GEO FOCUS: KUWAIT

EPICENTRE OF
KUWAITS OIL SECTOR
18

Deputy CEO, South and East

Kuwait, KOC speaks exclusively
about the significance of the giant
Burgan field which is at the centre
of Kuwaits oil industry

FEATURES:

JUNE 2016
Pipeline Oil & Gas Magazine

CONTENTS
NEWS: Regional
Saudi Arabia names new
minister for energy

Emerson User Exchange

10

Pipeline reviews Emersons User Exchange

2016 event that was held in Brussels

Khalid Al Falih is now the minister for

energy, industry and mineral resources

The future is bright for the

GCCs female workforce

12

Field Development

A review of the Women In Industry Forum

Total talks about its supercomputer

Pangea and how it brings power to
researchers, geologists and engineers

NEWS: International

Unmanned Vehicles

Technip and FMC

Technologies in $13bn
merger

16

to merge

Amec Foster Wheeler to

expand Kenyan oil terminal
Amec Foster Wheeler is to expand the
Kipevu Oil Terminal in Mombasa

22

28

Two case studies from Sky-Futures and

FLIR look at the benefits of using UAVs
in the UAE

Pipeline Maintenance
and Safety

Technip and FMC Technologies agree

34

Three companies talk about their approach

to pipeline maintenance in the Middle East
17

44

Oil Price Survey report

EGYPS 2017

47

We look at the opportunities in Egypts oil

and gas sector in the lead up to the Egypt
Petroleum Show in 2017

PROJECT UPDATE:

40

Law firm Clyde & Co reports on the key

findings from its oil price volatility survey

51
Penspen awarded design
contract for ADNOC Distribution

ALGERIA

SAUDI ARABIA

IRAQ

Algeria to supply crude and LNG

to Jordan

Saudi Aramco to take an active

role in Saudi Vision 2030

DNO ramps up investment at

Tawke field

Algeria has signed a Memorandum of

Understanding with Jordan to supply oil
and liquefied natural gas (LNG) to the
Hashemite Kingdom.
Algerias national oil company
Sonatrach will commence shipment of
LNG and LPG to Jordan in September.
Crude oil deliveries are forecast to begin
later in the year.
This is the first time that we are going
to get fuel and gas from Algeria, Hasan
Hiari, head of the natural gas department
at Jordans Ministry of Energy &
Mineral Resources, told reporters from
Bloomberg. We are keen on diversifying
our energy sources.

Saudi Arabias state oil company said

it is resolved to take an active role in the
national transformation of the Kingdoms
economy as part of the recently
announced economic blueprint set out in
Saudi Vision 2030.
In a wide ranging statement Saudi
Aramco confirmed it is fully behind the need
for economic reform and provided in-depth
statements from the Chairman and CEO.
HE Khalid A. Al-Falih, Chairman of
Saudi Aramco said there was an urgent
need to shift the Kingdom from an oilbased economy.

Norways DNO has begun an active

drilling programme at its Tawke field
in the Kurdistan region of Iraq as it
boosts its investments following seven
consecutive monthly oil payments.
DNO will drill five new Tawke
production wells, three targeting the
fields main Cretaceous reservoir and two
targeting the shallower Jeribe reservoir.
The firm has set a production target of
135,000 bpd following its
2016 investments.

EGYPT
Energean completes seismic survey in Egypt
Energean Oil & Gas has completed a 2D seismic
survey at the North of West Komombo-Block3
concession area, onshore Egypt.
The West Komombo block is located in the South
Central Desert in Upper Egypt; it covers an area
of 20,948 km2 and has a geological structure
similar to the neighbouring Al Baraka oil field, where international oil companies have
been producing hydrocarbons for several years.
The three month survey was conducted by Africa Geophysical ServicesLLC ahead of
two exploration wells that are planned for drilling within 2016.

Pipeline Magazine

www.pipelineme.com

PowerDrive Orbit

KUWAIT

UAE

KNPC secures US$3.98bn loan

for Clean Fuels Project

Siemens delivers gas turbine to

UAEs Zirku Island

State-owned refiner Kuwait National

Petroleum Co (KNPC) has agreed the
first tranche of a loan worth US$ 3.98
billion for its Clean Fuels Project.
The tranche, provided by local banks
and lasting for 10 years, is worth 1.2
billion dinars ($ 3.98 billion) and led by
National Bank of Kuwait and Kuwait
Finance House. There were other 11
banks, including five Islamic lenders,
who took part in the first tranche.
The two tranches of the loan will
account for 70 per cent of the total
funding needed for the fuels project,
while the remaining 30 per cent of the
funding will be provided by KNPC itself.

International engineering firm Siemens

has shipped its first Industrial Trent 60
gas turbine generator package from
its manufacturing facility in Ohio to
ADMA-OPCOs Satah Al-Razboot (SARB)
offshore oilfield project on Zirku Island,
according to a company statement.
The shipment will be the first of five
Industrial Trent 60 power generation
packages to be delivered, installed and
commissioned for ADMA-OPCO. The
Aeroderivative Gas Turbine (AGT) is the
first of three dual fuel units that will be
delivered as part of the order that also
includes two gas only units.

OMAN
Oman Oil Co exports first cargo
from Musandam facility
The Oman Oil Company has
successfully completed the export of the
first cargo of crude oil to be processed at
the countrys Musandam Gas Plant.
The VLCC Tsuruga loaded 300,000
barrels of crude oil from the Musandam
terminal in Early May.
Commenting on the successful
shipment of the crude oil, Khalifa Al
Makhmari the Musandam Gas Plant
project director told journalists from the
Times of Oman: We expect Musandam
Gas Plant with its wide range of oil and
gas processing and export capabilities to
be a major contributor to the economic
prosperity of the Musandam Governorate
as well as to the national economy.
The Musandam Gas Plant has a
processing capacity of 20,000 barrels per
day and takes oil from the nearby Bukha
A and West Bukha fields.

www.pipelineme.com

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:: INFORMING ENGINEERS. SUPPORTING

PROCUREMENT. SERVING THE ENERGY INDUSTRY ::

Associate Publisher:
Scott Woodall
Sales Director:
Raed Kaedbey
Sales Executive:
Puja Kedia
Editor-in-Chief:
Julian Walker
Editor:
Chris Kelly
Contributors:
Richard Devine
Ana Severova
Gareth Venter
Marketing Executive:
Umaima Motiwala
Art & Design:
Alden Guevarra
Jezreel Araos
Admin Assistant :
Charissa Bucayu

Subscriptions:
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Just before we went to press news broke that

Brent oil futures had climbed above the US$50
mark for the rst time in nearly seven months,
after US gures showed a bigger drop in crude
stocks, supply disruptions in Canada, due to
major res, and a series of attacks by militants
took place in Nigeria.
This good news, at least in terms of pricing,
will hopefully lead to an improved backdrop for
the oil and gas market after its recent challenging
times. Analysts remained cautious as the price
could fall again, but there is a better sentiment in the air that prices could remain around
the mid-$50 level for the rest of the year.
The other big headline this month was the dramatic shake-up of the Saudi oil industry
with the countrys long-serving oil minister, Ali al-Naimi, stepping down for the current
Saudi Aramco stalwart Khaled al-Falih. The move was seen as a clear sign that the Saudi
kings son Mohammed bin Salman, is effectively running the show. The change in guard
was all part of Saudi Arabias ambitious plan to wean itself off oil with its ground breaking
economic blueprint, Saudi Vision 2030. We look at its impact on p10 and on p11 we discuss
what Saudi Aramco role will be.
This month we have an exclusive interview (p18) with the man running Kuwaits main
oileld, the giant Burgan eld, and outline how what is done at Burgan has an impact on
Kuwaits whole oil sector. We get a rare look at what is being done to modernise KOC and
how it will remain a force in the global energy sector.
We cover a number of key topics this month, including an insight from France (p24) on
how Total is using its supercomputer to make better decision on eld development. On
p30 we have two UAE specic examples of how UAVs are being increasingly used in the
oil and gas industry here.
We also have an exclusive rst look at the results from the inuential Clyde & Co oil
price survey (p40) they conducted earlier in the year, which has some interesting reading.
There is also an on-the-spot report from Brussels from Emersons annual User Exchange
event that we went to cover.

Design:
design@reflexpublishingme.com
Printed by:
United Printing and Publishing

Julian Walker
Editor-in-Chief

For information on submissions, please contact the

editorial team at the address above.

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Copyright 2016. All rights reserved.

Reproduction without permission is prohibited.

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Im lucky if I dont actually lose production each month.

And now management wants me to
squeeze out another 2% ?

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have better insight into reservoir performance for better decisions about production
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started on the road to an Intelligent Field at www.EmersonProcess.com/SmartWell
or e-mail mea.marcom@Emerson.com

The Emerson logo is a trademark and a service mark of Emerson Electric Co. 2016 Emerson Electric Co.

ENERGY IN FOCUS

June 2016

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Saudi Arabia

155

154

158

157

Kuwait

49

44

42

41

UAE

39

41

52

50

Sour
So
u ce
ce:: Ba
Bake
kerr Hu
ugh
g es R
Rig
ig R
Rep
epor
ortt

Saudi Vision 2030 is a

pioneering and
game-changing plan that will
enable sustained economic
growth, diversification and
job creation to benefit the Kingdom and its
citizens for generations to come
HE KHALID AL-FALIH, Saudi Arabias minister for energy,
industry and mineral resources

By keeping an uncompromising
focus on health, safety and the
environment, we will, by definition,
be more efficient and more
profitable. And by safeguarding our
most precious resource - our people - we will also
ensure our companies perform better
HE DR SULTAN AL JABER,
ADNOCs CEO

Pipeline Magazine

www.pipelineme.com

$41

The forecasted
average price of
a barrel of
oil in 2016, according to
Qatar National Bank.

$54 billion
The estimated cost of
Australias mammoth
Gorgon LNG project.

$44 billion
The amount of revenue that the
Mexican government is hoping
to raise at its forthcoming
inaugural deepwater oil and
gas license auction.

NEWS: REGIONAL

June 2016

Saudi Arabia names new minister for energy

Saudi Arabia has appointed
Saudi Aramco veteran Khalid
Al Falih to the position of
minister for energy, industry
and mineral resources.
Al Falih will replace Ali Al
Naimi, the countrys current
oil minister, with immediate
effect.
Al Falih will be Saudi
Arabias senior most oil
and gas ofcial and will
take control of a revamped
ministry for energy, industry
and mineral resources.
Al-Falih will retain his
position as chairman of state
oil giant Saudi Aramco, but
will leave his current role as minister of
health with immediate effect.
In his capacity as chairman of Saudi

NEWS IN BRIEF
Libyan factions agree
to unify oil sector
Libyas feuding rival governments
have agreed in principle to a unied
oil organisation, to manage the
countrys hydrocarbon reserves. The
reserves are currently split between at
least two rival groups, each claiming
sovereignty over the nations oil.
These institutions can only be
managed centrally. Thats why it was
agreed that both institutions from east and
west be united, so that there is only one
oil company, one investment company
and one central bank, foreign minister
Mohammed Siyala told reporters in Vienna.
The rst steps to achieve this are being
taken now, there is an agreement on the
basic points and principles and now were
waiting for the implementation.
Libyas oil industry has been
decimated in recent years following a
series of industrial strikes, high prole
attacks from militant groups, and the
near total split of the country between
rival governments in the east and west
of the country.
Libyas oil exports have plummeted
from around 1.5 million bpd in mid-2012
to just 370,000 bpd in April 2016.

10

Pipeline Magazine

Aramco, Al Falih has been a vocal supporter

of OPECs current decision to allow low
priced crude to balance the market.

Analysts have suggested

that Al Falihs appointment
will consolidate Saudi
Arabias decision to maintain
production levels, despite a
global oversupply glut.
Al Falih graduated from
Texas A&M University and
began his career with Saudi
Aramco, where he rose
through the ranks to become
CEO and chairman of the
state owned Saudi oil giant.
Al Falihs promotion to the
position brings to an end the
reign of Ali Al Naimi, who
has led Saudi Arabias oil
sector for over twenty years.
Since his retirement, Al Naimi has received
numerous awards for his outstanding
service to the Kingdoms oil industry.

Iran doubles crude production and exports

Oil production and
export levels in Iran
have doubled since the
removal of international
sanctions, according to
the countrys oil and gas
minister, Bijan Zangeneh.
Now, and following the
implementation of the
Joint Comprehensive Plan
Of Action, we are clearly
feeling the easement of
all the pressure caused by
excessive costs we had
to shoulder to complete
the Oil Ministry projects,
he told journalists.
A recent report by
the International Energy
Agency (IEA) conrmed
that Iran produced 3.56
million barrels of oil per day
in April 2016. That gure
is steadily increasing, and
Zangeneh has said that Iran
will not consider freezing
its production levels until it
is pumping over 4 million
barrels per day.
The Islamic Republic
is now believed to be
exporting between 2

million and 2.5 million

barrels per day. Under
international sanctions,
exports were capped at 1
million barrels per day.
The director for
international affairs at
the National Iranian Oil
Company, Mohshen
Qamasari, told Iranian
state news agency

IRNA that exports to the

EU would account for
approximately 500,000600,000 barrels per day.
Before sanctions,
Iranian oil export to
Europe was 500,000
to 600,000 barrels and
hopefully it will exceed
the pre-sanctions level in
the upcoming months.

The Islamic Republic is now

believed to be exporting
between 2 million and 2.5
million barrels per day

www.pipelineme.com

IRAN

NEWS: REGIONAL

June 2016

Saudi Arabia could boost crude production levels

Saudi Arabia could be set to increase

its crude oil production levels, even
as global markets struggle to cope
with a 1.5 million barrel per day (bpd)
oversupply glut.
Saudi Aramco CEO, Amin Nasser, told
reporters that the company intended to
boost capacity at the Shaybah oil eld by

33 per cent, to a total of

1 million barrels a day
in the coming weeks.
He also said that the
company would double
natural gas production
over the next decade.
Saudi Aramco will
continue to expand,
Nasser said. We will
soon be publishing our
annual book and you will
see there is signicant
growth in our annual oil
production compared to
previous years.
These comments have
been echoed elsewhere
in the Saudi oil heirachy.
The countrys newly appointed minister for
energy, Khalid Al Falih, has reiterated his
commitment to the current Saudi policy of
allowing price to regulate the market.
[We are] committed to meeting
existing and additional hydrocarbons
demand from our expanding global
customer base, backed by our current

The future is bright for the GCCs

female workforce
With the GCC looking
to boost the number of
women in its workforce,
the Women In Industry
Forum returned to
Abu Dhabi for another
inspiring and thought
provoking instalment.
This years event was
held at the luxurious St
Regis Hotel, in Abu Dhabi.
The event began with a
lively panel session, which
included some of the
regions highest achieving
female business leaders.
The discussion centred
around ways to increase
the number of females in
the GCCs workforce, as
well as hearing success
stories from the women
on stage. Lorraine Martin,
executive vice president,

12

Pipeline Magazine

Lockheed Martin Mission

Systems, argued that it is
in the interest of regional
governments to increase
the number of women in
their workforce as quickly
as possible.
When companies have
more diversity at board
room level, they are more
successful. Research
shows that companies
who have higher levels of
female representation at
board level are typically
15 per cent more
successful, she said.
The panel were
extremely upbeat about the
prospects for women in
the GCCs workforce, and
agreed that opportunities
would be forthcoming for
women who wanted to

fast-track their careers.

This is the time for
women to be gamechangers but we need to
make that happen, said
H.E. Fatima Al Jaber, board
Member, Al Jaber Group.
This sentiment was
echoed by Armelle Le VeuSeroude, chief innovation
ofcer, Defense Conseil
International, who said that
women need to take control
of their careers early on.
Women shouldnt
limit themselves or
hold themselves back.
Women constantly say to
themselves maybe I am
not sufciently qualied
or dont have enough
experience to apply for this
role. We need to stop doing
that, she said.

www.pipelineme.com

maximum sustainable capacity, he said.

According to a recent report by analyst
rm IHS, Saudi Arabia has the potential to
produce crude oil at a rate of 12.5 million
bpd. This greatly exceeds the kingdoms
current production rate of around 10.2
million bpd.
Ultimately, Saudi Arabias oil policy will
be governed by the Kingdoms Deputy
Crown Prince, H.H. Mohammed bin
Salman. In an interview in April Prince
Mohammed conrmed that Saudi Arabia
had the ability to increase its production
levels to 11.5 million bpd with immediate
effect and to 12.5 million bpd within 9
months, if it chose to do so.
According to the IHS report, Prince
Mohammed also conrmed that over the
longer term, the Kingdom could one day
produce as much as 20 million bpd.

NEWS IN BRIEF
Emirates Steel focuses
on HSE
The UAEs Emirates Steel has
held its Contractors Safety Day.
The event, aimed at discussing
safety procedures and issues
for contractors, consultants and
customers, in compliance with
Emirates Steels vision to provide
a safe and healthy working
environment for its employees and
suppliers, and establish a culture of
safety awareness within the minds of
its stakeholders through applying the
best safety practices and standards
in the industry to support improving
productivity and efciency within the
companys operations.
The meeting represented an excellent
platform to discuss best practices and
new technologies and standards applied
by Emirates Steel to improve safety
environment within the contractors
and suppliers operations relevant to
the companys operations, exchange
experiences and network.
Emirates Steel dedicated its
presentation to the companys vision
and safety goals and showcased a
number of innovations adopted to
ensure safe and smooth process for its
suppliers and partners.

JJU
UNE 20
201
016
0
16
6

US
Halliburton and Baker Hughes
abandon merger
US oil service giants Halliburton
and Baker Hughes have ended a
proposed multi-billion dollar merger,
announced in November 2014, after
facing stiff resistance from US and
European regulators and plunging
oil prices. As part of the deal
falling through Halliburton will
be required to pay Baker
Hughes a termination fee
of US$3.5 billion

UK
Petrofac wins North Sea
contract from Total E&P UK
Petrofac is set to build on its provision
of reimbursable services for Total E&P
UK following the award of an enhanced
three-year contract extension on the
Alwyn and Dunbar platforms in the
Northern North Sea. The contract, worth
in the region of US$100 million, comes
with two one-year options and has been
reconfigured, with Petrofac providing an
enhanced range of offshore services.

14

Pipeline Magazine

NORWAY
Statoil divests stake
in Edvard Grieg field

AZERBAIJAN

Norways Statoil has entered into an

agreement with Lundin Petroleum to
divest its entire 15 per cent interest in
the Edvard Grieg field offshore Norway
for an increased shareholding in Lundin
Petroleum. The deal sees Lundin
Petroleum acquire a 9 per cent interest
in the Edvard Grieg Oil pipeline and a
6 per cent interest in the Utsira High
Gas pipeline, and receive an additional
payment from Statoil of US$68 million.

US$1.5bn subsea contract for

Shah Deniz Stage 2 awarded

www.pipelineme.com

Italys Saipem and its consortium

partners Bos Shelf and Star Gulf have
been awarded a US$1.5 billion subsea
contract under the Shah Deniz Stage 2
Master Agreement by BP, on behalf of
the Shah Deniz partnership. The Shah
Deniz field is located 90 km offshore
Azerbaijan, in water depths from 75
meters to 550 meters.

RUSSIA/CHINA
CNPC to begin laying ChineseRussian pipeline
China National Petroleum Corp (CNPC)
has confirmed that it will begin laying
the Chinese section of a new ChineseRussian oil pipeline by June 2016. The
new pipeline is one of two new oil pipes
being constructed to transport oil and
gas between Russia and China. The
pipelines will have a combined capacity
of 30 million tonnes per year. The Chinese
section of the pipeline will run for 941km.

INDONESIA
Amec Foster Wheeler awarded
Cilacap refinery upgrade
Saudi Aramco and PT Pertamina
(Persero) have awarded the Basic
Engineering Design (BED) study for their
joint Cilacap refinery upgrade project to
Amec Foster Wheeler who will develop
the scope for the proposed upgrade
project for the existing refinery located in
central Java, Indonesia and will finalise
the process configuration and licensors
packages over the next nine months.
The project upgrade is targeted for
completion by the end of 2022

PAPUA NEW GUINEA

KENYA
Kenya creates 17 additional oil exploration blocks
Kenya has created an additional 17 oil and gas exploration blocks and will
put them up for auction in 2017, according to reports in the Kenyan press. The
additional blocks will bring the total number of oil and gas exploration blocks in
the East African country to 63. East Africa has emerged as one of the prime areas
for exploration and production firms looking to uncover new reserves. We
constituted all the blocks and the country now has 63 blocks .... We now have
17 blocks to license, Martin Heya, the ministrys commissioner for Petroleum
Energy, told journalists in Kenya. Kenya has also begun the process of seeking out
EPC firms to build an export pipeline in the north of the country.

www.pipelineme.com

Total buys stake in Papua New

Guinea LNG project
Frances Total and Oil Search have
entered into an MoU on the development
of the Papua LNG Project in Papua
New Guinea following a series of
equity agreements after Oil Search
acquired InterOil. Under the MoU, Oil
Search will sell down 60 per cent of
InterOils interests in PRL 15 and 62 per
cent of InterOils interests in its other
exploration assets to Total.

Pipeline Magazine

15

NEWS: INTERNATIONAL

June 2016

Technip and FMC Technologies in $13bn merger

Frances Technip and oilfield services firm

FMC Technologies have agreed to merge
in a US$13 billion deal in response to
low oil prices that creates a global firm
covering a wide range of areas from
subsea to the surface.
Both firms have signed a Memorandum
of Understanding (MoU) that will combine
the companies in an all-stock merger
transaction, which will now be called
TechnipFMC.
Under the terms of the MoU, Technip
shareholders will receive two shares of

the new company

for each share of
Technip, and FMC
Technologies
shareholders will
receive one share of
the new company
for each share of
FMC Technologies.
Each companys
shareholders will
own close to 50 per
cent of the combined company.
In a joint statement, the companies said
that the new combined firm will offer a
new generation of comprehensive solutions
in subsea, surface and onshore/offshore
to reduce the cost of producing and
transforming hydrocarbons.
John Gremp, Chairman and chief
executive officer of FMC Technologies,
said, This is a compelling combination
that will create significant additional
value for clients and all shareholders,
by expanding the success that FMC

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

16

Pipeline Magazine

Technologies and Technip have achieved

through our alliance and joint venture, to
capitalize on new opportunities and drive
accelerated growth.
Doug Pferdehirt, president and chief
operating officer of FMC Technologies, who
will serve as the CEO of TechnipFMC, added,
Our alliance has shown that as customers
evaluate solutions, they are involving us in
the process earlier and to a greater degree
than ever before. This transaction will allow
us to deliver even greater benefits to our
customers through a broadened portfolio
that provides a unique set of integrated
technologies and competencies.
The deal is expected to close early in
2017, subject to the approval of both Technip
and FMC Technologies shareholders.
TechnipFMC will have its operational
headquarters in Paris, where the executive
chairman will be based, in Houston,
where the CEO will be based and in
London, where the Forsys Subsea JV is
headquartered and the new corporation
will be domiciled.

Tel: +9714-8865119 / Fax: +9714-8865118

Email: sales@sso.ae / info@sso.ae
Website: www.shreesteeloverseas.com

www.pipelineme.com

NEWS: INTERNATIONAL

June 2016

Amec Foster Wheeler to

expand Kenyan oil terminal
Amec Foster Wheeler
has been awarded
a contract by
consultancy company
NIRAS to relocate and
expand the Kipevu
Oil Terminal (KOT) in
Mombasa, Kenya.
The firms scope
of work is to provide
technical support and
expertise to NIRAS for
the development of an
engineering, procurement and construction tender package and
the evaluation of tenders
The Kipevu Oil Terminal will be relocated to a site adjacent to
Mombasa port berth 16 and 17 and overlooking the naval base
in Mtongwe.
Roberto Penno, Amec Foster Wheelers Group president for Asia,
Middle East, Africa & Southern Europe said: The relocation of the
Kipevu Oil Terminal is an exciting and innovative project for Kenya
Ports Authority. Having been involved in the initial design stage, we
are pleased to take this project forward as it will add greatly to the
ports capacity.
Amec Foster Wheeler previously supported NIRAS with the
preliminary design stage for KOT.
KOT presently handles more than 90 per cent of the countrys
imports as well as transit products for Uganda, northern
Tanzania, Rwanda, Burundi, Eastern DRC and South Sudan.

AWE sells stake in

Indonesian gas project
Australias AWE Limited has agreed to sell its 42.5 per
cent interest in the Bulu Production Sharing Contract
(PSC) to HyOil for US$20.5 million.
The Bulu PSC is located offshore east Java, Indonesia and
includes the undeveloped Lengo gas project.
The deal is subject to Indonesian government approval.
David Biggs, AWEs managing director and CEO, said:
The sale of the Bulu PSC is another important step in
reshaping AWE to deliver sustainable growth in a low oil
price environment. The sale of Lengo, when completed,
will further reduce capital commitments and strengthen the
companys balance sheet.
He added: In the current low-oil price environment, we are
focused on achieving near-term growth through the delivery
of valuable domestic gas projects. We have commenced
construction of Stage 1A of the Waitsia gas project and
we are already considering options for the next phases of
development to deliver up to 100 terajoules per day (TJ/d).

www.pipelineme.com

www.hi-force.com

Pipeline Magazine

17

GEOFOCUS: KUWAIT

June 2016

THE EPICENTRE OF
KUWAITS OIL SECTOR
Abdulla Al-Sumait, deputy CEO, South and East Kuwait, Kuwait Oil Company, spoke exclusively to Julian
Walker about the significance of the giant Burgan field which is at the centre of Kuwaits oil industry

bdulla Al-Sumait is the deputy

chief executive officer for
Kuwait Oil Company (KOC) in
charge of the South and East Kuwait
Asset, which comprises the oil and gas
fields in the greater area of Burgan,
Ahmadi and Magwa.
In this role I am responsible for the
production of the asset, and have the privilege
of leading a very energetic and progressive
team composed of ve groups that comprise
23 teams: elds development, operations
(East Kuwait); operations (South Kuwait),
operations support and support services.
He added: I am a mechanical engineer,
and started in KOC back in 1986, in the
maintenance group of East Kuwait, precisely
in South and East Asset.

Burgan is at the very centre of Kuwaits oil

industry. It plays a fundamentally strategic
role as a supergiant oileld due to its huge
reserves, which enables the sustainability
of Kuwait as an oil producer on the world
energy stage.

THE FUTURE OF THE

ENERGY SECTOR WILL
SURELY CONTINUE TO
INCLUDE KUWAIT AS A
MAIN PLAYER

Pipeline Magazine: What is the

signicance of the giant Burgan eld
to Kuwaits oil industry?

18

Pipeline Magazine

Historically, Burgan has acted as a swing

producer to meet the market requirement for
Kuwait, guaranteeing those are systematically
met, which has established and maintained
Kuwaits high reputation as a reliable supplier.
We make sure to take care of Burgan with a
reservoir management approach, as it provides
the most important volume of oil produced
from all assets of the Kuwait oil sector: up to
60 per cent of all production of KOC.
I would highlight that it is precisely the
discovery of oil back in the 1930s and 1940s
in Burgan that brought the worlds attention

www.pipelineme.com

GEOFOCUS: KUWAIT

June 2016

BURGAN
PRODUCES

1.73 MMBOPD
Management (IBM). It is only as we go
beyond the boundaries that we build
around us, that we really make a difference.

to Kuwaits huge oil reserves, launching

our story as an oil producing country. The
modern era of our country literally started
with the discovery of Burgan.

PM: Do you feel there are untapped

resources in the giant Burgan eld?
We are currently producing 1.73
MMBOPD, and our targets follow Kuwait
Petroleum Corporation guidelines, ensuring
sound practices of reservoir management.
The resources of oil and gas in
supergiant Burgan, are distributed across
many reservoirs. With new technologies
we will be able to unlock even more
reserves and incremental production for
a long while. Additionally, exploration and
appraisal activities continue to nd new
opportunities which when evaluated may
further expand our resource base.

PM: What are the main challenges of

developing the Burgan eld?
Our challenges keep changing as we
go through the life cycle of the different
reservoirs in the field.
Parts of the field are relatively mature
and the main challenge is to access
the remaining oil and to manage the
increasing volumes of produced water.
Other parts are still at an early stage
and require further appraisal to fully
access their reserves. We also have
medium mature reservoirs that have not
been fully exploited and require water
injection to support their pressures in
order to produce significant volumes. The
combination of managing a giant field
at multiple stages in it life cycle is both
challenging and interesting. If life did not
have variety, it would be very boring.
Being a mature field we face the
normal issues of surface congestion and
a need for a continuous programme of
facility and network upgrades to meet
the challenges of increasing water.
Further reservoir developments also
need construction of new facilities for
massive injection plants and a parallel
infrastructure of injection manifolds
and flow lines. We are also increasing
production from our sour crude reservoirs
and these need specialised facilities,
infrastructure and management systems.
As mentioned earlier we are managing
new developments alongside maturing
reservoirs and it is all about smart and
timely integration of subsurface, drilling
and surface challenges.
One of the rst things I did was to
create an organisation where integration
of our business is central to everything
we do. We call it the Integrated Business

www.pipelineme.com

PM: What management strategy have

you brought to the Deputy CEO role
since taking over?
For S&EK Asset, I am proud to have
envisioned a number of strategies and
actions that resulted in step changes in
performance and enabled the asset to
act with a coherent approach, delivering
the expected results and achieving high
production targets never before achieved in
the recent history of Burgan.
Firstly, the leadership of the asset was
reassigned, and in the process, six new
teams were launched, expanding and
further customising our leadership team.
Additionally, to integrate and anticipate all
our activities, we launched the S&EK IBM ,
to align and integrate all assets activities in
the short, mid, and long-term timeframes,
to ensure achieving our targets. The new
leadership and the IBM in SEK were
instrumental to overcome many challenges
derived by a higher-than-expected water cut
in the production, applying remediation and
acceleration measures for subsurface and
surface projects.
I consider the IBM to be the most
important strategy at the asset level during
my tenure so far.

PM: What breakthrough technology

are you using on the Burgan eld?
We are one of the very few companies in
the world who are considering application
of EOR early in our reservoir development
plan. This will greatly improve the economics
of our resource extraction as well as provide
additional production early in the eld life.
One of the key benets of early EOR is not
just deferred water production but reduced
wastage of water in injection and production
facilities. KOC is very progressive as a

Pipeline Magazine

19

GEOFOCUS: KUWAIT

company to champion such initiatives early

in eld development in order to access more
value in the life of the eld.
The Digital Oileld pilots have been a
great success and we have plans in progress
to extend this to the rest of the eld.
Several years of effort has been spent in
building one of the largest geocellular and
reservoir simulating models in the world
to characterise Burgan reservoirs. These
modelling activities have been fundamental
to driving our life of eld strategy and
readiness for the future challenges.
Throughout the producing value chain
of this giant eld we have encouraged and
trialled initiatives to test new technologies
so that we may improve efciencies in
extracting our resources.

PM: How important are the people

working on the eld to the success of
the project? Do you have a wide range
of people working on the eld?
All people in the South and East Kuwait
asset are important for our success,
in the ofces, for studies, plans and
engineering studies as well as in the
eld. We have around 1,500 employees
working in Burgan directly that cover
technical services needed, from drilling
to surveillance, from contracts to human
resources administration, from HSE to
nancial services, all working towards
common objectives.
We also have contractors who work
with us as consultants for study teams,
envisioning projects, in engineering and
yes, in the eld as wells. We have an
extensive network of surface facilities
that are workforce-intensive, consisting of
14 gathering centres, two efuent water
plants, one water injection plant and then
gas booster stations, re stations and

June 2016

PM: Will the low oil

price environment
have an impact on the
elds capex?

more, to be able to produce 1.7 MMBOPD.

I am particularly proud of our people, as
it is thanks to them that we deliver our
production target every single day.

PM: How important is maintenance

and safety to maintain a eld
effectively?
Our priority is the safety of our
employees and our facilities. Just as we
care for the health of our employees, with
yearly medical check-ups, and complete
medical assistance services, we also
cater for our facilities in the eld, with a
complete maintenance programme, which
ensures we count with reliable and, most
importantly, safe facilities, to operate
within the highest international standards
of HSE. We do not want to risk lives or
incur the high costs of having to close a
facility in the eld, like a gathering centre
due to unwanted emergencies due to an
inferior-quality maintenance.
As an engineer who started my career in
maintenance, I am glad that the emphasis
on maintenance and safety is genuine.

THE DIGITAL OILFIELD

PILOTS HAVE BEEN
A GREAT SUCCESS
AND WE HAVE PLANS
IN PROGRESS TO
EXTEND THIS TO THE
REST OF THE FIELD
20

Pipeline Magazine

www.pipelineme.com

For now, KOC has not cut

the level of investment in
the projects for SEK. But
this does not mean that our
plans are unchanged. We
constantly review priorities
on where to invest and
there is increasing focus
on value and driving efciencies. The issue
is not about cost reduction; it is all about
smart investment decisions.

PM: Where do you see Kuwait oil

industry going and what is its
standing now?
The Kuwait oil industry is maintaining its
status as a reliable supplier, and will evolve
towards a more diverse portfolio, including
heavy oil and gas. The future of the energy
sector will surely continue to include the
State of Kuwait as a main player.
Kuwait has been blessed with an
abundant resource of oil and gas. These
resources have been historically in very easy
to access reservoirs, with relatively low
development cost per barrel.
The future brings increasing challenges
in extracting the remaining resources and
tougher new resources like heavy oil, deep
and sour gas. Even so, the technology
to extract the tougher oil and gas is well
established and our operating environment
makes it more economic to develop
compared to other parts of the world.

FEATURE: FIELD DEVELOPMENT

June 2016

PANGEA: BRINGING POWER

TO TOTALS RESEARCHERS,
GEOLOGISTS AND ENGINEERS

he Exploration & Production

teams at Total collect huge
amounts of data every day. This
data has to be processed efciently,
therefore high performance computing
(HPC) has been the strategic choice.
Total has been using supercomputers
for several decades, and continues to
invest in this eld to handle and analyse
data, in particular for seismic imaging
and reservoir simulation.
With continual innovation, and
technological breakthroughs, computing
power has evolved steadily, and early
in 2016 Totals latest supercomputer,
Pangea built by Silicon Graphics (SGI), was
upgraded from its original 2.3 petaop
capacity installed early in 2013 to 6.7
petaops, placing it among the top ten of
the Top500 ranking (Nov 2015), and rst in
the industry category of the list.
The main drivers for such IT investment
are to:
t
*NQSPWF
UIF
BDDVSBDZ
PG
TVCTVSGBDF

imaging,

22

Pipeline Magazine

Pangea draws
power from
221,184
interconnected Intel
Xeon processor cores
operating in parallel,
which is the equivalent
of more than
80,000 laptops
combined
t
0QUJNJTF
UIF
EFWFMPQNFOU
BOE

production of Totals producing elds,
and
t
5JNF
TBWJOH
CZ
TIPSUFOJOH
UIF
TUVEZ

duration.
This capacity boost will enable the use
of next-generation algorithms developed
by Totals R&D teams, allowing imaging

www.pipelineme.com

of increasingly complex regions and

producing high resolution eld simulations.

HPC infrastructures and software

The first Pangea system came from
a call for tender, which saw the main
HPC vendor bid. The evaluation criteria
considered cost, performance using
Totals in house software and algorithms,
and energy efficiency. The upgrade,
planned for within the initial tender then
finalised more recently this year, gave
a boost in computing power from 2.3
petaflops to 6.7 petaflops. Pangea draws
this exceptional power from 221,184
interconnected Intel Xeon processor
cores operating in parallel, which is the
equivalent of more than 80,000 laptops
combined. Its storage capacity has also
been increased to 26 petabyte (PB) - the
equivalent of six million DVDs and
in order to interconnect the computer
blades, and the storage, about 200 km of
optical fibers were installed.

FEATURE: FIELD DEVELOPMENT

June 2016

Since energy efficiency was part of

the tender criteria, Pangea came with
an extremely efficient cooling system.
To boost heat transfer and make the
machine more compact, water is injected
at room temperature (25C) directly onto
the computer blades, it then exits at
35C. The heat dissipated is used to help
heat the buildings at Totals Centre in Pau,
bringing cost savings and reducing Totals
environmental footprint.
Such large systems require a lot of
power, and Pangeas 4.5 megawatt
electrical rating makes it the largest
consumer at Totals Scientific and
Technical Centre in Pau.
Totals team in Pau, together with an
onsite SGI professional service team, look
after the operation of Pangea, along with
the evolution and optimisation of software.
Total has developed proprietary algorithms
to process its seismic data. This is done
in-house, in short time frames, close
to the interpreters, able to benet from
continually evolving R&D, and upgrades
in industrial software, thanks to the close
link maintained between the R&D, and the
production teams.

24

Pipeline Magazine

www.pipelineme.com

FEATURE: FIELD DEVELOPMENT

June 2016

Health, Safety & Environment

Benets for seismic imaging

Seismic imaging is a prerequisite for any hydrocarbon
exploration and development project. The benefits of seismic
imaging are many fold, providing better imagery of hydrocarbon
traps, with better positioning accuracy, in order to gain an
overall improved understanding of the subsurface.
Totals internally developed imaging algorithms running on
Pangea deliver real added value, from acquisition feasibility
to seismic imaging of data acquired from all over the world.
The supercomputer is used early in planning seismic surveys
in order to identify best designs and thereby optimise the
parameters and costs of our acquisitions, which often reach
several million dollars. By processing seismic imaging Pangea
lets us minimise approximations and increase the number of
iterations used in the image construction, providing:
- Faster turnaround of jobs using existing technology, enabling
more extensive scenario testing,
- A further step towards complete simulation of seismic wave
propagation in inversion and imaging,
- The use of iterative imaging algorithms to minimise artifacts.
Pangea delivers greater accuracy from the entire data
acquisition, processing and seismic imaging chain with better
control over production lead times.

i

Hazard Identification

i

HAZOP

i

Quantitative Risk Assessment

i

SIL Assessment, Verification and Validation

i

Pipeline Risk Assessment

i

Pipeline Integrity Management

i

Health, Safety & Environment Impact Assessment

i

Energy Management Audits

i

HSE Management System Consultancy and Audits

i

Computational Fluid Dynamics (CFD) based Fire & Explosion Assessment

i

Fire & Gas Mapping

i

Asset Integrity Management

Bell Energy, Abu Dhabi

P.O. 47215, Abu Dhabi, UAE
(T) +971 (2) 6761932 (F) +971 (2) 6761900
(W) www.bell-energy.com
(Email) uaeoffice@bell-energy.net

Benets for reservoir simulation

After a hydrocarbon eld has been discovered, the interpreters build
a reservoir model from which ow simulations can be run. Because

Australia | Canada | India | UAE | UK | USA

www.pipelineme.com

Pipeline Magazine

25

FEATURE: FIELD DEVELOPMENT

they integrate seismic, geological, uid, well

and surface data, reservoir simulators can
be used to forecast the production rate of a
eld throughout its entire life.
Pangea enables simulation, at an
unprecedented level, of complex uid
ows by using a very accurate and
detailed representation of the reservoirs.
Several simulations can be created based
on different geological scenarios, which
ensure that geoscience uncertainties are
better accounted for.
Regarding integrated modellingwhich
includes reservoir, well and surface
modelsPangea has allowed Total to make
exceptional gains in terms of performance:
simulations that once took a week can
now be done in a few hours.
These simulation runs help select
the best development scenario to
maximise profitability. Pangea, together
with our Next Generation Reservoir
Simulator INTERSECTTM (Trade Mark of
Schlumberger, is jointly developed by
Chevron, Schlumberger and Total) :

26

Pipeline Magazine

June 2016

Its storage
capacity has also
been increased to

26 petabyte

subsurface and surface modeling.

In the research area Pangea offers very
exciting prospects, rstly in the domain of
pore and micro-scale ow modeling and,
secondly, in the simulation of interactions
between rock and uid molecules at
nanometric scale.
Pangea delivers very fast simulations,
which allow teams to be more responsive
with better study data when it comes to
making the right investment decisions.

Conclusion

- Boosts our study accuracy, as seismic

and geological models can be simulated
without deterioration of data,
- Saves time by accelerating calculations,
- Allows us to undertake comprehensive
multi-scenario studies and integrated

www.pipelineme.com

For all of our engineers and researchers,

the increase in Pangeas computing power
is a remarkable improvement in terms of
time, reliability and accuracy.
But this is not the end of the story, as we
continue to look at taking advantage of next
generation high performance computing
capabilities, data analytics and deep learning
as these will all become important drivers for
the evolution of oil and gas technology.

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For further details please contact:

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Tel: +971 4 8108 600 Email: sales@mtcltd.ae

FEATURE: UNMANNED VEHICLES

June 2016

BRINGING DRONE INSPECTION

TO INDUSTRIAL AREAS IN UAE
Inspection of two live flares conducted by a drone at an onshore plant in Abu Dhabi over the course of two days

ky-Futures has completed one

of the rst inspections at an
MOD controlled site by drone
for a major steel production company
onshore in Abu Dhabi, UAE.
Using Sky-Futures proven procedural
documentation, pilot certication, UAV
specications and ight planning; approval
was given for one of the rst uses of
a drone to provide inspection services
in the industrial sector. The inspection
was completed with the permission of
the government, with formal approval
from Department of Transport (DOT) and
General Civil Aviation Authority (including
GHQ security clearance).
Sky-Futures team of trained remote
pilots and engineers had to inspect two
live ares within a limited shutdown
window, without affecting other planned
maintenance activities. Due to the speed
and efciency of Sky-Futures inspection
team, the inspection of the ares were
completed within hours of arrival at both
sites over the course of two days and did
not impact other maintenance activities.
Its estimated that the inspection saved a
minimum of ve days shutdown at each
plant, which not only saved money, but
also energy during cool down and re-start Sky-Futures engineer and pilot
of furnaces, as part of Emirates Steels
ongoing Green Initiatives and Energy
Conservation programmes.
Following the inspection, HD imagery
and video data collected was reviewed by
Sky-Futures are and structural engineers
before being delivered to the client through
Sky-Futures proprietary data platform.
Emirates Steel, the only integrated steel
plant in the UAE, is one of the rst clients
to receive the inspection report in the latest
Sky-Futures has now completed drone based
software viewing portal, enabling easy
inspections for clients across four separate
access to both engineering assessment
regions in the last two months; USA, Europe,
details, as well as still and video imagery
Southeast Asia and, now the Middle East.
at the click of a button. This also facilitates
This latest achievement is testament to
comparison to future inspections, providing
Sky-Futures leading operational efciency
clients with a useful tool as part of a wider
and safety approach, and demonstrates the
Risk Based Inspection strategy.
value of working closely with our clients and
James Harrison, co-founder and CEO,
local authorities to perform inspections which
Sky-Futures, said: This work means that

Emirates Steel, the only

integrated steel plant in
the UAE, is one of the
first clients to receive the
inspection report

28

Pipeline Magazine

www.pipelineme.com

increase safety and save our clients money.

Nigel Baxter, business development
director Middle East, Sky-Futures, added:
Typically the are is the last item to
be taken into shutdown and has to be
available for the start-up, historically this
has meant that these ares had not been
inspected since the plants start-up 6 years
ago. Inspections by drone now enables
the client to plan a safer and more detailed
repair programme and better understand
their integrity and maintenance risks,
without shutdown. Sky-Futures is proud to
be leading the way in applying drones for
positive applications for our Middle Eastern
clients by working closely with government
departments to deliver this work within the
countries regulatory frame work including
air safety, licensing and security.

FEATURE: UNMANNED VEHICLES

June 2016

HELP
P FROM THE AIR
TO SPOT GAS LEAKS
K
A case study from FLIR about how its optical gas imaging cameras
helped to spot gas leaks at Al Hosn Shah plant in Abu Dhabi

atural gas processing plants,

such as the Al Hosn Shah plant
in Abu Dhabi, purify raw natural
gas by removing certain contaminants.
These contaminant gases are often
very dangerous for human exposure
and therefore, gas pipelines and other
infrastructure need to be carefully
monitored for leaks. An innovative
combination of UAV and optical gas
imaging technology was tested and
turned out to be a very efficient way of
monitoring vast gas fields.
The Shah sour gas field is located
around 180 km southwest of Abu Dhabi,
in the UAE. The new Shah Gas processing
plant is designed to process 1,000

30

Pipeline Magazine

MMSCFD (million metric standard

cubic feet per day) of sour gas. The
plant is located in three adjoining low
flat areas on the East-Central side of
the Shah Field with an East to West span
of about 6 km. The processing of sour gas
with a high concentration of dangerous
hydrogen sulfide (H2S) gas the so-called
sweetening process is confined to the
Western Area.

Monitoring for dangerous gases

In spite of the many safety measures
for the Al Hosn Shah plant staff, the
Western Area, marked as the red zone,

www.pipelineme.com

still presents a significant health and

safety risk for maintenance professionals
and other operators.
Some gases are very poisonous,
corrosive, flammable, and explosive,
said John Rennie, operations director
at Inspectahire, a leading inspection
company and supplier of specialist
remote visual inspection technology.
The company had been using so-called
sniffers to detect gas leaks, but this is
not an efficient way to cover such a vast
network of pipelines, and it is very unsafe

FEATURE: UNMANNED VEHICLES

June 2016

for the operator. Thats why Al Hosn Gas

reached out to us to find a more efficient
way to scan the area for leaks.
The sniffer is a hand probe that
produces an audio-signal when in
proximity of a leak. Although this is a
relatively affordable detection method,
the snifng test requires the operator to
approach closely to the leak source, which
can be dangerous. Sniffers do not allow
operators to see a leak, so there is always
some guesswork involved and time lost
in the search for the source. Inspectahire
has a long history of working with thermal
imaging cameras from FLIR Systems, so
the company knew that the solution for Al
Hosn Gas had to be sought there.

such as the T-Series and GF-Series. While

discussing the Al Hosn Gas project,
both companies decided to bundle their
knowledge in the field of optical gas
imaging and aerial inspection. They came
up with a joint solution based on the FLIR
G300a camera.
A lot of companies have been
integrating FLIR camera cores on their
UAV systems, added Daniel Sllstedt,
CEO at Sky Eye Innovations. We

take a different approach, because

we start by looking at a complete
FLIR camera system and then build a
UAV system around it. In addition, we
pay attention to building in extra fault
tolerance features, like redundant flight
control, in order to make sure that our
customers investment is safe.

Thermal imaging on a UAV

At an Infrared Training Center (ITC)
session in October 2014, Inspectahire
met with the team from Swedish UAV
integrator Sky Eye Innovations. This
company has been working with FLIR
for several years by building dedicated
UAV systems around FLIR cameras,

FLIR G300a optical

gas camera

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Pipeline Magazine

31

FEATURE: UNMANNED VEHICLES

In the presence of some members

of Al Hosn Gass integrity management
team, we organised a demonstration
with the Sky Eye UAV and a FLIR G300a
optical gas imaging camera near the FLIR
offices in Sweden, added John Rennie.
The test flight went very well and the Al
Hosn Gas team decided to have another
test flight at the Abu Dhabi plant to
further convince the management team
of this solution. Also here, the test was
very convincing. We placed a leaking
gas bottle on the ground and were able
to monitor very accurately from the air
with the FLIR G300a. This convinced the
management team to have a test flight
over the red zone too. And although we
did not actually find a gas leak there, we
can call this flight a success.

Cooled detector makes the smallest

temperature differences visible
Optical gas imaging cameras from FLIR
can visualise and pinpoint gas leaks that are
invisible to the naked eye. With an optical
gas imaging camera it is easy to continuously
scan installations that are in remote areas or
in zones that are difcult to access.
The FLIR G300a optical gas camera
contains a cooled Indium Antimonide (InSb)
detector that produces thermal images of
320 x 240 pixels. With its low F-number
(quantitative measure of lens speed) and
high sensitivity, the G300a detects the
smallest of leaks. The camera also has

32

Pipeline Magazine

June 2016

Key fact: The new Shah

Gas processing plant is
designed to process 1,000
MMSCFD of sour gas
FLIRs High Sensitivity Mode (HSM) which
further enhances the detection level of
the camera so that the smallest gas leaks
can be detected. The FLIR G300a is very
easy to control from a safe distance over
Ethernet and it can easily be integrated in a
TCP/ IP network.

Ideal gas camera for UAV integration

The combined expertise from FLIR,
Inspectahire and Sky Eye is truly unique.
The FLIR G300a is really an ideal camera
for our Sky Eye OGI UAV system, said
Daniel Sllstedt. The G300a is very light
and compact in fact the first optical
imaging camera that is so light which
makes it extremely suited for extended
UAV flights. We have made it possible
for the operator to control the camera
remotely from the ground with a joystick
and operator screen. The FLIR cameras

www.pipelineme.com

connectivity is what makes it truly unique

in the market. The image quality is what
you can expect from a world leader in
thermal imaging. Especially the High
Sensitivity Mode is very useful when you
need to see moving gas fumes.
The gas market will really be able to
benefit from this technology. Gas plants
are usually very wide, so with our UAV
solutions you are able to scan these
large areas very efficiently and also to
provide a good overview. They can take
you to places that are hard to reach or
that would take a lot of effort to go to.
Gas processing plants usually have risky
areas, like the red zone at the Al Hosn
Shah Plant. Optical gas imaging cameras
like the FLIR G300a can scan these
hazardous areas without any risk for
human operators, he concluded.

FEATURE: PIPELINE MAINTENANCE/SAFETY

June 2016

STEELCORR COLD GRINDING/CUTTING

TECHNOLOGY NOW IN THE REGION
Pipeline Magazine speaks to SteelCorrs managing
director Leroy Dias about the unique nature of its
pipeline technology that it has brought to the region

teelCorr specialises in coating

consultancy and paint inspection
and in 2015 it brought its unique
tools to the region.
Our service offering includes freelance
paint inspectors, coating specication
design/review and failure investigation.
Additionally, we represent Safety Tools
Allmet of Norway who developed the
worlds only ATEX Certied non-sparking
Cold grinding and cutting tools. These are
the only equipment with DNV certication
for use in potentially explosive atmospheres
Ex Zones 1 and 2 and enables surface
preparation for paint application, metal
removal and cutting of steel without hot
work, Dias explained.
Statoil Norway funded the research and
development of these unique tools in 2000
and according to Dias they have been used
in hazardous and explosive environments
around the globe for over a decade without
any incident.
We brought this technology to the
Middle East to enable asset owners to
perform safe, efcient and cost effective
maintenance. The proven track record of
the tools is documented by many major oil
and gas companies, allowing maintenance
managers to radically change their mind-set
on the approach to maintenance, he added.
SteelCorr introduced these tools to
the Middle East and India in January
2015 and has since then added a number
of clients including Salalah Methanol,
Dubai Petroleum, Vopak, ONGC,
Reliance, British Gas India, Mideast Ship
Management and Adyard.
A noteworthy project is the re-coating
of 17,000 m2 of live pipelines on the deck
of an operating FPSO Dhirubhai-1, owned
by Aker Floating Production. All surface
preparation on corroded areas was done
using our simple pneumatic hand carried
equipment and a surface equivalent to
Sa2.5 with a 40-70 micron prole was
achieved without collateral damage to the
vicinity. The project was completed over a

34

Pipeline Magazine

two year period without

a single LTI, he said.
SteelCorr offers
an alternative to
conventional abrasive
blasting and ultra-high
pressure hydro jetting
used during pipeline
maintenance.
He noted: Activities
including but not
limited to; removal of
coating for NDT, surface
preparation for coating
maintenance, removal of
jammed bolts, removal
of supports and cutting
of live pipelines which
would normally involve
hot work and need
shutdown can now be
achieved conveniently
in-situ without stoppages.
SteelCorrs equipment offers unparalleled
benets, according to Dias.
The absence of sharp ying splinters,
3,000 RPM maximum, noise level below
85 dB and vibration level below 2.5 m/s2
ensure operator safety even for extended
operations. The le heads last 100 times
longer than conventional le heads, which
makes it very cost effective. And to top
it all, the equipment comes with a US$5
million worldwide insurance cover for
public liability, product liability and 3rd
party liability.

Challenges
Coatings on pipelines need to be well
maintained through the lifetime of the
asset. A lack of preventive maintenance
will cause the steel to deteriorate and pose
structural integrity issues.Corrosion under
insulation is another major consideration
since deterioration often progresses
unabated under the insulation, and very

www.pipelineme.com

We brought this
technology to the Middle
East to enable asset
owners to perform
safe, efficient and cost
effective maintenance
often noticed too late. Finally, accurate
monitoring and identifying a feasible
solution is the key to success.
Dias touched on the main challenges the
rm has faced when working on pipeline
projects in the region.
Getting people to embrace new
technology is always a challenge. Asset
owners need to understand that in
the current eco-system with pressure
on spend, we must turn to innovative
alternatives to help reduce cost without
compromising safety and quality. This is
where our equipment adds value, he said.

/ Perfect Welding / Solar Energy / Perfect Charging

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POSSIBLE IN THE MIDDLE EAST.
ONE POWER SOURCE FOR ALL PIPELINE
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/ contact.middleeast@fronius.com / www.fronius.ae

FEATURE: PIPELINE MAINTENANCE/SAFETY

June 2016

EXPERTS
TS ON WELDING PIPELINES
Pipeline Magazine hears from Fronius Middle East managing director and technical manager about its
expertise in welding pipelines and the main challenges the firm faces in the region

ronius is a company with more

than 70 years of experience
and provides state of the art
technology for welding and cladding
applications.
We opened Fronius Middle East FZE
a year ago in Jebel Ali. We have a very
strong technological base and our team
in the Middle East has received extensive
training from our parent company in
Austria. We have Austrian experts
available in Dubai for any application or
technological development, said Korayem
Razik, managing director.
He added: Our main strength is
being user friendly, robust and working
under the toughest conditions. With
our most advanced technology of LSC
Advanced (Low Spatter Control), we are
able to weld pipes, especially the root

36

Pipeline Magazine

pass, with greater

ease. Our TPS400i
Advanced (Trans
Process Solution) is
the most suitable
machine for pipeline
welding right from
root pass until fill and
cap using the same
synergic line unlike
our competitors.
The machine is very
simple to use with
touch screen display
which is tested under
realistic conditions.
The Middle East is

Korayem Razik

www.pipelineme.com

FEATURE: PIPELINE MAINTENANCE/SAFETY

June 2016

We are aiming to be
the number one in
welding in the region
and to be as successful
as we are in Europe
very easy for the welders to operate.
Fronius has been present in the
Middle East for 20 years and has a good
customer base.
We are aiming to be the number one
in welding in the region and to be as
successful as we are in Europe, as the
market now needs long-term partnerships
with strong companies who can give
them the efficient solutions to increase
their productivity, Razik added.
He explained: We are working on
various projects in the UAE and the
wider region with a focus on pipeline
welding solutions and also on weld
overlay cladding solutions for pipes and
various other oil and gas components
such as valves, BOPs etc. With our latest

Gerhard Ofner
technology of Speedclad (Bi-cathode
Cladding), we are offering solutions to
our customers which are two times faster
than the conventional cladding solutions.
Overall we see a good growth for Fronius

in the coming years.

The firms technical
manager, Gerhard Ofner,
discussed what the critical
issues are when it comes to
pipeline maintenance.
Due to high Sulphur and
CO2 contents in the crude oil
in region, the pipelines need
a better corrosion protection.
Our state of the art cladding
systems are the best solutions
for overlay cladding. Our
Speedclad technology is the
latest offering from Fronius
aimed to reduce the downtime
with faster cladding process.
He concluded: Pipeline
projects in the region are
a real testing ground for
any equipment to check its
durability and toughness. We
dont face any issues regarding
temperature as our machines are tested
to the highest standards in our research
and development facility and are designed
to perform at their best capability in such
soaring temperatures.

Lubrication Injection Fittings

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Since 1995, Bhola Engineers is

manufacturing of Industrial valves
& instrumentation valves & ttings.
All the products are manufactured in
accordance with ANSI, ASTM, ASME,
API, PED/CE marking
Certication:
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Plot No. 53/65, Apple Industrial Hub, National Highway

No. 8, Near Nallasopara Phata, Vasai (E), Phalgar-401208,
MAHARASHTRA, INDIA

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Tel.:+91-250-6597222/ 6597333
Telefax: +91-250 6597444
Email: info@bholaengineers.com

www.pipelineme.com

Contact Person: Mr Sohel Bhola - CEO

Cell: +91-9820556902
Email: sohelbhola@bholaengineers.com

Pipeline Magazine

37

FEATURE: PIPELINE MAINTENANCE/SAFETY

June 2016

PROVIDING NDT
T INSPECTION
C
SOLUTIONS
S TO THE INDUSTRY
By: Gareth Venter, managing director, Gammatec Middle East

ammaTec NDT Supplies was

founded in South Africa in
1981. The company was born
out of necessity for and the increasing
demand for improved NDT Inspection
Technologies that were very limited
in South Africa during the isolation
and sanctions period imposed on the
country. Today GammaTec remains true
to those pioneering principles and is
still 100 per cent focused on delivering
one stop shop NDT Equipment and
solutions of the highest quality for all
methods of NDT required to carry out
pipeline inspection.
GammaTecs strength is our complete
range of Radiographic Technique Inspection
Equipment which includes the in-house

manufacture of our own range of Gamma

Radiographic Projectors, accessories
and consumables. This, combined with a
knowledgeable team of sales engineers

that are out in the eld everyday ensuring

economical and safe solutions to our
customers around the globe.
Gammatec South Africa made the

Engineering services and products defined by knowledge, experience

and innovation. Maintain your plant operability and minimise loss
of production with safe and cost-effective intervention work.

Hot Tapping and Line Stopping (Onshore and Subsea)

Cold On-Site Machining Solutions
Composite Repair Systems
Under Pressure Leak Sealing Solutions
Online Safety Relief Valve Testing (UNITEST)
Pipeline and Plant Decommissioning and Demolition Solutions

engineering@uniquegroup.com
www.uniquegroup.com

Survey
Equipment

38

Pipeline Magazine

www.pipelineme.com

Marine
& Subsea

Diving &
Life Support

Buoyancy
& Ballast

On-Site
Engineering

Specialised
Boats

FEATURE: PIPELINE MAINTENANCE/SAFETY

June 2016

decision to invest and open a Middle East ground oor presence

in 2004, in a market that Gammatec SA had been exporting
product to since 1994. Management applied the same founding
principles as the operation in South Africa. For us the most
important factor was to rst set up our after sales maintenance
workshops to ensure that any product we supply in the market
place could be taken care of with very little down time and loss
of revenue to the customer. This blueprint has stood us in very
good stead and engendered our customers with condence in
our brand and trust in our products.
Gammatec is a supplier of a broad range of NDT Inspection
Products that get used on a daily basis by inspection companies
who are contracted to EPCs appointed by NOCs throughout the
GCC. Our equipment has been used on many signicant projects

ICM

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such as oil and gas pipelines Mina Al Ahmadi, Upper Zakum
Crude, Qarn Alam EOR to name a few.
Critical issues when it comes to pipeline maintenance is that
the asset owners must deal with both internal and external
corrosion, mechanical failures and detection of leaks. Ongoing
asset integrity maintenance and utilising the latest technology
that matches the best method of inspection available that
produces consistent results is the key solution to addressing
these critical issues. The saying here, prevention is better than
cure is very true when it comes to extending the lifecycle of
existing pipelines. NDT solutions are also critical in safety of
personal as structural failures invariably result in injury or death,
and the site recovery from an incident can also be hazardous.
In the GCC the summer months ambient temperatures
exceed 50C, which makes many methods of inspection
challenging.
GammaTecs diverse range of products, expertise and
experience means there are very limited projects on the
planet where we cannot offer a solution to either new build or
maintenance projects of pipelines.

www.teledyneicm.com/ndt

www.pipelineme.com

http://www.gammatecsa.com
gme@gammatecme.com

Pipeline Magazine

39

FEATURE: CLYDE & CO.

June 2016

GLOBAL OIL PRICE

VOLATILITY REPORT
Clyde & Co oil price volatility report: Majority see OPEC policy as the most important
geopolitical factor affecting oil and gas businesses
By: Richard Devine and Ana Severova, Clyde & Co LLP

ow oil prices continue to have a

signicant impact on the oil and
gas sector. From job losses and cuts
to projects to potential opportunities
businesses need to be well-prepared for
the challenges ahead.
Clyde & Co, in its recently published
Global oil price volatility report: Risks
and opportunities in 2016 surveyed a
broad cross-section of senior executives,
senior in-house counsel, and commercial
and contracts managers amongst others.
Respondents ranged from NOCs, IOCs and
contractors to nanciers and traders based
in key oil and gas jurisdictions worldwide.
The aim of the survey was to determine the

global trends, challenges and concerns in

light of the low oil price, and to identify
positive business opportunities.

WHAT WILL BE THE MOST SIGNIFICANT

GEOPOLITICAL TRENDS AFFECTING YOUR
BUSINESS IN 2016?

Industry drivers
The impact of OPEC policy emerged as the
single most important geopolitical factor
affecting oil and gas businesses according
to nearly three quarters of the respondents.
Industry players continue to look to OPEC to
resolve market imbalances.
The next two most pressing concerns
were the slowing of the Chinese economy
and the lifting of Iranian sanctions.

The EU lifted Iranian sanctions on 16 January 2016. The

survey was conducted following this announcement.

majors was highlighted by 15 per cent as the

most important market trend.

Market trends
Impact on business
Reduced protability of exploration and
For two-thirds (67 per cent) of the
production operations, together with lack
respondents, reducing headcounts will
of appetite for investment in new projects
be the most signicant change in their
emerge as the primary concerns for the
businesses operations over the next year.
industry. In addition, four in ten expect to
Cancelling or freezing planned projects
be affected by the failure or insolvency of
was highlighted by 55 per cent of the
existing oil and gas or service companies.
respondents, and 50 per cent say there will
A fth (21 per cent) of respondents expect
consolidation
of both E&P
WHAT MARKET TRENDS DO YOU EXPECT TO AFFECT YOUR
and service
BUSINESS MOST IN 2016?
companies to
70
have a major
60
effect on their
business.
50
Supply chain
40
consolidation
of oil and gas
30

20
10
0

40

Pipeline Magazine

64% 60% 41% 35% 21% 15%

R d d
Reduced
protability/
viability of
E&P
activities

www.pipelineme.com

LLackk off
appetite for
investment in
new projects

FFailure
il /
insolvency
of existing
companies

LLackk off
appetite for
investment
in existing
projects

CConsolidation
lid ti
SSupply
l chain
h i
of service
consolidation
and E&P
companies

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FEATURE: CLYDE & CO.

June 2016

be a change in their business processes to

increase efciency.
The consolidation of the supply chain is a
critical question. The drive towards costcutting in transportation and distribution
is already causing pain in the downstream
supply chain, with almost one in ten (9 per
cent) saying this issue is the most pressing
concern for their business.

Business response
Unsurprisingly, the survey shows that
most companies are taking a cautious
or reactive response to market changes.
However, a signicant minority (22 per
cent) are adopting an aggressive or
opportunistic stance.
Market participants are set to pursue
a range of strategies to deal with market
conditions. Restructuring of businesses
or assets is key almost a third of
respondents see this as a priority. Only
5 per cent mentioned investment in
renewable energy. Investing in shale
energy did not feature at all a telling
sign of the changing fortunes of
unconventional hydrocarbons.
Notably, while almost half (41 per cent)
of IOCs see restructuring as a key priority,
25 per cent of NOCs listed development
of their downstream capabilities as their
main focus.
Whilst entry into new markets is off the
table for many, a small minority of agile
IOCs and NOCs expect to take a proactive approach to opportunities in growth
markets, taking advantage of cheaper
assets or gaps left by others.
Managing supplier and contractor
relationships proactively in a challenging
environment is vital. However, our survey
shows that many businesses are taking a
wait and see approach.

M&A activity
The changes necessitated by market forces
may lead businesses to address structuring,
employment and regulatory requirements,
and to seize business opportunities.
Whether as part of a pro-active strategy or
due to nancial necessity, an increase in M&A
activity over the next 12 months is inevitable.
We asked what will be the focus of such
activity, a key question for helping businesses
plan potential divestments and acquisitions.
88 per cent of our respondents expect
upstream operations to see the most M&A
activity. Company-wide activities or entire
asset portfolios (32 per cent) and multiple
specic assets or parts of companies (36
per cent) were identied as assets that will
attract most attention.
Interestingly, the survey shows that the
appetite for strategic business growth or
acquisition opportunities is greater than the
motivation to divest assets (45 per cent
compared to 31 per cent). Many companies
looking for strategic growth may nd buying
assets at bargain prices from insolvent
companies an attractive prospect. Being
able to move quickly will be an advantage,
while due diligence and careful risk allocation
should be used as risk management tools.

Industry outlook
The effect of the market conditions is
tangible. Nine out of ten of respondents said
the slump in oil prices has affected the majority
or the entirety of their business. Most (87 per
cent) predict that the cost of Brent crude will
remain low to moderate, at US$30-US$50.
Despite this, half of those surveyed expect
global oil production to remain steady, with
just over a quarter expecting it to increase.
For many businesses sustaining production

WHAT ONE STRATEGY WOULD YOU DRIVE AS A PRIORITY IN

LIGHT OF THE CURRENT MARKET CONDITIONS?

DO YOU PREDICT THAT IN 2016, THE

AVERAGE OIL PRICE (BRENT CRUDE/
BARREL) WILL BE:

will mean cost-cutting. However, making too

many cuts may create new problems, leaving
businesses facing skills shortages and capacity
constraints if prices rebound.
The oil price may recover eventually but
some of the changes to business models and
strategies are likely to remain. One key point
is the need for greater agility with a focus on
smaller and more exible capital-light projects.
Concerns over cancelled or broken
contracts also loom large. 86 per cent of
respondents expect this to be the main
cause of disputes over the next year,
followed closely by JV partners, contractors
or suppliers becoming insolvent or unable to
full their contractual obligations (81 per cent)
and payment issues (67 per cent).
As a result of the nancial pressures,
companies are far more inclined to litigate
or arbitrate. Common causes for disputes
include non-payment, termination of
contracts, and JV/PSA disputes. Most (83
per cent) expect that the majority of disputes
would arise in the upstream sector.
Overall, industry players see the road
ahead as challenging. While 19 per cent
described their outlook for 2016 as optimistic,
most (81 per cent) are concerned.
Richard Devine leads the MENA oil and gas
group and is based in Dubai. Ana Severova is a
Senior Associate in the Dubai ofce
The survey was published in February 2016.
For information on the methodology of the
survey, please contact energy@clydeco.com

WHICH STATEMENT BEST DESCRIBES HOW YOU ARE

MANAGING YOUR CONTRACTORS OR SUPPLIERS?

www.pipelineme.com

Pipeline Magazine

43

FEATURE: EMERSON USER EXCHANGE

June 2016

OIL FIRMS MUST ADAPT TO NEW

REALITY OF LOW OIL PRICES
Chris Kelly attended Emersons User Exchange 2016 event in Brussels, to find out how process automation and
asset optimisation can help companies attain top quartile performance during the current cycle of low oil prices

ast month Emerson hosted its annual

User Exchange event in the beautiful
Belgian city of Brussels. Over 1,000
attendees ocked to the event to hear how
the new reality of low oil and gas prices
is providing opportunities for companies
to focus on the core competencies of
reliability and protability.
The event was hosted in Brussels
prestigious The Square conference centre,
and featured a conference agenda packed
with insight from a range of industry experts.
During his welcome address, Emersons
president for Process Management, Steve
Sonnenberg, said that the current climate of
low oil prices forms part of a new reality
that oil rms must learn to negotiate, if they
are to remain protable.
I think these [low market] conditions are
going to be with us for some time, although
there might be some volatility in the
short term. I can foresee a slow recovery
in energy prices and that is why we are
referring to the current climate as the new
reality because the whole world has been
ipped upside down, said Sonnenberg.
Sonnenberg said that it was crucial for
oil and gas rms to plan for a protracted
period of low oil prices. While low oil
prices have forced companies in the oil
and gas sector to change the way they do
business, Sonnenberg was upbeat about
the industrys prospects.
Of course with this new reality comes
new opportunities: new opportunities to
move beyond our previous practices and
to try new ideas; to focus our efforts and
investments where they have the greatest
impact, he said.
The new reality of US$40 oil has
forced companies to focus on optimising
performance, streamlining processes and
increasing the reliability of their assets,
in an attempt to squeeze every last drop
of revenue out of every barrel of oil. This
increased focus on reliability and asset
optimisation is a genuine opportunity
for the oil and gas sector to transform

44

Pipeline Magazine

I think these [low market]

conditions are going to be
with us for some time,
although there might be
some volatility in the
short term that is
why we are referring
to the current climate
as the new reality
Steve Sonnenberg, Emersons president
for Process Management

itself in the years to come, according to

Sonnenberg. By aiming for top quartile
performance in a range of sectors, oil and
gas companies can thrive, even under such
challenging market conditions.
For the top quartile companies that we
have worked with, the answer has been to
nd an entirely different approach. These
companies have found a lever a lever
gives you an advantage and allows you to
move things that you couldnt move before.
Archimedes said: Give me a lever and a
place to stand and I can move the world.
What he is talking about is gaining a fresh
perspective. In a business sense, nding
the right lever for your situation will mean
looking at new and creative solutions to
existing problems.
Sonnenberg argued that by focusing
on achieving top quartile performance, oil
rms can dramatically increase production
levels, boost uptime and become leaner
more efcient businesses. It also offers
rms the chance to dramatically reduce their
energy consumption, thus improving their

www.pipelineme.com

environmental performance and reducing

their carbon emissions.
Focusing on asset reliability is certainly
a lever that you can use to transform the
performance of your operation. Another is
the area of energy and emissions. You might
ask why should I worry about energy costs
right now, while they are so low?
I think there are two reasons. First of all,
its likely that energy consumption is still your
single biggest variable operating cost up
to 30 per cent for a typical industrial facility.
Studies have shown that up to 37 per cent of
that energy is wasted. Eliminating that waste
offers a real opportunity to improve prots
and also to protect those prots from volatile
energy prices in the future.
The second and most pressing reason
to be more energy efcient is that higher
energy efciency translates to lower carbon
emissions. I dont need to tell you how
important that is. Facilities that are being run
today are being tasked with implementing
the targets introduced last year at the COP
21 Conference in Paris, he said.

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PRESIDENT OF THE ARAB REPUBLIC OF EGYPT

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Cairo International Convention

& Exhibition Centre

FEATURE: EGYPS 2017

June 2016

EGYPT THE GATEWAY

TO A NEW ENERGY FUTURE

EGYPS
EGYPT PETROLEUM SHOW

for revealing best practices, knowledge

sharing and unrivalled networking.
The event also celebrates diversity, with
a special focus each year on the growing role
of women in the industry, and a dedicated
programme for graduates and job seekers,
as well as fostering long-running close
partnerships with key industry players, locally,
regionally and internationally, he added.

Developments

he Egypt Petroleum Show held

under the Patronage of His
Excellency President Abdel Fattah
El Sisi, President of the Arab Republic
of Egypt set to take place from February
14-16, 2017 in Cairo, is gearing up to
be the biggest oil and gas event of
its kind in Egypt, providing the most
signicant annual meeting place for the
industrys key regional stakeholders and
international oil and gas players looking
to do business in North Africa.

WHY EGYPT?
Even in a period dominated by low oil
prices and changing market dynamics,
theres a great deal of industry interest and
excitement across North Africa, following
the discovery of the supergiant Zohr eld
offshore Egypt.
Egypts strategic location makes it a
perfect meeting place for Europe and the
Middle East. With excellent infrastructure
and a burgeoning energy industry, the eyes
of the industry are closely watching Egypt as
a nation to invest in.

Scan recent media and you will see high

levels of interest, such as Saudi Arabias
recent decision to invest US$8 billion in
helping Egypt meet its petroleum needs
in the next ve years, along with another
US$4 billion in investment pledges from the
nations other Arab neighbours.
ENIs discovery of the supergiant Zohr
eld is a game-changing event, and one
that will change the face of Egypts energy
industry and allow greater security of supply.
Total gas in place is around 850 billion cubic
metres (30 trillion cubic feet). If true, Zohr
will almost double Egypts gas reserves.
Production is expected to begin in Q4, 2017,
with ENI already disclosing plans to link four
wells to Egypts national grid in 2018.
There has never been a better time to
launch an oil and gas event in the North
African country, according to Nick Ornstien,
executive director, dmg events, Energy
Division, organiser of the new EGYPS 2017
Conference and Exhibition.
Ornstien said: With EGYPS 2017, we
hope to make Cairo a new global meeting
place for the oil and gas industry. The
event will become synonymous with
setting the industrys future agenda;

The Egyptian General Petroleum Corporation

(EGPC) has launched a new international bid
round for oil research and exploration.
The bid includes 11 blocks in the
sedimentary basins, of which ve are in
the Gulf of Suez North-East of October,
North-East of Al Hamd, North-East of
Ramadan, East Badri, North Maritime
Esran. The other six blocks are being
offered in the Western Desert North-West
Razak, South-East Maleeha, North Um
Baraka, South Allam Al Shaweesh, West
Badr Eddin, and South-East Siwa.
The bid round comes within the
framework of the governments strategy
to insure energy supply. International bid
rounds and signing new oil agreements
are a cornerstone of the strategy and the
main motive for operations in the oil sector
aiming at increasing production, intensifying
research and exploration, and encouraging
foreign investments.
Sources reveal there are more bid rounds
planned to be announced later in the year.
The bids include new areas afliated with the
Egyptian Natural Gas Holding Company and
Ganoub El Wady Holding Petroleum Company
(Ganope), both onshore and offshore.
Sources added that Egypt has rich
potential to attract foreign investors as the
government exerted efforts to create a
supportive investment climate, to develop the
infrastructure, and to establish developmental
projects focusing on improving living
conditions and raising growth rates.

To nd out more about exhibiting or sponsoring the Egypt Petroleum Show 2017,
visit www.egyptpetroleumshow.com or email egyps.sales@dmgeventsme.com
www.pipelineme.com

Pipeline Magazine

47

TOOLS AND TECHNOLOGY

June 2016

AnTechs new wellhead outlets

Type FC Wellhead Outlet

AnTech has launched three new
products within its best-in-class
Wellhead Outlet range.
The Type-C Wellhead Outlet, which was
designed and developed by the company for
use in hazardous environments, has been
on the market since 2013 and was created
in compliance with API 6A, ATEX and NACE
standards. In response to the products
success and customer feedback, AnTech
has launched two further outlets, namely:
Types CB and CC. Each adaptation has been
carefully designed to suit various working
environments including pressure, ranging
from 10,000 - 15,000psi, temperatures from
-60C to +160C, whilst meeting evertightening budget constraints.
The Type CB and CC Wellhead Outlets
provide solutions to the demands of high
technical specications and the rippling

Teledyne ICM to
join forces with
Teledyne DALSA
Since its acquisition by Teledyne
Technology, American technology giant,
in June of last year, ICM X-RAY (now
Teledyne ICM) has seen tremendous
opportunities to push its craft to the
maximum, tackling the new trends and
needs currently developing within the
quality inspection world.
Like the visible light and infrared camera
before it, the x-ray world is, without a
doubt, entering a shifting phase. Inspectors
across the board are, now more than ever
before, looking for lightest, quickest, and
highest resolution x-ray solutions.
In an ever increasing effort to listen to

48

Pipeline Magazine

effect of the low oil price. Both options

meet API 6A and NACE certication and
have been designed for applications in North
America, Africa and Europe.
With the increasing demands for more
data and distributed measurements, there
has been a growth in the use of bre optic
cables for permanent monitoring. These
solutions are only as good as the connections
at surface and AnTechs Type FC outlet has
been designed specically to meet this
demand whilst maintaining the highest safety
standards at a cost effective price.
In order to meet a lower price point,
AnTech has reviewed its current material
costs and utilised new manufacturing
processes including 3D printing. As a
result, the new Type FC outlet incorporates
a 3D printed smart system for handling
and storing up to four bres. The unit
is suitable for operating in some of
the worlds most stringent wellsite
environments, as it is certied to both
API 6A and NACE, additionally it can hold
pressures of up to 10,000 psi.
AnTech managing director, Toni
Miszewski said: After considerable
research and development, we are pleased
to announce three new lower cost options,
which result in a wider choice within our
product lines. This will help our customers
to provide safe solutions to their clients
without breaking the bank.

the technicians inspecting in the eld,

Teledyne ICM has reached out to its newly
acquainted company, Teledyne DALSA, to
tailor products developed for and by the
people using it every day.
Compactness, reliability, toughness,
quickness, power, and image quality are all
paramount features that formed the blue
print of this joint venture undertaken by the
two Teledyne companies.
What would be the best place to unveil
this new state-of-the-art complete portable
digital radiography solution than the
upcoming WCNDT (World Conference for
Non-Destructive Testing) that will be held in
Munch, Germany, in June of this year?
To discover this revolutionary solution
and nd out what Teledyne ICM and
Teledyne DALSA has in stock, the newly
formed alliance will be at the show at their
joined booth in hall B0, booth #B97.

www.pipelineme.com

TOOLS IN BRIEF
CGG GeoSoftware
releases PowerLog 9.5
CGG GeoSoftware has launched
PowerLog 9.5, the new version of
its agship well log petrophysical
analysis software.
PowerLog is designed for efcient multiuser environments and drives collaboration
among petrophysicists, geophysicists,
geologists and reservoir engineers for
better reservoir understanding. The latest
version of PowerLog includes new
features for better data management,
improved asset team collaboration and
streamlined workows. A new sandbox
implementation increases interpretation
speed and helps guarantee the integrity
of a companys log database by
allowing individual users to transfer
wells to local projects, interpret the
wells, and then transfer results back to
the central database. In addition, new
shale volume determination methods
enable more robust clay determination,
which is particularly useful for
unconventional reservoirs.

Kuwait valve specialists

Q80 Valve Industries are specialised
valves manufacturers and they
currently offer gate, globe and check
valves in all material grades and
pressure class. They established a
manufacturing facility in Kuwait 6 years
ago. In Kuwait, pipe line valves have
been in huge demand due to several oil
and gas mega projects going on.
Vipul Parekh at Q80 Valve Industries
said: The Kuwaiti oil and gas sector has
always been very smart in the timings
of investments. When oil prices were at
their peak everything around was very
expensive Kuwait held back its projects.
Now the oil and gas market is trying to
restrain itself due to oil prices resources
being much cheaper and many projects
in the country are now under way. We
see the Kuwait economy as booming
for a few years to come now and as oil
prices recover Kuwait will reap the fruits
of its prudent investment.

Project Update
Penspen awarded design
contract for ADNOC Distribution

The UKs Penspen has been awarded a

design consultancy services contract by
ADNOC Distribution for the modication
and upgrade of various terminals and
depot facilities in the UAE.
The terminals and depots include Al Ain
Zakher Terminal, Mussafah Multi-Product
Depot, Madinat Zayed (Beda Zayed) Depot,
Dhow Harbor Depot and Saneyah Plot in AI
Ain. They are part of ADNOC Distributions
main downstream facilities which store
key fuel products (petroleum products and
liquied petroleum gas).

ADNOC Distribution
intends to upgrade
and modify its existing
terminals and depots
to meet the increasing
demand for fuel products
within the UAE.
Penspens executive
vice president Middle
East Michael Simm, said:
Penspen has enjoyed
working with ADNOC
Distribution for many
years now and we are
proud to be given this
opportunity to continue to support them.
We are delighted to be involved in this latest
project, which will ultimately lead to a safer
and more reliable delivery of fuel products for
the UAE.
Penspens services will cover design
and detailed engineering and it will work
together with other contractors to complete
the entire project scope. This includes taking
an active role in studies, reports, analysis,
engineering, detailed design, system
integration, documentation, calculations and
engineering support.

$140 million oil

contracts in Iraq
Wood Group has won two technical
service contracts in Iraq, valued at over
US$140 million, according to a company
statement.
Wood Group PSN (WGPSN) will provide
browneld front end engineering design,
detailed engineering, project management,
procurement services, system completion
and commissioning support for operations
and start-up on a signicant onshore asset in
southern Iraq, under the two contracts.
Effective immediately and creating more
than 100 new jobs, the contracts will be
delivered from southern Iraq and Dubai,
where WGPSN established an ofce in 2015.
David Buchan, WGPSNs eastern region
managing director, said: These two

signicant contract wins demonstrate

Wood Groups commitment to working
closely with key clients to extend our
operations in Iraq, where we see a
growth market that complements our
broad service capabilities, international
knowledge and strong expertise.
Establishing an ofce in Dubai and a
base in Iraq reects our intention to build
lasting customer relationships and focus on
the development of our Iraqi workforce and
supply chain partnerships.

www.pipelineme.com

PROJECTS IN BRIEF
Technip wins Woodside
Woodsid
oodsidee
contract
ct
Frances Technip has been awarded
a multi-disciplinary engineering
services contract by Australias
Woodside Petroleum to provide multidisciplinary services covering onshore,
offshore and subsea producing assets.
Under the agreement, Technip
will provide Woodside with a
comprehensive suite of engineering
services including the use of Genesis
specialist technical services.
Arnaud Pieton, president of Technip
in Asia Pacic, commented: We are
delighted to continue our relationship
with Woodside in the pursuit of
innovative engineering solutions for their
existing and extensive onshore LNG
facilities, offshore oil and gas assets and
subsea infrastructures.
This deal is part of Technips strategy
to be even closer to its clients and build
long-lasting relationships.

Atlas Copco wins majo

major
ajorr
Saudi contra
contract
act
Atlas Copco Bolt Tightening
Solutions has been awarded a
major contract with SABIC in Saudi
Arabia, The call-out contract
covers all SABICs requirements for
bolt tightening, either as part of
routine maintenance or a scheduled
shutdown, was won through local
Agent Sendan International Co. Ltd
Won against major competition, this
is an extremely prestigious contract
for the newly established team in
Saudi Arabia. The team in the Middle
East is headed by PCA Mohan, who
is responsible for a dedicated team
of Business Managers and engineers
within the region to ensure global
standards of implementation with
localised delivery. Commenting on the
contract win Mohan said:
We have specically set up business
processes that enable us to react quickly,
when necessary and we can call on large
numbers of engineers & equipment
resources to manage all sizes of projects.

Pipeline Magazine

51

PEOPLE: NEW APPOINTMENTS

Amec Foster Wheeler

unveils new CEO
Amec Foster Wheeler has announced the
appointment of Dr Jonathan Lewis, as
chief executive officer, with effect from 1
June 2016. On the same day Ian McHoul
will cease to be interim CEO, and will
remain as CFO.
Lewis has been employed in a number of
senior roles at Halliburton Company Inc since
1996. He is currently based in Houston,
Texas where he is a Senior Vice President
and member of the Halliburton Executive
Committee, with responsibility, since 2014
for leading its largest division, Completion &
Production. Prior roles included leadership of
the Europe/Sub-Saharan Africa Region (the
largest operating region outside North America)
and the Drilling and Evaluation Division.
He joined Halliburton following nine years
in academia, where he was NERC research
fellow at the Royal School of Mines at
Imperial College in London and Conoco
Lecturer in Petroleum Geology at Heriot Watt
University, Edinburgh. Lewis received his
PhD in reservoir characterisation from the
University of Reading in 1987.
Lewis is 54 years old, has dual UK/US
citizenship and will be based in London.
John Connolly, Chairman, Amec Foster
Wheeler, said: I am delighted that Lewis
will soon be joining us as our new CEO. He
brings with him thirty years of experience in
the oil and gas industry across many parts
of the world, including twenty years as a
senior executive at Halliburton where he built
a reputation for safe and ethical operations,
strategic market insight, strong leadership,
commercial discipline and consistently
delivered against commitments.

ADNOC make changes

to leadership team
Abu Dhabi National Oil Companys
(ADNOC) chairman, Sultan Al Jaber,
has made a number of appointments to
ADNOCs senior management team.
Omar Suwaina Al Suwaidi has been
promoted to head up ADNOCs gas
division, as the company looks to focus its
attention on its Bab and Shah gas projects.
Abdulaziz Alhajri has been named as
director for ADNOCs refining and
petrochemical segment. Alhajri was
formerly chief executive of ADNOCs
petrochemical joint venture, Borouge.

52

Pipeline Magazine

June 2016

Yasser Saeed Al Mazrouei has been

confirmed as the new chief of ADMAOPCO, the segment which is responsible
for the UAEs offshore oil production.
Al-Mazrouei will be responsible for helping
ADMA OPCO to increase its output from
1.4 million bpd to 1.7 million bpd.
ADNOC has appointed a total of six new
senior officials.
These new appointments will help
enhance our focus on the key pillars of
performance, profitability, efficiency and
people, Dr Al Jaber told journalists from
The National.

O
Occidental
Petroleum
names new Chief
Executive Officer
Occidental Petroleum Corporation has
named Vicki A. Hollub the companys
President and Chief Executive Officer,
completing the previously disclosed
succession plan. Hollub succeeds
Stephen I. Chazen, who stepped down
as CEO following the companys annual
shareholder meeting. Ms. Hollub was
elected to the Board of Directors in
December 2015.
Vicki is a proven and respected leader
with extensive knowledge and command
of Occidentals business, and she has the
strategic vision necessary to make Occidental
the top performing and safest company in our
industry. The Board looks forward to working
with Vicki in her new role to enhance value for
our shareholders, said Eugene L. Batchelder,
Chairman of the Board.
We are also grateful for the leadership and
vision Steve Chazen has provided Occidental
as CEO and a member of the senior
management team for the past two decades,
and are pleased that he will remain on the
Board. Steve has led the transformation of
Occidental into a more focused company with
a strong balance sheet, making it a formidable
industry competitor, Batchelder said.
Hollub has been an employee of Occidental
since 1982, and most recently served as
President and Chief Operating Officer. Prior
to that, Hollub was Senior Executive Vice
President of Occidental and President Oxy
Oil and Gas, Executive Vice President and
President Oxy Oil and Gas, Americas, and
Vice President of Occidental and Executive
Vice President, U.S. Operations, Oxy Oil and
Gas. She previously served as Executive

www.pipelineme.com

Vice President, California Operations; and

President and General Manager, Permian Basin
operations. Hollub began her career in 1981
with Cities Services, which was acquired a year
later by Occidental.

Mott MacDonald
appoints regional
a
development
d
director
d
Mott MacDonald has appointed
Christopher Seymour as development
director for the Middle East and South
East Asia. Seymour will be responsible
for coordinating business planning and
development activities across the regions.
He succeeds Tim Evans who has retired
after 20 years with the consultancy.
Seymour has over 25 years experience
in project and programme management,
public private partnership (PPP) technical
advice, project finance, procurement
and risk management. He has worked
across a broad range of sectors including
infrastructure, oil and gas, water,
environment and property.
He joins Mott MacDonald from Arcadis
where he spent 10 years. Most recently, as
regional head of markets and development
in the Middle East, Seymour performed a
strategic role on major programmes and
projects and was the main client interface
with responsibility for client account
management. He also advised companies
on their investment in property and
infrastructure, as well as life cycle costing.
Seymours project experience includes the
delivery of many major developments in the
commercial and hospitality, infrastructure
and defence sectors. He also has
extensive experience in the procurement
of construction and professional services
contracts, as well as PPP projects.
David Cox, Mott MacDonalds managing
director for Middle East and South East
Asia, said: Christopher has a strong
track record of delivering major projects
in the Middle East, working in just about
every major city in the region. His broad
experience and customer focused approach
will be a huge benefit to Mott MacDonald
and the many sectors we operate in.
Seymour is co-chairman of the Middle
East Council for Offices, a member of the
Royal Institution of Chartered Surveyors
Middle East, North Africa and Turkey
Market Advisory Panel.

CLASSIFIEDS

EVENTS 2016 / 2017

JUNE

Oil Sands Trade Show

and Conference

23rd International Caspian

Oil and Gas Exhibition
June 1 - 4, 2016
Baku, Azerbaijan
www.oilgas-events.com/caspian
-OG-exhibition

International Refining and

Petrochemical Conference
(IRPC 2016)

September 13 - 14, 2016

Alberta, Canada
www.oilsandstradeshow.com

OCTOBER
CanWeld Expo 2016

June 7 - 8, 2016
Milan, Italy
www.cvent.com

October 4 - 5, 2016
Edmonton, Alberta
www.canweldexpo.com

Global Petroleum Show

Gas Asia Summit & Exhibition (GAS)

June 7 - 9, 2016
Calgary, Alberta, Canada
www.globalpetroleumshow.com

October 26 - 28, 2016

Marina Bay Sands, Singapore
www.gasasiasummit.com

Pacific LNG

NOVEMBER

June 15 - 16, 2016

Tokyo, Japan
www.pacificlngsummit.com

ADIPEC 2016

Bolt Tightening Solutions

Products - Rentals - Services
Our experience and
competencies includes:


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Bolt Tensioning

November 7 - 10, 2016

Abu Dhabi, UAE
www.adipec.com

Atlantic Canada
Petroleum Show

t

Controlled Hydraulic and Manual

Bolt Torquing


t

Nut Splitting and Flange
Spreading

EAGC
June 22 - 23, 2016
St. Johns, Newfoundland &
Labrador, Canada
www.atlanticcanadapetroleumshow.com

November 14 - 16, 2016

World Forum, The Hague, Netherlands
www.theeagc.com

SEPTEMBER

2017

The Global African

Investment Summit Kigali

FEBRUARY

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In-Situ Pipe Cutting and Flange

Facing


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The 2017 Egypt Petroleum Show

EURO MECHANICAL & ELECTRICAL

CONTRACTING COMPANY LLC
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September 5 - 6, 2016
Kigali, Rwanda
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www.egyptpetroleumshow.com

middleeast@tentec.net
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Pipeline Magazine 53

SUPPLIER FOCUS: CLEARPEAKS

June 2016

INTELLIGENT
BUSINESS SOLUTIONS
ClearPeaks is a provider of Business Intelligence solutions and services, with significant experience in
the EMEA region. We hear from Gianluca Nacci, Partner and General Manager (MEA), about the firms
activities in the Middle East

How long has your business provided

services for the oil & gas sector?
As a consulting rm providing Business
Intelligence services to customers in
15 vertical industries and across several
countries in Europe and Middle East,
ClearPeaks has been providing awardwinning services for the oil and gas sector
for the past six years.

Where are you located within

the Middle East / GCC region
How important is this part of the
world to your overall business?

We have been active in the region from

2008 and with ofce presence since 2011.
We have recently expanded our Dubai ofce
and have opened a new ofce located in
Abu Dhabi in order to provide the level of
presence needed to support the growing
demand in the region. This ensures we are
fully enabled in the Middle East to provide
top quality services and solutions to our
customers. Despite having our base in
Europe and many active customers there,
the Middle East is of strategic importance
for us, as data insight is now a must for all
companies given the changing economic
landscape in the region and the shift away
from an oil and gas only economy. And
we are perfectly positioned to support our
customers in this journey.

What is the competitive

advantage your business has
over others providing similar
services to the oil & gas industry?
Without doubt, our outstanding customer
references in the sector.
Our commitment to BI innovation,
delivering leading edge solutions. Our
most recent project has been awarded
the Finalist Award at Oracle OpenWorld
2016 in the Big Data and Analytics
category and the Energy
Development of the Year at the
ICT Innovation Awards 2016.
Our functional knowledge,
from Gas Production to
Shipping and the other relevant

business processes. We speak business

to the business users and technical to the
IT staff, bringing with us the oil and gas BI
best practices as added value.

Have you got any major launches

coming up in the next year?
From an offering perspective, we are very
excited to announce our latest service line,
Mobile BI Services, offering our customers
both Native and Hybrid customised
BI applications, specically focused at
Executive Management users. When it
comes to Mobile BI applications, simplicity
and small details go a long way in ensuring
absolute management satisfaction.
With our new Mobile BI Services, we are
addressing the increasing demand in the
market to have access to real-time Business
Intelligence data on mobile devices in order
for top management to make business
critical decisions anytime and anywhere,
a key factor to success in any Business
Intelligence Strategy.
From a project perspective, we will
deliver two major Enterprise Business
Analytics platforms in the UAE within
the next six months, both for semigovernmental entities, and we expect
more for next year.

What are you most excited

about for the coming year, in
terms of your business outlook?
Besides expanding our business in the
Middle East region, we always like to go
beyond established consultancy practice
standards and guide our existing and new
customers all the way through exciting
innovation projects with the focus on Mobile
BI, Predictive Analytics and Big Data.

54

Pipeline Magazine

www.pipelineme.com