPORT

SKILLS, TRAINING & CERTIFICATION

ADNOC is taking initiatives to prepare young Emiratis to lead the UAEâ&#x20AC;&#x2122;s energy sector / p54

We analyse the existing standard of skills in the regional oil and gas industry, gauge the type of training and certification courses that are in demand, and evaluate the initiatives undertaken by upstream operators to train their workforce

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COMMENT

EDITOR’S LETTER

Indrajit Sen is the deputy editor of Oil & Gas Middle East. He can be reached at: indrajit.sen@itp.com

More efforts need to be made With the oil and gas industry adopting technologies and practices that help it ‘do more with less’, the onus is now on operators to prepare a labour force that is trained to adapt to change

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here can be no doubt that the regional oil and gas industry has made significant leaps in modernising upstream operations. More importantly, unlike yesteryears, innovations in technologies, product development and operational methodologies, are happening indigenously, led by talented and spirited home-grown professionals.

Among the many things that establishes this fact is our Awards this year. The type of high-quality nominations that we have received for the various Awards categories, particularly for ‘Technical Innovation of the Year’, speak volumes of the impressive standard of research and development (R&D) activity being undertaken by various industry players.

Despite commendable efforts made by the regional oil and gas industry to enhance its level of technological competencies, the sector unfortunately continues to be perceived as one that allows little scope for implementation of technical concepts that have been embraced by other industries.

While other sectors, such as aviation or automobiles, have largely digitised their functioning, the nature of oil and gas business is such that digitalisation can only account for a fraction of operations.

However, viewed from a different perspective, the oil and gas sector also enjoys the unique distinction of being an industry in which conventional upstream practices can co-exist with modern industrial technologies, like digitalisation and automation. Therefore, regional operators, now more than ever, have to stress on hon-

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ing the skills of its existing workforce, and adequately train and absorb local talent, in order to facilitate overall progress of the industry.

Constantly training workers to implement new techniques and handle new products is crucial to the sector’s advancement. At a time when NOCs and IOCs are enforcing stringent measures to enforce operational excellence, the labour force, more than everything else, has to be equipped and trained to adopt these modern technologies and applications. The manpower also has to be equally ready to easily shift to different operational practices in these uncertain times.

However, along with skill development of the workforce in order to upgrade their skill sets and keep them abreast with advances in operational standards, importance must also be attached to attracting new local

talent towards the industry. Young graduates have been known to shy away from a career in oil and gas, and it is vital for the industry to try and bring them into the fold, for the sake of securing its own future.

Simply inducting youngsters as engineers, technicians, field operators, and the likes, isn’t going to be enough. Industry stakeholders have to invest in nurturing the capabilities of its young staff to create leaders of tomorrow, as regional oil major ADNOC – the Knowledge Partner for this Special Report – is doing.

The regional oil and gas sector’s endeavour should be to train and develop a human resources base that is capable of solving the complex operational issues, engaging in R&D locally to boost the industry’s potential, and, when required, to assume leadership roles for the purpose of driving the sector forward in future.

SEPTEMBER 2017

MARKET FOCUS

Demand for technical roles remains steady Report from LinkedIn suggests oil and gas recruiters are looking to hire candidates for niche functions such as project management and engineering roles WORDS: INDRAJIT SEN

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he region’s job market is evolving as a result of many socioeconomic factors.

In this environment, companies are now assessing their recruitment strategy and ensuring it is aligned with the priorities of today’s professionals. Job seekers on the other hand are getting into the specifics about a company’s culture and values and learning more about their long-term prospects before jumping into a role.

LinkedIn’s MENA Recruiting Trends 2017 report reveals that talent acquisition will continue to be a key focus for MENA companies

in 2017 and recruiters will be even busier this year, focussing on quality of hiring. Jobs pertaining to operations, sales and engineering will be the highest priority roles to fill in 2017. Additionally, when the current top skills in demand by employers in the UAE are evaluated, the online recruitment and business networking portal found that six out of 10 jobs this year are tech-related so these jobs will also be in demand throughout 2017.

LinkedIn also expects that 2017 will be a very busy year for recruiting leaders, as according to LinkedIn’s MENA Recruiting Trends 2017 report, 81% of talent leaders feel that talent

is the number one priority in their organisation and over 60% of teams are preparing for an increased hiring.

According to the LinkedIn industry talent report, published in July 2017, Kuwait registered the maximum employment growth (+9.4%) over the past year in the oil and gas sector. This was followed by Saudi Arabia (+8%) and the UAE (+7.6%). LinkedIn has also made an interesting observation; its report found that the construction industry saw more of its professionals moving to oil and gas, followed by mechanical or industrial engineering, Information Technology (IT) and services, utilities and civil engineering.

As per LinkedIn’s July 2017 Industry Talent report, the top most skill sought after by recruiting companies

THE ONLY BPA AUDITED ENERGY TITLE IN THE MIDDLE EAST SEPTEMBER 2017

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MARKET FOCUS

EMPLOYMENT GROWTH IN THE MIDDLE EAST Country-wise growth in the oil and gas industry • Kuwait +9.4% • Saudi Arabia +8% • United Arab Emirates +7.6% • Iraq +6.3% • Oman +5.2% • Bahrain -0.29% • Lebanon -4.4%

were pertaining to oil and gas, followed by management skills, gas, engineering and lastly project management.

LinkedIn also found that most companies are looking to hire candidates in the positions related to project management and engineering within the energy sector.

As companies gravitate towards modernisation and a more modern, productive workforce, employees are increasingly being put through specialised and advanced training programmes to advance their skills and capabilities. This fact is echoed by Islam Abdallah Hassan Ahmed, the UAE-based general manager for Consulting and Training Operations for GCC region at Intertek.

According to Ahmed, even with tougher market conditions, training remains a vital and indispensable

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part of operations in oil and gas companies. He believes that the adverse impact of below par oil prices and revenues can in part be tempered with proper training, leading to cost-efficient procedures, practical solutions and production optimisation.

“In the oil and gas sector, perhaps more than any other, you need team members whose skill sets are as current as possible and this entails regular periodic training and constant upgrades to keep up with technological advances (globally),” Ahmed explains.

“For training services, optimising the costs means customising programmes that adhere to specific, pre-determined criteria including practical, on-the-job training

workshops and courses,” he adds.

The demand for specific technical training is presently high, since it is vital for oil and gas professionals to be up-to-date on all emerging technologies and applications.

At the same time, the prevailing industry downturn has transformed the business landscape in a way that requires a shift in thinking with respect to the traditional business management model.

Consistent drive for innovation and ability to generate and provide new and cost-effective offering to the customers are key factors. This results in the need for innovative cross-discipline training in aspects such as operations, project management, HSE and In-Country Value (ICV) creation.

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KNOWLEDGE PARTNER

ADNOC’S ENDEAVOUR TO NURTURE LOCAL TALENT ADNOC is leading an eclectic campaign that ranges from skillset upgradation of its workforce, to running technical training institutes, to preparing young Emiratis for leadership roles WORDS: INDRAJIT SEN

T 54

hat National Oil Companies (NOCs) in the region are the biggest revenue earners for their respective countries is a fact that has been well-established since decades. However, what truly is the distinguishing factor among NOCs is the ability to lead socio-economic reform and prepare the next generation of the workforce to assume charge of the oil and gas industry – a role that NOCs in the region are being increasingly called upon to play by the governments.

Emirati oil giant ADNOC is one such NOC that has ardently taken upon itself the mantle of national human resource development, for the cause of enhancing the standard of operational skills, and to attract fresh talent towards Abu Dhabi’s/UAE’s oil and gas industry – not to mean that the company wasn’t displaying such commitments earlier.

From consistently endeavouring to elevate the level of technical skills of its existing workforce to ensure they are at par with the global standard, to training and encouraging young graduates to assume positions within the organisation, the Abu Dhabi National Oil Company (ADNOC) is fervently pursuing the ambitious objectives it has laid out in its 2030 growth strategy.

While announcing its strategic growth agenda in July, ADNOC made public its landmark decision to consider the part-privatisation of select businesses within the group structure, through a potential stock listing, in order to drive efficiency and optimise value from assets in its organisational portfolio. Also, as part of the plan, ADNOC said it has developed a clear set of criteria by which it will select new partners, including ‘the ability of partners SEPTEMBER 2017

Dr Sultan Ahmed Al Jaber, UAE Minister of State and Group CEO of ADNOC.

to secure better access to the world’s fastest growing target markets for ADNOC’s products; the willingness to contribute technical expertise and co-develop new technologies alongside ADNOC’s own capabilities; and, the potential to co-invest strategically across different parts of a more integrated organisational value chain’.

ADNOC will also look to ‘broaden both the range and type of partners it works with, to include, for example, specialist infrastructure and energy investors, long-term global investment institutions and other energy, services and petrochemical players, while also deepening its engagement with existing partners’.

Most importantly, ADNOC hopes the new initiative will create new, high-skilled jobs and attractive career opportunities across all parts

of the ADNOC value chain. It is also expected to boost foreign direct investment, technology and knowledge transfer into the UAE. Commenting on the pragmatic approach adopted by ADNOC, the state-owned oil giant’s CEO and UAE Minister of State Dr Sultan Ahmed Al Jaber, said: “Shifting global trends are creating a new energy landscape where new rules of engagement are required.

In this new energy era, we need more creative strategies and more flexible business models to capture growth. Expanding our partnership model across the whole of our value chain and more actively managing our portfolio will allow us to both unlock value and reinvest capital into new, high growth opportunities. It will enable us to accelerate our growth, increase revenue and improve integration across the arabianoilandgas.com

KNOWLEDGE PARTNER

ADNOC value chain. It will also spur domestic economic growth as well as bring new jobs and benefits to the UAE and its citizens.”

A major example of ADNOC’s commitment towards Emiratisation and local skill development are the several technical training institutes it runs in Abu Dhabi, and many more such units and training programmes that it sponsors. This fact was manifested in the passing out of 350 Emirati graduates from the National Drilling Training Centre, run

by ADNOC Group company National Drilling Company (NDC) in March this year.

NDC’s Drilling Training Centre is oneof-a-kind in the region, with its advanced facilities, proficient instructors and training staff. The centre offers tailor-made training programmes and customised courses to develop a highly competent, confident, and professional workforce capable of operating ADNOC’s technologically-advanced rigs, while maintaining the highest levels of HSE and asset integrity. The centre is equipped with a drilling rig simulation system. The centerpiece of the system is a simulator with virtual-reality screens, with numerous gauges, joysticks, control valves, levers and buttons.

The simulator helps familiarise trainees with the well control operations of a rig, and introduces them to the work environment in the drilling locations.

The 350 graduates were trained to take up positions within ADNOC, ranging from rig managers to drillers, mechanics and other functions essential for efficient and safe onshore and offshore well-drilling operations.

They are meant to join the 95 UAE nationals who completed their training last year and took up jobs at ADNOC’s onshore and offshore rigs and other operational locations. A further 500 Emirati trainees are enrolled in the various training programmes offered by NDC’s Drilling

Training Centre.

ADNOC’s 2030 growth strategy also includes a revitalised approach to personal development and training, which has resulted in a more robust youth development programme designed to provide greater on-the-job training and mobility opportunities for new talent within ADNOC. These programmes, supported by life-long learning, provide a mix of handson experience and coaching. A key part of the new approach is the ADNOC ‘Future Leaders program’, that will provide ADNOC’s ‘most talented staff the opportunity to succeed at the highest levels, giving them the skills, knowledge and experience necessary to drive the next wave of smart growth’.

As part of this individual development initiative, ADNOC hosted the latest in its series of ADNOC Youth Circles, in Ruwais last month, to discuss how young Emiratis can thrive professionally, while working at remote oil and gas sites, and develop the leadership skills that will allow them to contribute to ADNOC’s future growth.

“SHIFTING GLOBAL TRENDS ARE CREATING A NEW ENERGY LANDSCAPE WHERE NEW RULES OF ENGAGEMENT ARE REQUIRED. IN THIS NEW ENERGY ERA, WE NEED MORE CREATIVE STRATEGIES AND MORE FLEXIBLE BUSINESS MODELS TO CAPTURE GROWTH.” arabianoilandgas.com

Held in partnership with the Emirates Youth Council, the ADNOC Youth Circles empower the organisation’s young Emirati talent to voice constructive opinion on a broad range of challenges and to mobilise fresh and innovative thinking in line with the UAE leadership’s ambition to give them opportunities to fulfil their potential.

Around 45 ADNOC Group employees attended the forum, which included presentations on, and discussions about, ADNOC’s evolution into a more commercially-minded and performance-driven company, and the critical contribution of all employees in the growth of the company. At the event, ADNOC group chief executive Dr Al Jaber expressed pleasure that the Youth Circle had been held in Ruwais, for the first time, stressing the importance of working on sites for young Emiratis to gain the practical experience that helps to build successful careers. He stressed ADNOC’s keenness to communicate with young people and to listen to their ideas and suggestions to enable them to build a bright future and to contribute effectively to realising the UAE’s ambitious socio-economic goals.

“The future will be shaped by our youth and if we want to create the leaders of tomorrow, they need to be valuable contributors today.

These Youth Circles provide a platform for constructive dialogue on how each individual can contribute to the continued development and prosperity of the nation,” Dr Al Jaber commented at the event.

SEPTEMBER 2017

55

TECHNOLOGY FOCUS

WORDS: INDRAJIT SEN

TRAINED WORKFORCE KEY TO ACHIEVING OPEX Technological advances in the oil and gas sector has led to a rise in demand for suitable training courses, as operators look to prepare their staff to respond to a changing industry

56

T

he phase through which the oil and gas industry is traversing is making it necessary for operators to constantly experiment in every operational aspect, in order to ascertain what would be most efficient in terms of costs, operational excellence and health & safety. Industry players are having to engage in trial and error tests to understand which products, technologies and operational methods would work best for them.

This has made it imperative for companies to consistently upgrade the skill sets of its workforce, train them in the latest technical and operational trends, and keep them prepared to be able to competently handle swift changes in operating models. In a world driven by operational excellence goals, the key to the success of a company, and the industry as a whole, depends on innovation.

Experts suggest that Non-Destructive Testing or NDT thus SEPTEMBER 2017

becomes imperative when field servicing is required. Due to its various scientifically-proven techniques, a number of industry sectors, besides oil and gas, such as fabrication, construction, maritime, aerospace and medical, have resorted to it.

With regards to the oil and gas industry, besides training staff in the standard NDT methods, a company must also educate them in the examination techniques associated with drilling and production, especially since the application may require a combination of methods and techniques to determine and classify a componentâ&#x20AC;&#x2122;s final condition with specialised equipment. â&#x20AC;&#x153;Hence, a good foundation in product technology is essential in NDT. An inspector should not only understand what he/she is doing with NDT, but also how the component was produced and what the environment will do to it during its life cycle. The fundamentals of NDT have not changed that much over the years and neither arabianoilandgas.com

TECHNOLOGY FOCUS

“THE CURRENT OIL AND GAS DOWNTURN HAS HAD AN EFFECT ON MANY BUSINESSES. HOWEVER REGARDLESS OF THE DOWNTURN, SAFETY ALWAYS COMES FIRST AND COMPANIES CANNOT COMPRISE ON THIS.” ROBERT HASSETT, GENERAL MANAGER – MEA, ATEC SERVICES.

should the responsibility of the inspector to use good judgement when challenged in a particular situation,” Chris Muir, Drill Stem/ NDT QA Consultant at Abu Dhabi-based Specification Management Consultants, says.

The oil and gas industry has been increasingly adopting digital automation techniques and organisations have been keen enough to educate its employees on the ‘new thing’.

Speaking on the benefits of automation, Robert Hassett, general manager – Middle East & Africa, ATEC Services says: “Oil and gas exploration today happens in some of the most remote places in the world. Instruments constantly read data on both onshore and offshore facilities; the information is analysed and is processed back to control centres with banks of computers, which feed their results to real-time operations centres that adjust oil flows to optimise production and minimise downtimes.”

However, automation also has its limitations, especially where field servicing comes into play. “Personnel are still required on the facility and hazardous area training is a mandatory requirement by all end users,” Hassett says.

Operating within a potentially hazardous environment can be challenging. Proper management of these areas requires competence, experience, careful planning, specialised installation and maintenance skills, plus a thorough understanding of operational safety practices. Safety of workers therefore comes into question as NDT operations at times requires them to be deployed in hostile conditions. “NDT is conducted in every part of the world, therefore awareness of the conditions need to be taken into consideration to understand what challenges the workers would face and they might be exposed to during operations. These are identified prior to the inspector performing his/her duties,” Muir explains.

Industry analysts say training courses in drilling operations have been most in demand off late. Moreover, as the industry advances, the NDT is changing from raw manufacturing and process inspections to ‘more finished product examination requirements’. arabianoilandgas.com

“The most popular training courses that are in high demand is our Ex 01 – Ex 04 courses, one of the driving forces behind this is that companies are becoming more aware of the dangers when working in hazardous areas and they are more focus on getting their personnel trained to a higher level of awareness,” Hassett says.

He explains: “CompEx Ex 01 – Ex 04 this course provides competence–based training and assessment for electrical and instrumentation personnel working in hazardous areas. Practical ‘hands–on’ training and assessment takes place in a realistic simulated environment, giving attendees a comprehensive learning experience which will transfer to their working setting and enhance the real-world experience.”

HSE will continue to be the first step, as well as the focal point of the regional industry’s training programme. “The current downturn in the oil and gas sector has had an effect on many businesses.

However regardless of the downturn, safety always comes first and companies cannot comprise on this. So we have not been affected in our training division for CompEx,” Hassett says.

“Safe working practices are key for all companies and continuous improvement to ensure better HSE conditions is critical to survive in the oil and gas sector. The Middle East is becoming one of the leaders in bringing together all stakeholders and industry leaders to share best practices and this will help in changing the mindset of all people who work in the industry,” Hassett says.

SEPTEMBER 2017

57

LAST WORD

ART OF RECRUITMENT Oil and gas companies in the UAE are required to abide by well-structured rules and regulations.

Marcin Kubarek, manager - Knowledge and Content at Fragomen, describes those requirements

O

58

il and gas sector continues to play a significant role in the UAE economy. However, due to the complex nature of the industry, there are a number of considerations that must be made when hiring staff for projects. This is not limited to oil producing companies, but also applies to contracting firms who support oil extraction and other processes involved in the delivery of the final product. Failing to follow the correct procedures could lead to project delays, business disruption or even penalties.

Companies involved in oil and gas are mandated to have an ‘onshore and offshore oil and gas field and facilities services’ activity listed on their commercial license and approval from the Supreme Petroleum Council in Abu Dhabi (SPC), regardless of the area of business. This includes service providers, construction contractors, and even catering suppliers working with oil and gas firms.

In order to obtain the SPC’s endorsement, a company must comply with certain requirements including a corporate set up in Abu Dhabi or the condition that the sponsor (company agent) is a UAE national. Companies located in free zones are not eligible for SPC approval, although, an MoU between the SPC and the Masdar City Free Zone has been signed to enable authorisation under special conditions.

For workers who are not sponsored in the UAE, long-term assignments can be granted upon obtaining an employment

residence permit, which is usually valid for up to two years and requires a UAE payroll and a signed contract issued in the UAE. For short-term requirements, unsponsored workers will need either a ‘service’ or ‘mission’ visa. Both facilitate a single entry to the UAE, with the service visa allowing for stays up to 14 days and the mission visa allowing for up to 90 days.

Foreign nationals who are sponsored by a company in the mainland may receive a temporary work permit under the sponsorship of an oil and gas-licensed firm in Abu Dhabi, while GCC nationals can obtain a labour card issued by the Ministry of Human Resources and Emiratisation (MOHRE). If a contracting company is not legally established in Abu Dhabi, secondment of employees to a commercial agent or distributor licensed in the capital may be considered upon meeting compliance

“ALL COMPANIES IN THE UAE NEED TO CONSIDER THE NATIONAL PROGRAM FOR EMIRATISATION, REQUIRING RECRUITERS TO SEEK EMIRATI TALENT FOR VACANCIES THROUGH AN ELECTRONIC PLATFORM CALLED THE ‘TAWTEEN GATE’.”

SEPTEMBER 2017

measures and pre-defined agreements.

A final note to consider for all companies in the UAE is the National Program for Emiratisation, initiated by the MOHRE, requiring recruiters to seek Emirati talent for vacancies through an electronic platform called ‘Tawteen Gate’ before the offer is extended to foreign nationals. The exercise, known as a labour market testing, is expected to benefit the UAE economy and not to be a burden for companies considering the size of the private sector in the UAE. It may however delay the process of recruiting desired candidates if no suitable national candidate is identified, making it important for companies to start the recruitment process as early as possible.

With strict regulations in the UAE oil and gas sector, global project managers must take into account a number of factors before committing to deadlines and milestones for stakeholders. In addition to the time needed for visa applications, security passes and labour market testing, other considerations that may affect project success include legalisation of employee documents for immigration purposes, employee security screenings and the available quota for visa sponsorships. arabianoilandgas.com

PROJECT FOCUS

BP – Block 61, Khazzan Gas Fields Development Phase 1 – overview

G

as produced from the Khazzan field will be used to meet rising demand from new industries being built in Sohar, additional liquefied natural gas (LNG) capacity at Sur, and a string of enhanced oil recovery (EOR) projects. The field contains a mix of sour and sweet gas, which is trapped in tight reservoirs. Khazzan, located west of the giant Saih Rawl field, was discovered

by India’s Essar Oil in 2001 and was originally part of the concession area owned by Petroleum Development Oman (PDO). The gas from the Khazan reservoir will be delivered to the national pipeline network of the Ministry of Oil and Gas.

Budget:

$16bn

PROJECT SCHEDULE

PROJECT FINANCE The Oman Oil Company (OOC) and BP signed a gas sales agreement and an amended production sharing agreement for the development of the Khazzan gas field.

Under the terms of this agreement, BP operates Block 61 and holds a 60% share in the concession, while OOC holds a 40% share. As of June 5th, 2016, the investment from the operators in the first phase of the project reportedly reached $13bn.

FEED

Q4 2007

EPC ITB

Q4 2012

Engineering and procurement

Q1 2014

PMC

Q1 2014

Construction

Q1 2015

Completed

Q4 2017

CONTRACTORS Contract Type

Pre-Qualified

Bidders

Awarded

PMC

-

-

• Petrofac • Jacobs Engineering Group

EPC

-

-

• Petrofac • CCC - Consolidated Contracting Company • Veolia • Carillion Alawi • Galfar Engineering & Contracting SAOG • Gulf Petrochemical Services • Arabian Industries • TOCO

FEED

-

-

• WorleyParsons

Sub-contractors

-

-

• WorleyParsons

arabianoilandgas.com

SEPTEMBER 2017

59

PROJECT FOCUS

PROJECT STATUS

Date

Status

12 Jul 2017

The commissioning work is in progress. Production of natural gas from the field will begin by September at the latest.

BP successfully completes the drilling of the 50th and final

24 May 2017

well at Block 61. The first 50 wells will enable production of one billion cubic feet of gas a day (bcf/d).

GPS has completed all the works on the 2-inch pipeline and is

05 Apr 2017

currently conducting hydro testing on the 10-inch condensate export pipeline.

The first natural gas production will start in Q4 2017. BP will

Feb 2017

start commissioning of the CPF and, in August, one of the processing trains will start operation; the second will follow later. The vast majority of the infrastructure is already in place.

Phase 1 of the development is 80% complete.

The development’s completed facilities include: – 19 wells – 56km of roads

60

26 Oct 2016

– Power lines – Telecom networks – Water treatment plant – Waste management area – Power substation Work on the central processing facility (CPF) is behind schedule,

25 Sep 2016

with 75% completed so far. The joint venture of CCC and Petrofac requests an extension of two months.

05 Jun 2016

24 Mar 2016

The completion rate of the works to develop the Khazan field and its infrastructure project exceeds 70%.

BP Oman announces that Phase 1 of the project is now 65% complete.

More than 45% of project and infrastructure works are

04 Nov 2015

complete and 12 wells are drilled. Seven drilling rigs are currently working in the field.

BP Oman completes the construction of a 55km road near

02 Sep 2015

the existing main road in Saih Rawl leading to its facilities, connecting the CPF area.

BP awards Carillion Alawi a contract to build the operational

15 Jul 2015

base and accommodation complex for the project. The contract has a total value of US $124.2mn.

SEPTEMBER 2017

PROJECT SCOPE The field development Phase 1 project has been designed with: • Fracturing equipment • Well-testing facilities • 500km of flowlines • Central processing facilities • Gas processing plant with 1.2 billion cf/d capacity • 100km export gas pipeline • Infrastructure • Waste water treatment facility • Well drilling The project will be developed in packages.

Package 1 includes the flowlines, central processing facilities, gas central processing plant, export pipeline, and all associated facilities.

Package 2 includes early development, gas gathering, wellsides, and export system (GWES) facilities, building, and infrastructure work.

RELATED PROJECTS BP - Block 61 - Ghazeer Field Development BP - Block 61 - Khazzan and Makarem Gas Fields Development BP - Block 61 - Khazzan Gas Fields Development Phase 1 - Central Processing Facility BP - Block 61 - Khazzan Gas Fields Development Phase 1 - Consolidated Accommodation Camp BP - Block 61 - Khazzan Gas Fields Development Phase 1 - Package 1 BP - Block 61 - Khazzan Gas Fields Development Phase 1 - Package 2

FAST FACTS Name of Client British Petroleum (BP) Estimated Budget ($ US) 15,000,000,000 Revised Budget ($ US) 16,000,000,000 Facility Type Gas Field Development Sector Gas Status Construction Location Al Dahirah Project Start Q4 2007 End Date Q4 2017 Last Updated 12 July, 2017

Contract Value ($ US) 13,000,000,000 Award Date Q1 2014 FEED – WorleyParsons PMC – Petrofac – Jacobs Engineering Group Main Contractors – Petrofac – CCC – Veolia – Carillion Alawi – Galfar Engineering & Contracting SAOG – Gulf Petrochemical Services – Arabian Industries – TOCO arabianoilandgas.com

PROJECTS

Ongoing and upcoming projects Information is supplied by DMS Projects GCC GAS â&#x20AC;&#x201C; AUGUST 2017 Project

Country

City/ Region

Facility

Budget

Status

Completion Date

ADCO- Bab Gas Compression Phase 3

UAE

Gas

Gas Compression

27,000,000

EPC ITB

Q4 2022

ADCO- Bab TH-F Peripheral Development

UAE

Oil, Gas

Nitrogen

400,000,000

On Hold

Q4 2017

ADGAS- Integrated Facilities Project (IGD-S) Expansion (Phase 4)

UAE

Gas

Gas Field Development

650,000,000

EPC ITB

Q3 2019

ADGAS- Integrated Gas Development (IGD) - Expansion (Overview)

UAE

Gas

Gas Field Development

1,570,000,000

Construction

Q3 2019

ADGAS- Integrated Gas Development (IGD) - Expansion (Phase 1)

UAE

Gas

Gas Field Development

500,000,000

Construction

Q4 2017

ADGAS- Integrated Gas Development (IGD) - Expansion (Phase 2)

UAE

Gas

Gas Field Development

420,000,000

On Hold

Q1 2019

ADMA OPCO- Nitrogen Plant Upgrade

UAE

Gas

Nitrogen

55,000,000

Design

Q1 2017

ADMA-OPCO - Nasr Full Field Development - (Overview)

UAE

Oil, Gas, Offshore

Oil Field Development

1,700,000,000

Construction

Q4 2018

ADMA-OPCO - SARB Offshore Oil Field Development - Package 2

UAE

Oil, Gas

Oil & Gas Field

500,000,000

Construction

Q2 2017

ADMA-OPCO - SARB Offshore Oil Field Development - Package 4

UAE

Oil, Gas

Gas Processing

455,000,000

Construction

Q4 2017

ADNOC - LNG Import Terminal

UAE

Gas

LNG Storage Tanks

1,000,000,000

Feasibility Study

Q3 2018

Al Hosn Gas- Shah Field- Expansion

UAE

Gas

Gas Network

9,500,000,000

FEED

Q4 2021

Bahrain LNG - Liquefied Natural Gas Receiving and Regasification Terminal

Bahrain

Gas, Offshore

Liquefied Natural Gas (LNG)

660,000,000

Construction

Q4 2018

Banagas - Central Gas Plant Expansion

Bahrain

Gas

Gas Treatment Plant

600,000,000

Construction

Q2 2019

Bapco - Offshore Blocks

Bahrain

Oil, Gas, Offshore

Exploration

80,000,000

EPC ITB

Q2 2020

BNGEC - Fuel Pipelines And Storage Facilities Expansion

Bahrain

Gas, Pipeline

Gas Storage Tanks

80,000,000

Construction

Q3 2018

BP - Block 61 - Ghazeer Field Development

Oman

Gas

Gas Field Development

5,000,000,000

EPC ITB

Q4 2020

BP - Block 61 - Khazzan and Makarem Gas Fields Development

Oman

Gas

Gas Field Development

24,000,000,000

Construction

Q1 2022

BP - Block 61 - Khazzan Gas Fields Development - Phase 1 - Central Processing Facility

Oman

Gas

Gas Processing

1,200,000,000

Construction

Q4 2017

BP - Block 61 - Khazzan Gas Fields Development - Phase 1 - Overview

Oman

Gas

Gas Field Development

15,000,000,000

Construction

Q4 2017

BP - Block 61 - Khazzan Gas Fields Development - Phase 1 - Package 1

Oman

Gas

Gas Field Development

1,500,000,000

Construction

Q4 2018

BP - Block 61 - Khazzan Gas Fields Development - Phase 1 - Package 2

Oman

Gas

Gas Field Development

130,000,000

Construction

Q3 2017

DNO - Block 8 Oil & Gas Field Development

Oman

Gas, Offshore

Gas Field

45,000,000

Construction

Q4 2018

Dolphin Energy - Northern Emirate Pipeline (NEP)

UAE

Gas, Pipeline

Gas Pipeline

45,000,000

EPC ITB

Q3 2022

DRPIC - Floating Storage Regasification Unit (FSRU)

Oman

Gas

LNG Regassification

500,000,000

Feasibility Study

Q3 2021

Emirates LNG - Fujairah LNG

UAE

Gas

Liquefied Natural Gas (LNG)

3,000,000,000

Feasibility Study

Q4 2018

GASCO - Bab Sour Gas Field Development

UAE

Gas

Gas Processing

10,000,000,000

On Hold

Q4 2018

GASCO - Black Powder Management

UAE

Gas, Pipeline

Gas Pipeline

41,000,000

Construction

Q4 2017

GASCO - Integrated Gas Development (IGD) - Expansion (Onshore Pipeline)

UAE

Oil, Gas

Gas Production

7,100,000,000

Construction

Q4 2017

GASCO - Taweelah - Gas Compressor Station

UAE

Gas

Gas Processing

70,000,000

Engineering & Procurement

Q1 2019

GASCO - Thammama F Early Nitrogen Rejection Unit

UAE

Gas

Gas Processing

500,000,000

On Hold

Q4 2017

GASCO - Yas - Mina Zayed Gas Pipeline

UAE

Oil, Gas

Gas Processing

45,000,000

Construction

Q3 2019

GASCO- Asab 1- Control System Upgrade

UAE

Gas

Distributed Control System (DCS)

55,000,000

Engineering & Procurement

Q4 2018

GASCO- Habshan 5 - New Compression Facility

UAE

Gas

Gas Processing

800,000,000

On Hold

Q1 2019

GASCO- HP Connection- New NGV Filling Stations (Phase 2A)

UAE

Gas

Gas Pipeline

10,000,000,000

On Hold

Q1 2018

GASCO- Ruwais - Train 1 & 2 Process Cooling Fire Water Pumps Replacement

UAE

Gas

Gas Processing

80,000,000

FEED

Q2 2022

arabianoilandgas.com

SEPTEMBER 2017

61

PROJECTS

62

Project

Country

City/ Region

Facility

Budget

Status

Completion Date

Khafji Joint Operations (KJO) - Dorra Gas Field Development (Overview)

Saudi Arabia

Gas, Offshore

Gas Field Development

5,000,000,000

On Hold

Q2 2017

KIPIC - Al Zour LNG Import And Regasification Terminal

Kuwait

Gas

Liquefied Natural Gas (LNG)

3,330,000,000

Engineering & Procurement

Q3 2020

KNPC - Mina Al Ahmadi Refinery Fifth Gas Train

Kuwait

Gas

Gas Production

2,000,000,000

Construction

Q1 2018

KOC - North Kuwait Gathering Center (GC) 24 Upgrade

Kuwait

Gas

Gas Gathering Centre

150,000,000

FEED

Q1 2018

KOC - North Kuwait Gathering Center (GC) 32

Kuwait

Gas

Gas Gathering Centre

1,650,000,000

Engineering & Procurement

Q3 2021

KOC - North Kuwait Manifold Gathering System for Gathering Centers (GC) 29, 30, 31

Kuwait

Gas

Gas Gathering Centre

2,500,000,000

Construction

Q4 2017

NOGA - Gazprom - Liquefied Natural Gas (LNG) Distribution Centre

Bahrain

Gas, Offshore

Liquefied Natural Gas (LNG)

600,000,000

Feasibility Study

Q1 2019

Oman Gas Company - Murayrat PLS Upgrade

Oman

Gas

Gas Processing

100,000,000

Construction

Q4 2017

Oman Gas Company - Muscat Gas Network

Oman

Gas

Gas Network

100,000,000

Feasibility Study

Q4 2022

Oman Gas Company - Salalah Loopline

Oman

Gas

Gas Pipeline

70,000,000

Commissioning

Q2 2017

Oman Gas Company - Salalah LPG Extraction

Oman

Gas

Liquefied Petroleum Gas (LPG)

650,000,000

Engineering & Procurement

Q1 2020

Orpic - Liwa Plastics Industries Complex - NGL Extraction Units

Oman

Gas

Natural Gas Liquefaction (NGL)

700,000,000

Engineering & Procurement

Q1 2019

Orpic - Nitrogen Gas Plant

Oman

Gas

Nitrogen

50,000,000

Engineering & Procurement

Q1 2019

PDO - Kauther Depletion Compression Phase 2 (KDC2)

Oman

Gas

Gas Compression

190,000,000

Construction

Q2 2019

PDO - Khulud Tight Gas Development Project (KLD)

Oman

Gas

Gas Field Development

300,000,000

EPC ITB

Q2 2020

PDO - Mabrouk Deep Phase-3 (Gathering & Surface Facilities)

Oman

Gas

Gas Gathering

200,000,000

Construction

Q4 2017

PDO - Rabab-Harweel Integrated Plant (RHIP) - Overview

Oman

Gas

Gas Processing

3,000,000,000

Construction

Q1 2019

PDO - Saih Nahaydah Depletion Compression Phase-2 (SNDC2)

Oman

Gas

Gas Compression

180,000,000

Construction

Q2 2019

PDO - Saih Nihayda Condensate Stabilization Plant

Oman

Gas

Gas Treatment Plant

115,000,000

Construction

Q4 2017

PDO - SRCPP & SNGP Condensate Recovery Maximisation

Oman

Gas

Gas Processing

300,000,000

Construction

Q1 2017

PDO - Yibal Depletion Compression - Phase 3 (Y3DC)

Oman

Gas

Gas Processing

300,000,000

Construction

Q4 2018

Saudi Aramco - Arabiyah and Hasbah Gas Field Development

Saudi Arabia

Gas, Offshore

Gas Field

3,000,000,000

Construction

Q1 2019

Saudi Aramco - Fadhili Gas Plant (Overview)

Saudi Arabia

Gas

Gas Treatment Plant

6,600,000,000

Construction

Q1 2021

Saudi Aramco - Fadhili Gas Plant - Downstream Packages

Saudi Arabia

Gas

Gas Processing

650,000,000

Construction

Q1 2018

Saudi Aramco - Fadhili Gas Plant - Industrial Support Facilities (FISF)

Saudi Arabia

Gas, Construction

Gas Treatment Plant

100,000,000

Construction

Q4 2017

Saudi Aramco - Fadhili Gas Plant - Main Processing Facilities (Package 1)

Saudi Arabia

Gas

Gas Treatment Plant

2,500,000,000

Construction

Q1 2021

Saudi Aramco - Fadhili Gas Plant - Offsites & Utilities (Package 3)

Saudi Arabia

Gas

Gas Field

2,000,000,000

Construction

Q1 2021

Saudi Aramco - Fadhili Gas Plant - Sulphur Recovery Unit SRU (Package 2)

Saudi Arabia

Gas

Gas Treatment Plant

2,500,000,000

Construction

Q2 2021

Saudi Aramco - Haradh Gas Increment Program - Freeflow Pipelines

Saudi Arabia

Gas, Pipeline

Flowlines

470,000,000

Project Announced

Q1 2020

Saudi Aramco - Haradh Gas Increment Program - North Haradh Field Gas Compression Facilities

Saudi Arabia

Gas

Gas Compression

1,200,000,000

EPC ITB

Q1 2020

Saudi Aramco - Haradh Gas Increment Program - South Haradh Field Gas Compression Facilities

Saudi Arabia

Gas

Gas Compression

1,200,000,000

EPC ITB

Q1 2020

Saudi Aramco - Haradh Gas Increment Program - Satellite Gas Compression Facilities

Saudi Arabia

Gas

Gas Compression

1,200,000,000

EPC ITB

Q1 2020

Saudi Aramco - Hasbah Field Increment II

Saudi Arabia

Gas, Offshore

Gas Field

1,600,000,000

Construction

Q2 2019

Saudi Aramco - Hawiyah Gas Plant Expansion

Saudi Arabia

Gas

Gas Processing

1,200,000,000

EPC ITB

Q1 2020

Saudi Aramco - Liquefied Gas Station For Shedgum & Uthmaniya Gas Plants

Saudi Arabia

Gas

Natural Gas Liquefaction (NGL)

74,000,000

Construction

Q3 2018

Saudi Aramco - Liquefied Natural Gas (LNG) Receiving Terminal

Saudi Arabia

Gas

Liquefied Natural Gas (LNG)

1,000,000,000

Project Announced

N/A

Saudi Aramco - Marjan, Berri, Zuluf and Safaniyah IV Expansion - (Overview)

Saudi Arabia

Oil, Gas, Offshore

Oil & Gas Field

7,000,000,000

Construction

Q1 2022

Saudi Aramco - Master Gas System Expansion (MGSE) (Overview)

Saudi Arabia

Gas

Natural Gas Liquefaction (NGL)

4,050,000,000

Construction

Q3 2019

Saudi Aramco - Midyan Gas Processing Plant

Saudi Arabia

Gas

Gas Processing

800,000,000

Construction

Q4 2016

SEPTEMBER 2017

arabianoilandgas.com

PROJECTS

Project

Country

City/ Region

Facility

Budget

Status

Completion Date

Saudi Aramco - Unconventional Gas Program - Shale Gas Production

Saudi Arabia

Gas

Shale Gas

7,000,000,000

On Hold

Q4 2020

Saudi Aramco - Unconventional Gas Program - Tight Gas Production Systems A

Saudi Arabia

Gas

Gas Field Development

200,000,000

Construction

Q4 2020

Saudi Aramco - Unconventional Gas Program - Tight Gas Production Systems A and B (Overview)

Saudi Arabia

Gas

Gas Field Development

3,500,000,000

Construction

Q4 2020

Saudi Aramco - Unconventional Gas Program - Tight Gas Production Systems B

Saudi Arabia

Gas

Gas Field Development

800,000,000

Construction

Q4 2020

Saudi Aramco - Uthmaniya Gas Treatment Units

Saudi Arabia

Gas

Gas Network

800,000,000

Construction

Q4 2019

Socar Aurora Fujairah Terminal - Fujairah Oil Storage Terminal - Phase 3

UAE

Oil, Gas

Oil Storage Tanks

100,000,000

On Hold

Q4 2017

Takreer- Carbon Black Plant

UAE

Gas

Gas Processing

200,000,000

Construction

Q4 2017

Tatweer Petroleum - Central Gas Dehydration Facilities

Bahrain

Gas

Gas Processing

150,000,000

Construction

Q2 2018

VOPAK HORIZON - Fujairah Oil Terminal Expansion (Phase 7)

UAE

Oil, Gas

Gas Storage Tanks

200,000,000

Construction

Q4 2017

ZADCO - Upper Zakum Full Field Development - 750 Project - Surface Facilities - EPC 1

UAE

Oil, Gas

Oil Field Development

1,300,000,000

Construction

Q4 2017

ZADCO - Upper Zakum Full Field Development - 750 Project - Surface Facilities - EPC 2

UAE

Oil, Gas

Oil Production

4,200,000,000

Construction

Q4 2017

ZADCO- 750 West Region- Capacity Expansion & Sulphate Reduction Plant- EPC 3

UAE

Oil, Gas

Oil & Gas Field

300,000,000

Engineering & Procurement

Q1 2019

Project

Country

City/ Region

Facility

Budget

Status

Completion Date

ADCO - Buhasa Onshore Oil Field Expansion Project

UAE

Abu Dhabi

Oil Production

3,000,000,000

EPC ITB

Q1 2021

ADCO - Mender Field Development

UAE

Abu Dhabi

Oil Field Development

350,000,000

Construction

Q3 2018

ADCO - North East Bab (NEB) - (Al Dabbiya) ASR

UAE

Abu Dhabi

Oil Production

2,500,000,000

EPC ITB

Q4 2020

ADCO - North East Bab (NEB) - Phase 3 (Al Dabbiya)

UAE

Abu Dhabi

Oil Production

2,300,000,000

Construction

Q4 2017

ADCO - North East Bab (NEB) - Phase 3 (Rumaitha-Shanayel)

UAE

Abu Dhabi

Oil Production

1,440,000,000

Construction

Q4 2017

ADCO- Bab Integrated Facilities Project- Expansion

UAE

Abu Dhabi

Oil Field Development

2,000,000,000

EPC ITB

Q1 2020

ADCO- Bab TH-F Peripheral Development

UAE

Abu Dhabi

Nitrogen

400,000,000

On Hold

Q4 2017

ADCO- Buhasa- Wellhead Automation

UAE

Abu Dhabi

Oil Field Development

100,000,000

FEED

Q3 2019

ADCO- Fujairah MOT - Hydraulic Pressure Recovery System Turbine

UAE

Fujairah

Oil Field Development

800,000,000

On Hold

Q1 2017

ADCO- Qusahwira Field Development - Phase 2

UAE

Abu Dhabi

Oil Field Development

550,000,000

EPC ITB

Q3 2020

ADCO- South East Asset- Tie-in Project (A,B, C & D)

UAE

Abu Dhabi

Oil Field Development

650,000,000

Construction

Q1 2018

ADMA OPCO - Nasr Full Field Development - Phase 2 (Package 2 - Platforms)

UAE

Abu Dhabi

Oil Field Development

195,000,000

Construction

Q4 2018

ADMA OPCO - Nasr Full Field Development - Phase 2 (Package 3)

UAE

Abu Dhabi

Oil Field Development

200,000,000

Construction

Q4 2018

ADMA OPCO- Nasr Full Field Development - Phase 2 (Package 1 - Wellheads and Pipeline)

UAE

Abu Dhabi

Oil Field Development

900,000,000

Construction

Q4 2018

ADMA-OPCO - Nasr Full Field Development - (Overview)

UAE

Abu Dhabi

Oil Field Development

1,700,000,000

Construction

Q4 2018

ADMA-OPCO - SARB Offshore Oil Field Development - Package 2

UAE

Abu Dhabi

Oil & Gas Field

500,000,000

Construction

Q2 2017

ADMA-OPCO - SARB Offshore Oil Field Development - Package 4

UAE

Abu Dhabi

Gas Processing

455,000,000

Construction

Q4 2017

ADMA-OPCO - Umm Al Lulu Field Development - (Overview)

UAE

Abu Dhabi

Oil Field Development

2,500,000,000

Construction

Q1 2018

ADMA-OPCO - Umm Al Lulu Field Development - Package 1

UAE

Abu Dhabi

Oil Field Development

800,000,000

Construction

Q1 2018

ADMA-OPCO - Umm Al Lulu Field Development - Package 2

UAE

Abu Dhabi

Oil Field Development

170,000,000

Construction

Q1 2018

ADMA-OPCO - Umm Shaif Infield Pipelines Replacement

UAE

Abu Dhabi

Oil Field Development

500,000,000

EPC ITB

Q4 2019

ADMA-OPCO- Bu Haseer Field

UAE

Abu Dhabi

Pipeline

155,000,000

Construction

Q3 2018

GCC OIL â&#x20AC;&#x201C; AUGUST 2017

63

ADMA-OPCO- Lower Zakum - Oil Lines Replacement (Phase 1)

UAE

Abu Dhabi

Pipeline

950,000,000

Construction

Q1 2018

ADNOC & EMARAT - Fujairah Terminal Expansion Phase 3

UAE

Fujairah

Oil Storage Tanks

40,000,000

Feasibility Study

Q4 2018

ADNOC Distribution - Bateen Executive Airport- Jet Fuel Depot

UAE

Abu Dhabi

Oil Storage Tanks

80,000,000

Engineering & Procurement

Q4 2019

arabianoilandgas.com

SEPTEMBER 2017

63

PROJECTS

64

Completion Date

Project

Country

City/ Region

Facility

ADNOC- Fujairah- Mandous Field

UAE

Fujairah

Oil Storage Tanks

N/A

EPC ITB

Q4 2023

ADNOC- Ghasha Field

UAE

Abu Dhabi

Oil & Gas Field

1,000,000,000

PMC

Q1 2025

ADOC - Hail Offshore Oilfield

UAE

Abu Dhabi

Oil Field

500,000,000

Construction

Q3 2019

ADOC - Mubaraz Field Expansion

UAE

Abu Dhabi

Oil Field Development

500,000,000

EPC ITB

Q4 2021

Al Dhafra Petroleum - Haliba Oil Field

UAE

Abu Dhabi

Oil Field Development

500,000,000

EPC ITB

Q2 2023

Al Hosn Gas - Dalma Field

UAE

Abu Dhabi

Oil Field Development

800,000,000

PMC ITB

Q4 2020

Aramco - Berri - Gas-Oil Separation Plant Expansion

Saudi Arabia

Berri

GOSP

1,700,000,000

FEED

Q1 2020

BAC - NOGA - Bahrain International Airport Modernization Program - New Aviation Fuel Farm & Fuel Hydrant

Bahrain

Muharraq

Airport

200,000,000

Engineering & Procurement

Q2 2019

Bahri - Very Large Crude Carriers (VLCCs) Construction

Saudi Arabia

Various

Very Large Crude Carriers (VLCCs)

1,000,000,000

Construction

Q4 2017

Bapco - A-B Pipeline

Bahrain

Abqaiq - Sitra

Pipeline

350,000,000

Construction

Q4 2018

Bapco - Offshore Blocks

Bahrain

Various

Exploration

80,000,000

EPC ITB

Q2 2020

DRPIC - Duqm Refinery & Petrochemical Complex - Duqm Refinery - Main Process Units

Oman

Duqm

Refinery

4,000,000,000

EPC ITB

Q4 2019

DRPIC - Duqm Refinery & Petrochemical Complex - Duqm Refinery - Offsites and Utilities

Oman

Duqm

Refinery

2,000,000,000

EPC ITB

Q4 2019

DRPIC - Duqm Refinery & Petrochemical Complex - Duqm Refinery - Overview

Oman

Duqm

Refinery

6,000,000,000

EPC ITB

Q4 2019

DRPIC - Duqm Refinery & Petrochemical Complex - Duqm Refinery - Package 3

Oman

Duqm

Oil Storage Terminal

250,000,000

EPC ITB

Q4 2019

Duqm Petroleum Terminal Company - Duqm Liquid Jetty

Oman

Duqm

Oil Storage Terminal

600,000,000

Engineering & Procurement

Q4 2019

Florexx International Investments - Biofuels Refinery

Oman

Sohar

Biofuels

800,000,000

Engineering & Procurement

Q4 2020

Fujairah Oil Terminal (FOT) - Fujairah Oil Terminal Modifications

UAE

Fujairah

Oil Storage Tanks

200,000,000

EPC ITB

Q1 2020

Budget

Status

GASCO - Integrated Gas Development (IGD) - Expansion (Onshore Pipeline)

UAE

Abu Dhabi

Gas Production

7,100,000,000

Construction

Q4 2017

GASCO - Yas - Mina Zayed Gas Pipeline

UAE

Abu Dhabi

Gas Processing

45,000,000

Construction

Q3 2019

GASCO- Integrated Gas Development - Expansion (42 Inch Pipeline)

UAE

Abu Dhabi

Oil Field Development

450,000,000

Construction

Q4 2018

Gulf Petrochem - Oil Storage Terminal Facility at Fujairah - Phase 2

UAE

Fujairah

Oil Storage Tanks

300,000,000

On Hold

Q1 2019

Hydrocarbon Finder - Block 7 Onshore Exploration and Production

Oman

Al Wusta

Exploration

50,000,000

Engineering & Procurement

Q1 2019

IL&FS Prime Terminals FZC- Fujairah Oil Terminals- Phase 2

UAE

Fujairah

Oil Storage Terminal

80,000,000

EPC ITB

Q2 2019

Kismat International - Petroleum Terminal (Phase 1)

UAE

Sharjah

Oil Storage Tanks

50,000,000

On Hold

Q4 2019

KNPC - Ahmadi Depot Expansion

Kuwait

Ahmadi

Oil Storage Tanks

250,000,000

Construction

Q2 2018

KNPC - Discharge Of Treated Effluent In MAA & MAB Refineries

Kuwait

Various

Pipeline

100,000,000

On Hold

Q4 2018

KNPC - New Local Marketing Depot At Matlaa Area

Kuwait

Northern Kuwait

Oil Storage Tanks

500,000,000

EPC ITB

Q4 2019

KOC - Exxon Mobil Corporation - Ratqa Lower Fars Heavy Oil Handling Facilities - Drilling Package

Kuwait

Jahra

Oil Field Development

500,000,000

Construction

Q2 2018

KOC - Jurassic Non-Associated Gas Reserves

Kuwait

Northern Kuwait

Oil & Gas Field

1,300,000,000

Engineering & Procurement

Q2 2018

KOC - Jurassic Production Facilities Off-Plot Works

Kuwait

Northern Kuwait

Oil Field Development

300,000,000

Engineering & Procurement

Q2 2019

KOC - Kuwait Bay and Divided Zone Offshore Exploration

Kuwait

Various

Exploration

1,000,000,000

Engineering & Procurement

Q1 2018

KOC - Minagish Marrat Water Injection Project

Kuwait

Minagish

Water Injection

164,000,000

EPC ITB

Q1 2021

KOC - North Kuwait Jurassic Early Production Facility (EPF) - Phase 2

Kuwait

Northern Kuwait

Oil Production

100,000,000

FEED

Q3 2023

KOC - Ratqa Lower Fars Heavy Oil Development - Phase 1

Kuwait

Northern Kuwait

Steam Injection

4,300,000,000

Construction

Q4 2018

KOC - Southern Kuwait Maintenance of Oil Production Facilities

Kuwait

Kuwait South

Oil Production

150,000,000

Construction

Q3 2020

KOC - Wara Pressure Maintenance Project - Train 3

Kuwait

Southeast Kuwait

Oil Field Development

500,000,000

Engineering & Procurement

Q4 2020

Masirah Oil Ltd - Block 50 (Masirah Bay Offshore) - Exploration

Oman

Masirah Basin

Exploration

25,000,000

Construction

Q1 2020

Medco Arabia - Block 56 Onshore Exploration and Production

Oman

Adam Ad Dakhliya

Exploration

20,000,000

Engineering & Procurement

Q4 2020

MOG - Block 18 Offshore Exploration and Production

Oman

Batinah

Exploration

30,000,000

On Hold

Q1 2021

MOG - Block 43A Offshore Exploration and Production

Oman

Adam Ad Dakhliya

Exploration

30,000,000

On Hold

Q4 2020

SEPTEMBER 2017

arabianoilandgas.com

PROJECTS

Status

Completion Date

30,000,000

On Hold

Q4 2021

45,000,000

Engineering & Procurement

Q1 2019

3,000,000

On Hold

Q4 2021

Exploration

25,000,000

On Hold

Q4 2021

Al Sharqiya

Exploration

30,000,000

On Hold

Q4 2021

Oman

Al Wusta

Exploration

50,000,000

Engineering & Procurement

Q3 2020

OOCEP - Block 48 Onshore Exploration and Production (Malih Block)

Oman

Al Dahirah

Exploration

30,000,000

Engineering & Procurement

Q1 2021

OOCEP - Block 60 Concession - Onshore

Oman

Oman

Oil & Gas Field

1,100,000,000

Construction

Q4 2020

Orpic - Flare Gas Recovery System

Oman

Sohar

Refinery

40,000,000

On Hold

Q3 2019

Orpic - Sohar Refinery Improvement Project (SRIP)

Oman

Sohar

Refinery

1,500,000,000

Commissioning

Q4 2017

OTTCO - Ras Markaz Crude Oil Park

Oman

Duqm

Oil Storage Terminal

400,000,000

EPC ITB

Q4 2019

PDO - Amal Steam Phase 1C Surface Facilities

Oman

Amal Oilfield

Enhanced Oil Recovery (EOR)

80,000,000

Construction

Q1 2018

PDO - Amal Steam Phase 1C-2

Oman

Amal Oilfield

Oil Field Development

300,000,000

EPC ITB

Q1 2019

PDO - Lekhwair DME Pilot Project

Oman

Lekhwair

Enhanced Oil Recovery (EOR)

25,000,000

On Hold

Q4 2018

PDO - Yibal Khuff Sudair Field Development

Oman

Northern Oman

Oil Field Development

3,000,000,000

Construction

Q1 2019

Sabic - Oil-To-Chemicals Plant

Saudi Arabia

Yanbu

Oil Production

30,000,000,000

Feasibility Study

Q4 2020

Saudi Aramco - Annual Onshore Maintain Potential Program (MPP)

Saudi Arabia

Red Sea

Maintenance

5,000,000,000

Construction

Q2 2021

Saudi Aramco - Bapco - AB Pipeline

Saudi Arabia

Various

Oil

350,000,000

Engineering & Procurement

Q4 2017

Saudi Aramco - Duba - Bulk Plant Terminal

Saudi Arabia

Duba

Oil Storage Terminal

400,000,000

EPC ITB

Q1 2020

Saudi Aramco - Jizan Export Refinery (Overview)

Saudi Arabia

Jizan

Oil Production

2,100,000,000

Construction

Q3 2018

Saudi Aramco - Jizan Export Refinery - Crude Distillation Unit / Vacuum Distillation Unit, Flare & Pipe Rack Complex

Saudi Arabia

Jizan

Crude Oil Distillation Unit

500,000,000

Construction

Q4 2017

Saudi Aramco - Jizan Export Refinery - Sour Water Stripper & Amine Regeneration Unit

Saudi Arabia

Jizan

Oil Production

500,000,000

Construction

Q1 2017

Saudi Aramco - Khurais Arabian Light Crude Increment Program

Saudi Arabia

Eastern Region

Oil & Gas Field

3,000,000,000

Construction

Q4 2018

Saudi Aramco - Marjan - Oil Field Expansion

Saudi Arabia

Marjan

GOSP

5,000,000,000

Pre-FEED

Q1 2021

Saudi Aramco - Marjan, Berri, Zuluf and Safaniyah IV Expansion - (Overview)

Saudi Arabia

Various

Oil & Gas Field

7,000,000,000

Construction

Q1 2022

Saudi Aramco - Offshore Maintain Potential Programme (MPP)

Saudi Arabia

Various

Oil & Gas Field

7,000,000,000

Construction

Q1 2022

Saudi Aramco - Southern Area Oil Operations (SAOO)

Saudi Arabia

Southern Region

Oil Field Development

55,000,000

Engineering & Procurement

Q1 2017

Socar Aurora Fujairah Terminal - Fujairah Oil Storage Terminal - Phase 3

UAE

Fujairah

Oil Storage Tanks

100,000,000

On Hold

Q4 2017

Star Energy Group- JAFZA Expansion 7A

UAE

Dubai

Oil Storage Tanks

200,000,000

Construction

Q3 2019

Takreer- Ruwais- LPG Recovery

UAE

Abu Dhabi

Crude Oil Distillation Unit

40,000,000

FEED

Q3 2019

VOPAK HORIZON - Fujairah Oil Terminal Expansion (Phase 7)

UAE

Fujairah

Gas Storage Tanks

200,000,000

Construction

Q4 2017

Wafra Joint Operations Company - Wafra Heavy Oil Field

Saudi Arabia

Neutral Zone

Steam Injection

800,000,000

On Hold

N/A

ZADCO - Umm Al Dalkh ESP Installation - Package 2 (Phases 3, 4 and 5)

UAE

Abu Dhabi

Sub Sea Cable

650,000,000

Commissioning

Q3 2017

ZADCO - Umm Al Dalkh Full Field Development (Overview)

UAE

Abu Dhabi

Oil Field Development

650,000,000

Construction

Q3 2017

ZADCO - Upper Zakum Full Field Development - 750 Project (Overview)

UAE

Abu Dhabi

Oil Field Development

15,600,000,000

Construction

Q4 2017

ZADCO - Upper Zakum Full Field Development - 750 Project - Surface Facilities - EPC 1

UAE

Abu Dhabi

Oil Field Development

1,300,000,000

Construction

Q4 2017

Project

Country

City/ Region

MOG - Block 51 Onshore Exploration and Production

Oman

Northern Oman

Exploration

MOG - Block 55 Onshore Exploration and Production

Oman

Al Wusta

Exploration

MOG - Block 57 Onshore Exploration and Production

Oman

Dhofar

Exploration

MOG - Block 58 Onshore Exploration and Production

Oman

Dhofar

MOG - Block 59 Offshore Exploration and Production

Oman

Oman Lasso Exploration and Production Karwan - Block 54 Onshore Exploration and Production

Facility

Budget

ZADCO - Upper Zakum Full Field Development - 750 Project - Surface Facilities - EPC 2

UAE

Abu Dhabi

Oil Production

4,200,000,000

Construction

Q4 2017

ZADCO - Zirku Facilities Capacity Enhancement

UAE

Abu Dhabi

Oil Field Development

400,000,000

EPC ITB

Q3 2020

Note : The above information is the sole property of DMS Projects. Budget figures are shown as US$ values.

arabianoilandgas.com

Source: dmsprojects.net

SEPTEMBER 2017

65

FIVE MINUTES WITH

Helena Seelinger, senior official at NACE International Institute

FIVE MINUTES WITH...

ABOUT THE INTERVIEWEE: Helena Seelinger is the chief regulatory and public affairs officer at NACE International Institute, the Houston-based corrosion management organisation.

What corrosion control measures can best protect oil and gas infrastructures from corrosion?

An integrity management regime that incorporates system operating history, corrosion control history, direct assessment, in-line inspection, and pressure testing, offers the best opportunity to identify risk, enhance safety, and target corrosion control remediation measures. It is necessary to constantly assess infrastructure as its useful life progresses, in order to determine when to retire, rehabilitate, or replace assets that are at risk.

0.44

What advice would you give to offshore operators and contractors to help to mitigate corrosion?

Offshore and maritime assets are especially susceptible to corrosion. There is no simple, ‘one-size-fits-all’ methodology. The most popular corrosion control technologies are the use of coatings and cathodic protection. A combination of integrated technologies and techniques, and a well-stocked corrosion control tool bag, have allowed the industry to better manage corrosion.

2 .

1 2

How does NACE International and the NACE Institute assist its members to reduce the impact of corrosion?

NACE International and the NACE Institute assists its members by providing numerous resources, from publications to education

and certification. One publication, the Guide to Improving Pipeline Safety

by Corrosion Management provides a programmatic approach to managing corrosion on pipelines. We also offer courses on coating inspection, cathodic protection, and the pipeline industry. Our courses are offered worldwide, and at our training facilities in Dubai and our HQ in Texas.

What challenges lie ahead for the oil and gas industry in the Middle East when it comes to corrosion management?

Service providers supporting the oil and gas industry in the Middle East are fairly new to the field, but the area is growing rapidly, with new players joining all the time. Because of technological advances and scientific research, many companies are not able to keep up and end up left behind, which presents a challenge for asset owners seeking to follow best practices in corrosion management and prevention.

SEPTEMBER 2017

3.07

66

0.01

Each month, Oil & Gas Middle East puts industry leaders in the hot seat with a quick-fire interview that cuts straight to the chase

“OFFSHORE AND MARITIME ASSETS ARE ESPECIALLY SUSCEPTIBLE TO CORROSION. THERE IS NO SIMPLE, ‘ONE-SIZEFITS-ALL’ METHODOLOGY [FOR PREVENTION AND MANAGEMENT].”

3.46

What is NACE International doing to address these challenges?

One of the most important methods of preventing corrosion is the use of coatings.

In the Middle East there is rapidly growing demand for coatings contractors, but no easy way for asset owners to determine whether a contractor is up-to-speed on the latest advances, standards, and practices.

To address this, the NACE International Institute (NII) launched an accreditation programme, the NII Contractor Accreditation Programme (NIICAP). arabianoilandgas.com

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