SPECIAL REPORT: HEALTH & SAFETY CHALLENGES AND OUTLOOK

@OilandGas_ME oilandgasmiddleeast

NEWS, DATA AND ANALYSIS FOR THE MIDDLE

MIDD
DLE EAST’S
EAST’S ENERGY
ENERGY P
PROFESSIONALS
ROFESSIONALS January 2019 • Vol. 15 • Issue 01

In Numbers Industry Outlook

Middle Eastern oil Accenture says this mix
production will lead of technologies has the
global growth /p8 highest yield for upstream
companies / p10

Regulars:
/ NEWS
/ DATA 5 MINUTES
/ COMMENT WITH
/ INTERVIEWS LIV HOVEM,

/ ANALYSIS CHIEF EXECUTIVE

OFFICER OF DNV GL
/ PROJECTS /P50

THE APP • DO
OAD W
NL
NL
W
THE APP • DO

OAD
THE APP • DO
OAD
NL

NL
OAD W
THE APP • DO

INTERVIEW

DIGITAL
Schneider Electric, the
h company bbehind
ENABLER
hi d th
the P
Panorama Command
C d Centre,
C t on the impressive
display unifying data from ADNOC’s 14 companies in its push towards a digital future
 AIR WINCHES & HOISTS
The most comprehensive range of Air Winches, Air Chain Hoists and BOP Handling
Systems on the market – 0.125t to 200t capacity.
Setting the standards in winch and hoist technology, our lifting equipment are known
throughout the Heavy Industry, the Mining and the Onshore and Offshore Drilling
Industry for their reliability and safety.

AIR WINCHES
The Ingersoll Rand air winches combines the best ideas and innovations resulting from over 200
years of experience in solving the most challenging lifting, pulling and positioning applications in the
world’s toughest industries.

AIR CHAIN HOISTS

Ingersoll Rand air hoists have been providing lifting solutions to industries around the globe since the early
1900's.
Today, we offer the broadest range of air operated chain hoists in the world up to 100 t capacity.
We pride ourselves in our willingness and ability to take on tough applications with engineered special
products.

BOP HANDLING SYSTEMS

For over years Ingersoll Rand has designed, manufactured and serviced hundreds of blowout
preventer handling systems for all the major drilling contractors and oil companies in the
industry.
Our commitment to safety and quality combined with our long experience with difficult lifting
applications allows us to provide our clients with the safest and most cost-effective solutions
possible.
 CONTENTS

18
COVER STORY

JANUARY 2019 / Volume 15 Issue 01

Highlights in this issue:
08 12
Crunching News
the numbers update
This month, we look Read the stories that
at data compiled by have been making
Rystad Energy that headlines throughout
shows Middle East the region this month,
conventional oil output with the most interesting,
leading global growth important scoops from
in the coming years. oilandgasmiddleeast.com.
18
Digital
enabler
Operators talk about digital-
isation, but oilfield services
providers like Schneider
Electric, which developed
ADNOC’s Panorama Com-
mand Centre, make those
digital dreams a reality.
25
Special Report:
Health & safety
This month’s Special
Report explores health and
safety in the oil and gas
sector, examining activity
in this sector and analysing
the challenges and oppor-
tunities it presents.

FIVE MINUTES WITH: Liv Hovem, CEO of DNV GL, talks about the energy transition and what the
energy market will look like by 2050.

oilandgasmiddleeast.com JANUARY 2019

 CONTENTS

Also inside: 10 12
08
06 / Editor’s letter
Carla Sertin with her thoughts
on oil price fluctuations, output
cuts & the tweets they incite...

08 / In numbers
The Middle East will lead
global conventional oil
production growth. 18 25
10 / Industry outlook
Accenture on the mix of
technologies that yield the best
results for oil & gas companies.

12 / News update
The most important regional
news that stole headlines this
month.
KEEP
UP-TO-DATE
18 / On the cover: For all the latest
4 Digital enabler news, check out

Schneider Electric president of

www.
oilandgasmiddleeast Online
oil, gas & petrochemicals on the .com
company’s work with ADNOC.

25 / Special Report:
Health & safety
Industry leaders talk about Editor’s choice:
this segment of the oil and gas www.oilandgasmiddleeast.com
industry. • O&GME Top 30 Oilfield
Services Companies 2018
40 / KSA focus • Oil & Gas Middle East Top 30
A look at King Salman Energy EPC Contractors list 2018
Park and localisation in the • Video: O&GME and AVEVA
Kingdom. 40 hosts roundtable
• Video: O&GME and R&PME
42 / Project Focus 42 Awards 2018 achievers
Everything you need to know
about Masirah Oil’s Block 50. App
DOWNLOAD IT TODAY ON YOUR
50 /Five minutes with... iOS, ANDROID OR KINDLE
Liv Hovem, CEO of DNV
GL, on the energy transition,
sustainability, and the Middle
East’s role in a changing
market. 50
JANUARY 2019 oilandgasmiddleeast.com
 Part of /VZ[LKI` ADSW Principal Partner

Diamond Partner Innovation Partner Strategic Partner ,ɉJPLUJ`7HY[ULY Energy Partner

14 - 17 JAN 2019 | ADNEC, ABU DHABI

Be inspired, at WFES Energy.

Discover the disruptive technologies &
innovations driving renewable energy
adoption.

33,000 $15bn 850

Attendees From 170 Countries Worth Of Projects Announced Exhibiting Companies

Access a World of Networking Opportunities

Register today at wfes.ae

14 - 17 Jan 2019 | ADNEC, Abu Dhabi

Sustainable Finance Partner Platinum Partner The Future Summit Co-Sponsor ADSW Mobile App Sponsor WFES Solar Lanyard Sponsor WFES Energy & Solar Badge Sponsor Industry Supporter 6ɉJPHS/V[LS7HY[ULY

Key Sectors Organised by

WFES WFES WFES WFES WFES WFES

ENERGY WATER EcoWASTE SOLAR GREEN MOBILITY
BUILDINGS
 EDITOR’S LETTER
Cut it out!
Trump might not like it, but OPEC+ production cuts, and higher
oil prices, are good news for US shale producers
I
t has been an interesting if
slightly unpredictable year
for the oil market; oil prices
rose above $80 per barrel, and
fell below $60 per barrel. OPEC
THIS ISSUE:
output was boosted, and then
We talk to Schneider cut. Geopolitical tensions rose,
Electric’s energy and then dissipated.
president about its US President Donald Trump, for
work to digitise his part, has certainly been a key
ADNOC (p18).
factor in the oil market this year,
even if he will not take credit for it.
When the US announced the reinstatement of
sanctions against Iran, taking a hard-line stance
6 that it would not offer any exemptions, speculation
about a supply shortage hit the market and helped
push prices to four-year highs in October.
Trump blamed OPEC for the price hike, using
his favourite tool: Twitter. In June, OPEC agreed
to boost production to fill a potential supply gap.
But when the Trump administration issued eight
waivers surrounding sanctions, and its shale pro-
duction started to ramp up, oil markets were start-
ing to look oversupplied, and oil prices dropped.
Trump took to Twitter to express his joy, calling
the price drop a “big tax cut for America and the
world,” and thanking Saudi Arabia while asking it
to “go lower” on oil prices. It is uncharacteristical-
ly humble of Trump—whether or not his actions
this year were strategically placed to force a drop
in prices before November midterm elections, he
certainly holds some of the responsibility for the
recent drop in oil prices.
But how low does he want prices to go? In 2013,
he tweeted that “oil should not cost more than $40
a barrel. Ideally it should be $25,” citing that it is
“cheap to produce.”
Despite the fact that the Trump administration’s
domestic regulations have promoted the coun-
SUBSCRIBE Business
To subscribe to Oil & Gas Middle East, or other ITP
titles, go to: www.itp.com/subscriptions.
JANUARY 2019
try’s energy industry, and Trump
frequently boasts about US output
levels, extremely low oil prices
would hurt shale producers, a pil-
lar of his support base. US shale
production revolutionised the oil
market precisely because operators
could extract hydrocarbons at a low
cost, breaking even at crude prices
of around $50 per barrel in the
Permian Basin.
Analysts say prices close to $45
per barrel would put a strain on US
producers. With WTI crude (the
US benchmark) at $51 per barrel, as
of writing, that doesn’t leave pro-
ducers with much of a margin.
Prices at the gas pump are a key
issue for US voters, but with US
production at a record 11.7mn bpd,
it will be interesting to see how his
administration balances the needs
of shale producers with those of
other voters looking for a discount
at the pump.
US crude production is expected
to average more than 12mn bpd
in 2019, according to the Energy
Information Administration. With
growing production, the US could
eventually shift from net importer
to net exporter.
We might someday see the US
among OPEC’s ranks, and then,
perhaps, the tweets will be much
sweeter.
Carla Sertin
Editor, Oil & Gas Middle East
carla.sertin@itp.com
PO Box 500024, Dubai, UAE
Tel: 00 971 4 444 3000
Web: www.itp.com
Offices in Abu Dhabi, Dubai, London & Mumbai
ITP Media Group
CEO: Ali Akawi
Managing Director: Alex Reeve
Group Publishing Director: Ian Stokes
Group Editorial Director: Greg Wilson
Editorial
Editor: Carla Sertin
Tel: +971 4444 3265 email: carla.sertin@itp.com
Advertising
Sales Manager: Cherylann D’Abreo
Tel: +971 4444 3177 email:cherylann.dabreo@itp.com
ITP Digital
Advertising Director: Riad Raad
Tel: +971 4 444 3319, email: riad.raad@itp.com
ITP Live
General Manager: Ahmad Bashour
Tel: +971 4 444 3549 email: ahmad.bashour@itp.com
Photography
Senior Photographers: Rajesh Raghav, Efraim Evidor,
Richard Hall
Staff Photographers: Lester Apuntar, Aasiya Jagadeesh,
Ausra Osipaviciute, Grace Guino, Fritz Asuro, Ajith Narendra
Production & Distribution
Group Production & Distribution Director: Kyle Smith
Production Manager: Basel Al Kassem
Outsource Manager: Aamar Shawwa
Production Coordinator: Mahendra Pawar
Senior Image Editor: Emmalyn Robles
Circulation
Head of Circulation: Vanessa D’souza
Circulation Executive: Loreta Regencia
Marketing
Director of Awards & Marketing: Daniel Fewtrell
Events Manager, Business Events: Teri Dunstan
ITP Group
CEO: Ali Akawi
CFO: Toby Jay Spencer-Davies
The publishers regret that they cannot accept liability for error or omissions
contained in this publication, however caused. The opinions and views contained
in this publication are not necessarily those of the publishers. Readers are advised
to seek specialist advice before acting on information contained in this publication
which is provided for general use and may not be appropriate for the reader’s
particular circumstances. The ownership of trademarks is acknowledged. No
part of this publication or any part of the contents thereof may be reproduced,
stored in a retrieval system or transmitted in any form without the permission
of the publishers in writing. An exemption is hereby granted for extracts used for
the purpose of fair review.
Published by and © 2019
ITP MEDIA Group FZ-LLC.
oilandgasmiddleeast.com
Stay one step
ahead of your competitors
with the DMS Projects Matrix

REGIONS COVERED
• Asia Pacific • North America • East Africa • India
• Middle East • Central America • North Africa • China
• Latin America • Russia & CIS • West Africa • Europe

SECTORS COVERED

Oil Gas Petrochemicals Water Power Infrastructure Industrial

Refining Construction Pipeline Offshore Renewables Mining Fertilizer

SUBSCRIBE TODAY A Division of

or contact us for further information

• www.dmsprojects.net • +973 1740 5590 (Bahrain Headquarters)

• info@dmsglobal.net • +971 249 161 71 (UAE office)
 IN NUMBERS
MIDDLE EAST DRIVES
GLOBAL GROWTH
Rystad Energy forecasts that by 2025, Middle Eastern conventional oil production will grow by
2.7mn barrels per day (bpd), leading global growth
Middle Eastern oil production is expected to grow by 2.7mn
bpd by 2025, according to the latest Rystad Energy analysis. The
boost in conventional oil output from the Middle East is pri-
marily driven by supply additions from Iraq, with an estimated
1.5mn bpd growth, and an additional 1.2mn bpd mainly coming
8
Iraq
Iraq’s oil production is expected to reach 6.15mn bpd
in 2025. Growth will be driven by Rumaila, West Qur-
na-1 and West Qurna-2 fields. Majnoon, Halfaya phase
three and Garraf phase two could add 550,000 bpd in
that time, and near-term project approvals, which
could include Faihaa full field development and
further expansion of Nasiriyah and Shaikan,
could add 325,000 bpd to the coun-
try’s production by 2025.
UAE
UAE oil production could grow to 3.71mn bpd in
2025. Development projects sanctioned in the past
18 months include the Bab expansion (Thamama
A/B/H) and phase two of Qusahwira and Haliba
fields. ADNOC further expand Bu Hasa and Umm
Shaif fields, a sustainable facilities project at Bab,
and the Upper Zakum expansion where
production is expected to increase by
250,000bpd to reach 1mn
bpd.
JANUARY 2019
from the Neutral Zone, the UAE and Iran in the medium term.
Output from conventional fields outside the Middle East
peaked in 2010 and is expected to continue falling with current
estimates putting 2025 output at 45.6mn bpd, a 2.3mn decline
from current levels.
Iran
US sanctions will see Iran’s oil output dip year on
year by around 700,000 bpd, including waivers. If
sanctions are adhered to and then lifted in 2021, un-
derinvestment in the interim would slow the eventual
production ramp up. Production could restart at
90% of pre-sanction levels, and ongoing devel-
opments would add 50,000 bpd by 2025.
Delayed development projects with
FIDs could add 325,000
bpd.
Neutral Zone
Oil production from the Neutral Zone shared be-
tween Saudi Arabia and Kuwait has been shut since
2015. Earlier this year, the two sides began negotiations
concerning the restart of the fields. Rystad En-
ergy’s base case incorporates a restart and gradual
ramp up of fields in the Neutral Zone to about
500,000bpd in the medium term.
oilandgasmiddleeast.com
 IN NUMBERS

Global conventional oil production Y/Y additions by country in Middle East

Million bpd Million bpd
Rest of the world (excl. Tight Oil) Iraq Neutral Zone UAE Iran Others
Middle East

3.8mn bpd

2.27mn bpd

2.7mn bpd

5.3mn bpd

Source: Rystad Energy UCube

Total oil production for key Middle East countries*

Million bpd
*Excludes Saudi Arabia
Source: Rystad Energy UCube

Iraq

Iran

UAE

Kuwait

Qatar
Oman
Neutral Zone

oilandgasmiddleeast.com JANUARY 2019

 NEWS ANALYSIS
INDUSTRY OUTLOOK
Finding the right
digital strategy
Accenture says digitalisation should be strategic, and finding the right
mix of technologies could help oil and gas companies unlock an additional
$6bn in market capitalisation
A
s workers carry out
complex – and some-
times dangerous – main-
tenance work at oil and
gas facilities, wearable radio-fre-
quency identification (RFID) tags
and pervasive wireless networks
track their locations, biometrics,
and environment. This is Indus-
try X.0 at work, where technolo-
gies come together to digitally
transform businesses into smart,
10 connected, learning and living
entities. With artificial intel-
ligence (AI) and real-time data
analytics, managers are able to
respond immediately to develop-
ing situations, anticipate the need
for backup, reassign teams that
complete their tasks early, and
even prevent accidents by identi-
fying employee fatigue.
Beyond millions in savings
from reduced downtime, the sys-
tematic combination of wireless,
wearables, cloud, analytics and
mobile technologies dramatically
improves worker collaboration,
productivity and safety. It also
leads to improved agility and in-
novation, and expanded revenue
streams for organisations. Ac-
cording to Accenture’s Combine
and Conquer study, the oil and
gas industry stands to gain more
than most, some $6bn in market
capitalisation, by hitting the right
mix of technologies.
Yet, despite the success of pilot
programmes, there is a need for
JANUARY 2019
oil and gas players in the Middle
East to aggressively push beyond
strategy to execution, and scale
pilots so that benefits flow to all
parts of the company.
Overcoming regional and secto-
ral challenges
With weaker oil prices, lower
demand, and delayed capital
investment, oil and gas compa-
nies in the Middle East are under
pressure to boost productiv-
ity through digitisation. How-
ever, investment continues to be
uneven – in the refining sector,
for example, a recent Accenture
survey found that only 19% of
companies are making digital an
investment priority.
A key challenge for the Middle
East is developing an organisa-
tional culture where failure is
part of the innovation process.
The digital age demands agility
and for companies to be willing
to move rapidly through failed at-
tempts while steering projects to
success. There needs to be a will-
ingness to invest in digital talent
and technology to move forward
on the digital transformation
journey. Already, a number of
companies have recognised the
importance of having a chief digi-
tal officer to oversee their digital
transformation, and the advan-
tage of new technologies.
However, to realise the full
value of digital, it is not enough
The oil and gas
sector could gain
$6bn in market
capitalisation
from digitisation
for companies to merely incor-
porate Industry 4.0’s operational
efficiencies. They must lever-
age the combination of digital
technologies that will give them
a decisive edge. Industry X.0
pushes beyond point solutions
and, instead, presents a roadmap
for digital transformation. By
using the right mix of technolo-
gies, and in the right combina-
tions, companies not only create
smart products and connected
services, but also reinvent their
operating models, production
and value chains, leading to new
levels of efficiency, new sources
of growth, and new customer and
worker experiences.
Our study of 900 companies
in the world’s 21 largest indus-
trial countries found that five
digital technologies in particu-
lar—autonomous robots, mobile
computing, autonomous vehicles,
3D printing and machine learn-
ing—can help companies achieve
additional market capitalisation
oilandgasmiddleeast.com

of just over $6 billion.
The actual combination that
delivers growth and value varies
across industries. Data from the
65 oil and gas companies in our
survey shows that for this indus-
try, significant top line value can
be unlocked by combining digital
twin (8%), autonomous robots
(8%), AI (12%), big data (27%)
and augmented reality (28%).
For regional players, strate-
gic investment based on this
combination will accelerate
their transformation, improving
performance in terms of safety,
operations, cost and ability to
quickly develop new assets.
Transformative digital
strategies
Oil and gas companies need to
leverage the technologies that
will allow them to transform
their core, enable the next
generation of talent and engage
effectively with partners.
Transform the core: Upstream
oilandgasmiddleeast.com
companies can gain important
efficiencies from digitising and
integrating their engineering,
production and support sys-
tems. Digital twin technologies,
which provide a digital replica
of physical assets, and connected
workers are core elements of this
initiative. With digital twin tech-
nologies, production companies
can optimise efficiency virtually
without risking physical assets,
train workers without putting
Paul Carthy,
managing direc- them in harm’s way, and move to
tor and resources a predictive maintenance model,
industry lead, reducing unplanned downtime
Accenture Middle and cost. With wearable tech-
East & Turkey
nology, workers have constant
Mahmoud Abou- access to information, whether
Beih, technology from a database or ‘live’ from
consulting senior an expert across the world, and
manager, Ac- receives immediate warnings in
centure Middle
East & Turkey
potentially hazardous situations.
When man, machine and intel-
ligence are combined effectively,
the result is end-to-end optimisa-
tion across the entire value chain,
from reservoir to market.
Source and enable the next
generation of talent: Smart plants
require a smart workforce. There
is an urgent need to prepare both
current and future workforces
for a workplace where man and
machine work alongside each
other. As such, they will need
to be skilled in key digital areas
including AI, machine learning,
and design thinking. Already, oil
majors in the region are working
NEWS ANALYSIS
both internally and with univer-
sities and governments towards
this goal, training talent for the
energy industry. But while pro-
gress is being made, it is not be-
ing made fast enough, given the
region’s rapidly aging workforce
and the competition from more
‘eye-catching’ industries.
Re-architect the new eco-
system: As digital technology
advances exponentially, compa-
nies must share their knowledge 11
to access the full range of benefits
it offers, from reduced costs to
accelerated innovation. In the
last fiscal year alone, Accenture
has invested $1.7bn in acquiring
digital and cloud-related busi-
nesses with experience in AI, 3D
visualisation and cybersecurity.
This is in addition to a network
of innovation centres around the
globe that generate ideas and
insights for our clients. In the
digital age, ecosystem orchestra-
tion, open and co-innovation, and
technology incubation are key.
While digital is a vital enabler,
piecemeal investments will not
deliver results. It is time to make
a commitment to digital, and to
build smart, connected, living
and learning entities that deliver
on safety, productivity, innova-
tion and financial performance.
Only when pilots are scaled
up and strategies executed will
the region’s companies take their
place on the global stage.
JANUARY 2019
 NEWS

Coming up:
/14 Around the Gulf
/15 Play/Pause
/16 Sustainability focus
/17 ADNOC CO2 capture
For the latest news and analysis,
visit oilandgasmiddleeast.com

OPEC decides on production cuts for 2019

The organisation and its allies will cut 1.2mn barrels per day (bpd) of production in 2019.

OPEC members were represented by

their respective energy ministers

12

A
800,000 fter two days of talks in
Barrels per day of
Vienna, the Organisation
production to be cut
by OPEC members of the Petroleum Export-
ing Countries (OPEC) struck a
consensus for production cuts
in 2019. The group and its allies
will cut a combined 1.2mn bpd of
production in 2019.
“A production cut of 1.2mn
bpd would tighten the oil market
by the third quarter of 2019 and
cause prices to rise back above
$70 per barrel for Brent,” said
Ann-Louise Hittle, vice presi-
dent, macro oils, at Wood Mac-
kenzie. “It would help producers
contend with the strength of US
supply growth in 2019 when we
expect a year-on-year increase of
2.4mn bpd in non-OPEC produc-
tion as US supply continues to
gain sharply.”
OPEC nations will carry the
brunt of the cuts, reducing oil
production by 800,000 bpd after
holdout Iran accepted the deal.
Meanwhile, non-OPEC produc-

“I’M CONFIDENT THAT OUR RESOLVE, OUR PROFESSIONALISM & OUR WILLIGNESS TO ACHIEVE RESULTS IS AS STRONG
QUOTE: AS EVER. IN CURRENT CONDITIONS, IT’S EXTREMELY IMPORTANT TO SEND A STRONG SIGNAL TO THE MARKET.”

JANUARY 2019 oilandgasmiddleeast.com

 NEWS

ers (with Russia a key player)

will cut production by 400,000
bpd.
“I’m confident that our resolve,
that our professionalism and our
willingness to achieve results is
as strong as ever,” Russian En-
ergy Minister Alexander Novak
reportedly said of the OPEC+
coalition. “In current conditions
it’s extremely important to send a
strong signal to the market.”
Russia’s role in the global oil
market has grown since OPEC
struck a landmark deal with
the nation in 2016, agreeing to
production cuts which helped
bolster oil prices after the 2014
crash. Oil prices have seen some
fluctuation in recent months due
to a number of factors.
Prior to the reinstatement
of US sanctions against Iran,
speculation and fear surround-
1.2MN ing a potential supply shortage
helped oil prices shoot up to a
barrels per day will be four-year high of $86 per barrel
cut from OPEC and allies’
production in 2019 of Brent crude in early October.
When sanctions were announced
in May 2018, OPEC+ agreed to
increase production to fill any
supply gap left by Iran, as well
as Venezuela, which is facing an
ongoing economic crisis.
But sanctions have had a
smaller effect than expected. The
eight waivers granted by the US
surrounding sanctions against
Iran have dented its impact, and
the surprising ramp up in US
shale production helped to push
supply growth and lower oil
prices.
US production growth was
particularly surprising and
overshot analyst expectations, as
bottlenecks in the Permian Basin
were expected to stunt produc-
tion for a longer period of time.
US President Donald Trump
has been vocal throughout the
oil price fluctuation, calling for
OPEC to keep oil prices low.
Russia, Iran and Venezuela had
little incentive to cut production,
and were seen as potential obsta-
cles to OPEC reaching a deal for
2019. Oil prices dropped to $58
per barrel of Brent crude before
the deal was announced, as me-
dia reported that Saudi Arabia’s
energy minister, Khalid Al Falih,
said the country would seek only
moderate cuts, and fear grew that
OPEC and its allies might not
reach a consensus.
Prices made a mild recovery
after the output cut was an-
nounced, but analyst expecta-
tions for 2019 vary—it is difficult
to tell where oil prices will go
from here.
13

Plot No S-50807, Jebel Ali, Telephone: +9714-8865119 Branch Office : Shree Oilfield Supply LLC
Free Zone (South), Fax : +9714-8865118 Global Ascent Business Center.
P.O. BOX 17729, Office No : 5, Block 2 - Unit 16, M4, Plot 12,
Email: sales@sso.ae | info@sso.ae
Dubai-United Arab Emirates www.shreesteeloverseas.com Near Musaffah Sanaiya - Abudhabi Uae
Tel : +9712-6214290, Fax : +9712-6214289
Branch Office : Steel Piping Solutions LLC
Emergency Mobile No: 00971 50 3752010 Muscat, Oman

oilandgasmiddleeast.com JANUARY 2019

 NEWS
REGION
AROUND THE GULF
Latest developments across the region
4 5
1 SAUDI ARABIA
14
Weatherford International
completed the sale of its Precision
Drilling Services Saudi Arabia
(“PDSSA”) land drilling operations
for $92.5mn in cash.
This is part of the company’s
$287.5mn deal with ADES Interna-
tional to sell land drilling rig opera-
tions in Algeria, Kuwait and Saudi
Arabia as well as two idle land rigs
in Iraq. This includes 31 land drilling
rigs, among other assets.
4 KUWAIT
Kuwait Petroleum Corporation
(KPC) has agreed to renew its
contract with Lebanon to supply
the country’s state electricity
company, Electricite du Liban,
according to Kuwait News Agency,
which cited an unnamed Kuwaiti
official. The country has supplied
Lebanon with gas oil since inking
a memorandum of understanding
in 2005 and will provide gas oil at
international market prices.
JANUARY 2019
6
2
1
2. BAHRAIN
“What is happening in the US in the
aftermath of the shale revolution
will also happen here,” Bahrain’s oil
minister said, referring to tight oil
reserves in the country. The shale
oil revolution has made available
lighter oil, which presents a fresh
set of challenges to the industry, he
said. Those challenges will come to
the region as major oil companies
have started moving towards
renewables.
5 OMAN
Oman inked $65mn exploration
deals with Occidental Oman (OO)
and Oman Oil company. OO will
invest a total $20mn into Block
51 across two phases, including
surveys as well as drilling five
wells. Oman Oil Company Explora-
tion and Production in a joint
venture with OO will invest $32mn
into Block 65 over two phases of
development including drilling nine
wells and conducting surveys.
3 its full value chain
3 UAE
The Abu Dhabi Government and
ADNOC awarded Wintershall
Holding a 10% stake in the Ghasha
ultra-sour gas mega-project. The
Ghasha concession consists of
Hail, Ghasha, Dalma and other
offshore sour gas fields, including
Nasr, SARB and Mubarraz. The
concession agreement has a term
of 40 years. Wintershall joins
Italy’s Eni (25% stake) as partners
with ADNOC in the project.
6 IRAQ
Weir Oil & Gas Dubai signed a
$4mn contract in Iraq with a
major IOC to provide workshop
services, machine shop services,
emergency manufacturing and
engineering support to assist the
organisation’s well operations.
The company said that deciding
factors included “positive past and
existing contract performance with
the international oil company” and
“local content,” among others.
ADNOC announces
blockchain platform for
The platform is expected to provide a faster
and more reliable system to replace lengthy,
manual processes
The Abu Dhabi National Oil Company (ADNOC)
collaborated with IBM to pilot a blockchain-
based automated system to integrate oil and gas
production across the full value chain. It provides
a secure platform to track, validate and execute
transactions from production to the end customer.
ADNOC expects this technology to reduce the
time it takes to execute transactions between
ADNOC’s operating companies and says it will
increase operational efficiency across its value
chain. It will also enable greater transparency.
“Blockchain is a game-changer,” said Abdul
Nasser Al Mughairbi, ADNOC’s digital unit man-
ager. “It will substantially reduce our operating
costs by eliminating time-consuming and labor-
intensive processes, strengthen the marketing
and trading of our products, and create long-term
sustainable value that will ensure that ADNOC
delivers on its 2030 smart growth strategy.”
The pilot developed a single platform to track
the quantities and financial values of each bilat-
eral transaction between ADNOC’s operating
companies, automating the accounting process.
For example, as crude oil makes its way from
the production well to the refinery, or the export
terminal, all quantities are accounted for on a daily
basis along with the associated monetary values.
Other products included in the blockchain ap-
plication are gas, condensates, natural gas liquids
and sulphur.
The company plans to eventually link the
platform to customers and investors. ADNOC
noted in a press release that “enhanced clarity and
transparency will reduce inherent business risks.”
oilandgasmiddleeast.com

PLAY/PAUSE:
EPC contractor Saipem suffered a
cyberattack in December, and US
media claim the attack targeted its
servers in the UAE and KSA. It said that
data back-ups are safe, but it could
take days to restore the compromised
network. The source of the attack is
still unknown, but it appears that the
data of Saipem’s clients, which include
Saudi Aramco and Duqm Refinery, are
safe. The company’s shares fell after
the attack, highlighting a difficult year
for the contractor, which had a net loss
of $409mn for the first nine months of
2018, according to Construction Week.
oilandgasmiddleeast.com
Who’s moving up in the oil and gas world this month,
and who’s falling away?
Honeywell research shows that
removable USB media devices such
as flash drives pose a significant
cybersecurity threat to a wide array of
industrial process control networks.
Data derived from Honeywell technol-
ogy used to scan and control USB
devices at 50 customer locations
showed that nearly half (44%)
detected and blocked at least one
file with a security issue. “The data
showed much more serious threats
than we expected,” said Eric Knapp,
director of strategic innovation,
Honeywell Industrial Cyber Security.
Baker Hughes, a GE company (BHGE)
has been awarded a major stimulation
and well-testing contract by Saudi
Aramco to be a partner in optimising
production from new and existing
wells across conventional fields in
KSA. BHGE will deliver a comprehen-
sive well services solution including
all cased-hole wireline logging,
perforation, well testing, stimulation,
fracturing and associated intervention
services. The three-year contract
includes the option of two one-year
extensions and the project is expected
to create more than 200 new jobs.
NEWS
King Salman Energy Park (SPARK),
a 50sqkm “energy city megaproject”
in Saudi Arabia, was inaugurated in
mid-December. Once operational,
it is expected to generate 100,000
direct and indirect jobs and should
contribute $6bn to Saudi Arabia’s GDP
annually. It aims to build up the coun-
try’s energy infrastructure and supply
chain. The first phase of development
($1.6bn) is slated for completion by
2021. One of the project’s initial part-
ners is Baker Hughes, a GE company,
which will build an oilfield services
facility in SPARK.
15
JANUARY 2019
 NEWS
Shell to set short-term climate change
goals tied to executive pay policy
While many oil and gas companies have set long-term goals, Shell is the first to link emissions
targets to executive pay
Shell had set long term emissions goals in the past
16
SUSTAINABILITY Shell will set short-
term climate change goals linked
to executive pay. It announced
its plans in a joint statement
with institutional investors on
behalf of Climate Action 100+,
an initiative led by investors with
more than $32trn in assets under
management.
“Meeting the challenge of
tackling climate change requires
unprecedented collaboration
and this is demonstrated by our
engagements with investors,”
said Shell CEO Ben van Beurden.
“We are taking important steps
towards turning our net carbon
footprint ambition into reality
by setting shorter-term targets.
This ambition positions the
company well for the future and
seeks to ensure we thrive as the
world works to meet the goals of
the Paris Agreement on climate
change.”
In 2017, Shell set the ambi-
tion to reduce the net carbon
JANUARY 2019
20% footprint of the energy products
it sells, expressed as a measure
reduction in carbon footprint
by 2035
of carbon intensity, taking into
account their full life-cycle emis-
sions. Shell aims to reduce the
net carbon footprint of its energy
products by around half by 2050,
and by around 20% by 2035, in
step with society’s drive to meet
the goals of the Paris Agreement.
Shell says it will set specific
net carbon footprint targets for
shorter periods, of three or five
years. Shell will set the target
each year, for the following three
or five-year period. The target
setting process will start from
2020 and will run to 2050.
Shell plans to link these targets
and other measures to its execu-
tive remuneration policy. The re-
vised remuneration policy will be
put to shareholders for approval
at the company’s annual general
meeting in 2020.
Shell will publish its progress
towards lowering the net carbon
footprint of its energy products
initially in the sustainability
report. In line with the recom-
mendations of the Task Force on
Climate-related Financial Dis-
closures (TCFD), Shell intends to
integrate this disclosure into its
annual report and Form 20-F as
appropriate. The company will
seek third-party assurance of the
reported net carbon footprint.
“We applaud the joint state-
ment by Shell and lead investors
for Climate Action 100+,” said
Anne Simpson, the inaugural
chair of the Climate Action 100+
Steering Committee and Direc-
tor of Board Governance and
Strategy at the California Public
Employees’ Retirement System
(CalPERS). “The commitment
by Shell to fully respond to the
engagement shows the value of
dialogue and global partnership
to deliver on the goals of the Paris
Agreement on climate change.
Shell is setting the pace, and we
look forward to other major com-
panies following its lead.”
“When it comes to meeting the
demands of the Paris Agreement
on climate change, we believe it is
necessary to strengthen partner-
ships between investors and their
investee companies to accelerate
progress towards reaching such
an ambitious common goal,”
Peter Ferket, chief investment
officer of Robeco. “This joint
statement is an example of such
a partnership. As institutional
investors in Shell we continue to
support Shell on its journey in
the energy transition, aiming for
other companies to follow suit.”
oilandgasmiddleeast.com
 NEWS

ADNOC to expand CO2 capture

ADNOC plans to capture 5mn tons of CO2 per year before 2030
EOR The Abu Dhabi National Oil
Company (ADNOC) will expand
the capture, storage and utilisa-
tion of carbon dioxide (CO2),
produced from either the Hab-
shan-Bab gas processing facilities
or the Shah gas plant. A decision
on which plant to capture the
CO2 from first will be taken in
2019. The project will not inter-
rupt ongoing production.
The additional CO2 capture
will reduce ADNOC’s carbon
footprint and liberate natural
gas, previously used for oil field
injection, for other more valuable
purposes, while simultaneously
addressing growing global de-
mand for oil by boosting recovery
from its maturing reservoirs.
The Shah plant, built and oper-
ated by a joint venture between
5MN ADNOC and Occidental Petrole-
um Corporation, processes about
tons of CO2 planned to be
captured annually by 2030 1.3bn standard cubic feet per day
from operations including
Habshan-Bab (pictured (scfd) of sour gas and associated
above) condensates. By 2025, modifica-
tions to the facility would enable
the gases to be captured as part of
the sulphur recovery process and
converted into CO2 for enhanced
oil recovery (EOR). Using CCUS
technology, more than 2.3mn
tons per annum (120mn scfd) of
CO2 will be captured and locked
away underground.
The Habshan and Bab complex
could capture 1.9mn tons per
year of CO2 (100mn scfd). It can
process up to 6.2bn scfd of asso-
ciated gas, the largest in the UAE
and one of the biggest in the Gulf.
“Not only does the technology
help address environmental con-
cerns by safely locking away CO2,
but it also enables valuable and
cleaner burning gas, previously
used to enhance oil recovery, to
be leveraged for other purposes,
including power generation,
desalination and industrial uses,”
Omar Al Suwaidi said.
ADNOC will capture CO2 from
its own operations to meet a six-
fold increase in the utilisation of
CO2 for EOR. It plans to capture
about 5mn tons of CO2 per year
before 2030. ADNOC has the
capacity at Al Reyadah to capture
800,000 tons of CO2 annually.
ADNOC was the first national oil
company to pilot CO2 injection
for EOR in 2009.
17

SAVE THE DATE

The Offshore Technology Conference
(OTC) is where energy professionals
meet to exchange ideas and opinions
to advance scientific and technical
knowledge for offshore resources and
environmental matters.

CELEBRATING 50 YEARS OF OTC OTC gives you access to leading-edge

technical information, the industry’s
largest equipment exhibition, and valuable
new professional contacts. Join us to
celebrate OTC’s 50th anniversary and
discover what innovations we can expect
over the next five decades.
For more information, visit us online at
go.otcnet.org/SaveTheDate

CELEBRATING
OF F S H O R E T E C H N O L O GY C O N F E R E N C E 2019 50 YEARS
6–9 May 2019 ///// Houston, Texas, USA ///// NRG Park 1969 – 2019
go.otcnet.org/SaveTheDate

oilandgasmiddleeast.com JANUARY 2019

 COVER STORY

Chris Dartnell, Schneider

Electric’s president of oil,
gas and petrochemicals,
talks about its work
on ADNOC’s Panorama
Command Centre, its
acquisition of a 60%
stake in Aveva, and the
technologies poised to
change the industry

18
THE DIGITAL
ENABLER
WORDS: CARLA SERTIN

A
bu Dhabi National Oil Com-
pany (ADNOC) comprises 14
integrated companies, more
than 3mn bpd of oil production
and 151 oil transportation and
support vessels. ADNOC Group
CEO Sultan Al Jaber wants it all
to be digitised. It is not a simple task—ADNOC’s
business spans from exploration and production
all the way to distribution, and sensors track
even the most minute assets throughout the en-
tire process—there are easily tens of thousands of
data points that need to be tracked and analysed
to optimise operations. That is where oilfield
services companies come in.
In November 2018, Schneider Electric finished
developing a single home for all of that data: The
Panorama Command Centre, which takes up an
entire floor in ADNOC’s headquarters. It cul-
JANUARY 2019
minates in a screen at 50 metres length, which
curves to fit seamlessly with the wall and covers
its height from floor to ceiling. It is an impres-
sive display.
“The Panorama Digital Command Centre
represents a single source of accurate and timely
data from across our entire value chain,” says
Abdul Nasser Al Mughairbi, senior vice presi-
dent of digital at ADNOC. “Streamlining and
visualising our entire operations and critical
business information on a single 50-metre video
wall in one secure facility puts big data at the
fingertips of our sharpest minds and enables us
“…PANORAMA GIVES [ADNOC]
A SINGLE, NATIONAL VIEW OF
THEIR OIL AND GAS ASSETS
AND PRODUCTION.”
oilandgasmiddleeast.com
 COVER STORY

19

oilandgasmiddleeast.com JANUARY 2019

 COVER STORY

ADNOC’s
to uncover and recommend new pathways to
Panorama optimise our assets and infrastructure, as well
Command as facilitate faster and more-informed decision-
Centre at its making.”
Abu Dhabi “Panorama gives ADNOC a single, national
headquarters
view of their oil and gas assets and production,”
says Chris Dartnell, president of oil, gas and pet-
Sultan Al Jaber, rochemicals business at Schneider Electric.
CEO of ADNOC Since Al Jaber took the helm of ADNOC in
Group, is look- 2016 as director-general and then CEO, he has
ing towards “oil
& gas 4.0”
heralded a shift in the company—and, arguably,
in the regional oil and gas industry—towards
digital technology. At Abu Dhabi International
Petroleum Exhibition and Conference (AD-
IPEC) in November 2018, he said that the oil
and gas industry would be a critical enabler of
economic growth in the fourth industrial age.
He called this mission “oil & gas 4.0.”
“We are at the cusp of a new age of oppor-
tunity for our industry—an era where digital
innovation is delivering unprecedented levels
of progress,” he said. “This era, knows as the
fourth industrial age, is creating a paradigm
shift in global growth and driving demand for
20 our products. Our industry must step up to en-
able this massive step change in global develop-
ment.”
The company set out ambitious plans in
November 2018, announcing that it would
increase oil production capacity to 4mn barrels
per day (bpd) by 2020, and 5mn bpd by 2030. company—ranked sixth on Oil & Gas Middle
ADNOC also hopes to leverage the nation’s gas East’s Top 30 Oilfield Services Companies 2018—
resources to transform it from net gas importer and a large team from the company spent three
to net gas exporter. For Al Jaber, technology is months developing the Panorama Command
a key enabler of this progress, and companies Centre.
like Schneider Electric help make that digital To create the Panorama Command Centre,
transformation a reality. “It’s interesting; oil and Schneider Electric connected around 70 existing
gas companies are not quite sure as to what the systems from ADNOC. “The foundation of our
answer is when it comes to digital transforma- digital transformation is our big data: harnessing
tion. But they know digital technology is the and streamlining the masses of data we gener-
way forward,” Dartnell says. “Digitisation here ate, in real time, from across our operations and
is driven from the top, quite often from the very from Abu Dhabi’s subsurface, and finding ways
top, so when the company CEO is looking at a to utilise that data to better understand our
longer horizon, he or she believe digitisation is operations and optimise our performance,” says
the next step.” Al Mughairbi.
Schneider Electric is a global oilfield services Dartnell notes that Schneider is not replicating
information, it simply “gathers data and allows
“STREAMLINING AND VISUALISING OUR EN- a single view from the wellhead through all the
TIRE OPERATIONS AND CRITICAL BUSINESS production to export.” He has been leading Sch-
neider Electric’s global oil, gas and petrochemi-
INFORMATION...PUTS BIG DATA AT THE cals business for two years, after a stint as its
FINGERTIPS OF OUR SHARPEST MINDS.” head of sales for automation solutions. He says

JANUARY 2019 oilandgasmiddleeast.com

 COVER STORY

the real value from this endeavour, like most data

analysis, is the insight that can be drawn from
the vast quantities of data amassed by ADNOC
throughout its daily operation. “They can get
their leadership in one room and look at solving
the bigger problems for ADNOC,” Dartnell says.
“They can look at every one of their compressors
in Abu Dhabi and see which is the best perform-
er and which is not performing well.”
He also notes that ADNOC leadership could
compare different plants, wellheads, or any
other assets in order to optimise operations. He
estimates that the company could save between
$100mn to $200mn because the Panorama Com-
mand Centre allows it to optimise operations.
“[ADNOC’s] operations are vast and varied,”
Al Mughairbi says. “The Panorama Command
Centre has given us unique visibility across these
operations and our businesses, and is enabling
us to be more agile and responsive, for example,
to production capacity, to customer needs, to
market dynamics.”
The Panorama Command Centre is powered
by Wonderware, an automation software sold
by Aveva, which allowed Schneider to take 21
data from ADNOC’s existing sensors and data
gathering systems, display it on the Command
Centre and verify that it is accurate compared
to the data source. In April 2018, Schneider
Electric bought a 60% stake in Aveva, with 40%
remaining on the British stock market, and Aveva
acquired Schneider’s software portfolio. Dartnell
says this was the latest of several key acquisi-
tions by the vendor—Schneider Electric acquired
Telvent, an IT solutions and information services
provider, in 2011, and in 2014 acquired Invensys,
which develops monitoring, control and automa-
tion tools.
“Aveva brings the leading technology around
design and Schneider brings the leading tech
around operations, so when they are integrated
we have a bold attempt at the digital twin,”
Dartnell says. Aveva’s strength lies in designing
engineering and industrial software, and Dartnell
believes this, in combination with Schneider’s
operations software portfolio, is the key to taking
digitalisation in the oil and gas industry a step
further.
Maintaining a digital track record throughout
an asset’s lifetime can simplify inspection and
maintenance. Digital twin models are in effect
a virtual counterpart to a real, physical asset,

oilandgasmiddleeast.com JANUARY 2019

 COVER STORY
22
also allows training and inspection to occur
v
A digital twin is
a virtual copy
remotely, in a totally safe environment. “The
digital twin can be used from conceptual design
of a physical
asset through to more than 20 years of operations,”
Dartnell says.
This level of data gathering and analysis is
a precursor to predictive analysis and mainte-
nance. Schneider Electric has a program for that
purpose, called Prism, which can predict if an
asset will fail in the future, on average between
10 to 15 days before asset failure. For operators,
this means less unscheduled downtime.
A November 2018 report by Lloyd’s Register
found that “57 of the world’s 100 largest oil and
gas firms are using, or have plans to use, predic-
tive analytics.” Companies including oil major
Total, chemicals giant BASF and Air Liquide
all use Prism. Because oil and gas operators
rely on networks of physical assets, reliability
is key, and reduced downtime saves money
for operators, and could flag potential hazards
onsite. Dartnell says that Schneider is working
with companies in the Middle East using this
technology for predictive maintenance. It sets
JANUARY 2019
“IN ANY REGION, THERE ARE
SOME COMPANIES THAT LEAD
AND SOME THAT FALL IN THE
MIDDLE OF THE PACK, BUT IN
THE MIDDLE EAST, WE’RE SEE-
ING SOME LEADING BEHAV-
IOUR.”
a baseline when assets are functioning normally,
and when it notices that key indicators are mov-
ing away from that baseline, it alerts operators
that the asset could be approaching failure.
“One way in which [ADNOC is] using [its]
data, is developing new tools that integrate all
of our critical equipment into the digital value
chain and leverage analysis of historical data
to develop predictive maintenance capabilities
to identify ahead of time maintenance require-
ments, understand the impact on other equip-
ment or areas of the value chain, and better
plan for and respond to those requirements,”
Al Mughairbi says. “This will not only have the
oilandgasmiddleeast.com
 COVER STORY

potential to significantly improve efficiencies but

Chris Dartnell, actually to revolutionise the way in which our
president of
operational production and supply chain works.”
oil, gas and
petrochemicals Dartnell says there is tremendous potential for
at Schneider this technology—these are the types of technolo-
Electric gies that marked his 30-year career, which has
mostly been spent in senior roles in automation
Many regional
and software, with companies like Honeywell.
operators are
looking to digi- A chemical engineer by training, he started his
tally optimise career at Mobil’s downstream business.
their operations But digital innovation comes with a frantic
pace of development—oilfield services compa-
nies have to keep up to provide relevant solutions
to operators. Dartnell’s software development
team consists of around 150 small teams of five to
12 people. They prototype and test new projects
in two-week cycles, continually learning and
improving in short bursts. “We use prototypes
to visualise complex functionality in advance of
actual programming to ensure we minimise re-
work,” Dartnell says. “We interact with strategic
customers throughout the development process
to ensure we get it right the first time.”
On a quarterly basis, projects are reviewed keep going in a slightly different direction.
and their future assessed. Dartnell notes that the It’s just much more agile.” In a growing field 23
traditional design procedure is far less flexible, where oil and gas companies are still finding
and would be a heavily structured, formal, an- their footing, agility is important. In more
nual process. “What we get with this is quicker mature segments of the market, like valves or
time to market, quicker time to customer engage- compressors, companies looking for a solution
ment,” Dartnell says. “We get that quick cus- typically know what they are looking for, give
tomer check in and then we change course and a service provider some specifications and ask
it to comply with those parameters. But when
many oil and gas decision-makers look at digi-
talisation, with the immense range of tech-
nologies it encompasses, they might not know
what is the right fit to solve their problems.
“This is the fourth industrial revolution of
oil and gas,” Dartnell says. “In this context,
companies are coming to us in a more consul-
tative way.” The approach is more collabora-
tive simply because oil and gas companies do
not always know what digital technologies
will provide them with the most benefit.
Dartnell says the Middle East is key, not
only because of its central position in the oil
and gas landscape, but because companies in
the region are quick to turn to new technol-
ogy.
“In any region, there are some companies
that lead and some that fall in the middle of
the pack, but in the Middle East, we’re seeing
some leading behaviour.”

oilandgasmiddleeast.com JANUARY 2019

 FROM THE DOWNSTREAM SECTOR
DIGITALLY FOR YOU

VISIT REFININGANDPETROCHEMICALSME.COM TODAY

AND SUBSCRIBE FOR THE LATEST INDUSTRY NEWS,
INSIGHTS AND ANALYSIS.

RefiningandPetrochemicalsME.com
A SPECIAL REPORT INTO A KEY SEGMENT OF THE REGIONAL UPSTREAM INDUSTRY

KNOWLEDGE
PARTNER
Rugged tablets safely bring
important tech into the
field /p30

LAST WORD
Can artificial intelligence be
trusted with safety-critical
operations? /p34

MARKET FOCUS
LOW OIL PRICES COULD
BE HURTING SAFETY
FOR UPSTREAM
COMPANIES

SPECIAL REPORT

HEALTH
& SAFETY
Oil & Gas Middle East analyses the effect of low oil prices on safety, how
rugged tablets help bring digital technology onsite and the importance
arabianoilandgas.com of taking a balanced approach to digitising safety-critical operations MAY 2018
 STRATEGIC PARTNER

26-28 FEBRUARY 2019

ST REGIS SAADIYAT ISLAND RESORT
ABU DHABI

The Premier Technical

Event for the Middle East
Downstream Sector

MINAR DAY
SE
HOSTED BY
ORGANISED BY

26
FEBR UAR SPEAKERS
Y

SPONSORED BY

Register now at www.me-tech.biz


COMMENT
EDITOR’S LETTER
HSE: A necessity, not a luxury
Operators cannot afford to forego health and safety measures, and should leverage in-
novative solutions
T
here is nothing more fundamen-
tal to the oil and gas sector than
health and safety. It is a wild world
onsite, and despite best efforts,
accidents do happen.
These incidents can be minimised by
operators that invest smartly into health &
safety clothing and equipment that serves
them, and their workers, well. Any risk to a
worker is a risk to the company as well, and
oil and gas operators would do well to take
into consideration what Oil & Gas Middle
East’s line-up of industry leaders have to
say on the subject.
This month’s Market Focus takes a look
at the oil price and how it has impacted
health and safety onsite; a recent survey by
Petrotechnics found that low oil prices have
hurt safety initiatives in large oil companies.
In lean times, industry executives must
make tough decisions on capital allocations,
but health and safety, while not directly
profit-bearing, must not fall by the wayside.
oilandgasmiddleeast.com
Meanwhile, at the forefront of many
industry conversations is digitalisation. But
what happens when digital technology is
at odds with safety? Innovation, of course.
Oil & Gas Middle East is pleased to have one
such innovator as our Knowledge Partner for
this report. Getac, which develops rugged
tablets for a range of applications including
oil and gas, demonstrates that operators
can find the balance between digitalisation
(essentially, increased productivity) and
safety.
There are so many gains to be made with
digital media, including remote monitoring
and inspection, constant connection and
up-to-date information in the field. Rugged
tablets stand out, however, because they
not only improve productivity and safety in
the ways that most upstream digital tech-
nology does, but they take away a hazard
with them; the risk of explosion or fire that
comes with regular tablet or mobile phone
use onsite.
DOWNLOAD OR UPDATE THE APP
NOW ON YOUR IOS DEVICE
WELCOME
But technology, however impressive, has
its limits, and our Last Word comes from
DNV GL, which asserts that while artificial
intelligence may be an important part of the
industry’s future, it might not be capable
of taking responsibility for safety critical
operations like those of an upstream site.
DNV GL offers some recommendations in
resolution of this issue, allowing operators
to leverage artificial intelligence without
having it take complete control.
It is not terribly difficult to understand;
health and safety risks hurt assets, opera-
tions, productivity, bottom lines, and, of 27
course, the vital workers who make oil and
gas extraction possible. To put it briefly: It’s
bad for business.
“Unscheduled downtime” is a phrase
that strikes fear into the hearts of indus-
try executives, but there are increasingly
ingenious ways to minimise this and create
operations that are safe, productive and
digitally enabled.
JANUARY 2019
 MARKET FOCUS

28

SAFETY:
A HIGH COST?
Petrotechnics found in its 2019 Operational Risk and Process Safety Management
Report that low oil prices impact health and safety measures in oil and gas
JANUARY 2019 oilandgasmiddleeast.com

Implementing health and
safety measures is a long-term
investment for operators
T
he oil and gas industry
leans heavily upon health
and safety regulations. Put
simply: Surrounded by a mix
of chemicals, with hazardous
equipment and some sensitive operations,
workers must be careful onsite.
Operators understand that in an
industry as inundated in hazards as oil and
gas, safety is key to keeping their company
running smoothly. There is no doubt that
that the upstream industry generally
takes health and safety very seriously—
the sheer number of safety regulations
oilandgasmiddleeast.com
and certifications for a simple piece of
equipment are quick proof of this.
But low oil prices put a strain on
every part of oil and gas companies’
operations, and that includes health and
safety, according to Petrotechnics’ 2018
Operational Risk and Process Safety
Management Report.
The report found that 72% of senior
industry leaders believe that the oil
price downturn has had a moderate or
significant effect on process safety risk.
The report notes that this is “characterised
by major job cuts, loss of corporate
memory, cost-cutting and overall belt-
tightening brought on by the downturn.”
However, 83 of the 100 senior industry
leaders surveyed said that safety is part
of their corporate value structure and is
supported by upper management—even up
to the level of company president or CEO.
Although safety may be part of the
corporate value structure at the majority
of oil and gas companies, in lean times
it can seem less essential than profit-
bearing activities which directly result in
the extraction of hydrocarbons, like drilling
equipment & services.
Although companies may tout safety
as an integral component of their value
structure, intention and values could be
splitting away from reality.
“With less budget and staff available,
firms are facing difficult decisions about
which tasks to complete and when,”
said Simon Jones, head of professional
services at Petrotechnics. “The risk
here is that maintenance and upkeep of
essential safety systems may get lost
in the budgetary squeeze, leaving firms
vulnerable.”
More than half of the respondents noted
safety-related projects as a source of
resource tension, leaving company leaders
with the difficult task of choosing between
safety procedures, which are important but
do not immediately bear fruit, and other
capital allocation.
Safety tasks can range in urgency and
scope, and regular maintenance can fall by
the wayside when budgets are squeezed.
Petrotechnics found that 75% of industry
MARKET FOCUS
leaders cited “conflicting priorities [as]
a top reason for shortfall in scheduled
maintenance completion.” Meanwhile, 72%
agreed it was due to limited resources,
and 40% said it was because of limited
budgets.
Additionally, companies may intend
to include safety procedures into their
operations thoroughly and with strong
effect, but there may be a widening gap
between intent and reality.
“In 2017, 70% of survey participants said
there were gaps between how process
safety was intended and what actually
happens at the plant or asset,” the report
noted. “In 2018, the number has risen to
86%. In addition, they suspect only 38%
are proactively managing process safety
risk.”
“While the majority of respondents agree
safety is integral to their corporate values,
there is clearly room for leadership teams
to do more to empower decision-making
throughout the organisation and enable
better risk management,” Jones added. 29
“Following a very tumultuous period for the
industry, this could do much to improve
safety culture.”
Respondents to the survey noted
‘developing a safety culture’ was the top
challenge to deliver effective process safety
management, followed by ‘training and
competency’ and ‘leadership support’.
It is at the top rungs that these difficult
decisions must be made, and besides the
importance of worker safety, operators
should bear in mind that the cost of asset
failure or a major accident is higher than
the cost of enacting safety procedures
beforehand.
“…THERE IS CLEARLY
ROOM FOR LEADER-
SHIP TEAMS TO DO
MORE TO EMPOWER
DECISION-MAKING
THROUGHOUT THE
ORGANISATION AND
ENABLE BETTER RISK
MANAGEMENT.”
JANUARY 2019
 KNOWLEDGE PARTNER

DIGITALISING
SAFELY
Safety concerns have made operators hesitate on the path to digitalisa-
tion, but innovative solutions like rugged tablets push forward to bring
digital technology, and increased productivity,, across zones
WORDS: CARLA SERTIN

D
igitalisation is a key focus for the regional oil and
gas industry. It was a central theme at this year’s
Abu Dhabi International Petroleum Exhibition and
Conference, where ADNOC Group CEO Sultan Al Jaber
hailed the start of “Oil and Gas 4.0,” as oil and gas
companies move towards digital transformation.
Digitalisation is a strategic move—A January 2017 report
30 by the World Economic Forum and Accenture found that
“digital transformation in the oil and gas industry could unlock
approximately $1.6tn of value for the industry, its customers and
wider society.”
But digital transformation is a long process, and presents a
unique set of obstacles. For the upstream segment, in which
employees often work in hazardous environments, safety is a key
concern. Digital technology can improve safety in many ways—for As oil and gas operators look to increase efficiency and
example, by allowing operators to leverage predictive analytics productivity at low costs, they cannot afford to remain in the era
so they can single out assets before failure—saving them from of pen and paper, and suppliers have responded to this need with
potential hazards and any costly downtime. But some technologies rugged tablets and notebooks.
are seen as more of a risk than an asset. “Rugged solutions mean that operators no longer have to choose
Some simple technology solutions used around the globe to between safety and productivity,” says C. L. Huang, senior director
optimise efficiency, like notebooks and tablets, can be a liability of the Internet of Things Research & Verification Centre at Getac.
for operators. Fires and explosions are the third most common “At this point, with the industry’s digital transformation in full
fatal hazard in the upstream sector, according to the American swing, operators should use every tool at their disposal to safely
Petroleum Institute. With flammable chemicals in the air, internal optimise their facilities and to enhance production. Early adopters
sparks in mobile phones and computers can trigger these events. will soon see the benefit.”
Even their surface temperature can present a hazard. These mobile solutions are safe for use in Zone 1, Zone 2 and in
However, these technologies could open operators to a series of non-hazardous zones. For operators, that means they can track
efficiency boosts by collating data, keeping employees connected their assets, communicate with peers and transfer information
and providing a medium for further digital transformation, including easily—for example, sending a photo of an asset back to the office.
augmented reality. It also inherently improves safety by giving workers access to safety
“Equipping workers with field-appropriate mobile devices that checklists, historical data and other important information onsite.
let them collect, share, and access information in the field helps Some tablets, like Getac’s EX80, are even safe for use in Zone 0,
companies better capture and retain critical operating knowledge which is “a place in which an explosive atmosphere is continuously
and also generate valuable business insights to reach new levels of present,” as defined by leading UK-based certification company CSA
efficiency and agility,” Intel wrote in a 2016 report. Group. The technology that makes that possible is a sealed anti-

JANUARY 2019 oilandgasmiddleeast.com


static exterior which prevents static electricity from building up on
the surface of the device, and also an intrinsically safe electrical
design that controls surface temperature.
“The EX80 brings digitalisation to workplaces that have had
to use pen and paper as the only safe way to collect data. We
combined temperature control, mechanical stress testing, fault
protection, silicone potting compound encapsulation, and a power
management system to provide intrinsic safety,” Huang says.
On work sites where a single spark could spell disaster, testing
and certification are rigorous for rugged tablets. For example, the
EX80 rugged tablet is ATEX and IECEx Zone 0 certified, which means
that two separate bodies have certified the technology’s safety to
international standards, and approve that it can limit the energy of
sparks and surface temperature, and keep flammable gas out.
But fires are not the only hazards. Salt fog, changing light
conditions, battery life, drops, spills and shocks are all concerns
for operators. With operations becoming increasingly merged with
digital technology, critical system functions may soon depend
upon the availability of technology like notebooks and tablets, so
reliability and durability are key.
“Besides ATEX and IECEx, our oil & gas solutions passed testing
oilandgasmiddleeast.com
KNOWLEDGE PARTNER
31
for MIL-STD-810G, which is often used to test military equipment,
and Ingress Protection (IP) testing,” says Huang. “The fully rugged
computers’ resistance to damage is very important on critical
missions where equipment failure is not an option.”
Some industry leaders, like oilfield services giant Halliburton,
have already incorporated rugged solutions into their workflow.
“Getac notebooks help to avoid field damage with sealed caps and
doors and protection against knocks and drops that can often
accidentally occur,” says Halliburton repair & maintenance manager
John Wilkins. “One of the main reasons we chose Getac notebooks
was because of their fully rugged features that came as standard. ”
With specialised tools available to minimise the risks of bringing
notebooks and tablets onsite, operators can reap the benefits of
digitalisation—instantly sharing relevant photos and videos, using
GPS for accurate location detection, or even using augmented
reality so that professionals can remotely solve issues in the field.
“...OPERATORS SHOULD USE EVERY
TOOL AT THEIR DISPOSAL TO SAFE-
LY OPTIMISE THEIR FACILITIES...”
-C.L. HUANG, GETAC
JANUARY 2019
 TECHNICAL FOCUS

BOLTING
UP
Hi-Force says comprehensive bolted joint
integrity programmes should be a priority
for oil and gas companies’ to ensure safe
operations

T
ypically, an oil, gas or petrochemical facility will
contain between 30,000 to 50,000 bolted joints, all
of which have the potential to leak and create a risk
to the plant, the environment and could even lead
to loss of life. Some leaks result in a minor, low risk
incidents, but others could lead to catastrophic loss of life and
assets, as well as major damage to the environment, within the
32 local proximity of the plant.
This can also easily escalate to the wider area, dependng on
the location of the plant, with inevitable damage to the reputation
of all involved. Any loss of life and asset is both regretted and
avoidable, and history has shown us that major catastrophes can,
and do, happen and the costs can run to millions and sometimes
billions of dollars.
Still, we use bolting technology because it makes the construction contractors suffer from conflict, with the pre-
construction process easier to manage, and because bolting commissioning and commissioning teams, as a result of leaks
components together provide the essential access required to from incorrectly assembled bolted joints during construction
carry out regular maintenance, or in the case of the failure of an phase and from incorrectly pre-assembled components, supplied
individual component, it can be dismantled and removed In order by third parties, that only come to light during pre-commissioning
that the failed component(s) can be repaired or replaced. and joint integrity pressure testing.
Pipelines and pressure vessels, which move and process Plant owners often apply severe penalties to EPC contractors
hydrocarbons, need to be regularly cleaned and maintained, and for late delivery of the plant, and delays are often due to rework
this process is usually carried out during a planned maintenance and rectification of leaking joints. The improvement in bolted joint
shutdown or outage. Clearly, planning is key to ensure that a clear integrity is one of the most significant areas requiring attention,
and defined work scope is prepared, including all of the necessary both on the site and at all levels of plant facilities management.
tooling and expertise required. So how can the whole process around “bolted joint integrity”
During construction and commissioning of new facilities, the be improved and implemented to help reduce the risks and costs
issue of correct “bolt up” of critical and non-critical joints is often related to loss of life, assets, environmental issues and project
an oversight during the construction contractor bidding phase, completion delay penalties?
which usually results in conflict between the plant owners, EPC All parties involved need to change their mindsets and buy
contractors and the construction sub-contractors. Arguments into the benefits of implementing the necessary policies and
arise over the responsibility for the cost and provision of the procedures required to deliver a comprehensive joint integrity
required bolting tools, and the necessary expertise, to carry out the programme, at their respective projects.
bolting work. This is particularly applicable to new-builds, but can also deliver
In many cases, due to a lack of available tools and expertise, significant time and cost savings during shutdown maintenance,

JANUARY 2019 oilandgasmiddleeast.com


provided everything is planned in advance. A “first time right”
mindset is key to the successful implementation of the entire
bolted joint integrity programme. Rework costs will always be
multiples of the original assembly costs, so surely a significant
reduction in rework is something everyone involved is keen to
achieve?
oilandgasmiddleeast.com
TECHNICAL FOCUS
As a major, UK headquartered manufacturer, Hi-Force, with
overseas regional offices in Holland, Italy, UAE, Saudi Arabia,
Azerbaijan, Malaysia and South Africa, has over thirty years of
experience in the design, manufacturing, operation and use of
manual, pneumatic and hydraulic bolting tools.
Hi-Force UK operates from a “state of the art” manufacturing
facility located in Daventry, England, which houses everything
from product design through to manufacturing, assembly, testing
and certification of an extensive range of bolting tools, as well as
many other types of high pressure hydraulic tooling.
Hi-Force also offers full after sales and service support through
all of its strategically placed regional offices and authorised and
trained distributors, in almost 100 countries worldwide. For many
years Hi-Force has also offered clients short and long term tool
rental, and in 2016 this service was formally extended to offer
complete on-site bolted joint integrity management during plant
construction and maintenance shutdown activities.
The Hi-Force On-Site Bolting Services Division, managed from
the Hi-Force UK Head Office, can now offer clients pre-start
on-site surveys, a full and comprehensive analysis of bolted joint
needs and requirements, development of correct procedures,
including all required bolted joint load calculations, on-site
supervision using ECITB qualified and trained supervisors, on-site
bolted joint integrity training courses for the nominated contractor
technicians, full flange management control, utilising the Hi-Force 33
BOLTRIGHT PRO calculation software and high quality, UK-
manufactured bolting tools.
“Our on-site Supervisors have all the necessary skills to
supervise the bolting work, carry out bolting work when necessary,
conduct high quality training courses at site and of course
carry out any required tool service and repair work,” says Group
Managing Director of Hi-Force Kevin Brown.
As part of the Hi-Force on-site bolting services offering,
the company is able to mobilise to site bespoke twenty foot
containers, fully equipped, as either a bolting tool store, or a
mobile on-site training facility, incorporating all the necessary
training equipment, to deliver bolting training courses, to the
highest possible standard.
“Hi-Force is always looking to expand its offering to clients
worldwide and this new venture has already delivered significant
results in recent months,” says Brown. “We currently have four
containers mobilised, two each to two different plant construction
sites and our clients are already seeing the benefit of employing
a specialist bolting services company to manage all of their joint
integrity needs at the site. A further two bespoke containers have
also recently been ordered.”
“The issue of purchasing of capital intensive bolting tools,
is no longer a requirement for the site, because we are offering
competitively priced tool rental, throughout the project, with our
own on-site tool service repair facilities, fully supported by readily
available spare parts, to ensure bolting work is continuously
carried out.”
JANUARY 2019
 SPECIAL REPORT – LAST WORD
ARTIFICIAL INTELLIGENCE, REAL HAZARD
Artificial intelligence is revolutionising the oil and gas sector, but DNV GL asks: Can
it be trusted to handle critical safety processes?
There is no doubt that artificial intelligence
(AI), data gathering and analytics have had
a large impact on the oil and gas sector,
from sensorising wells to enabling predictive
maintenance.
“As these autonomous and self-learning
systems become more and more responsible
for making decisions that may ultimately
affect the safety of personnel, assets, or the
environment, the need to ensure safe use of AI
in systems has become a top priority,” Simen
Eldevik, principal research scientist at DNV GL,
wrote in a paper on the topic.
The reason AI and machine learning tech-
nologies are so useful for the asset-intensive
operations of the upstream sector is that they
can automate and optimise processes, but
also, they can learn from experience and im-
34 prove with time. But that can also be a liability.
“AI and ML algorithms need relevant
observations to be able to predict the outcome
of future scenarios accurately, and thus, da-
ta-driven models alone may not be sufficient
to ensure safety as usually we do not have
exhaustive and fully relevant data,” Eldevik
notes. He is correct—operators very rarely,
if ever, have fully exhaustive data that could
eliminate all possible risks.
Automation and data analysis will have
a growing role in many industries, including
“many safety-critical or high-risk engineering
systems,” he says. But accidents will inevitably
happen.
“As an industry, we do not want to learn
only from observation of failures,” Eldevik
writes. He notes that it is imperative to
combine data-driven models with causal and
physic-based knowledge, so that operators
can learn from potential hasard scenarios
beforehand, rather than learning from them
after they have occurred.
DNV GL outlines a few key
recommendations:
“We need to utilise data for empirical robust-
ness. High-consequence and low-probability
JANUARY 2019
xxxxxxxx
scenarios are not well captured by data-driv-
en models alone, as such data are normally
scarce. However, the empirical knowledge
that we might gain from all the data we
collect is substantial. If we can establish
which parts of the data-generating process
(DGP)are stochastic in nature, and which are
deterministic (e.g., governed by known first
principles), then stochastic elements can
be utilised for other relevant scenarios to in-
crease robustness with respect to empirically
observed variations.
We need to utilise causal and phys-
ics-based knowledge for extrapolation
robustness. If the deterministic part of a DGP
is well known, or some physical constraints
can be applied, this can be utilised to
extrapolate well beyond the limits of existing
observational data with more confidence. For
high-consequence scenarios, where no, or
little, data exist, we may be able to create the
necessary data based on our knowledge of
causality and physics.
We need to combine data-driven and
causal models to enable real-time decisions.
For a high-consequence system, a model
used to inform risk-based decisions needs
to predict potentially catastrophic scenarios
prior to these scenarios actually unfolding.
However, results from a complex computer
simulations or empirical experiments are not
usually possible to obtain in real-time. Most
of these complex models have a significant
number of inputs, and, because of the
curse-of-dimensionality, it is not feasible to
calculate/simulate all potential situations
that a real system might experience prior to
its operation. Thus, to enable the use of these
complex models in a real-time setting, it may
be necessary to use surrogate models (fast
approximations of the full model). ML is a
useful tool for creating these fast-running
surrogate models, based on a finite number
of realisations of a complex simulator or
empirical tests.
A risk measure should be included when
developing data-driven models. For high-risk
systems, it is essential that the objective
function utilised in the optimisation process
incorporates a risk measure. This should
penalise erroneous predictions, where the
consequence of an erroneous prediction is
serious, such that the analyst (either human
or AI) understands that operation within
this region is associated with considerable
risk. This risk measure can also be utilised
for adaptive exploration of the response of a
safety-critical system.
Uncertainty should be assessed with
rigour. As uncertainty is essential for as-
sessing risk, methods that include rigorous
treatment of uncertainty are preferred.”
oilandgasmiddleeast.com
 PEOPLE

Kreuz Subsea appoints industry

veteran to its board
Knut Eriksen is the board’s first independent non-executive director

G
lobal integrated subsea services
business, Kreuz Subsea, has an-
nounced the appointment of Knut
Eriksen as the board’s first inde-
pendent non-executive director.
Eriksen, who took up the advisory
position on Friday, 1 December 2018,
will support the business on a strategic
level and help to identify future growth
opportunities.
He has a wealth of experience, having
worked for more than 35 years in the
oil and gas sector around the world. In
addition to having managed operations,
he has delivered organisational
transformation strategies which have
supported business operations in 35
Indonesia, Brazil, Japan, UK, Norway and
North America.
For the past two decades Eriksen
has held senior management roles,
including president of engineering at
Aker Maritime and senior VP roles at
Oceaneering International and NATCO
Group, focusing on operations and
business development. Additionally, he internationally,” said AJ Jain, Chief Executive Officer at Kreuz Subsea.
has held the position of VP – worldwide “His broad range of skills and expertise will be of significant benefit to the
deepwater development at Unocal management as we look to implement strategies in the regions which are
Corporation. key to our continued growth. The company has never been in a stronger
Eriksen has also been instrumental in position, and we look forward to working together.”
driving core values, HSE initiatives and In the past 12 months, Kreuz Subsea has completed the reorganisation
establishing joint ventures for global phase of its executive team and secured a steady pipeline of projects into
businesses. 2019 across the Asia Pacific region. This includes the previously announced
“The board and management team seven-year award with Brunei Shell Petroleum, and a five-vessel contract
looks forward to Eriksen’s contributions with Larson & Toubro to support pipeline campaigns in the Mumbai High
based on his in-depth industry and Daman field operated by Oil & Natural Gas Corporation (ONGC) off
knowledge, strategic and operational the west coast of India.
orientation and business development “Kreuz Subsea has a growing track record for its workforce delivering
track record and network,” said Marcus reliable, quality and safe operations from its versatile fleet of assets,”
Thompson, chair of the Kreuz Subsea Eriksen said. “It is making all the right moves in the subsea sector as it
board. looks to expand its services in new regions including the Middle East and
“Knut Eriksen is highly regarded Africa. I look forward to working closely with AJ Jain, his executive team
in the subsea sector for his success in and the board as it continues on its mission to deliver exceptional results
driving and delivering tangible results and fulfil its true potential in new markets in the years ahead.”

oilandgasmiddleeast.com JANUARY 2019

 PEOPLE

Timothy Cutt appointed as Karl Johnson Appointment

CEO of QEP resources Interim CEO

of the
Month
US-based QEP Resources’ board has named Timothy Cutt as the PetroNeft
company’s new president and chief executive officer, effective as of

A
January 15, 2019. Cutt will also serve as a member of the company’s fter PetroNeft
board. CEO and founder
Cutt brings to the role 35 years of experience in the oil and Dennis Francis
gas industry; from ExxonMobil, where he served as president of announced that he
ExxonMobil de Venezuela SA and as the president of Hibernia would retire from his
Management and Development Company, to BHP Billiton Ltd., position, Karl Johnson,
where he served as the president of Petroleum from July 2013 then vice-president of
through February 2016 and was accountable for its global oil and gas operations at the Dublin-based company, was
business, including the company’s interests in the Permian Basin. named interim CEO. Francis will continue to
Most recently, he served as the CEO at Cobalt International Energy, act as a nonexecutive director and will consult
Inc. the company to assist with some operations.
“Tim has a history of providing exceptional leadership under a Johnson joined PetroNeft in 2010 and has 30
variety of circumstances,” said QEP director David Trice, “and he is years of experience in the petroleum industry.
the ideal candidate to succeed Chuck,” he added, referring to outgoing He worked with Marathon for more than
CEO Charles Stanley. “The board is confident in Tim’s ability to take 27 years, starting as a reservoir/production
the helm and lead the Company forward. His character and experience engineer. He has led several key projects
are exactly what QEP needs at this pivotal time in its evolution.” throught his career.

36
Atkins announces new Saudi Arabia
country director
International project manager Rick Hancock to spearhead next phase of Atkins’ growth
in the Kingdom of Saudi Arabia

A
tkins, a design, engineering and project management
consultancy and a member of the SNC-Lavalin Group,
announced that Rick Hancock has joined its design &
engineering business as country director for the Kingdom of
Saudi Arabia.
Rick has a long history in international property, develop-
ment and project management in Australia, Europe, South East
Asia and the Middle East, latterly based in the UAE with Cum-
ming Corporation, the project management and cost consulting
firm, and previously with Faithful+Gould following its acquisi-
tion of Confluence in 2013. management.
“I am delighted to be heading up Atkins’ design and en- Atkins is also committed to growing its presence in the coun-
gineering operations in Saudi Arabia,” Hancock said. “The try, so that it can both learn from and share knowledge with
company has a long and proud history of working on some of Saudi citizens and develop a long-term partnership based on
the country’s most iconic projects, and this gives us the cred- mutual trust and respect, as well as on an ambition to deliver
ibility and knowledge to play a significant role in building its projects to the very high standards. Atkins has worked on a
exciting future.” number of capacity building programs in the country aimed
Atkins is involved in multiple projects in Saudi Arabia, and at developing and enhancing local talent, including a chapter
has 40 years of experience in oil and gas, including field devel- of its MEA region wide, networking and inclusion group for
opment, onshore and offshore engineering and asset integrity its female employees.

JANUARY 2019 oilandgasmiddleeast.com

 PRODUCTS & SERVICES

Mobile training simulator gets oil and gas industry

seal of approval for well control
Drilling Systems’ mobile simulator received IWCF approval for Level 3 and 4 well control

Drilling Systems’ mobile On-The-Rig receive one of the highest-quality,

(OTR) simulator has been accredited
by the International Well Control Fo-
rum (IWCF) for well control training.
The mobile OTR simulator, which
enables rig crew training to take
place onsite at the rig itself, received
industry approval for Level 3 and 4
well control from the IWCF following
months of development by Drilling
Systems and leading oil and gas uni-
versity, Robert Gordon.
IWCF is one of the global independ-
ent bodies which sets international
training standards for well control
accreditation. Having IWCF accredi-
tation means delegates using the OTR
industry-approved training qualifica-
tions in internationally-recognised
well control standards.
Drilling Systems worked with
Robert Gordon University (RGU) over
several months to develop the market-
leading product, adding features such
as a separate choke control panel and “Achieving IWCF accreditation for
ensuring the software complies with our OTR mobile simulator is a glow-
the IWCF’s requirements. ing endorsement of the quality of the
The OTR can be used to train well product and the training it provides,”
control crews onsite, providing a cost said Clive Battisby, COO at Drilling
effective and immediate method of Systems. “Well control students at
training and assuring competency. It RGU will now be able to benefit from
allows operators to upskill their crew industry-approved training and assess-
without missing work. ment using the OTR simulator.”
37

1 BREATHING AIR
(FOR FIREFIGHTING & H2S PROTECTION)

3 N2 GENERATION
(HIGH VOLUME)
2 HIGH PRESSURE COMPRESSION
(FOR MOTION COMPENSATION & RIG TENSIONING)

5 N2 GENERATION
(FOR COIL TUBING)

4 N2 GENERATION
DEDICATED FOR BOP

SNGII®
N2 COMPRESSOR & BOOSTER SYSTEM
› DEDICATED FOR BOP
› IMPROVED SAFETY
› TURN-KEY SOLUTIONS www.bauer-kompressoren.de
BAUER KOMPRESSOREN GCC FZE, P.O. Box 261413, Unit # AF07, Jebel Ali Free Zone, Dubai, UAE, Phone +971-4-886 0259, Fax +971-4-886 0260

oilandgasmiddleeast.com JANUARY 2019

 PRODUCTS & SERVICES
HONEYWELL RELEASES CLOUD-BASED
REMOTE MONITORING SYSTEM FOR
THERMAL PROCESSES
Honeywell Connected Plant Thermal IQ enables plant managers to
make smarter and safer operating decisions to maximise uptime
PRODUCTS Honeywell’s Connected Plant Thermal IQ, a cloud-
based remote monitoring system designed to monitor and
38 manage critical thermal process data, is now available to
customers in the EMEA region. This cybersecure offering is
part of Honeywell’s asset performance management (APM)
portfolio to improve asset performance, which ultimately
increases plant uptime.
Thermal IQ is a remote monitoring solution for industrial
and commercial thermal applications. It securely connects
combustion equipment to the cloud, making critical thermal
process data available in real time on any smart device. It es-
sentially allows the right people to get the right information at
the right time.
With Thermal IQ, maintenance engineers and plant manag-
ers can more effectively monitor and manage their thermal
process equipment, minimising unplanned downtime and
maximising uptime.
“Combustion equipment represents some of the most criti-
cal technology that can drastically impact plant uptime, not
to mention overall plant safety,” said Steve Kenny, general
manager EMEA, Honeywell Thermal Solutions. “Thermal IQ
was designed to give operators greater insight into how that
equipment is performing and lead to better asset performance,
which is a key outcome of Honeywell Connected Plant.”
Honeywell Connected Plant is a suite of applications that
seeks to optimise operations and increase safety. They are digi-
tal and data-based, and are intended to turn data into action-
able insight. Essentially, they would allow operators to predict
plant failures and minimise any downtime, which could be
costly.
JANUARY 2019
THREE REASONS
TO BUY
Rotork’s CMA range expands for improved control valve
automation
1 VERSATILITY
The new actuator has a maximum 4,500 lbf (20
kN) seating thrust. New sizes increase CMA range
modulating thrust performance to 3,000 lbf (13 kN) with a
114.3 mm (4.5”) stroke length to automate larger valves with
higher pressure ratings. The CMA and larger CVA ranges mean
Rotork’s electrical control valve actuation tech can be applied
to process control applications of almost any description.
2 ROBUST DURABILITY
CMAs are robust enough to handle extreme tempera-
ture swings, corrosive environments and are available
for explosion-proof areas. The CML-1500 and CML-3000
models, including those with hazardous area approvals, are
watertight to IP68 for temporary submersion (7 metres, 72
hours). The optional Reserve Power Pack (RPP) uses superca-
pacitors to provide the actuator with enough stored energy to
perform predetermined action on mains power failure.
3 LOW POWER CONSUMPTION
The CMA is a low power consumption solution (less
than 1 Watt at standby) for automation in established
or remote installations such as oil installations and offshore
facilities where there are pneumatic limitations. The design al-
lows for solar powered and battery back-up supplies in remote
locations where electric energy consumption is a concern and
power is often provided through solar collection for the opera-
tion of remote automated critical systems such as wellheads.
oilandgasmiddleeast.com
 PRODUCTS & SERVICES

Saudi Aramco & Raytheon to ALSO IN STOCK

form cybersecurity JV
The joint venture company will provide defensive cybersecurity software

PORTABLE POWER G400WCU-

T4F MOBILE GENERATOR

Doosan Portable Power’s new

mobile generator is the most powerful
yet in Doosan’s line. It boasts a prime
power rating of 402kVA (322 kW). It
is powered by a Tier 4-Final Cummins
QSG12, 513-horsepower diesel engine,
and the power-dense G400 delivers
reliable performance with class-leading
motor-starting capability. The light-
weight package and compact footprint
allows for easier transport and requires
less premium space on the jobsite.
39

DIGITAL Saudi Aramco and Raytheon Company, through its subsidiary Raytheon Saudi
Arabia, signed a memorandum of understanding to establish a joint venture company
that will develop and provide cybersecurity services in Saudi Arabia and the region.
The joint venture company will market and provide integrated defensive cybersecurity KRAL FLOWMETERS
software and hardware capabilities, and perform research and development activities.
The JV will increase the cybersecurity protections available to Saudi Aramco, its Packers Plus announced a
suppliers, customers and affiliates. It will also help build cyber capabilities in Saudi successful completion using the
Arabia and the region, which . QuickFRAC multi-stage completion sys-
“We are excited about the joint venture, which will support the Kingdom’s Vision tem for an operator in the Middle East.
2030 by creating highly skilled jobs for Saudis in the cybersecurity sector and will The configuration of this QuickFRAC
support the foundation for Saudi Arabia’s economic development,” said Saudi Aramco system, a combination of ball-activated
Senior Vice President of Finance, Strategy & Development Khalid H. Al-Dabbagh. limited entry QuickPORT V sleeves, dual
“Demand for cybersecurity services is expected to grow as companies move further element RockSEAL H2 packers and single
into the digital space and embrace technologies such as Internet of Things and big element swellable packers, included a
data,” he added. “The partnership with Raytheon will help strengthen cybersecurity total of 19 entry points spread across 7
and enhance its infrastructure in Saudi Arabia and the broader region.” stages. Analysis after the stimulation
This follows last week’s cyberattack on Saipem, which provides EPC services on showed more than 20 fractures had been
some Saudi Aramco projects. No data was stolen in the attack. The oil and gas industry initiated. Compared to four offset wells,
is one of the most vulnerable to cyberattacks, according to several studies. the QuickFRAC well achieved the highest
“Cybersecurity is critical to national and global security,” said Dave Wajsgras, presi- initial production among the wells.
dent of Raytheon Intelligence, Information and Services. “This MoU is an important Initial production data showed this well
step in creating a joint venture that we see becoming the cornerstone of cybersecurity achieved 32% to 76% higher production
defenses in the region.” compared to the offset wells.

oilandgasmiddleeast.com JANUARY 2019

 KSA FOCUS

SPARKING
INTEREST
King Salman Energy Park provides a centralised area
for the country’s localisation efforts to boost its
energy infrastructure and supply chain

40

K
ing Salman Energy Park (SPARK), a
SPARK was 50sqkm “energy city megaproject”
inaugurated in in Saudi Arabia, was inaugurated
December
in December 2018 and is one of the
Kingdom’s most impressive endeav-
ours into localisation so far.
Once operational, it is expected to
generate 100,000 direct and indirect jobs and should
contribute $6bn to Saudi Arabia’s GDP annually.
The first phase of development is slated for com- BHGE plans to open the first phase of the
pletion by 2021, and will require an investment of facility at the end of 2019, and will reach full
around $1.6bn. One of the project’s initial partners capacity by 2021 or 2022.
is Baker Hughes, a GE company (BHGE), which will It will be an operational and service sup-
build an oilfield services facility in SPARK. port facility and distribution centre with train-
BHGE will build a state-of-the-art oilfield services ing capabilities. The company noted in a press
facility in King Salman Energy Park. The facility release that this facility would contribute to
will support ongoing customer activities for drilling the In-Kingdom Total Value Add (IKTVA)
services, wireline services and pressure pumping. localisation program “through partnerships
“This new facility will help build a new ecosystem with local suppliers and other businesses.”
for oilfield services within SPARK and support our “Developing in-Kingdom competencies
commitments to invest in innovation, supply chain that will strengthen the pillars of Saudi Vision
growth and training of new talent,” said Lorenzo 2030 and support a robust oil and energy sup-
Simonelli, chairman and CEO of BHGE. ply chain is a top priority for Saudi

JANUARY 2019 oilandgasmiddleeast.com

 KSA FOCUS

“WE ARE BUILDING A WORLD-

CLASS ENERGY HUB THAT
WILL ACCELERATE SOLUTIONS
ACROSS THE VALUE CHAIN FOR
GENERATIONS.”
Aramco,” said Mohammed Y. Al Qahtani, senior
vice president of upstream at Saudi Aramco. “We
encourage investments in localised infrastructure
that will support our operational processes and
also contribute to in-Kingdom total value crea-
tion.
“BHGE’s new oilfield services facility is a signifi-
cant step in this direction, which not only meets
our operational needs but will also contribute to
the larger Saudi economy through exports and
job creation,” he added.
SPARK will have a comprehensive ecosystem
with world-class infrastructure, logistics and
a dry port, shared services, a commercial and
residential area and highly specialised training
centers.
The park essentially centralises localisation, 41
and aims to build up the country’s energy infra-
structure and supply chain. Saudi Aramco is key,
and the company’s CEO Amin Nasser noted in a
press release announcing the groundbreaking of
the project that “Saudi Aramco continue[s] to be
at the heart of the global oil and gas industry.”
Nasser also said that with SPARK’s anchor
partners, “we are building a world-class energy
hub that will accelerate solutions across the
value-chain for generations.”
Indeed, the energy titan is a key motivation for
suppliers to manufacture their products in Saudi
Arabia; if suppliers and service providers want to
do business with Saudi Aramco, they must abide
Saudi Crown
Prince by the In-Kingdom Total Value Add (IKTVA)
Mohammed bin localisation program.
Salman attended “SPARK is one of the country’s most ambitious
the inauguration projects, affirming the Kingdom’s commitment
to Vision 2030 by creating thousands of high-
Saudi Energy
Minister Khalid skilled jobs, serving as an economic catalyst and
Al-Falih is a key advancing Saudi Arabia’s strong position in the
figure behind the global energy sector,” said Khalid Al-Falih, Saudi
localisation push Arabia’s minister of energy, industry and min-
eral resources. “The energy park’s unique value
proposition makes it an ideal destination for
companies looking to invest in the thriving Saudi
Arabian energy services market.”

oilandgasmiddleeast.com JANUARY 2019

 PROJECT FOCUS

Masirah Bay
Offshore Budget:
$250mn
Block 50 ex-
ploration
C
overing an area of 16,903 square kilome-
tres, Block 50 is made up of a large body
of water surrounding Masirah Island in
the Arabian Sea. The previous operator of Block
50, Hunt Oil, had conducted a lot of seismic
work and drilled wells that yielded some hydro-
carbon shows.

FAST FACTS
Name of Client
Masirah Oil
42 Estimated Budget ($ US)
250,000,000 PROJECT SCHEDULE
Facility Type Last Updated
EPC 1Q-2011
Exploration 07-10-2018
Sector PMC Completed 1Q-2020
Oil Masirah Oil
Status Hibiscus Petroleum
PROJECT SCOPE
Construction Main Contractor
Location Masirah Oil Commitments during the exploration phases
Masirah Basin Contract Value ($ US) include:
Project Start 250,000,000 • The reprocessing of old seismic data
Q1-2011 Award Date • Acquisition of 2D and 3D seismic data
End Date Q1-2011 • Processing of satellite gravity data
Q1-2020 • Drilling of exploration wells

Contract Type Pre-Qualified (incomplete) Bidders Awarded

• Masirah Oil
PMC - -
• Hibiscus Petroleum

EPC - - • Masirah Oil

FEED - -

• Dolphin Geophysical
• Aban Offshore
Sub-Contractors - -
• REX
• G&G Advisors

JANUARY 2019 oilandgasmiddleeast.com


PROJECT FINANCE
The partnership of Rex Oil & Gas Limited, Petroci Holding, and
the national oil company of Côte d’Ivoire won the exploration
licence for Block 50. The Rex Oil-Petroci Holding joint venture
plans to invest around $26mn in the first two phases of explora-
tion activities.
28 May 2012 - Lime BVI holds a 74% equity interest in Masirah,
with the remaining 26% being held by Petroci.
2 December 2013 - Masirah Oil Ltd (MOL) is the operator and
100% owner of the Block 50. The shareholders of MOL are:
• Lime Petroleum - 64%
• Ivory Coast - 36%
35% of Lime Petroleum is owned by Hibiscus Petroleum Berhad.
18 November 2015 - Rex Oman Ltd subscribes to 5,760 of 9,000
new shares in MOL as capital injection into the 64% owned
subsidiary of Lime Petroleum. The remaining new shares are
subscribed by Petroci in proportion to its 36% equity interest in
MOL. The capital injection is necessary to allow MOL to pursue
its drilling activities and continue its operations in Oman.
18 March 2016 - Pursuant to the completion of the capital injec-
tion, shares of Masirah Oil Limited are divided as follows:
• Rex Oman - 69.06%
• Lime - 4.57%
• Petroci - 26.37%
7 Jan 2016 - Masirah Oil Limited received $8mn cash infusion
from Rex Oman following a subscription of new shares of MOL.
Oct 2018 - Rex International and its subsidiaries hold a 92.65%
indirect stake in Masirah Oil.
Rex International had planned to farm out a larger interest in
the concession to reduce holding risks, but is now considering
maintaining a high equity stake in the block following encourag-
ing results of the feasibility study. It will instead look for non-
dilutive financing options to help fund oil production costs.
PROJECT STATUS
Date Status
Following the completion of the feasibility study, which further
07 Oct 2018 validated earlier studies, Masira Oil plans to achieve production in
the second half of 2019.
A development programme is focused on the GA South#1
discovery, which uncovered evidence of an active petroleum
18 Dec 2017
system. Evaluation of the development programme will run until
Q1-2018.
oilandgasmiddleeast.com
PROJECT FOCUS
To finance the appraisal well drilling, Rex is in negotiations to farm
18 Dec 2017
out a percentage of Block 50.
The jackup Aban VII completes drilling of Karamah#1 well with
01 Jun 2017
proof of a working petroleum system.
MOL start the drilling of exploration well Karamah-1 to explore
19 Mar 2017 multiple target horizons of the Early Tertiary and Late Cretaceous
formations.
MOL discovers hydrocarbons in Manarah-1 well, which was drilled
03 May 2016 to a depth of 3km. MOL analyses results and discusses a time
extension with the Ministry of Oil and Gas to plan follow-up wells.
Aban Offshore is the drilling contractor for Manarah-1. The well is
29 Feb 2016
being drilled using Aban VII.
MOL starts drilling exploration well Manarah-1. It will be drilled to
a depth of over 3km and will explore multiple targets in the central
29 Feb 2016
part of the Masirah basin. MOL plans to drill three wells in the
concession.
Rex concentrates on assets in Block 50, where it is confident of
24 Aug 2015 the concession's potential. Rex is expected to have an eventual
stake of 30% in the concession after declaration of commerciality. 43
Masirah Oil starts a 3D seismic survey of Block 50 offshore. It will
04 Dec 2014 be undertaken by Dolphin Geophysical ASA with its vessel, Artemis
Arctic, and should be completed in 45 days.
This is the first offshore oil discovery in the east of Oman after 30
06 Mar 2014
years of exploration activities.
Test flow rates at the second exploration well show evidence of
hydrocarbon presence. During a 48-hour test, hydrocarbons
06 Mar 2014
flowed to the surface and the well achieved light oil flow rate of
3,000 stb/d.
Masirah Oil Ltd announced the start of a drilling campaign
02 Dec 2013 targeting prospects internally estimated at around 160 million
barrels in prospective resources.
A drilling rig has been contracted for the drilling of an exploratory
02 Dec 2013 well targeting the Masirah North 1 prospect. This will be followed
by the drilling of a second well targeting the North East 1 prospect.
Masirah Oil Limited has awarded a contract to Aban 7 Pte Ltd to
19 Aug 2013
undertake a drilling program in the Block 50 concession off Oman.
The government of Oman and a partnership of Rex Oil & Gas
and Petroci Holding sign an exploration and production sharing
28 Feb 2011
agreement (EPSA) to unearth the hydrocarbon potential of Block
50.
JANUARY 2019
 PROJECTS

Ongoing and upcoming projects

Information is supplied by DMS Projects
GCC GAS – DECEMBER 2018
Completion
Project Country City/ Region Facility Budget Status
Date
ADMA-OPCO - SARB Offshore Oil Field Development - Package 2 U.A.E. Abu Dhabi Oil & Gas Field 500,000,000 Construction 2019-Q1

ADNOC - LNG Import Terminal U.A.E. Abu Dhabi LNG Storage Tanks 1,000,000,000 Feasibility Study 2020-Q3

ADNOC Gas Processing - Bab Sour Gas Field Development U.A.E. Abu Dhabi Gas Processing 10,000,000,000 On Hold 2024-Q4

Adnoc Gas Processing - HP Connection- New NGV Filling Stations (Phase 2A) U.A.E. Abu Dhabi Gas Pipeline 10,000,000,000 On Hold 2024-Q1

ADNOC Gas Processing - Thammama F Early Nitrogen Rejection Unit U.A.E. Abu Dhabi Gas Processing 500,000,000 On Hold 2025-Q4

ADNOC Gas Processing - Yas - Mina Zayed Gas Pipeline U.A.E. Abu Dhabi Gas Processing 45,000,000 Construction 2019-Q1

ADNOC Gas Processing- Asab 1- Control System Upgrade U.A.E. Abu Dhabi Distributed Control System 55,000,000 Construction 2023-Q1
(DCS)

ADNOC Gas Processing- Habshan 4- CO2 Recovery & Injection U.A.E. Abu Dhabi Carbon Dioxide 80,000,000 EPC ITB 2022-Q1

ADNOC Gas Processing- Habshan 5 - New Compression Facility U.A.E. Abu Dhabi Gas Processing 800,000,000 On Hold 2023-Q4

ADNOC Gas Processing- Integrated Gas Development (IGD) - Expansion (Onshore

Pipeline) U.A.E. Abu Dhabi Gas Production 7,100,000,000 Commissioning 2019-Q1

ADNOC Gas Processing- Ruwais - Train 1 & 2 Process Cooling Fire Water Pumps
U.A.E. Abu Dhabi Gas Processing 80,000,000 Construction 2022-Q2
Replacement
44 ADNOC LNG- Integrated Gas Development (IGD) - Expansion (Overview) U.A.E. Abu Dhabi Gas Field Development 1,570,000,000 Construction 2019-Q3

ADNOC LNG- Integrated Gas Development (IGD) - Expansion (Phase 2) U.A.E. Abu Dhabi Gas Field Development 450,000,000 Engineering & Procurement 2020-Q1

ADNOC Offshore - Nasr Full Field Development - (Overview) U.A.E. Abu Dhabi Oil Field Development 1,700,000,000 Construction 2018-Q4

ADNOC Offshore - Upper Zakum Full Field Development - 750 Project - Surface Facilities U.A.E. Abu Dhabi Oil Production 4,200,000,000 Construction 2020-Q4
- EPC 2

ADNOC Offshore- 750 West Region- Capacity Expansion & Sulphate Reduction Plant-
EPC 3 U.A.E. Abu Dhabi Oil & Gas Field 300,000,000 Construction 2019-Q2

ADNOC Offshore- Nitrogen Plant Upgrade U.A.E. Abu Dhabi Nitrogen 55,000,000 On Hold 2025-Q4

ADNOC Onshore- Bab Gas Compression Phase 3 U.A.E. Abu Dhabi Gas Compression 270,000,000 EPC ITB 2022-Q4

ADNOC Onshore- Bab TH-F Peripheral Development U.A.E. Abu Dhabi Nitrogen 400,000,000 On Hold 2020-Q4

ADNOC Sour Gas- Shah Field- Expansion U.A.E. Abu Dhabi Gas Network 11,000,000,000 Construction 2022-Q4

Bahrain LNG - Liquefied Natural Gas Receiving and Regasification Terminal Bahrain Hidd Liquefied Natural Gas (LNG) 660,000,000 Construction 2019-Q1

Banagas - Central Gas Plant Expansion Bahrain Sitra Gas Treatment Plant 600,000,000 Commissioning 2018-Q4

Bapco - Offshore Blocks Exploration Bahrain Various Exploration 80,000,000 Engineering & Procurement 2022-Q1

BNGEC - Fuel Pipelines And Storage Facilities Expansion Bahrain Sitra Gas Storage Tanks 80,000,000 Construction 2019-Q1

BP - Block 61 - Ghazeer Field Development Oman Al Dahirah Gas Field Development 5,000,000,000 Engineering & Procurement 2021-Q2

BP - Block 61 - Khazzan and Makarem Gas Fields Development Oman Al Dahirah Gas Field Development 24,000,000,000 Construction 2022-Q1

BP - Block 61 - Khazzan Gas Fields Development - Phase 1 - Overview Oman Al Dahirah Gas Field Development 15,000,000,000 Construction 2017-Q4

BP - Block 61 - Khazzan Gas Fields Development - Phase 1 - Package 1 Oman Al Dahirah Gas Field Development 1,500,000,000 Construction 2018-Q4

BP - Block 61 - Khazzan Gas Fields Development - Phase 1 - Package 2 Oman Al Dahirah Gas Field Development 130,000,000 Construction 2017-Q3

Dolphin Energy - Northern Emirate Pipeline (NEP) U.A.E. Sharjah Gas Pipeline 150,000,000 EPC ITB 2022-Q3

JANUARY 2019 oilandgasmiddleeast.com

 PROJECTS

Completion
Project Country City/ Region Facility Budget Status
Date
Emirates LNG - Fujairah LNG U.A.E. Fujairah Liquefied Natural Gas (LNG) 3,000,000,000 On Hold 2024-Q4

KIPIC - Al Zour LNG Import And Regasification Terminal Kuwait Al Zour Liquefied Natural Gas (LNG) 3,330,000,000 Construction 2020-Q3

KNPC - Mina Al Ahmadi Refinery Fifth Gas Train Kuwait Mina Al Ahmadi Gas Processing 1,500,000,000 Construction 2019-Q3

KOC - Jurassic Production Facility (JPF) - JPF-4 and JPF-5 Kuwait Northern Kuwait Oil & Gas Field 700,000,000 FEED 2020-Q2

KOC - New Strategic Gas Export Pipeline From North Kuwait To Mina Al-Ahmadi Refinery Kuwait Northern Kuwait Gas 480,000,000 EPC ITB 2021-Q1

KOC - North Kuwait Gathering Center (GC) 24 Upgrade Kuwait Northern Kuwait Gas Gathering Centre 150,000,000 On Hold 2019-Q1

KOC - North Kuwait Gathering Center (GC) 32 Kuwait Northern Kuwait Gas Gathering Centre 1,650,000,000 Construction 2020-Q4

KOC - North Kuwait Manifold Gathering System for Gathering Centers (GC) 29, 30, 31 Kuwait Northern Kuwait Gas Gathering Centre 2,500,000,000 Construction 2019-Q1

KOC - South East Kuwait BS-160 Upgrade Kuwait Southeast Kuwait Gas Processing 270,000,000 FEED 2021-Q1

KOC - West Kuwait BS-171 Gas Sweetening Facility Kuwait West Kuwait Gas Treatment Plant 300,000,000 EPC ITB 2021-Q1

MOG - Block 43b Onshore Exploration and Production Oman Northern Oman Gas Exploration 40,000,000 On Hold 2023-Q3

MOG - Block 65 Onshore Exploration and Production Oman Northern Oman Gas Exploration 40,000,000 EPC ITB 2022-Q2

NOC - Al Shaheen Offshore Field Development Plan Qatar Qatar Oil & Gas Field 500,000,000 Engineering & Procurement 2022-Q3

NOGA - Gazprom - Liquefied Natural Gas (LNG) Distribution Centre Bahrain Various Liquefied Natural Gas (LNG) 600,000,000 Feasibility Study 2020-Q1

Oman Gas Company - Muscat Gas Network Oman Muscat Gas Network 100,000,000 On Hold 2025-Q4

Oman LNG - Qalhat LNG Expansion Oman Qalhat Liquefied Natural Gas (LNG) 100,000,000 Engineering & Procurement 2021-Q2
45
OOCEP - Block 8 Oil & Gas Field Development Oman West Bukha Gas Field 45,000,000 Construction 2022-Q4

Orpic - Liwa Plastics Industries Complex - NGL Extraction Units Oman Sohar Natural Gas Liquefaction 700,000,000 Construction 2019-Q1
(NGL)

Orpic - Nitrogen Gas Plant Oman Sohar Nitrogen 50,000,000 Construction 2019-Q1

Oryx GTL - Expansion of Gas To Liquids Plant Qatar Ras Laffan Gas to Liquids (GTL) 1,500,000,000 Feasibility Study 2020-Q4

PDO - Flare Gas to Power Schemes Oman Adam Ad Dakhliya Gas Recycling 60,000,000 Project Announced 2021-Q4

PDO - Kauther Depletion Compression Phase 2 (KDC2) Oman Al Dakhiliya Gas Compression 190,000,000 Construction 2018-Q3

PDO - Khulud Tight Gas Development Project (KLD) Oman Al Wusta Gas Field Development 300,000,000 Construction 2019-Q1

PDO - Rabab-Harweel Integrated Plant (RHIP) - Overview Oman Harweel Gas Processing 3,000,000,000 Construction 2019-Q2

PDO - Saih Nahaydah Depletion Compression Phase-2 (SNDC2) Oman Saih Nihayda Gas Compression 180,000,000 Construction 2018-Q3

PDO - Saih Nihayda Condensate Stabilization Plant Oman Saih Nihayda Gas Treatment Plant 115,000,000 Construction 2018-Q1

PDO - SRCPP & SNGP Condensate Recovery Maximisation Oman Saih Nihayda Gas Processing 300,000,000 Commissioning 2018-Q2

PDO - Tayseer Gas Field Development - Early Development Facilities (EDF) Oman Adam Ad Dakhliya Gas Field 600,000,000 Commissioning 2018-Q4

PDO - Yibal Rejuvenation Oman Yibal Gas Production 500,000,000 Engineering & Procurement 2020-Q2

Port of Duqm Company - Floating Storage Regasification Unit (FSRU) Oman Duqm LNG Regassification 500,000,000 Feasibility Study 2021-Q3

Qatargas - Helium 3 Production Plant Qatar Ras Laffan Helium 600,000,000 Construction 2019-Q2

Qatargas - North Field Expansion Project - Offshore Facilities Qatar North Field Liquefied Natural Gas (LNG) 3,000,000,000 EPC ITB 2023-Q4

Qatargas - North Field Expansion Project - Onshore Facilities Qatar North Field Gas Field Development 27,600,000,000 FEED 2023-Q4

Qatargas - Qatar Barzan Gas Field Development Project - Offshore - Phase 2 Qatar North Field Gas Field Development 700,000,000 Engineering & Procurement 2019-Q4

Qatargas - Qatar Barzan Gas Field Development Project - Offshore - Phase 3 Qatar North Field Gas Field Development 300,000,000 Engineering & Procurement 2023-Q4

oilandgasmiddleeast.com JANUARY 2019

 PROJECTS

Completion
Project Country City / Region Facility Budget Status
Date

Qatargas - Qatar Barzan Gas Field Development Project - Onshore - Phase 2 Qatar North Field Gas Field Development 2,000,000,000 Feasibility Study 2019-Q4

Qatargas - Qatar Barzan Gas Field Development Project - Overview Qatar North Field Gas Field Development 10,300,000,000 Construction 2023-Q4

QP - Vapour Recovery System at Multi Product Berth Qatar Mesaieed Gas Processing 50,000,000 On Hold 2019-Q2

SABIC - NIGC - Jubail - GAS Phase 9 Saudi Arabia Jubail Gas Production 900,000,000 Engineering & Procurement 2019-Q4

Salalah Liquefied Petroleum Gas (SLPG) - Salalah LPG Extraction Oman Salalah Liquefied Petroleum Gas
(LPG) 650,000,000 Construction 2020-Q1

Saudi Aramco - Arabiyah and Hasbah Gas Field Development Saudi Arabia Arabiyah Gas Field 3,000,000,000 Construction 2019-Q1

Saudi Aramco - Fadhili Gas Plant (Overview) Saudi Arabia Eastern Region Gas Treatment Plant 6,600,000,000 Construction 2019-Q3

Saudi Aramco - Fadhili Gas Plant - Downstream Packages Saudi Arabia Eastern Region Gas Processing 650,000,000 Commissioning 2019-Q3

Saudi Aramco - Fadhili Gas Plant - Industrial Support Facilities (FISF) Saudi Arabia Eastern Region Gas Treatment Plant 100,000,000 Construction 2019-Q3

Saudi Aramco - Fadhili Gas Plant - Main Processing Facilities (Package 1) Saudi Arabia Eastern Region Gas Treatment Plant 2,500,000,000 Construction 2019-Q3

Saudi Aramco - Fadhili Gas Plant - Offsites & Utilities (Package 3) Saudi Arabia Eastern Region Gas Field 2,000,000,000 Construction 2019-Q3

Saudi Aramco - Fadhili Gas Plant - Sulphur Recovery Unit SRU (Package 2) Saudi Arabia Eastern Region Gas Treatment Plant 2,500,000,000 Construction 2019-Q3

Saudi Aramco - Haradh Gas Increment Program (Overview) Saudi Arabia Haradh Gas Compression 1,200,000,000 Construction 2021-Q2

Saudi Aramco - Haradh Gas Increment Program - Freeflow Pipelines Saudi Arabia Haradh Flowlines 470,000,000 Construction 2019-Q1

Saudi Aramco - Haradh Gas Increment Program - North Haradh Field Gas Compression
Facilities Saudi Arabia Haradh Gas Compression 1,200,000,000 Engineering & Procurement 2020-Q1

Saudi Aramco - Haradh Gas Increment Program - South Haradh Field Gas Compression
Facilities Saudi Arabia Haradh Flowlines 1,200,000,000 Engineering & Procurement 2020-Q1

46 Saudi Aramco - Haradh Gas Increment Program - Satellite Gas Compression Facilities Saudi Arabia Haradh Gas Compression 1,200,000,000 Construction 2021-Q2

Saudi Aramco - Hasbah Field Increment II Saudi Arabia Hasbah Gas Field 1,600,000,000 Construction 2019-Q2

Saudi Aramco - Hawiyah Gas Plant Expansion Saudi Arabia Hawiyah Gas Processing 1,200,000,000 Engineering & Procurement 2021-Q2

Saudi Aramco - Juaymah - Enhanced LPG Piping Network Saudi Arabia Juaymah Gas Pipeline 100,000,000 Engineering & Procurement 2019-Q4

Saudi Aramco - Liquefied Gas Station For Shedgum & Uthmaniya Gas Plants Saudi Arabia Various Natural Gas Liquefaction 74,000,000 Construction 2018-Q3
(NGL)

Saudi Aramco - Liquefied Natural Gas (LNG) Receiving Terminal Saudi Arabia Jeddah Liquefied Natural Gas (LNG) 1,000,000,000 Feasibility Study

Saudi Aramco - Marjan, Berri, Zuluf and Safaniyah IV Expansion - (Overview) Saudi Arabia Various Oil & Gas Field 7,000,000,000 Construction 2022-Q1

Saudi Aramco - Master Gas System Expansion (MGSE) (Overview) Saudi Arabia Various Natural Gas Liquefaction
(NGL) 4,050,000,000 Construction 2019-Q3

Saudi Aramco - Tanjib Gas Processing Plant - Marjan Increment Saudi Arabia Eastern Region Gas Processing 1,200,000,000 EPC ITB 2022-Q4

Saudi Aramco - Unconventional Gas Program - Shale Gas Production Saudi Arabia Various Shale Gas 7,000,000,000 Engineering & Procurement 2022-Q4

Saudi Aramco - Unconventional Gas Program - Tight Gas Production Systems A Saudi Arabia Turaif Gas Field Development 200,000,000 Construction 2020-Q4

Saudi Aramco - Unconventional Gas Program - Tight Gas Production Systems A and B
(Overview) Saudi Arabia Turaif Gas Field Development 3,500,000,000 Construction 2022-Q4

Saudi Aramco - Unconventional Gas Program - Tight Gas Production Systems B Saudi Arabia Turaif Gas Field Development 800,000,000 Construction 2022-Q4

Saudi Aramco - Uthmaniya Gas Treatment Units Saudi Arabia Uthmaniyah Gas Network 800,000,000 Construction 2019-Q4

Saudi Aramco - Yanbu - Storage Tanks and Associated Equipment Saudi Arabia Yanbu Gas Storage Tanks 270,000,000 Engineering & Procurement 2021-Q2

Shell - Pearl GTL Scheme - Onshore & Offshore Facilities Qatar Qatar Natural Gas Liquefaction
(NGL) 2,000,000,000 Construction 2019-Q3

SNOC- Sharjah LNG Terminal U.A.E. Sharjah Liquefied Natural Gas (LNG) 200,000,000 EPC ITB 2023-Q1

Socar Aurora Fujairah Terminal - Fujairah Oil Storage Terminal - Phase 3 U.A.E. Fujairah Oil Storage Tanks 100,000,000 On Hold 2023-Q4

Tatweer - NAG Long Term Field Development (LTFD) - Phase 2 Bahrain Awali Gas Processing 100,000,000 EPC ITB 2021-Q4

JANUARY 2019 oilandgasmiddleeast.com

 PROJECTS

GCC OIL – DECEMBER 2018

Completion
Project Country City/ Region Facility Budget Status
Date
ADMA-OPCO - SARB Offshore Oil Field Development - Package 2 U.A.E. Abu Dhabi Oil & Gas Field 500,000,000 Construction 2019-Q1

ADNOC & EMARAT - Fujairah Terminal Expansion Phase 3 U.A.E. Fujairah Oil Storage Tanks 40,000,000 On Hold 2020-Q1

ADNOC - Haliba Oil Field U.A.E. Abu Dhabi Oil Field Development 500,000,000 Construction 2022-Q4

ADNOC - Ruwais Complex Upgrade - New Refinery U.A.E. Abu Dhabi Refinery 45,000,000,000 FEED ITB 2023-Q1

ADNOC Distribution - Bateen Executive Airport- Jet Fuel Depot U.A.E. Abu Dhabi Oil Storage Tanks 80,000,000 Construction 2019-Q4

ADNOC Gas Processing - Yas - Mina Zayed Gas Pipeline U.A.E. Abu Dhabi Gas Processing 45,000,000 Construction 2019-Q1

ADNOC Gas Processing- Integrated Gas Development (IGD) - Expansion (Onshore U.A.E. Abu Dhabi Gas Production 7,100,000,000 Commissioning 2019-Q1
Pipeline)

ADNOC Offshore - Lower Zakum - Oil Lines Replacement (Phase 1) U.A.E. Abu Dhabi Pipeline 850,000,000 Construction 2018-Q4

ADNOC Offshore - Nasr Full Field Development - (Overview) U.A.E. Abu Dhabi Oil Field Development 1,700,000,000 Construction 2018-Q4

ADNOC Offshore - Nasr Full Field Development - Phase 2 (Package 2 - Platforms) U.A.E. Abu Dhabi Oil Field Development 195,000,000 Construction 2018-Q4

ADNOC Offshore - Nasr Full Field Development - Phase 2 (Package 3) U.A.E. Abu Dhabi Oil Field Development 200,000,000 Construction 2018-Q2

ADNOC Offshore - Umm Al Lulu Field Development - (Overview) U.A.E. Abu Dhabi Oil Field Development 2,500,000,000 Construction 2019-Q1

ADNOC Offshore - Umm Al Lulu Field Development - Package 2 U.A.E. Abu Dhabi Oil Field Development 170,000,000 Construction 2019-Q1

ADNOC Offshore - Umm Shaif Infield Pipelines Replacement U.A.E. Abu Dhabi Oil Field Development 500,000,000 EPC ITB 2021-Q4

ADNOC Offshore - Upper Zakum Full Field Development - 750 Project - Surface Facilities U.A.E. Abu Dhabi Oil Production 4,200,000,000 Construction 2020-Q4
- EPC 2

ADNOC Offshore - Zirku Facilities Capacity Enhancement U.A.E. Abu Dhabi Oil Field Development 400,000,000 Engineering & Procurement 2020-Q4
47
ADNOC Offshore- 750 West Region- Capacity Expansion & Sulphate Reduction Plant- U.A.E. Abu Dhabi Oil & Gas Field 300,000,000 Construction 2019-Q2
EPC 3

ADNOC Offshore- Nasr Full Field Development - Phase 2 (Package 1 - Wellheads and U.A.E. Abu Dhabi Oil Field Development 900,000,000 Construction 2018-Q4
Pipeline)

ADNOC Onshore - Buhasa Integrated Facilities Project U.A.E. Abu Dhabi Oil Production 3,000,000,000 Engineering & Procurement 2024-Q1

ADNOC Onshore - Mender Field Development U.A.E. Abu Dhabi Oil Field Development 350,000,000 Construction 2019-Q3

ADNOC Onshore - North East Bab (NEB) - (Al Dabbiya) ASR U.A.E. Abu Dhabi Oil Production 2,500,000,000 EPC ITB 2020-Q4

ADNOC Onshore - North East Bab (NEB) - Phase 3 (Al Dabbiya) U.A.E. Abu Dhabi Oil Production 2,300,000,000 Construction 2019-Q4

ADNOC Onshore- Bab Integrated Facilities Project U.A.E. Abu Dhabi Oil Field Development 2,000,000,000 Construction 2019-Q4

ADNOC Onshore- Bab TH-F Peripheral Development U.A.E. Abu Dhabi Nitrogen 400,000,000 On Hold 2020-Q4

ADNOC Onshore- Buhasa- Wellhead Automation U.A.E. Abu Dhabi Oil Field Development 100,000,000 FEED 2023-Q3

ADNOC Onshore- Fujairah MOT - Hydraulic Pressure Recovery System Turbine U.A.E. Fujairah Oil Field Development 800,000,000 On Hold 2023-Q1

ADNOC Onshore- Qusahwira Field Development - Phase 2 U.A.E. Abu Dhabi Oil Field Development 550,000,000 Construction 2020-Q3

ADNOC Onshore- Rumaitha, Shanayel and Northeast Bab Tie In U.A.E. Abu Dhabi Oil Field Development 350,000,000 EPC ITB 2024-Q3

ADNOC Onshore- South East Asset- Tie-in Project (A,B, C & D) U.A.E. Abu Dhabi Oil Field Development 650,000,000 Engineering & Procurement 2024-Q4

ADNOC Refining- Ruwais- LPG Recovery U.A.E. Abu Dhabi Crude Oil Distillation Unit 40,000,000 EPC ITB 2022-Q1

ADNOC Sour Gas - Dalma Field U.A.E. Abu Dhabi Oil Field Development 800,000,000 FEED 2023-Q4

ADNOC Sour Gas- Hail and Ghasha Megaproject U.A.E. Abu Dhabi Oil & Gas Field 15,000,000,000 FEED 2025-Q1

ADNOC- Bu Haseer Field U.A.E. Abu Dhabi Pipeline 155,000,000 Construction 2019-Q1

ADNOC- Bu Haseer Field Development Package 2 & 3 U.A.E. Abu Dhabi Oil Field Development 300,000,000 Engineering & Procurement 2025-Q4

ADNOC- Fujairah- Mandous Field U.A.E. Fujairah Oil Storage Tanks 2,200,000,000 Construction 2023-Q4

oilandgasmiddleeast.com JANUARY 2019

 PROJECTS

Completion
Project Country City / Region Facility Budget Status
Date
ADOC - Mubarraz Field Expansion U.A.E. Abu Dhabi Oil Field Development 500,000,000 FEED 2024-Q4

ADPC - Fujairah Port Expansion - Container Terminal U.A.E. Fujairah Oil Storage Terminal 60,000,000 EPC ITB 2021-Q1

ADPC - Fujairah Port Expansion-Overview U.A.E. Fujairah Oil Storage Terminal 180,000,000 EPC ITB 2021-Q1

Al-Yasat Petroleum Operations Company- Belbazem Oil Field U.A.E. Abu Dhabi Oil Field Development 1,000,000,000 FEED ITB 2023-Q1

Aramco - Aindar and Fazran Oil Fields - Sulphate Removal Facilities Saudi Arabia Eastern Region Waste Management PMC 2020-Q3

Aramco - Berri - Gas-Oil Separation Plant Expansion Saudi Arabia Berri GOSP 1,700,000,000 FEED 2022-Q1

Aramco - Manifa Oilfield Upgrade Saudi Arabia Manifa Oil Field Development 500,000,000 Construction 2019-Q1

Bapco - Offshore Blocks Exploration Bahrain Various Exploration 80,000,000 Engineering & Procurement 2022-Q1

BGPIC- Fujairah Oil Terminal- Phase 2 U.A.E. Fujairah Oil Storage Terminal 200,000,000 Construction 2020-Q4

BJFCO - Bahrain International Airport Modernization Program - New Aviation Fuel Farm Bahrain Muharraq Airport 200,000,000 Construction 2019-Q4
& Fuel Hydrant

DRPIC - Duqm Refinery & Petrochemical Complex - Duqm Refinery - Main Process Units Oman Duqm Refinery 4,000,000,000 Engineering & Procurement 2022-Q3

DRPIC - Duqm Refinery & Petrochemical Complex - Duqm Refinery - Offsites and Utilities Oman Duqm Refinery 2,000,000,000 Engineering & Procurement 2022-Q3

DRPIC - Duqm Refinery & Petrochemical Complex - Duqm Refinery - Overview Oman Duqm Refinery 7,700,000,000 Engineering & Procurement 2022-Q3

DRPIC - Duqm Refinery & Petrochemical Complex - Duqm Refinery - Package 3 Oman Duqm Oil Storage Terminal 800,000,000 Engineering & Procurement 2022-Q3

Duqm Development Company - Duqm Frontier Town Oman Duqm Residential Development 120,000,000 Project Announced 2020-Q2

Duqm Petroleum Terminal Company - Duqm Liquid Jetty (IP7) Oman Duqm Oil Storage Terminal 600,000,000 Construction 2019-Q4

Florexx International Investments - Biofuels Refinery Oman Sohar Biofuels 800,000,000 FEED 2021-Q2

Fujairah Oil Terminal (FOT) - Fujairah Oil Terminal Modifications U.A.E. Fujairah Oil Storage Tanks 200,000,000 On Hold 2020-Q1
48 Gulf Petrochem - Oil Storage Terminal Facility at Fujairah - Phase 2 U.A.E. Fujairah Oil Storage Tanks 300,000,000 On Hold 2025-Q1

Hydrocarbon Finder - Block 7 Onshore Exploration and Production Oman Al Wusta Exploration 160,000,000 Construction 2019-Q1

IL&FS Prime Terminals FZC- Fujairah Oil Terminals- Phase 2 U.A.E. Fujairah Oil Storage Terminal 80,000,000 EPC ITB 2022-Q2

KNPC - Ahmadi Depot Expansion Kuwait Ahmadi Oil Storage Tanks 250,000,000 Construction 2018-Q4

KNPC - Discharge Of Treated Effluent In MAA & MAB Refineries Kuwait Various Pipeline 100,000,000 On Hold 2018-Q4

KNPC - New Local Marketing Depot At Matlaa Area Kuwait Northern Kuwait Oil Storage Tanks 1,320,000,000 FEED 2021-Q1

KOC - Exxon Mobil Corporation - Ratqa Lower Fars Heavy Oil Handling Facilities - Drilling Kuwait Jahra Oil Field Development 500,000,000 Construction 2018-Q4
Package

KOC - Installation Of New Desalter Train At GC-9, GC-10, GC-19 & GS-21 Kuwait Various Crude Oil Distillation Unit 250,000,000 EPC ITB 2020-Q4

KOC - Jurassic Production Facilities Off-Plot Works Kuwait Northern Kuwait Oil Field Development 300,000,000 Engineering & Procurement 2019-Q2

KOC - Jurassic Production Facility (JPF) - JPF-4 and JPF-5 Kuwait Northern Kuwait Oil & Gas Field 700,000,000 FEED 2020-Q2

KOC - Kuwait Bay Exploration Kuwait Various Exploration EPC ITB 2020-Q1

KOC - New 48'' Crude Transit Line From North Kuwait To CMM (TL-5) Kuwait Northern Kuwait Pipeline 270,000,000 Engineering & Procurement 2019-Q3

KOC - Ratqa Lower Fars Heavy Oil Development - Phase 1 Kuwait Northern Kuwait Steam Injection 4,300,000,000 Construction 2019-Q2

KOC - Wara Pressure Maintenance Project - Train 3 Kuwait Southeast Kuwait Oil Field Development 500,000,000 Construction 2020-Q4

Masirah Oil Ltd - Block 50 (Masirah Bay Offshore) - Exploration Oman Masirah Basin Exploration 250,000,000 Construction 2020-Q1

Medco Arabia - Block 56 Onshore Exploration and Production Oman Adam Ad Dakhliya Exploration 20,000,000 Engineering & Procurement 2020-Q4

MOG - Block 18 Offshore Exploration and Production Oman Batinah Exploration 30,000,000 On Hold 2021-Q1

MOG - Block 43A Offshore Exploration and Production Oman Adam Ad Dakhliya Exploration 30,000,000 On Hold 2020-Q4

MOG - Block 43b Onshore Exploration and Production Oman Northern Oman Gas Exploration 40,000,000 On Hold 2023-Q3

MOG - Block 47 Onshore Exploration and Production Oman Northern Oman Exploration 40,000,000 EPC ITB 2022-Q2

MOG - Block 51 Onshore Exploration and Production Oman Northern Oman Exploration 30,000,000 EPC ITB 2022-Q2

MOG - Block 57 Onshore Exploration and Production Oman Dhofar Exploration 3,000,000 Engineering & Procurement 2022-Q1

MOG - Block 58 Onshore Exploration and Production Oman Dhofar Exploration 25,000,000 On Hold 2023-Q3

JANUARY 2019 oilandgasmiddleeast.com

 PROJECTS

Completion
Project Country City / Region Facility Budget Status
Date
MOG - Block 59 Offshore Exploration and Production Oman Al Sharqiya Exploration 30,000,000 On Hold 2021-Q4

MOG - Block 65 Onshore Exploration and Production Oman Northern Oman Gas Exploration 40,000,000 EPC ITB 2022-Q2

NOC - Al Shaheen Offshore Field Development Plan Qatar Qatar Oil & Gas Field 500,000,000 Engineering & Procurement 2022-Q3

Oman Lasso Exploration and Production Karwan - Block 54 Onshore Exploration and Oman Al Wusta Exploration 50,000,000 Engineering & Procurement 2020-Q3
Production

OOCEP - Block 48 Onshore Exploration and Production (Malih Block) Oman Al Dahirah Exploration 30,000,000 Engineering & Procurement 2021-Q1

OOCEP - Block 60 Concession - Onshore Oman Oman Oil & Gas Field 1,100,000,000 Construction 2020-Q4

Orpic - Flare Gas Recovery System Oman Sohar Refinery 40,000,000 On Hold 2020-Q1

OTTCO - Ras Markaz Crude Oil Park Oman Duqm Oil Storage Terminal 400,000,000 Engineering & Procurement 2021-Q3

OXY - Expansion of Idd el-Shargi North Dome (ISND Phase-5) Qatar North Dome Oil Field 780,000,000 EPC ITB 2020-Q4

PDO - Amal Steam Phase 1C Surface Facilities Oman Amal Oilfield Enhanced Oil Recovery (EOR) 80,000,000 Commissioning 2018-Q3

PDO - Amal Steam Phase 1C-2 Oman Amal Oilfield Oil Field Development 500,000,000 EPC ITB 2024-Q1

PDO - Lekhwair DME Pilot Project Oman Lekhwair Enhanced Oil Recovery (EOR) 25,000,000 On Hold 2018-Q4

PDO - Marmul Polymer Phase 3 (MPP3) Oman Marmul Oil Field Development 270,000,000 Engineering & Procurement 2021-Q1

PDO - Yibal Khuff Sudair Field Development Oman Northern Oman Oil Field Development 3,000,000,000 Construction 2022-Q1

Petrogas Kahil - Block 55 Onshore Exploration and Production Oman Al Wusta Exploration 45,000,000 Construction 2019-Q1

Port of Fujairah - Dibba Port U.A.E. Sharjah Oil Storage Terminal 100,000,000 Feasibility Study 2021-Q1

QP - Bul Hanine Redevelopment (Offshore) Qatar Bul Hanine Oil Field Development 11,000,000,000 Construction 2022-Q4

SABIC - ARAMCO - Yanbu - Crude Oil To Chemicals (COTC) Complex Saudi Arabia Yanbu Petrochemical Complex 20,000,000,000 FEED 2025-Q4 49
Saudi Aramco - Annual Onshore Maintain Potential Program (MPP) Saudi Arabia Red Sea Maintenance 5,000,000,000 Construction 2021-Q2

Saudi Aramco - Duba - Bulk Plant Terminal Saudi Arabia Duba Oil Storage Terminal 400,000,000 EPC ITB 2020-Q1

Saudi Aramco - Jizan Export Refinery (Overview) Saudi Arabia Jizan Petroleum Oil Refinery 2,100,000,000 Construction 2019-Q1

Saudi Aramco - Jizan Export Refinery - Crude Distillation Unit / Vacuum Distillation Unit, Saudi Arabia Jizan Crude Oil Distillation Unit 500,000,000 Commissioning 2018-Q4
Flare & Pipe Rack Complex

Saudi Aramco - Jizan Export Refinery - Sour Water Stripper & Amine Regeneration Unit Saudi Arabia Jizan Oil Production 500,000,000 Construction 2017-Q4

Saudi Aramco - Khurais Arabian Light Crude Increment Program Saudi Arabia Eastern Region Oil & Gas Field 3,000,000,000 Construction 2018-Q4

Saudi Aramco - Marjan - Gas Oil Separation Plant (GOSP) Saudi Arabia Marjan GOSP 5,000,000,000 Construction 2022-Q4

Saudi Aramco - Marjan - Oil Field Expansion (Overview) Saudi Arabia Marjan GOSP 15,000,000,000 Construction 2022-Q2

Saudi Aramco - Marjan Cogeneration Independent Steam and Power Project (ISPP) Saudi Arabia Marjan Co-Generation 500,000,000 EPC ITB 2022-Q4

Saudi Aramco - Marjan, Berri, Zuluf and Safaniyah IV Expansion - (Overview) Saudi Arabia Various Oil & Gas Field 7,000,000,000 Construction 2022-Q1

Saudi Aramco - Offshore Maintain Potential Programme (MPP) Saudi Arabia Various Oil & Gas Field 7,000,000,000 Construction 2022-Q1

Saudi Aramco - Southern Area Oil Operations (SAOO) Saudi Arabia Southern Region Oil Field Development 55,000,000 Engineering & Procurement 2017-Q1

SNOC- Onshore Acreage Exploration (Areas A, B and C) U.A.E. Sharjah Exploration 1,000,000,000 Project Announced 2025-Q4

Socar Aurora Fujairah Terminal - Fujairah Oil Storage Terminal - Phase 3 U.A.E. Fujairah Oil Storage Tanks 100,000,000 On Hold 2023-Q4

Wafra Joint Operations Company - Wafra Heavy Oil Field Saudi Arabia Neutral Zone Steam Injection 800,000,000 On Hold

Zahara Group - Al Hamriyah - Storage Terminal U.A.E. Sharjah Oil Storage Tanks 200,000,000 On Hold 2020-Q4

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

oilandgasmiddleeast.com JANUARY 2019

 FIVE MINUTES WITH

FIVE
MINUTES
Liv Hovem, CEO of DNV GL WITH...
Each month, we put industry leaders in the hot seat with a quick-fire inter-
view that cuts straight to the chase

0:01
ABOUT THE INTERVIEWEE:
Liv Hovem is the CEO of DNV GL, a global quality
assurance and risk management company with a
range of industry-related serv ices.
Your company released its Energy Transition Outlook not long ago.
What can you tell me about it?
It’s a forecast of how we see the energy mix transitioning to 2050. The
main finding is that we see an energy peak occurring in the mid 2030s
and also we see that going forward towards 2050, oil and gas will still
have an important role in the energy mix, accounting for 40% of the en-
ergy mix, compared to 53% today. Also, gas will become more important
than oil in the global energy mix.

Tell me about the shift to gas and

0:31
sustainability. “THERE WILL BE
Major oil companies are moving towards COMPETITION IN THE OIL
renewables, but the renewable energy AND GAS MARKET. THE
system will need something to balance it,
so that’s one reason gas will be important. If you look at emissions, gas is
MIDDLE EAST IS VERY
50 the cleanest of the fossil fuels, and if you look at the carbon budget the
WELL-POSITIONED SINCE IT
world has, towards the Paris Climate Agreement goals, we have to start HAS THE LOWEST LIFTING
now to reduce emissions. With natural gas, the technology and infra- COST...”
structure are available, so getting rid of coal and increasing gas is impor-

4:22
tant because we don’t have much time to wait for the perfect solution.

1. There are plenty of im-

portant insights in this
report. What would you
say is the key takea-
that we won’t reach the goals of the
Paris Climate Agreement.
To reach those goals, there really is
no silver bullet or magic formula. What role, if any, does digitalisa-

3 way?
What is most important
is that even though we
We have to have even more energy
efficiency, more gas production and
usage over other fossil fuels, more
tion play in sustainability and in your
forecast?
We forecast a peak in energy demand, and

7 forecast an important
role for oil and gas in the
future, we also forecast
use of renewables and more carbon
capture and storage, among other
initiatives.
the driver for a lot of that is digitalisation
and energy efficiency, because when you
digitise you can do things more effi-
ciently. Electric vehicles are part of that,
How does the Middle East fare in your forecast? they use 30% less energy than internal
The markets are changing and there are new areas that find gas and combustion cars. We see in manufactur-
2:16

new countries that need gas, so connecting the shift in demand and ing that digital processes, automation,
supply is important. We see LNG growing to give the flexibility to remote inspection and other technologies
connect demand and supply in the market. There will be competi- will make the whole manufacturing sec-
tion in the oil and gas market. The Middle East is very well-posi- tor more efficient and we see it in other
tioned since it has the lowest lifting cost, so because of that, a lot of sectors too. Housing, for example. To
investments will go to the Middle East, it has quite a lean and quick have smart use of energy in buildings is
development circle, so I think the Middle East will become even also part of energy efficiency. Digitalisa-
more important for the oil and gas industry going forward. tion is a driver for energy efficiency.

JANUARY 2019 oilandgasmiddleeast.com

 EXOVA HAS REBRANDED
TO ELEMENT

Element’s acquisition of Exova in 2018 has

transformed the business to become a global
market leader in Testing, Inspection and
Certification services for an extensive range
of materials and products to the Aerospace,
Transportation, Fire & Building Products,
Oil & Gas and Infrastructure sectors.
With 12 permanent testing facilities across the
Middle East, Element offer unrivaled testing
capabilities and technical expertise solutions,
some of which include:

2 Corrosion Testing
2 Metallographic, Failure Analysis and
Metallurgical Chemistry Services
2 Mechanical Testing
2 In-situ Metallurgical Evaluation and
Remnant Life assessment (RLA)
2 Engineering Critical Assessments (ECA)
2 Coatings Testing
2 Calibration Services

We help to make certain that the materials

and products we test for our customers are safe,
quality, compliant and fit for purpose.

For more information, please visit www.element.com