Oil & Gas Middle East - Sept 2010

Developing Qatar’s largest offshore oil reservoir

Maersk Oil is now developing Qatar’s largest offshore oil reservoir, together with Qatar Petroleum. The Al Shaheen field development plan is currently the world’s largest and most complex, offering unique opportunities to work with the latest technologies and a rewarding career at the forefront of the oil and gas industry.

The Al Shaheen field, Qatar was deemed uneconomical for development until Maersk Oil’s pioneering horizontal well technology made development possible. Today its reservoirs are among Qatar’s biggest oil producers.

The Al Shaheen Field Development Plan (FDP 2005) encompasses the construction and installation of 15 new platforms and the drilling of over 160 wells.

At Maersk Oil we foster a creative environment where employees are empowered to develop solutions to overcome these highly technical and complex challenges.

With operations around the world including Qatar, the North Sea, Brazil, Algeria, Angola, Kazakhstan and the US Gulf of Mexico, Maersk Oil offer excellent prospects for your future, as part of an international and culturally diverse team.

As we make the most of Qatar’s resources, you can make the most of the opportunities we offer.

To find out more, come and meet our team at:Offshore Middle East, Qatar Exhibition Centre, Doha: 12 - 14 October 2010 ADIPEC, Abu Dhabi National Exhibition Hall, Abu Dhabi: 1-4 November 2010

Explore more at www.maerskoil.com

Part of the A.P. Moller- Maersk Group, and active since 1962, Maersk Oil operates some 800,000 barrels of oil equivalent per day. Maersk Oil has activities in several locations such as the North Sea, Qatar, Brazil, Algeria, Angola, Kazakhstan and the US Gulf of Mexico.

CONTENTS

www.arabianoilandgas.com September 2010 Oil&Gas Middle East 1

SEPTEMBER 2010

15 NEWS REVIEWGlobal players with a foothold in the Middle East’s upstream sector can thank regional performance for a strong half-year set of fi gures.

18 QATAR IN PROFILEQatar’s journey from its fi rst oil discovery in 1938, to its top spot as the world’s leading LNG exporter.

21 BLACK CAT ROAMINGThe Qatari Engineering and Con-struction fi rm is poised to capture a majority of EPC and sub-contractor work locally and beyond in future.

24 MAERSK OIL QATARQP and Maersk recently pumped a landmark billionth barrel of crude from the Al Shaheen Field.

REGULARS2 WEB HIGHLIGHTS

4 COMMENT

7 REGIONAL NEWS

71 PROJECT DATA

80 THE BIG PICTURE

26 DOHA WPC PREVIEWQatar’s Minister Of Energy and Industry explains why Qatar is the logical host city for next year’s World Petroleum Congress.

33 DIGITAL OILFIELDThe roll-out of the digital oil fi eld is helping oil companies optimise production and reduce costs.

38 UPSTREAM LOGISTICSMARKET SURVEY: Logistics providers are offering enhanced end-to-end solutions for their oil and gas customers.

52 PAINTS & COATINGS Paint manufacturers and applica-tors give their assessement of the region’s industrial coatings market.

58 EVENT PREVIEWOctober’s Iraq Mega-Projects conference in Istanbul is a must-attend event for up-stream movers and shakers.

69 OILFIELD HOUSINGMike Bradley of oilfi eld accom-modation specialist, HB Rent-als discusses onsite housing.

17

2621

Optimized treatment, half the fluid volumeAn operator in Kuwait stimulated a carbonate well in just one run using ACTive* Profiling and Matrix services, saving approxi-mately half the fluid volume. Distributed measurements ana-lyzed in real time allow maximum fluid penetration and diversion—for the best possible treatment.

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2 Oil&Gas Middle East September 2010 www.arabianoilandgas.com

WEB HIGHLIGHTS

ONLINE SPECIAL REPORT

The online home of:

Analysis: Half year in reviewThe Middle East has proved to be a rock for IOCs and service providers in recent times, giving stability to their otherwise volatile financial performance in the second quarter of 2010. Emran Hussain takes a closer look at how these companies have fared with a focus on regional operations on www.ArabianOilandGas.com

Baker Hughes announced it has signed a three-year technical services agree-ment with Iraq’s South Oil Company (SOC) to provide technical services to SOC.

ArabianOilandGas.com

Lebanon’s parliament approved a law that opens its offshore areas for the first time to oil and natural-gas exploration.


ABB wins orders worth a total of US$24 million from Petrofac to design and deliver comprehensive power infrastructure for the ASAB Field Development Project in Abu Dhabi.ArabianOilandGas.com

Saudi King has called for the formation of the new board of directors of Saudi Aramco for the next three years effective from August 25 with two new members.


BREAKING NEWS AND VIEWS FIRST

ABB WINS US$24M ABU DHABI CONTRACT

LEBANON OPENS UP FOR OFFSHORE E&P

BAKER HUGHES IN 3-YEAR TSA WITH SOUTH OIL

NEW ARAMCO BOARD MEMBERS NAMED

1 Crescent and Rosneft in $US630m Sharjah project

2 Aramco to change Jazan refi nery location

3 KBR awarded Maissan refi nery contracts

4 New rig contracts boost Lamprell’s interim results

5 Kuwait to invest US$35bn in major oil projects

SPOT POLL

86% Yes

14% No

MOST POPULAR NEWS

WILL YOU BE ATTENDING ADIPEC THIS YEAR?

EXCLUSIVE INTERVIEW: PETROFAC CEOIn this exclusive interview, Ayman Asfari says that local delivery of engineering services is key to regional success.ArabianOilandGas.com

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COMMENT

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T he wild west was a mad, bad, and dangerous place to do business, but its lure and lustre were strong enough to

drag people from rural and city life into an often lawless, and always hazardous envi-ronment, because the prospect of missing out on a gold-rush was just too terrible to countenance.

Unfortunately, where opportunities are often greatest, so too are inherent dangers. Despite seven years of operations on the ground, Iraq is still an unsafe place to go and do business, and it’s not a posting many people today are clamouring for.

The summer period once again saw a resurgence in violence across the country, a situation all the more worrying given the backdrop of a winding down of coalition peace-keeping forces and a hand-over to Iraq’s domestic police and army.

However, many firms I have spoken to have begun doing brisk business in Iraq and on the most part have found a common model for success.

Iraq is a big country, with a well educated and willing workforce, and a spirit of entre-preneurship is bubbling away excitedly

Richest pickings are in most dangerous fi elds Iraq is still a risk, but that is why it’s called a frontier

To subscribe to the magazine, please visit: www.ArabianOilandGas.com

Published by and © 2010 ITP Business Publishing, a member of the ITP Publishing Group Ltd. Registered in the B.V.I. under Company Registration number 1402846.

Making intelligent use of the networking opportunities on your doorstep could open up Iraqi markets.

Audited by: BPA Worldwide.Average Qualified Circulation: 7,000(July - December 2009)

behind the grim headlines. Companies which have managed to tap into this latent energy source and build partnerships and agent agreements have been the first to capitalise on the growing, and urgent needs of the oil companies operating on the ground there.

Whilst flying into Baghdad and cold-calling your way around Iraq may be one option, better opportunities are presenting themselves in abundance right now. No fewer than six major exhibitions and confer-ences, all dedicated to discovering busi-ness opportunities in Iraq, will take place between September and December right here in the GCC and Turkey.

In October the Iraq-Mega-Projects conference launches in Istanbul, and in this edition we preview the opportunities that event may be able to deliver to help you get in on the action. Local partnerships, and more importantly local knowledge will keep your business in the game, and hope-fully help you avoid the cowboys.

Daniel Canty, EditorE-mail: [email protected]

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www.arabianoilandgas.com September 2010 Oil&Gas Middle East 7

New UAE and Kuwait project awards gather momentum Last month saw a flurry of project awards across the Middle East, with two major upstream projects bursting out of Abu Dhabi. ADNOC’s major development programmes at Zakum and Asab stole much of the limelight in the UAE, and a US$404 million EPC deal from Kuwait dominated news from the northern Gulf.

Petrofac announced in late July that it had been awarded the $400 million-plus contract by Kuwait Oil Company (KOC) for EPC services for the installation of fuel gas and gas oil pipelines. Work began in August.

The project, with an antici-pated duration of 23.5 months, will include a fuel oil pumping station, metering systems, utili-ties systems and associated elec-trical, instrumentation and tele-communication works, for the pipelines from Mina Al Ahmadi to the Azzour and Shuaiba Power Stations in Kuwait.

“The Kuwait market is stra-tegically important to our busi-ness and I am delighted that we have been selected by KOC to undertake this project. We maintain an excellent working relationship with KOC and look forward to strengthening this further as we move into the execution phase of this project,” said Maroun Semaan, Petrofac’s group chief operating officer.

In Abu Dhabi, ABB confirmed it had won orders worth a total

August activity bonanza led by Petrofac pipeline deal and ADNOC’s field programmes

of $24 million from Petrofac to design and deliver power infra-structure, systems and automa-tion equipment for the Asab Full Field Development Project.

Led by the Abu Dhabi Company for Onshore Oil Oper-ations (ADCO), the Asab devel-opment is one of the largest upstream projects in the region. Petrofac International is the EPC contractor for the project.The rejuvenation of the Asab field is central to ADCO’s overall development plan to increase its production to 1.8 million barrels of oil per day.

In addition to the produc-tion capacity upgrade of Asab, Petrofac’s EPC scope includes upgrading the facility’s capacity to accept increased produc-tion from Sahil, Shah and other south eastern fields.

“ABB is proud to be a part of this important project that will mark the country’s active role in

future energy supply,” said Veli-Matti Reinikkala, head of ABB’s Process Automation division.

ABB will design and supply a host of power equipment, including air-insulated medium-voltage switchgear and power transformers.

The delivery includes a substation monitoring and control system and integrated motor control system, which covers nine substations and one central control building.

Moving offshore, Mott MacDonald was commissioned in August by Zakum Devel-opment Company (ZADCO)

Maroun Semaan, Petrofac’s group chief operating offi cer.

Veli-Matti Reinikkala, head of ABB’s Process Automation division

LEAD NEWS

as front end engineering and design (FEED) consultant to replace diesel generators at Arzanah Island, and work is already under way.

“The only way to access Arzanah is by fixed wing aircraft for people, or supply boats for shipments, so replacing gener-ator equipment and power management systems is not straightforward,” explained Alex Jacob, Mott MacDonald’s project director.

Arzanah Island has water injection facilities as well as utility and accommodation loads and requires around 3.5 to 4 megawatts of power. As natural gas is not available on the island, power turbines are operated on liquid fuel (diesel).

To reduce fuel consumption, ZADCO had replaced some of its turbines with high speed diesel generators. The high speed generators proved to be more fuel efficient but operated with recurring problems and major breakdowns. Capital outlay for both phase one and phase two of the project will be around $18 million.

US $404 m Estimated value of Petrofac’s contract by Kuwait Oil Company (KOC) for EPC services for the installation of fuel gas and gas oil pipelines.

Source: Petrofac International


REGIONAL NEWS

McDermott wins ADMA EPC dealAbu Dhabi Marine Operating Company awarded Zakum water injection contract in August

Halliburton awarded project management role for Iraqi fi eldHalliburton has been awarded a letter of intent by Shell Iraq Petroleum Development for the development of the Majnoon field in southern Iraq, it confirmed last month. The giant Majnoon field is one of the world’s largest oilfields. The letter of intent provides that Halliburton will serve as project manager for the development work, in affiliation with Nabors Drilling and Iraq Drilling Company (IDC). The contract is still subject to final

look forward to providing serv-ices to Shell and the consortium

Abu Dhabi Marine Operating Company (ADMA-OPCO) awarded an EPC contract to McDermott International to upgrade the Zakum Field Water Injection System in August.

The project, estimated to cost approximately US$350 million, falls into two parts: pressure upgrade and capacity upgrade.

The pressure upgrade involves installation of new pumps, piping and transformers, the modification of existing instrumentation and equipment and structural reinforcement work of the existing water injec-tion modules at both the Zakum Central Complex and the Zakum West Super Complex.

The capacity upgrade will take place on Zakum Central Super Complex and involves the EPC of a new 3250-tonne deck that will house the new water treatment and injection system, power generation equipment and six-legged jacket.

approval by the appropriate Iraqi authorities.

Shell is lead operator and holds a 45% share, partner Petronas holds 30% and the Iraqi state holds 25% of the participating interests in all licences. Shell has announced that the consortium intends to increase production from the current 45 000 bpd to a targeted production plateau of 1.8 million barrels per day.

“Halliburton has made a size-able investment in Iraq and we

Ali Rashid Al-Jarwan said the project is one of the largest on ADMA-OPCO’s agenda.

Dave Lesar, CEO of Halliburton.

“It’s our pleasure to have McDermott with us in this major project, which is one of the largest on our agenda,” said Al-Jarwan. “The project will require maximum atten-tion in terms of quality and in this particular project McDer-mott have demonstrated their competitive edge in terms of quality, schedule and willing-ness to do the project.”

Steve Johnson, president and CEO of McDermott said: “This is a significant award and we are delighted to have this opportunity to work with ADMA-OPCO again.”

$350 mThe Zakum Field Water Injection System contract award from ADMA-OPCO is thought to be worth US$350 million to McDermott International

Source: ADMA-OPCO

The pressure and capacity upgrades are planned for completion within the second quarter 2012. Installation will be carried out using vessels from McDermott’s regional fleet.

The agreement was signed by Ali Rashid Al-Jarwan, ADMA-OPCO chief executive officer and Stewart Mitchell, vice-pres-ident and general manager,

J. Ray McDermott Middle East and India.

Located approximately 48 nautical miles north-west of Abu Dhabi, the field includes five water injection platform modules at Zakum West Super Complex and two modules at Zakum Central Super Complex which are used to maintain pres-sure in the surrounding wells.

in order to increase production at this historic oil field,” said Dave Lesar, Halliburton’s chairman, president and CEO. “We have in place the technology, equipment and personnel to ensure that we deliver the solutions that will help our customers in this region to meet their production goals.”

Halliburton has more than 4000 employees in the Middle East, and construction on phase I of Halliburton’s 400-man base in Burjisia, Iraq is now complete.

Getty

Imag

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REGIONAL NEWS

September 2010 Oil&Gas Middle East 9www.arabianoilandgas.com

Dana Gas sees Iraq boostEgypt and Iraq deliver 29% aggregate production leap in Q2Dana Gas has announced its financial results for the quarter ended 30th June 2010.

Revenue from the sale of hydrocarbons increased to approximately US$116 million, with gross profit reaching $48 million. These figures represent increases of 41% and 84% respec-tively, compared to the same period last year.

This is due to strong produc-tion growth, amounting in aggre-gate to 29%, from the company’s operations in Egypt (where 10 fields are now producing) and in the Kurdistan Region of Iraq, where production from the Khor Mor field continues to increase. It is also due to higher market prices for condensate, LPG and oil during the quarter, as compared to Q2 2009.

Dana Gas Egypt conces-sions produced 3.80 million boe during the second quarter, an increase of 19% compared to the same period last year. This included production from the Orchid field, which was brought on stream in April 2010.

The company also added its third new gas field discovery of 2010, Ward Delta-1 in the Nile Delta, which follows on from the El Panseiya-1 and South Faraskour-1 discoveries in the first quarter of this year.

This continues the Dana Gas exploration track record with three discoveries from four wells in the first half of 2010, building on the 2009 perform-ance of eight discoveries from twelve exploration wells. In the Kurdistan Region of Iraq Dana

Gas, through its 40% share, produced 1.06 million boe of gas and condensate during the quarter, an increase of approx-imately 88% over the same period in 2009. The first train of the LPG Plant at Khor Mor is in partial operation, producing gas and condensate. Production of LPG will start later in 2010, which will further increase production.

“In Egypt, our development programme continues to bring our gratifying stream of unde-veloped discoveries into produc-tion and our 14 well exploration programmes for 2010 continues to deliver class leading results with three discoveries from our first four wells,” said Dana Gas chief executive officer, Ahmed Al-Arbeed. “We continue to target a 20% increase in produc-

Dana Gas CEO, Ahmed Al-Arbeed, says Kurdistan production continues to grow.

HIGHLIGHTS

Weatherford began drilling a new oil well in Iraq near al-Amara city in August, as part of a US$224 million deal to drill 20 wells in 31 months. Amara lies 390km south of Baghdad. “Weatherford has started drilling the new well in the al-Bazrakan oilfi eld, which is 70km east of Amara,” said Ali Abbas al-Tarfi , director of Missan Oil Company. “This step is the fi rst in a deal to drill 20 wells to increase productivity from the province’s oilfi elds that are now hitting 100 000 bpd,” he added.

Tethys Oil said in August that the Saiwan East-4 well (SE-4) on Oman’s onshore Block 4 has successfully been drilled and pre-liminary results evaluated. The well was drilled to a total depth of 2463 metres. Several oil bearing layers were encountered including the Khufai limestone formation, from which 78 metres of core was extracted.

The Bourbon Supporter, the sec-ond of a series of two IMR (Inspec-tion Maintenance Repair) vessels has been delivered, strengthening the company’s existing fl eet of 15 IMR vessels in July. The Bourbon Supporter is currently on its way to Saudi Arabia for a two year con-tract, where it will operate from the end of August as a support vessel in subsea seismic testing.

tion for the full year compared to 2009 and, with the majority of our exploration drilling in the second half of the year, I look forward to hopefully being able to bring more positive news,” he continued.

“In the Kurdistan Region of Iraq, production continues to grow as we supply gas to meet the demands of the Erbil and Bazian power stations and it remains a source of pride to Dana Gas that this region of Iraq is one of the few with a reliable electricity supply. We are producing gas and conden-sate through our new perma-nent facilities and the first train of the LPG plant at Khor Mor will commence LPG production very soon. Consequently, Dana Gas’ growth is set to continue,” concluded Al-Arbeed.

Weatherford are active in Iraq.


REGIONAL NEWS

RasGas powers PortugalQatar producer delivers first supply of spot cargo LNG to SinesQatar’s RasGas delivered its first cargo of LNG to Portugal in August. The spot sale cargo was delivered to an affiliate of Galp Energia, at the Sines LNG Terminal in Portugal, from the LNG tanker Al Deebel.

“As of today, RasGas has supplied LNG to 14 different countries and we continue to look for opportunities to deepen existing relation-ships and further diversify our portfolio of customers,” said RasGas marketing executive Khalid Sultan Al Kuwari.

Earlier in the year RasGas started LNG output from its massive train 7 production facility. The facility has capacity to chill enough natural gas to produce 7.8 million tonnes per year (tpy) of LNG for export. Qatar started three equally large facilities last year.

The trains are the largest in the world and the gas supply to each of the giant plants for one

Qatari LNG was sold to Portugal on the spot market for the fi rst time in August

day alone is enough to supply 22 000 homes for a year.

“RasGas currently connects the reservoirs of Qatar’s North Field to customers around the world via seven LNG trains, 27 long-term chartered ships including the Nakilat Q-Flex and Q-Max LNG carriers and

access to regas terminals in Europe and the United States,” Al Kuwari said.

“Today’s historic cargo further demonstrates our credentials as a trusted supplier of LNG, and builds on our reputation for oper-ational excellence and contract flexibility,” he concluded.

DIARY PLANNER

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1-4 November 2010ADIPEC 2010Conference & ExhibitionADNEC, Abu Dhabiwww.adipec.com 14 December 2010OIL & GAS MIDDLE EAST AWARDSThe Westin Hotel, Dubaiwww.arabianoilandgas.com

www.arabianoilandgas.com

REGIONAL NEWS

Nigel McCue, Lamprell CEO.

NEWS ANALYSISRig refurbs and newbuilds boost Lamprell half-year results$317 million contract for NDC will see Sharjah yard fabricate two LeTourneau jackups

N ew rig contracts in the UAE worth nearly US$360 million were highlighted in Lam-

prell’s first half results, although the firm recorded a 27.2% drop in revenue compared to the first half of 2009.

Lamprell had a total of thirty jackup rigs under construction at its Hamriyah and Sharjah facilities during the first six months of 2010, with a revenue

$890 millionLAMPRELL BOOKED NEW CON-TRACTS WORTH $890 MILLION IN THE FIRST HALF OF 2010.Source: Lamprell

In July the company won a $317 million contract from Abu Dhabi’s National Drilling Company for two jackup rigs. Following the award to construct the two LeTourneau S116E jackup drilling rigs, construc-tion activities have commenced on the first rig at the company’s Hamriyah facility.

This particular rig was previously under construc-tion for Riginvest GP, and the engineering and procurement elements of the project are well advanced, the company said. The procurement activities associated with the second rig have begun and construction of this unit will commence in the third quarter of 2010.

As part of the contract, NDC

has options for Lamprell to

build two further jackup rigs for $158.5

million per rig, exer-cisable over the next 11

months. Each option includes additional

optional equipment orders of $12.6 million.The company also

won a $39 million contract from an undisclosed inte-

grated energy provider.

The contract is for the construc-tion of an offshore topside structure comprising of a two level utility deck and five level accommodation module for 38 personnel. Lamprell said the project will be constructed to North Sea standards and is scheduled for delivery along-side the Jebel Ali quay in the first quarter of 2012.

In April, Lamprell deliv-ered the deepwater drilling rig Offshore Mischief for Texas-based Scorpion Offshore. Lamprell said it is looking into in new business areas such as the refurbishment and construc-tion of semi-submersible drilling rigs and drill ship refurbish-ment, which will be carried out at its new Hamriyah Free Zone facility.

The company’s oilfield engi-neering operation is being relo-

12 Oil&Gas Middle East September 2010

of $189.3 million compared to $259.9 million for the same period in 2009.

“We experienced a higher level of rig refurbishment activity through our facili-ties than in prior periods, although it continues to be at a lower level of average expenditure,” explained Lamprell chief executive, Nigel McCue.

“Whilst we are expe-riencing a reduced level of offshore construction activity, mainly in the area of Floating Production, Storage and Offloading vessels, we remain confident of the long term future of this market sector,” he added.

Regional news

September 2010 oil&gas Middle east 13www.arabianoilandgas.com

Lamprell’s new Hamriyah facility.

McCue told Oil & Gas Middle East that the first half has been a busy one for the company, during which it won new contracts worth $890 million, including the NDC contract.

He said: “Executing our work to the highest standard, both on time and on budget, remains central to our business and we believe is the basis on which we have won recent contracts and added new customers. We completed the Scorpion Offshore Mischief in April 2010, on time and on budget, and this

cated in the new Hamriyah facility, which will release capacity at its Jebel Ali facility, allowing oilfield engineering operations to benefit from the synergies between its land rig and jackup rig projects.

Fabrication and refurbish-ment projects will be trans-ferred to Hamriyah by the end of 2010 and a new workshop will be completed in Q2 2011.

McCue said the company is seeking new opportunities in Iraq and other Middle East countries in the medium term.

approach is underpinning the future growth of our business”

“We continue to see a high level of interest for the wide spectrum of new build services we offer and our proposals pipe-line remains strong,” concluded McCue. A day-rate analysis from ODS Petrodata currently featured on ArabianOilandGas.com suggests low, but stable rates in the Middle East for the remainder of 2010, news which bodes well for the region’s fabrication and service yards.

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NEWS REVIEW

Middle East production activities the second quarter saw increases in productivity and

output with Saudi Arabia, Qatar, Bahrain and Oman leading the way for IOCs and oilfield serv-ice providers.

The quarter for oil majors such as ExxonMobil and Chev-ron, has been a particularly profitable one with major gains from their international opera-tions. Chevron said that higher crude oil prices and favourable foreign currency effects had helped boost its international upstream earnings for the sec-ond quarter to US$3.45 billion compared to $2.08 billion in Q2 2009. “Current quarter earn-ings from upstream operations benefited significantly from

Second quarter and half year results for operators in the region have been something to write home about, with Middle Eastern production and revenue streams playing a significant role, writes Emran Hussain

The Mukhaizna Field in Oman has helped Oxy increase production output and revenue this year.

Second quarter and half year results for operators in the region have

FINANCIAL FOCUS: MIDDLE EAST BUSINESS IS LIFELINE TO MAJORS

“Production has increased by 8% over 2009, driven by contributions from our world-class assets in Qatar” Rex Tillerson, ExxonMobil chairman

85%ExxonMobil announced earnings of $7.5 billion, up by 85% from $3.5 billion in the same period last year with major contribu-tions from Qatari assets.

higher prices for crude oil and natural gas and higher net oil-equivalent production. In the downstream, improved margins for refined petroleum products contributed to increased earn-ings,” said Chevron chairman and CEO John Watson.

“During the second quar-ter, we continued to make sig-nificant progress toward build-ing a leading natural gas busi-ness to supply Australia and the Asia-Pacific region. We also pro-gressed several new upstream opportunities in other areas,” said Watson.

ExxonMobil announced massive earnings of $7.5 billion, up by 85% from $3.5 billion in the same period last year with major contributions from the company’s Qatari assets.

“Oil-equivalent production increased by 8% over the second quarter of 2009 driven by con-tributions from our world-class assets in Qatar,” said chairman Rex Tillerson.

High crude realisations; bet-ter downstream margins and strong results in chemicals also played their part. First half earn-ings for the company were up by nearly $14 billion represent-ing a 60% increase over the first half in 2009. Smaller players such as Occidental Petroleum

made significant gains also attributable to increased vol-umes in the Middle East. A sig-nificant proportion of the com-pany’s $1.1 billion net income -

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NEWS REVIEW

“Results in the second quarter were mixed. Our focus is now on improving effi ciency and operating margins” Chad Deaton, Baker Hughes CEO

Revenues have been up for service companies involved the Middle East.

IOCs in the Middle East saw a profi ts upswing thanks to regional revenues.

compared to $682 million in Q2 2009 -was down to new produc-tion coming online in Bahrain and increased production from Oman’s Mukhaizna field.

US oilfield operators with significant interests in the region have on the whole been left unscathed by the fallout of the Gulf of Mexico disaster.

Baker Hughes, which recently signed a three-year technical services agreement with Iraq’s South Oil Company and also acquired fracturing service provider, BJ Services posted a post-acquisition net income of $93 million compared to $87 million in Q2 of 2009.

Chad Deaton, Baker Hughes chairman and CEO, said: “Results in the second quarter were mixed,” said Chad Dea-ton, Baker Hughes chairman and chief executive.

“Operationally, our perform-ance improved in North Amer-ica, Russia and Asia Pacific, each making significant improve-ment sequentially. However, in Africa and Latin America, where we have invested heav-ily, revenue has lagged and our profit was below our expecta-tions. With our organisation now well established, our focus is on improving efficiency and operating margins.”

Deaton also said his com-pany had deployed people and equipment to the company’s US land operations in response to the Gulf of Mexico drilling mor-atorium, and to international

offshore markets where deep-water drilling continues.

Regionally, the company’s order book was boosted by Saudi Arabia, Baker Hughes received a purchase order for 30 permanent downhole mon-itoring systems, including advanced pressure and tem-perature sensors, to be used in conjunction with intelligent well systems in the Kingdom.

In addition the company achieved the milestone of com-pleting and controlling more than 1,000,000 feet of reservoir section in the Kingdom.

Bahrain Petroleum Com-pany’s (BAPCO) 260 000 bar-rels per day petroleum refin-ery recently awarded several water treatment applications to Baker Petrolite Saudi Arabia – the company’s Saudi arm, in a three-year contract which was transitioned starting in June from the incumbent supplier, the company said.

Halliburton reported signifi-cantly better-than-expected Q2 results despite the impact of the Gulf of Mexico oil spill. This was helped by the strength and sustainability of the all-impor-tant North American onshore activity levels where it operates its pressure-pumping business.

The company made a net income of $480 million for the second quarter of 2010, more than doubling the $206 million it made in the first quarter.

The company said that all its product service lines and

geographic regions experienced sequential revenue growth from the first quarter which it said was driven by strong demand in the United States and seasonal activity improvements internationally. “We are taking appropriate actions to mitigate the impact of the reduced activ-ity in our Gulf of Mexico busi-ness, including redeploying our people and equipment to other areas of stable or increas-ing activity,” said Hallibur-ton president and CEO, Dave Lesar. Despite these moves,

we estimate that the deepwater drilling suspension will nega-tively impact our earnings,” warned Lesar.

The second quarter of 2010 has been a profitable one for many of the international com-panies doing business in the Middle East.

Looking forward, contract wins in upcoming areas such as Iraq, and the boosting of pro-duction from existing facilities in the established Gulf market should further improve opera-tors’ results.


QATAR COUNTRY PROFILE

Qatar’s vast North Field gas and Al Shaheen oil resource wealth have made the small Gulf State a regional activity hotspot

“Qatar will see a substantial increase in offshore expenditure over the next fi ve years” Lucy Millar, lead LNG analyst, Douglass Westwood

QATARSNAPSHOT:

Despite being a minor on-shore producer, Qatar is a major offshore oil and gas player. Oil was first

discovered in 1938 by Petro-leum Development Qatar, now Qatar Petroleum Company (QPC), at the onshore Dukhan field – and production reached 40 000 bpd before the onset of the WW2. Onshore production started in the same year and is believed to have reached peak production at around 368,000 boe/day in 2008 – around 25 times less than Saudi Arabia.

The discovery and develop-ment of the Idd-al-Shargi field by Shell in 1960 marked the begin-ning of a significant period of off-shore activity. In 1972 the Idd-al-Shargi, Maydan-Mazham and Bul-Hainne fields were brought into production and, for the first time, offshore production levels exceeded those onshore.

Production and export of gas and LNG from Qatar is driven in the main by the giant offshore North field. It was discovered in 1979, and covers over 6000km2. With estimated non-associated gas reserves of 14 Tcm, it is one of the world’s largest gas fields, and accounts for 98% of Qatar’s gas production. In 2004 Qatar Petroleum and Qatar Shell GTL Limited signed terms for the Pearl GTL project. The project involved installing upstream gas production facilities and an onshore GTL plant that would allow production of up to 140 000 bpd of GTL products – as well as significant volumes of asso-ciated condensate and LPGs. The continued exploitation of the offshore North field should see Qatari oil and gas produc-tion climb rapidly over the com-ing years and reach 4.7 million boe/d by 2015.

Much of the gas will be lique-fied for export in facilities such as Ras Laffan.

Today, Qatar boasts one of MENA’s most rapidly growing offshore markets, which is set to see a substantial increase in expenditure over the next five years and beyond. An esti-mated $403 million was spent on focus segments in 2005 and this had more than tripled by 2008. 2009 saw some decline as oil price and service pricing pres-sure impacted negatively on the rig market. Recovery, however, is expected and strong visibil-ity for rig contracts will enable expenditure growth to reach

just under $2 billion by 2014 – average annual growth of 8.7% over the forecast period.

Like many other countries in the region, Qatar has initi-ated policies aimed at increas-ing oil production and locating additional oil reserves before existing reserves become too expensive to recover. It is also investing in advanced oil recov-ery systems to extend the life of existing fields. To accomplish this, in recent years the govern-ment has improved the terms of exploration and production contracts and production shar-ing agreements (PSA). The improved terms are designed

Qatar plans to have all of its major gas development plans completed by 2011.



Data for this article is taken from Douglas-Westwood’s Middle East & North Africa Oilfield Services Market Report 2010-2014 Report and World LNG Market Report 2010-2014. Analysis and statistics in this report were authored by Rod Westwood, senior analyst and Lucy Miller, lead LNG analyst at Douglas-Westwood. The company is a leading provider of business research, strategy and commercial due diligence on the global energy services sectors. For more information please visit www.douglas-westwood.com

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to encourage foreign oil compa-nies to improve oil recovery in producing fields and to explore for new oil deposits.

Excluding the North field, Qatar has six offshore produc-ing fields: Bul Hanine, Maydan Mahzam, Id al-Shargi North Dome, al-Shaheen, al-Rayyan, and al-Khali.

Almost all wells drilled off the shore of Qatar are deviated and wellstock growth is healthy, driven strongly by flourishing drilling volumes.

Some of the growth expected over the next five years can be directly attributed to completion of the first phases of the Pearl project. Annual growth in pro-ducing wellstock is estimated at 7.3% and this will significantly boost the requirement for off-shore workover including frac-turing and perforation over the coming years.

ONSHORE PRODUCTIONGiven relatively limited pros-pects and fluctuating drill-ing activity, onshore drilling expenditure is relatively vola-tile in Qatar, although expendi-ture has seen a general upward trend over the last five years to exceed $46 million per annum. It is likely that fluctuations will continue over the coming years, although expenditure will be above $35 million for the fore-cast period. It is not expected that directional drilling or MWD to take a significant proportion of this expenditure as vertical wells dominate Qatari onshore activity. A small base of active development wells leads to only a minor onshore work-over mar-ket. It is estimated that expendi-ture of between $25-30 million a year is likely, of which frac-turing & perforation will take the lion’s share. Fracturing is

driven particularly strongly by gas-dominated wells and Qatar will become a very significant region in this respect over the coming years. Within focus seg-ments, work-over expenditure of an estimated $166 million in 2005 will grow to reach $1.3 billion by 2014 – an average of 15.6% annual growth. By this point, Qatar will be MENA’s pri-mary centre for offshore frac-turing & perforation expendi-ture – greater than neighbour-ing Saudi Arabia by over $200 million per year.

LNG IN QATARQatar is the LNG capital of the world, with healthy export mar-kets to India, Japan, Korea, Spain, UK, and the US. In addi-tion, the country has the world’s third largest proven natural gas reserves, estimated at 25.46 Tcm (899.3 Tcf), 13.8% of the

world’s total. The low cost of gas gives Qatari projects a major cost advantage over all other LNG sources. Qatar aims to complete all of its current LNG developments by 2011, which would then boost production to 77.10 mmtpa. Beyond 2011, the increase in Qatar’s capacity is expected to flatten because no new trains are planned due to a 2005 moratorium.



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BLACK CAT TO ROAM REGIONQatar’s Black Cat Engineering & Construction has ambitious regional expansion in its sights, and is chasing region-wide energy EPIC deals

Qatar’s home-grown Black Cat Engineer-ing and Construction is going from strength

to strength, and is positioning itself to capture much of the high-end EPC and sub-contrac-tor work in the Gulf state and beyond in the coming months and years.

The company, which began with a small office in Doha and a single portacabin site office in the Dukhan oil and gas field, is today stamping its mark upon many of Qatar’s most ambitious upstream and energy related projects. Black Cat’s evolution into Qatar’s largest EPIC and

maintenance contractor for the upstream oil and gas industry has coincided with quite unpar-alleled activity in the small Gulf state. Today the company claims a manpower base of over 2500 men and anticipated annual turnover just shy of the US$100 million mark.

Now it is starting to look around the Gulf, as well as inter-national markets, in the search for more projects to make its mark on. “We have also begun to properly invest in areas outside our traditional energy remit, in particular civil engineering,” Adnan Al-Mubarak, the gen-eral manager of Black Cat Engi-

neering and Construction tells Oil & Gas Middle East at the firm’s Doha HQ. “Doha will see around $60 - $70 billion worth of rebuilding and civil engineering projects in the coming years.”

“We obviously want to be aligned with those opportuni-ties. Roads, utilities and MEP work is all something we can bring with our background.”

Al-Mubarak has been with Black Cat since 2007 and has presided over a period of sig-nificant growth. This period has seen company turnover grow from around 40 million Qatari riyals in 2007 to 450 million riy-als in 2009. Like other specialist

contractors who have migrated from the demanding field of oil and gas, with its detailed specifications, civil engineering work is something well within the company’s scope. Currently much of the civil work it does is to support other company divisions. “A lot of our experi-ence in the oil and gas business is geared around the support infrastructure of the massive engineering sites and projects, which have sprung up in Qatar,” says Al-Mubarak.

“In Qatar we have become known for the strength of our technical ability. Trust is a mas-sive issue in Qatar, so once

Many of Qatar’s major energy projects will be complete in the next few years, so Black Cat E&C is looking beyond its native borders for new business.



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$124mBlack Cat Engineering & Construc-tion had a turnover of 450 million Qatari Riyals, approximately US$124 million in 2009

you have fostered that sort of relationship with companies here then life becomes much easier when the big contracts come up.”

The company has expansion-ist ambitions. It is eyeing work in the UAE and Iraq and is look-ing to establish itself as a skilled engineering contractor in these markets, but is aware that com-petition for work will be tough.

“The system we have put in place to handle the type of com-plex jobs we are undertaking is totally suitable to being rolled out further,” says Al-Mubarak. “I think the Emirates will be a good place for us to do business, plus, we all hope Iraq.”

“Abu Dhabi is, of course, the energy hub for the UAE and the greatest potential business area for us there. We have already begun negotiations to form a company in Abu Dhabi. Once

Iraq is stabilised it will be a good place to move in for a company with our skill sets.”

Black Cat is also investing in an operation in India, which it hopes to use as a vast source of engineering manpower. “With more engineers in the organi-sation we can take even big-ger jobs, as well as enabling a faster in-house implementation of engineering tasks,” said Al-Mubarak.

The kind of work he has an eye on is civil engineering, espe-cially the associated packages that come with big oil and gas jobs. The civil work is intended as an additional business stream for the company, which is well aware that the competition will be stiff.

“Around the Middle East there is a tendency not to invest top dollar in civil projects, but in Qatar they will,” he said. “When quality becomes the watch-word for the civil projects we want to be ready and there with proven capabilities under our belt, and that’s how we will position ourselves.”

Al-Mubarak acknowl-edges that developing know-

how and management systems takes time, so the company is not rushing into new markets. He raises a concern that oper-ating companies are looking for the highest technical and safety standards, but ‘aren’t really will-ing to pay for it’.

“Often we have seen tech-nical competency and safety compliance like a finish line,” he says. “Once you cross a cer-tain threshold – that’s enough. Going much further than that isn’t val-ued as highly as it should be. Because of this, per-formance

throughout the market doesn’t improve. It’s like saying to con-tractors I don’t want injuries, so firms just hide them and deliver a clean safety record.”

Naturally safety is a big issue for a company which started out in the oil and gas business – just as dangerous as regular con-struction, with the added risk of explosion – but there is a price to pay as a contractor building a record like Black Cat’s.

“The difference between having all the best systems

in place is ultimately higher overheads,” explains Al-Mubarak. “We have lay-ers of safety managers and technical advisors, which other firms do

not bother with, so our base operating cost is obviously higher. But we

want to go for-

Black Cat Engineering & Construction has an impressive pedigree in delivering early works packages for many of Qatar’s largest EPC energy projects.

Adnan Al-Mubarak, general manager of Black Cat

Engineering and Construction.



wards, and this is the way to do it. “It’s the same with those com-panies who do not pay salaries for six months. For a responsi-ble company to compete with cowboys is impossible, so I think there should be more responsi-bility on the client to understand who he is doing business with.”

Al-Mubarak knows his com-pany’s strength lies in EPC work and lays claim to being the only Qatari contractor with its engi-neering capabilities in-house, something he believes creates an advantage.

“All the others have alliances with international companies,

but for us that is a big handi-cap,” he said. “Having engineer-ing in house is much more flexi-ble, otherwise you are not much more than a paper-pusher.”

That said the company is not averse to developing the right partnerships and JVs, if they can strengthen its position. In October last year AMEC, one of the largest international engi-neering and project manage-ment companies, joined forces with Black Cat E&C, forming a joint venture agreement to offer asset support services to the oil, gas and petrochemical sectors working in Qatar.

“Ras Laffan in quite an amaz-ing sight these days, and these vast investments will take a great deal of looking after,” says Al-Mubarak.

“I think the technological know-how is vital when you are dealing with such safety-critical, and valuable assets and infrastructure. That’s one of the primary reasons for the joint venture with AMEC. Through the joint venture we can bring vast international know-how and experience to the Black Cat offering.”

The JV should be seen as part of a wider trend, which is accel-erating in the region, of forming top tier, preferred bidder status firms with global competencies, but national backing.

But this large-scale interna-tional co-operation doesn’t mean Black Cat’s business develop-ment work is just focused on scooping up the biggest jobs.

Al-Mubarak is a strong advo-cate of looking out for smaller projects too, especially where involvement may help build val-uable bridges for the future too.

“We are engaging with as many customers as possi-ble, even on quite small jobs,” he said. “I am often asked by the board ‘why do you take this small job?’ The answer is because this is the best way to learn the [clients] characteris-tics and processes, direct from our customers. This is hugely valuable when future projects come up, and the value of trust and familiarity cannot be over-stated,” he enthuses. “I want my guys everywhere, learning all the time. That way when the big jobs come, we are there and we know how they operate.”

Other contractors take note, when the big jobs come round, there may well be a Black Cat waiting to take them.

“I think the UAE will be a good place for us to do business. Plus, once Iraq is stabilised, it will be a good market for a company with our skill sets” Adnan Al Mubarak, GM, Black Cat E&C

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BILLION BARREL TRIUMPHQP and Maersk Oil Qatar recently pumped the landmark billionth barrel of crude form the offshore Al Shaheen Field



In July Maersk Oil and Qatar Petroleum reached the phenomenal produc-tion landmark of 1 billion

barrels from the Al Shaheen field in Qatar. When other oil companies shunned the field as uneconomical, Maersk Oil saw opportunities to unlock the tight reservoir. Since tak-ing over and developing the field in 1992 to first oil in 1994, the production curve has in-creased steadily to the current level of 300 000 bpd whilst re-ducing gas flaring to a mini-mum.

“This is a very difficult res-ervoir that was thought to be impossible to produce oil from,” said Deputy Prime Minister HE Abdullah bin Hamad Al Attiyah. “Original estimates were that the field would produce no more than 50 000 barrels per day, even in the best conditions.” Yet due to Maersk Oil’s expertise in developing marginal reservoirs, today the Al Shaheen reservoirs form one third of Qatar’s total oil production, as the country’s

largest oil producer. The latest US$6 billion

field development of Al Shaheen includes the installation of 15 new

platforms, 163 new production and water injection wells and 140,000 tonnes of new

facilities. During the compre-hensive installation work, Mae-rsk Oil managed a production uptime of over 99% without com-promising safety whilst reduc-ing gas flaring to a minimum.

“This is a great accomplish-ment that emphasises how effi-ciently this field has been oper-ated and is a fine example of what an international oil com-pany and a national oil company can accomplish when they work together,” said director of Oil and Gas Ventures Qatar Petro-leum, Saad Al Kaabi.

“We are very proud of the fact that together with Qatar Petro-leum we turned this challenging field into a commercial success, within such a short time frame,” said Maersk Oil CEO Jakob Thomason. “It is a significant achievement which has only been possible due to our strong technical skills, innovative mind-set and commitment.

The Al Shaheen field has also provided unique employ-ment opportunities in Qatar, as one of the world’s most com-plex offshore devel-opment plans. Mae-rsk Oil in Qatar cur-rently employs 130 Qatari nationals as part of its interna-tional team of tech-nical experts and

managers. Maersk Oil is also an active partner and contributor to Qatar Science and Technol-ogy Park, where it will engage in research on improved and enhanced oil recovery as well as studies related to the envi-ronmental impact of offshore operations.

“Our relationship with Qatar is much more than a produc-tion sharing agreement,” said Sheikh Faisal Al Thani, Maersk Oil Qatar Acting General Man-ager. “It is founded on the vision of HH the Emir Sheikh Hamad bin Khalifa al-Thani to maximise the recovery of oil while provid-

ing sustainable long-term bene-fits to the Qatari people.”

As part of its sustainability drive and commitment to eco-efficiency, Maersk Oil has also succeeded in reducing gas flar-ing in the Al Shaheen field to a minimum. By exporting gas onshore and by using gas injec-tion in the field, the company has managed to further boost recovery while reducing flaring significantly, despite a signifi-cant increase in oil production in recent years.

“Our multi-billion dollar development of Al Shaheen, delivered on time and on budget, showcases our ability to inno-vate and manage large, complex projects. Moreover, our par-ticipation in Qatar Science and Technology Park demonstrates our commitment not only to local oil production, but to devel-opment of the Qatari nation as a whole,” said Maersk Oil CEO Jakob Thomason.

163 wellsThe latest US$6 billion field development of Al Shaheen in-cludes the installation of 15 new platforms, 163 new production and water injection wells and 140 000 tonnes of new facilities.



20TH WORLD PETROLEUM CONGRESS

Doha will host the upstream’s Olymian event in December next year. Here H.E. Abdullah Bin Hamad Al-Attiyah, Deputy Premier Minister Of Energy And Industry, Qatar Petroleum Chairman And Managing Director And Chairman Of The Higher Organising Committee For The 20th World Petroleum Congress explains why Qatar is the logical place to congregate, and what will dominate the conference sessions



In December 2011 over 4000 delegates from the global upstream community will descend on Qatar’s capi-

tal city, Doha as the gas giant hosts the Middle East’s first World Petroleum Congress. The event is held over five days and will attract more than 600 media and 550 presenters participating in a programme that covers all aspects of the industry, from technologi-cal advances in upstream and downstream operations, to the role of natural gas, renewable and alternative energy, the management of the industry and its social, economic and environmental impact.

Known as the “Olympian Event of the Oil and Gas Indus-try”, it is attended by a global oil and gas audience and outside stakeholders such as govern-

ments, other industry sectors, NGOs and international insti-tutions who also join in the dia-logue.

The World Petroleum Exhi-bition, held alongside the con-gress, and in the same venue, fea-tures exhibits from the national

committees of the World Petro-leum Council, which include the most prestigious national oil and gas companies and agencies of the world. It also showcases the most important international oil and gas companies alongside key suppliers, service compa-

nies and manufacturers. This is the most significant global exhibition dedicated to the oil and gas industries, and will fol-low the largest Abu Dhabi Inter-national Petroeleum Exhbition and Conference (ADIPEC), to be held this coming November.

Qatar will play host to the first World Petroleum Congress to be held in the Middle East in December next year.

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Al-Attiyah: On behalf of His Highness Sheikh Hamad Bin Khalifa Al Thani, and the people of the Qatar, I would like to say how honoured we are to have been selected to host this impor-tant global event. It has taken 74 years for the largest petroleum congress in the world to come to the Middle East region, where most of the world’s oil and gas reserves are.

I am sure the Congress will be a successful and memorable occasion that will not only cel-ebrate the achievements of the petroleum industry, but also make a valuable contribution to the sharing of information and ideas within the industry.

What do you anticipate will be major themes for discus-sion at the WPC?Al-Attiyah: The theme – Energy Solutions for All: Pro-moting Cooperation, Innovation and Investment – provides an excellent opportunity for dele-gates to discuss the petroleum industry’s role in delivering reli-able, affordable and sustainable energy to the global market. A broad range of topics are to be discussed – such as the role of gas in the global energy mix, innovations in the supply chain, complementary energy sources and, most importantly, the industries commitment to sus-tainability.

Given the high calibre of the speakers that will be present at the congress, I am sure that even the most experienced industry professional will come away from the congress having learnt something new.

What are the next big GTL and LNG developments planned for the coming years?Al-Attiyah: Qatar is already the number one producer and exporter of LNG in the world and home to the largest and most modern fleet of LNG tank-ers. At the same time, it contin-ues to pioneer in the gas-to-liq-uids industry, as well as be one of the leading suppliers of petro-chemicals, fertilizers and other manufactured and byproducts from its natural resources.

Qatar is on track to be the world capital of the gas-to-liq-uids industry and has embraced a number of commercial-scale GTL projects based on various processes developed by the leading technology providers in the world. These clean, low sul-fur products will play a key role in reducing localized emissions.

The Oryx GTL project, which commenced operations in mid 2006, will at full capacity use around 330 million cubic feet per day of lean gas to produce 34 000 barrels per day of GTL products. The QP-Shell Pearl GTL project will at full operation produce around 140 000 bar-rels per day of GTL products as well as significant quantities of condensate and LPG. The first stage is expected to come on-stream during 2010.

Gas-based petrochemical industries are rapidly expanding with 12 projects under construc-tion and further ventures are in the planning stages. The total cost of existing or near com-pleted petrochemical ventures, refineries and metal industries is estimated at over US$20 bil-

lion, some US$7.04 billion of which has already been spent on expansion plans with around US$13 billion expected to be spent on ventures planned to be completed and commissioned by the end of year 2010.

With global recession and additional gas supply from the US, the LNG business is expe-riencing some challenges. What is Qatar Petroleum’s strategy for tackling these challenges?Al-Attiyah: When you are in this business you need to be resilient to external shocks. We manage changing market condi-tions by diverting our cargoes to take advantage of opportuni-ties in other parts of the world. Today we are the only country

with this level of flexibility. Cus-tomers need someone to move very quickly. In the 1990s there were cargoes but there were not enough ships. Today we have the ships, we have the car-goes and we are ready to move quicker than anyone.

One of our biggest chal-lenges is the disconnect that exist in some markets between the gas price per BTU and the oil price. Therefore, one of our key challenges is convinc-ing the world of the need for a more equitable pricing arrange-ment for natural gas. Ultimately, this will benefit both producers and consumers by providing a sound investment environment and adequate supplies of gas at fair prices.

Abdullah Al-Attiyah attracts huge media interest both home and abroad.

H.E. Abdullah Bin Hamad Al-Attiyah. Qatar will host the 20th WPC next year.

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INTERVIEW WITH H.E. ABDULLAH BIN HAMAD AL-ATTIYAH, DEPUTY PREMIER MINISTER OF ENERGY AND INDUSTRY FOR THE STATE OF QATAR:



Will there be closer co-operation between gas exporting countries in future?Al-Attiyah: The Gas Export-ing Countries Forum, with its secretariat now established in Doha, aims at enhancing coop-eration amongst producing and consuming countries. Its goal is the exchange of expertise in gas exploration and transportation, and to draw up frameworks for world gas markets.The GECF is not just about cooperation between exporting countries. The founders actively seek the participation of consuming countries in the development of the gas industry.

Long term energy trends suggest that world natural gas consumption will increase by an average of 1.6 percent per year from 104 trillion cubic feet in 2006 to 153 trillion cubic feet in 2030. Natural gas will remain a key energy source for industrial sector uses and electricity gen-eration.

The industrial sector cur-rently consumes more natu-ral gas than any other and is expected to continue that trend through 2030, when 40 percent of world natural gas consump-tion will be for industrial pur-poses. In particular, new petro-chemical plants are expected to rely increasingly on natural gas as a feedstock.

It is not an exaggeration to claim that the future of human prosperity depends on how suc-cessfully we tackle the chal-lenge of natural gas supply and demand.

The industry needs greater mutual support to ensure the uninterrupted supply of energy to the world and wise and pru-dent utilization of our natural resources. In this context, the role of the Gas Exporting Coun-tries Forum is essential.

The shortage of skilled engineers is often mentioned as a risk for the industry as it ramps up to meet demand. How can this be solved and what is Qatar do-ing in this regard?Al-Attiyah: The shortage of skilled and qualified manpower is an issue facing the energy industry worldwide. At Qatar Petroleum we have several strategies for ensuring that we have the human resources that we need to keep pace with our ambitious expansion pro-grammes.

For example, we are develop-ing strategic links with the edu-cational institutions within Qatar to increase the number of home grown engineers and other spe-cialists. This cannot solve the shortfall overnight, but it will build up the national knowledge base going into the future.

Is Qatar looking into developing any other energy sources?Al-Attiyah: Qatar recently signed a MOU with the US Department of Energy in the field of renewable and alterna-tive energy science and technol-ogy cooperation. The agreement acknowledges the strategic importance of promoting energy security through diverse energy sources and types, improving cooperation in renewable and

alternative energy partnerships, economic growth through clean energy, and reducing global greenhouse gas emissions. Among the initiatives we aim to jointly pursue are advances in carbon capture, transportation, and sequestration technologies. We also look forward to oppor-tunities for co-investment in areas such as photovoltaic tech-nologies and co-generation of electricity from the oil produc-tion process.

“Long term energy trends suggest world gas consumption will increase by 1.6% per year from 104 trillion cubic feet in 2006 to 153 trillion cubic feet in 2030”

Al-Attiyah is a passionate advocate of the Gas Exporting Countries Forum.

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DIGITAL OIL FIELD

DOF DEPLOYMENTI

n business, it can be the finest margins that make the difference. Any new application, methodology

or innovation can be expected to be exploited by firms keen to procure greater efficiency, productivity and added value.

Which makes the stuttered evolution of the ‘digital oil field’ (DOF) all the more intriguing.Major international oil com-

The roll-out of the digital oil field is helping Middle Eastern firms optimise production and reduce operating costs Words: Chris Sell

panies such as Shell with its ‘Smart Fields’, BP with ‘Fields of the Future’ and Saudi Aramco have pursued DOF initiatives for the past five to seven years. Yet its impact on the sector is still being felt, and its clear benefits have not been enjoyed across the sector. This is despite the fact the industry is projected to spend over $1 billion over the next five years on DOF invest-

ments, plus hardware, software and affiliated services.

Simply put, the digital oil field is an array of interactive and complementary technologies that enable companies to gather and analyse data throughout the job site. Intelligent wells pro-vide constant data – via fibre optic sensors in the drilling apparatus – about the well and its environment, which enables

operators to respond to chang-ing circumstances in real time. It is also known as i-Field, e-Field, integrated operation, real-time operations and real time optimisation,

Increasingly, it is innovations in various technologies that are assisting in DOF’s greater deployment. Practical examples include sensor data being deliv-ered to skilled personnel who,

Saudi Aramco has a vast oilfi eld infrastructure which could reap real benefi ts from embracing

the digital oil fi eld concept.


DIGITAL OIL FIELD

gas. Furthermore, a number of studies have concluded that field operator productivity can be significantly increased by as much as 200%, operating costs reduced by up to 30% and production rates expanded by eight to 10 per cent.

Nick Coles, organiser of the International Digital Oil-field Conference (IDOC) event, which brought together mem-bers of the oil and gas industry earlier this year to explore cur-rent and potential use of DOF in the Middle East believes the

sector needs to be more open to new methods: “Oil companies have a reluctance to embrace new methods. To get them inte-grated is by no means a short and easy accomplishment.”

He continues: “It is a combi-nation of three aspects; collabo-rative environment, people and progressive technology. But if firms implement this there have been many examples of improved production. And good payback on investment costs and improvement on all aspects of production.”

Embracing the digital oil fi eld means approaching the project more holistically than a traditional IT project.

having remotely researched the data, converted it into usa-ble knowledge and used it via advanced visualisation tech-nology. This assists analysts in detecting complex patterns and avoiding potential production problems before they occur. As an example, operators can adjust fluid pressure or valve settings as the drilling surface becomes more or less permeable.

Such cases lead to improved reservoir management, produc-tion optimisation and enhanced drilling operations. In turn, supe-rior business performance is realised by increased reservoir recovery, accelerated produc-tion, lower costs and reduced risks for both the company and its employees as a result of a new and improved real time and remote monitoring technology employment.

For an industry that would previously keep field data in hard form on paper, or via Excel spreadsheets in local field offices, to have access to shared information is a major shift.

Alan Baird of Emerson explains further: “The digital oil field of today is far different from yesterday. Yesterday, informa-tion was old, it could be months old for any wellhead. Today, information is key and the more that is available the better plan-ning that can be done. This starts at any wellhead, moves to the production plants and then finally out to customers. Engi-neers, maintenance and top-level management are driven by uptime and production, so data is key,” says Baird.

Some of the reported ben-efits of employing DOF include lower operational costs, ear-lier and increased production, lower capital investment and increased recovery of oil and

Getty Images

The IDOC event, which was held in May in Abu Dhabi was a clear illustration of an evolv-ing technology gaining cre-dence with the industry. Focus-ing on the potential use of dig-ital oil field (DOF) technology in the Middle East, the con-ference attracted major play-ers in the field, from ADNOC and Emerson, to Microsoft and Schlumberger. It is expected that a follow-up event will be tak-ing place in Abu Dhabi in 2011.

It would be a mistake, how-ever, to label this a ‘new’ tech-

September 2010 Oil&Gas Middle East 35

DIGITAL OIL FIELD

“Fundamentally DOF is about how people work together, how they operate in real time and over long distances” Tony Edwards, CEO, StepChangeGlobal

nology or in fact a technology at all, according to Tony Edwards, CEO of StepChangeGlobal, a market leader in the applica-tion of digital oilfields and inte-grated operations. Edwards was a workshop leader at the IDOC event in May this year.

The technology label is also a misnomer, said Edwards as it is more about implement-ing existing technologies in a particular way to maximise efficiency and deliver better results. “To call it a technology is a mistake. Yes, it uses tech-nology but it is more to do with a fundamental shift in the way you work. Technology enables is but it is what you do with it,” says Edwards.

“The classic mistake some companies made was to treat it simply as an IT project. But it is not like installing SAP. Funda-mentally it is how people work together, how they operate in real time and over long dis-tances. A huge element is to do with management and process change,” Edwards adds.

With each company oper-ating in its own unique way, Edwards said that this means there isn’t one approach to employ DOF programmes. “There is no one fixed way. It is dependent on the way the com-pany works. You cannot just pick one approach from Shell and stick it into BP for exam-ple. Some companies don’t rec-ognise that and consequently haven’t done so well. Whereas

in some companies it is easier to implement depending on the structure.”

If firms do invest, the pay-back is significant Edwards said. Shell has attributed $500m in incremental added value through the use of DOF pro-grammes while BP has attrib-uted an increase in production of 100 000 b/d. Other anecdotal evidence states there has been up to 20 per cent improvement in well delivery times.

While it may be inaccurate to state DOF is a ‘technology’, there is no doubt that such an initiative is only possible through the latest advances in digital technology and sys-tems which enable remote monitoring.

“The technology is already there now. Technology such as foundation fieldbus, HART, WirelessHART, asset manage-ment systems, distributed con-trol systems,’ said Baird. “Pro-ducers are all looking at how they can make their fields and plant more intelligent. How they can reduce the downtime, how they can maintain their outputs. It is extremely impor-tant that producers have the right technology that fits the right applications.

It is these technologies and the latest innovations – from the multiphase flowmeter to the digital control system to asset management delivering the information which will be key to DOF’s success within the

April 2010 Oil&Gas Middle East 47


DIGITAL OIL FIELD

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the work that would otherwise require 280 conventional wells due to being equipped with remote operations, permanent downhole monitoring systems, compact multiphase flow meters and smart well completions.

Oman is expected to increase its oil output by 5.8 per cent in 2010 due to future enhance-ments through its digital oil field programme. A recent sig-nificant announcement is its Fahid Collaboration Centre (FCC), which is the region’s first integrated virtual oilfield operations facility.

While the implementa-tion of DOF in the Mid-dle East has been steady rather than meteoric, a more pressing need than simply corporate desire to see profits rise will doubtless drive its imple-mentation further. Fig-ures from US

IDOC ‘11Event: International Digital Oil Field Conference 2011Dates: May 16th – 18thLocation: Hilton Abu Dhabi (Corniche)The IDOC ’11 Conference Programme will explore key issues surrounding the roll-out of the Digital Oil Field concept, including key sessions on: How will digital oilfields change the E&P business? The imapact on business processes, key competencies and tools, the value of DOF for the regions’ NOCs from ROI, as well as exploring what KPIs and metrics will serve to drive further initiatives and digital oilfield to dollars. Website: www.IDOC-UAE.com

DOF to assist production levels increases. In the UAE, plans are underway to improve crude pro-duction levels from 2.8 million b/d in 2009 to 3.5 million b/d. ADCO is set to increase its cur-rent oil production capacity of 1.4 million b/d by 22 per cent in 2017. One of the main contribu-tors to this plan is the implemen-tation of ADCO’s Automation and Smart Fields programme (ASF). This will identify and apply fit-for-purpose technolo-gies and tools to enhance asset management and optimising the use of infrastructure, facilities and manpower resources.

Elsewhere in the Middle East there are other examples of new technology being implemented. DOF programmes are under-way in Saudi Arabia, Oman and Kuwait. Saudi Aramco has reported that all their new fields are intelligent fields with the latest being Abu-Hadriyah-Fa-dhil-Khursaniyah (AFK) field. In the Haradh increment, 32 such wells are reportedly doing

Monitoring remote sites in real time without laying cable is already a reality.

“The beauty of the latest technology, is that many challenges have already been addressed, from the reduction in cabling to faster project implementation” Alan Baird

oil and gas sector. “Its hard to say which aspect has been most beneficial for the industry, as it is when they (technology) are combined this is what gives it true value,’ said Baird. “If I have to choose one breakthrough for industry, then I would feel that I/O on demand is significant as this drives the speed of imple-mentation, yet also brings that high level of data to not only management but also the proc-ess and maintenance engineers.

“The beauty of the latest technology,” Baird continues, “is that that many challenges have already been addressed. From the reduction in cabling by using foundation fieldbus or WirelessHART devices to lat-est DeltaV, technology of I/O on demand which gives faster project implementation and star-tup. All combine to reduce cost and get the operations online much faster, thereby production quotas are met quicker.’

In the Middle East there are significant plans to embrace

consultant Booz and Co. reveal a disturbing decline in skilled labour in the oil and gas indus-try with a current shortfall of 500 000 - and a deficit that could reach 1.7 million by 2030.

With demand for oil in the region steadily increasing, the need to invest in oil fields ini-tially deemed too expensive or remote could well become real-ity. Should this occur firms will doubtless embrace strategies which offer less labour-intensive

set-ups with no loss of productivity.

Alan Baird, Emerson Process Management.

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UPSTREAM LOGISTICS

GOING THE GOING THE

EXTRA MILEEXTRA MILE

Logistics providers both big and small across the region are finding that offering enhanced end-to-end solutions for their oil and gas customers is giving them a competitive advantage

T he global logistics market is by any stretch of the imagination a lucrative one and with revenues of

US$3.56 trillion (2008), it is easy to see why. Forecasts predict this figure nearing $4 trillion by the end of 2013.

Catering for upstream oil and gas operations is a niche area of the market where a delay in delivery by a logistics operator could mean losing millions of dollars in down-time waiting for a replacement part on an oilfield site.

Most of these operators pride themselves in being able to provide value added services to

their discerning clientele in the oil and gas sector. Whilst the region’s larger global logistics solutions providers are looking to enhance their well-established market share with increased capacity, smaller outfits are getting creative by capi-talising on their specialist knowl-edge and expertise of the region.

Oil & Gas Middle East speaks to the region’s logistics experts to analyse the state of the logistical support currently on offer to the upstream oil and gas industry in the Middle East.

Gulf Agency Company (GAC) is a marine shipping provider which started its operations in Kuwait


UPSTREAM LOGISTICS

“A lot of companies would have diffi culty operating where we operate, we’ve made that our business and we’ve developed

that capability and we have had a pretty impressive track record over the past several

years” Mike Douglas, president and CEO, SKA Arabia

recently carried out similar infra-structure setups in Algeria and Mozambique.

“You won’t see any places where GAC has shut down an office because when we go there we go there with a 25-year plan,” Manzil says. In order to further strengthen its position in the oil and gas industry, the Jebel Ali headquartered company recently set up a yard and a logistics ware-house in Houston.

Customers want the full range of services delivered at the highest standard no matter the location. As a single contact point, GAC Energy cuts out the middleman.”

Compared to other regions, the Middle East presents a compara-tively more matured marketplace for upstream logistics according to Manzil. He cites the peaking of exploration and production activity immediately after the oil shocks in the early 1970s and the shallow

hydrocarbon deposits in the region which makes it easier to strike oil.

GAC’s offshore logistics oper-ations are supported by its own fleet. In all, the company runs a fleet of nearly 50 anchor handling tugs, utility boats, landing craft, tugs and barges supporting its global operations in the Middle East, the Gulf, the Caspian, West Africa and off the west coast of India.

in 1957 moving onto Iraq and the rest of the Gulf before spreading its operations further afield into Africa, Asia, Europe and the Americas.

“GAC in Dubai is quite big, we thought about the warehousing concept before anyone else. We had these warehouses up and running in the late 1980s,” boasts Ismayil Manzil, group energy logis-tics manager, GAC. “Our strategy is that if a customer is going to a new country or business, we go with them,” says Manzil.

GAC sets up infrastructure for a customer in a country that does not currently have it. The company

“We had shipping agency offices in Houston for about 10 years but we never had our own infrastruc-ture for the logistics business, we were using our partner’s facilities,” Manzil says.

The company prides itself on giving customers a single point of contact to its array of logistics serv-ices around the world.

Manzil says: “The energy marketplace is complex, with many parties involved at every stage.

Mike Douglas, CEO of SKA Arabia, says providing logistics solutions in hostile environments sets his company apart.

TNT operates one of the world’s largest cargo fl eets

and offers tailored solutions for upstream operators.


UPSTREAM LOGISTICS

“The biggest challenge in this part of the world is attrition. It is very difficult to find quality HR especially in upstream logistics. Fortunately for GAC, we have a very good team of qualified and experienced hands who have been working with us for a long period.”

He also says that bureaucracy in the region is an ongoing problem for the company’s operations. ”If you have a project in three or four countries in the same region your lead time for getting the equip-ment from one country to another country is going to be a real factor in the overall cost of the project,” he comments.

However, good planning and knowledge of local rules and regu-lations goes a long way to mitigate bureaucracy-related delays, Manzil says.

The global downturn has not left the region’s oil and gas oper-ations unaffected, but looking ahead, Manzil is optimistic about growth in both existing markets and new areas in the Middle East.

“You have to agree that the regional economy is battered to the bottom. The only question is whether we hit the real bottom or not. If we have already done so, then there is only one way and that is upwards,” he says.

“We need to look at the economic cycle. Growth is followed by recession and boom is followed by growth. Like many other industries, the upstream logistics industry is also poised for growth. The opportunities are plenty – Iraq is one side; Saudi Arabia is getting its act right in the west coast; Bahrain is looking at revamping its onshore field at Awali, Oman is looking offshore, Dubai’s recent offshore find, Al-Khajfi Joint Opera-tions (KJO) – these are all positive developments,” Manzil concludes.

Global express service provider TNT has recently been developing its road network capabilities across the region with the planned acqui-sition of 200-250 trucks operating out of the company’s Jebel Ali facility in Dubai, UAE. It is also beefing up its air freighter service with the addition of a dedicated Boeing 767 aircraft connecting the east coast of the US to the Middle East via Liège in Belgium, where previously commercial charters were relied upon.

Brandon Grieve, regional multi country accounts director for

35 000 FLIGHTSSKA Arabia has run 35 000 logistical fl ight missions in Iraq alone over the last three yearsSource: SKA Arabia

the Americas, Middle East and Africa says the increase in TNT’s fleet capacity is a reflection of the increased logistical activity namely in the oil and gas sector, where the flow of traffic is importantly for TNT, bidirectional.

“Our focus on oil and gas is fairly new, from the beginning of this year we targeted the oil and gas industry as being one of big growth and untapped industries for us,” Grieve says.

“We’ve been servicing the oil and gas industry for quite some time now but without any real focus or aligned efforts across our coun-tries. Towards the end of last year we started looking at the oil and gas industry a lot more seriously and started investing in structures and support mechanisms to actu-ally focus on it.”

With the regions under Grieve’s remit holding much of the world’s known oil reserves, he says it’s a

Chapman Freeborn has deployed the giant Antonov planes for upstream clients.A jack-up rig under tow by a GAC tug.

“The oil and gas industry is an important market in the supply of air charter services.

Business is affected by the downturn - but in terms of logistics there remain

considerable requirements” Eliska Hill, general manager, Chapman Freeborn

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UPSTREAM LOGISTICS

no-brainer that TNT should focus on the oil and gas industry.

“We’ve put in place some key support structure around the industry, we have specialist oil and gas account managers in every country that just focus on oil and gas,” he says.

Grieve says the ratio of upstream to downstream related activity regionally is 70:30, adding that there is a criticality in the upstream sector that is not as apparent in downstream as the supply chains are a lot shorter with transit time being of the utmost importance.

“Oil and gas companies are looking to differentiate against each other because there’s a lot

of vertical integration so the key differentiator is how quickly they can get the goods to market so that is critical for us,” Grieve says

For many logistics providers, the key to gaining a competitive advantage is to develop integrated service solutions for their clients in order to retain business.

For TNT this means looking into becoming more involved with the region’s dynamic regulatory environment. Bodies that govern border controls and customs duties have a significant impact on return and repair times and having prior knowledge about these is valuable to oil and gas companies with critical equipment in transit. “There’s always a challenge when

“The biggest challenge in this part of the world is attrition. It is very diffi cult to fi nd quality HR especially in upstream logistics”

Ismayil Manzil, Group Energy Logistics manager, GAC

Ismayil Manzil, group energy logistics manager at GAC is based in Dubai.

you’re dealing with the regulatory environments here in the Middle East,” Grieve explains. “It changes everyday almost but I think it’s down to building a relationship letting [authorities] understand where we’re coming from and us understanding the restrictions that they’ve got.”

In terms of new markets and opportunities, Grieve sees a lot of movement in Iraq despite the current instability in the country.

“There is a shortage of tech-nical components in the market already, with Iraq opening up – 400 fields in the next 5-10 years - there will certainly be an influx of new equipment into the market,” he says.

He adds: “Once Iraq and Afghanistan settle down they will take off in several sectors not just oil and gas but automotive for spare parts especially for construc-tion machinery, telecoms and power generation.”

SPECIALIST SERVICESAir chartering is another useful option for upstream oil and gas companies in need of urgently-needed replacement parts on oilfield sites. International air char-tering firm, Chapman Freeborn, which has operated in the Middle East for over a decade, has seen business for its specialist services grow regionally.

“In this year alone we have seen a continued demand for our exper-tise - particularly for urgent and

outsize cargo charter services”, Says Eliska Hill, general manager, Chapman Freeborn’s Dubai office.

While the company’s Sharjah office deals with commercial traffic, its Dubai office handles cargo and passenger charters.

The company, which operates out of 25 countries around the world, saw a general slowdown in air charter movements during the global downturn last year with clients often choosing to utilise cheaper methods of transport such as over land or sea freight.

Over the last seven months, the company witnessed resurgence in the demand for specialist air

Offshore logistics operations require access to, or ownership of a specialised fl eet of vessels.

UPSTREAM LOGISTICS


charter services for cargo move-ments particularly in the oil and gas sector, moving technical oil spill equipment, heavy, outsized and urgent goods.

Internationally, Chapman Freeborn coordinated a series of aircraft charters into New Orleans, USA, to help tackle the leak from the site of the Deepwater Horizon rig in the Gulf of Mexico.

Recently its large movements saw the firm coordinate the air

transportation of numerous heavy and outsized deep-sea drilling items, urgent tools and dangerous goods to support projects in regional and remote locations.

Whilst the global economic downturn affected air chartering operations for the company, Iraq was a notable exception, although in its early stages, it has created enormous charter opportunities for both passenger and cargo, according to the company.

70:30 The approximate ratio between TNT’s upstream and downstream logistics activity in the Middle East


UPSTREAM LOGISTICS

The company has seen a sharp increase in the requests for tailored charter flights in 2009 to places such as Basrah, Baghdad, Najaf, Sulaymaniyah and Kirkuk increasing month-on-month in

2009 as the reconstruction efforts in the country stepped up.

2010 has seen a definite swing back towards air chartering, as the transit time factor outweighs the cost issues. The rapid develop-ment of some projects has gener-ated a significant demand for all types of charter movements.

“The oil and gas industry is an important market in the supply of air charter services. Business is affected by the downturn - but in terms of logistics there remain considerable requirements,” explains Hill. “Across our world-

wide network of offices we’re seeing continued demand for our expertise - partic-ularly for outsize and

urgent cargo charter services,” she adds.

FRONTIER LOGISTICSAs oil and gas

and reconstruc-tion projects pick

up speed in post-war Iraq, there are good opportu-

nities for experienced logistics providers with an integrated secu-rity element. With its

company mantra of “Doing diffi-cult jobs in difficult places”, Dubai based air chartering and ground logistics provider SKA Arabia sets itself some ambitious standards. It is more than a marketing slogan according to CEO and president Mike Douglas.

“Most of the big freight forwarders don’t have the kind of on-the-ground presence we do. What we call in the logistics game ‘the final mile’ is where we prob-ably have a unique capability,” he says.

“A lot of companies would have difficulty operating where we operate. We’ve made that our business and we’ve developed that capability and we have had a pretty impressive track record over the

past several years. It’s a high risk business but we try to limit our risk, we take care of our people and we try to do a professional job.”

The company specialises in providing logistics solutions in unsecured and hostile environ-ments with particular focus in Iraq and Afghanistan. It operates a tanker fleet in Iraq in excess of 60 trucks and has access to about 300 additional trucks for containerised and flatbed cargo.

“We’ve developed a unique concept for moving fuel: We operate convoys throughout Iraq down into the south into Basra and into the north in Kurdistan,” Douglas says. The company has been contracted by the Iraq Ministry of oil to support operations at the

“We’ve put in place some key support structure around the industry, we have

specialist oil and gas account managers in every country that just focus on oil and gas”

Brandon Grieve, regional Multi Country Accounts director for the

Americas, Middle East and Africa, TNT

Brandon Grieve, regional multi country accounts director for TNT.

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UPSTREAM LOGISTICS

PANALPINA’S BRAND NEW OIL & GAS SINGAPORE LOGISTICS HUBPanalpina officially inaugurated their dedicated logistics facility in August to service the oil and gas industry in Singapore.Panalpina World Transport (S) Pte Ltd., the wholly owned Singaporean subsidiary of Panalpina World Transport (Holding) Ltd., will base the facility out of the high-tech hub, further strengthening the compa-ny’s industry-specific competence.The new facility will exclusively serve shippers from the oil and gas industry by offering Panalpina’s full portfolio of services including air, ocean and over-land transportation management with a focus on the specific oil and gas trade lanes, charters, port agency for supply vessels and rigs, husbandry services, multi-modal rig solutions, customs clearance, packing, warehousing, expediting as well as other related supply chain management solutions.The new built-to-suit oil and gas complex, located within the Loyang Offshore Supply Base, Singapore, offers 1100 square metres of office space, a 7000

square metres covered warehouse and 14 000 square metres of open yard space. It increases Panalpina Singapore’s total warehousing capacity to more than 30 000 square metres.The facility also enjoys close proximity to the base jetty providing natural deep water conditions that facilitate the handling of floating installations and oilfield supply and service vessels.

Dora refinery in Baghdad and the Baiji refinery in northern Iraq.

It is seeking to increase its activity in the oil and gas sector in the country and is making efforts to meet the audit standards of the oil and gas community.

“We’re focused on fixed-wing and rotary operations, moving contractors in and out of Iraq and also from the UAE, from Kuwait and hopefully in the near future, we’ll be moving contractors to other destinations in Europe where some of the oil and gas compa-nies are planning to move their personnel from,” Douglas says.

“We operate warehousing in Baghdad and the Basra region. We are focused on developing the supply chain distribution capabili-ties, we’ve had significant expe-rience and we hope to leverage that with a lot of the oil and gas clients,” the CEO says. Douglas predicts that there will be a short-fall in refined products in Iraq in

Panalpina group COO Karl Weyeneth speaking at the inauguration of the Singapore hub.

the future as the current refinery infrastructure cannot produce enough to satisfy demand. Indeed, multi-billion dollar investments are planned, but will take several years to come to fruition. The Iraqi government is currently negoti-ating with several potential part-ners to overhaul its ageing down-stream infrastructure.

“We’re investing in developing a fuel supply chain, we’re intending to build fuel storage tanks in the Khor Al-Jabir port near Basra. We intend to develop a fuel supply chain logistics solution where we will import refined products, diesel primarily, and hope to supply a number of clients in the future,” Douglas says. “Throughout the world wherever there are disas-ters, conflict situations, there’s a need for this kind of ‘frontier logis-tics’,” Douglas concludes.

SKA Arabia CEO Mike Douglas says the company’s ability to operate in diffi cult areas of Iraq is a major selling point.


EVENT REVIEW

As the heat cranked up and August approached, Abu Dhabi, Sharjah and Dubai’s resident upstream professionals sought some sum-

mer refuge on the cool and classy Ruth’s Chris Steakhouse for the July instalment of the Oil Field Get-together.

In another sell-out event the booming business lunch brought together a wide variety of the oil and gas service sector’s management figures and welcomed some new additions to the region.

July’s event sponsors were Holborn Assets and Hurricane Marine, an oilfield

equipment provider based in Dubai. Quickly established as the monthly

networking event in the business, the event was a final instalment for many before the annual summer exodus to cooler climes, and the final opportunity to partake until September, with the Holy Month of Ramadan falling across the August slot.

The next event will be held as usual at Ruth’s Chris Steak House at the Mon-arch Hotel on Sheikh Zayed Road in Dubai, on Thursday September 30th. See you there!

DUBAI’S OFG Oil Field Get-together provides much-needed antidote to summer lethargy

The next Oilfield get-together will be held on September 30th. Check out the full gallery from July’s working lunch at

www.ArabianOilandGas.com

30thThursday

September

Terry Willis and Mutaz Bakhiet of

the Energy Industries Council (UK).

Scott Lamberson of AOSS, with Buck Kilgour ofSwanberg.

Jack Ahart, Jimmy Larsen

FACTS AND STATS

Where: Ruth’s Chris Steak HouseAt: The Monarch Hotel, SZR, DubaiWhen: Last Thursday of every monthAttendees: 98Sponsors: Holborn Assets & Hurricane Marine


PROTECTIVE COATINGS

FIRST LINE OF DEFENCE

P aints and coatings pro-viders in the Middle East have a long pedi-gree in the region. This

is perhaps not surprising given the ubiquitous nature of their core product, and the leading multinational paints manufac-turers have established strate-gic production bases and sup-ply chains across the Gulf.

The region’s oil and gas companies often turn to these silent protectors to shield their mission critical projects, where every hour of production down-time translates into millions of dollars in losses.

Whilst promoting environ-mentally friendly products is important to many coatings

Painted coatings are the visible barrier protecting any structure exposed to the brutal elements and extreme temperatures found throughout the Middle East

manufacturers operating in the Middle East, the reality for many here is that their clients will often opt for the cheaper and conventional solvent based paints. Some in the industry say this is down to a lack of knowl-edge as well as customers watch-ing out for their bottom line.

With the establishment of a regional paints and coatings industry body, the Society for Protective Coatings (SSPC), it is hoped that a greater level of knowledge transfer and aware-ness will take place between coatings professionals, contrac-tors, applicators and end-users.

Hempel Paints’ director of Protective Coatings and Marine Coatings and Technical Serv-

ices, Ian McCahill is optimistic about the flow of work expected to come from offshore and upstream energy projects.

The company has recently bagged two major contracts on world-scale projects, namely the Qatar Pearl GTL and Saudi Ara-mco’s SATORP (Saudi Aramco Total Refining and Petrochemi-cal) projects.

“The bears are out, and the bulls are back,” says McCahill. “Right now you’re looking at double digit growth scenario for the Middle East markets. The barometer as always is oil price and it’s comforting to note that oil revenues are stabilising at solid levels after the volatile boom and bust period.”

Being an integrated business partner with oil majors such as Saudi Aramco has gone a long way in helping the company secure these contracts.

McCahill says that embrac-ing change; adding and creating value for customers; understand-ing customers’ requirements; their working procedures and systems is key to gaining a com-petitive advantage in an increas-ingly uncertain marketplace.

“The last time there was a really stable business environ-ment was 1992-1993, and at those times I would have said we are competing in the mar-ket on quality and service, they are the benchmarks,” McCahill explains. “Since then these have


PROTECTIVE COATINGS

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“The bears are out, the bulls are back. Right now you are looking at a double digit growth scenario for the Middle East markets. The barometer as always is oil price and it’s comforting to note that oil revenues are stabilising at solid levels after the volatile boom and bust period”Ian McCahill, PCMC & TS Director, Hempel Paints

become more internal than external benchmarks because we’ve integrated ISO; health and safety legislation; and inter-nal and external audits.”

“If you can save three or four hours in turning around that structural steel, handling it and getting it to site and then you multiply that by 10 000 tonnes of steel work, you’ve saved a lot of money,” he explains.

Regional sales since 2004, he says, had double digit growth up until 2009 when the reces-sion reached full tilt. In addition to attributing lower volume to recessionary trends, a lack of confidence stemming from the reduced foreign investment in Saudi Arabia has been to blame.

However, due to the longer lag time involved in upstream projects, coatings providers have been somewhat cushioned from the brutal boom and bust scenario the civil sector has seen in the Middle East.

Jotun has been experienc-ing similar levels of growth in the region, with ME and Asia accounting for a major portion of its operations and revenue.

The company, which had an operating income of approxi-mately US$1.79 billion in 2009, up from $1.67 billion in 2008, finds that many of the petroleum based economies are faring bet-ter in the current economic cli-mate. Jotun opened a new state of the art factory in Yanbu, Saudi

Erik Aaberg (Jotun).

Arabia in November last year, is witnessing strong growth in the region, particularly Abu Dhabi, with its ongoing and planned mega infrastructure projects.

“Last year was very good for us in the oil and gas sector and in protective coatings in general. We are quite optimistic with regards to the oil and gas sector over the next 12 months,” says Erik Aaberg, managing director at Jotun Paints.

The company is seeing growth of almost 10% worldwide this year with its operations in the Middle East delivering growth of 5%.

Despite such posi-tive gains for providers’ order books, there are some areas of the market that cannot be controlled, such as the rising cost of raw materials. This has been largely attributed to a double hit of increased demand from China, following a reduction in produc-tion capacity of resin manufacturers, which have been mothball-ing or even scrapping plants because mar-gins became uneco-

nomical when the recession hit. China is now prepared to pay much higher prices which has in turn affected other markets.

“Raw material prices have risen quite a lot, but the over-all demand for coatings has not grown in the last 12 months,” says Aaberg. “Many of the raw material suppliers cut capac-ity and closed plants, so there is much less production avail-able. This ultimately affects our prices, which is difficult because

there is no

A contractor applies the fi nal coating to an oil pipeline in Saudi Arabia.Cost remains a principal driver in the selection of upstream coatings.


PROTECTIVE COATINGS

increase in demand. This situa-tion is difficult to explain to our customers when we say that our costs have gone up.”

Market forces aside, operat-ing in the Middle East for for-eign companies traversing local cultural practices presents some unique challenges explains Andy Holt, regional manager of UK based Leighs Paints.

“Every place that you oper-ate has its differences and it’s important to be culturally aware and to try and understand what the local business requirements are, and try and focus your busi-ness in that way,” Holt says.

The heavy duty coatings manufacturer, which focuses on steelwork protection, has seen a linear level performance since 2008. Its most recent involve-ment in regional oil and gas projects have included Habshan 5, the Shah gas fields in Abu Dhabi, and loading berths for Qatargas in Qatar. For the Qatar job Leighs Paints provided spe-cially formulated cryogenic and fire protection coating systems.

Unexpected project delays or cancellations pose further chal-lenges due to the time-sensitive nature of the paints and coat-ings supply chain, which is usu-ally tailored to industrial scale clients’ requirements and speci-fications. “You have to be care-ful when you are forecasting that you don’t end up with too

much stock for projects which are cancelled or delayed due to unforeseen circumstances,” says Sigma Paints’ Dubai based general manager, Arno Meister.

“For production times, get-ting the raw materials in on time, you cannot take any risk in delay in shipping because all the raw materials aren’t manufac-tured or stored in great volumes locally in the GCC, and so need to be imported,” he says.

Meister notes that whilst the decorative paints side of the market is seeing an increase in demand for environmentally friendly products, the same can-not be said for industrial paints and coatings. Ultimately cost remains the main driver for customers who often opt for the more conventional solvent based products.

Marwan Salem, managing partner at MBS Coating, a UAE based contractor believes this is also partly due to a lack of awareness amongst the region’s customers.

“We try to advise the client to use water based paint but of course there is the cost factor involved, so we have to con-vince and discuss with argu-ments, but not just by ourselves as a contractor. We also bring in paint manufacturers to further strengthen our view,” he says.

Pradeep Radhakrishna, founding chairman of the newly-

inaugurated UAE chapter of the SSPC says that encourag-ing industrial customers to use environmentally friendly coat-ing products will take time but is hopeful they will be accepted as the standard in the future.

“As it’s used more, compa-nies will start producing it in greater volumes, and as more companies start producing it there’s more competition. This trend of paints going towards using less solvent is already happening,” he explains.

“Water based technology has been around for a while but at the moment it has still not

crossed the major threshold lev-els,” he concludes.

Speaking about the impor-tant role a certification body like the SSPC plays in the regional context, Salem says it helps to set a standard that vendor, serv-ice provider and client recog-nise, ensuring quality delivery.

“If there’s an urgent job like maintenance, then a shut down costs millions of dollars for any-thing energy related. You don’t have to be just professional, you have to be highly specialised and people have to trust you - and that’s where the SSPC comes in,” says Radhakrishna.

“Raw material prices have risen quite a lot, but the demand for coatings has not particularly grown in the last 12 months. This is because suppliers have cut production capacity by mothballing plants, and that has impacted our bottom line”Erik Aaberg, managing director, Jotun Paints

Pradeep Radhakrishnan, SSPC chairman with Marwan Salem of MBS Coating.

Arno Meister, general manager of Sigma Paints, Saudi Arabia.

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6

Jotun_FP_rc:Layout 1 02/09/2008 19:46 Page 1


PROTECTIVE COATINGS

Q&A: Saudi Aramco’s protective coatings specialist, Mana Al-Mansour, tells Oil & Gas Middle East that demanding conditions make KSA a hotspot for product development

What challenges do you face when coating upstream installations? Saudi Aramco facilities are exposed to harsh climatic conditions. In addi-tion, the application conditions vary, including exposure applicable to: offshore, onshore, wet and dry soils, elevated temperatures, high-pressures, and aggressive chemi-cals. These variables create signifi-cant challenges to Saudi Aramco’s coating and corrosion engineers, requiring that we diligently search for the best coating technolo-gies available that will provide the correct protection system for every unique condition that applies.

Saudi Aramco has established stringent standards and qualifica-tion programmes ensuring that only qualified products are approved.

These programmes have earned a strong reputation in the region, resulting in coating manufacturers requesting Saudi Aramco’s approval as a primary condition ahead of launching their new products.

Saudi Aramco makes significant investments in the development and maintenance of its operations. We work very hard to eliminate all potential interruptions to our supply, process and delivery facili-ties, ensuring the continuity of our production. As part of this process, Saudi Aramco utilises the latest technologies available to main-tain the quality of our facilities and extend the design life of all its assets. Protective coatings are one of the important tools available to prevent corrosion and ensure longer service life for the facilities.

The quality of coating contractors is a key issue for Saudi Aramco.

If the products are not applied correctly or do not comply

with application stand-ards, the quality of the coating becomes irrelevant as the applied system will fail, more so if the contractor is not

qualified and inca-pable to perform the

application properly. This is why we are working closely with

local contractors in conjunc-

tion with

coating manufacturers, improving their capabilities and ensuring that they are qualified to carry out important application practices. We always encourage contrac-tors to be certified by international organizations, such as the Society for Protective Coatings (SSPC) and NACE International and coating manufacturers.

What trends do you see emerging in the coatings sector?Saudi Aramco has a large number of new projects, expansion of existing facilities and the ongoing rehabili-tation programmes for older facili-ties. I believe that this large project base, combined with the climatic conditions in the region, necessitate the development of new products for use here in the region, prior to the manufacturers marketing them in less demanding conditions. This allows Aramco to have a first look at new products currently under development. There are a lot of exciting new technologies that after proper investigation and approval should result in our goal of main-taining continuity of Saudi Aramco supply and extending production and operational longevity.

Does Saudi Aramco work with industrial paints and coatings providers to develop new products and services?We participate in the develop-ment of the products based on our practical experience with coating performance, applications and fail-ures. Saudi Aramco works closely with vendors to develop coatings. Sometimes, Saudi Aramco sets certain criteria for the intended products and shares this informa-tion with the coating manufacturers. Once the product is ready, we conduct lab tests at our Research and Development Center facilities to ensure that the product meets our standards. Later, the coating performance will be evalu-ated in actual conditions in an operational facility. Saudi Aramco is one of the few companies world-wide providing its facilities to test new technologies and does not rely solely on laboratory test results for the approval of new products.

Saudi Aramco is always supportive of new technologies and allocates a significant budget solely for that purpose and we are always ready to adopt new technologies and innovations.

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The quality of coating contractors is a key issue for Saudi Aramco.

If the products are not appliedcorrectly or do not comply

with application stand-ards, the quality of the coating becomes irrelevant as the applied system willfail, more so if thecontractor is not

qualified and inca-pable to perform the

application properly.This is why we are working closely with

local contractors in conjunc-

tion with

the manin less dallows Aat new pdevelopexcitingproper ishould rtaining csupply aand ope

“Saudi Aramco has established stringent standards and qualifi cation programmes ensuring that only qualifi ed products are approved and deployed”

Mana Al-Mansour, Saudi Aramco.


PROJECT WATCH: ABU DHABI

58 Oil&Gas Middle East August 2010 www.arabianoilandgas.com

IRAQ MEGA PROJECTS

October’s Iraq Megaprojects 2010 conference in Istanbul will focus on the challenges facing firms building operations in the world’s oil and gas superpower in waitingWords: Chris Sell

October’s Iraq Megaprojects 2010 conferencein Istanbul will focus on the challenges facingfirms building operations in the world’s oil

IRAQ MEGA IRAQ MEGA PROJECTSPROJECTS


IRAQ MEGA PROJECTS

For a country that had been ravaged by three decades of sanctions, two Gulf wars and ongo-

ing civil unrest, the announce-ment in December 2009 of a successful second oilfield bid round by the Iraq Oil Ministry was a significant step forward in its bid to attract the invest-ment it needs to modernise its oil infrastructure and rebuild its ravaged economy.

Of the second round of bids for 11 oil and gas field contracts, seven were awarded to consortia led by Shell, China National Petroleum Coprporation (CNPC), Lukoil, Petronas, Gazprom and Sonangol. Coupled with the three major deals awarded from the first rounds (BP with CNPC on the Rumaila field and ExxonMobil and Eni on West Qurna Phase 1 and Zubair) it stands to double its existing output in the next few years.

“The country as a whole is attractive, but especially the south region, which features most of the oil reservoirs and which has proportionally more projects” Alan Baird, Emerson

According to Iraq’s Oil Minister Hussain al-Shahristani, the fields announced by the government could increase oil production by up to 2.5 million barrels per day (bpd) in a few years, up from the current 2.3 – 2.4 million bpd. In total, the undeveloped fields are estimated to contain 41 billion barrels of oil, more than a third of Iraq’s total reserves. Iraq hosts the world’s third largest oil reserves.

While the per-barrel profit of these fields to oil companies is very low – ExxonMobil and Occi-dental Petroleum signed deals at prices similar to that which they had rejected in the summer 2009 – the chance to get a foot in the door of Iraq’s oil industry is too good to miss. On the West Qurna field, the ExxonMobil-Shell partnership accepted $1.90 for each barrel of oil produced above the field’s current production level, precisely what the government asked for in

June 2009 and less than half the $4 a barrel the IOC’s were after.

Those fields being bid for included the massive Majnoon and West Qurna 2 (with an output target of 1.8 million barrels per

day (b/d), Halfaya, Qaiyarahand Badra. The Eastern Fields and East Baghdad field (located in part under Sadr City) received no bids and could now be developed directly by the state.

$1.90 P/BOn the West Qurna fi eld, the ExxonMobil-Shell partnership has accepted $1.90 for each barrel of oil produced above the fi eld’s current production level.


IRAQ MEGA PROJECTS

Following the results on 11 December, a number of interna-tional players are now gearing up to capitalise on the greater willing-ness of the Iraqi government to exploit its natural resources and attempt to kickstart its economy and social structure following years of conflict and stagnation.

So confident is the ministry that Al-Shahristani recently announced a third round of bids will take place on 1 October. According to the oil minister, Iraq will invite all 45 inter-national companies, which were prequalified in the two oil auctions in 2009 to develop three further gas fields. The fields on offer are Akkas in Iraq’s western desert, Mansuriya in eastern Iraq and Siba in the southern oil hub of Basra. The gas produced will be used to develop for domestic power gener-ation as well as export revenue (an estimated 50 per cent will be exported).

But securing contracts is merely the start. The reality of operating in Iraq means that safety is just one of many practical issues confronting those looking to operate in the country. Political, social, legal and technical challenges are just as pressing. According to the Econ-omist Intelligence Unit, once its current orders have been deliv-

Iraqi experts either having left or been pushed out of the country means another key resource is lacking.

A further possible conflict with its oil-producing neighbour, Saudi Arabia over OPEC quotas will surely transpire if Iraq brings its production up towards seven billion b/d. Since 1990 Iraq has been exempt from quotas due to imposed sanctions. Concerns have been raised by OPEC members that should Iraq double its output, it could have a destabilising effect OPEC and the oil price. It is there-fore imperative that those firms

ered, Iraq will have 46 drilling rigs available, which would be barely capable of delivering the produc-tion increase for one of its fields, let alone 10.

IOC’s will also face other constraints. Prices for steel, for example, are expected to rise dramatically in the face of increased demand. A shattered infrastruc-ture means roads and bridges will need upgrading. There are bottle-neck fears and access to the prodi-gious quantities of water required to conduct operations could be another major obstacle. Loss of technical expertise, with many

2.3MIraq’s crude oil production in 2009 averaged around 2,336,000 barrels per daySource: OPEC Annual Statistical Review of 2010

31MIraq’s population stands at 31.23 million inhabitantsSource: OPEC

Halliburton was awarded the project management consultancy role for the giant Majnoon fi eld in Iraq in August.

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IRAQ MEGA PROJECTS

looking to enter Iraq are well-versed in all the practical, proce-dural and logistical challenges inherent in such a market.

The Iraq Mega Projects 2010 conference aims to focus on these inherent challenges that accom-pany firms operating in Iraq, iden-tify the strategies to ensure quotas are met and highlight the opera-tions that are essential to help rebuild the country.

Those expected to attend the conference will be operators, ministry representatives, local governors, service providers and Iraqi experts with the express aim of highlighting the requirements needed to enable Iraq to ‘support society, jumpstart economic growth, improve security and become one of the world’s largest oil producers’. CWC Group, the organisers of the event in Istanbul

has announced it has included a panel discussion on Corpo-rate Social Responsibility into the programme, highlighting the benefits to the contract winners of adopting a suitable social responsi-bility approach when conducting business in Iraq.

Two sessions will be dedicated to the full range of issues involved with this issue, including the focus on training, technology transfer, recruitment, community engage-ment, security, local suppliers and human resources.

Falah al-Khawaja, former director general of state-owned oil company, SCOP (State Company for Oil Projects), which operates the design and engineering of upstream and downstream projects in Iraq, and chairman of the confer-ence committee, explained the conference aimed to not just high- Iraq’s downstream industry is set to receive $20bn investment over fi ve years.

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Doing Difficult Jobs In Difficult Places


IRAQ MEGA PROJECTS

light such problems but look to deliver solutions to operating in the Iraq market.

“Notably there is the huge infra-structure that will be required for petroleum projects as well as civic infrastructure. Is the timeframe achievable? And what about other aspects such as conducting explo-ration?’ he said. ‘Companies from all over the world will be working in a new environment. There has been lots of change, disruption, people have changed, how will they react?”

The conference, he continues, will be about talking about working in Iraq and what it could offer. “For the contractors it is about oppor-tunities. It is about opportunities for service companies, for Iraq’s private sector, for manufacturing companies and drilling companies.” Al-Khawaja says a conscious deci-sion was taken to ensure that Iraqi politicians attended the conference to offer their expertise though not in an official capacity. “We avoided making the Iraq government’s involvement official and went for non-government sponsorship so there can be free and non-re-stricted discussions. But we were keen to get government officials so there could be a discussion of ideas and solutions.”

$41.85BNEstimated value of Iraq’s petroleum exports in 2009 was US$41.85 billion. Source: OPEC Annual Statistical Review

Furthermore, the well-publi-cised environmental disaster in the Gulf of Mexico which has so damaged BP’s international standing has merely highlighted the need for a greater awareness of corporate social responsibility and the need to engage with the community, he added. The ques-tion of how it is to be done will also be addressed at the confer-ence (speakers include NOC’s, stakeholders and the Iraqi private sector). The focus of the whole event will be on implementa-tion, consequently, one aim of the conference will be to draw up a draft of what can be done.

For example, on day three of the conference, there will be work-shops where a number of top Iraqi lawyers and bankers will be present and will provide a clear and detailed description of national regulations affiliated to the banking and legal sectors. Furthermore, there will be an interactive exchange covering legal, financial, accounting and insurance issues.

The lack of any clear oil law is one concern which will surely be addressed. The sector was nation-alised between 1972 and 1975. The lack of any law means firms have little legal recourse, should the government decided it doesn’t like

Left: BP’s former CEO, Tony Hayward, at the signing of a major oil deal in Baghdad in November 2009. Right: Iraq’s Oil Minister Hussain al-Shahristani.

the deals. A situation that prevented a number of firms from bidding for the latest rounds of contracts.

Relying on previous experience is not a green light to efficient and successful practice in the country, however. Peter Lalor, director oil and gas solutions with the Olive Group - the first security firm to enter Iraq following the US-led inva-sion in 2003 –and who is speaking at the conference explained the likelihood of a firm entering the market is predicated on three key issues. “To me, the conference will enable those attending to develop a better understanding of the envi-ronments and whether they can

adapt. In particular, there is the question of a security budget, risk appetite in terms of due diligence and corporate responsibility and perception of threat,” says Lalor.

“Conferences are important so that potential customers can come and hear first hand what is involved and what choices need to be made,” he explains. “All compa-nies that are looking to get involved need to make decisions. Some may feel it is not an appropriate oper-ating environment whereas some may say now is the ideal time.”

What is essential, Lalor says, is that international oil firms can work alongside national oil compa-

“Our job is a business enabler. To allow other industries to focus on their core business efforts while we carry out best practice solutions”Peter Lalor, director of oil and gas solutions, Olive Group

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To fi nd out about stand availability and prices please contactShunker Goel: [email protected] or call +44 20 7978 0080

For speaking opportunities please contact Shane White: [email protected] or call +44 20 7978 0090

IRAQ MEGA PROJECTS��

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Conference Steering Committee

Conference Committee Chairman: Falah Al- Khawaja, Former Director General, SCOP & Legal Affairs and Former Board of Directors

Member of SOC and NOC

Committee & Speakers Include:

Natiq Al- Bayati, Former Director General: Exploration Company - Reservoir and Field Development - Petroleum Licensing, Ministry of Oil

Asri Mousa, Technical Adviser, Chief of Operations-South

Dr. Ahmed B. Al-Ahmed, Vice Governor, Central Bank of Iraq

Salah Abdul Karim, Director fi elds, South Oil Company & Head of Department, Rumaila - Field Oil Development

Mounir Bouaziz, Vice President of Middle East and North Africa, Shell

Nasyrov Iskander, Director General, Lukoil Mid-East Limited

Myeong Nam Kim, Vice President, Kogas

SILVER SPONSORSGOLD SPONSORS BRONZE SPONSORS


IRAQ MEGA PROJECTS

nies to enable suitable technology transfer. “This will go some way to relieving the stagnation caused by conflict and sanctions. But there is no panacea, no quick fix,” he warns.

“Our job is a business enabler. To allow other industries to focus on their core business efforts while we carry out best practice solutions. As a result of these bids, a lot of firms will be deployed to brownfield and greenfieldsites. Before thinking about large mega projects, you need to look at initial methods of security, both deter-rent and detection abilities.”

Ultimately such events, which gather like-minded people who can acquire information that can then be used to make informed deci-sions before entering a potentially volatile market can only be benefi-cial. Alan Baird, director, plantweb and wireless marketing, Middle

East & Africa, Emerson Process Management, agrees that the pres-ence of such events are important for those businesses wishing to get involved.

“Such conferences are essen-tial and a very good opportunity to engage directly with the customer and collect and compare informa-tion. Customers have the opportu-nity to now see who can be key to helping them through this difficult period and they will get the oppor-tunity to meet the experts.”

More directly, it is a chance to engage with those multi-na-tionals who will be operating on the oil fields and consequently will require additionally expertise to work effectively. “We are looking at meeting end users and making contacts with the oil majors working on the different conces-sions on Iraq. We are also looking to meet potential services partners

DON’T MISSIraq Mega-Projects 2010 Exhibition & Conference26 – 28 OctoberIstanbul, Turkey Website: www.cwcimp.com

whom we can identify are capable of providing us with resources in the field specialised in our automa-tion industry,” he says.

Iraq as a market, while prom-ising, suffers from a lack of any systematic approach or transpar-ency for those firms considering whether to risk entering. “It has a very promising potential but currently we see it is moving in a very erratic manner where we are getting requests from every-where (especially traders) without knowing who is serious and what projects have real financing capability and will happen,” explains Baird.

“What is needed is a clear master schedule that connects the different projects together, for example the development of the fields, the pipelines, gas processing, refineries amongst other practical matters,” Baird says.

Safety concerns apart, Baird adds that the key issues are iden-tifying capable resources and being able to support the multi-national companies and to meet their aggressive schedules. “The country as a whole is attractive, but especially the south region, which features most of the oil reservoirs and which has proportionally more

projects and developments we are interested in.”

Despite the obvious risks, Iraq is facing a surge of interest in the wake of the oil bid rounds held last year. If it can capitalise and secure much needed invest-ment, the country could well see its oil output increase rapidly and strengthen its damaged infrastruc-ture. Conferences such as Iraq Mega Projects are fundamental in ensuring those willing to partici-pate in the next chapter of Iraq’s oil history are prepared for all the challenges ahead.

“What is needed is a clear master schedule that connects the development of the fi elds, pipelines, gas processing, and refi neries amongst other practical matters” Alan Baird, Emerson Process Management

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HB Rentals is a Louisiana, based accommodation unit and auxiliary equipment man-ufacturer for the oil and gas industry since the 1980s. It has offices serving the world’s major exploration and produc-tion regions of the Americas, Europe and Asia. The company manufactures land based wheel mounted trailer units and cold weather skids and stackable off-shore accommodations for fixed platforms and floating rigs.

The company also provides a host of services for all its accommodation units includ-ing project management, plan-

ning, engineering and design. “We have been established in the industry for 30 years,” says Mike Bradley, sales and mar-keting manager for the East-ern Hemisphere of HB Rent-als. “We operated from bases in most oil and gas producing regions worldwide. We support our regional locations by way of independent business hubs as well as agents. Our A60 fleet is the largest and the most dis-persed around the globe as well as being the most diverse in terms of specifications and lay-outs,” he claims.

Bradley says the HB Rentals modular designed units can be configured to provide anything from a single two-man accom-modation sleeper up to a 180+ man multi module/level living quarters including galley, mess rooms, laundries and offices.

The company also provides specialist offshore engineering and general purpose cabins that

ilfield operations, wheth- ning, engineering and design.

Offshore enquiries are booming for HB.

Mike Bradley of accommodation specialist HB Rentals says the challenge of meeting local upstream demand for modular living quarters and offices prompted investment in a new UAE support facility

HOMES FROM HOME

include laboratories, workshops and recreational cabins in addi-tion to other technical ameni-ties, and owns and operates a large fleet of smaller specialised well service A60 cabins to meet Zone 1 and 2 hazardous areas.

“All our accommodation and well service cabins are designed for use offshore in safe and haz-ardous areas. In addition and as standard options we provide for rental, walkways, sewage systems and power generation plants,” says Bradley.

Bradley explains how the company can offer its custom-ers the option to pick up or mobilise its housing units in one part of the world and drop off or demobilise the same unit in another. With a strategical-ly-placed manufacturing base in the UAE to complement its other bases in Singapore, UK and the US, the company is see-ing steady growth of business in the Middle East and inter-

nationally. He highlighted the UAE, Qatar and Saudi Arabia as particular areas of growth in business opportunities espe-cially with an increase in enquir-ies for offshore projects locally.

Around 70% of the units HB Rentals manufactures are leased out to its global client base on flexible finance terms. It does, however, receive enquiries to build units to be sold which are handled by its engineering, design and manufacturing hubs in the UK and the US.

Speaking about the region’s current market conditions, Bra-dley is resolutely upbeat: “Our biggest challenge at present is to meet demand for our prod-ucts and support services. We have recently opened a facility in the UAE to support existing customers and maintain the high standard of service nec-essary to keep our offshore cabins and facilities operating smoothly.”

HB Rentals are a major oil and gas fi eld supplier in the Middle East.

PROJECTS


Ongoing and upcoming projectsInformation is supplied by Ventures Middle East. Tel: +971 2 622 2455. URL: www.ventures-uk.comBAHRAINProject Title Client Consultant EPC Contractor Budget ($M) Status

Redevelopment of the Refi nery in Bahrain Bapco Chevron Lummus Global (US) Not Appointed 100 FEED

Redevelopment of Awali Onshore Oil Field Bapco / National Oil and Gas Authority (NOGA) / Occidental Petroleum Corporation (US)

Not Appointed 1000 Study

Lube Base Oil Project Bapco / Nestle Jacobs Engineering Samsung Engineering Company 430 Execution

Offshore Field Development Bapco Fugro Robertson Limited (UK) Occidental Petroleum Corporation / PTT Exploration and Production (PTTEP)

2000 Execution

KUWAITProject Title Client Consultant EPC Contractor Budget ($M) Status

Oil & Gas Pipelines in Mina Al Ahmadi KOC Hyundai Engineering & Construction Company, Kuwait; Petrofac International, Kuwait;

1792 Execution

Crude Oil Transit Line (TL4) KOC ABB 167 Execution

Booster Station 171 KOC Saipem 906 Execution

Gathering Center 16 in West Kuwait KOC Fluor Corporation Not Appointed 750 EPC Bid

Early Production Facilities- Phase 2 KOC / Processes Unlimited Abdulaziz Abdulmohsin Al Rashed Sons Company

117 Execution

Crude Oil Flow Pipeline KOC Combined Group Contracting Company 135 Execution

Pilot Water Injection Plant at Dharif Marrat Oil Field in West Kuwait KOC Not Appointed 14 EPC Bid

Effl uent Water Injection Phase I & Sea Water Injection Phase II KOC AMEC, Kuwait Petrofac International / Independent Trading Group

428 Execution

Pipeline between GC-7 and manifold TB-1 at Burgan Field KOC Heavy Engineering Industries & Shipbuilding Company (Heisco)

20 Execution

Crude Oil Flow Pipelines in North Kuwait KOC Not Appointed 110 EPC Bid

Sulphur Handling Facilities at Mina al-Ahmadi KNPC Thyssenkrupp (Germany) Not Appointed 132 FEED

Crude Oil Export Pipelines at Gathering Center 16 and Water Flowlines at Minagish

KOC Combined Group Contracting Company 52 Execution

LPG Filling Plant at Umm Alaish KOTC Not Appointed 100 EPC Bid

Mina Al Ahmadi Refi nery Upgrade - Phase 1 KPC Fluor Corporation Almeer Techical Services Company/ Flour Corporation

140 Execution

KOC Facilities at Kuwait's Key Oil Fields KOC National Petroleum Services Company (Napesco)/ Halliburton

206 Execution

Maintenance & Repair of Pipelines KOC O & G General Engineering & Contracting 72 Execution

Mechanical Maintenance Works for Shuaiba Refi nery KNPC Not Appointed 114 EPC Bid

New Acid Gas Removal Plant in Mina Al Ahmadi Refi nery KNPC Worley Parsons Tecnimont, Italy; Mohammed Abdulmohsin Al Kharafi & Sons, Kuwait;

404 Execution

Gas Booster Station 160 KOC AMEC, Kuwait Snamprogetti Kuwait 649 Execution

Pipeline from Shuaiba North to Mina Abdulla Ministry of Energy Not Appointed 55 FEED

Jurassic Early Production Facility (EPF) KOC Not Appointed 1500 EPC Bid

Booster Station 132 KOC SK Engineering & Construction, Kuwait 724 Execution

Fourth Gas and Condensate Train at Mina al-Ahmadi Refi nery KNPC Fluor Corporation, Kuwait Daelim Industrial Company, Kuwait 886 Execution

Upgrade of South Ghudair Gathering Centre KOC / Saudi Arabia Texaco (SAT) Arabi Enertech 27 Execution

Maintenance of Oil Production Facilities in West Kuwait KOC Not Appointed 161 EPC Bid

LPG Tank Farm in Mina Al Ahmadi Refi nery KNPC AMEC, Kuwait Not Appointed 1200 EPC Bid

Gathering Center 14 in the South East KOC Almeer Technical Services 45 Execution

OMANProject Title Client Consultant EPC Contractor Budget ($M) Status

Fuel Tank at Mina Al Fahal Refi nery ORPC Daewoo Engineering & Construction,Oman

17 Execution

Propane Recovery Unit at Mina Al-Fahal Refi nery ORPC Not Appointed 50 Feed


PROJECTS

Project Title Client Consultant EPC Contractor Budget ($M) Status

Upgradation of Refi nery at Mina al-Fahl ORPC Not Appointed 60 EPC Bid

Sea Water Supply at Sohar Refi nery ORPC Not Appointed 20 EPC Bid

Duqm Refi nery & Petrochemical Complex ORPC Not appointed Not Appointed 7000 Study

Oil Exploration in Blocks 3 & 4 CCED /Tethys Oil (Oman) Ltd CCED 100 Execution

Gas Compressor Station at the Nimr fi eld Oman Gas Company Tecnicas Reunidas / Worley Parsons Galfar Engineering & Contracting, Oman 36 Execution

Octal Petrochemical Project at Salalah Free Zone Octal Holding Uhde National Construction & Trading Co. LLC (NCTC)

700 Execution

Kauther Gas Compression Project PDO Petrofac International, Oman 350 Execution

PTA Plant at Sohar Port Oman Oil Company (OCC)/ JBF Industries Ltd.

Not Appointed 680 Study

Crude Oil Stabilisation Unit at Mukhaizna Occidental Mukhaizna Not Appointed 100 EPC Bid

Depletion-Compression Project at Saih Nihayda Petroleum Development Oman (PDO) GS Engineering & Construction, Dubai 350 Execution

Storage Tanks and Terminals at Sohar Oiltanking Odfjell Terminals & Company Oiltanking (India) / Larsen & Toubro 80 Execution

Amal Steam Surface Facilities -Off Plot Petroleum Development Oman (PDO) Not Appointed 125 EPC Bid

Qarn Alam EOR Project - Off-plot Package PDO Galfar Engg. & Cont. 139 Execution

Qarn Alam EOR Project - On-plot Package PDO MEG WorleyParsons Dodsal 450 Execution

Amal Steam Surface Facilities - On Shore Petroleum Development Oman (PDO) Not Appointed 200 EPC Bid

Oil & Gas Pipeline and Processing Plant in Musandum Oman Oil Company (OCC) Not Appointed 500 EPC Bid

Harweel Cluster Phase - 2 PDO AMEC Petrofac International / Galfar Engineering & Contracting

960 Execution

QATARProject Title Client Consultant EPC Contractor Budget ($M) Status

Petrochemical Complex at Ras Laffan QP/Total Not Appointed Not Appointed 3000 Concept

Gas Pipeline Scheme Between Ras Laffan & Mesaieed Qatar Petroleum (QP) Mott MacDonald, Qatar Punj Lloyd, Qatar 800 Execution

dry gas mechanical seals & repair •engineered mechanical seal support systems •

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PROJECTS



Jetty Boil-Off Gas Recovery Project Qatargas Fluor Corporation, Abu Dhabi Fluor Corporation 800 Execution

Block 4 North Qatar Petroleum/Anadarko Not Appointed Wintershall, Germany 150 Execution

Acid Gas Removal Plant in Dukhan Qatar Petroleum (QP) Technip, Qatar Petrofac International 300 Execution

Melamine Project at Mesaieed Qatar Melamine Co. Eurotecnica/Urea Casale QECC 250 Execution

Petrochemical Complex at Ras Laffan QP /ExxonMobil Corporation Not Appointed Not Appointed 6000 Concept

Oily Water Effl uent Pipeline in Dukhan Field Qatar Petroleum (QP) Galfar Al Misnad Engineering & Contracting

11 Execution

Oryx GTL - Phase 2 QP/Sasol/Chevron Not Appointed 1400 Study

Gas Pipeline Network within Ras Laffan Industrial City Qatar Petroleum Mott MacDonald Qatar Larsen & Toubro, Qatar 117 Execution

Olefi ns Complex Qatar Petroleum (QP) / Shell Chemicals Not Appointed 2500 Study

Condensate Refi nery at Ras Laffan - Phase 2 Laffan Refi nery Company Not Appointed 800 Feed

Pearl GTL Project - Package C4 QP / Royal Dutch/ Shell Halliburton /JGC Corporation Chiyoda Corporation / HHI Company 1750 Execution

Barzan North Field Development ExxonMobil Corporation/Qatar Petroleum (QP)

Chiyoda Corporation/J Ray McDermott Not Appointed 8000 EPC Bid

Pearl GTL Project - Package C8 QP/Royal Dutch/Shell JGC Corporation/Halliburton Veolia/Saipem/Al Jaber 101 - 250 Execution

Plateau Maintenance Project Qatargas Technip, Qatar Chiyoda/Technip 1200 Execution

QVC Expansion Project QVC Not Appointed Not Appointed 31 -100 Study

Oxygen & Nitrogen Production Unit at Ras Laffan Gasal Air Liquide Engineering 70 Execution

Nitrogen Pipeline Network at Ras Laffan Gasal Black Cat Engineering & Construction 12 Execution

Gas to Liquids Project-3 (Pearl GTL) QP/Royal Dutch/Shell JGC Corporation/Halliburton Consolidated Contractors International Company (CCC)

16000 Execution

Low Density Polyethylene Unit at Mesaieed - LDPE 3 Qapco Uhde Uhde/Tefken 549 Execution

Polyacetal Resins Plant at MIC National Qatar Industries / LG Chem / Tasnee

Not Appointed 137 FEED

Qafco VI Qatar Fertilizer Company (Qafco) Saipem / Hyundai Engineering & Construction Company

610 Execution

TSE Pipeline from STP to Dukhan Qatar Petroleum (QP) Petroserv Limited 15 Execution

Al-Wukair RPS and Associated Pipelines Qatar General Electricity & Water Corporation (Kahramaa)

Qatar Building Company 120 Execution

Al Shaheen Project - Package 14 Maersk Oil Qatar Larsen & Toubro 250 Exectution

Two New Glycol Regeneration Trains in Dukhan Qatar Petroleum Worley Parsons Qatar Kentz 15 Exectution

South Field Development Qatar Petroleum Development Company (QPD)

National Petroleum Construction Company (NPCC)

40 Exectution

Qafco V Qafco Not Appointed Saipem/ Hyundai Engineering & Construction Co

3200 Execution

Maintenance on Platforms at Measieed Refi nery Qatar Petroleum (QP) Not Appointed 50 EPC Bid

Headworks for Muaither RPS and Associated Pipelines Qatar General Electricity & Water Corporation (Kahramaa)

Al Waha Contracting 109 Execution

Receiving & Loading Facility at Ras Laffan Qatargas Qatar Kentz 100 Execution

Common Sulphur Project DEL Washington Group International Not Appointed 101 - 250 FEED

Sulphur Handling Facilities Qatar Gas 2 Washington Group International Al Jaber Energy Services / Washington Group International

360 Execution

Pearl GTL Project - Package C5 QP / Royal Dutch / Shell JGC Corporation / Halliburton Toyo Engineering Corp. / Hyundai Engineering & Construction Company

1480 Execution

Gas Sweetening Facilities Integrated Project at Mesaieed Qatar Petroleum Worley Parsons Petrofac International 350 Execution

Headworks for the Mesaimeer RPS & Associated Pipelines Qatar General Electricity & Water Corporation (Kahramaa)

HBK Contracting 128 Execution

Pearl GTL Project - Package C2 QP/Royal Dutch/Shell JGC Corporation/Halliburton Linde 900 Execution

SAUDI ARABIA Project Title Client Consultant EPC Contractor Budget ($M) Status

Safaniyah Offshore Infrastructure Saudi Aramco J Ray McDermott 1000 Execution

Jubail - 2 Export Refi nery - Interconnection between Refi nery Units and Plant Utilities

Saudi Aramco / Total Technip, Saudi Arabia Technip/ China Technical Consultants Incorporate(CTCI)

700 Execution

Yanbu Export Refi nery - Coker Unit Package Saudi Aramco / ConocoPhilips Kellogg Brown & Root (KBR), Saudi Arabia Not Appointed 1200 Execution

Shabab-2 Oil Pipeline Project Saudi Aramco Stroytransgaz 200 Execution


PROJECTS


Caustic Chlorine / Ethylene Dichloride Factory in Jubail Arabian Chlor Vinyl Company /Maaden /Sahara Petrochemical Company (Al Waha)

CMAI Consulting Company Daelim Industrial Company,Saudi Arabia 400 Execution

Jubail-2 Export Refi nery - Pipeline and Offsite Package Saudi Aramco/Total Technip Gulf Consolidated Contractors (GCC) 300 Execution

Yanbu Export Refi nery - Crude Unit Package Saudi Aramco / ConocoPhilips Kellogg Brown & Root (KBR), Saudi Arabia Not Appointed 970 Execution

Gas Oil Separation Plant at Hout Field in Divided Zone Al Khafji Joint Operations (KJO) Toyo Engineering Company Consolidated Contractors International Company (CCC)

400 Execution

Sasref Refi nery - Jubail Sulphur Treatment Unit Saudi Aramco Shell Refi nery Company (Sasref)

CBI Lummus in Middle East JGC Corporation,SaudiArabia 350 Execution

Jubail-2 Export Refi nery - Distillation and Hydrotreating Saudi Aramco / Total Tecnicas Reunidas (TR) 1200 Execution

Petrochemical Complex - Polyolefi ns Package SCP Parsons E&C Daelim Industrial Company 1200 Execution

Kayan Petrochemicals Complex at Jubail - PP Package Saudi Basic Industries Corporation (Sabic)/Saudi Kayan Petrochemical Company

Fluor Arabia Ltd., Saudi Arabia Samsung Saudi Arabia Ltd. 400 Execution

Yanbu Export Refi nery-Offsites & Utilities-Package 8 Saudi Aramco/ ConocoPhilips Kellogg Brown & Root (KBR), Saudi Arabia Not Appointed 125 EPC Bid

Wasea Bulk Plant Saudi Aramco Dar Al Riyadh Architecture & Engineering Sinopec 250 Execution

Kayan Petrochemicals Complex at Jubail - Amines Package Saudi Basic Industries Corporation (Sabic) Saudi Kayan Petrochemical Company

Fluor Arabia Ltd., Saudi Arabia China Technical Consultants Incorporated(CTCI), Taiwan

300 Execution

Dammam 7 - Petrochemicals Complex Dammam 7 Petrochemicals Not Appointed 400 FEED

Ethyl Vinyl Acetate Plant Saudi International petrochemical Company (SIPC)/ Hanwha International Private Ltd.

Not Appointed 800 FEED

Rabigh Refi nery Expansion & Petrochemical Complex - Phase 2 Rabigh Refi ning & Petrochemical Company (Petro-Rabigh)/Sumitomo Corporation

JGC Corporation Not Appointed 4000 Study

Polysilicon Plant in Jubail First Energy Bank/ Cosmos Industrial Investment Corporation/PMD

Not Appointed 1200 EPC Bid

Jubail - 2 Export Refi nery - Aromatics Plant Saudi Aramco / Total Axens Samsung Saudi Arabia Ltd. 650 Execution

Dammam, KSA on 10th-12th October 2010

appointed

the official

show daily

publisher

Advertising in the show daily is the best way to reach exhibitors and visitors at this dedicated show.

Available each morning, every day of the exhibitionDelivered to each exhibitor every day

Available at all entrances to the exhibition for visitors and delegates

For advertising in the show daily, please contact:

Jude SlannCommercial Director

Tel: +971 4 4443693Email: [email protected]

To book a stand at SAOGE, contact:

Giulia MalcangioSAOGE Exhibition Manager

Tel: +39 0761 527976Email: [email protected]

PROJECTS



PROJECTS

Jubail-2 Export Refi nery - Coker Unit Package Saudi Aramco / Total Foster Wheeler Samsung Saudi Arabia Ltd / Chiyoda Corporation

850 Execution

Karan Field Exploration - Platforms Package Saudi Aramco Clough-Zuhair Fayez Partnership J Ray McDermott 500 Execution

Yanbu Export Refi nery - Gasoline Unit Package Saudi Aramco / ConocoPhilips Kellogg Brown & Root (KBR), Saudi Arabia Not Appointed 2300 Execution

Kayan Petrochemicals Complex at Jubail - LDPE Package Saudi Kayan Petrochemical Company / Saudi Basic Industries Corporation (Sabic)

Fluor Arabia Ltd. Daelim Industrial Company,Saudi Arabia 400 Execution

Petrochemical Complex - Ethylene Cracker Package Saudi Chevron Phillips Petrochemical Company (SCP)/ Saudi Polyolefi ns Company (SPC)

Parsons Engineering Corp. JGC Corporation,SaudiArabia 1200 Execution

Karan Field Exploration - Onshore Elements Package - Gas Facilities Saudi Aramco Foster Wheeler /A. Al Saihati , A. Fattani & Al Othman Consulting Engineering Company (Sofcon)

Hyundai Engineering & Construction Company (HDEC)/ Petrofac

600 Execution

Jazan Economic City Export Refi nery Ministry of Petroleum and Mineral Resources

Not Appointed 12000 Concept

Petrochemical Complex - Polymer Package Saudi Chevron Phillips Petrochemical Company (SCP)/ Saudi Polyolefi ns Company (SPC)

Parsons Engineering Corp. Daelim Industrial Company/JGC Corporation

5000 Execution

Al Khafji Oil Processing Facilities Expansion Al Khafji Joint Operations (KJO) Not Appointed 400 EPC Bid

Yanbu Export Refi nery - Hydrocracker Package Saudi Aramco/ConocoPhilips Kellogg Brown & Root (KBR) Not Appointed 1200 Execution

Jubail-2 Export Refi nery - Storage Tank Package Saudi Aramco / Total Technip, Saudi Arabia Punj LIoyd Ltd / Petro Steel 1000 Execution

Karan Field Exploration - Offshore Elements Package Saudi Aramco Petrocon Arabia, Saudi Arabia J Ray McDermott 1000 Execution

Fertiliser Complex Expansion at Jubail - Urea & Ammonia Plant Saudi Arabian Fertilizer Company (Safco) Not Appointed 150 FEED

Dammam Oil Field Development Saudi Aramco Not Appointed 1000 Study

Jubail - 2 Export Refi nery - Plant Utilities Package Saudi Aramco / Total Technip SK Engineering & Construction 150 Execution

Manifa Oil Field Redevelopment - Onshore Package Saudi Aramco Foster Wheeler JGC Corporation / TR / Snamprogetti 2360 Execution

Yanbu Export Refi nery - Offsite Pipelines Package Saudi Aramco Not Appointed 300 Execution

Pipeline from Ras Tanura to Riyadh Saudi Aramco Nacap-Suedrohrbau, Saudi Arabia 350 Execution

ASU at Jubail National Industrial Gas Company (GAS) Samsung Saudi Arabia Ltd. 300 Execution

Yanbu Export Refi nery - Tank Farm - Package 5 Saudi Aramco/ ConocoPhilips Kellogg Brown & Root (KBR), Saudi Arabia Not Appointed 900 Execution

Yanbu Export Refi nery - Battery Limits and Solids Handling - Package 6 Saudi Aramco / ConocoPhilips Kellogg Brown & Root (KBR), Saudi Arabia Not Appointed 450 EPC Bid

Upgrade of the Oil Refi nery at Yanbu Samref Worley Parsons, Saudi Arabia Worley Parsons, Saudi Arabia 2000 Execution

UNITED ARAB EMIRATESProject Title Client Consultant EPC Contractor Budget ($M) Status

Replacement of Oil & Water Pipelines Adma - Opco Technip / Worley Parsons, Abu Dhabi Costain 900 Execution

Umm Al Lulu Oil Field Development Adma -Opco Fluor Corporation, Abu Dhabi Not Appointed 1500 EPC Bid

Borouge Complex Expansion - Phase 3 - Offsites & Utilities Package Abu Dhabi Polymers Co. (Borouge) Tecnimont SpA, Abu Dhabi Hyundai Engineering & Construction Company, Abu Dhabi

935 Execution

Zirku Production Facilities Debottlenecking Zadco Technip Not Appointed 450 EPC Bid

Crude Oil Pipeline Replacement Zadco Not Appointed 300 EPC Bid

OGD-3/ AGD-2 - Pack 2 GASCO Bechtel Bechtel 1460 Execution

OGD-3/ AGD-2 - Pack 4 GASCO Bechtel Snamprogetti 1420 Execution

Green Diesel Project in Ruwais Takreer Wood Group Mustang GS Engineering & Construction 350 Execution

Umm Shaif Gas Injection Facilities Adma - Opco WorleyParsons Hyundai Heavy Industries 1597 Execution

Base Oil Plant in Abu Dhabi Abu Dhabi Oil Refi nery Company (Takreer); Neste Oil (Finland);

Neste Jacobs / Technip Not Appointed 500 EPC Bid

Zakum West Gas Processing Facilities Project Adma - Opco Technip Technip / NPCC 300 Execution

Asab Full Field Development ADCO Foster Wheeler Petrofac 1000 Execution

Bab Oil fi eld Development - Phase 2 ADCO Technip SK Engineering & Construction Company 805 Execution

LNG Trains Replacement at Das Island ADGAS Not Appointed 3000 Study

Gas Pipeline from Nitrogen Plant to Habshan Oil Field Gasco Dodsal, Abu Dhabi 85 Execution


PROJECTS


Sahil Phase-2 Development ADCO Foster Wheeler Tecnicas Reunidas / CCC 250 Execution

Onshore and offshore Sour Gas Development ADNOC / ConocoPhilips Fluor Corporation Saipem / Samsung Engineering/ Tecnicas Reunidas/Punj Lloyd/Al Jaber Group

10000 Execution

IGD - Gas Processing Platform - Pack 6 Adnoc / Adma-Opco Fluor Corporation Abu Dhabi NPCC 405 Execution

Flowlines & Wellhead Installations to ADCO ADCO Mott MacDonald, Abu Dhabi Al Husam General Contracting 100 Execution

Fertil Plant Expansion Fertil Jacobs Engineering Samsung / Uhde 1200 Execution

OAG Network-Das Island Compression Facilities Adgas Fluor Corporation Technip 610 Execution

Zakum Central Super Complex - Seawater Injection Facilities Adma-Opco Technip, Abu Dhabi J Ray McDermott, Dubai 400 Execution

OAG Network-Pack 3 - Ras Al Qila to Habshan Pipeline Gasco Fluor Corporation CCC 400 Execution

OGD-3/ AGD-2 Pack 3 GASCO Bechtel Bechtel 1241 Execution

Borouge Complex Expansion - Phase 2: Ethane Cracker AUH Polymers Company Linde 1100 Execution

Development of Bab, Qusahwira & Bida Al-Qemzan Fields ADCO Washington Group International / Veco Engineering

National Petroleum Construction Company

1800 Execution

Sour Gas Development - NGL Transport Pipeline ADNOC Fluor Corporation, Abu Dhabi Saipem S.p.A, Abu Dhabi 196 Execution

Asab Gas Development (AGD) Modifi cations - Package 1 GASCO Veco Engineering Technip 408 Execution

Inter Refi neries Pipeline Project at Ruwais - 2nd Stage - Pipeline Abu Dhabi Oil Refi nery Company (Takreer) Technip, Abu Dhabi Not Appointed 700 EPC Bid

Borouge Complex Expansion - Phase 3 - LDPE Plant Abu Dhabi Polymers Co. (Borouge) Tecnimont SpA, Abu Dhabi Technimont / Samsung Engineering 400 EPC Bid

Interconnecting Pipelines in Fujairah Oil Terminal 2 Port of Fujairah Nico International 100 Execution

Sour Gas Development - Sulphur Pipeline Abu Dhabi National Oil Company (ADNOC); ConocoPhilips;

Fluor Corporation, Abu Dhabi Not Appointed 125 Concept Stage

Expansion of Ruwais Refi nery - Package 3 Abu Dhabi Oil Refi nery Company (Takreer) Foster Wheeler, Abu Dhabi Samsung Engineering 2700 Execution

PTA & PET Complex in Abu Dhabi IPIC /CPC Not Appointed 1000 Concept Stage

Borouge Complex Expansion - Third Polyolefi n Plastics Project Abu Dhabi Polymers Co. (Borouge) Tecnimont SpA / Jacobs Engineering Technimont / Samsung Engineering 3000 Execution

Upper Zakum - Fujairah Oil Pipeline IPIC/Conoco Phillips WorleyParsons China Petroleum Construction Corporation

3290 Execution

Expansion of Ruwais Refi nery - Package 4 Abu Dhabi Oil Refi nery Company (Takreer)

Foster Wheeler, Abu Dhabi Daewoo Engineering & Construction Ltd. 1200 Execution

Sour Gas Development - Gas Processing Plant Abu Dhabi National Oil Company (ADNOC); ConocoPhilips;

Fluor Corporation, Abu Dhabi Saipem 1900 Execution

Sour Gas Development - Sulphur Recovery Unit Abu Dhabi National Oil Company (ADNOC); ConocoPhilips;

Fluor Corporation, Abu Dhabi Saipem 1450 Execution

Integrity Enhancement of Fire Protection System at Umm Al Nar Refi nery Takreer Not Appointed 15 EPC Bid

Integrated Gas Development (IGD) - Das Island Process & Utilities Package Adnoc / Adgas Fluor Corporation Hyundai Heavy Industries(HHI),Abu Dhabi 1000 Execution

Satah Full Field Development Zadco Tebodin Middle East, Abu Dhabi Not Appointed 250 FEED

Expansion of Sulphur Handling Facility in Ruwais - Phase 3 Takreer Washington Group Int'l Dodsal 272 Execution

Sour Gas Development - Offsites & Utilities Abu Dhabi National Oil Company (ADNOC); ConocoPhilips;

Fluor Corporation, Abu Dhabi Samsung 1500 Execution

Sour Gas Development - Sulphur Handling Terminal Abu Dhabi National Oil Company (ADNOC); ConocoPhilips;

Fluor Corporation, Abu Dhabi Not Appointed 450 EPC Bid

Expansion of Ruwais Refi nery - Package 1 Takreer Bechtel SK Engineering & Construction Company 2100 Execution

Expansion of Ruwais Refi nery - Package 2 Takreer Bechtel GS Engineering & Construction 3100 Execution

New SCADA System at Umm Shaif and Lower Zakum Adma - Opco WorleyParsons Telvent 50 Execution

Integrated Gas Development (IGD) - Ruwais Storage Tanks Package Gasco / Adnoc Fluor Corporation Chicago Bridge & Iron (CB&I), Dubai 533 Execution

NGL Pipeline from Asab to Ruwais Gasco VECO Dodsal 153 Execution

Gas Injection Topsides at Upper Zakum Zadco Technip Not Appointed 12 FEED

Shah Full Field Development Adco Foster Wheeler CCC / Tecnicas Reunidas 250 Execution

Integrated Gas Development (IGD) - Ruwais 4th NGL Train Package ADNOC / Gasco Fluor Corporation, Abu Dhabi Petrofac International / GS Engineering & Construction

2100 Execution

Refi nery in Fujairah IPIC Foster Wheeler Not Appointed 5000 Study

RIG STATISTICS

September 2010 Oil&Gas Middle East 77www.arabianbusiness.com

Rigzone report on current rig contracts by operator Information is supplied by RigZone.com

RIG STATISTICS

RED SEA

Manager Rig Type Current Status Current Region Rig Name

Atwood Oceanics Jackup Drilling MidEast - Red Sea Atwood Aurora

Diamond Offshore Jackup Workover MidEast - Red Sea Ocean Heritage

Diamond Offshore Jackup Drilling MidEast - Red Sea Ocean Spur

Egyptian Drilling Platform Rig Drilling MidEast - Red Sea EDC 34

Egyptian Drilling Jackup Drilling MidEast - Red Sea Kamose

Egyptian Drilling Jackup Workover MidEast - Red Sea Zoser

KS Energy Services Ltd. Jackup Ready Stacked MidEast - Red Sea Bennevis

Maersk Drilling Jackup Drilling MidEast - Red Sea Maersk Endurer

Rowan Jackup Drilling MidEast - Red Sea JP Bussell

Saipem Jackup Ready Stacked MidEast - Red Sea Perro Negro 4

Transocean Ltd. Jackup Drilling MidEast - Red Sea GSF Adriatic X

Transocean Ltd. Jackup Drilling MidEast - Red Sea GSF Key Singapore

Transocean Ltd. Jackup Cold Stacked MidEast - Red Sea GSF Rig 103

Transocean Ltd. Jackup Drilling MidEast - Red Sea GSF Rig 105

Transocean Ltd. Jackup Drilling MidEast - Red Sea GSF Rig 141

Transocean Ltd. Jackup Cold Stacked MidEast - Red Sea Interocean III

Transocean Ltd. Jackup Drilling MidEast - Red Sea Transocean Comet

Transocean Ltd. Jackup Cold Stacked MidEast - Red Sea Transocean Mercury

PERSIAN GULF


Aban Offshore Jackup Drilling MidEast - Persian Gulf Aban VI

Aban Offshore Jackup Ready Stacked MidEast - Persian Gulf Aban VII

Aban Offshore Jackup Drilling MidEast - Persian Gulf Aban VIII

Aban Offshore Jackup Drilling MidEast - Persian Gulf Deep Driller 2




Arabian Drilling Jackup Drilling MidEast - Persian Gulf Arabdrill 17

Arabian Drilling Jackup Ready Stacked MidEast - Persian Gulf Arabdrill 22



BassDrill Ltd. Tender Ready Stacked MidEast - Persian Gulf BassDrill Alpha

China Oilfi eld Services Ltd. Jackup Drilling MidEast - Persian Gulf COSLCraft

China Oilfi eld Services Ltd. Jackup Drilling MidEast - Persian Gulf COSLForce

China Oilfi eld Services Ltd. Jackup Drilling MidEast - Persian Gulf COSLPower

China Oilfi eld Services Ltd. Jackup Drilling MidEast - Persian Gulf COSLStrike

China Oilfi eld Services Ltd. Jackup Drilling MidEast - Persian Gulf COSLSuperior

Delba Perforadora Internacional S.A. Semisub Under Construction MidEast - Persian Gulf Delba III

Delba Perforadora Internacional S.A. Semisub Under Construction MidEast - Persian Gulf Delba IV

Egyptian Drilling Jackup Drilling MidEast - Persian Gulf Sneferu

ENSCO Jackup Drilling MidEast - Persian Gulf ENSCO 54


ENSCO Jackup Cold Stacked MidEast - Persian Gulf ENSCO 84




ENSCO Jackup Ready Stacked MidEast - Persian Gulf ENSCO 96

ENSCO Jackup Ready Stacked MidEast - Persian Gulf ENSCO 97

Foresight Group Jackup Drilling MidEast - Persian Gulf Foresight Driller 5

Foresight Group Jackup Cold Stacked MidEast - Persian Gulf Foresight Driller VII

Global Petro Tech Jackup Cold Stacked MidEast - Persian Gulf Global Pearl

78 Oil&Gas Middle East September 2010 www.arabianbusiness.com

RIG STATISTICSRIG STATISTICS


Great Offshore Jackup Ready Stacked MidEast - Persian Gulf Amarnath

GSP Jackup Drilling MidEast - Persian Gulf GSP Atlas

GSP Jackup Drilling MidEast - Persian Gulf GSP Orizont

Gulf Drilling International Jackup Drilling MidEast - Persian Gulf Al Doha

Gulf Drilling International Jackup Drilling MidEast - Persian Gulf Al Khor

Gulf Drilling International Jackup Drilling MidEast - Persian Gulf Al Zubarah

Gulf Drilling International Jackup Modifi cation MidEast - Persian Gulf GULF-2 (Al-Rayyan)

Gulf Drilling International Jackup Drilling MidEast - Persian Gulf GULF-3 (Al-Wajba)

Hercules Offshore Jackup Ready Stacked MidEast - Persian Gulf Hercules 170

Hercules Offshore Jackup Drilling MidEast - Persian Gulf Hercules 261

Hercules Offshore Jackup Drilling MidEast - Persian Gulf Hercules 262

Hercules Offshore Jackup Under Construction MidEast - Persian Gulf MENAdrill Hercules I

Hercules Offshore Jackup Under Construction MidEast - Persian Gulf MENAdrill Hercules II

Japan Drilling Jackup Drilling MidEast - Persian Gulf Sagadril 1

Japan Drilling Jackup Drilling MidEast - Persian Gulf Sagadril 2

KS Energy Services Ltd. Jackup Ready Stacked MidEast - Persian Gulf KS Endeavor

Maersk Drilling Jackup Drilling MidEast - Persian Gulf Maersk Resilient

Maritime Industrial Services Jackup Under Construction MidEast - Persian Gulf MEJU Jackup TBN 2

Mermaid Drilling Tender Enroute MidEast - Persian Gulf MTR-1

Mosvold Middle East Jackup Jackup Under Construction MidEast - Persian Gulf MEJU Jackup TBN 1

Nabors Offshore Jackup Drilling MidEast - Persian Gulf Nabors 240

Nabors Offshore Jackup Workover MidEast - Persian Gulf Nabors 655




Nabors Offshore Jackup Ready Stacked MidEast - Persian Gulf Nabors 867

National Drilling Jackup Modifi cation MidEast - Persian Gulf Al Bzoom

RIG STATISTICS

September 2010 Oil&Gas Middle East 79www.arabianbusiness.com


National Drilling Jackup Drilling MidEast - Persian Gulf Al Ghallan

National Drilling Jackup Drilling MidEast - Persian Gulf Al Hail

National Drilling Jackup Drilling MidEast - Persian Gulf Al Ittihad

National Drilling Jackup Drilling MidEast - Persian Gulf Al Yasat

National Drilling Jackup Drilling MidEast - Persian Gulf Beynouna

National Drilling Jackup Drilling MidEast - Persian Gulf Brakah

National Drilling Jackup Drilling MidEast - Persian Gulf Delma

National Drilling Jackup Drilling MidEast - Persian Gulf Diyina

National Drilling Jackup Drilling MidEast - Persian Gulf Junana

National Drilling Jackup Under Construction MidEast - Persian Gulf NDC Jackup TBN 1



National Drilling Jackup Drilling MidEast - Persian Gulf Yemilah

Navymar Shipping Company Jackup Drilling MidEast - Persian Gulf Oriental 1

NIDC Jackup Drilling MidEast - Persian Gulf Alborz

NIDC Jackup Drilling MidEast - Persian Gulf Alvand

NIDC Jackup Modifi cation MidEast - Persian Gulf Shahid Modarress

NIDC Jackup Drilling MidEast - Persian Gulf Shahid Rajaiee

Noble Drilling Jackup Modifi cation MidEast - Persian Gulf Noble Alan Hay

Noble Drilling Jackup Ready Stacked MidEast - Persian Gulf Noble Charles Copeland

Noble Drilling Jackup Accommodation MidEast - Persian Gulf Noble Chuck Syring

Noble Drilling Jackup Modifi cation MidEast - Persian Gulf Noble David Tinsley

Noble Drilling Jackup Drilling MidEast - Persian Gulf Noble Dhabi II

Noble Drilling Jackup Ready Stacked MidEast - Persian Gulf Noble Dick Favor

Noble Drilling Jackup Accommodation MidEast - Persian Gulf Noble Gene House

Noble Drilling Jackup Accommodation MidEast - Persian Gulf Noble Gus Androes

Noble Drilling Jackup Drilling MidEast - Persian Gulf Noble Harvey Duhaney

Noble Drilling Jackup Drilling MidEast - Persian Gulf Noble Jimmy Puckett

Noble Drilling Jackup Accommodation MidEast - Persian Gulf Noble Joe Beall

Noble Drilling Jackup Modifi cation MidEast - Persian Gulf Noble Kenneth Delaney

Noble Drilling Jackup Modifi cation MidEast - Persian Gulf Noble Roger Lewis

Noble Drilling Jackup Drilling MidEast - Persian Gulf Noble Roy Rhodes

Odebrecht Semisub Under Construction MidEast - Persian Gulf Norbe VI

Pride International Jackup Ready Stacked MidEast - Persian Gulf Pride Hawaii

Pride International Jackup Drilling MidEast - Persian Gulf Pride Montana

Pride International Jackup Drilling MidEast - Persian Gulf Pride North Dakota

Pride International Jackup Cold Stacked MidEast - Persian Gulf Pride Pennsylvania

Rowan Jackup Ready Stacked MidEast - Persian Gulf Arch Rowan

Rowan Jackup Drilling MidEast - Persian Gulf Bob Keller

Rowan Jackup Ready Stacked MidEast - Persian Gulf Charles Rowan

Rowan Jackup Drilling MidEast - Persian Gulf Gilbert Rowe

Rowan Jackup Drilling MidEast - Persian Gulf Hank Boswell

Rowan Jackup Drilling MidEast - Persian Gulf Rowan California

Rowan Jackup Ready Stacked MidEast - Persian Gulf Rowan Middletown

Rowan Jackup Drilling MidEast - Persian Gulf Rowan Paris

Rowan Jackup Drilling MidEast - Persian Gulf Scooter Yeargain

Saipem Jackup Drilling MidEast - Persian Gulf Perro Negro 2


Saipem Jackup Workover MidEast - Persian Gulf Perro Negro 5


Saudi Aramco (NOC) Jackup Drilling MidEast - Persian Gulf SAR-201

Scorpion Offshore Jackup Drilling MidEast - Persian Gulf Offshore Freedom

Scorpion Offshore Jackup Drilling MidEast - Persian Gulf Offshore Intrepid

Thule Drilling ASA Jackup Under Construction MidEast - Persian Gulf Thule Energy

Thule Drilling ASA Jackup Under Construction MidEast - Persian Gulf Thule Force

Thule Drilling ASA Jackup Modifi cation MidEast - Persian Gulf Thule Power

Transocean Ltd. Jackup Drilling MidEast - Persian Gulf GSF High Island II

Transocean Ltd. Jackup Drilling MidEast - Persian Gulf GSF High Island IV

Transocean Ltd. Jackup Drilling MidEast - Persian Gulf GSF Key Hawaii

Transocean Ltd. Jackup Drilling MidEast - Persian Gulf GSF Main Pass I

Transocean Ltd. Jackup Drilling MidEast - Persian Gulf GSF Main Pass IV

Transocean Ltd. Jackup Cold Stacked MidEast - Persian Gulf GSF Rig 127


THE BIG PICTURE

SOUTH PARS: Image shows phase 5 of the South Pars gas field de-velopment in the southern

Iranian port town of Asaluyeh on July 19, 2010 as a top official an-nounced that global energy ma-jors are welcome to help develop oil and gas projects in Iran despite new sanctions imposed on the Is-lamic republic. Earlier this year ArabianOilandGas.com reported that the government of Iran has al-located $5 billion of its internal re-sources for the development of the South Pars gas field in the Persian Gulf. “This sum will be spent for developing phases 20 and 21 of the oil layer of South Pars and setting up the 1000-megawatt Pars Com-bined Cycle Power Plant,” said Pars Oil and Gas Company manag-ing director Ali Vakili.

Gas giant goes nuclear

21st August 2010: The fi rst nuclear fuel rod was loaded into Iran’s Bushehr reactor, 35 years after the project began.

BUSHEHR: This handout image supplied by the Iran International Photo Agency shows a view of

the reactor building at the Rus-sian-built Bushehr nuclear power plant as the first fuel is loaded, on August 21, 2010 in Bushehr, southern Iran. The Russian built and operated nuclear power sta-tion has taken 35 years to build due to a series of sanctions im-posed by the United Nations. The move has satisfied International concerns that Iran were intend-ing to produce a nuclear weapon, but the facility’s uranium fuel will fall well below the enrichment level needed for weapons-grade uranium. The plant is likely to begin electrictity production in a month.

US$5 billion has been earmarked by Iran for the development of its South Pars Gas Field.

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Oil & Gas Middle East - Sept 2010