Professional Documents
Culture Documents
Sustainability
Through
Innovation
in UAEs Oil
and Gas Industry
His Excellency
Saif Humaid Al Falasi
Group CEO, ENOC
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Senior Editor-At-Large
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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.
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.
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.
Largest Natural The global energy giant British Petroleum (BP) in its
annual report on world energy reserves put Irans
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
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.
General Business:
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.
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
TO PARTICIPATE
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.
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.