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OIL & GAS LEADERS

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Sustainability
Through
Innovation
in UAEs Oil
and Gas Industry
His Excellency
Saif Humaid Al Falasi
Group CEO, ENOC

Special Features: Catch Up On The Latest News:


Hilti: Moving Away From ExxonMobil and Synthetic Genomics
A Price-Driven Battle Report Breakthrough in Algae Biofuel
How McDermotts Head of Research
Engineering Inspires Young Female India Asks Qatar To Invest in Power
Engineers To Lead and Succeed Plants as Condition For LNG Deals
Qatar Petroleum Announces New
Fuel-Oil Bunkering Solutions in Qatar
JULY 2017
ISSUE NO. 004
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Behind every powerful industry are people who make the most
incredible things happen. In the oil and gas sector, different
companies with different sets of leaders, researchers, staff and
engineers are finding the best possible way to progress with
sustainability in mind.

In this months cover story, learn more about how the Emirates
National Oil Company (ENOC) became one of the largest oil and
gas players in the UAE. With a vision to be an innovative energy
partner with a foundation on sustainability, ENOC succeeded in
its ambitious plan to start dominating in the market. Now, in this
exclusive interview with ENOC Groups CEO, His Excellency
Saif Humaid Al Falasi, learn more about the companys history,
ambitions and its current performance as he shares the
companys operations in the Middle East, its recent product
innovations, engineering and technology to meet the demands
in line with projections for EXPO 2020.

EDITORS
We are also featuring a special interview with Mamina Radu-
Bogdan, Head of Energy and Industry META at Hilti Middle
East. He discusses the importance of Energy and Industry (E&I),

NOTE
the departments strategic positioning with the integration of
Champion 2020 as well as their improved business strategy and
changes within the industry based on new market trends.

Lastly, read our exclusive story on how McDermotts Head


of Engineering inspires young female engineers to lead and
succeed in a male-dominated industry. Being the first female
production engineer when she entered McDermott, Elviana
Sari (Vivi) did not only encounter challenges at work as an
engineer, she also had to deal with how being a woman affects
her relationship with her co-workers. Learn more about Vivis
humble beginnings as a student who aspired to be an engineer
and find out how being a female engineer didnt stop her from
climbing up the career ladder despite the several pressures and
problems she encountered along the way. She also shares the
common misconceptions she had to deal with at work and her
advice to female engineering students who want to pursue a
career in the industry.

So, get excited for this months amazing news and stories in the
oil and gas industry! Sit back and learn something new today.
Keep up with the latest trends on the Oil and Gas Industry with
GineersNow: Oil and Gas Leaders.

Engr. Alice Hernandez


Senior Editor-at-Large
Contents
Over 1,100 Kilometers of Power of Siberia
Gas Pipeline To Be Completed By Late 2017
9 Sustainability Through Innovation - How
ENOC Became One of the Largest Oil and
26

Gas Players in the UAE


Japanese Dryland Researchers 10
Visit Saudi Aramco Hedge Funds Hold Near-Record Short 32
Positions in Petroleum
Iran Still Worlds Largest Natural Gas Player 12
Qatar Petroleum Announces New Fuel-Oil 34
ExxonMobil and Synthetic Genomics Report 14 Bunkering Solutions in Qatar
Breakthrough in Algae Biofuel Research
Chinas 2017 Crude Oil Quotas Exceed Last 35
Rosneft Discovers Hydrocarbon Deposits 16 Years, Teapots Take A Cut
on Eastern Arctic Shelf
India Asks Qatar to Invest in Power Plants 37
Saudi Aramco and Jacobs Create Joint 17 as Condition for LNG Deals
Venture for Social Infrastructure Program
Management Throughout Saudi Arabia and Plant 4.0 Start-Up Incubator: a 2nd 38
Across Region Edition on IoT With Five New Partners

Moving Away From A Price Driven Battle. 18 NIOC Includes 4 More Russian Oil 40
Companies, Azeri Socar Prequalified
ADNOC Opens North Depot Fuelling Facility 22 for Iran Projects
at Abu Dhabi International Airport
UAEs ENOC Group and USs Chevron 42
Qatars Emir Meets Exxon Mobil Corp CEO 25 Explore Long-Term Strategic
Collaboration in Oil & Gas
KBR Awarded FEED For Oman LNG 25
How McDermotts Head of Engineering 44
Inspires Young Female Engineers To Lead
and Succeed
Over 1,100 Kilometers of Power of Siberia
Gas Pipeline To Be Completed By Late 2017
The Gazprom in Eastern Russia, Entry into Asia- In accordance with the contract signed between
Pacific Markets Press Conference was held in Gazprom and CNPC, gas supplies to China via
Moscow in the lead-up to the annual General the eastern route will start in the period from
Shareholders Meeting. The Press Conference May 2019 through May 2021. In May 2017, the
featured Vitaly Markelov and Alexander parties began to negotiate the exact starting
Medvedev, Deputy Chairmen of the Management dates for the said gas deliveries.
Committee, Vyacheslav Mikhalenko and
Sergey Prozorov, Members of the Management Discussions continue over gas to be supplied to
Committee and Heads of Departments, Pavel China via the western route and from Russias
Oderov, Head of Department, Alexander Kalinkin Far East.
and Vasily Petlichenko, Deputy Heads of
Departments, and Elena Burmistrova, Director It was also noted that the Asia-Pacific region
General of Gazprom Export. was a traditional LNG market for Gazprom.
Between 2005 and 2016, over 75 per cent of the
It was noted that Gazprom continued its active Groups LNG was shipped to the region. In 2016,
efforts within the projects under the Eastern Gas the Company supplied 2.8 million tons of LNG to
Program. Asia-Pacific.

Particular attention at the Press Conference One of Gazproms top priorities is to ramp up
was paid to Russian gas supplies to China via gas sales in Asia-Pacific with the help of a third
the eastern route. The construction project for train of the LNG plant within the Sakhalin II
the Power of Siberia gas trunkline is ahead of project. It is planned to build a new production
schedule. By 2017, 445 kilometers of its linear train similar to the two existing trains, with an
part were built. As of early June 2017, some annual capacity of up to 5.4 million tons of LNG.
774 kilometers were ready. Before the end of Design documentation for the construction
the year, it is planned to complete over 1,100 project is being finalized as part of FEED.
kilometers of the pipeline, which translates into
about a half of Power of Siberias priority section The Press Conference also touched upon other
stretching from the Chayandinskoye field in issues related to Gazproms eastern projects.
Yakutia to the Russian-Chinese border.

Oil & Gas Leaders July 2017 9


Japanese Dryland Researchers
Visit Saudi Aramco
As part of Saudi Aramcos corporate social responsibility (CSR), Aramco Asia-
Japan (AAJ) has partnered with Japans Arid Land Research Center (ALRC), Tottori
University to support their dryland research efforts.

ALRC is the only institute in Japan specializing in dryland-related research, with


some of their works receiving recognition globally. Through AAJ, the center has
established contact with the Environment Protection Department (EPD) at Saudi
Aramco a unit that has a long and established track record in the areas of
effective management of sand and desert animals in the Kingdom.

Seeing is believing traditional wheat production. Tsujimoto Hisashi


of ALRC, a specialist in wheat production,
A three-day program to Saudi Arabia, had opportunities to interview local farmers
organized by EPD, began with the hosts and examined the local species. I had been
presenting their biodiversity protection and interested in how the Middle East origin
enhancement program while Yamanaka crops had propagated to East Africa. Our
Norikazu, head of ALRC, described his project visit this time to the traditional cereal culture
on afforestation along the roads in China, in Abha was out of the cultivation season,
a subject of much interest for EPD as the but I managed to find oats, bread wheat, and
Kingdom is facing similar challenges. macaroni wheat many of which the genetic
types seem indigenous, said Tsujimoto.
The EPD team headed by terrestrial ecologist
Chris Boland organized field trips for the I should be able to collect further information
visiting Japanese delegation with the first trip by revisiting the area during the high season.
to the recently inaugurated Shaybah Wildlife I hope to build more knowledge on the
Sanctuary. Three endangered species Kingdoms agricultural policy to search for
Arabian oryx, Arabian sand gazelles, and common ground that would lead us to some
ostriches have been reintroduced at the joint research in future.
sanctuary to help restore these animals
within the Kingdom. As an oil and gas For ALRC, in spite of numerous studies
company, Saudi Aramcos commitment to the overseas using their well-established network,
environment is truly impressive, Yamanaka Saudi Arabia was one place left unexplored
said. until now, making this visit extremely special.
Seeing the red sand dunes of Shaybah, the
EPD also took the Japanese visitors to vegetated valleys of the Asir Mountains, and
the mountainous area of Abha to observe the salty sabkhas was a dream come true

10 Oil & Gas Leaders July 2017


the plant species that exist in each location along roads, and that idea is to plant local
differed greatly. But there were also some plant species, which is the modern global trend
familiar plants that I had seen before in the in restoring the natural environment, said
deserts of Asia, so I felt the connection between Tsujimoto.
the Kingdom and East Asia through our deserts,
Yamanaka said. At ALRC, we have solid experience in data
collection using drones, monitoring the activities
Combatting desertification is one of the of large animals, and using plants to manage
greatest challenges facing people and moving desert sands. Some of these methods
companies in arid regions of the world. It is could be applied on a large-scale at particular
a global issue and requires a global effort to Saudi Aramco projects to assist monitoring and
address it, so it is very valuable to learn from management of the ecosystem, Yamanaka said
the experiences of the ALRC, which has been after his return to Japan.
studying desertification for decades across Asia
and Africa, said Chris Boland. I am delighted and thrilled to see this bond
between ALRC and AAJ, initiated in Japan,
Sharing knowledge for tomorrow is now taking some potential shape and
connecting its scope with the Kingdom. I am
Both ALRC and Saudi Aramco EPD hope to looking forward to seeing some form of a joint
maintain this newly fostered relationship.  research materialized in the future by those
professionals from both ends of Asia, said AAJ
I was pleased to hear that Saudi Aramco is representative director Anwar Hejazi.
thinking of critical issues such as greening
Iran Still Worlds
A new report shows Iran still has the worlds largest
reserves of natural gas and is closely followed by
market rivals Russia and then Qatar.

Largest Natural The global energy giant British Petroleum (BP) in its
annual report on world energy reserves put Irans

Gas Player natural gas reserves at 33.5 trillion cubic meters


(tcm).

The figure was obtained as a result of estimates


obtained at the end of 2016 and BP said in its report
named Statistical Review of World Energy 2017
that Irans reserves had remained unchanged from
last year.

BP further put the reserves of Russia Irans closest


rival in terms of gas reserves - at 32.3 tcm.

The worlds third largest reserves at 24.3 tcm belong


to Qatar with which Irans shares its huge South Pars
gas field.

Irans gas reserves account for 18 percent of worlds


total. The reserves of Russia and Qatar account
for 17.3 percent and 13 percent of the global total,
respectively.

In terms of production, the United States maintained


its market supremacy in 2016 by producing around
750 billion cubic meters (bcm) of gas.

Russia came next with about 580 bcm and was


followed by Iran at 202.4 bcm.
The next biggest producers were Qatar (181.2 bcm),
Canada (152 bcm), China (139 bcm), Norway (116
bcm) and Saudi Arabia (109 bcm).

According to the BP report, Iran also has the worlds


fourth largest reserves of crude oil at 158.4 billion
barrels (bbl).

At the top of the list stands Venezuela with 300 bbl


and is followed by Saudi Arabia (266.5 bbl) and
Canada (171.5 bbl).

Iran is followed by Iraq (153 bbl), Russia (109 bbl),


and Kuwait (101.5 bbl) in the league of countries
with triple digit oil reserves.

12 Oil & Gas Leaders July 2017


www.recapetroleum.com
ExxonMobil and Synthetic
Genomics Report Breakthrough
in Algae Biofuel Research
ExxonMobil and Synthetic Genomics Inc. today climate change.
announced a breakthrough in joint research into The major inputs for phototropic algae
advanced biofuels involving the modification of an production are sunlight and carbon dioxide, two
algae strain that more than doubled its oil content resources that are abundant, sustainable and
without significantly inhibiting the strains growth. free, said Oliver Fetzer, Ph.D., chief executive
officer at Synthetic Genomics. Discoveries
Using advanced cell engineering technologies at made through our partnership with ExxonMobil
Synthetic Genomics, the ExxonMobil-Synthetic demonstrate how advanced cell engineering
Genomics research team modified an algae capabilities at Synthetic Genomics can unlock
strain to enhance the algaes oil content from biology to optimize how we use these resources
20 percent to more than 40 percent. Results and create solutions for many of todays
of the research were published today in the sustainability challenges from renewable energy
peer-reviewed journal Nature Biotechnology by to nutrition and human health.
lead authors Imad Ajjawi and Eric Moellering of
Synthetic Genomics. Algae has been regarded as a potential
sustainable fuel option, but researchers have
Researchers at Synthetic Genomics laboratory been hindered for the past decade in developing
in La Jolla discovered a new process for a strain that is high in oil content and grows
increasing oil production by identifying a genetic quickly two critical characteristics for scalable
switch that could be fine-tuned to regulate the and cost-efficient oil production. Slower growth
conversion of carbon to oil in the algae species, has been an adverse effect of previous attempts
Nannochloropsis gaditana. The team established to increase algae oil production volume.
a proof-of-concept approach that resulted in the
algae doubling its lipid fraction of cellular carbon A key objective of the ExxonMobil-Synthetic
compared to the parent while sustaining growth. Genomics collaboration has been to increase the
lipid content of algae while decreasing the starch
This key milestone in our advanced biofuels and protein components without inhibiting the
program confirms our belief that algae can be algaes growth. Limiting availability of nutrients
incredibly productive as a renewable energy such as nitrogen is one way to increase oil
source with a corresponding positive contribution production in algae, but it can also dramatically
to our environment, said Vijay Swarup, vice inhibit or even stop photosynthesis, stunting
president for research and development at algae growth and ultimately the volume of oil
ExxonMobil Research and Engineering Company. produced.
Our work with Synthetic Genomics continues to
be an important part of our broader research into The ability to sustain growth while increasing oil
lower-emission technologies to reduce the risk of content is an important advance. Algae has other

14 Oil & Gas Leaders July 2017


advantages over traditional biofuels because market.
it can grow in salt water and thrive in harsh Advancements as potentially important as this
environmental conditions, therefore limiting stress require significant time and effort, as is the case
on food and fresh water supplies. with any research and development project,
Swarup said. Each phase of our algae research,
Oil from algae can also potentially be processed or any other similar project in the area of
in conventional refineries, producing fuels no advanced biofuels, requires testing and analysis
different from convenient, energy-dense diesel. to confirm that were proceeding down a path
Oil produced from algae also holds promise as a toward scale and commercial viability.
potential feedstock for chemical manufacturing.
ExxonMobil is engaged in a wide range of
The SGI-ExxonMobil science teams have made research on advanced biofuels, partnering with
significant advances over the last several years in universities, government laboratories, and other
efforts to optimize lipid production in algae. This companies. Global demand for transportation-
important publication today is evidence of this related energy is projected to increase by about
work, and we remain convinced that synthetic 25 percent through 2040, and accelerating the
biology holds crucial answers to unlocking the reduction in emissions from the transportation
potential of algae as a renewable energy source, sector will play a critical role in reducing global
said J. Craig Venter, Ph.D., Synthetic Genomics greenhouse gas emissions.
co-founder and chairman. We look forward
to continued work with ExxonMobil so that ExxonMobil is also actively researching other
eventually we will indeed have a viable alternative emission-reducing technologies, including carbon
energy source. capture and sequestration. In 2016, ExxonMobil
announced its partnership with Connecticut-
Since 2009, ExxonMobil and Synthetic Genomics based FuelCell Energy, Inc. to advance the use
have been partners in researching and developing of carbonate fuel cells to economically capture
oil from algae to be used as a renewable, lower- carbon emissions from power plants while
emission alternative to traditional transportation generating hydrogen and additional electricity.
fuels. Swarup said that while the breakthrough Since 2000, ExxonMobil has spent about $8
is an important step, the technology is still many billion to develop and deploy lower-emission
years from potentially reaching the commercial energy solutions across its operations.
Rosneft Discovers Hydrocarbon
Deposits on Eastern Arctic Shelf
Rosneft is performing the drilling of the Russian president Vladimir Putins command
northernmost exploratory well on the Eastern Rosneft embarked on drilling of the Tsentralno-
Arctic shelf following a comprehensive geological Olginskaya-1 well. The significance of Rosneft
study. During the drilling of the Tsentralno- project was emphasised by the Russian president
Olginskaya-1 well from the shore of the Khara- during a video conference on the drilling start.
Tumus Peninsula on the shelf of the Khatanga In fact, work on the whole petroleum province
Bay of the Laptev Sea, three core samples were has been started, which, even according to
taken from depths of 2305 to 2363 m, which preliminary data, contains millions of tons of
showed high oil saturation dominated with light oil equivalent. Horizontal drilling is a complex
oily fractions. On the basis of primary studies and high-tech operation. This is just the first
already, it can be concluded that a new oil field well. There is much more work ahead. I would
has been discovered, the volume of the resource like to wish you good luck and I hope for this
potential of which is increasing as the drilling undertakings success - the President of Russia
continues. Core sampling continues at the said.
moment.
In April Rosneft Head reported to Vladimir
Hydrocarbon saturation of the core samples Putin that the preparation for drilling had been
proves the geological model developed by completed in record-breaking time. With your
Rosneft experts. The obtained result of the drilling support, we gained the right to work on the
at the Khatanga licenced area allows Rosneft to Khatanga block just over a year ago.
be considered a pioneer of deposit discoveries on
the Eastern Arctic shelf.

The Company was awarded the licence for


Khatanga development in November 2015.
Gathering and set-up of drilling equipment were
carried out in the shortest time possible owing
to harsh weather conditions. On April 3, at the
Saudi Aramco and Jacobs Create Joint
Venture for Social Infrastructure Program
Management Throughout Saudi Arabia and
Across Region
Saudi Aramco entered into an agreement with Jacobs Chairman and CEO Steve Demetriou
Jacobs (NYSE:JEC) to form a Saudi Arabia- said, Our joint venture exemplifies the power
based joint venture company to provide of bringing together Saudi Aramco and Jacobs
professional program and construction as an effective economic catalyst to support
management (PMCM) services for social the Kingdoms Vision 2030. The new company
infrastructure projects throughout the Kingdom combines Jacobs industry-leading capabilities
and across the Middle East and North Africa. and our joint project delivery skills to help
Jacobs presence in Saudi Arabia spans more transform social infrastructure in this rapidly
than 40 years. changing region.

Our joint venture exemplifies the power of The new companys services will include a
bringing together Saudi Aramco and Jacobs full-spectrum of professional PMCM activities,
as an effective economic catalyst to support with expertise in supporting all phases of
the Kingdoms Vision 2030. The new company the project lifecycle for social infrastructure
combines Jacobs industry-leading capabilities projects. The company will advance training
and our joint project delivery skills to help and help create quality jobs for Saudi nationals
transform social infrastructure in this rapidly through the development of a sustainable and
changing region. competitive program.
MOVING AWAY FROM A PRICE
DRIVEN BATTLE
Hilti is a global leader in providing cutting-edge and Hilti Middle East FZE have been operating
products, systems and services to professionals in in the UAE since 1991. Today, Hilti Emirates has
the construction and energy sectors. From design more than 200 employees, its own warehousing
to demolition, Hilti supports customers with expert facility and a state-of-the-art repair center.
technical advice, reliable products, prompt delivery Thomas Stumpp is Head of Market Region Middle
and outstanding service. The product range East Turkey & Africa; while Mutaz Almaani is Head
covers drilling and demolition, direct fastening, of Sub Region Gulf.
diamond and anchoring systems, firestop and
foam systems, installation, measuring and screw For more information, please call Hilti Emirates at
fastening systems, as well as cutting and sanding 800-Hilti (44584) or visit www.hilti.ae.
systems. As a result of this, Hiltis portfolio helps
construction professionals through every step of Hilti Middle Easts Energy and Industry
the construction journey. A direct-selling company, department shifts from project focused scope
Hilti generates over 200,000 customer interactions to becoming a relevant integrated business
per day, providing it with superior insight into partner.
company and market demands. Hilti Emirates LLC

18 Oil & Gas Leaders July 2017


and elevators based on 3 pillars: Segment
Management, Account Development and
Professional Project Management. This setup
allowed the department to understand, build
and communicate specific value propositions.
The Segment Managers are responsible for
strategic steering, product development to close
application gaps and building a strong value
proposition. META Business Developers in E&I
are representing the interface for global accounts
at local levels. They are liasing with accounts they
handle (through their needs, visions and strategy),
and cooperating with the local Hilti project support.

What does your business model focus on?

A professional approach to key stakeholders,


including owners and customers through a tailor-
made value proposition in perfect synergy and
approach towards headquarter offices and project
sites.

Few years ago, the E&I segment was strongly


dominated by mega projects with extensive
budgets; where the cost of building was less
important given the potential output of the facility
Mamina Radu-Bogdan
Head of Energy and Industry where each oil barrel was 100 US Dollars.
META at Hilti Middle East
When did you feel there was a need for change
in your strategy?
Mamina Radu-Bogdan, Head of Energy and
Industry META at Hilti Middle East; discusses Hiltis innovation was a great fit in this kind of
the importance of Energy and Industry (E&I), environment and Hilti X-BT Grating Fastening
the departments strategic positioning with the solution soon became a standard of building for
integration of Champion 2020 (aims to achieve many important players. While Hilti was widely
sustainable value creation through leadership recognized as the problem solver especially in
and differentiation. Market leadership through grating applications in offshore environment, we
added value for our customers offers products, understood that we were heavily depending on
services and software that provide superior our one trick pony show, thus being vulnerable.
productivity and safety to our customers and We needed to make the change towards a more
differentiate from the offering of our competitors), sustainable model.
as well as their improved business strategy
and changes within the industry based on new How did you adjust your approach to fit the
market trends. economical change that heavily affected the
E&I sector?
When was the META department established?
What was the departments focus? The 100 US Dollars price per oil barrel will not
come back again. Instead, adjusting ourselves to
The E&I META department was established fit these economical changes is critical - a modest
in January 2016 - an energy and industry approach is visible already today in the energy
regional structure with focus on power, oil sector amongst developers and investors. We
and gas, decommissioning, industry, facade,
should engage stronger with key players and It is our duty to learn from what the market is
increase our relevance. We have to move away telling us and adapt our model to win. We need
from a price-driven battle and instead leverage to see the change, move with it and finish the
a service driven value proposition built around learning curve, even if that means reinventing
engineering. ourselves against what made us successful till
now.
With inevitable competition, how does E&I
standout?

In order to outplay competition, E&I thought


of ISB (Integrated System Business) - build a
customized value proposition on engineering,
logistic services, special product solutions, site
support and price agreements to go hand in hand
with the customers specific requirements. Part of
the execution is also the Total Solution Warehouse
where the E&I META team is able to provide
logistic related services such as cut to length,
kitting, packing, shipping and full size mock ups for
required approvals.

Today, ISB (Integrated System Business) is a


unique step change. A great advantage in the way
Hilti does business globally and provides access to
all levels of stakeholders in owners structures and
high level decision makers in our focus accounts.

How do would you react to change in


developing the companys value proposition?

20 Oil & Gas Leaders July 2017


ADNOC Opens North Depot Fuelling
Facility at Abu Dhabi International Airport
Abu Dhabi National Oil Company (ADNOC), with Airports new Midfield Terminal represents the
its subsidiary company ADNOC Distribution, latest stage in our growth and expansion strategy
hosted an official opening ceremony for its new to meet the needs of aviation customers. Through
state of the art North Depot aviation fuel facility ADNOC Group, we now refuel as many as 34
at Abu Dhabi International Airport. aircraft per hour at 26 fuel depots across the UAE.
More than 200 customers in the civil and military
The ceremony was overseen by Abdulla Salem Al sectors rely on our high standard products and
Dhaheri, Director of Marketing, Sales and Trading services, distributed through state-of-the-art
for ADNOC, and Saeed Mubarak Al Rashdi, Acting fuelling facilities, and with health, safety, and the
Chief Executive Officer of ADNOC Distribution. environment (HSE) at the core of all operations.
It was attended by senior ADNOC and ADNOC
Distribution executives and key stakeholders, Some Dh750 million (over $200 million USD) was
including Abdul Majeed Al Khoori, Acting Chief invested in the fuel depot at the new Midfield
Executive Officer of Abu Dhabi Airport. terminal to meet an anticipated significant
increase in demand for aviation fuel from Etihad
Abdulla Salem Al Dhaheri, Director of Marketing, Airways and its associated airlines. With a fuel
Sales and Trading for ADNOC, said: The opening storage capacity of 96 million litres - comparable
of the North Depot at Abu Dhabi International to the amount of water needed to fill 38 Olympic

22 Oil & Gas Leaders July 2017


size swimming pools - the North Depot will its vision of being the worlds leading airports
be the airports exclusive provider of Jet A1, a group.
fuel manufactured to meet the most stringent
standards and specifications as recognised by The North Depot will provide up to 6.5 million
its international validation. litres of fuel per hour through a battery of 24
pumps controlled by a Basic Process Control
ADNOCs sophisticated systems and System with sophisticated gauging mechanisms
operational processes are internationally to monitor the level of fuel in the depots tanks:
recognised as delivering increased reliability, the facility will be capable of fuelling more
elimination of delays, lower rates of accidents than 100 aircraft simultaneously as a result. To
and incidents, and reduced overall costs. Our ensure the highest safety levels, the depot is
equipment and facilities compete with the very equipped with advanced fire detection and fire
best available among the worlds aviation fuel suppression/firefighting systems. Continuity of
providers, added Al Dhaheri. service is ensured by a full generator backup
facility to power the depot and its pumps in the
Abdul Majeed Al Khoori, Abu Dhabi Airports event of a cut in electric power from the public
Acting Chief Executive Officer, commented grid.
We are delighted that ADNOC has opened this
new facility, which is another milestone towards A key element in the realisation of Abu Dhabi
the completion of the iconic Midfield Terminal Vision 2030, Abu Dhabi International Airports
Complex. Working in close cooperation with key new Midfield Terminal, which will be served by
stakeholders, such as ADNOC, will enable us the North Depot, has the capacity to handle
to deliver one of the best airport terminals ever more than 30 million passengers annually after it
seen, moving Abu Dhabi Airports closer towards becomes fully operational.

Oil & Gas Leaders July 2017 23


Qatars Emir Meets Exxon Mobil Corp CEO
The emir of Qatar met with Exxon Mobil Corp chairman
and CEO Darren Woods in Doha on Saturday for talks
on cooperation, state news agency QNA reported,
following a rift between four Gulf states and Qatar that
has raised worries about energy supplies.

Saudi Arabia, the United Arab Emirates, Bahrain and


Egypt on Monday cut ties with Qatar, accusing the
country of supporting extremism. Qatar denies the
allegations.

QNA said the Emir, Sheikh Tamim bin Hamad al-


Thani, met with Woods and ExxonMobil Qatar General
Manager Alistair Routledge at the Al-Bahar Palace.

During the meeting, they discussed bilateral cooperation relations and means to develop them in
addition to the latest developments in the energy sector, the agency said.
Qatar and Exxon have had development agreements for more than a decade, with Exxon helping
Qatar to become the worlds largest LNG exporter. Exxon, working with government-controlled
energy company Qatar Petroleum , has invested in LNG-processing plants, transport ships and
related infrastructure.

Exxon said earlier this month that production and exports of liquefied natural gas from Qatar have
not been affected by the row.

The growing diplomatic dispute has raised concerns about global access to Qatars LNG,
especially after some regional ports in the Gulf said they would not accept Qatari-flagged vessels.

KBR Awarded FEED For Oman LNG


KBR, Inc. (NYSE: KBR) announced that it has as one of the worlds preeminent leaders in
been awarded a Front-End Engineering Design LNG facilities and demonstrates the trust that
(FEED) and project management services contract Oman LNG has placed in KBR following the
for Oman Liquefied Natural Gas LLC (Oman LNG) successful development of the original Front-End
in Qalhat, Oman. Oman LNG operates three Engineering Design (FEED) of this world-class
liquefaction trains with a total nameplate capacity LNG facility, said Jay Ibrahim, KBR President:
of 10.4 million tonnes per annum (mtpa). Europe, Middle East & Africa. We are committed
to expanding our footprint in the Middle East and
KBR is a recognized leader in LNG with over are delighted at this opportunity to reestablish
40 years of continuous experience and depth KBR in Oman and contribute to Omans In-
of capability, know-how and engineering talent Country Value (ICV) initiatives.
that is unmatched in the industry. This project
represents KBRs reentry into the Oman market Revenue associated with this contract was
and supports our strategic focus on gas undisclosed and will be booked into backlog
monetization in the Middle East region. of unfilled orders for KBRs Engineering &
Construction business segment in the second
This contract confirms KBRs strong reputation quarter of 2017.

Oil & Gas Leaders July 2017 25


Sustainability Through Innovation:
How ENOC Became One
of the Largest Oil and Gas
Players in the UAE
With a vision to be an innovative energy
partner with a foundation on sustainability, Servicing thousands of customers in over
the Emirates National Oil Company (ENOC 60 markets, the Group employs a workforce
Group) succeeded in its ambitious plan to of over 9,000 employees and is deploying
start dominating in the oil and gas industry its world-class customer service, latest
and play an integral role in empowering the innovations and technologies and best
UAEs social and economic development. practices to empower the UAEs social and
Now, ENOC is working on achieving economic development.
its aggressive growth plan to meet the
demands in line with projections for Broadly speaking however, ENOC operates
EXPO 2020 and become the leader in the across two major business streams: Energy
domestic market. business and General business

In this exclusive interview with ENOC Energy Business:


Groups CEO, His Excellency Saif
Humaid Al Falasi, learn more about Supply, Trading and Processing - ENOC
the companys history, ambitions and owns, operates and manages a
its current performance as he shares refinery, an MTBE Plant and also trades in
ENOCs operations in the Middle East, its a diversified portfolio of products
recent product innovations, engineering, including petroleum, as well as soft
technology or standards and the future commodities. STP operates in the UAE,
goals of the company. Singapore and London.

Describe ENOCs operations in the Terminals - ENOC manages and


Middle East. operates Horizon Terminals - 11 terminals
in Morocco, Djibouti, Saudi Arabia, the
ENOC is a leading integrated international United Arab Emirates, South Korea and
oil and gas player operating across the Singapore
energy value chain, with operations ranging
from upstream to downstream. As a wholly- Exploration and Production this arm
owned entity of the Government of Dubai, of ENOC mainly has Dragon Oil which has
and integral to the Emirates success, exploration assets in Turkmenistan, Iraq,
ENOC owns and operates assets in the Algeria, Tunisia, Afghanistan and Egypt.
fields of exploration & production, supply
& operations, terminals, fuel retail, aviation Fuel retail - ENOC manages and
fuel and petroleum products for commercial operates 116 service stations in United
& industrial use. Arab Emirates and six in Saudi Arabia

Oil & Gas Leaders July 2017 27


Products ENOC trades in several
petroleum products such as lubricants, and
products for the automotive industry,
aviation sector, marine industry and
industrial products

General Business:

Automotive services - ENOC owns,


operates and manages several vehicle
related services such as Autopro for vehicle
maintenance and Tasjeel for
vehicle testing and registration.

Non-Fuel retail such as ZOOM,


Paavos Pizza

A Fabrication subsidiary Cylingas which


provides design, engineering, project
management and construction services
for process plants, oil & storage terminals at
airports and power plants.

What recent product innovations,


engineering, technology or standards
have you introduced lately?

Innovation is a key component that drives the


growth of our operations, particularly in fuel
retail.

ENOC has introduced a number of innovative


technologies to facilitate payments and
enhance customer experiences at our service
station network:

Known as ViP (Vehicle Identification Pass),


it is a completely automated and
paperless system without the need for
cash, fuel cards or receipts. All vehicle
owners have to do is drive into the service
station, refuel with the help of an attendant
and drive off.

Vehicle Identification Pass (ViP) for both
commercial and individual use to speed
up the refuelling process. The automated
and paperless system eliminates the need
for cash, fuel cards or credit/debit cards.
The ViP system uses an innovative
technology which consists of a securely
His Excellency encoded electronic security tag mounted
Saif Humaid Al Falasi near the fuel tanks. This allows the
Group CEO, ENOC nozzle to automatically recognize the
fueling preferences individuals have set
for their car, calculate the amount of fuel
filled from the dispenser and deducts the
money automatically from the individuals
VIP account. This speeds up the refueling
process and enables customers to better
manage their accounts and set budgets
for each fueling transaction.

We have recently signed a partnership


agreement with Network International and
introduced PIN-less and paperless debit
and credit card transactions in the
forecourts of its service station network.
The new initiative enables customers to
make purchases at convenience stores,
and pay for fuel without entering their PIN
numbers. This reduces waiting times
at ENOC service stations. The initiative
also fulfills customer demands to stay
in the car during card payments and retain
confidentiality of their PIN numbers.

Other recent innovations include the launch of


the UAEs first solar-powered service station.
The station, which is located at the Dubai
Internet City entrance, uses PhotoVoltaic (PV)
solar panels on the roof of the canopy that can
produce a peak capacity of 120kWh (Kilowatt
per hour) energy on an ideal day, generating
approximately 30 percent more than the
average energy required to run the station. The
excess power generated is transmitted back to
DEWAs main grid through a DEWA solar metre
that tracks the power injected to the power
grid.

The DIC service station will reduce the


networks carbon footprint by 195 equivalent
tons of carbon dioxide (CO2) per year.

Discuss the companys history,


current performance, vision and
ambitions.

Emirates National Oil Company (ENOC Group)


is a leading integrated global oil & gas player
operating across the energy sector value chain.
A wholly-owned company of the Government
of Dubai, ENOC was initially established in
1993. Since our formation, we have made
significant contributions to Dubais continued
drive towards economic diversification and
sustainable development.
At ENOC, our vision is to be an innovative positioning ourselves and our portfolio, and
energy partner, delivering sustainable by attracting and retaining the right talent.
value and industry-leading performance.
To accomplish this, weve built ENOCs Describe the companys past
foundation on sustainability, which achievements.
distinguishes and guides us in all our
operations.
Being a group with such a diversified portfolio,
our achievements are many. However, one of
Earlier this year, we announced a record
our biggest achievements for the first half of
volume of sales of petroleum products of
this year was the Dubai Internet City service
245 million barrels, reflecting a 5-year rolling
station, as mentioned earlier.
average growth of 9 percent, despite the
challenging macroeconomic situation. As part
Last year, we launched the Vehicle
of the five-year strategy, ENOC will focus its
Identification Pass (ViP), a cashless and
efforts and investments on fulfilling Dubais
cardless system of payment, for our retail
energy needs through the expansion of its
customers across our service station network.
refinery and service station network, building
For two years prior to that, we had huge
terminals storage capacity, and increasing its
success with ViP for our corporate customers.
market share in the marketing of diesel, jet
fuel and Liquefied Petroleum Gas (LPG).
We also embarked on the expansion of the
ENOC Processing Company Limiteds (EPCL)
For 2017 and beyond, we intend to build upon
refinery in Jebel Ali, a project that is valued at
our successes by expanding our regional and
over US$1billion. When complete in 2019, the
international footprint. The focus will be to
refinerys capacity will increase by 50 percent.
continue diversifying our revenue streams by
investing in operations that are well positioned
Last year, we also commissioned Black
to generate profitable sustainable growth.
Pearl, a project that involved the expansion
We intend to achieve this by strategically
of Vopak Horizon Fujairah Limited, which

30 Oil & Gas Leaders July 2017


added 478,000 cubic meters (cbm) of crude oil meet the energy needs of the UAE, expand
storage capacity to increase the facilitys total its operations and invest in the infrastructure
capacity to 2.6 million cbm. required to facilitate Dubais growth.

What projects are you currently What are the future goals of the
working on? company?

We have an aggressive growth plan to expand At ENOC, we aim to be a leader in the domestic
the network in Dubai to reduce congestion and market and gradually expand our operations
meet the demands in line with projections for internationally. We have a clear strategy and
EXPO 2020 and beyond. We have plans to grow roadmap for the next five years which we
our service station network by 40 percent until continuously monitor and adjust in line with a
2020. These plans include the construction of changing business environment. Our current
54 more in Dubai and the ongoing renovation focus is to enhance customer experience in line
of major service stations such as the stations in with EXPO 2020 and Dubai Plan 2021 in the
Dubai Internet City which is up and running now local market.
and Oud Metha is expected to open later this
year. We are one of the largest players in the UAE
and we intend to further enhance our market
Additionally, we will commence construction of positioning. At the same time, we intend
Project Falcons phase 2, which is a 16km jet to expand into new markets with complete
fuel pipeline connecting our refineries in Jebel offerings of products and services across the
Ali to Al Maktoum International Airport in Dubai energy value chain.
South. Phase 1 connected Jebel Ali to Dubai
International Airport. The Dragon Oil acquisition
transformed the company into a fully integrated
oil and gas business. These achievements are
aligned with the Groups strategic direction to
Hedge Funds Hold Near-Record
Short Positions in Petroleum
Oil prices have been rising gently during the By June 20 hedge funds had amassed 480
past four trading sessions despite concerns million barrels of short positions in the five main
about the continued rise in the U.S. rig count futures and options contracts linked to crude,
and enormous excess inventories. gasoline and heating oil, up from only 350
million barrels on June 6.
Front-month Brent futures prices are up by
about $2 a barrel since touching a low of $44 Fund managers have only held a larger number
on June 21, which could herald a break in the of short positions in petroleum once before, in
downtrend that had been in place since late January 2016, when their combined shorts in
May. the five contracts totalled 484 million barrels.

Rising prices most likely reflect hedge funds The position in January 2016 coincided with
covering some short positions rather than a the trough of the oil price cycle and marked the
fundamental reappraisal of the outlook for start of the recovery.
supply, demand and inventories.
The question is whether the large number of
Hedge fund managers have become shorts now will mark a similar turning point.
progressively more bearish about petroleum
prices in recent weeks.
Qatar Petroleum Announces New
Fuel-Oil Bunkering Solutions in Qatar
Oil prices have been rising gently during the past four trading sessions despite concerns
about the continued rise in the U.S. rig count and enormous excess inventories.

Front-month Brent futures prices are up by about $2 a barrel since touching a low of $44
on June 21, which could herald a break in the downtrend that had been in place since
late May.

Rising prices most likely reflect hedge funds covering some short positions rather than a
fundamental reappraisal of the outlook for supply, demand and inventories.

Hedge fund managers have become progressively more bearish about petroleum prices
in recent weeks.

By June 20 hedge funds had amassed 480 million barrels of short positions in the five
main futures and options contracts linked to crude, gasoline and heating oil, up from only
350 million barrels on June 6.

Fund managers have only held a larger number of short positions in petroleum once
before, in January 2016, when their combined shorts in the five contracts totalled 484
million barrels.

The position in January 2016 coincided with the trough of the oil price cycle and marked
the start of the recovery.

The question is whether the large number of shorts now will mark a similar turning point.

34 Oil & Gas Leaders July 2017


Chinas 2017 Crude Oil Quotas Exceed
Last Years, Teapots Take A Cut
China issued a second batch of crude oil import Four independents -- Baota Petrochemical,
quotas under the so-called non-state trade that Wonfull Petrochemical, Haiyou and Chambroad
is higher than for all of the allowances in 2016, -- took the deepest cuts, between 43 percent
but allotments to independent refineries were and 90 percent, according to data Reuters
lower than a year earlier. compiled based on official documents.

The lower grants to the independents dealt Uncertainties over the time and the size of issues
the new group of crude oil buyers another have led some independents to scramble for
blow because they were already barred from purchases, resulting in brimming fuel stocks and
exporting refined fuel, squeezing margins in an port congestion.
oversupplied domestic fuel market.
We are rushing to buy as much crude as we can
The Ministry of Commerce approved 22.92 because we thought the government is going
million tonnes to 32 companies, against 29 to issue second batch of quotas based on the
recipients in the first issue for 2017, according volumes (used) in the first half of the year, said
to a document dated June 14 and viewed by a trader with Shandong Wanda Group, owner of
Reuters on Monday. Tianhong Chemical.

The 32 companies included mostly independent That led to higher running rate as we dont have
oil refineries, also known as teapots, and some enough storage ... and in turn a glut of refined
state-run companies. products.

That latest quotas take the total issued this year The Ministry of Commerce did not immediately
to 91.73 million tonnes, compared with 87.6 respond to request for comment.
million tonnes in 2016. The second batch will be
valid until year-end. Company officials at five independent refiners
told Reuters that they have received a second
Volumes for the 19 independent oil plants that batch of crude import quotas.
make up two thirds of the total issues for 2017
dropped by 12.36 million tonnes, or nearly 17 Beijing approved the oil quotas under the non-
percent, from last 2016. state trade designation, so they do not include
state-owned oil companies Sinopec, China
The message is pretty clear: the government is National Petroleum Corp, Sinochem Group,
tightening the screws as the industry is heavily China National Offshore Oil Corp and Zhuhai
oversupplied, said a Beijing-based trading Zhenrong Corp
executive who deals with independents.
The increased quotas buoyed the price of Oman
Those who have not played by the rules, under- crude on the Dubai Mercantile Exchange to its
using quotas for instance, are taking a bigger narrowest discount against Dubai swaps in four
cut. sessions. China buys most of Omans crude
output.
India Asks
Qatar to Invest
in Power Plants
as Condition for LNG Deals
India said it would sign future long-term liquefied It wont be quid pro quo but mutual interest...
natural gas (LNG) purchase deals with Qatar They can share the profit of those power plants,
if only Doha agrees to acquire stakes in the said Pradhan, adding New Delhi wants to expand
South Asian nations power plants, oil minister its ties with Doha beyond simply buyer and
Dharmendra Pradhan said. supplier.

India is the latest major LNG buyer to seek India wants to gradually move to a gas-based
concessions from Qatar, the worlds biggest LNG economy and has plans to raise its annual LNG
exporter, in order to re-sign long-term supply import capacity to 50 million tonnes in the next
contracts. Amid a global glut of LNG and a slump few years from 21 million tonnes now.
in prices, other buyers have sought more flexible
contracts, including clauses that would allow India is also open to granting stakes to Qatar
them to resell gas they do not consume. in local oil and gas companies and LNG
terminals, should the Gulf emirate make such
Yesterday, we have given a firm proposal to a proposal, said Pradhan. Indias biggest gas
Qatar. If they want to have a long-term off-take importer Petronet LNG annually buys 8.5 million
assurance, there is a window. They can deal with tonnes under a long-term contract. It also buys
our stranded power plants, from end to end they additional volumes from Qatar under spot deals.
can give some solution, Pradhan told Reuters on
Tuesday. Prabhat Singh, chief executive of Petronet, said
the Gulf nation needed to decide quickly on the
India is suffering from natural gas shortages that Indian proposal. He said India could be a stable
have required power plants with capacity of as outlet for Qatars LNG.
much as 25,000 megawatts to shut down or run
as lower rates. Qatars RasGas is Indias biggest
LNG supplier.
Plant 4.0 Start-Up Incubator: a 2nd
Edition on IoT With Five New Partners
Total is today launching its second Plant 4.0 the efficiency and boost the performance of
start-up incubator, joined this year by Air plants and different industries. This international
Liquide, AREVA, Eiffage, Solvay and VINCI call for projects focuses on connected objects
Energies. This is the very first multicorporate in industry in four areas:
Plant 4.0 start-up incubator in the world. The
partners common goal is to accelerate the Acoustic detection of leaks or anomalies.
deployment of digital technology in industry. Corrosion monitoring.
Non-invasive flow measurement.
Buoyed by the success of the Plant 4.0 start-up Manual valve position displays.
incubator launched by Total in 2016, the Group
decided to repeat the experience, this time Total works in an open innovation process
opening up the project to include other industry with start-ups and manufacturing partners
partners, on the narrower theme of innovative because we all face the same challenges.
solutions offered by the industrial Internet of Building digital solutions together speeds up
Things (IoT). their deployment in our plants and industrial
facilities, says Gilles Cochevelou, Chief Digital
This open innovation approach aims to identify Officer at Total. Digital tech improves safety
the start-ups that offer practical, relatively and efficiency, while reducing costs. It offers
mature industrial solutions to meet specialized a world of opportunities and could increase
operational requirements. The fledgling competitiveness in industry and for start-ups.
companies can test their technology, product
or service directly with their potential customers For the first incubator, all industrial digital tech
and are put in contact with the incubators fields were covered by Total, from robotics,
manufacturing partners and their start-up transportation, IoT, cybersecurity and remote
ecosystems. Total and the other partners will diagnostics to augmented reality, drones and
also share their expertise with the successful artificial intelligence. Out of 150 submissions,
candidates. 24 start-ups were shortlisted and 9 selected
for incubation periods of about 6 months.
With the spread of sensors and new Total introduced streamlined processes for
developments in data collection and collaboration with the start-ups, for example
management, innovative solutions can improve by having a single contact person. Proofs of

38 Oil & Gas Leaders July 2017


concept (pilots) were conducted at production The participation in Totals Plant 4.0 incubator
facilities and some of the start-ups continue to with key industrial players is a way for Eiffage
work with Total today. to work within a strong dynamic of open
innovation, on the issues already identified. The
Why participate in a multicorporate incubator? pool of qualified start-ups and the identified
uses will allow us to support the deployment of
Our involvement in the Plant 4.0 incubator digital technologies in our industrial activities to
reflects our Digital Transformation strategy, improve our performance, also accompanying
whose management of ecosystems is a the Group itself in the digital transformation
major axis, underlines Olivier Delabroy, VP stated Valrie David, Sustainable development
Digital Transformation, Air Liquide. The and transversal innovation Director, Eiffage.
relationships we have built and continue to
enhance with start-ups are a critical part of The teaming up of this group of industrial
our open innovation approach. It is a long- companies with specialized start-ups will help to
term, partnership-based approach aiming efficiently identify and address the digital needs
at accelerating innovation and our Digital of the industry. The cutting-edge solutions these
Transformation, focused on usages and design, start-up companies can bring will accelerate the
serving the customer experience. This proximity digital revolution that will transform our industrial
with start-ups helps us to increase our agility sites, said Alain Faessler, Solvay Group General
and to reinforce the expertise required to carry Manager Industrial.
out projects in various fields, including IoT. In
this respect, we look forward to joining this For Olivier Albessard, Brand director of
incubator that Total is opening for the first time Actemium, the VINCI Energies brand
to external partners. dedicated to the industrial process: Partnering
with startups and niche experts allows
Industry 4.0 concepts, including IoT, are the agility, creativity and a degree of solutions
first pillar of our digital transformation program. customization that accelerate our capacity to
We have over three years of experience with design innovative offers for the industry of the
Open Innovation and are very pleased with future. We develop our ability to respond as well
the results. For New AREVA, joining the Plant as our relevance, while the startup conquers
4.0 incubator is in line with this and reflects difficult markets to reach on her own. Our
our willingness to enhance our involvement in contribution to the Total incubator, one of our
industrial collaboration programs, commented major industrial partners, will allow us to go
Jean-Luc Delcuvellerie, Digital Transformation even further in this operational approach of co-
Program Manager, New AREVA. innovation, improving the industrial performance
of our client.

TO PARTICIPATE

Register at: www.plant4-0-startup-incubator.com.


The closing sate for submissions is September 2, 2017.
Shortlisted projects will be presented to the panel of judges.
The selection committee will reveal the names of the first start-ups selected
in the fourth quarter of 2017.
The successful start-ups may be incubated for several months.

The judges will include managers and experts from Total, Air Liquide, AREVA,
Eiffage, Solvay, VINCI Energies and their partner Impulse Labs, which
specializes in accelerating energy- and industry-related start-ups.

Oil & Gas Leaders July 2017 39


NIOC Includes 4 More Russian Oil Companies,
Azeri Socar Prequalified for Iran Projects
The National Iranian Oil Company has added NIOC has also asked prequalified companies to
five more international oil companies in its list seek its approval if they are selecting partners that
of prequalified companies for Irans oil and gas have not been prequalified for Irans upstream
upstream projects, just days before the June bidding rounds.
19 deadline for the Azadegan oil field tender
consortia, Platts reported. It plans to distribute detailed tender documents to
the companies in July.
NIOC has added Russias Gazprom Neft, Rosneft, The tender will be Irans first bidding round for a
Tatneft and Zarubezhneft and Azerbaijans major oil field, having previously relied on bilateral
state-owned Socar, taking its list of prequalified negotiations to award development contracts. It
companies to a total of 34. is also the first to be launched under Irans new
model contract, the Iran Petroleum Contract,
Russia now has six companies with Gazprom which is yet to be published.
and Lukoil in the list, the single largest number
of prequalified companies for Irans upstream This replaces the buyback contract, which
projects, followed by five companies from Japan. was not successful enough to attract
sufficient investor interest due to its tough
Officials at Russian companies have said they terms.
are potentially interested in projects in Iran but
the companies are waiting for a final contract NEW CONTRACT
to evaluate the economics and decide whether
they are to take part in them and in which form, The delay in launching the new
individually or via consortia. contract has held up Irans ambitious
plans to bring in new international
NIOCs updated prequalified list of companies oil companies and restore its oil
comes as Tehran is gearing up for the biggest test production to pre-sanctions levels of
of interest in the countrys oil sector in years, as around 4 million barrel per day.
major international oil companies prepare to bid
for the right to develop the Azadegan oil field, one Azadegan is the core of Irans
of its most prized assets. upstream development plans,
and accounts for most of Irans
The prequalified oil companies have been target for oil production capacity
asked to provide details of their planned increase. Hence, the upcoming
consortium partners by Monday, as tender is perhaps the most
part of NIOCs planned tender important event the government
to develop the giant onshore has been looking forward to for
Azadegan oil field. a while.
The tender covers the development of the entire Azadegan
field. Azadegan currently produces around 125,000 b/d, with
75,000 b/d from the northern portion and 50,000 b/d from the
south. NIOC plans to raise production to 150,000 b/d in the
north and as much as 600,000 b/d in two phases from South
Azadegan.

At the start of June, Gazprom Neft and Austrias OMV, which


is also a prequalified company, signed an agreement on
cooperation on projects in Iran.Gazprom Neft was studying
the possibility of participating in the development of two
blocks in Iran and given OMVs experience in Iran and the
Middle East, joint geological assessment of blocks will be
most effective.

Gazprom Neft earlier said it was looking at the Changouleh


and Cheshmeh Khosh oil fields.

Iran has already invited OMV to participate in an imminent


tender to develop the Azadegan oil field.

Malaysias state-owned Petronas and Royal Dutch Shell have


handed over their technical studies report on the Azadegan
oil field to NIOC.Frances Total and Japans Inpex Corp. have
also offered their surveys on Irans largest crude reserves,
Noureddin Shahnazizadeh, the managing director of Irans
Petroleum Engineering and Development Company said.
Total, Shell, Inpex and Petronas are among the prequalified
companies to bid for the Azadegan field.
UAEs ENOC Group and
USs Chevron Explore
Long-Term Strategic
Collaboration in Oil & Gas
Senior officials of the ENOC Group and long-term collaboration for nearly two
Chevron met recently to discuss existing decades and it is based on this foundation
and potential business opportunities. that we continue to look at future
collaborations that are mutually beneficial
The meeting between Saeed Al Tayer, Vice to both parties. We hope to build on our
Chairman of ENOC Group, Saif Humaid mutual track record and explore new
Al Falasi, Chief Executive Officer of ENOC business opportunities, Al Tayer said.
Group, Michael Wirth, Vice Chairman of
the Board and Executive Vice President, Welcoming the opportunity to meet ENOC
Midstream and Development for Chevron leaders, Wirth said, Chevron and ENOC
Corporation, and Jay Pryor, Vice President have had a strong partnership for nearly
of Business Development at Chevron, two decades and we remain committed
comes at a time when the ENOC Group is to ongoing collaboration. The alliance
continuing to expand its businesses across between Chevron and ENOC extends
the energy value chain. across various aspects of downstream
operations ranging from lubricant marketing
ENOC and Chevron have had a successful to aviation refuelling.
How McDermotts Head of Engineering
For Batam Inspires Young Female
Engineers To Lead and Succeed
If theres one thing every female engineer has manager for a shipping company in Medan. Both
in common at work, its having to deal with the her parents were teachers who retired as the
misconceptions of being a woman in engineering. principals of two local schools.
From leading a team to being emotional, every
female engineer has to work twice as hard as the Vivi was married in 2006 to her co-worker, an
men just to prove that they are capable of doing American expatriate who worked in McDermott in
the work, climb up ones career ladder and earn the Indonesia. They went separate ways in 2014. Vivi
respect of the people they work with. For Elviana and her ex-husband remained committed to the
Sari (Vivi), becoming the McDermott International, education and co-parenting of their two children.
Inc. Head of Engineering for the Batam fabrication
yard meant going through several challenges to Work experience
reach this point in her engineering career. January 2001 November 2004:
Joined McDermott as Structural
Being the first female production engineer Production Engineer
when she entered McDermott, she did not only
encounter challenges at work as an engineer, she December 2004 April 2005:
also had to deal with how being a woman in a Retrenched from McDermott and joined a
male-dominated industry affects her relationship contact lenses manufacturer as Equipment
with her co-workers. As the Head of Engineering and Facility Engineer
for McDermott in Batam, she manages five
departments: Construction Engineering, Detailing May 2005 - May 2007:
Office, Production Engineering, Document Control Rehired by McDermott as Lead Structural
and Completion Engineering. Her work also Production Engineer
includes bidding, safety and quality commitment,
presentation for bid proposal, and staff June 2007 September 2009:
development and initiatives. Fabrication Coordinator manage structural
and other disciplines such as piping,
In this exclusive interview, learn more about Vivis mechanical, coating, electrical and
humble beginnings as a student who aspired to instrumentation
be an engineer and find out how being a female
engineer didnt stop her from climbing up the October 2009 July 2010:
career ladder despite the several pressures and Followed husband back to US and then
problems she encountered along the way. She subsequently moved to Nigeria before
also shares the common misconceptions she relocated back to Asia to deliver her second
had to deal with at work and her advice to female baby in Singapore by the same gynecologist of
engineering students who want to pursue a career her first born child.
in the industry.
September 2010February 2014:
Meet Elviana Sari Deputy Construction Manager

Family March 2014 February 2016:


Elviana Sari (Vivi), who hails from Medan, Deputy Fabrication Manager
Indonesia, is the eldest among four siblings in
her family. She has two younger sisters, one a February 2016 current:
pediatrician and the other an accountant; and Head of Engineering manages five
a younger brother who works as a marketing departments i.e. Construction Engineering,
Detailing Office, Production Engineering, I was determined to be an engineer. I told
Document Control and Completion myself back then that theories and management
Engineering. Other roles include bidding, principles were not enough. I needed a technical
safety and quality commitment, presentation background so I enrolled into two colleges. It
for bid proposal, and staff development and was madness come to think of it now. I had to
initiatives. juggle between lectures, tuitions and assignments
from two colleges. I made a conscious choice
What motivated her to pursue engineering? of studying the same discipline so I was able to
apply the knowledge from one college to another.
Since she was young, Vivi had a clear vision of Im glad I pulled that through. Vivi successfully
her choice of career. She aspired to be either a completed her bachelors degrees by end of 1999
doctor, to care for her mother who was always and graduated from UNS and MIT in 2000.
sick back then, or an engineer as she had always
been captivated by pictures of flares emitting from Even as a fresh graduate in the employment
oil rigs, people wearing safety helmets, glasses market, Vivi didnt want to settle for the norm.
and coveralls something that she was exposed Unlike her peers that sought employment closer
to due to the calendars that her PERTAMINA- to home, she chose to start her career in Batam
employed uncle brought home every year. Island, some 800km from Medan. She knew back
then that if she wanted to work in the oil and gas
I thought it was cool to be able to work on a industry, Batam is the right place to start. Batam
mega structure out there in the big blue sea back then was an upcoming industry estate with
and produce the energy that power the nations multinational oil and gas firms such as Kvaerner
growth, she said. and McDermott already operating there.

To Vivi, becoming a doctor was initially her first Vivi utilized the balance of her education
choice. It was family before everything else as she scholarship while searching for jobs in Batam.
felt compelled to fulfill her filial responsibility to She did not rely on any financial support from her
cure her sick mother. She was already studying parents.
science and biology in senior high school to
build her foundation for the eventual medical What were the challenges that she
studies but when her mothers health improved encountered during her engineering
and became better, she finally chose engineering career?
as her personal career choice. The Industry
business was booming in Indonesia so I chose There were many ups and downs in Vivis career.
Industrial Engineering studies, she said. One of the most memorable lessons that she
learnt was never to proceed with work until it is
With her targets set to either own an engineering absolutely confirmed. She recalls an incident
firm or be employed by an engineering company, where her boss requested that she proceed
in 1995 Vivi enrolled into two different colleges at with the purchase of construction materials.
the same time i.e. University of North Sumatera Unfortunately when the materials were purchased
(UNS) and Medan Institute of Technology (MIT). the design drawing was revised, rendering the
Both colleges were offering Industrial Engineering materials unusable that resulted in increased
Degree course but vary in terms of focus and production cost.
applications. UNS focused more on engineering
management, theories and principles whereas The other challenge was managing up.
MIT focused more on the technical aspect of the Throughout her career, Vivi has come across 12
discipline. To be accepted into UNS, a public different supervisors, all with different styles and
university was not easy as they impose strict temperaments. Even though we have people
enrollment criteria that require students to score under our supervision, working in a company is
first rank in pre-university studies covering six not always about managing your downline. It is
different subjects i.e. biology, chemistry, physics, equally important to manage your supervisors as
mathematics, English and Indonesian language. well, she said.
Being the first female production engineer was What are her achievements, successes
also not easy, especially when she first took and accomplishments so far?
on the job back in 2001. When I first made my
rounds at the fabrication yard, people stopped Vivi was in-charge of Gorgon Upstream project
their work and looked at me in a weird way as if from 2010-2014. It was the first subsea project
the workshop is not a place for women. Some for McDermotts Batam yard. She worked with
even had a problem having a woman as their a client to establish new fabrication methods
supervisor. I proved them wrong by going down for various subsea structures and assisted the
to their level to understand their jobs, telling them team in delivering the project with zero Lost Time
we can learn from each other. I also did my job Incident record, on schedule and within budget.
as a production engineer to prove my capability
and that earned their trust. I review, approve and The other mega project that Vivi was involved
simplify the design drawings into shop drawings in was the Ichthys project, where Batam yard
for production line, ensure that the construction successfully delivered its biggest lifted structures,
materials are procured correctly, issue to shop i.e. MEG Distribution Manifold, Production Riser
floor as per schedule, monitor and collect Base and Gas Export Riser Base (at 1000 tones)
progress updates, report completion status and on Feb 2016.
interface with clients and workers on fabrication
problems based on the project and construction
specification and standard. What are her current duties and
responsibilities in McDermott?
Did the double degrees (theories and
technical) prove useful in handling the Vivis current responsibilities as the head of
initial challenges? Which one was more engineering for Batam yard include managing
useful at the beginning? What about now? five departments i.e. Construction Engineering,
Detailing Office, Production Engineering,
The theories that I learnt in university was not Document Control and Completion Engineering.
entirely useful in the beginning as there were gaps Other roles include bidding, safety and quality
between the education system in Indonesia and commitment, presentation for bid proposal, and
the industry in general. Willingness to learn and staff development.
staying motivated played a big part in helping me
to adapt into the working world. Batam yard, which was established back in 1970,
is the largest yard by size within McDermott,
Based on my studies in Industrial Engineering, I measuring at 110 hectares. The facility serves
also noticed plenty of room for improvements at both traditional and floating offshore construction,
the yard such as how the plates are stored, cut the growing onshore LNG module market and
till finish to avoid double handling etc. I provided subsea structure fabrication markets.
input to help make improvements to the working
processes at the yard. The yard is equipped with more than 20 facilities,
including a craft training center, carbon steel and
Certain subjects such as psychology that I learnt alloy workshops, pipe rolling mills, fabrication
does help a lot in meeting and connecting with shop, tubing shop, painting and blasting shops,
people of different backgrounds. This has made it thermal spray aluminum shop, sub-assembly
easier to get the job done. Now that I have moved deck building shop, assembly areas, NDT testing
up the career ladder with greater responsibilities, etc.
the theories and technical knowledge are
beginning to be more useful such as planning and McDermott is a leading provider of integrated
ensuring optimization of resources, interacting with engineering, procurement, construction and
people, coaching my subordinates and improving installation (EPCI) services for upstream field
the engineering team. developments worldwide. The Company
delivers fixed and floating production facilities,
pipelines and subsea systems from concept to
commissioning for complex Offshore and Subsea point that I am on top of things, which helped
oil and gas projects to help oil companies safely gain respect from the team.
produce and transport hydrocarbons.
c) Women are emotionally weak
What are the misconceptions of being a Vivi is highly independent. She travelled and
female engineer? stayed in Batam all by herself fresh out of
university. In 2014, she was dealt with a difficult
a) Women cant stand the heat and pressure of blow an impending divorce and the demise
field work, and that their commitment to work of her father all happened almost at the same
will be affected once they get married and start time while still remaining 100% committed to her
a family life. work and caring for her two children.

I had no issue going about my routine work. Advice to the young female engineering
I climbed ladders, travelled in a four wheeled- students who are thinking of pursuing
drive (the yard is 110 hectares, equivalent to 177 engineering
soccer fields, thus site visits require a vehicle to
move about), and managed my family and career Dont ever give up on your dream simply because
without any issue, she said. someone says you cant do it. Learning by
experience is the best lesson. Dont be afraid to
b) Women cannot lead. make mistakes. They make you a better person.
I overcame this misconception by speaking with Lastly, stand up for what you think is right.
the co-workers, understanding their background
and was not hesitant to learn from them on
things that I did not know. Speaking confidently
among the male colleagues also helped exert the

Family support was vitally important. My parents were very supportive of my choice of career.
They did not stop me from leaving my hometown after graduation to seek employment in Batam
even though they were like helicopter parents and did not allow me to leave Medan to attend a
more famous university/institute in other islands. I would also like to thank the previous
supervisors who hired and rehired me for having the trust in a female to take on the job as a
production engineer in a great company like McDermott.

48 Oil & Gas Leaders July 2017

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