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www.oilreview.me VOLUME 17 | ISSUE 6 2014 Serving the regional oil & gas sector since 1997 7 Managing contractual risk to prevent cost overruns Khalid Al-Falih, CEO of Saudi Aramco, has announced a US$40bn a year investment programme See page 52 Covering Oil, Gas and Hydrocarbon Processing UK £10, USA $16.50 Saudi Aramco’s expansion plans Tackling the talent crunch Effective fire detection and prevention solutions Increasing oil supply through EOR Cutting the operational costs of compressors Harnessing the benefits of the Intelligent Field

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Page 1: Oil Review Middle East 6 2014

www.oilreview.me

VOLUME 17 | ISSUE 6 2014

Serving the regional oil & gas sectorsince 1997

7

Managing contractualrisk to prevent cost overruns

Khalid Al-Falih, CEO of Saudi Aramco, hasannounced a US$40bn a year investment programmeSee page 52

Covering Oil, Gas andHydrocarbon ProcessingUK £10, USA $16.50

Saudi Aramco’sexpansion plans

Tackling the talentcrunch

Effective fire detectionand prevention solutions

Increasing oil supplythrough EOR

Cutting the operationalcosts of compressors

Harnessing the benefitsof the Intelligent Field

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www.oilreview.meemail: [email protected]

Issue 6 2014 oilreview.me 3

Serving the world of business

WE FOCUS ON Saudi Arabia in this issue, as Saudi Aramco ploughs aheadwith a US$40bn a year investment programme to maintain its status as theworld’s top ranking oil producer, as well as increasingly diversifying its portfolio.The oil giant is also increasingly focusing on R&D, as is petrochemicalscompany SABIC, with collaboration increasingly sought in this area. Our feature on Recruitment & Retention underlines the continuing need

to address critical issues that impact the industry such as the skills gap, aswell as some recent initiatives to promote increased participation of womenin the oil and gas sector. Our HR Forum: Oil & Gas, to be held in Dubai inNovember, will feature panels of expert speakers and will provide anopportunity to explore some of these areas in depth.As always we bring you news of the latest oil and gas related

developments as well as features and analysis on topical issues. I welcomeyour feedback.

Editor’s note

Exploration & Production6 Developments

A detailed round-up of the latest E&Pnews from around the region

Gas12 Developments

The latest news on gas projects fromaround the region

Calendar16 Executives’ calendar and event

news

Analysis20 LNG in the Middle East

Developments in the LNG markets andfuture prospects

24 Rig refurbishment todayRig repair and refitting is big business inthe Gulf, with the UAE at the centre ofactivities

Health & Safety30 Effective fire detection

The challenges of fire detection for the oiland gas industry and potential solutions

Risk Management34 Contractual risk management

Shrinking margins and declining returnson assets make excellence in capitaldiscipline essential

Recruitment & Retention38 Breaking down the barriers for

women in oil and gasRecent initiatives to promote furtherparticipation of women in the industry

Petrochemicals46 Developments

The latest news on petrochemicalsprojects from around the region

Saudi Aramco52 Saudi Aramco pushes ahead

Spearheading a US$40bn a yearinvestment programme

56 Saudi Aramco grows its presence inchemicalsThe company is becoming a globalcompetitor in chemical products

Saudi Arabia64 Saudi shale boom shifts energy

narrativeSaudi Arabia is developing its shale sector as an engine for development

Technology80 Hacking into the region’s

cybersecurity threatMinimising the risk of cyber attacks

90 Harnessing the benefits of theIntelligent FieldDeploying the new technologies andpractices relating to the Intelligent Fieldcan help companies achieve their goals

Innovations92 Industry developments

A round-up of the latest product advancements in oil and gas

104 Rig count / project databank

Arabic4 News / Analysis

Contents

Editor: Louise Waters

Editorial and Design team: Bob Adams, Prashant AP, Hiriyti Bairu, Sindhuja Balaji, Andrew Croft, Ranganath GS,Rhonita Patnaik, Louise Quick, Prasad Shankarappa, Zsa Tebbit, Nicky Valsamakis and Ben Watts

Publisher: Nick Fordham

Publishing Director: Pallavi Pandey

Magazine Sales Manager: Camilla Capece +971 4 448 9260 +971 4 448 9261 [email protected]

International Representatives

China Ying Mathieson (86) 10 8472 1899 - (86) 10 8472 1900 [email protected]

India Tanmay Mishra (91) 80 65684483 (91) 80 40600791 [email protected]

Nigeria Bola Olowo (234) 8034349299 [email protected]

South Africa Annabel Marx (27) 218519017 (27) 46 624 5931 [email protected]

UK Steve Thomas (44) 20 7834 7676 (44) 20 79730076 [email protected]

USA Michael Tomashefsky (1) 203 226 2882 (1) 203 226 7447 [email protected]

Head Office: Alain Charles Publishing LtdUniversity House, 11-13 Lower Grosvenor Place, LondonSW1W 0EX, United Kingdom +44 (0) 20 7834 7676 +44 (0) 20 7973 0076

Middle East Regional Office:Alain Charles Middle East FZ-LLCOffice 215, Loft 2A, P.O. Box 502207, Dubai Media City, UAE +971 4 448 9260, +971 4 448 9261

Production: Nikitha Jain, Nathanielle KumarDonatella Moranelli, Nick Salt, Erica Sesay and Sophia White - [email protected]

Subscriptions: [email protected]

Chairman: Derek Fordham

Printed by: Emirates Printing Press, Dubai.

© Oil Review Middle East ISSN: 1464-9314

Arabic front cover pic courtesy of Saudi Aramco

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OIL PRICES FELL sharply in August, thesecond consecutive monthly decline, due toplentiful crude supply and slowing demandgrowth, according to the International EnergyAgency's (IEA) latest monthly report. A strongUS dollar also added pressure, making oilmore expensive for buyers using othercurrencies. ICE Brent futures tumbled belowUS$100 bbl on 8 September for the first timein over a year, as US production continued tosurge and OPEC output remained above itsofficial 30mn b/d supply target. Despite the conflicts in Iraq and Libya

showing no sign of abating, their effect onglobal oil market balances and pricesremains muted. Exports from Libya arerecovering despite ongoing violence, whileIslamist militants that swept throughnorthern Iraq have yet to trigger a majoroutage in OPEC’s second-biggest producer.

OPEC output in August was just slightlydown from July due to lower Saudi andIraqi production. The latest dip in Saudisupply seems primarily to reflect reducedimport demand from US refiners as well asweaker-than-expected crude demand inEurope and Asia.Latest statistics show that demand

growth slowed to below 500 kb/d year-on-year in Q2 2014 for the first time in two anda half years. Demand projections for Q32014 have been revised downwards, as haveforecasts for 2014 and 2015 as a whole.Although demand growth is still expected togain momentum, the expected pace ofrecovery is now looking more subdued, saidthe IEA.Saudi exports are likely to have run below

7mn b/d for the last four months, theirlowest level since September 2011. Exports

to the US led the drop amid rising Saudidomestic demand for crude burn andrefinery runs. State oil company SaudiAramco appears to be pricing oil out of theUS market by ratcheting up Official SellingPrices to North America, while those to Asiahave come off, likely setting the stage for abroad rebalancing of trade flows, accordingto the IEA.

Oil prices fall as demand growth slows

Oil prices fell sharply in August(photo: DHL)

Market News

4 oilreview.me Issue 6 2014

Source: IEA

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11:45

WHILE IRAQ IS considered one of themajor oil producers in the world, animminent water shortage mightjeaopardise the country’s productioncapabilities. A report in Reuters statedthat a multibillion dollar seawater injectionproject, considered core to Iraq’s oilproduction, is entangled in red tape.

The project was announced in 2010and is being helmed by Iraq’s South OilCompany. Through the seawater injectionproject, oil can be flushed to the surfaceto overcome decline in production inoilfields like Rumaila, West Qurna, Zubairand Majnoon. The first phase of theproject is designed to pump 5.2mn bpd oftreated seawater from the Gulf to thefields. Shortage of water in Iraq isespecially hampering production at twomain southern fields – West Qurna-1 andZubair, said official and industry sources.Output from West Qurna-1, operated byExxonMobil, has fallen almost 40 per centto around 300,000 bpd compared to 2013.ENI-run Zubair oilfield’s production was at280,000 bpd. A source at the state-runSouth Oil Company said production fromZubair had fallen, but declined to givefurther details. The water injection project, which was

supposed to be completed by 2013, is notdue to come online before 2018 or 2019,added sources. Oil executives have alsostated that procuring approved contractsfor service work, such as building newpipelines and drilling wells, as well asgetting visas and customs clearance arealso not easy. Officials confirmed thedecrease in oil production but there hasbeen no update on the status of theseawater injection project. Now, young oilfields such as Lukoil’s

West Qurna-2 and and Royal Dutch Shell’sMajnoon may start feeling the pressure by2016 or 2017 as they need water tomanage their reservoirs and lift output,added industry sources said.

OMAN’S IBD GROUP signed a preliminaryagreement with the government of Argentina toexplore possibilities of setting up a heavy oilrefinery in the South American country. TheArgentinian government was represented by itsembassy in Rome. The agreement was signedin Rome on 1 September 2014, stated theMuscat Daily. IBD was represented by its CEO SayyidMohamed al Said. The Argentinian delegationincluded Doris Capurro, vice president ofcommunications at Argentina’s state-owned oiland gas company YPF, food and agricultureproducer Claudio Andreoli, president ofArgentina’s general economic federation IderJose Pedretti and eminent businessman EduardoEurnekian, stated IBD in a press release. TheIBD delegation included Nader Zaid, businessdevelopment director, and Stefano Donzelli,manager of sales at Foster Wheeler Italy, whichalready is in a joint venture in Oman with IBD.“In collaboration with our alliance partner,

Foster Wheeler Engineering Co, a leader inrefinery technology and currently executing

FEED for the Duqm Refinery, we are confident ofthe right partner to assess the viability of therefinery,”said al Said. The refinery development,if proven viable, will be extended intopetrochemical industries and fertiliser plants, astatement added. Besides the refinery, theagreement would allow IBD to explorepossibilities of developing and utilising shale gasreserves recently discovered in Argentina,which are considered to be among the largest inthe world.

EGYPT HAS SIGNED oil andgas exploration deals worthUS$187mn, stated thecountry’s petroleum ministry. According to Reuters, the

agreements cover sevenexploration areas. Germany’sRWE won two explorationblocks in the Gulf of Suez,Tunisia’s HBSI, Canada’sTransGlobe and Italy’s Edisonsecured five blocks in Egypt’swestern desert.In December 2013, Egypt’s

General PetroleumCorporation (EGPC) and Natural Gas Holding Company (EGAS) announced an internationalauction for oil and gas exploration concessions in the Suez Canal, Egypt’s western desert, theMediterranean sea and the Nile Delta. However, exploration companies have been hesitant to develop untapped gas pockets in

Egyptian waters, partly because the amount paid by the government barely covers theirinvestment costs. On the other hand, Egypt’s energy costs have been rising due to highsubsidies on fuel. The report added that the country has started repaying some of its debt(amounting to nearly US$6bn) to foreign oil companies.

Seawater to be used tomaintain Iraqi oil production

NORWEGIAN OFFSHORE MARINE and engineering consultancy Aqualis Offshore hassigned a contract with Saudi Aramco to provide rig moving services.According to the deal, Saudi Aramco’s jack-up rigs operating in the Gulf will receive

moving services and personnel support from Aqualis' office in the Middle East.The deal will last until 2017 but the value of the contract has not been disclosed,

added local reports. “We may be a young company, but our team consist solely of highly experienced

personnel with 10 to 30 years’ of offshore experience. The experience has secured thisprestigious and strategically important contract,” said David Wells, CEO of Aqualis ASA.

Egypt signs oil exploration deals for US$187mn

Aqualis Offshore signs contract with Saudi Aramco

Oman’s IBD Group hoping to build oil refinery in Argentina

Egypt has begun repaying its debtsto foreign oil companies, whichamount to nearly US$6bn

E&P

Iraqi oilfields require water to maintainproduction levels

IBD might build an oil refinery in Argentina

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The Emerson logo is a trademark and a service mark of Emerson Electric Co. © 2014 Emerson Electric Co.

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11:45

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CHINA IS TURNING out to be one of thelargest importers of oil from the MiddleEast. Research done by the BrookingsInstitution has revealed that Chinaimported 2.9mn bpd of Middle Eastern oilin 2011, which accounted for 60 per centof China’s oil imports. Comparitively, theUSA imported 2.5mn bpd from theMiddle East in 2011, accounting for 26per cent of US oil imports. Energy demands in China have been

growing, placing greater stress on itsenergy reserves. The US EnergyInformation Administration (EIA) hasestimated that China accounted for nearlya third of the global oil demand growth in2013. For 2014, the EIA expects Chinawill surpass the US in net oil imports onan annual basis.

Overall, China imports 5.6mn bpd, ofwhich half comes from the Gulf region,with Saudi Arabia, Oman and Iraq theleading providers of oil to China. Much ofthe country's oil and gas imports arethrough the sea, with the Strait ofHormuz and Strait of Malacca as the keypassages. For the past decade, SaudiArabia has been the top supplier of oil toChina. Now, Iran and Iraq are showingveritable reserves of oil.One of the main reasons behind the

dependence on oil from the Gulf is thatChina has not developed its ownreserves. In addition, the US has startedrelying on its own reserves of oil andshale. According to a report in the WallStreet Journal, the US will halve itsreliance on oil from the Middle East bythe end of the decade and completelywean itself off it by 2035. The Middle East will, however,

continue to play a crucial role in thedecisions of US foreign policy makersdue primarily to its influence on globalprices, observed Carlos Pascual, energyofficial at the US State Department.

Source: The Brookings Institution

KEPPEL FELS LIMITED has signed a contract withQatar’s Gulf Drilling International (GDI) for US$227mnto build a jackup rig.According to officials from Keppel FELS Limited, thejackup rig is a repeat high-specification KFELS BClass, which would be named Halul. It would bechartered to Qatar Petroleum (QP) for five years and isscheduled to be delivered to them by Q1 2016. Inaddition, GDI also has options for two more rigs fordelivery in 2017, the officials added. Halul is the fifthKFELS B Class jackup rig ordered by GDI. The fourth rig called Dukhan was delivered in August 2014.Other rigs include Les Hat, Al Khor and Al Zubarah. Halul will be designed to operate in and adapt to the temperature and conditions in the Middle East.The rig is equipped with larger spud cans for reduced bearing pressure and it can cover larger areas,especially in seabeds where soft soil is predominant. The rig can drill wells through 9,144 metres. Itfeatures offline stand building capabilities and 7,500 PSI mud pumps, with accommodation for 150people, revealed Keppel FELS in a statement. Wong Kok Seng, managing director of Keppel O&Moffshore, “We are pleased to have been chosen by GDI to build another benchmark jackup rig. TheKFELS B Class has established itself as a reliable high specification jackup rig for the Middle East withmore than 10 such rigs successfully operating there.”Aside from providing rigs, the company’s Qatari shipyard, the Nakilat-Keppel O&M, is supporting GDIwith the construction of a liftboat and the maintenance of a rig fleet, added Seng.

INDONESIAN OIL AND gas company PT Pertamina inaugurated a drilling rig, that will beused for oil exploration projects in Algeria.The rig, produced by PT Citra Tubindo Engineering, was designed in February 2014 and

will be handed to PT Pertamina in October 2014. Costing US$26mn, the rig is 10 per centless expensive than imported oil rigs used bythe company, said Pertamina officials.The company operates 65 per cent of

Block 405A offshore Algeria. According toThe Jakarta Post, Pertamina acquired oil andgas assets in Algeria from ConocoPhilips forUS$1.75bn. It also purchased a 10 per centparticipating interest in the West Qurna-1block in Iraq from ExxonMobil Iraq Limited in 2013. PT Pertamina is exploring oil and gas

assets in the Middle East, in an attempt toease dependency on energy imports, addedThe Jakarta Post.

China largest importer of Middle Eastern oil

CANADA-BASED company WesternZagros Resources Limited has resumed field operations onthe Garmian and Kurdamir blocks, following the stabilisation of industry conditions and return ofthird party oilfield services in the Kurdistan Region of Iraq (KRI). In August 2014, the company withdrew non-essential personnel from field locations and

company branches, after consulting with the Ministry of Natural Resources in the KurdistanRegional of Government. The company’s operations remain safe in the KRI, confirmedofficials from WesternZagros Resources Limited. Simon Hatfield, CEO of WesternZagros Resources Limited, said, “We look forward to

completing the Sarqala-1 work over, the testing of Hasira-1, and the further development ofthe existing production facilities on the Garmian Block. On the Kurdamir Block, followingthe submission of the Development Plan on 31 August 2014, we look forward to spuddingour first horizontal well at Kurdamir-4.”

PT Pertamina inaugurates drilling rig to explorefor oil in Algeria

WesternZagros Resources resumes field operations in Iraq

Keppel FELS signs contract worth US$227mn with GulfDrilling International

The drilling rig will used to explore for oiloffshore Algeria

E&P

China imports 5.6mn bpd annually

Keppel FELS hasbuilt five jackup rigsfor GDI

8 oilreview.me Issue 6 2014

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THE ORGANISATION OF PetroleumExporting Countries (OPEC) released itsAugust report, according to which theOPEC Reference Basket fell by US$2.28to US$105.61 per barrel, amid worriesregarding supply disruption and weaker-than-expected refinery crude demand inAsia and Europe.

Nymex WTI in July lost US$2.75 tostand at US$102.39 per barrel and ICEBrent slipped US$3.78 to US$108.19 perbarrel. Global economic growth for 2014and 2015 remained unchanged at 3.1 percent and 3.4 per cent respectively. Thiswas above the expected GDP numbers inthe US, which led to an upward revisionto this year’s US GDP growth forecast totwo per cent from 1.6 per cent. This alsolifted the Organisation for Economic Co-operation and Development (OECD)forecast for 2014 to 1.8 per cent from 1.7per cent, while 2015’s OECD growthforecast remains at two per cent. Thepositive developments in the OECD havebeen counterbalanced by downwardrevisions mainly for Latin Americaneconomies. Growth forecasts for Chinaand India remain unchanged. The forecastfor world oil demand growth in 2014 hasbeen revised down slightly to 1.10mn bpd,following a weaker performance of theOECD in Q2 2014. For 2015, demandgrowth is expected to be around 1.21mnbpd, in line with the previous report.The report added that the summer

season has lent support to the gasolinemarket in the Atlantic Basin. Increasinginventories and higher refinery runs areexerting pressure on the US market.European margins have shown atemporary recovery on the back of fallingBrent crude prices. In Asia, strong lightdistillate demand offset increasingsupplies of the product with severalrefineries back from maintenance,preventing a further decline in margins.

GE OIL & Gas and Petrojet Egypt inaugurated the 1,000thAPI-certified sucker rod pumping unit in Cairo. GE’s well performance services (WPS) includes the Lufkinproduct line, which has historically focused onmanufacturing artificial lift solutions including beampumping systems, hydraulic pumping units, plunger lifts,gas lifts, progressive cavity systems, automationequipment, as well as well optimisation and services for the oil and gas sector.The 1,000th pumping unit manufactured locally in Egypt by Petrojet is a milestone for the company,highlighting its competencies in meeting the requirements of the Egyptian domestic oil and gas sector,stated officials from GE. Rami Qasem, president and CEO of GE Oil & Gas for the Middle East, North Africa and Turkey, said,“One of the core commitments of GE to Egypt is to promote localised manufacturing that strengthensthe domestic supply chain for the oil and gas sector. The achievement by GE’s WPS highlights ourability to deliver advanced technological solutions to our customers faster as well as provide them therequired support services locally.” Petrojet’s key fabrication facility is located in Kattamia, and hasbeen manufacturing process static equipment for oil and gas plants for 25 years. GE officials addedthat a two-day training event would be conducted, which would include progressive cavity pumps,gas, plunger and hydraulic lifts, beam pumping systems, electric submergible pumps and surfacepumping systems, GE well automation and optimisation and GE Power to Lift solutions.

A JOINT VENTURE (JV) comprising Petroceltic International PLC and US-based EdisonInternational has emerged as the succesful bidder for the North Port Fouad block, locatedoffshore the Nile Delta in Egypt. The North Port Fouad also lies adjacent to the North ThekahBlock, which was awarded to a Petroceltic and Edison JV in 2013. The combined area of bothlicences exceeds 7,000 sq km, stated officials from Petroceltic International.

Regional and seismic evidence indicates that Nile Delta oligocene and levantine basinmiocene plays are likely to be present in North Port Fouad. Major hydrocarbon discoveries

have been reported in both plays in recent years.Petroceltic International has a 50 per cent non-operated interest in North Port Fouad, which has aninitial three-year term. The three-year term entailsthe acquisition of 1,000 sq km of 3D seismic data.The new licence will be formally awarded in early

2015 following the ratification and finalisation of theproduction sharing contract. Brian O’Cathain, chiefexecutive of Petroceltic, said, “We are delighted tohave been awarded the North Port Fouad Block,which along with the North Thekah, gives Petrocelticaccess to a substantial acreage position in the outerNile Delta and Levantine Basin plays.”

OPEC’s August 2014 reportreveals price fall

GULF DRILLING INTERNATIONAL (GDI) has signed US$1.4bn worth of contracts withQatar Petroleum (QP) for the provision of onshore and offshore rigs.Each of the four new contracts and four contract extensions GDI signed with QP has a

five-year term, said officials from GDI. The new contracts have been concluded for theprovision of two new offshore drilling rigs Dukhan and Halul and two new land rigs GDI-7and GDI-8. The contract extensions allow the continuation of services performed by fourland rigs GDI-1, GDI-2, GDI-3 and GDI-4. Mohammed bin Saleh Al-Sada, managing director of QP, said, “The new contracts will

allow continuing, as well as expanding, the important development work QP isundertaking. Each of the contracted rigs is being customised to meet the best in classcriteria specified by QP.”

Petroceltic International and Edison Internationalto explore Egyptian oilfield

Gulf Drilling International and Qatar Petroleum signcontracts worth US$4.1bn

GE and Petrojet Egypt inaugurate1,000th sucker rod pumping unit

The JV also operates an adjacent block

E&P

OPEC’s headquarters in Vienna

Petrojet’s fabrication unit is in Kattamia

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EGYPT HAS SIGNED a US$500mn loanwith the World Bank to provide natural gasto households in Egypt.Najla Ahwani, minister of international

cooperation in Egypt, said, “The loan willhelp fund a Petroleum Ministry plan toconnect 850,000 houses, particularly inrural Upper Egypt, to a natural gas grid.”According to a ministry statement,

Egypt will pay back the World Bank loanover a 30-year period, with a f ive-yeargrace period.Hartwig Schafer, bank country director

for Egypt, Yemen and Djibouti, at the WorldBank, said, “Conversion to piped naturalgas will help give households access to asafer, more reliable and cheaper supply ofgas compared to buying LPG cylinders.”The World Bank’s current portfolio in

Egypt comprises 25 projects for a totalcommitment of US$4.9bn.

DOLPHIN ENERGY HAS celebrated reaching a significant production milestone after its announcedthat it has produced five trillion standard cubic feet (scf) of gas since it began operations in 2007.Since achieving full throughput in February 2008, Dolphin Energy has delivered two billion scf ofnatural gas per day to the UAE and Oman, and iscurrently meeting 30 per cent of the UAE’s energyrequirements . “This is a proud moment and is testament to the hardwork and dedication of our teams, the support of andinput from our shareholders and our strategic partnerQatar Petroleum,” said Ibrahim Ahmed Al Ansaari,CEO of Dolphin Energy. “Utilising the skills, experience and expertise we haveat our disposal has made this achievement possible,as has an unstinting commitment to maintaining thehighest levels of asset performance and integrity,safety and security.“This has allowed us to make a significantcontribution to maintaining energy security for thesouthern Gulf region and meet an increase incustomer requirements when the need arises,” headded.Abu Dhabi’s Mubadala Development Company owns51 per cent of Dolphin Energy, with French oil majorTotal and US-based Occidental Petroleum eachowning 24.5 per cent.

DANA GAS SUBSIDIARY Dana Gas Explorations FZE has secured aUS$100mn term facility for the Zora Field Development Projectoffshore Abu Dhabi.The facility will contribute towards the completion of the project

in order to bring the Zora gas field on stream.The Zora gas field spans the territorial waters of Sharjah and

Ajman and comprises a tilted fault block structure with a closure ofsome 25 sq km. Once on stream, Zora will provide an additionalsource of gas for local power generation in the northern emirates,with an expected production capacity of 6,650 boepd.Emirates NBD Bank will act as the global facility agent, term

facility agent, security agent and account bank for the deal, withBarwa Bank acting as the Murabaha investment agent for theShariah tranche of the loan. The repayment for the term facility will

span a period of 15 quarterly investments and will commence in thesecond half of 2015 on completion of the project and once gasproduction has begun, subject to a cash sweep mechanism, DanaGas said.The facility is currently scheduled to mature on 30 November

2018. Up until June 2014, Dana Gas has spent approximatelyUS$49mn as part of the equity financing for the project.Patrick Allman-Ward, CEO of Dana Gas, said, “This financing

agreement demonstrates the confidence leading banks andfinancers have towards the Zora project. The project work isproceeding as per plan and we remain committed towards bringingthe project on stream in the first half of 2015. Natural gas producedfrom the field will provide a much needed source of clean energyfor the benefit of the northern emirates of the UAE.”

Egypt signs US$500mn gas loan with World Bank

Dana Gas secures US$100mn term facility for offshore UAE project

Dolphin Energy passes production milestone

A US$100mn term facility will contribute towards the completionof the Zora Field Development Project (Photo: Icethorn)

Gas

Dolphin Energy Tower in Doha, Qatar

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HONEYWELL’S UOP HAS been selectedby Kuwait Energy Company and itspartners to condition natural gas to meetpipeline specifications, and to recovervaluable natural gas liquids at Iraq’s SIBAgas field.The modular equipment will be used

to process 110mn standard cu/f per dayof natural gas at the field located in thesouth of the country, which will beprocessed via two parallel processingtrains that will begin production in 2015. The UOP solution for the project will

include the supply and installation ofUOP acid gas removal units, UOPCallidus thermal oxidisers, mechanicalrefrigeration, condensate stabilisationand water treatment.Rebecca Liebert, senior vice-

president and general manager of UOP’sgas processing and hydrogen businessunit, commented, “This projectdemonstrates that UOP’s pre-fabricatedmodular equipment is a solution formonetising gas quickly, particularly inchallenging conditions. “UOP modular equipment is designed

to allow Kuwait Energy Company toreduce field construction time, enablingthe company to begin processing gasand earning revenue faster than withtraditional field-built units, while alsolowering its capital and operating costs.”The SIBA gas field is operated by

Kuwait Energy Iraq Ltd., a wholly-ownedsubsidiary of Kuwait Energy Company,and is a joint development projectbetween Kuwait Energy Iraq, TurkishPetroleum Overseas Company, South OilCompany and Missan Oil.

QATAR HAS SIGNED a deal with Turkey to supply the country with 1.2bncu/m of LNG. According to officials, Turkey will import nine tankers of LNG from Qatarbeginning at the end of this year or at the start of 2015.Turkey energy minister Taner Yildiz said, “We are making our preparationsfor the winter. Though, it is little less than what we wanted.”Sources said that Turkey last week received only about 30 per cent of its oildemand from Russia because of a drop in pressure in its western import line,creating fears that the country would experience further cuts during itswinter months.Matthias Keuchel, head of gas operations at Enerjisa, warned that theTurkey’s daily gas demand during winter could rise to 215mn cu/m, withcurrent infrastructure only capable of supplying 193mn cu/m.In 2013, Qatar had raw gas reserves totalling 247 trillion cu/m — the third

largest after Russia and Iran. Around 52.6 per cent of its gas production wasallocated to LNG exports.

THE LARGEST GAS storage facility in the Middle East has been launched in the northeast of Iran. The Shourijeh gas facility, located in the province of Razavi Khorasan, has the capacity to

supply 20mn cu/m of gas per day during winter months and will increase Iran’s gas deliverycapacity to 10mn cu/m of gas per day during its first phase. Approximately seven million cu/m of gas per day is currently being injected into the facility,

which has a storage capacity of 4.8bn cu/m of natural gas.The facility will transfer gas to provinces throughout Iran, including North Khorassan,

Khorassan Razavi, Mazandaran, Gilan and Ardebil.

Kuwait Energy Company selectsUOP equipment solution to treat natural gas

ON-SITE SERVICES PROVIDER Cape has signed a five-year contract with Pearl Gas toLiquids (GTL) to provide multi-disciplinary maintenance services to the gas-to-liquids plantin Qatar.The Pearl GTL, a joint venture between Shell and Qatar Petroleum, is the world’s largest

gas-to-liquids plant and one of the most complex and challenging energy projects evercommissioned, Cape said.Located in Ras Laffan Industrial City, Pearl GTL will convert natural gas into cleaner-

burning fuels. Cape will provide scaffolding, painting, insulation, and refractory serviceswith approximately 175 workers on-site.Cape East operations director for Qatar, Samir Chopra, said, “This contract will provide a

solid base of maintenance activity for the Qatar business and enable us to build on ourworld-class expertise of supporting Qatar Shell GTL in the achievement of its long-termmaintenance needs.“We look forward to working closely with our client, and supporting them in delivering

safe, efficient and productive facilities for years to come,” Chopra added.

Iran opens region’s largest gas storage facility

Cape signs service contract for Pearl GTL plant in Qatar

Turkey turns to Qatar for LNG supply deal

The Shourijeh gas facility has thecapacity to supply 20mn cu/m ofgas per day during the Iranianwinter (Photo: Dave Crosby)

Gas

Qatar’s raw gas reserves totalled 247 trillioncu/m in 2013 (Photo: Ken Hodge)

14 oilreview.me Issue 6 2014

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16 oilreview.me Issue 6 2014

1 9 2:21 PM

OIL REVIEW MIDDLE East haslaunched a new conferencededicated to finding solutions tothe looming talent crunch in theoil and gas sector.The HR Forum: Oil & Gas will

take place in Dubai on 23–25November 2014 and will bring together experts from Saudi Aramco,Mubadala Petroleum, Gazprom International, Kuwait Petroleum Corporation,ZADCO, Reliance Industries Limited and the Petroleum Institute, amongothers, to discuss key solutions to dealing with the talent crunch.Additionally, HR experts from Deloitte & Touche and Bain & Company will

be on hand to advise delegates on how best to manage and improve theirtalent pool.Major topics open for debate and discussion include how to recognise

high-potential talent, develop virtual leaders, find and keep mentors, attractmore Arab women into the workplace, build capabilities and develop onboarding strategies for maximum engagement.Additionally, there will be two special, practitioner-led workshops by

Kuwait Energy and Saudi Aramco on how to deal with difficult people andhow to change behaviours for better communications.This timely forum will be a new opportunity for HR and talent

management professionals to come together, share knowledge, networkwith their peer group and walk away with effective solutions to the everpresent challenge of the talent crunch. For additional information, please visit: www.hrforumoilandgas.com

Talent management to be addressed at new HR forum for oil and gas industry

CALENDAR 2014/2015

Dr Emma Langman, manager of HRand performance at Kuwait Energy, will be one of the speakers atNovember’s HR Forum: Oil & Gas

Rob Veersma, director of trainingand development at GazpromInternational, will discuss themerits of virtual working

Executives’ Calendar 2014/2015

OCTOBER 2014

15-16 Iraq International Oil & Gas Expo BAGHDAD www.ifpiraq.com

19-21 Ethylene Middle East Technology MANAMA www.ethylene-me.com

26-28 Negotiation in Oil & Gas DOHA www.cwcschool.com

28-29 Offshore Energy AMSTERDAM www.offshore-energy.biz

NOVEMBER 2014

3-5 SABIC Technical Meeting JUBAIL www.stm-11.com

10-13 ADIPEC ABU DHABI www.adipec.com

12-13 FPSO Vessel Summit HOUSTON www.wplgroup.com

23-25 HR Forum: Oil & Gas DUBAI www.hrforumoilandgas.com

24-26 SAOGE DAMMAM www.saoge.org

DECEMBER 2014

2-5 OSEA 2014 SINGAPORE www.osea-asia.com

4-7 Basra Oil & Gas BASRA www.basraoilgas.com

9-11 Mediterranean Offshore ALEXANDRIA www.moc-egypt.com

JANUARY 2015

13-15 Gas Arabia Summit DUBAI www.theenergyexchange.co.uk

19-22 World Future Energy Summit ABU DHABI www.worldfutureenergysummit.com

Readers should verify dates and location with sponsoring organisations, as this information is sometimes subject to change.

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2:21 PM

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THE FIFTH EDITION of OPITO Safety andCompetency Conference (OSCC) will be held atthe Fairmont Bab Al Bahr Hotel in Abu Dhabi on 4November 2014.

Suhail Mohamed Al Mazrouei, minister ofenergy for the UAE, will inaugurate the gatheringof oil and gas operators and contractors.Together with training organisations, delegateswill discuss and examine how to improvestandards of safety and competency to protectthe workforce and the industry’s reputation.

Some of the keynote speakers at the eventinclude Bob Stewart, commentator on conflicts;Karen Darke, inspirational mountaineer; andPeter Cohen, motivational speaker, who will talkabout this year’s theme ‘Leading from the front-line’. The event will be chaired by Gordon Ballard,chairman of OPITO and Schlumberger UK.

Al Mazrouei said, “The safety of thoseworking in the energy industry is an absolutepriory and it is vital that we continue to discusshow we continually improve the standards ofsafety and competence.

“OPITO has provided the industry and allstakeholders with a highly valuable platform andwe are delighted they continue to run this eventin the UAE. I urge as many people from the

industry in our region to attend and demonstratetheir commitment to the safety of their workers.”

According to organiser The BIG Partnership,OSCC 2014 will explore the dynamic of effectiveleadership and change management on humanbehaviours in relation to safety. The event willalso outline how the industry can support a saferand more competent workforce.

David Doig, group chief executive of OPITO,added, “This year’s conference will providedelegates with valuable lessons on the impacteffective leadership and change managementcan have on workplace safety.

“As the conference reaches its fifth year, it isencouraging to see support continuing to growas we examine ways we can further improvesafety worldwide. Previous conferences havebeen very successful in stimulating debate andwe expect this year’s OSCC to provide furtherthought and discussion as well as influentialnetworking opportunities.”

Shell will be the headline sponsor of theevent, which will also be supported by IHRDC,Maggie Braid Associates and Petrofac.

More than 400 delegates from around theworld will be expected to attend this year’sedition of the event.

ONE OF DUBAI’S leading oilfield networking events will celebrate amajor anniversary in October having brought professionals from acrossthe region together on a regular basis for five years. Since it was established in 2009, the Oilfield Get Together (OFG)

has grown into one of the region’s leading industry networkingevents providing attendees with the opportunity to discuss theissues affecting their industry with like-minded professionals in aninformal environment. “It has been an honour to watch OFG grow from strength to

strength in the last five years,” said OFG chairman and founderJimmy Larsen. “What started off as a meeting of minds has nowgrown into the leading oilfield networking event in Dubai wherebusiness really does take place. “It gives industry leaders a great opportunity to connect and keep

on the pulse with current market trends in the UAE and on aninternational level.”

Leading engineering, procurement, construction and installationcompany McDermott will sponsor the next event, which will takeplace on 30 October at Ruth’s Chris Steak House in The AddressDubai Marina. McDermott is focused on executing complexoffshore oil and gas projects worldwide and will sponsor the 52ndedition of the event. To mark the fifth anniversary, OFG has planned to put on a

memorable day with a strong focus on industry leaders and oilfieldheavyweights, including founding members of OFG.OFG board member Hany Mwafy remarked, “Celebrating five

years of OFG is certainly an achievement and we look forward tothe anniversary event in October where we will see some of thetrue heavyweights from the industry get together at thisunparalleled oil and gas networking luncheon.” OFG provides oilfield professionals with the opportunity to meet

other industry leaders in a relaxed environment where business isthe focus of conversation. The monthly event will take place at theaward winning Ruth’s Chris Steak House.

OFG to celebrate five years of bringing together oil and gas professionals

Abu Dhabi set to host annual safety and competency conference in November 2014

Attendees at a recent OFG event held atRuth’s Chris Steak House in Dubai Marina

Event News

In August, OFG attracted more than 90 attendees

UAE minister of energy Suhail Mohamed AlMazrouei said that OPITO has provided theindustry and all stakeholders with a highly-valuable platform (Photo: OPITO)

18 oilreview.me Issue 6 2014

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S04 ORME 6 2014 - Analysis 01_Layout 1 9/26/2014 2:44 PM Page 19

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SINCE THE FIRST two LNG tankerscarrying 5,000 cu/m of LNG left theAlgerian port of Arzew for the UKand France in 1958, the global annual

trade in LNG has grown in value to reachUS$150bn, accounting for some 10 per centof the global trade in natural gas. Today, 24countries export LNG to around 29countries. Qatar, Malaysia, Australia, Nigeriaand Indonesia are in rank order the world’stop five LNG exporters. Asia Pacificcountries dominate the global market forLNG, notably Japan, South Korea, China andIndia. The LNG trade is expected to grow at

a compound annual rate of 2.8 per centbetween 2013 and 2019 (Hellenic ShippingNews, 11 July 2014), underpinned by risingAsian demand. The Middle East and North Africa (MENA)

countries hold a large percentage of theworld’s natural gas supplies and providemore than a third of world LNG exports.Algeria, Kuwait, Iran, Saudi Arabia, UAE andQatar are among the biggest holders of theregion’s gas reserves. Qatar is currently the

world’s largest LNG producer and exporter.However, Qatar is expected to cede itscrown to Australia by 2017, since its ownexports are limited by the 2005 moratoriumon increasing LNG exports as well as byrising domestic demand, and since Australiahas 83mn tonnes per annum LNG capacitycoming on line by 2017. Qatar’s main markets currently lie in

Asia, Europe and other MENA countries.Oman and Yemen’s chief markets lie in Asia.

Qatar's Pearl GTL project is the largest gasto liquids plant in the world

Nicholas Newman outlinesdevelopments in the LNGmarkets and assesses futureprospects.

LNG in the

MENA region

The North Americanshale gas revolution promisesthe beginning of US LNGexports”

20 oilreview.me Issue 6 2014

Analysis

Qatar tops the list of LNG exporters, aheadof Malaysia, Australia and Nigeria

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For Algeria, the original supplier of LNG,Sonatrach reports exports of around 2.1 tcfa year (as noted by Bloomberg in January2014), chiefly destined for Europe. WhileEgypt has proven gas reserves of 77 tcf,the third largest in Africa after Algeria andNigeria, its exports have fallen due to thegovernment’s diversion of gas promised forexport to the domestic markets, causingforeign energy companies like BG todeclare force majeure. Libya, Egypt andIran’s LNG exports are currently disruptedby economic and political turbulence. Natural gas is liquefied in dedicated

export liquefaction terminals in Algeria,Egypt, Oman, Qatar and Yemen. These arelisted, together with planned projects, inTable 1. LNG projects take years toconstruct and are costly. To be commerciallyviable they need buyers willing to sign long-term contracts under traditional priceslinked to oil, and for oil prices to remainhigh. The most significant exporters of LNGtoday can be seen in Table 2.

The changing LNG marketThe North American shale gas revolutionhas meant an end to LNG imports in theUSA and promises the beginning of LNGexports as early as 2017. By the end of2013, US gas developers had applied forexport permits amounting to 380bn cubicmetres equal to all the world’s currentliquefaction capacity. Just one-third of thiscapacity would threaten the viability ofhigher-cost capacity additions in countriesincluding Australia, Russia and across theAfrican continent (McKinsey, Capturingvalue in global gas: prepare now for anuncertain future, July 2014). In Europe the economic slowdown,

combined with energy efficiencyimprovements and the availability of cheapcoal, has reduced demand for gas.However, for its energy security, given thecurrent uncertainty of Russian gas supplies,we can expect a permanent upswing inEuropean demand for LNG, much of whichis likely to come initially from Algeria andNorway. Asian demand has driven global demand

for LNG, which has been met largely byAustralia and South East Asian countries aswell as from Qatar, Oman and Yemen. Buthow much of the demand for gas in Asia

will be supplied by LNG imports in thefuture is dependent not only on China’sdevelopment of shale gas, but also onAustralian and Russian LNG project costs,which are only commercially viable withsustained high Asian LNG prices. A noteworthy and relatively recent

development is the rise in domesticdemand for LNG within the Middle Eastregion itself, due in part to the lack ofpipelines connecting gas fields withmarkets and insecurity of pipeline suppliesas well as gas shortages stemming fromthe demands of rapidly growing populationsand economic development. George Sarraf,a Dubai-based Partner with Strategy &(formerly Booz & Co), commented recentlythat demand for power in the region isgrowing by seven to 10 per cent a year. Gas rich MENA countries now account

for three per cent of global LNG imports,and this can be expected to increase. Dubaiand Kuwait import LNG through floatingstorage and regasification unit (FSRU)projects. Dubai’s Jebel Ali LNG Terminal, aFRSU, completed in 2010, is to be joined by

a planned new LNG import terminal atFujairah. Insecurity of gas pipeline importsunderpins Jordan’s current construction of anew US$65mn LNG import terminal atAqaba, which will allow cheap LNG tosupplant expensive oil and diesel used forpower generation.

Future developmentsRising costs in Australia and uncertaintyover the sustainability of high oil prices maythreaten, delay or even derail planned LNGprojects in Australia, East Africa, the MiddleEast and Russia. Indeed, as Sarrafobserved, more gas co-operation betweenGCC and Middle East countries wouldprovide benefits to all in terms of balancingsupply and demand and optimisinginfrastructure needs. Moreover, NorthAmerica has the potential to become aserious rival to both Middle East LNGproducers, plagued by political disturbancesand terrorism, as well as Russia. To protectdomestic users from high gas prices, theUS government has granted export permitsfor only 80 bcm per year of LNG to date. n

High and rising costsin Australia and uncertaintyover the sustainability ofhigh oil prices may threatenplanned LNG projects”

22 oilreview.me Issue 6 2014

Analysis

Table 1: MENA’s LNG export liquefaction terminalsExisting Export Terminals Planned Export Terminals

Algeria Skikda

Algeria Bethioua

Egypt SEGAS Damietta LNG

Egypt ELNG IDCO LNG

Iran Tombak NIOC LNG

Terminal

Iran Pars LNG Terminal

Oman Qalhat

Qatar Qatargas 1

Qatar Qatargas 2

Qatar Qatargas3

Qatar Qatargas 4

UAE ADGAS

Yemen Yemen LNG

Source: Bloomberg, EIA, IEA

Table 2: Top 10 LNG exportersCountries Volume of Exports

(mn tonnes per annum)

Qatar 77.4

Malaysia 23.1

Australia 20.8

Nigeria 20.0

Indonesia 18.1

Trinidad 14.4

Algeria 11.0

Russia 10.9

Oman 8.1

Brunei 6.8

Source: International Gas Union World LNG Report -2013 Edition

Table 3: Top 10 markets for LNG

Countries Volume of Imports

(mn tonnes per annum)

Japan 87.3

South Korea 36.8

China 14.8

Spain 14.2

India 14.0

Taiwan 12.8

UK 10.5

France 7.5

Turkey 5.7

Italy 5.2

Source: International Gas Union World LNG Report -2013 Edition

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Ansell Healthcare – Middle East1 Lake Plaza 22-02, PO Box 125299, JLT, Dubai. United Arab Emirates.Tel: +971 4 452 3232 E-mail: [email protected] Web: www.ansell.eu

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WITH RIG CONSTRUCTION costs heading skywards andthe necessary technical skills in short supply, the rigrepair, refit and refurbishment business is growing asnever before in the Gulf. A rig refurbishment project

can range from a simple topside repair to a major docking lastingseveral months for the upgrade or replacement of obsolete and / ordamaged equipment and machinery. This can include fitting orrepairing a complete jack-up leg.

Last September, Lamprell, based in Jebel Ali Free Zone and aleading provider of engineering services to the on- and offshoreenergy industries, was awarded a major rig refurbishment contractby the Millennium Offshore Services (MOS) group relating to theconversion of the MOS Frontier.

The Frontier is a three-legged MLT116C jack-up structure valued atover US$60 million. This rig is a multi-purpose unit capable ofoperating in water depths of up to 100m. At the refurbishmentcontractors’ Sharjah facility it is being converted into anaccommodation support vessel housing 290 workers.

CEO James Moffat commented at the time of the award for thislocal high-profile project, “Lamprell has a well established track recordfor undertaking major rig refurbishment projects … it is pleasing thatone of our existing clients has awarded us a new contract for one ofthe largest refurbishment and conversion projects in our history.”

Since 1990, this company has carried out over 350 similarprojects; the Rowan California, currently located in the Aegean Sea,

had been handed over just as the MOS contract was inked. Thecompany maintains that to remain competitive, today’s rig ownersare required to provide operating companies with efficient andreliable drilling services from safe platforms that can include jack-ups,fixed units, semi-submersibles and drill ships. Lamprell says it canwork on upgrading them all.

The company has developed its own state-of-the-artrefurbishment facilities in both Port Khalid and the Hamriyah FreeZone to match its docking operations with deep-water berths thatcan cope with today’s multi-million rig designs. Other well knownlocal customers recently served by these facilities include SaudiAramco and Arabian Drilling Company.

Eversendai Offshore RMC FZE is another rig refurbishmentspecialist operating at various locations in the Gulf, with newwaterside facilities in RAK’s Maritime City as well as a modern yardin Qatar. This is a subsidiary of the major Malaysian EPC contractingbusiness of a similar name. The company’s various facilities hereoffer complete new-build and refurbishment services including:• Complete rig conversion and modification• Comprehensive engineering design and technical support• Drilling systems and configuration, including hulls, engines

including genset replacements, and complete repowering• Accommodation provision and refitting to the latest international

standards• Helideck upgrading and complete fitting where necessary• Leg(s) inspection, repair, extension and replacement where

necessary.

Recently, Dubai’s Drydocks World completed a majorrefurbishment project on National Drilling Company’s (NDC) offshoreAl Ghallan rig. Also UAE-based, the contractors said the works werepart of a series of four repair-and-refurbish projects signed with NDClast year alone; a similar eight had been successfully completedearlier. The company claims a well-established reputation for itsrefitting operations within this growing business, having successfullydry-docked (so that access can be gained from all sides), inspectedand repaired more than 100 offshore platforms, drilling rigs andvessels over the years.

Rig construction costs are heading skywards

Rig repair and refitting is big business in theGulf, with the user-friendly UAE at the centreof activities.

Rig refurbishment

today

A rig refurbishment project can rangefrom a simple topside repair to a majordocking lasting several months”

24 oilreview.me Issue 6 2014

Analysis

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Chairperson Khamis Juma Buamim said in July this year, “We aregrateful to NDC for their continued faith in our services. As aregional service provider, we are delighted to work with prominentcompanies in the region and make a contribution to the growth ofthe offshore oil and gas sector.

“Our facility has three large graving docks and well-equippedworkshops that provide us with the flexibility of addressingassignments that are of a highly challenging nature.”

NDC’s Abdalla Saeed Al Suwaidi added, “These majorrefurbishment projects performed in parallel with the fleet expansionplans to obtain advanced offshore and onshore rigs are contributingconsiderably in strengthening NDC’s operational excellence andsustaining the maximum levels of safety, environment protectionand effective performance.”

Why is it that the UAE is the centre of so much of this essentialhigh-tech activity in the Gulf today? The UAE’s excellent internationalcommunications – in all forms – are certainly a major asset; essentialcompact spares and components including technical personnel canbe brought in with just a few days notice. The central location forservicing operators from Saudi Arabia to Oman and Yemen is handytoo. And the various waterside cities’ infrastructure includingaccommodation is second to none. Major engineering upgrades onrigs and support vessels fit perfectly with the local vision to diversifythe economy beyond reliance on the sale of oil and gas. But seriouscompetition from other GCC states can be expected soon.

Finally, most of the above applies to large offshore structures andfloating facilities which require a costly drydocking operation forinspection, even before any major repair or refitting work iscontemplated. But if it is a land rig that is needing major work –usually a much simpler operation – an alternative solution might bearranging for the delivery of a brand-new structure from a dedicatedmanufacturer like National Oilwell Varco.

Some suppliers like this specialise in rapid-deployment packagesthat are specially designed to be trucked in within a few days,sometimes with fewer than 30 vehicle loads. And these can involvea minimal requirement for the hire of heavy lifting equipment toassemble and erect the mast. Sometimes a matching bundle ofspecial lightweight engine generator sets and other topside plant isavailable to power and control the rig at a remote location, or duringthe assembly process itself. n

The UAE’s excellent internationalcommunications are a major asset

Major engineering upgrades on rigsand support vessels fit with the local vision todiversify the economy”

Issue 6 2014 oilreview.me 25

Analysis

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UNTIL RECENTLY, WHEN onethought of oil in the Middle Eastone thought of the massive matureoil fields of the Gulf. The 2010 report

by the US Geological Survey on the Red SeaBasin estimated reserves of at least fivebillion barrels (mean volume) of undiscoveredtechnically recoverable oil and some 112 tcfof recoverable gas. Egypt has madesignificant discoveries along its part of theRed Sea and has aroun d eight billion barrelsof proven hydrocarbon reserves in its waters.However, while Saudi Arabia’s state-ownedoil company Saudi Aramco has not disclosedits own estimate of the Red Sea's potential,external analysts have put forward their ownestimates. “There could be up to 100bnbarrels of oil equivalent (boe) under the seabed,” claims Gulf analyst Kevin Baxter,quoted in Energy Pro newswire in Novemb er2013. Other analysts put the figure at around50bn, an amount which would still increasereserves by 18 per cent. Whatever thespeculated numbers, “What Aramcoconsiders a large field is much bigger thanexpected elsewhere,” said Professor DavidMacdonald, Professor of Petroleum Geologyat the University of Aberdeen in a telephoneinterview in July.

Today, encouraged by sizeable discoveriesin the East M editerranean Sea, the Nile Deltaand Egypt’s Red Sea waters as well as,crucially, the need to boost gas production tomeet rapidly rising domestic energy demandand to free up crude oil for export, geologistsare surveying the Saudi side of the Red Sea

on behalf of Saudi Aramco. The company’s oiland gas research and exploration budget isthe highest in its history, focusing on frontierareas in the Red S ea and complex reservoirsonshore and offshore.

Saudi Red Sea explorationDuring the 1960s, drilling in the shallowwaters of the Saudi Arabian side of the RedSea by foreign oil companies yieldeddisappointing results, ending both interest and

foreign participation in the Kingdom’supstream projects. Exploration anddevelopment of the Red Sea is likely to meanthat Saudi Aramco’s policy of self-reliance willgive way in favour of bringing in foreigncompanies with both the technology andexperience of ultra-deep water locations. In2009, contractors working on behalf of SaudiAramco began a 15-month 2D and 3D seismicstudy of the Saudi side of the Red Sea,focusing on the shallow coastal waters offTabuk before moving to the more challengingultra-deep waters.

In 2011, Saudi Aramco began a shallowwater exploration drilling project in the RedSea, said Michael Zinger of Saudi Aramco,speaking at a Houston Geological SocietyDinner in June 2013. In late 2012, SaudiAramco made a major gas find some 16miles north west of Duba, the Ahmar-1 fieldof non-associated gas. According to Saudi

Saudi Arabia discovered the Al Haryd deep-water oilfield in the Red Sea in 2013

Nicholas Newman assessesSaudi Arabia’s drive to explorethe Red Sea.

Could the Red Sea solve a

Saudi headache?

Saudi Arabia is likelyto need to bring in foreigncompanies with deep-waterexpertise”

26 oilreview.me Issue 6 2014

Analysis

Table 1: Saudi oil and gas resources

Reserves Production Consumption Exports Notes

Oil 265 bn barrels 11.6mn bpd 3 mn bpd 7.5 mn bpd Includes the Neutral Zone

Gas 288 tcf - 4th N/A 3.5 tcf Saudi Arabia does Only 15 per cent of

largest in per year not import or Saudi Arabia has been

the world export natural gas “adequately explored

for gas”.

Source: EIA 2014

Table 2: Saudi Arabian power generation by fuel in 2012

Fuel Per centNatural Gas 39Oil 35Diesel 20Fuel Oil 6Source: Oxford Energy Comment, May 2013

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Aramco’s Annual Report 2013, it hasdiscovered three oil and two gas fieldsincluding the Red Sea deep-water oil field Al-Haryd, following the 2012 discovery of a gasfield in the Shaur structure located in theshallow waters off the country’s NorthWestern Tabuk province. This latter gas field is“a potential game-changer in the future of theKingdom’s energy mix,” notes Saudi Aramco.During 2013, Saudi Aramco undertook its firstdeep-water drill stem test at Duba-1 in thenorthern Red Sea at a depth of 648m.

US$25bn project launchedBy the end of this year, the first of sevenplanned appraisal wells will be drilled in thenew gas field Ahmar-1 discovered in 2012,located some 16 miles off the coast from theport city of Duba as part of a US$25bndevelopment plan, reported 2B1st Consultingin January 2014. Saudi Aramco will drill threewells in shallow waters not exceeding 100metres in depth and four in deep water ofmore than 1,000m. This gas field is forecastto produce 75mn cfd of gas and 4,500 bpd ofcondensate for a 20-year period.

The gas will be delivered by pipeline toDuba, where Saudi Aramco is planning tobuild an industrial complex containing a gascentral processing facility, a petrochemicalplant and large power station which will beconnected to the respective national powerand gas grids to supply cities such as Yanbuand Jeddah along the Red Sea coast.Whether any of this resultant new gas andelectricity will be exported to neighbouringEgypt or Jordan, both of which suffer frompower and gas supply problems, remains anopen question.

What production techniquesmight be used?The specific production techniques on futurediscoveries and the companies chosen todeploy them will be announced in 2015.However, if the reservoirs are filled with

crude, floating rigs will be used to puncturethe seabed to subsea fields lying 1,000mbelow the water's surface. The oil is likely tobe transferred via floating production, storageand offloading vessels to off-shore tankers. Ifthe reservoirs contain large quantities ofassociated gas, as is the case with the Ahmar-1 field, processing facilities are necessary toseparate the oil from the gas. These would bebuilt on land and connected by pipelines tothe rigs.

“Such a production system would becomeexpensive,” comments Dr Sadad Al-Husseini,retired vice president, exploration anddevelopment at Saudi Aramco and nowOwner and Founder of energy consultancyHusseini Energy. In either case theproduction of hydrocarbons on the Saudi sideof the Red Sea is unlikely to reach significantscale before the end of this decade, saidProfessor McDonald.

Red Sea exploration challengesSaudi Aramco customarily operates in Gulfwaters not exceeding 330 feet, which is lessthan a 10th of the average depth of the RedSea. Lacking both the experience and thetechnology for deep water operations, SaudiAramco will have to select from amongstleading deep-water oilfield operators such asBrazil’s Petrobras, Norway’s Statoil,Denmark’s Dong Energy and the UK’s BP,which have extensive experience of deep seaoperations in the North Sea and the Gulf ofMexico. Such companies “will be well-positioned to secure work when tenders arereleased,” commented energy analyst KevinBaxter, as reported by UPI in November 2013.Also, Saudi Aramco’s expertise in managinggiant contracts with western companies willstand it in good stead during the rush toboost the Kingdom’s gas production.

An additional challenge is the complexgeology. The seafloor of the Red Sea isunstable, being composed of a thin post-saltsection lying above active salt. Such

conditions suggest that, “It is very likely thatthe oil will be light and have a lot of gas in it,"said Al-Husseini, in the UAE newspaper TheNational in June 2012. Professor Macdonaldreinforces the view that much of the gasdiscovered will be in the form of associatedgas, rather than large independent gas fields.

Why the drive to explore the RedSea and elsewhere?The main objective of the current explorationdrive is to boost gas production in order tolimit the use of expensive oil in powergeneration, as well as to meet rapid growth indemand. Saudi Aramco observes that localdemand for crude has increased “to the pointwhere volumes meant for export may fall tounacceptably low levels in the coming twodecades.” In addition, fears that Saudi oilproduction from existing fields has peaked oris likely to peak soon underlie the Kingdom’ssearch for new sources of energy, includingoil, solar and shale gas.

Currently, Saudi Arabia consumes at leasta quarter of its oil output at heavily subsidisedprices, putting a strain on the Kingdom’sbudget. Already, there are gas shortages,forcing industrial consumers such as powerstations, petrochemical and associateddownstream plants to switch to oil. Theopportunity cost for Saudi Aramco is high,since it is required to supply domesticindustrial customers with oil at the equivalentof US$5 to US$15 a barrel compared to Brentcrude prices of around $100 a barrel.

Finding more gas is crucial in order tomeet current demand as well as to secure aplanned increase in generating capacity from55GW to 120GW by 2020. Saudi Aramcoexpects domestic gas demand to nearly triplefrom its current 3.5 tcf by 2030. The evidentprospective shortage of gas and fears thatSaudi Arabia could turn into a net oil importerby 2030 makes exploration and developmentof the Red Sea’s hydrocarbons a priority,albeit a very expensive way of maintaining oilexport volumes. However, it will take a longtime to develop the Red Sea resource. Ifsubstantial finds are made, it could also boostthe economies of other Red Sea states suchas Sudan, Somalia and Eritrea, says ProfessorMacdonald. In the meantime, reductions inenergy subsidies, economies in energy usageand diversification to solar and shale couldform important components in the Kingdom’senergy strategy. n

The need to increase generating capacity is a factorin the drive to discover new energy resources

Finding more gas iscrucial in order to meetcurrent demand as well as tosecure a planned increase ingenerating capacity”

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Analysis

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OIL, GAS AND petrochemicalfacilities are particularly vulnerableto fire. The potential costs ofdisaster are high in terms of

disruption and loss of assets and human life.Early fire detection is crucial to prevent firesfrom developing quickly and envelopingplants and materials. Oil and gas companiesneed to take action to address incidents thatmight occur, however stringent the safetymeasures in place.

Fires at oil, gas and petrochemicalfacilities are not unusual in the Middle East.Indeed, there were two fatal incidentsclaiming eight lives in total at the samerefinery in 2000 and 2011, while fire brokeout in August this year at the 466,000 bpdMina Al Ahmadi refinery in Kuwait.

Key risks Some petrochemicals are notoriouslyvolatile. Fires can be started from sources ofignition in close proximity. As thepetrochemicals vaporise, they do notnecessarily need to be in direct contact withthe facility to ignite a fire.

High temperatures, sometimes reachingover 50 degrees in the summer in theregion, present a very real danger.

Petrochemical facilities are complexextraction facilities and supply chains withdistribution terminals, offshore and onshoreplants. The potential is there for an incidentinvolving a hazardous substance at any partof the process.

Neighbouring sites must also beconsidered, not only in the context of firedetection, but also in terms of the potentialdamage that can be inflicted on them whenin close proximity – for instance, at portfacilities.

Terrorism is more prevalent today than ithas been in the past. Security must becombined with fire security systems. Firedetection solutions that employ a Visual

Smoke Detection solution, such as FireVu’s,can combine the two.

The oil and gas industry is one where thebenefits of installing fire detection andprevention solutions for facilities over andabove the legal requirement more thanoutweigh the cost implications. There is noroom for accepting risk – a factor that doesnot apply to all sectors. The cost of adisaster in terms of People, Environment,Assets and Reputation – the PEAR acronym– outweighs the cost of investing in effectivesafety technology. Higher insurancepremiums for less stringent fire detectionand prevention can also be factored into thefinancial decision making process.

Fire detection systems Fire detection solutions can generally begrouped into Aspirating Smoke Detectors(ASD), Infrared (IR) and Visual Smoke

Detection (VSD) Solutions. Each has its ownattributes for different environments.

Aspirating systems identify particles ofsmoke suspended in the air to alert safetyoperators to fire danger. They are highlysensitive, often detecting smoke before it isvisible to the human eye. ASD can beeffective in indoor environments, but it cantake time for the smoke particles to reachthe detectors in large spaces, therebyimpacting the response time, and whereoutdoor locations are concerned it can becompromised further. ASD can also struggleto distinguish between dust and smokeparticles.

IR are transducers of radiant energy,converting radiant energy in the IR into ameasurable form. Detecting IR energyemitted by objects takes away reliance onvisible light, so obscured conditions shouldnot affect their effectiveness. However,thick smoke, oil and grease can beproblematic. Most IR detectors aredesigned to ignore constant background IRradiation, focusing on the modulated part ofthe radiation. However, they can be proneto false alarms when exposed to modulatednon-flame IR radiation.

Visual Smoke Detection is a maturetechnology developed, refined and testedover the past 20 years or so. It uses flame

Oil, gas and petrochemical facilities are particularly vulnerable to fire

PN Rajesh gives an overview ofthe challenges of fire detectionand potential solutions for theoil and gas industry.

Effective

fire detection

The cost of a disasteroutweighs the cost ofinvesting in effective safetytechnology”

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Health & Safety

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as well as smoke detection and analysis ofsmoke to give early alerts by identifyingcharacteristic smoke patterns across a videoimage. It analyses changes in a range ofvariables such as colour, brightness,contrast, shape, edge content, motion,colour matching and loss of detail to alertoperators early to potential fire danger. Sinceit is a video solution, distance is no issueand it can be combined with security. It isused in the Gulf on petrochemical facilitiesas well as for other sites wherepetrochemicals are present, such as militaryand civilian air hangars. Detectors can belinked to alarm systems and integrated intocontrol systems, setting off AC shut down,positive air pressurisation of escapestaircases, and total suppression activitiessuch as foam systems.

Further considerationsOil and gas facilities offer a range ofhazardous scenarios. So it goes withoutsaying that the most appropriate firedetection solution for each scenario isdependent on the danger.

For example, during the construction ordecommissioning of a site, high

temperatures are very likely. The nature andlight frequency of a gas torch flame, awelding arc, or grinding sparks, are differentfrom the light frequency emitted by a fireflame. This might have a bearing onselecting a fire detection solution.

There are strong arguments in favour ofhaving an off-site emergency control centre.

As fires around the world have shown, on-site facilities can easily be destroyed inlarge-scale incidents. Some systems such asIR and VSD can be remotely monitored toavoid such a potential scenario.

Oil companies also need to take intoaccount the resources that are availablefrom the local emergency service in termsof the specialist equipment it has and howquickly it can be deployed. Can the firedetection system be connected to theemergency service? Time is of the essence.

Fire detection technology is generallybecoming more sophisticated and refined.Its use is stipulated to different degreesthroughout the Middle East, but the cost ofimplementing effective solutions is morethan compensated for by the benefits ofminimising the likelihood of fires and theirconsequences. n

PN Rajesh is director for Middle East, Africaand India operations at fire detection solutionprovider FireVu, email: [email protected] has offices in the Gulf andrepresentation throughout the region; contactMalcolm Gatenby, director BSSME, [email protected]. www.firevu.co.uk

PN Rajesh

Health & Safety

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INTEGRATED OIL AND gas majors face acommon threat: shrinking operatingmargins, declining production and fallingreturn on equity and on assets. The

decline in return on capital and operatingmargins has caused dismay amongstshareholders and investors. Analysts warnedthat ‘fears over capital discipline’ were asignificant factor in the underperformance ofthe global oil and gas sector. Yet firms havebeen slow to respond, and few have failedto answer the question of why thedownward trend is so pronounced.

Global energy companies will have toadjust their expectations for profits in orderto make the investments needed to meetfuture world energy demand, theInternational Energy Agency (IEA) warns. Thecapital cost of producing a unit of energy –whether oil, natural gas or power – hasdoubled since 2000, and continues to riseeven as prices for key commodities haveflattened out, the Paris-based energy groupsaid in a report released recently.

“The doubling of capital costs is aserious issue,” the IEA’s chief economist,Fatih Birol, said in an interview from Paris.“Companies have to improve their capitaldiscipline and they have to be a bit morerealistic in the future about rates of return,so long as prices remain at these levels.”

The easy oil is gone, hydrocarbons areharder and more expensive to extract, andthe largest capital projects are increasinglycomplex and unpredictable.

Projects also have more stakeholders,more investors, and are typically in frontierareas of the world with national governmentinvolvement. The result is significant growthin communications traffic laden withinstructions, authorisations and vital content

for decision-making. As such, projects todayare not only technically challenging, butfraught with risk and change.

At the commercial interfaceChange is a given in oil and gas projects. Eventhe best design team that produces the front-end engineering design (FEED) will neverforesee and conceive of 100 per cent of whatis required to deliver the project – thuscontractors will always instigate change orders.

Variation requests and change ordersmade in communications from contractorstake time to filter through to the financialteams and treasuries of owner operators.Over time, they can fester to significantlevels that result in costly claims later on inprojects, when it is harder to establish theorigin and validity of the changes.

According to a report by McKinsey latelast year, the key risks during projectexecution are related to contractual default,claims, keeping public political stakeholdersaligned, and monitoring for mismanagementby contractors. The interface withcontractors is therefore the critical element.

Schlumberger reports that 35 per cent ofcapital projects budgeted at over US$5bnwill blow out by more than 50 per cent. Thesignificance of this figure cannot beunderstated: the average project size in theoil and gas industry currently stands atabout US$1.9bn and continues to rise asmore ‘super-sized’ mega projects comeonline. Several projects are averagingbetween US$30-50bn and upwards, with theKashagan oilfield development in Kazakhstanstanding at US$115bn, having sufferedsignificant delays and cost overruns.

Managing contractual riskUnplanned cost overruns and poor costrecovery not only impact directly on theowner operator’s financial performance, theyplace shareholder value at risk. Earlier thisyear, shares in Spanish constructionconsortium Sacyr fell on news of a claim ofmore than US$1bn, relating to the Panama

Capital projects today areincreasingly complex (Photo: BP)

Shrinking margins anddeclining returns on assetsmake excellence in capitaldiscipline essential for owneroperators of large capitalprojects, says 8over8’s ClareColhoun.

Contractual risk

management

Projects today arenot only technicallychallenging, but fraughtwith risk and change”

Risk Management

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Canal Expansion project where it had thelead construction role. The dispute betweenSacyr and its contractors over liability for theadditional costs resulted in a substantialdelay to the work to widen the waterway.

With large capital projects in the oil andgas sector increasingly characterised byseveral venture partners sharing both riskand return, the contracts that underpin themhave many interdependencies. Clear rules ofengagement must be defined in advance,both amongst the venture partners andbetween the venture and its contractors.

Successful contract execution in ground-breaking floating LNG (FLNG) projects, suchas Shell’s Prelude for example, involvesdeveloping a suite of project contractsacross the FLNG value chain that creates aneffective alignment of interests among eachof the relevant project parties, whilsteliminating or mitigating risk.

Many interdependencies also mean manyopen channels of communication. Thesechannels are absolutely critical, but are riskladen in that they can drive unnecessarychange into the project. The inherent riskonly becomes manifest when the owneroperator looks to cost-recover a percentagefrom a joint venture partner only to discoverthat the communications surrounding thechange are untraceable. This is whyinstructions and the thread ofcommunications that trigger a contractualchange must be recorded meticulously, asthe sequencing of events is relied upon inthe event of arbitration.

DNA sequenceContractual risk management entails de-risking the commercial engagement byensuring that the chaotic communicationsthat exist on a large capital project arestreamlined and controlled – whether theyare a communication about an instruction,an obligation, potential change, or site query.

Imagine, for example, that time is aconstant represented by a horizontal axis.Capital is deployed in increasingly largeramounts as construction of the projectprogresses over time. That capital isdeployed via contracts, but without a systemof engagement to provide a disciplined wayof managing the risk inherent within thosecontracts, then the entire process is leftopen to change due to unnecessary,unstructured and cluttered communicationschannels. This occurs both internally with theowner operator and its partners, andexternally with contractors.

Now imagine the application ofcontractual risk management as being like acoil that wraps around the project timeline.The ‘coil’ is a system of record. When it isswitched on, it aggregates allcommunications across the project timeline.Here, unstructured communications becomestructured under specific categories.

Crucially, the timeline and the coil areintertwined, much like a DNA sequence, toprovide an indisputable record of all formalcontract data, communications, contractualobligations, review decisions and decisionresponse times.

By being able to retrieve, as required,auditable and irrefutable evidence heldwithin a ‘DNA sequence’, owner operatorsare able to reduce instances of claims andmaximise cost recovery to ensure allproject and contract stakeholders beartheir appropriate share of legitimateunplanned costs.

Early warning and proactive riskmanagementApplying analytics to a combined system ofengagement and system of record, wheredisciplined and structured communicationsare stored within a single platform, owneroperators can start to act on the businessintelligence available. For example, if avariation order request on a major project isreceived from a contractor and has asignificant value associated with it, thatcommunication can be routed to those thatneed to see it and, more importantly, tothose that need to take the decision onwhether or not to approve it.

A further benefit is that owner operators

can measure the riskiness of a particularproject. Should a large volume of variationorder requests come in over a short periodof time, they can be escalated toappropriate stakeholders to notify themthat scope is a problem and as such theproject is at risk of blowing out. Action canthen be taken to avert significant valueleakage and scheduling overruns incommercial relationships with contractors,which current in-house systems are simplyunable to achieve.

Contractual risk management solutionsintegrate fully with other enterprise systemsand bring a disciplined approach to allcommunications between project partnersand contractors by:• Instructing contractors, partners and

stakeholders to use a single formalcommercial platform for communicatingwith owner operators whilst executingcontracts and to adopt the oil companystandards as a ‘must’. All instructions andcommunications to and from thecontractor and owner operator teamsflow through this one channel in a pre-defined, organised way.

• Connecting the engineering world withthe commercial world by insisting alltechnical queries, instructions andotherwise are routed through thecommercial channel for review, checkingalignment or disparity with the contract,and then to the contractor and owneroperator’s technical teams.

• Gaining significant and valuable insightsby analysing the commercialcommunication traffic that highlightspriority areas of the engagement thatneed attention. This is a new ‘earlywarning’ focus on potential changerequests. It allows owner operators toaccept necessary changes, but,importantly, allows them to avoidunnecessary changes that can blindside aproject when they fester to significantlevels and result in claims.

Predictable outcomesSeveral of the largest super majors, majorsand independents are changing the way theymanage change in the execution of theircapital project contracts. What is more, theyare generating US$100s of millions – andeven US$billions – of savings by drivinggreater discipline into their capitaldeployment processes and enhancingcommunications, governance andtransparency. These elements are critical torealising maximum returns and mitigatingcontractual risk in large capital projects.

Ultimately, by managing key contractualrisks, owner operators benefit fromconnected decision-making throughimproved capital discipline, and thereforerealise a much more predictablecommercial outcome. n

The timeline and the coil are intertwined, like aDNA sequence

Contractual riskmanagement solutionsintegrate fully with otherenterprise systems”

Risk Management

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AUNIFIED EFFORT from the energysector is needed to encouragewomen to pursue careers in the oiland gas industry, which statistics

show continues to be a male-dominated field,experts said during a VIP panel discussionheld in Abu Dhabi on 1 September.

Challenges to bridging the gender gapwere addressed during this year’s first paneldiscussion on ‘Women in Industry’, anexclusive series of ADIPEC 2014 Middle EastPetroleum Club (MEPC) events and initiativesdedicated to women in the energy sector.

Numerous reports have shown thecritical role of gender diversity in meetingbusiness goals, from sourcing talent poolsto increasing profitability. However, a recentstudy by PricewaterhouseCoopers inassociation with the Women’s Oil Councillooked at the 100 largest listed oil and gascompanies in the world and found that only11 per cent of board seats were held bywomen. The study shows that while it isclear that women play a pivotal role in theenergy sector, achieving progress remains a challenge.

Addressing the challengesOffering opportunities for professionaldevelopment is key to making the oil andgas industry a viable career choice forwomen, said Souad M. Al Hosani, Presidentand Founder of Nexus Business Services.

“Oil and gas companies can retain womenin their sector by offering them leadershippositions and growth in their career,” said AlHosani. “Leading and mentoring are twoimportant challenges that need to be lookedat for women in the oil and gas sector.”

These challenges go beyond the bordersof the Middle East and are faced by theindustry worldwide, according to experts.“This is not just a regional challenge, it is aglobal challenge,” said Cynthia Babski,Internal Communication Manager at QatarShell Service Company. “Companies need tohave a pro-active plan in place that goesbeyond a recruitment quota.”

“For example, Shell is addressing thegender imbalance by implementingsupportive and inclusive corporate policies,from designating fieldwork timings, toprotocols that address work-life balance.Such policies can change the dynamic of theworkenvironment, and ultimately howpeople perceive the industry.”

Strong female networks are crucial tobuilding a sustainable professionalenvironment for women in the industry, saidMaryam Amiri, senior communicationsadvisor at the Abu Dhabi National OilCompany (ADNOC).

“There are cultural barriers that we needto address, but these take time to change

and will not happen overnight,” Amiri said. “Iwould like to see a stronger support systemamong women. We need a ‘sisterhood’, anetwork of women who stand by eachother, especially given these challenges thatwe all acknowledge. You often find this bondbetween men, but not so much amongwomen because they are afraid ofjeopardising their relationships.”

The forum is of critical importance in lightof new employment trends showing agrowing number of women graduatesconsidering the energy industry for long-term career opportunities.

According to a recent report by theEconomist Intelligence Unit (EIU), UAEEconomic Vision: Women in Science,Technology and Engineering, womenaccount for 50.7 per cent of graduates inscience, technology and engineering (STE)and maths-related courses across allinstitutions, and 56.8 per cent in governmentuniversities in the 2011-2012 academic year.

The report showed that among thosestudying STE and mathematics (STEM), andwanting to stay in STE in the UAE, theenergy sector was the second mostattractive industry to work in (17 per cent)after green technology (22 per cent).

However, both professional and culturalbarriers continue to prevent women frommaking a smooth transition from universityinto the workforce. According to the EIUreport, 60 per cent of STEM respondents

Participants in the ‘Women inIndustry’ panel discussion

A number of initiatives haverecently been established topromote the participation ofwomen in the oil and gasindustry. These include theADIPEC 2014 Middle EastPetroleum Club ‘Women inIndustry’ events.

Breaking down barriers for

women in oil and gas

With these smallbut imperative steps, weare definitely moving in theright direction”

Recruitment & Retention

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with experience working in an STEenvironment believe that female employeesface obstacles when trying to manage work-life balance, and 66 per cent of STEMrespondents see cultural issues as a barrierto women in those fields.“Managers mustbe continuously educated about what isneeded to overcome these challenges,” saidSamar El Mnhrawy, Vice President of HumanResources at Baker Hughes. “For example,in addition to mandating that 30 per cent ofour field engineers must be women, weoffer female employees a rotation schedulethat encourages them to get experience onthe field. We also have specially dedicatednursing rooms for new mothers.

“We have yet to fully tap into thepotential of this talent pool. However, withthese small but imperative steps, we aredefinitely moving in the right direction.”

An important factor that should not beunderestimated, experts said, is thepressure women often place on themselves.

Taking charge“Women should also take charge of theircareers and should not be victims tocircumstance,” Babski said. “Do not beafraid to voice your opinion and share yourthoughts with your line manager. Make ithappen for yourself. It will be difficult, butyou are paving the path for others to follow.”

With a local, regional and global missionto recruit more women in the energysector, young female graduates must notbe discouraged, say women pioneers inthe industry.

“Women who are truly interested inengineering should not let anyone force themto change their career paths. It can bechallenging at times, but the key is to focuson the positive and not the negative,” saidMariam Al Hendi, Young ADIPEC Ambassadorand a Mechanical Engineer at GASCO.

“Everywhere in the UAE there arepeople encouraging women to pursue theirdreams; it is part of the vision and missionof our leadership. People subjecting womento gender profiling must realise half theglobal population is female, and notharnessing the talents of women because oftheir gender is not only discriminatory, butalso a waste of human resources.”

Conference Director Claire Pallen said,“We are very excited to be hosting an officialseries of Women in Industry events as part ofADIPEC 2014. We are dedicated to engagingwith and creating a community for womenworking within the oil and gas sector,whether that be engineers, administrationpersonnel or senior managers.

The second topical panel discussion ofthe Women in Industry series, ‘AchievingCEO or Member of the Board status’, takesplace on 13 October in Abu Dhabi and willreview the current number of womenworking in these positions and look at thefactors contributing to the glass ceiling,including cultural attitudes and maledominated environments. Both paneldiscussions take place at Li Beirut, Jumeirahat Etihad Towers, providing attendees withthe opportunity to meet in an exclusive‘women only’ gathering, while enjoying aprivate and informal, yet business-focusedenvironment.

The series will conclude with a landmarkevent at ADIPEC 2014 that will feature liveon-stage interviews with women, outliningtheir journey to success in their fields. Thesession will take place at the MEPC Theatreon 11 November, and will offer attendees anetworking opportunity where they canshare their thoughts and ideas with like-minded individuals. n

Women should be educated early aboutcareers in the oil and gas industry

We have yet to fullytap into the potential of thistalent pool”

Recruitment & Retention

A recent survey of female engineers worldwide by NES GlobalTalent on ‘Attracting and retaining women in oil and gas engineering’reported the following key findings:• 75 per cent of the women that responded to the survey said

they felt welcome working in the oil and gas industry, yet almosthalf (45 per cent) said they do not feel they get the samerecognition as their male colleagues.

• 89 per cent said they would encourage a female friend to pursuea career in the industry now, with 82 per cent saying they wouldrecommend a career in the sector to someone who is due tofinish their studies in a decade’s time. Some respondents saidother energy industries such as nuclear and renewables could joinoil and gas as attractive options in the future.

• 95 per cent said mentors were important for career

advancement, yet 42 per cent said they were neither a mentornor a mentee.

• Respondents provided a diverse range of suggestions whenasked what companies could be doing to attract and encouragewomen employees such as: educating women early (insecondary schools) about careers in the oil and gas industry;giving women a chance to take on more challenging offshoreroles; and providing equal benefits and opportunities.

• 39 per cent said they would consider taking less money in returnfor more work flexibility, with many citing a better work lifebalance and spending more time with the family as the mainreasons.

• 82 per cent said they planned to stay in the industry for the nexttwo to five years.

Watch out for an interview with Mariam Al Hendi, Young ADIPEC Ambassador, in the next issue of Oil Review Middle East

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THE NEED FOR moe collaboration within the oil and gasindustry to tackle the skills shortage is highlighted by thelatest Global Oil & Gas Workforce Survey by Air Energi, theleading workforce solutions provider, and OilCareers.com.

The survey documents the views of more than 500 professionalsfrom across the world.

“If we are going to see a real and positive change in the skillsgap, the industry as a whole must work together on the developmentof education, training and local content initiatives,” says OilCareersmanaging director Mark Guest. While three quarters of respondentsconfirmed that their organisation offered internal training, 29 per centof these admitted there was not a full selection of training available.

Also highlighted in the survey is the on-going challengesurrounding staff retent ion as an anticipated increase in projectactivity in the Middle East, North America, East Africa and Australiabegin to filter through. Air Energi CEO Duncan Gregson said, “The oiland gas industry is powered by a highly mobile and skilledworkforce. Experienced professionals are highly sought after, highlyremunerated and offered excellent benefits. The critical issue for theindustry in 2014 will be retaining staff, which is one of the key factorsin budget overspend and schedule delays.”

Other findings of the survey include 58 per cent of respondentsconfirming they expect salaries to rise in 2014 and 50 per centpredicting that hiring rates will increase. Meanwhile, 69 per cent ofthose questioned believe more should be done to promote theopportunities within the industry to younger generations. According tothe survey, engineers are the scarcest commodity followed by projectmanagers, drilling personnel, contract administrators and geologists.

High demand in the Middle EastAs far as the Middle East is concerned, the survey predicts a continuedhigh demand for all disciplines across all engineering verticals, as aresult of the high level of project activity, with the strong demand forgeology and geophysics personnel looking set to continue. Iraqcontinues to be an area of substantial growth while the number ofsignificant projects in the UAE means intra-regional competition willbecome increasingly fierce. “Iraq and Qatar are our strongest areas atthe moment, and we are excited about prospects in Abu Dhabi, wherewe have developed a number of programmes and strong relationshipswith clients,” says Andy Ryan, Air Energi’s vice-president for the Middle

East. “Saudi Arabia is very significant as well. These will be our areas offocus for the foreseeable future. We are excited about growthprospects and have opened up a number of new offices in the region.There are some exciting projects coming up, some at the FID stage.”However the situation in Syria and Iraq is, not surprisingly, having animpact on recruitment in the region.

Increased competition in the EPC/PMC market from Asia inparticularly, and the tight margins for such work, are increasingcompetition for affordable talent, according to the survey. This hasmeant that salaries have had to become more and more competitive,with companies having to be more creative in putting togetherpackages for attraction and retention. Furthermore, the differential inearning potential between the Middle East and other regions of theworld is not as great as it has been in the past. “We are having tosource talent from previously untapped markets,” says Ryan.

“The global LNG market is still exceptionally busy, and within theregion itself, the national operators have very similar sourcingstrategies, which impact on retention. Most clients tend to haverobust risk management frameworks and processes concerningareas such as occupational health, but they do not tend to applythese risk processes to areas such as recruitment and retention,”adds Ryan. “We are working closely with clients to help themimprove their retention and rehire rates.”

Labour market regulations such as those restricting the freemovement of expatriates from one employer to another can alsopresent obstacles to recruitment in the region, as can lengthy visaprocesses, while national content policies continue to have an impact.

With nationalisation programmes in place across the region, astrong focus will remain on the sourcing, training, development andretention of national workforces, according to the survey. It isnoteworthy that around 35 per cent of survey respondents find skillsshortages the biggest threat to the industry in the region, despitesignificant investments having been made in this area. “Air Energi iscommitted to assisting with the recruitment, training anddevelopment of nationals,” says Ryan. “We are engaging with locallabour departments to help build local content.” n

What is the biggest concern to industry in the Middle East?

Capital Costs

Economic Stability

Labour Costs

Safety Regula!ons

Skills Shortages

Visa/Immigra!on

3.15% 3.15%

34.75%

34.70%

4.40%

19.85%

Source: Air Energi/OilCareers.com

Tackling skills shortages and addressing theissue of retention are the key challengeshighlighted by a recent survey.

The need for further

industry collaboration

The industry as a whole must worktogether on the development of education,training and local content initiatives”

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MOST OIL AND gas companies inthis region and beyond arefacing a critical talent poolshortage that could, if not

tackled, hinder the long-term performance oftheir organisations.

While the root causes of the talentcrunch are clear – an ageing workforcecoupled with highly specialised roles and lowsupply of qualified engineers and managers– the solutions to meet the challenge remainless so. Replacing this ageing workforcewith highly motivated, skilled and loyal staffhas become the number one priority formany companies in this sector.

If they are to prosper in the future, theyhave to manage this ‘great turnaround’ nowand ensure it is as smooth as possible.

So serious is the issue that, in recentyears, heads of HR and recruitment havebeen focusing their efforts on a globalrecruitment drive. However, the recruitmentpool is not as big as it used to be asyounger, locally-based engineers areattracted to other engineering jobs outsidethe oil and gas sector, perhaps offering morepay and better conditions. This brings theissue of developing a globally mobileworkforce to the fore. This solution, however,has its own challenges, particularly on theability to transfer staff smoothly from onepart of the globe to another and managingthat transition in a cost-effective way.

Developing strategiesWhile recruitment is an outward facingfeature of many oil and gas companies, theyhave also been realising that it is importantto develop strategies to keep the peoplethey already have. Managing their internaltalent is a more personalised inward facingchallenge, encompassing strategies for onboarding, engagement, career development,succession planning and developing leaders– in simple terms, doing all they can to keepthe staff they already have.

All these issues have to be interweaved,both at a strategic level as well as thedelivery point. Recent research carried outby Oil Review Middle East with industry HRand talent management professionals raisessome interesting questions about how todevelop the capability of staff, engage them,develop virtual leaders to manage virtualwork teams and create a pipeline of leadersfor effective succession planning. Whilerecruitment can play a role in meeting thetalent crunch challenge, it seems thatmanaging the talent currently in place hasbecome a high priority.

As competition for scarce human talentheats up, oil and gas companies have todevelop their own internal pool of talent,devising innovative and flexible models,which are customised for their staff. Thismay mean more change managementinitiatives, proactively attracting more

women and moving them up the ranks, ormore successful on-boarding strategies,which lead to better employee engagement,performance and retention.

Creating workplaces where employeesfeel aligned and engaged with their roles andthe organisation can be a highly effectiveway to retain staff. Also, understanding howengagement levels are influenced by anorganisation’s culture, strategy execution,leadership, structure and processes is animportant step. It lets employees takeownership of their own development and itunderscores the link between individualperformance and business results.

As the talent crunch in the oil and gassector i ncreasingly takes hold, companiesneed to meet this challenge head on or facea human resource crisis, in both the officeand in the field. While recruitment is onepart of the solution, effective talentmanagement is a key component of thelong-term answer. n

Riad Mannan is conference director of the HRForum: Oil & Gas, to be held on 23–25November 2014 in Dubai. This timely forumwill provide a platform for oil and gas companyrepresentatives to debate not only thesechallenges, but more importantly, thesolutions. http://hrforumoilandgas.com.

Riad Mannan

The shortage of talent within the Middle East’s oil and gas sectorneeds to be addressed sooner rather than later, says Riad Mannan.

Tackling the region’s

talent crunch

As competition fortalent hots up, companieshave to develop their owninternal talent pool”

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THE BAHRAIN PETROLEUM Company (Bapco)has entered an agreement with Technip ItalyS.p.A, for the provision of Front EndEngineering Design (FEED) Services for theBapco Modernisation Programme (BMP).Bapco’s chief executive, Dr Peter Bartlett,signed the deal with Technip Italy S.p.A chiefexecutive officer, Marco Villa, in Awali.Technip will be based in its office in Rome,Italy, working to complete the critical front enddevelopment work for this mega-project byearly 2016.The ambitious BMP has been described as

not a ‘Project’ but in fact a ‘Programme’ which,in project management terms, is a group of related projects managed in a coordinated way to obtainmaximum benefits. It will be the single largest investment to date for Bapco, after the recentlyconcluded US$1.2bn Strategic Investment Programme, as a result of which the Bapco Refinery is nowthe first refinery in the Middle East to successfully demonstrate the capability of producing nearly100,000 bpd of Euro V Diesel and Group III Lube Oil Base Stock. The BMP’s main goal is now to improvegross margins and ensure the refinery’s competitiveness in future years to come.The signing ceremony welcomed dignitaries from both sides, and members of the Bapco board of

directors. The chairman of the board, Adel Khalil Al-Moayyed, wished all the best to both the Bapcoand Technip project teams for the successful completion of the FEED work. Al-Moayyed also highlighted Bapco’s ‘one-team’ concept, which is important to the company’s

work culture. Furthermore, Dr Bartlett added that it was key for both companies to establish long-lasting friendships.

Bapco and Technip sign a deal for the provision ofFront End Engineering Design Services.

Bapco joins forces with Technip to offer FEED services

OMAN OIL REFINERIES and Petroleum IndustriesCompany (Orpic) has invited bidders toprequalify for projects linked to the US$3.6bnLiwa Plastics Project (LPP) located in Sohar inthe north of Oman. There will be four engineering, procurement

and construction (EPC) projects, comprising asteam cracker, polymer unit, a Natural GasLiquids (NGL) extraction unit and a 300 km-longpipeline that interested parties can bid on, saidofficials from LPP.Prequalification of bids for these projects will

be executed in two stages. By the end of thesecond stage, the conception of joint consortiawill also be finalised.Orpic plans to issue invitations to prequalified

applicants, to tender for the four projects by theend of 2015 once the front-end engineeringdesign (FEED) has been finalised.LPP will be established adjacent to the Sohar

Refinery Improvement Project (SRIP), which iscurrently under construction in Sohar. Theproject features a 900,000 tonnes per yearethylene cracking plant as well as other plantsand associated utility and offsite facilities.

Orpic invites bidders toqualify for EPC projects

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FIREVU HAS INTRODUCED the new Multi Detector, bringing together VisualSmoke and Flame Detection and Thermopile technologies for the MiddleEast’s petrochemicals industry. FireVu is rolling out the first fire detection technology that features Visual

Smoke Detection (VSD), flame detection and now temperature sensingtechnology in the form of being built in thermopile.The Multi Detector will provide petrochemical operators a solution that

will detect and analyse smoke and heat patterns to raise alerts.VSD technology works by identifying characteristic smoke patterns

across a video image. It analyses changes in a range of variables such ascolour, brightness, contrast, shape, edge content, motion, colour matching

and loss of detail sooperators are ready toact if there is potentialfire danger.The installation of a

thermopile to detectradiated heat will havethe advantage of raisingalerts by using differenttechnology. It will offer future

triggers for false alarms.Steam, for example, canbe removed as a dangerpoint by setting heat

criteria abovetemperatures likely tobe reached.Simon Jenkins,

product manager forFireVu said, “VisualSmoke Detection isalready a very effectiveand proven technology,combining it withthermal radiated heatdetecting technologygives us a solution notoffered bycompetitors.”FireVu works with

various oil and gasinstallations in theMiddle East and willaim to expand its presence in the industry.The Multi Detector will also be rolled out across other industries including

manufacturing, food processing, power generation and air hangars.FireVu is a brand of the solutions arm of AD Network Video, part of

surveillance monitoring pioneer AD Group. FireVu works with a number of oiland gas installations in the Middle East and has targeted an expandedpresence within the petrochemicals sector. www.firevu.com

FireVu introduces the Middle East’s first Multi Detector

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Petrochemicals

The New Multi Detector from FireVU

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THE COMPLETION OF key petrochemicaland refinery projects will be announced atthe Abu Dhabi International PetroleumExhibition and Conference (ADIPEC). Theevent will take place at the Abu DhabiNational Exhibition Centre (ADNEX) from10-13 November 2014. More than 60,000oil and gas professionals from around theworld will attend the three-day eventexploring challenges and opportunitiesfacing the petrochemicals industry overthe next 30 years.

According to organisers of ADIPEC,details of the completion of the US$10bn(Dh36.72bn) Ruwais refinery expansion,the Abu Dhabi Oil Refining Company’s(Takreer) and the US$2mn Borougeproject of Abu Dhabi Polymers Companywill be given. The Ruwais refining complex, which is

situated 240 km west of Abu Dhabi city,was launched in 1982 and is set forcompletion by the end of the year. The Abu Dhabi Polymers Company’s

Borouge 3 petrochemical project, also duefor completion by the end of 2014, will bediscussed during the three-day event. Other key themes for discussion at the

event will include US shale gas extraction,supply and demand dynamics for fuelsand petrochemicals in the Middle East,new regional downstream projects, andnew trends and technologies.A number of key officials including

Jasem Ali Al Sayegh, CEO of Takreer, andAbu Dhabi Polymers Company CEO AbdulAziz AlHajri will talk during a session onthe UAE’s downstream industry. MichioKaku, an acclaimed physicist from theUSA, will make a keynote addressfocusing on fracking and the changingdynamics of the oil and gas industry. Ali Khalifa Al Shamsi, ADIPEC 2014

conference chairman and strategy and co-ordination director of ADNOC, said, “Wewill discuss shale gas and other non-traditional topics during the event.”

Petrochems projects plansto be discussed at Adipec

Adipec will be held at the Abu DhabiNational Exhibition Centre

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SAUDI ARABIAN FIRMAdvanced PetrochemicalCompany has announced itwill invest in a propanedehydrogenation (PDH) plantwith SK Gas in South Koreafor the production ofpropylene, which is used inplastics manufacturing.The US$1bn project, which

is set to commence in thebeginninig of 2016, will havecapacity to produce 600,000mtper annum of propylene.

The board of directors of Advanced Petrochemical Companygave the go-ahead to the equity investment of 35 per cent inPDH plant with SK Gas, for the production of propylene in SouthKorea, through its subsidiary Advanced Global InvestmentCompany (AGIC) which has a 95 per cent stake in Advanced andsources of AGIC equity participation will be announced later.

The total cost of the project is estimated around US$1bn andthe project will be financed 40 per cent equity and 60 per centwill be financed by the JV Co. through lending companies.Theproject has set off the construction activities and it is scheduledto be fully operational in the first half of 2016, with a nameplatecapacity of 600,000mt annum.

The financial impact of the new investment will be seenfollowing the commencement of commercial operation of theproject in 2016.Advanced Petrochemical star ted the construction of its plants

in May 2005. The company produces 455,000 tonnes per year ofpropylene and 450,000 tonnes per year of polypropylene from itsproduction facility situated in Jubail Industrial City, on the easterncoast of Saudi Arabia.

Advanced Petrochemical Companyto invest in PDH plant

Advanced Petrochemical Companywill invest in a propanedehydrogenation (PDH) plant withSK Gas in South Korea

QATAR IS SET to inject US$25bn for the growth and developmentof the domestic petrochemical and chemical industry. In 2012, theQatar Petroleum and Shell oil companies revealed plans to set-upan olefins project in Ras Laffan Industrial City at a total cost ofUS$6.4bn. The project will produce 1.1mn tonnes of ethylene and 170,000

tonnes of propylene per year."Petrochemical industries in Qatar have seen a remarkable

increase during the past few years," said Qatar Fuel AdditivesCompany general manager Nasser al-Kuwari.A number of plastics manufacturing industries use low-density

polyethylene (LDPE) in the production of cables and wires,injection moulds and pipes, agricultural product packaging, paintand lamination, said Qatar Petrochemical Company (QAPCO) CEOMohammed Yousef al-Mulla.QAPCO operates a plant adjacent to existing facilities in the

Mesaieed Industrial City as part of the Qatari strategy to makeoptimal use of natural resources in Qatar."Qatar complies with the quality and environment protection

standards in its petrochemical industries," al-Mulla added.

Qatar to invest US$25bn intopetrochemicals sector

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SAUDI ARABIA INTENDS to maintainits position as the world’s topranking oil producer, with hugespending plans that will drive

forward developments across the upstreamand downstream sectors through thecoming decade.The head of Saudi Aramco, the state oil

company, announced this summer that thegroup will roll out a capital spend ofUS$40bn every year over the next 10 yearsto keep oil production capacity steady, andto double gas output.Aramco is already the world’s biggest oil

producer, underpinning global demand, butis keen to expand its gas capacity to meetfast-rising local demand from industry andthe power sector.Khalid Al-Falih, the company’s chief

executive, told a summer conference that heexpects to see funds being directed acrossthe board, although he singled out offshorework as being an important new thrustamong the portfolio of upstream projects.Much of this capital spend will go into

offshore, he said, both in large-scale projectssimilar to the Manifa project in the Gulf, andmore recent offshore exploration in the RedSea and Midyan fields.“Although our investments will span the

value chain, the bulk will be in upstream,and increasingly from offshore,” he said.The goal is to maintain maximum

sustained oil production capacity at 12mnbarrels per day (bpd), “while also doublingour gas production,” he added.Al-Falih also warned about rising industry

costs, which will gulp a greater share of thebudget, throwing the spotlight more closelyon project economics. “To tap these increasingly expensive oil

resources, oil prices will need to be healthyenough to attract needed investments,” hesaid. “Long-term prices will be underpinnedby more expensive marginal barrels.”At Aramco, project costs have already

more or less doubled during the pastdecade despite all best efforts to mitigatecost escalation.That is the result of bottlenecks and

shortages in the supply chain plus, ofcourse, the always rising cost of utilisingcutting edge technologies in the field toextract oil and gas from ever more complexand challenging reservoirs.

Business as usualFor the most part, this is all business asusual for Aramco’s engineers andtechnicians, who are quite accustomed tomanaging large budgets and who haveworked tirelessly to grow the Kingdom’sproduction capacity to its current loftyheights.As Saudi Arabia’s number one economic

sector - last year oil netted RiyadhUS$274bn in revenues - the oil and gasindustry routinely enjoys multi-billion dollarinvestment programmes, which have proveda rich source of work for foreign contractorsand service companies.Among the large upstream projects

underway is the US$3bn Khurais oil fieldexpansion in the Eastern province, wherebidding is currently in play.According to statistics from the National

Commercial Bank, the oil and gas sectoraccounted for 40 per cent of total localconstruction contracts awarded during thesecond quarter of 2014.

Khaled Al-Falih, CEO of Saudi Aramco, has announced a capital spend of US$40bnevery year over the next 10 years

Saudi Aramco is to spearheada US$40bn annual investmentdrive over the next decade tomaintain its number oneproducer status. Martin Clarkassesses the oil giant’sprospects and plans.

Saudi Aramco

pushes ahead

Although ourinvestments will span thevalue chain, the bulk will bein upstream and increasingyfrom offshore”

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A lot of this was focused on the Jizanregion and Aramco’s development of theJizan refinery and terminal project there,one of a number of flagship refininginitiatives underway to boost the nation’sdownstream capabilities.All of this means plenty of continuing

work for contractors like India’s Essar, whichrecently bagged a US$54mn deal toupgrade a crude stabilisation plant at theAbqaiq plant in Shaybah on behalf ofAramco.One of the challenges facing

international firms, however, is a greateremphasis in Saudi Arabia on using localsuppliers and equipment manufacturers. This has become something of a priority

for Aramco, to support government-wideinitiatives to involve Saudi nationals in thecountry’s leading industry as much aspossible.It has promoted a raft of joint ventures

between Saudi enterprises and foreigninvestors.

Hunt for gasBoosting natural gas production especiallyhas become a top priority for Aramco.The search for new gas deposits is also

taking centre stage as Saudi Arabiastruggles to keep pace with its rapidly risingdomestic demand.The country holds the world's fifth-

largest proven reserves of gas, althoughmuch of its current production is associatedgas linked to oil production.The Kingdom expects local gas demand,

mainly for power generation, to almostdouble by 2030 from 2011 levels of 3.5trillion cubic feet per year.Aramco has been spending heavily to

get the ball rolling with major gasdevelopments such as Arabiya, Hasbah andKaran, Saudi’s first non-associated offshoregas field development.One flagship scheme now being rolled

out is the master gas system expansion. India’s Dodsal secured a contract earlier

this year for the development of the firstphase of the system expansion in Madinah,which is due in late 2017. It involves the installation of 585 km of

pipelines and the construction of two gascompression stations. Not all of Aramco’s gas projects have run

smoothly though, notably efforts to explorethe barren Empty Quarter desert region. A number of high profile joint ventures

have come unstuck in this zone after failingto find gas with the drill bit.Shell is the latest partner to announce

its exit from the area, even though it didfind some gas, leaving Aramco to go italone.It is a disappointing end to what was

originally seen as an exciting new initiative

to get involved in Saudi’s lucrative upstream sector.

Unconventional gasOne of the challenging areas that Aramcoplans to square up to as it seeks to bolsterhomegrown gas production is harnessingthe nation’s unconventional energypotential.The turnaround in gas production in the

United States through tapping into shalehas not gone unnoticed by others aroundthe world, with many now keen to emulatethis success.Saudi oil minister Ali al-Naimi has

estimated the country's unconventional gasreserves at more than 600 trillion cubicfeet, more than double its provenconventional reserves.

A number of top international companiesare now showing an interest in bidding forwork to develop some of this clearpotential. Aramco is looking to build processing

facilities, wellheads and pipelines forunconventional gas in Turaif in the northernpart of Saudi Arabia where large miningproject Waad al-Shamal is currently underdevelopment.It hopes to produce as much as 200mn

cubic feet per day of unconventional gas by2018 to supply the project and anassociated power plant.Potential partners include South Korea’s

GS Engineering and Construction, Italy’sMaire Tecnimont, Japan’s JGC and Canada’sSNC-Lavalin, according to industry sourcescited recently by Reuters.Like others, Riyadh has been inspired by

the recent North American shale gas surge,which has transformed the country from anet gas importer to an exporter.Saudi has begun investigating its

unconventional gas reserves in variousother locations including the northwestarea, the Eastern Province and in theEmpty Quarter, although work remains atan early stage.

TechnologyThe test facing Aramco in theunconventional gas sector also underscoresthe company’s growing dependence ontechnology, once again, a similar themethroughout the industry.

Al-Falih acknowledged the industry’sproven track record of reinventing itself toturn challenges into opportunities andexpects more of the same.“We are convinced that innovation and

cutting-edge technology are the keystrategic enablers of our current successand future competitiveness,” he said. It means the group is tripling its research

and development manpower, and increasingits funding for this crucial area five-fold.Again, the rationale here is largely

economics. Aramco is on target for increasing its oil

recovery rates to 70 per cent, allowing it toadd more than 100bn barrels of oilresources to an already substantialreserves portfolio. New advances in drilling and other areas

will also be vital to Saudi Arabia realising itsas yet untapped unconventional gaspotential.On a national level, there is interest too

in the renewable energy segment, withSaudi Arabia looking to solar power, inparticular, to offset some of its dependenceon fossil fuels.It is not a short-term fix, but long-term it

could keep Aramco among the top tier of oiland gas producers for many more decadesto come, keeping the lights on in homesacross the country, without drainingprecious hydrocarbon reserves.It is good news for the market too,

potentially freeing up additional oil and gasfor export.In fact, in the future Saudi Arabia could

– at least, theoretically – be one of theworld’s lowest cost mass producers ofsolar electricity, although this remainssome way off.

No shirkingDespite all of these many challenges, SaudiAramco does not plan on shirking itsresponsibilities as the world’s leading oilproducer.The company continues to diversify and

increase its global footprint, and ramp up itsdomestic business, just as it has done formany years previously.And the intention is to do it in hand-in-

hand with other international oil companies. “Even as other companies are

retrenching, we will be investing to build avertically and horizontally integrated, top-tierrefining, marketing, petrochemicals, lubesand power business,” al-Falih said recently,“with much of that expansion coming in theform of joint ventures with other leadingglobal firms at home and abroad.”It has been a busy year for the Aramco

team already, and 2015 will be no different.The company has been in the oil game

for a long time and, as in most other walksof life, experience counts for a lot. n

Innovation andcutting-edge technology arethe key strategic enablers ofour current success andfuture competitiveness”

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Saudi Aramco

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SAUDI ARAMCO IS rapidly leveraging its feedstock cost advantages and afavourable geographic portfolio to become a growing global competitor inchemical production, according to new research from IHS (NYSE: IHS), theleading global source of critical information and insight.Similar to the chemicals businesses of other oil and gas majors, Saudi

Aramco’s product focus is comparatively narrow. The company producescommodity chemicals and polymers, including olefins, derivatives andaromatics. At present, Saudi Aramco’s chemical business accounts foraround 10 per cent of the corporation’s revenues and earnings.“Saudi Aramco’s entry into the petrochemical space is quite recent, so its

rapid growth in the space is quite remarkable,” said Sanjay Sharma, vice-president, Middle East and India at IHS Chemical. “Saudi Aramco is pursuinga business strategy that identifies advantaged feedstock and optimises thelinkages between refinery, gas processing operations and petrochemicals.This trend of integrating refineries and petrochemicals is common in otherregions, but is more recent in the Middle East, which is leading to morearomatics and derivatives production.”Saudi Aramco is participating in domestic and international joint ventures

(JV), and the company has driven continuous improvements in its domesticand international projects, mainly in China, South Korea, Japan and the USA,according to the new report, IHS Chemical Company Analysis: Saudi Aramco.“The integration of Saudi Aramco’s oil and gas production into its refinery

and gas processing operations, along with the manufacturing site synergiesachieved in the company’s large petrochemical complexes, provide strongcompetitive advantages for the company,” Sharma said. “This approach isexemplified by the company’s world-scale Sadara petrochemicals project, aUS$20bn JV between Dow Chemical and Saudi Aramco.”

Sadara, according to the IHS report, is scheduled to be onstream in 2016and will take advantage of the company’s access to low-cost, gas-basedfeedstocks and liquid feedstocks. Sharma said, “Sadara’s Jubail complex willproduce an array of higher-value performance products – some of whichhave never been produced in the region, which is significant for the market.”The company’s Petro Rabigh integrated petrochemicals complex, a JV with

Sumitomo of Japan, that produces olefins and derivatives is undergoingexpansion, with the addition of Rabigh II, which is expected to startproduction in 2016 to 2017. The main products will include ethylene propylenerubber (EPR), thermoplastic polyolefin (TPO), methyl methacrylate (MMA)monomer and polymethyl methacrylate (PMMA), as well as low-densitypolyethylene/ethylene vinyl acetate (LDPE/EVA), para-xylene/benzene,cumene and phenol/acetone.“Sadara and Rabigh II will be the leading projects that will continue to

secure a strong foothold for Saudi Aramco in the petrochemicals market,”Sharma said. “They will enable the company to realise its vision of becominga leading player in chemicals production.”According to the IHS report, Saudi Aramco has a number of other JVs, both

in the region, and elsewhere, including in South Korea, China, Japan, and inthe USA, where it holds a 50 per cent share in Motiva Enterprises LLC. SaudiAramco’s strategic projects, noted the report, located mainly in the MiddleEast and Northeast Asia, cover the most demand-thirsty markets in the world. Saudi Aramco (Aramco Asia) is also exploring the possibility of starting a

refinery in Tuban, East Java, Indonesia. The company signed a memorandumof understanding in 2012 with PT Pertamina (Persero). If started, this refinerywill produce petroleum and petrochemical products that will enable thecompany to cover broader Asian markets.“Cost reduction and reliability will, however, remain critical elements of any

company’s strategic direction,”Sharma said. “Saudi Aramco is in a growthmode, aiming to claim a greater global market share for many commoditychemicals and plastics, as well as make new forays into higher-valueperformance chemical markets. As they significantly broaden their portfoliowith these higher value performance chemicals, we expect they will becomea force to be reckoned with during this decade.”For more information on the IHS Chemical Company Analysis: Saudi Aramcoreport, please contact [email protected].

Saudi Aramco grows its presence in chemicals

• Saudi Aramco sourced 75 per cent of material procurement (US$6,232mn) and 92 per cent of service procurement (US$30,432 mn) from localcompanies in 2013

• 25 per cent of Saudi Aramco’s workforce was born after 1980 – by 2020‘Generation Y’ will be the largest demographic in the company

• 6,546 employees received leadership training• Saudi Aramco’s total workforce in 2013 was 57,283, of which 48,385

were Saudi and 8,898 expatriates• Saudi direct hires were 1,428 in 2013, 65 per cent up on 2012• Saudi Aramco sponsored more than 2,000 undergraduate and

postgraduate students• Saudi Aramco employees completed 5.2mn hours of training• 216 women completed the women in business programme• 395 students graduated from the Saudi Aramco Professional

Development Academy• 57 patents were granted by the US Patent and Trademark Office

Saudi Arabia’s Exploration and Petroleum Engineering Advanced ResearchCenter (EXPEC ARC) made progress in developing technologies including aSmartWater Flood Field Pilot; reservoir nanoagents; the ‘Prosperity’application for predicting reservoir quality; microwave energy to mobiliseheavy oil; drilling microchip sensor technology; and a high-temperatureresistant downhole video camera.

Source: Saudi Aramco Annual Review

Facts and figures: Saudi Aramco in 2013

56 oilreview.me Issue 6 2014

Saudi Aramco

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SAUDI POWER TRANSFORMERS Co(SPTC) has received Saudi Aramcoapproval to manufacture powertransformers and has been added tothe list of approved suppliers. SPTCmanufactures power transformers upto 100MVA and 145Kv class, meetingIEC, BS, and ANSI-IEEE specifications.SPTC also has a repair shop to repairand refurbish old transformers, fieldservices teams and a shop toassemble mobile substations. SPTC’s factory in Dammam, Saudi

Arabia, is the largest powertransformer factory in the region andits test lab is the most advanced.SPTC started production in late 2012and has manufactured and repairedmany power transformers for utilitiesand industries in Saudi Arabia such asSaudi Electricity Company, Marafiqand National Grid SA. SPTC is a 50 per cent JV between CG power Belgium (Pauwels) and Electrical Industries

Co. (WESCOSA & Saudi Transformers Co.). The factory is ISO 9001 certified by TUV Germanyand under a know-how license from CG power Belgium, with design and production qualitymonitored by CG staff. SPTC contributes actively to offer career opportunities at all levels toSaudi nationals, with provisions for training locally and in Belgium.

58 oilreview.me Issue 6 2014

SAUDI ARABIA’S TOTAL rig count continues torise in 2014, reflecting the high level ofexploration and development activity.According to industry sources, the total rigcount could reach 200 by the end of 2014.

Saudi Arabia Land Rig Count, 2014

32 31 3134

3634

31

38

4143 44 44

46 4749

52

20

25

30

35

40

45

50

55

Jan Feb Mar Apr May Jun Jul Aug

Gas

Oil

Source: BakerHughes

SPTC has received Saudi Aramco approval to manufacturepower transformers

Saudi Aramco

Saudi Arabia rig count

Saudi Arabia Offshore Rig Count, 2014

3

65

45

65

1

17

13

16 1614

17

20

15

0

5

10

15

20

25

Jan Feb Mar Apr May Jun Jul Aug

Gas

Oil

Source: BakerHughes

SPTC receives Saudi Aramco manufacturing approval

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Issue 6 2014 oilreview.me 59

SAUDI ARAMCO RECENTLY opened a new research centre inHouston, the latest in a global network of new research anddevelopment centres, marking the energy giant’s increasedcommitment to R&D.Speaking at the inauguration of the centre, Khaled Al-Falih,

president and CEO of Saudi Aramco, said that the centre wouldaddress the range of upstream opportunities and challenges,including production and drilling technologies, reservoirengineering, geology, geophysics technologies and advancesrelating to subsurface sensing and control. “We believe the way to research success lies in co-operating

and collaborating with other leading institutions, whose strengthsare complementary to our own,” said Al-Falih. “That is why wehave adopted an open model of innovation, integrating capabilitiesand ideas from around the world through strategic researchalliances, investing venture capital in startup companies pursuingcutting-edge energy technologies and, of course, through ournetwork of global satellite research centres.”

In another development, Saudi Aramco Energy Ventures(SAEV), the venture investment subsidiary of Saudi Aramco, hasmade a major investment in Siluria Technologies, a pioneer in thecommercial production of fuels and chemicals made from naturalgas. Siluria has developed a catalytic process for transformingnatural gas into transportation fuels and commodity chemicals inan efficient, cost-effective, scalable manner using processes thatcan be integrated into existing industry infrastructure. It hascreated a growing portfolio of process configurations withapplications in upstream, midstream gas processing, downstreamchemicals production and refining operations. The investmentcould lead to Saudi Aramco using Siluria’s natural gas to chemicalsprocess and fits with its drive to diversify its portfolio and grow itsdownstream activities.SAEV’s mission is to invest globally in start-ups and high

growth companies with technologies of strategic importance toSaudi Aramco.

Saudi Aramco boosts R&D activity

The new research centre in Houston, USA

Saudi Aramco

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GEYAD FOR INDUSTRY and Contracting(formerly Geyad for Commerce and Import),a leading Saudi Arabian Saudi Arabianfabricator of structural steel, pressurevessels, storage tanks and pipe spools, isexpanding capacity, having commissioned anew production unit in Dammam. The newfacilities will enable it to increase steelproduction and to manufacture higherthickness pressure vessels.

Geyad’s general manage r Naif Ababtainsaid that the company’s commitment tocustomer satisfaction was the secret of its

business success as it is able to retain itscustomer base even in difficult times.

Established in 1980, Geyad is registeredwith SGS for ISO 9001:2008 and isaccredited with ASME “U” stamp related topressure vessel fabrication and “R” and“NB” stamps from the National Board ofBoiler and Pressure Vessel Inspectors(NBBI), according to the company.

It has supplied shop-fabricated structuralsteel to Saudi Aramco and SABIC on manyof their large projects. The company has alsobeen a supplier to a water cooling project inRas Laffan Qatar, as well as to NationalChevron Phillips, Satorp and Sadara.

Geyad provides a comprehensive designand detailing facility for steel structures,tanks and pressure vessels, utilising state-of-the-art design software. Geyad operateson strict Quality Assurance and QualityControl (QA/QC) procedures for itsmanufacturing processes. Internal andexternal quality audits are carried out bycertified auditors. Welding inspection iscarried out by AWS qualified inspectors.

The company has an in-house NDTtesting facility, carried out by certified LevelII inspectors.

Geyad’s product portfolio falls into fiveprincipal categories: structural steel;

pressure vessels; storage tanks; pipe spools;and miscellaneous structures.Manufacturing capabilities include platerolling up to 50mm thick and 3m wide andCNC-controlled cutting, drilling and coping.

Geyad is in the process of revamping itssafety system and getting it accredited toOHSAS 18001: 2007.

The company is an approved vendor withSaudi Aramco, SEC, SABIC and MARAFIQas well as with the Saudi Arabian Ministry ofDefense and Aviation.

RACCORTUBI MIDDLE EAST FZE, the stockist and distributor of pipes,tubes, fittings and flanges, continues to do good business following itsestablishment last year in response to regional customer demand forpiping materials.

Supplying industrial facilities, such as chemical and petrochemicalplants, oil installations, power plants, shipyards, and offshore platforms,the Raccortubi Group subsidiary provides customers with pipingmaterials in stainless steel (304/304L, 316/316L, 321/321H, 304/304H,347/347H), duplex and superduplex (UNS S31803/S32205, UNS S32760and UNS S32750), superaustenitics (6Mo, 904L), and nickel alloys.

Raccortubi Middle East said that as a result of the Raccortubi Group’sorganisational structure, which incorporates both stockholding andmanufacturing activities, it is able to take advantage of the integrationbetween Group companies for continuous stock replenishment.

Mr Swami, Raccortubi Middle East managing director, said,“Thanks to our integrated manufacturer we are able to provide ex-stock materials in accordance with specifications which alreadyadhere to the most stringent market demands.”

The Group’s Tecninox plant continuously replenishes Raccortubistocks with fittings in stainless steel, duplex, superduplex,superaustenitics, and nickel alloys. Tecninox has recently added to itslist of end-user approvals, with its butt weld fittings being technicallyapproved by the global energy corporation Petrobras.

This news follows the launch of Raccortubi’s new subsidiary inSouth America, Raccortubi do Brasil Ltda, which is a furtherexample of how the business is optimising its synergies tomaximise the services provided at each of its latest distributionpoints in Brazil, Dubai, and Singapore.

A Raccortubi representative said that due to the stock availabilityand integrated manufacturing plant, the company is able to respondimmediately to material requests, while the manufacturing activitiesprovide support in both the flow of stock replenishment and flexibilityof supply, an attractive prospect to end users.

Furthermore, according to Raccortubi, in-house specificationshave been engineered to cover the vast majority of end-userrequirements, and its certified products do not need additionaltesting, as this has already been carried out as part of the standardproduction process.

Raccortubi Group companies benefit from ISO, PED and NORSOKcertifications, as well as featuring on a large number of vendor lists,including those of SABIC, Sadara, BP, ADNOC, ZADCO, GASCO,TAKREER, KOC, Litwin, Maersk Oil Qatar and EIL.

Swami concluded, “We continue to strive for top-quality productsand satisfied customers.”

Raccortubi Middle East celebrates success after first year in business

Geyad looks to play enhanced role in GCC project market

Raccortubi Middle Eastlaunched in 2013

Saudi Aramco

Geyad general manager Naif Ababtain

Geyad has been expanding its capacity

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62 oilreview.me Issue 6 2014

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SABIC SIGNED A Memorandum ofUnderstanding (MoU) with hte inHeidelberg, Germany on 5September 2014 to establish a

satellite laboratory for high throughputexperimentation to increase its R&Defficiency. hte is a leading high throughputexperimentation company that provides avaluable upside to heterogeneous catalysisand enables fast track R&D.

The MoU was signed by Dr. ErnestoOcchiello, EVP – technology and innovation,and Dr. Wolfram Stichert, CEO at hte GmbH.

Under the MoU, hte will provide atechnology platform to support SABIC incatalysis R&D. This will include advanced

testing equipment which will be hostedexclusively at hte’s newly constructedlaboratory building in Heidelberg, Germany.SABIC will benefit from a unique R&Denvironment with dedicated high throughputexperimentation laboratories and specialisedpersonnel. hte’s offering additionallyencompasses state-of-the-art workshops,infrastructure, technology, service, and cata

Commenting on the MoU, Dr. ErnestoOcchiello said the memorandum is in linewith SABIC’s 2025 strategy for the growthof petrochemicals and meeting the futurechallenges of R&D. “We are happy tocontinue our collaboration with hte who weconsider a forefront provider of modern R&D

solutions and technology. An innovativepartner like hte will indeed add value to ourbusiness in the long term, and this willenhance our innovation pace significantly.” n

SABIC signs MOU to boost

R&D efficiency

Saudi Arabia

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THE 11TH ROUND of the SABIC TechnicalMeeting & Exhibition (STM-11), will be heldfrom 3-5 November 2014 at the Multi EventCenter in Jubail Industrial City, SaudiArabia, under the patronage of Saudi BasicIndustries Corporation (SABIC).

Organised by Al-Harithy Group - ACECreative, STM is a specialised meetingwhere SABIC officials and researchersgather every other year to exchangetechnical knowledge and to becomeacquainted with state-of-the-arttechnologies (www.stm-11.com).

This year’s exhibition is touted to be thelargest exhibition in the Kingdom and one ofthe largest in the Middle East, with thetheme ‘Commitment to Reliability &Sustainability’. SABIC has invitedcompanies from all over the world topresent their latest products, services andtechnologies to SABIC decision makers andtop professionals.

The wide-ranging technical programmeincludes keynote speeches, workshops and

paper sessions by experts from SaudiArabia and elsewhere.

The exhibition, which will be held as partof STM-11, has been drawing a growingnumber of participants over the years, theorganisers said. The last event attracted310 exhibitors from 23 countries.

STM has been attracting leadingcorporations such as GE, ABB, Siemens,Emerson, Schneider, Shell, Yokogawa,Emerson, Johnson Matthey, Honeywell,Hisaka, Endress & Hauser, 3M, BASFCorporation, HOERBIGER, GEA Group, VLine Group and many others who haveparticipated in the last three events.

The sectors for STM-11 includepetroleum, mineral resources, chemicals,industry and electricity, infrastructure anddevelopment, environment, agriculture andwater, communications and electronics,education and training, health and safety,operations and maintenance, andtransportation and shipping.

The growth in the number speakers,

visitors and exhibitors has led to a demandfor an increase in exhibition space from12,000 sqm to 20,000 sqm.

SABIC is the world’s second largestdiversified chemicals company, and is thelargest and most profitable non-oil companyin the Middle East. A public company basedin Riyadh, it operates in 40 countries.

STM-10 had 310 exhibitors and 30,000 visitors(Photo: ACE Creative)

SABIC to host STM-11 in November

Issue 6 2014 oilreview.me 63

Saudi Arabia

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IN MARCH 2013, Saudi Arabia’s oil ministerAli Al Naimi announced plans to drillseven test wells to extract shale gas aspart of a programme to develop the

Kingdom’s unconventional oil and gasreserves. While the US unconventional oiland gas boom has made ‘shale’ a buzzwordamong energy and business analysts, themove to develop this resource in a countryrenowned for its conventional oil and gasreserves can seem like a curious contrast.

The development, however, of a nationalshale gas network can be seen as astrategic move for the Saudi government todrive its economic growth and secure futurerevenue and employment streams.

While shale gas has gained publicprominence, due to the development ofreserves in the US, few understand what thedevelopment of this resource actually entails.

Essentially pockets of natural gas trappedin dense, impermeable sedimentary rock,shale gas production is a complex businessinvolving seismological study, complexextraction systems and multifaceteddistribution infrastructures. Similar to nuclearand renewable energy, the development ofshale gas depends not only on theavailability of resources, but on supportivefiscal measures and skilled talent.

There is good news for Saudi Arabia inthis respect. The oil minister has forecastapproximately 17 trillion cu/m of shalereserves in the Kingdom, which equates tomore than 100mmbbl of oil. Saudi Arabia’sshale reserves exceed that of Mexico(averagely 15.4 trillion cu/m), Australia (12.4trillion cu/m) and Russia (8 trillion cu/m).

Saudi Arabia has identified substantialshale gas formations in the northwest of thecountry, the South Ghawar basin – theworld’s largest conventional oil field – and theRub’al-Khali. A recent report by Accenture,International Development of UnconventionalResources: If, Where and How Fast, statesthat the development of the unconventionalenergy infrastructure in Saudi Arabia will

enable it to meet its domestic gas needs andincrease oil exports.

While it is blessed with vast oil and gasreser ves, Saudi Arabia is also experiencing asurge in domestic electricity demand. Withan estimated population of 27mn currentlyusing up to 53GW of electricity in the peakseason, according to Saudi Arabia’sElectricity and Cogeneration RegulatoryAuthority, coupled with an ambitious pipelineof multi-billion dollar infrastructural projects,the country’s electricity consumption willsurely rise.

In order to meet the electricity demand,Saudi Arabia has burned oil and gas thatcould be exported, leading to a loss inexport revenues. Similarly, this fuel isprovided to local utilities at a subsidisedrate, further exacerbating the problem oflost income. In fact, the International EnergyAgency (IEA) predicts that the Kingdomcould turn into an energy importer withinthe next 20 years if the rate of electricityconsumption continues.

Developing unconventional resources likeshale gas could provide a way to addressincreasing domestic electricity demand. Itprovides resources to produce electricitywhile freeing up existing oil reserves forexport, thus earning valuable revenues. Italso means that the ‘business case’ for thecountry for shale gas is attractive. Althoughthe local gas sale price is heavily subsidised(at US$0.75 per million BTUs – about 20 percent of process in the US), using this gas tosubstitute oil produces an attractive returnbased on the international sale price of theproduced oil available for export rather thanon the gas price.

Also, a ’multiplier’ effect means that, aswell as releasing oil for export, this gasproduces electricity which supports thecountry’s economic growth, allowing it tocontinue to diversify from a crude oilexporter to an exporter of refined productsand other goods and services.

Harnessing national shale gas reserves

will not happen overnight given thedevelopment required and technicalchallenges. The country does, however, havea strong oil and gas services sector andconventional skilled workforce, and localcompanies have made progress in recruitingforeigners with unconventional skills tosupport development.

The progress was illustrated by SaudiAramco CEO Khalid al-Falih who recentlystated that the company plans to produce5.7mn cu/m per day of unconventional gasby 2018, to power a 1,000MW plant to feeda new phosphate mining and manufacturingfacility by Maaden in northern Saudi Arabia.

Meanwhile, there is also progress on thedomestic utilities front. The governmentplans to decrease its dependence onconventional fuel to produce electricity bydiversifying its energy mix. By 2032, it willhave 41GW of solar energy and 17GW ofnuclear energy to meet its domesticelectricity demand.

What Saudi Arabia has, which is unique,are the reserves, government support, andvision to develop this sector as an engine forcontinued country development. The next twodecades will be filled with much activity,change and dynamism proving that theKingdom has what it takes to remain a globalpowerhouse in the world energy business. n

Accenture Management Consulting managingdirector Kenan Nouwailati

While the US leads the way in shale gas development, KenanNouwailati, managing director of Accenture ManagementConsulting, discusses Saudi Arabia and its unconventional plans.

Saudi shale boom shifts

energy narrative

64 oilreview.me Issue 6 2014

Saudi Arabia

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THE SIXTH SAUDI Arabia International Oiland Gas Exhibition (SAOGE) will be heldin Dammam from November 24-26, withmore key industry players, technicalexperts, professionals and decisionmakers than ever before set to descendon Dhahran for the event.More than 150 companies will

welcome more than 8,000 visitors, asindustry players from more than 18countries meet with their peers at the2014 edition of SAOGE. SAOGE, the biggest oil & gas

exhibition in the Kingdom, hasexperienced high demand from exhibitors

this year, with confirmed companiesincluding Qatar Petroleum, ChinaPetroleum Technology & DevelopmentCompany, Al Estagamah Global Group,Abdullah H. Al-Shuwayer Sons Trading andContracting Company, Alaa for Industry,Alfanar, Alsuwaiket Oil and Gas Services,Middle East Specialized Cables Co.(MESC), Sawary Energy and Saudi SteelPipe Company among the exhibitorsinvolved in the upcoming sixth edition ofthe exhibition.Companies from both regional and

international markets understand thehuge potential that the Saudi Arabian oiland gas sector offers, and will look touse SAOGE to roll out their products andservices to this lucrative sector. Event attendees confirmed so far will

comprise of 34 per cent foreignexhibitors from China, France, Germany,India, Indonesia, Italy, Russia,Switzerland, Singapore, Taiwan, Turkey,United Kingdom and the USA.

Saudi Arabia set tohost SAOGE 2014

Last year SAOGE welcomed 7,975 visitorsto the Kingdom of Saudi Arabia

SAOGE 2014

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WHILE THE OPERATION of process equipment isgoverned by international health and safety protocols,the possibility of human error cannot be ruled out.Mechanical key interlock systems can help operating

companies to reduce this risk by preventing process controlequipment from being incorrectly operated.

What are mechanical controls and interlock systems?Mechanical key interlock systems are twin-keyed mechanical lockingdevices which operate on a 'key transfer' principle to control thesequence in which process equipment may be operated. This systemis widely accepted as an effective safety management tool and isbeing adopted by many of the world’s oil, gas and chemicals majors.Valve mechanical interlocks are also recommended in a number ofinternationally recognised standards for specific process applications.Key interlocks date back to 1856, when they were first used in the

British railway interlocking control for trackswitching. Trapped key interlocks are appliedto valves, gears, pig launcher closuredoors, switches, machine gates, railwaysor any form of equipment which may beoperated manually. The 'open’ or'closed' position of a locked valve of aninterlock can only be changed byinserting a unique coded key, whichunlocks the operating mechanism enabling the operation of the valveor other device.Operating the unlocked

equipment immediately traps theinitial (ie, inserted) key; when the operation is complete, a secondary(previously trapped) key may then be released, thereby locking theequipment in the new position. This secondary key will be coded incommon with the next lock (item of equ ipment) in the sequence. Bythis simple coded key transfer principle a ‘mechanical logic' system iscreated which prevents operator error.

Standards such as UK Pipeline Safety Regulations recommendinterlocks as a suitable safety system in the operation of pig traps.Whether a process system is of a simple design, controlled

manually, or a complex controlled system like DCS, key interlocks canprovide a reliable mechanical assurance of safe operating practice inwhich the operator's scope for error will be eliminated.

A customised solutionAlcatraz Interlocks provides a full mechanical solution with mechanicalkey interlocking on all types of valves, gears and switches. Whether aprimary or secondary safety system, key interlocks can be customisedto fit valves, switches or devices. Meeting the relevant API, British andEuropean standards relating to specific process applications, Alcatrazinterlocks are recognised as an effective safety management tool andsafeguard the most complex operating sequences. They are used inthe oil, chemical and gas industries and offshore industry. Applications include numerous critical installations, such as

changeover of pressure relief valves, loading and unloading of pigtraps, sampling devices, industrial mixers and separators, filters andgranulators. Alcatraz interlocks also safeguard the coupling anduncoupling of loading arms and hoses on discharge and loadingstations. For example, a simple, low-cost system eliminates the riskof human error or negligence in the tanker loading procedure bypreventing a vessel leaving the transfer area still connected to t heonshore facilities via a loading arm. n

Alcatraz type DML valve interlockmounted on a 2”globe valveincorporating keys, 1 and 2

Lester Millard, managing director at Alcatraz Interlocks B.V.,looks at the effectiveness of key interlocks as a locking device.

Reducing the risk

of operator error

Key interlocks date back to 1856, whenthey were first used in the British railwayinterlocking control for track switching”

68 oilreview.me Issue 6 2014

Valves

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IN THIS YEAR’S ‘World Energy Outlook’the International Energy Agency (IEA)says that Enhanced Oil Recovery (EOR) iscurrently little used, but has enormous

potential for increasing the world’s availablesupply. Developments – both on- andoffshore – could make a huge difference tothe supply side in the Gulf. “EOR can be defined as the set of

technologies that permits production of agreater share of the oil that remains afterprimary and secondary recovery,” says theIEA1. It lists the associated technologies as: 6 Use of steam to reduce viscosity 6 Miscible gas injection (including use ofCO2 and water-alternating gas)

6 Chemical flooding with polymers and/orsurfactants

6 Microbial EOR 6 Combustion flooding

6 Tailored water injection (usually consid-ered as an unconventional technique)

6 Use of vibration processes.

In a document on Enhanced OilRecovery2 Shell Global SolutionsInternational states, “Studies indicate thatjust a one per cent increase in the globalefficiency of hydrocarbon recovery wouldraise conventional oil reserves by up to 88bnbarrels (bbo), which is equivalent to threeyears of annual production at today’s level.”

Varying projectionsProjections vary widely, but the IEA points outthat most information concerning the potential

There is considerable scope for increaseddeployment of EOR technologies (Photo: Shell)

Only around a third of oil in conventional reservoirs is typically recovered through primary andsecondary recovery processes. This can be significantly increased if the right combination oftechnologies is employed.

EOR offers huge potential for

increasing supply

Around 280 schemes are thought to be in operation at present,producing an additional1.3mn bpd of oil”

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of EOR actually relates to the USA, where it isestimated that more than 50 bbo are currentlyrecoverable by one or more of the processeslisted above (CO2 injection principally so far).Without EOR, recovery rates average just 35per cent. “Using a conservative estimate of 10per cent for the additional average recoverypossible by systematic application of EORtechnologies gives 100 bbo of potentialadditional oil,” says Shell.Globally, including in MENA, the picture

is much more uncertain. The IEA’s ownpredictions suggest that 430 bbo arerecoverable, using an average improvementin recovery rate of just 10 per cent and onthe same basis of output calculation. Usinga different model, the Agency says “Thisyields an EOR potential of some 1,000 bbo,four times the reserves of Saudi Arabia”; ofthese at least 300 bbo look most likely to beachieved. These are huge numbers,whichever view is taken.The global energy watchdog stresses

that most of the technologies classified asEOR only developed in the specialconditions of the 1980s, with plenty of roomfor improvement (but also a puzzling lack ofapplication so far, especially outside theUSA). Around 280 schemes are thought tobe in operation at present, it states,producing an additional 1.3mn bpd of oil.

So far, steam-assisted gravity drainagehas been frequently chosen locally; thisprocess’s share of output is falling, but thelarge Wafra project planned for the neutralzone between Kuwait and the KSA couldreverse this trend.Use of chemical EOR employing water-

soluble polymers and/or surfactants,including alkaline surfactant polymers,remains minimal, but Shell is planning a localASP pilot project in association with PDO.“Interest in CO2 EOR is growing globally,

although no full-scale project hasmaterialised yet outside North America,” theIEA report says. “Of particular significance isthe interest in using such technology shownby Saudi Arabia and the UAE, as a 10 percent increase in recovery rates in fields inthese two countries would represent a largeamount of oil.”

Huge potentialThe potential for EOR is very large indeed,with Shell estimating that EOR currentlyaccounts for four per cent of global oilproduction. “Available information on costs,

benefits and drawbacks suggests thatdeployment is profitable at current oil prices,”says the IEA.“So why is the industry preferring to

invest in light tight oil (LTO) rather thanEOR? The answer lies in the risks, returnsand staffing intensity.”EOR is usually associated with moderate

capital expenditure, but much higheroperating costs (materials and the injectionprocess itself). The time taken to seepositive returns – years in some cases – isanother key factor. So, compared with LTO,EOR is more attractive for investors lookingfor longer-term returns, such as national oilcompanies.The IEA report suggests CO2 EOR could

be particularly attractive. However, keyconstraints are availability of skilled staff andthe time taken for projects to be evaluatedand then yield an acceptable return.In conclusion, the IEA’s report maintains

that “One of the determining factors will bedevelopments in OPEC Middle Eastcountries, where interest in maximisingrecovery is growing; a pilot project forsteam-based EOR, using solar energy togenerate the steam, has been built in Oman,and similar projects are planned in the UAE.”

Leading roleProminent in the development and applicationof the technologies outlined above are the oiland gas service companies, which now play avital role both in assisting NOCs and enablingnew small-scale operators to successfully takeover control of supposedly “exhausted” wells.Also playing a leading role are the IOCs, likeShell, whose EOR document provides anexcellent summary of the current state ofplay, and emphasises the central role that its

partner PDO takes in investigating varioustechnologies in Oman.“Advances in oilfield technology are

leading to step changes in oil recovery,” itsbrochure says. R&D tasks undertaken under an EOR

Strategic Alliance with PDO at ShellTechnology Oman include solar-generatedsteam injection in the Qarn Alam and Amalfields, polymer injection at Marmul andmiscible gas injection at the Harweelcluster.At Marmul, for example, a field which

came on stream more than a quarter of acentury ago, only 15 per cent of the veryviscous oil has been recovered. A water-flooding scheme was installed, but this wasinsufficient. So the operator switched topolymer flooding: treating the water toremove impurities; mixing it with anadvanced polyacrylamide compound; andinjecting this into the well under very highpressure. The aim is to increase the recoveryfactor to more than 25 per cent – that wouldbe an extra 8,000 bpd. “Following this success,” the company

says, “PDO intends to expand operations atMarmul, creating one of the largest polymerflooding facilities in the world.”Shell emphasises that the optimum

recovery technique always requires “deepunderstanding of reservoir behaviour andoilfield economics”. It also stresses the needfor integration of techniques at all levels,from as early on in the well developmentprocess as possible.

1 www.worldenergyoutlook.org2 http://s05.static-shell.com/content/dam/shell/static/future-energy/downloads/eor/eor-brochure-2012.pdf

Shell is playing a leading role in the development of EOR technologies (Photo: Shell)

One of thedetermining factors will bedevelopments in OPECMiddle East countries”

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MORE THAN 80 per cent of the day-to-day cost ofoperating a modern compressor – whether reciprocatingor rotary-screw type, electric motor or diesel driven,conventional or oil-free, and single- or multi-stage – can

go into paying for the fuel or power used. Huge operating-cost savings can be made if a reasonable attempt

is made to recover most of that energy, with some manufacturersclaiming that more than 90 per cent is possible. In general, the larger the system in use, the more sense it makes

to recover all that wasted heat. The savings are particularly apparentwith electric motor-driven rotary screw compressors, the sort thatare widely used by local industries, as well as within the onshore andoffshore oil and gas sectors.The principal means of achieving real savings like these in North

Africa and the Gulf is by retrieving the waste heat produced andusing this in some kind of industrial or fluid-heating process. Wherethis is not feasible, however, major savings can be made if acompressor is chosen in which the casing employed optimises thepattern of air flow by some form of ducting and overall thermalmanagement, allowing cooler intake air to be used and avoiding thedischarge of excessive heat to the atmosphere. This requires a reallyeffective cooling system to be incorporated, usually one which useswater as the cooling- and heat-transfer medium.An exceptionally efficient motor and direct drive mechanism can

help achieve cost and energy savings too; so can an efficientintegrated dryer installed at the output end. A top-grade automaticmonitoring and control system adds efficiency, especially ifincorporated within a master management system for the sort ofmulti-compressor set-up often found in an electrically-poweredindustrial system.The problem of heat recovery is usually more complex and less

cost effective in the case of premium compressors that delivervirtually oil-free air for special applications such as food,pharmaceuticals and other high-end industrial processing. This is

because they usually operate at substantially higher internaltemperatures which produce much hotter air at the outlet end.Raising the temperature of process water is the most obvious

application for heat recovered in hot and arid territories, while spaceheating is widely used in seasonally colder countries. n

The next issue of Oil Review Middle East will feature a comprehensivereport from the first in our Round Table series, where we will bringtogether representatives from leading compressor manufacturers todiscuss the logistic chain, operational and safety issues relating todevelopments within the Middle East’s oil and gas sector for thecompressors industry.

An efficient motor and direct drive mechanism could help oil and gasoperators using compressor technology to achieve cost and energy savings(Photo: Doosan)

A look at how oil and gas companies can cut the operationalcosts of compressors by utilising common sense solutions

Cutting the operational

costs of compressors

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SONARDYNE HAS BEEN selected toreceive the Queen’s Award forenterprise by the Lord-Lieutenant ofHampshire in the UK.Dame Mary Fagan presented the awardin the innovation category forSonardyne’s Sixth Generation (6G)product platform at the company’s headoffice and manufacturing facilities inYateley, UK. The Lord-Lieutenant was offered a tourof Sonardyne’s campus, which is setacross three buildings on BlackbusheBusiness Park, including the company’s engineering, production and machine shop facilities. Based in the UK, with regional offices in Aberdeen, Brazil, Houston, Plymouth and Singapore,Sonardyne specialises in the design and manufacture of underwater acoustic positioning, inertialnavigation, wireless communications and sonar imaging technology. “We are honoured to welcome the Lord-Lieutenant of Hampshire, Dame Mary Fagan, to ourHampshire headquarters for the presentation of The Queen’s Award,” stated John Ramsden,Sonardyne managing director. “This is the third occasion in 20 years she has visited us to present us with a Queen’s Award and we’reproud to show her how the company has progressed and grown from the small rented premises weoccupied in 1994 to the prestigious multi-building manufacturing and production facility it is today,”added Ramsden. The Queen’s Award is granted by HM Queen Elizabeth II, on advice of the UK Prime Minister, and is thehighest award a UK business can receive.

The Lord-Lieutenant of Hampshire presents Sonardynewith The Queen’s Award

Sonardyne receives Queen’s Award for 6G product

THIS YEAR, THE Belden Industrial EthernetInfrastructure Design Seminar was held inHouston featuring a number of seminars focusingon applications for the oil and gas sector.Among the sessions that took place during the

event, Scott Howard looked at the primary goalsof cyber security measures in industrial networks:to enhance safety, to reduce downtime and toimprove productivity. The goals of cyber security are the same as the

core goals of most manufacturing teams, Beldennoted. Over the past few years, there have beenmany high-profile, advanced malware threats thathave proved to be a threat to the energy sector,such as Stuxnet, Flame, Shamoon. While these areimportant threats that need to be considered in oiland gas industry risk assessments, they accountfor a low number of overall threat sources.Industrial networks can be affected by internal

incidents because many PCs on the network run24 hours per day, seven days a week, and do nothave antivirus protection. As well as this, thereare many ways for malware to affect controlnetworks, such as USB keys, maintenancesystems and the laptops of visitors. Controllersdesigned for real-time I/O, and not robust networkcommunications, may not react well to malformedmessages or high levels of traffic. The best way to deal with this issue is by using

Defense in Depth, which is essentially wherethere are many layers and types of security inplace. The guidelines which will enable this arethe ISA/IEC 62443, previously ISA99, standardswhich recommend outlining “zones” withinnetworks and enabling the zones to communicateonly through secure “conduits”. Using thisprocess will mean, only the minimum necessarynetwork traffic passes between zones andunusual traffic will set off alarms and is blocked.Belden’s product line supports security at

many levels of communication, including at thephysical level with high-reliability cables and atthe data level with switches that have securityfeatures enabled.

Belden highlights oiland gas cyber threats

COMPUTIT HAS BEEN awarded a US$3.1mn R&D contract from authorities in Norway, through theResearch Council of Norway, Statoil, Total, ENI, ConocoPhillips and Gassco, to develop an advancedfire-simulation technology for the oil and gas industry.Based on industrial fire-simulation tool KAMELEON FIREEX KFX, the new technology will aim to

contribute to an enhanced understanding of fires, fire safety and the prevention of major accidentswithin the industry. KFX is the result of R&D activities on turbulence and turbulent reacting flows carried out since 1969.

The fire-simulation and analysis tools today covers the simulation of conventional jet and pool fires,complex multiphase spray fires with rainout, and well-ventilated and under-ventilated fires incongested geometries. It also covers LNG leaks with pool spreading, gas dispersion and LNG fires,water-based fire migration by deluge, monitors, mist and water curtains in complex systems,optimisation of passive fire-protection, flare analysis and general gas dispersion and smoke analysis.

ComputIT awarded R&D contract to developfire-simulation technology

Technology

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EZTEK, KNOWN FOR its TallyBook data loggersand TalkBack intercom systems, recentlyprovided pipeline engineering specialists STATSGroup with a radio data link system.

The project, which required a quickturnaround time, has led STATS to work with

Eztek again in developing and manufacturing anoise survey unit. Eztek has now won a contractwith STATS to build additional noise survey units,as well as subsea communication systems.

STATS uses noise survey equipment as partof its quality assurance process, in order to

reduce the likelihood of encountering technicaldifficulties at remote locations, and in this caserequired a lighter and smaller unit.

In order to improve efficiency of operationsEztek was provided with a design specification, witha view to creating more variations in the future.

STATS electronics engineer Matthew Grantexplained, “Eztek worked with us to rapidly ‘flesh-out’ a working design into a finished product.

“We have been happy with the build qualityand professional finish to the items, and alsowith the level of communication, planning andflexibility. They have been a reliable andvaluable partner in realising designs to meet thetechnical requirements of a challenging andexpanding market.”

Eztek general manager Robin Huntercommented, “Our clients know that we'll listen towhat they need and that we offer flexibility and awealth of expertise. Sometimes this meansconfiguring a TallyBook to suit different types ofsensors and sometimes it means developing acompletely new innovative design.”

Eztek’s products are used by oil and gascompanies whose projects are diverse, wheretime requirements are often tight and conditionsare hazardous.

Eztek provides customisable range of electronic instrumentation to STATS

w th w su m ch su th in un

H 20 ap

ap

Eztek’s products are often used by oil and gascompanies whose projects are located inhazardous conditions

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THE MIDD LE EAST energy industry isincreasingly adopting digital andremote technologies in the runningof its facilities, both in upstream and

downstream, which intends to ensure bothboosted production and maximum business.By and large, companies in the region

continue to utilise new and advancedtechnology to its full effect. As Cisco UAEgeneral manager Rabih Dabboussi told OilReview, benefitting from these technicaladvancements allows businesses to connectglobal operations, drive efficiency, automatedangerous tasks and manage complexsupply chains. The benefits, unfortunately, do not come

without risks. In fact, in June 2014 Ciscoannounced that the global energy sectorfeatured in the top five industries most atrisk from malware. According to the 2014Cisco Annual Security Report, the energysector faces a malware encounter rate ofmore than 400 per cent, which is 300 percent higher at risk than the median industry.Dabboussi said, “The Middle East’s

energy sector is rapidly adopting smartdevices and cloud computing to enhancebusiness, but this is also creating a largerlandscape for cyber security threats.Malware can cripple an energy company’sIT infrastructure and halt businessoperations, and potentially disrupt theworld’s energy supplies.”As a region that boasts a high density of

oilfields, increasing upstream anddownstream activity and, as such, is rapidlyadopting digital solutions, the Middle East isparticularly susceptible to cyber attacks andmalware. So, as the industry grows to relyincreasingly on the advanced, remotetechnology, it begs the question as to how

significant the threat posed to the regionaloil and gas producers truly is. Globally, the energy sector has and

continues to experience major cyber attacks.A prominent example in the Middle East,which illustrates the reach and force ofcertain malicious software, is the 2012 cyberattack on Saudi Aramco. The Saudi Arabianoil giant was forced to halt operations of itsmain internal computer networks after avirus infected approximately 30,000 of itsworkstations. While Saudi Aramco claimedthat exploration and production were notaffected, as it was operated on separate andisolated systems, the attack did mean thecompany had to cut off its electronicsystems from the outside world in order toprevent further attacks.

Therein lies the key danger anddifficulties for those companies that comeunder attack. Wherever the origins andintentions of the hack, it could be arguedthat it is not the cyber attack itself thatcauses the real problem, but rather themillions of dollars in damage that abusiness can accumulate through bothtemporarily shutting down operations andcombating the attack. Speaking to Oil Review, Sebastian

Madden, group cyber and technologydirector at the UK risk management andsecurity firm Protection Group International(PGI), said, “The cyber attacks on Qatar Gasand Saudi Aramco really shook the oil andgas industry, as well as governments in theMiddle East. They’ve registered that thereare real vulnerabilities in the industry andpeople out there who are prepared toexploit them in order to damage nationaleconomies by sabotaging systems anddisrupting production.”It is worth noting that in the fuel-

producing sector, disruption to businessdoes not just affect the company itself andthe relevant service companies. It can have

In continuing to adopt cloud computing to boost business, the Middle East energy sector creates alarger landscape for cyber security threats (Photo: Ian Southwell)

As the Middle East oil andgas industry continues toincorporate digital solutionsand smart devices in order tomaximise on productivity,how far does this also feedthe risk of cyber attacks?

Hacking into the region’s

cyber security threat

The energy sectorfaces a malware encounterrate of more than 400 percent”

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a considerable knock-on effect, influencingnational economies, the economies of thecountries if helps fuel, and even national andinternational fuel prices.As a product of such high commercial

value and global demand, it is important toconsider that the level and complexity ofmalware used to target the oil and gascompanies will be considerably higher. Thehigher the value of the asset, as Maddenexplained, the greater the malware used totarget it. Ultimately, this means thatcompanies in the industry must not only beprepared for hackers, but adapted to dealwith a high-end category of cyber attacks.“As economically strategic assets, oil and

gas companies are subject to the interest ofstate actors with hostile intent,” Maddenstated. “This means they have to deal withcyber reconnaissance and attacks at a levelof sophistication much higher than thatfaced by other industries. Consequently,they require higher levels of protection.”As the push for fuel production in the

Middle East and North Africa grows, so toodoes the evolution of technology and thedevelopment of companies’ infrastructures.Oil and gas producers are relying increasinglyon controlling operations remotely andmonitoring data from across the globe.

In fact, according to figures by Cisco,smart devices in the Middle East and Africawill grow from 133mn in 2013 to 598mn in2018. The region is also set to post theworld’s strongest cloud traffic growth,reaching 157 exabytes by 2017, upsignificantly from 16 exabytes in 2012.

Dabboussi explained, “Great mobilitymeans that mobile devices can get moreeasily infected and can lead to malwarespreading faster. The introduction of mobilityis a concern for energy companies as thereare a wide range of devices used withpipelines, oilfields and oil platforms. Securingand managing these devices is critical.”It is safe to say, unfortunately, that

attacks from malware, or at least the threatof such attacks, has become a common andconsistent feature in the energy sectorbusiness. “All organisations across the Middle East

– especially in the energy, oil, and gas sector– should assume they have been hacked, andthat it is no longer if they will be targeted bycyber-attacks, but rather when and for howlong. Adversaries are coming up with newmethods for embedding their malware innetworks, remaining undetected for longerperiods and stealing data or disrupting criticalsystems,” warned Dabbouss i.

Fortunately it appears steps are being

taken to tackle the growing threat, butperhaps it has reached a point wherebyinfrastructure development and cybersecurity should be considered hand-in-hand. According to global consulting firm Frost

& Sullivan, the oil and gas infrastructuremarket is expected to grow worldwide toUS$24.68bn by 2021, up from US$19.63bnin 2013, comprising of a range of solutionsintended to defend critical assets across theindustry. Furthermore, the Middle East hasbeen highlighted as an area requiring thehighest levels of security across allsegments and, alongside South America, infuture will experience a significant growth insecurity spending.Dubboussi concluded, “Companies must

realise that security is no longer theresponsibility of IT professionals alone.Mobile operators, device manufacturers,software developers and businesses all haveto take up a post in this war and be on highalert for potential cyber spill over, especiallywith mobile malware.” n

Rabih Dabboussi, Cisco UAE general manager

All organisationsacross the Middle Eastshould assume they havebeen hacked”

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EVEN AS WE currently see a more stabilised and favourable pricein the energy sector, energy efficiency cannot be overlooked asa successful way of gaining a competitive advantage in the oiland gas industry. Energy usage can often be optimised through

simple improvements that are not necessarily expensive, yet operators,engineers and other users do not typically have the information theyneed to give them the confidence to simultaneously push against themany system constraints that are necessary for optimal plantoperations. They typically avoid the challenge and instead frequentlymake a conscious or unconscious decision to back off to a moreconservative position, which involves running the plant safely, but at aconsiderably lower level of efficiency.

Providing users with process dataThe first step in improving energy efficiency is to provide users withdata that they can use to make the right decisions. This enablesusers to look at the ‘actual’ versus the ‘predicted’ energy use andadjust the predicted energy usage according to the operatingconditions, as opposed to leaving it as a static target. As the actualenergy consumption deviates from target these changes can becalculated and quantified in terms of their energy impact, meaningoperators can easily focus on the most important items. This data will also show the greenhouse gas (GHG) emissions

associated with the unit and help provide answers to questions, suchas: how much energy consumption and GHG emissions should oneexpect for a particular crude feed? If production rates fall by a certainamount how much should energy consumption fall? How are GHGemissions affected by changes in operating conditions? How canenergy consumption and GHG emissions be reduced by changingoperating parameters?

A report answering such questions can be produced bycalculating actual energy use, per unit and equipment item, fromprocess data and calculating key energy indicators (KEIs) to provideguidance to operators. In this case, energy use can be calculated bydetermining steam per barrel of production, million British thermalunits (MBTU) fuel per barrel of production and Megawatt power perbarrel of production. Energy consumption may also be calculated ona per rate or per hour basis. KEIs provide operational targets thathelp identify where energy is being wasted.Energy consumption may also be calculated by a simulation

model, estimating energy consumption by regressing historical datathat covers a wide range of operating conditions. In a distillationcolumn, for example, the expected steam consumption may beestimated as a function of the feed rate, the feed composition andperhaps the operating mode or product specification targets. Thealternative approach for simulating the process is useful inapplications where there is only limited historical data or where allthe data is at one operating point. The simulation model could be putonline with live process data connected directly to the inputs of themodel, which can often provide a reasonable estimate of energyconsumption while avoiding the effort required to develop,implement and support a complex model.

Measuring performance against targetsTo monitor energy performance against targets, actual energy use,(per unit or equipment), can be compared to energy use predicted bythe model; an adjustable threshold that identifies violations will alertthe user as a particular variable moves away from the target. Theeconomic and environmental impact of these deviations can becalculated and tracked over time to help prioritise areas on which tofocus for potential improvements and can also perform thecalculations required for reporting on GHG emissions. Where deviations from target are identified, the system operator

can use the KEIs to determine and record the reasons for thesedeviations. For example, high fuel consumption around a heatermight be due to high air or high stack temperature or excessive heatinput to a downstream column. By developing a set of reason codesand logging them over time, operators are able to build up a library ofcommon causes for deviations and consistent use of reason codeshelps predict the likely cause of future deviations.Measurements that are not currently being taken are often

needed in order to provide the necessary granularity to identifywhere opportunities for improvement may exist. This could includetotal power to an area of the plant that may be measurable at thesubstation, and by further breaking down these measurements, byunit or major item of equipment, can help pinpoint problems andultimately reduce energy consumption. A particularly cost-effectiveapproach to adding these instruments is to use wireless transmitters,By providing operators with data on the ‘actual’ versus the ‘predicted’

energy use and adjust the predicted usage accordingly

Brendan P Sheehan from Honeywell Process Solutions, USA, and Xin Zhu from UOP, a Honeywellcompany, discuss how to utilise data as a way of achieving energy efficient operations and,ultimately, capital savings.

Energy efficiency through

optimal operations

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which eliminate the expense of running wiring between theinstrument and the control room, and can provide a simple-to-manage, easy-to-operate solution that integrates with the existingdistributed control system (DCS). For a small installation, a multinodereceiver with wireless transmitters is sufficient, but for a largerinstallation, a mesh network that provides multiple redundant pathsenables better reliability and can support a variety of protocols andapplications simultaneously. This data can then be consolidated into an energy dashboard that

provides users with a roadmap of how to minimise energyconsumption and emissions. The dashboard clearly identifies whichunit or area is deviating from the target, the economic andenvironmental impacts, and the most likely causes of the problem.Users can quickly pull up a report of the top-10 worst energyproblems that can serve as a work-list for the team, and shows howmuch energy should increase as feed rates go up and down, or feedtype changes in order to account for production changes. Planningand energy consumption monitoring should be based on the samemodel so that they are aligned with each other. Consistent execution of operating procedures can also improve

energy efficiency, with examples including start-up and shut-down,moving to a safe operating position when an abnormal situationoccurs, cyclic planned activities, including regeneration, catalystreload, and pump changeovers. Execution can be made moreconsistent by providing the operator with easy access to the detailsof the procedure. The operator, for example, can click on theshutdown procedure button on his operator screen and pull up thedetails for shutting down the unit in question.

Developing an advanced process control (APC)strategyMajor improvements in energy efficiency and emissions reductioncan be achieved by providing operators with tools to help themmanually optimise operating conditions. Even greater improvementscan usually be obtained by incorporating best practices into an onlinepredictive control strategy that automatically optimises operatingconditions. Multivariate optimisation applications can be used tomaximise throughput, maximise yield and minimise energyconsumption and emissions just by changing cost factors in theobjective function. This environment makes it possible to incorporateenergy strategies into overall operating parameters so thatminimising energy is not done at the expense of other importantobjectives, such as maintaining yields of the most valuable products.

A common strategy for any unit that has a significant heat load isto maximise feed preheat to reduce fuel consumption in the processheater. An effective optimisation strategy for multi-path preheattrains, typically found in crude units, is to estimate the heat transfercoefficients across the exchangers in each path and use them tocalculate the potential increase in duty that can be achieved in eitherpath from an increase in feed flow through each path. Thesecoefficients can then be incremented until the duty gain is the samein either path of the preheat train. This kind of simulation can beincorporated into a multivariable predictive control strategy as acontrolled variable (CV), a strategy that can reduce fuel consumptionor, if the heat is the bottleneck, increase throughput. Column control can also be used to improve energy efficiency.

The advanced control strategy should aim to control yield and qualityof the product streams, the feed temperature, reflux ratio and thesteam/feed ratio. Where distillation endpoints are an objective, theside stripper steam can be used for maintaining five per centdistillation point close to the specification. A common strategy toimprove yields and reduce energy consumption and GHG emissionsis to reduce column pressure, which, in turn, improves separation ofkey components. It is also important, however, to avoid flooding inthe column by monitoring pressure across the critical sections.

Optimising the utility plantOptimisation and control of the utilities plant is an important part ofany energy management strategy. The boilers should be controlledwith the objective of providing the process with adequate steam andpower, while minimising fuel consumption in boilers. Multiple boilerswill vary in performance so it is important to be sure that they arebalanced by boiler efficiency rather than steam production. Boilercost curves should be used to distribute the total heat requirement,whereas the incremental load should be distributed to the boiler withthe lowest incremental cost. The implementation of operational solutions for improving energy

efficiency, which tightly link demand from the process to supply fromthe utility plant, can typically improve energy efficiency by two tofour per cent with corresponding CO2 emissions reduction ofapproximately 21,770mn to 43,540mn mt per year for a typical100,000 bpd refinery. Many of the solutions discussed here can beimplemented quickly and without large capital costs, while stillgenerating immediate savings that can help pay for long-term energyefficiency strategies that require more substantial capitalinvestments.

Optimisation and control of the utilitiesplant is an important part of any energymanagement strategy”

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THE USE OF multiphase pumps inboth onshore and offshoreapplications has been experiencingan increasing acceptance among oil

and gas producers thanks to thetechnology’s role in keeping marginal anddeclining oil fields producing, as well asacting to reduce flaring. An offshore installations in the UAE

commissioned the use of twin screwmultiphase pumps on a wellhead platform.The multiphase pump installation on thefield, which began production in the mid-1980s, was designed to sustain productionat its current level. The implementation ofshort-term development projects on thefield consisted of the installation ofelectrical submersible pumps (ESP) and amultiphase pump (MPP) at selected wellhead platforms (WHP).The majority of multiphase pumps in

operation today are based on twin screwpump technology. These self-priming pumpsare hydraulically balanced and of a doublevolute design. The possibility of speedvariation by means of variable frequencydrives offers a wide operating envelope.Twin screw multiphase pumps are

available for flow rates up to 5,000 m3/h(755,300 bpd) and differential pressures upto 150 bar (2,175 psi). The pumps aredesigned to handle high gas volumefractions (GVF) and to tolerate gas slugswith 100 per cent GVF.

Cost-effective technologyEngineers working on the UAE projectproposed multiphase pumps as a cost-effective technology to transport multiphasefluid via a single pipeline, instead of separatingoil, water and gas at gathering stations andexporting oil and gas through separatepipelines to central production facilities.Multiphase pumps are essentially a means ofadding energy to the unprocessed wellstream, which enables liquid/gas mixtures tobe transported over longer distances withoutthe need for prior phase separation.

Pumping the multiphase fluid directly tothe central processing facility eliminates therequirement for separators, heater treaters,pumps, compressors and storage tanks atthe in-field gathering stations and offers arange of advantages, including the reductionof installation space requirements due toless equipment. It also offers a reduction ofoperation and maintenance interfaces due toless equipment, and a reduction ofmanpower, as MPP installations prove to besuitable for remote control and require nopermanent manning.Further arguments for the installation of

multiphase pump technology include the de-bottlenecking of existing flow lines bymaximising the throughput, as well as theintegration of low and medium pressurewells into a high-pressuremanifold/separator. Additional benefits include the integration

of marginal fields or remote tie-backs toexisting facilities, segregated productionschemes of medium and low pressure wellsby using dedicated multiphase pumps, andproduction restoration of dead wells byreduction of the well back pressure.The technology offers the maximum

utilisation of existing production facilities ona declining field by adding production fromremote wells, as well as the elimination offlaring and gas recovery by boosting theunprocessed well stream to centralseparation facility and the reduction ofunstable flow regimes in multiphasepipelines to higher superficial velocities. Multiphase pumps are designed to

operate with variable suction pressures. Thisis a major advantage over conventionalseparation systems featuring compressorswhich are designed to operate solely at apre-determined fixed inlet pressure level.

Cutaway of a high pressure multiphase pump (Image: Leistritz Pumpen GmbH)

We look at the successful implementation by multiphase pumps and systems specialist LeistritzPumpen GmbH of multiphase pumps on a project in the UAE.

Utilising offshore

multiphase pumps

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Wellhead platform installationFor the installation of the multiphase pumpon the UAE project the operators choseproduction facilities on a wellhead platformwith six wells. There were three lowpressure wells intermittently flowing or notflowing at all due to the high pressure fromthe remaining wells into the commonmanifold. It was therefore consideredtechnically and commercially feasible toinstall a multiphase pump at the wellheadplatform connecting the low pressure wells.The multiphase pump system which is

now installed on the wellhead platformconsists of the following components:6 The pump skid with the multiphasepump, the electric motor, the lube andseal oil system, an automatic filter, the liq-uid management system, the on-skid pip-ing with motor operated valves and theon-skid instrumentation.

6 The air conditioned and pressurised con-trol container for the VFD, PLC etc.

6 The transformer. 6 The low-voltage distribution board (LVDB).

The space available for the installation ofthe multiphase pump system on thewellhead platform represented a majorchallenge. Due to the small surface area forthe equipment, the skid had to be designedas compact as possible. Since there were noclose limitations in the equipment height itwas possible to install pump and drive abovethe liquid management system in order toreduce the width of the skid. Anotherchallenge was the small space provided forthe transformer. However, finally amanufacturer was found that could meetboth the project specification and therequired footprint.

Hydrogen sulphide, chloride Due to the H2S concentration and the highchloride content of the produced water, allwetted parts of the pump and the furtherskid components are made from duplex

stainless steel, meeting the requirements ofNACE MR0175. The casing insert (liner) iswear-resistant coated with Stellite®. Thepump shafts are also sealed by doubleacting, balanced mechanical seals in back-to-back arrangement. In case of slug flow, the liquid

management system provides sufficientliquid seal to the area between screw tipsand casing insert to guarantee uninterruptedproduction. Pump bearings, timing gears andthe mechanical seals are lubricated andcooled by a combined lube and seal oilsystem which is also accommodated on thepump skid. The automatic filter protects thepump internals from wear and damages bysolids travelling with the multiphase fluidfrom the wells.Before shipment to the UAE, the pump

skid and all accessories were extensivelytested on the multiphase pump test bed ofthe pump and system manufacturer and thepremises of the selected sub-vendors. All

tests have been witnessed by therepresentatives of the end customer.The multiphase pump skid was

successfully commissioned during the Q32008. A new production manifold wasinstalled to separate the flow between thehigh pressure and the low pressure flowingwells. The low pressure wells are connectedto the suction line of the multiphase pump,resulting in a reduction in back pressure forthe weak wells and, hence, a considerableincrease in production.

Project completedWhen the project started a couple of yearsafter the turn of the century, there waslimited experience with multiphase pumpingtechnology in the Middle East. Theapplication presented serious challenges inview of the design for the restricted spaceavailable and the selection of theconstruction materials.After almost four years of operation, the

installation can be considered a success bythe operator, manufacturer and supplier ofthe Multiphase Pump System.

P & ID of conventional and multiphaseconcepts (Image: Leistritz Pumpen GmbH)

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Multiphase Pump Skid on the Multiphase PumpTest Bed (Photo: Leistritz Pumpen GmbH)

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EVERY OIL COMPANY has goalsrelated to increasing profits,decreasing costs and improvingsafety. And every oil company

executive knows that one definition ofinsanity is to keep repeating the same setof actions and to expect a differentoutcome. That is why oil companies aroundthe world, including those in the MiddleEast, are harnessing new technologies andwork practices in the form of the IntelligentField to help them achieve their goals.Although the Intelligent Field is often

presented in terms of its newtechnologies, it is important to rememberthat these are only a part of the story. Theyboth enable and require operators to workin new and different ways in order to effectthe step-change in efficiency that theIntelligent Field promises. Changes of thismagnitude are, by necessity, journeys andit is the role of management to keep itspeople moving along these journeys andcontinue to drive change. The Intelligent Field changes the way

that production companies work. Multi-disciplinary teams identify and attackchallenges in parallel, with real-time data onwhich to base their decisions. The locationof the team is the best place to put it,whether that is adjacent to the process ornot. And this requires us to be mindful ofhow we assemble these teams – how wetake advantage of both the experience ofolder personnel and the tech-savvy, data-based approach of younger team membersto ensure that the team delivers theoptimal outcome.The result of all of these changes in the

way that we work is that we can plan,proactively, how to optimise a field’soperations, rather than reacting to situationsin a way that minimises their impact.The Intelligent Field gives visibility to

critical operating data in time to make adifference to the business – it is a technicalsolution to resolve a business issue. Itallows users and equipment in remotelocations to play a part in optimising the

whole of the value chain and to measurethe effect of the decisions that areimplemented. The Intelligent Field isimplemented in phases, over time, with amethodology that touches on technology,software, organisation design and businessprocess design.

Essential elementsSome observers have confused theimplementation of a consolidated controlroom with the building of an IntelligentField. The Intelligent Field will likely includean Integrated Operations Command Centre,

but it will be built on an architecture thatreflects the ISA 95 or Purdue Model.Reliable devices are needed to measureprocess parameters, and these need to beconnected to control and safety systemswith transmitters and infrastructure thatallow the communication of process anddevice diagnostics. Smart control systems keep process

values close to set points and alarm whenthere is a deviation, allowing people toconcentrate on exceptions, rather thanlogging and analysing data. Higher-levelapplications for production planning andoptimisation take data from a variety ofsources and put it into context to allowhumans to make intelligent decisions –there is no Intelligent Field without humansin the loop, and there is no Intelligent Fieldwithout quality data. Links to the business system, to

monetise the decisions that are made, isthe final element that makes the IntelligentField complete. Essentially this allowsteams to make decisions that maximise theprofit per day, rather than the productionper day, and to understand the impact oftheir decisions in the short, medium andlonger term.One of the keys to implementing the

Intelligent Field is the implementation ofrole-based Key Performance Indicators thatare aligned with, and cascaded from, theorganisation’s goals. These should be visibleand updated by the system in real-time toallow teams at every level to create actionplans informed by current data.The Intelligent Field delivers benefits to

all parties – operators, partners andservice companies – who use improveddata and knowledge management,enhanced analytical tools, real-timesystems and more efficient businessprocesses to work together moreeffectively and in better alignment.

Andrew Dennant is oil and gas director forthe Middle East & Africa at EmersonProcess Management

Andrew Dennant, oil and gas director for theMiddle East & Africa, Emerson ProcessManagement

Deploying the new technologies and work practices relating to the Intelligent Fieldcan help oil companies to achieve their goals, says Andrew Dennant.

Harnessing the benefits of the

Intelligent Field

The Intelligent Fieldchanges the way thatproduction companies work”

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IN MARINE AND shipping industry where steelcorrosion is a constant challenge, Cygnusultrasonic thickness gauges play a major rolein providing a solution to this challenge.

The Cygnus Multiple-Echo technique canmeasure the remaining metal thickness throughprotective coatings. However, this measuringtechnique can sometimes be difficult to achievewhen measuring on extreme front face andback wall corrosion and round bars such asanchor chain links. This is why Cygnus hasintroduced Single-Echo, using twin-crystalprobes into their product range providing userswith the flexibility to alternate between the twowith Cygnus DIVE. Cygnus DIVE is a wrist-mountable underwater thickness gauge. TheDIVE has a number of key new features thatinclude twin-crystal probe option to assist intaking measurements on uncoated material e.g.anchor chain links, extremely corroded steeland plastic outfall and dredge pipes;Measurement Stability Indicator (MSI) thatshows when a reading in single-echo mode isstable by turning the thickness reading fromred to yellow; a super bright AMOLED display,easily viewable by both the diver and hiscamera; and updated topside and reportingsoftware allowing measurements and A-Scansto be displayed on the surface and datalogged topside.

The ability of the diver to wear Cygnus DIVEon his arm or wrist is a big advantage, saidGraham Haines, sales director at Cygnus.

Ultrasound can also be used for checkingthe weather tightness of hatch cover seals onbulk carriers. Cygnus Hatch Sure ultrasonichatch cover leak detection system comprises apowerful ultrasonic transmitter with 19x40KHzelements is placed within the ships hold. Thisfills the hold with ultrasound and any thatescapes (through gaps in damaged areas ofthe seals) can be detected by the operator ondeck using a sensitive receiver/listeningdevice, locating areas that might leak in heavyseas or rain.

AN ACTEON SUBSIDIARY and marine electronicequipment sales and rentals firm Seatronics haspartnered with Teledyne RD Instruments to sellits marine measurement and navigation productsin the Middle East and South America.

Seatronics will sell Teledyne RD Instruments’Acoustic Doppler Current Profilers (ADCPs)exclusively in Saudi Arabia, UAE, Qatar, Omanand Bahrain; and represent the company forDoppler Velocity Logs (DVLs) non-exclusively inQatar, Saudi Arabia, Oman and Bahrain.

Harry Maxfield, vice-president, sales andmarketing at Teledyne RD Instruments, said, “Wehope this enhanced working relationship willenable us to build upon Seatronics’ presenceand reputation in regions that can be challengingfor us to address due to time zone differences.”

Adil Ali, international product sales manager

at Seatronics, added that this partnership willenable their existing and potential clients to gaina higher level of pre-purchase technical adviceand post-sale support in the regions theagreement covered.

HONEYWELL PROCESS SOLUTIONS haslaunched Digital Suites for Oil and Gas, a newset of software and comprehensive services,which can help energy producers boostproduction performance by three to five percent while improving operational safety.Digital Suites for Oil and Gas is a fully

integrated offering, but each suite is alsoavailable separately, letting customersaddress the specific issues they face. Thesix suites are operational data, processsafety, production surveillance, equipmenteffectiveness, production excellence andoperational performance.The new offerings combine Honeywell’s

field-proven technologies with new softwareand implementation methodologies deliveredthrough its new oil and gas center ofexcellence, which was recently establishedto better serve Honeywell’s customers in theupstream oil and gas industry.

Digital Suites for Oil and Gas is said towork seamlessly with Honeywell’s completeline of integrated control and safetysystems, instrumentation, and industrialproducts, and can be easily integrated intoany multi-vendor environment.The production improvements, which

have been validated through customertesting, are driven by a combination of betterproductivity, higher uptime and moreefficient remote operations, and can producea return on investment in as little as sixmonths, according to the company.Ali Raza, vice-president, Honeywell

Process Solutions, said, “Upstream oil andgas producers tell us they have access tomore real-time data than ever, but access tothat data alone is not enough to improveperformance — you also need digital

intelligence to make sense of all the databeing collected. “Digital Suites for Oil and Gas turns data

into digital intelligence that helps operatorsmake critical decisions faster by capturing,managing and analyzing the right productioninformation.”The software can meet the challenges

like safer operations and insightful decisionswith data-driven solutions that are ready fornew operations or integrated into existingproduction environments. Digital Suites forOil and Gas software also helps to ensurethat essential safety procedures perform asdesigned, operators are fully trained, alarmsare managed and enforced, and productionperformance is instantly available to detectand mitigate potential events. Thesesolutions make collaboration through remoteoperations a reality, helping to manage thenumber of local personnel, especially as theupstream industry moves farther offshoreinto higher-risk conditions.

Cygnus offers underwatersolutions to tackle corrosionand leaks

Honeywell’s new software can boost productionperformance by up to five per cent

Seatronics adds Teledyne RD Instruments’ products to itssales portfolio in the Middle East

The software can meet the challenges like saferoperations and insightful decisions with data-driven solutions that are ready for newoperations or integrated into existing productionenvironments

Innovations

Cygnus Hatch Sure Leak Detector

A buoy with Teledyne RD Instrumentsworkhorses long ranger ADCP

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RELIABILITY INOIL WELL CEMENTS

Oil Well Cement (OWC) produced by Oman Cement Company (S.A.O.G) under accurate temperatures is an obvious choice for oil well cementing worldwide and now it is ready to face the challenges of highly specialized arctic and horizontal cementing:

Conforms to the American Petroleum Institute (API) specification – 10A Class-G- (HSR), Class-B- (HSR) and Class-A- (O) grades. Tested and used by worldwide cementing companies Easy to disperse resulting in considerable cost savings First choice of major oilfield companies Exported to GC Countries, Iraq, Yemen, Libya, Sudan, Tanzania, Turkmenistan, Ethiopia, Pakistan, India and Syria.

Oman Cement manufacturing facility operates on world class qualitymanagement system ISO 9001 and environmental management system ISO 14001. Quality control is online and laboratory automation systems consist of online x-ray spectrometers and robotic samplers, linked to process controllers and a raw mill proportioning system.

OCC has an enduring commitment to customer satisfaction, continual improvement and a stronger foundation for tomorrow.

Winner of His Majesty’s Cup for the Best Five Factories in theSultanate of Oman for 10 times.

Oman Cement Company (S.A.O.G) Corporate Office:PO Box 560, Ruwi, PC 112, Sultanate of OmanTel: +968 24437070 Marketing: Ext 145 / 444 Fax: +968 24437799

Email: [email protected]: www.omancement.com

CERTIFIED COCERT NO. IND13.3020/U/Q

CERTIFIED COCERT NO. IND10.7570

API CERTIFIED COLICENSE NO. 10A-0059

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SCHLUMBERGER’S QUANTA GEO service is theindustry’s first micro resistivity imager thatproduces oriented, photorealistic, core-likeimages of the formation in wells drilled with oil-base mud (OBM). Interpretation of the imagesidentifies geological features andalso predictsreservoir trends in 3D with what the companysays is a high degree of certainty.

It is the inaugural member of the new QuantaFamily reservoir characterisation services,which employ new measurement physics todeliver highest accuracy, workflow-readydownhole measurements for direct use inrefining reservoir models.

Launched at the Offshore Northern SeasAnnual Conference and Exhibition in August2014, the physics of the Quanta Geo service’shigh-resolution array of 192 microelectrodesovercomes the electrically resistive barrierimposed by OBM. The unique articulated caliperand independently applied pads enable down-logging at up to 1,097 metres per hour, whichsignificantly reduces rig time while mitigatingoperational risk and delivering data assurance.The service is combinable with most otherSchlumberger wireline openhole tools.

Hinda Gharbi, president of Wireline atSchlumberger, said, “The Quanta Geo serviceprovides photorealistic images that can be usedto condition and constrain reservoir models,enabling our customers to better understandtheir reservoirs and make confident decisions.”

The company said that using theSchlumberger Techlog wellbore softwareplatform, data acquired by the Quanta Geoservice is easily rendered, creating an image of0.24 in resolution that resembles a whole core.Geologists interpret these images in the samemanner that they would perform continuous coredescription, with the added benefit that theseimages cover a longer continuous interval andare precisely oriented. This enables extraction ofkey reservoir parameters such as the structuraldip, or the identification of sand body type,extent and orientation.

The Quanta Geo service has been fieldtested in more than 50 wells in deepwater,unconventional and carbonate environments in avariety of regions.

EMERSON INDUSTRIAL AUTOMATION’sPowerdrive FX four-quadrant drive, incombination with an LSRPM synchronousmagnet-type motor from the company’sDyneo range, has been instrumental in theincreasing numbers of wells using beampumps RRP (reciprocating rod pumps).RRPs have a particular operating cycle

whereby power is actually produced 15 percent of the time and this power had to bedissipated through bulky braking resistors.However, using the patented, compact, four-quadrant, C-Light Powerdrive FX, theseissues are negated.According to the company, numerous

concerns over fixed speed RRPs are drivingdemand for variable speed solutions. Theseinclude pump-off, which will likely occur ifproduction is too high (incorrect pulley-beltratio). Secondly, pulley-belt ratio adjustment isrequired frequently in young and new wells.Other concerns over fixed speed pumpinginclude the limitation of monitoringpossibilities and potential difficulties indetecting fluid pound. Furthermore, too manymotors on the same electric network cancause a lagging power factor, driving the needfor capacitor banks.

In contrast, variable speed technologyallows pumping speed to be adjusted to fieldrequirements, thus avoiding field work andthe interruption of production. Furtheradvantages include the ability to correct theoilfield’s power factor without the need forcapacitor banks, while it also provides softstarting, torque limitation and constantspeed. For instance, there is no need foradditional resistors – the power generated isfed back naturally to the power supply likewith a line contactor in fixed speed. Theharmonics are 25 per cent lower than aconventional six-pulse solution independent of

the load, while a better power factor meansthat Powerdrive FX also offers significantlylower line current.Other advantages of Powerdrive FX

include easy installation either outdoors orindoors, and a rugged design featuringtropicalised boards and a resin-treated linechoke. In addition, Powerdrive FX eliminatesthe requirement for technicians to visit thesite to retrieve well data, set speeds andreset any faults.Full production optimisation will rely upon

pairing a Powerdrive FX with an LSRPMsynchronous magnet-type motor from theDyneo range. Over a cycle, the torque profileof a RRP averages 50 per cent of the nominaltorque of the motor. In comparison with aninduction motor, the higher efficiency ofEmerson’s Dyneo LSRPM over a wide speedand load range will lead to significantlyreduced electricity consumption. Otherbenefits include its advanced design, whichsaves on maintenance through longer bearinglife and reduced lubrication intervals.Furthermore, not only is the LSPRM motorsmaller and lighter than a standard inductionmotor, it is also proven technology that doesnot require servicing any differently.

ENERGY SECTOR PORTABLE machinetool manufacturer Mirage Machines hasexpanded its headquarters in Derby,UK, in response to the rising demand ithas experienced for its pipecutting andflange facing technology.With new office premises measuring

464.5 square metres adjacent to itsexisting engineering headquarters, thesite at Enterprise Way includes full-scale technology engineering,fabrication, maintenance and R&Ddepartments producing machines usedacross the international oil and gas, andpetrochemical industries.Richard Silk, managing director of

Mirage Machines, commented, “Wehave ramped up our manufacturingoperations to meet that demand for ourmachines in exploration and production,maintaining our reputation forproducing technology of the highestquality, with performance and reliabilitythe cornerstones of our business.”Mirage Machines designs and

manufactures technologies forapplications including drilling andtapping, flange facing, hot tapping andline stopping, line boring, milling andgantry milling, orbital milling, and pipeand casing cutting.

Emerson’s variable speed solutions enhance beam pumps in lift process

Mirage Machinesexpands office in UK

Schlumberger launches industry-first photorealisticreservoir geology service

Powerdrive FX four-quadrant drive incombination with an LSRPM synchronousmagnet-type motor

Innovations

The Quanta Geo service provides photorealisticimages that can be used to condition andconstrain reservoir models

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PARADIGM’S LATEST VERSION of itsintegrated suite of well planning anddrilling engineering applications Sysdrill10 has been integrated with Peloton’sWellView corporate database for drillingand well operations, and includes a newjar placement module based ontechnology acquired from CougarDrilling Solutions.The release reportedly offers

significant engineering enhancementsto the product’s existing well planning,torque and drag, hydraulics, casingdesign, cementing and well controlmodules. The new jar placement moduleallows calculation of optimal jarlocations based upon the jar operatingparameters, drilling parameters, and thewell trajectory. The integration withPeloton offers solution for well planning,drilling engineering, daily reporting anddata management throughout the welllifecycle. Drilling engineers can send afully engineered Sysdrill well design toWellView, and during drilling operations,data captured in MasterView can beused in Sysdrill to perform engineeringanalysis to monitor drilling and preventNPT events.

SOSS NOW HAS the largeststeel drum manufacturingfactory in the Middle Eastwith the newest state of theart technology andequipment; on an average itcan manufacture 60 drumsper hour, enabling thecompany to continueservicing its customers inall locations.

SOSS has been inexistence since 1993.Strategically based in Dubai, SOSS began operations in the Middle East and Asia as an independentsupplier of products to the oil and gas industry. The company’s tenacity and focus on quality has ledto its expansion from a small supplier of steel/plastic drums, cans and industrial and constructionchemicals, to a reputable chemical stockiest and supplier for the oil and gas industry, with branchoffices today in India, Iraq and China.

Consistent with its growth, SOSS has added diversity to its product range and upgraded itsfacilities and procedures to comply with the strictest demands from its clients. Today the companycaters to oil and gas, industrial and construction customers with a vast and varied product rangeacross a range of industry segments. It has exclusive signed agreements and contracts with anumber of international manufacturers.

The company’s warehouse facilities in Dubai and Iraq are fully geared to cater to the region of Iraq,Middle East and Africa. The logistic positioning of its warehouses and storage areas in Dubai ensuresthe quick and timely delivery of materials so as to cater to any urgent customer requirements.

Currently SOSS has a small facility for manufacturing caustic solutions, which are mixed andtransported to many locations in the UAE and GCC.

TENDEKA, COMPLETIONS SYSTEMS andservices provider to the upstream oil andgas industry, has launched FracRight, a

complete heel-to-toehydraulic fracturingsystem.

Integrated withTendeka’s real-timeDTS monitoring andQuestTM softwaresuite, the systemenables the collectionand analysis ofstimulation data inunconventionalreservoirs.

According to thecompany, theFracRight system is afully integrated fracsleeve solution forselective multi-zonestimulation in openhole or cased holeapplications. It enables

the installation of multiple sleeves for each stageto be fractured, optimising stimulation efficiencyand production. The sleeves are shifted open bypumping a ball from surface allowing forsubsequent stimulation of the selected stageeither from a single sleeve or a cluster of sleeves.

The FracRight system can be integrated withTendeka’s real-time distributed fibre opticstimulation monitoring service to provide moreeffective evaluation and management of multi-zone completions. The system gathers theinformation required to measure, model andoptimise the stimulation treatment andsubsequent flow back and production profile.

Ken Miller, vice-president of North and SouthAmerica of Tendeka, said, “Our experience andtrack record in the US frac market has led to thedevelopment of the FracRight stimulationmonitoring system, which will enhance fractureperformance and efficiency.

“Capturing the real-time data from theFracRight system allows our clients to verifyisolation integrity, analyse the individualcharacteristics of each production interval andmake critical adjustments in the frac operation.The result — completion operations are optimisedwhile minimising costs and mitigating risk.”

He added that the system can also be used inconjunction with Tendeka’s QuestTM softwaresuite for the analysis and presentation of thestimulation and production data.

Paradigm releases advancedengineering suite

VINGCARD ELSAFE, THE pioneer and worldleader in electronic security solutions, hasproducts installed in more than 42,000properties worldwide, securing in excessof seven million rooms and providingsecurity wherever people sleep away fromhome. The company provides local serviceand support in 170 countries.VingCard electronic locking system

solutions include the latest RFID contact-less electronic locks compatible with themain ISO standards: ISO 14.443A(MIFARE), ISO 14.443B, ISO15.693, NFC(Near Field Communication) / BLE(Bluetooth), and also the most reliablewired or wireless RF-online solutions.VingCard Elsafe has initiated a growing

trend towards minimising locks with ourEssence RFID. Our new Allure takes theminimalistic "invisible lock" concept onestep further. Elsafe provides the only UL-listed (1037) in-room safe series on themarket today in keypad and RFID/RF-online models, like the new SENTINEL IIand Infinity II series range. Orion byVingCard Elsafe provides an intelligentenvironment friendly energy managementsolution that reduces energy cost.

Tendeka’s new hydraulic fracturing system withreal-time frac monitoring and analysis

New locking solutionsSOSS expands manufacturing factory in the Middle East

The FracRight system is a fully integrated frac sleeve solution for selective multi-zone stimulation in open hole or cased hole applications

Innovations

SOSS is strategically located in Dubai

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PROVIDER OF FLOW control productsand services Flowserve has introduced itsnew Bearing Gard bearing isolator. One of the major causes of pump

downtime is contamination of the bearinglubrication system. The new Flowservebearing isolator can significantly reducethis contamination, in part due to theaddition of static shut-off technology.Flowserve has also developed a fastermanufacturing process to provide same-day manufacturing and shipping, even oncustom bearing isolator orders. An optimised oil collection chamber

works to keep oil inside the bearings andoff the ground.Flowserve bearing isolators support

pumps serving chemical processing,petrochemical, biofuel, corn processing,pulp and paper, oil and refining, power,water and wastewater, mining, etc. The Bearing Gard bearing isolator was

launched at the 2014 Turbomachinery andPump Symposia in Houston, US, inSeptember.

GLOBAL COATINGS SUPPLIER Hempel have just announced the launch ofHEMPADUR AvantGuard®, a portfolio of three new anti-corrosive zincprimers. Based on unique, patented AvantGuard® technology, HEMPADURAvantGuard® coatings provide better anti-corrosion protection than zincepoxies without AvantGuard®.Zinc coatings are used to protect industrial structures and equipment in

C4 and C5 corrosive conditions, where saltwater and high humidity corrodeunprotected steel. Based on new, patented AvantGuard® technology,HEMPADUR AvantGuard® activated zinc primers are developed for arange of industries and applications, from offshore oil and gas platforms towind turbines. Pernille Lind Olsen, group protective product director at Hempel,

commented, “AvantGuard® is perhaps the biggest change in anti-corrosive

technology since zinc coatings were first introduced during the 1960s. Thetechnology gives customers strong anti-corrosion performance in a coatingthat has high mechanical strength.” AvantGuard® uses hollow glass spheres and a proprietary activator to

activate more zinc in the coating, ensuring a significantly higher galvaniceffect than zinc primers without the AvantGuard® technology. Thetechnology also enables barrier and inhibitor protection, and so combinesthree protective effects in one. Furthermore, the unique formulation improves the coating’s mechanical

strength, which is essential for applications with, for example, extremetemperature and humidity fluctuations. “In a standard zinc epoxy protective system, the zinc primer is the

weakest mechanical point and, as a result, cracks can form in the coating asthe steel expands and contracts under extreme conditions,” said JosepPalasi, Hempel R&D director. “AvantGuard® zinc coatings are different asthe glass spheres and sub-products that result from the unique zincactivation process stop micro-cracks as soon as they form. This, we can say,makes the coating self-healing.” The increased protection and durability has been proven in extensive

Hempel tests, including salt spray tests (ISO 12944 part 6), cyclic corrosiontests (ISO 20340 - NORSOK M-501 revision 6) and thermal cycling resistancetests (NACE cracking test and Hempel’s welding test).HEMPADUR AvantGuard® primers can be applied using the same

application techniques as standard zinc epoxies. “In our tests, HEMPADUR AvantGuard® shows a high tolerance to

different application conditions, such as high temperatures and humidity,and we even see high crack resistance when the coating is applied with anexcessive dry film thickness,” Pernille Lind Olsen said. The HEMPADUR AvantGuard® series currently includes three different

zinc primers and was released worldwide on 23 September 2014.

THRUSTMASTER’S PATENTED PORTABLEDynamic Positioning System (PDPS) consists ofmodular, deck mounted azimuthing thrusterswith separate hydraulic power units and a DPcontrol van interfaced and ready to go. The whole system can be quickly installed

dockside without dry-docking and withoutextensive modifications to the vessel. According to the company, it is ideal for

upgrading derrick barges, pipe lay vessels,cable lay barges, accommodation vessels,FPSOs, heavy lift vessels, and more. Asoffshore operations move to deeper waters,one can upgrade the anchor moored vesselsto DP-1, DP-2 or even DP-3 to meet andexceed the standards set by any classificationsociety, the company added.This vessel opportunity can be ready to go

in no time with power ranges from 225kW to2,250kW (300HP to 3,000HP), DP Systems,controls and deck mounted or internal skid hydraulic power units.The portable thrusters are mounted on deck using a minimum amount of deck space. They

use direct hydraulic drive to the propeller. The variable speed hydrostatic drive motor is in thelower foot of the thruster directly in line with the propeller shaft. This direct hydraulic driveeliminates the need for right angle gear transmissions and drive shafts used on other thrusters.Best suited for vessels between 30 to 180 metres in length, PDPS can be provided per

DPS-0 to DPS-3 requirements of any classification society.

Flowserve’s new bearinggard can reducecontamination in pumps

Thrustmaster launches dynamic vesselconverter for offshore operations

Hempel’s new HEMPADUR AvantGuard® primers redefine anti-corrosion

PDPS Installed on Versabar VB 10,000 — abarge-mounted dual truss system with theability to perform single-piece topsidefloatovers and retrievals of up to 10,000 tonnes

Innovations

The HEMPADUR AvantGarde series was developed forapplications including offshore oil and gas platforms

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ENOC SUBSIDIARY CYLINGAS used its platform atthe second Annual Tanks Management Summit in AbuDhabi to highlight the latest advances in tankmanagement, which included its selection ofcentrifugal pumps for terminals. Cylingas, a UAE-based company with 40 years

experience in engineering, fabrication andconstruction, is among the leading providers of EPCservices to the industrial and energy sectors, and hasplans in place to expand its geographic presence inkey markets throughout the GCC region.At the event in Abu Dhabi, Cylingas engineering manager Jyoti

Swarup shared experiences of ‘Selecting Centrifugal Pumps’,highlighting the definitions and classifications, performance curve,affinity laws, specific speed and cavitation, suction energy, viscosityand multi-pump operations, among other topics. Cylingas chairman of board, Saif Al Falasi, said, “The second

Annual Tanks Management Summit was an important event thathighlighted international best practices for the storage terminalsector, and put the spotlight on technological advancements in

cleaning and maintaining roof tanks, as well as new solutions inend-to-end tanks and terminal systems. “As a key player in the sector, Cylingas presented our learnings in

the industry that can help strengthen the operational efficiency ofour partners and clients.”The Abhu Dhabi summit focused on regional challenges and

opportunities in the maintenance and optimisation of hydrocarbonstorage terminals and was attended by oil and gas professionals,consultants and contractors.

NOV MONO HAS revealed thatsales of its range of UniversalParts for progressing cavity (PC)pumps have increased by amargin of 122 per cent over thepast nine years. The company’s precision-made

Universal Parts have beendesigned to be suitable for mostother brands of PC pumps, withthe range containing a variety ofcomponents that help keep plantsand processes up and running atpeak efficiency. NOV Mono’sUniversal Parts range includesprecision-engineered parts that fitinto most PC pump brands, and have been thoroughly tested, engineeredand manufactured to the highest possible standards. “The dramatic growth in sales has been impressive by any standards,”

remarked Simon Lambert, Mono commercial director – UK, Europe,Africa, Middle East and Central Asia. “It also underlines the increasingvalue that customers place on having quick and reliable access to high-quality, proven parts for their PC pumps.”NOV Mono, a division of US-based National Oilwell Varco, comprises

a group of companies offering a range of products and services,including progressing cavity pumps, artificial lift systems, industrialmixers, heat exchangers, grinders, screens and aftermarketreplacement parts. The company first began manufacturing progressingcavity pumps in 1935 and industrial mixers in 1952, and last yearacquired Robbins and Myers. “Customers are increasingly demanding a spares solution that offers

quality, reliability and easy availability, and the growing popularity of ourUniversal Parts range shows that it offers exactly that,” Lambert added. Mono also provides fully-assembled rotating units for certain product

ranges, which include a rotor, stator, joint kit, coupling rod, plug-in shaftand mechanical seal or gland packing, removing the requirement for on-site assembly and offering limited installation times.

NETZSCH HAS won the 2014 Global Product Leadership Award inProgressive Cavity Pumps for Oil and Gas, its second Frost &Sullivan best practices award since 2011.Frost & Sullivan notes that NETZSCH has developed innovative

technologies that aid end users with current challenges. Thecompany, which has been making cavity pumps for over 60 years,collaborates closely with customers, enabling it to design productsthat meet their specific requirements, whether in up-, mid- ordownstream applications. Together with joint venture partnerHeishin in Japan, NETZSCH says it has 28 per cent of globalmarket share of these pumps.Oil and gas is a critical process industry, as it cannot afford

downtime. Hence, the reliability and quality of a pump areparticularly important. NETZSCH uses advanced testing facilitiesto ensure all pumps perform satisfactorily before being installedon site. It has dedicated consulting, technical and spare-partsteams to provide the best customised solution for eachapplication. Importantly, too, service and maintenance contractsare proactive, rather than reactive. The company’s global presence, with its extensive distributor

network, enables it toprovide around-the-clock services andensure that downtimeis minimised.Technicians documentevery aspect to makesure the products areserviced on time. Toenhance the costeffective-ness of itspumps, NETZSCH hasautomated theprocess to makestandardisation anddocumentation easier.

Cylingas showcases advances in storage terminals at Abu Dhabi event

NETZSCH wins Global Product Leadership Award in Progressive Cavity Pumps for Oil and Gas

NOV Mono highlights success of its Universal Parts offering

Innovations

The Cylingas team at the second Annual Tanks Management Summit in Abu Dhabi

NOV Mono has increased sales ofits Universal Parts offering over thepast nine years by 122 per cent

100 oilreview.me Issue 6 2014

Frost & Sullivan global vice-president of bestpractices Jeffrey Frigstad presenting theaward to NETZSCH Pumps & Systemsmanaging director Felix Kleinert

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THE OIL AND gas construction and engineering group Lamprellannounced it has experienced strong operational performance this year,having successfully delivered a number of technically-challenging andmajor projects. So far in 2014 Lamprell has delivered two jack-up drillingrigs to the National Drilling Company (NDC), theNDC 3 ‘Qarnin’ and NDC 4 ‘Marawwah’, as wellas a new self-propelled jack-up vessel, named‘Hydra’, to the offshore vessel provider Seajacks.This year has also seen Lamprell complete the

largest and one of the most complex rigconversion and refurbishment projects in thecompany’s history, delivered to its clientMillennium Offshore Services. Among theoperational achievements reached on thistechnically-challenging project was a world-classsafety record. Furthermore, the UAE-basedcompany has secured two major contract awardsfrom leading drilling firms, Ensco and ShelfDrilling. Both deals involve Lamprell constructingtwo LeTourneau 116E jack-up rigs for bothcompanies, while the contract with Ensco, theworld’s second largest jack-up operator, has theoption of constructioning two more. According toLamprell, signing the deal for the new projectswith Ensco is a significant win, as Ensco haspreviously concentrated its new buildingactivities in the Far East. A Lamprell representative said both contracts

affirm its place among the world’s leading jack-upbuilders and reflect the quality of the build,efficient production, and safety procedures inplace at the company’s fabrication facilities,which are based in the UAE.The company explained that the current Middle

East jack-up fleet numbers around 148 drilling unitsand analysts have predicted an increase of up to

160 drilling rigs over the next 12 months. It estimates that much of thisdemand is expected to be generated by Saudi Aramco and includesrenewals of some incumbent units. However, following the record number of rigs ordered in 2013 – which

are expected to enter the market over the next 12months – Lamprell has noted a recent softening inthe rig market. According to a companyrepresentative, a significant number of jack-upsare being built to specification in China and oldjack-up drilling units are rarely scrapped; they areeither refurbished or converted for non-drillingfunctions, such as maintenance oraccommodation units. Whether the market is looking to build new

jack-up rigs or convert and upgrade old units,Lamprell is positioned to benefit from newprojects by leveraging its key strengths, such asits high-build quality, timely delivery, strong safetyrecord, commitment to reliability, workingcollaboratively with clients, skilled workforce andits strategically-located facilities.Lamprell has been operating in the Middle East

since the mid-1970s and for the first two decadesit focused on small offshore energy sectorprojects, ranging from repair and modification ofdrilling rigs, accommodation modules and landcamps, to the overhaul of rig machinery. In the late 1990s, the company diversified into

the new build construction market for theoffshore oil and gas sector and then, later, intothe renewable energy sector, constructing self-propelled, self-elevating liftboats and wind farminstallation vessels. Over the last seven years,Lamprell has successfully delivered a total of 22new build jack-up rigs, including nine Super 116Ejackup drilling units.

SULZER HAS SIGNED an agreement to acquire a 75 per cent stake in Saudi Pump Factory withwith Nabil Al Hashim, founder of the company, for US$37.5mn and establish local production jointventure Sulzer Saudi Pump Company (SSPC).The pump and valve manufacturing firm is located in Riyadh with a workforce of 170

employees and with achieved sales of approximately US$26.7mn in 2012.According to Sulzer, this acquisition is in line with its focus on the oil and gas, power and

water key markets as these are major sectors of Saudi Arabia’s fast growing economy. SSPCwill be the first complete manufacturing facility in Saudi Arabia for a global pumpmanufacturer of API pumps, serving one of the largest oil and gas markets worldwide.The 25,000 square metres facility in Riyadh produces all types of centrifugal pumps to API

and ASME standard and will be part of Sulzer’s global manufacturing network, focusing onthe oil and gas, power and water markets. This setup will reportedly enable Sulzer to serve its Saudi Arabian and GCC customers

from a local base.

Sulzer strengthens presence in Saudi Arabia

Lamprell celebrates successful rig business in 2014

The pump and valve manufacturing firm is located in Riyadh

Innovations

Lamprell has delivered two jack-up drillingrigs to the National Drilling Company thisyear, including the NDC 4 ‘Marawwah’

102 oilreview.me Issue 6 2014

SUBSEA VISION SYSTEMSmanufacturer Bowtech Products haslaunched LED-S-Series lamp, which is asmaller, 10,000 lumen ‘baby’ version of20,000 lumen LED-V-Seriesunderwater floodlight.Having an output of up to 10,000

lumens with a beam angle of 80º inwater (narrower angles are available,according to Bowtech Products) thelamp is ideal for illuminating large areasfor HD viewing tasks.Manufactured in corrosion-resistant

hard anodised aluminium with anacrylic window, the lamp is rated tooperate at 6,000 metres ocean depth.The LED-S-Series lamp is now

available as either 100-120Vac or 130-150Vdc, with a selection of connectorsand connector positions available.

Bowtech Product’s newest addition to LED family

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Middle East & North AfricaThe Baker Hughes Rig Count tracks industry-wide rigs engaged in drilling and related operations, which include drilling, logging, cementing,coring, well testing, waiting on weather, running casing and blowout preventer (BOP) testing.

Source: Baker Hughes

RIG COUNT

THIS MONTH VARIANCE LAST MONTH LAST YEARCountry Land OffShore Total From Last Month Land OffShore Total Land OffShore Total

Middle EastABU DHABI 21 9 30 0 23 7 30 19 8 27DUBAI 0 2 2 1 0 1 1 0 0 0IRAQ 94 0 94 5 89 0 89 80 0 80 JORDAN 0 0 0 0 0 0 0 0 0 0 KUWAIT 34 0 34 0 34 0 34 30 0 30 OMAN 59 0 59 1 58 0 58 45 1 46 PAKISTAN 20 0 20 -3 23 0 23 21 0 21 QATAR 2 5 7 1 2 4 6 2 7 9 SAUDI ARABIA 89 19 108 10 78 20 98 64 19 83 SUDAN 0 0 0 0 0 0 0 0 0 0SYRIA 0 0 0 0 0 0 0 0 0 0 YEMEN 4 0 4 0 4 0 4 4 0 4 TOTAL 232 35 358 15 311 32 343 265 35 300

North AfricaALGERIA 47 0 47 -2 49 0 49 46 0 46 EGYPT 45 11 56 -9 45 10 65 47 11 58 LIBYA 11 1 11 3 8 0 8 15 0 15 TUNISIA 0 0 0 0 0 0 0 3 1 4 TOTAL 103 12 114 -8 102 10 122 111 12 123

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1 8/12/12 4:14 PM

Project DatabankCompiled by Data Media Systems

Project Facility Budget ($ US) Country Status

AJOC - KJO - Expansion of Khafji Crude Oil Production Neutral Zone 1,522,000,000 ConstructionProduction Facilities (Hout Field - Onshore & Offshore)

Kuwait Gulf Oil Company (KGOC) - Condensate Refinery Khafji 2,000,000,000 ConstructionGas and Condensate Export System

Luberef - Lubricants Refinery Expansion Lube Oil Yanbu 1,000,000,000 Construction

Maaden - Sabic - Mosaic - Petrochemical Plant Ras Al Khair 500,000,000 EPC ITBWaad Al Shamaal Mining City/ Phosphate City - Balance Downstream Plant

Petro Rabigh Refinery & Aromatics Rabigh 5,000,000,000 ConstructionPetrochemical Complex Expansion - Phase 2 (Overview)

Sabic - Mitsubishi Rayon - Lucite International - Dimethyl Ether (DME) Jubail 5,000,000,000 ConstructionAlpha 2 - Petrochemical (MMA & PMMA) Plants

Sabic - Oil-to-Chemicals Plant Oil Production Yanbu 30,000,000,000 Feasibility Study

Sadara Chemical Company - Refinery Jubail 20,000,000,000 ConstructionJubail Integrated Refining & Petrochemicals Project (Overview)

SAMREF - Yanbu Oil Refinery Revamp - Refinery Yanbu 2,000,000,000 Engineering &Clean Fuels Project (Overview) Procurement

Saudi Aramco - Arabiyah & Hasbah Offshore Gas Processing Manifa 1,500,000,000 ConstructionDevelopment Program - Gas Processing Plant

Saudi Aramco - Oil & Gas Field Eastern Region 3,000,000,000 EPC ITBExpansion of Khurais Oilfield

Saudi Aramco - Gas Field Eastern Region 3,000,000,000 EPC ITBFadhili Gas Plant

Saudi Aramco - Refinery Jizan 7,000,000,000 ConstructionJizan Export Refinery (Overview)

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

Saudi Aramco - Isomerisation Riyadh 2,500,000,000 Engineering & Riyadh Refinery - Clean Transportation Fuel Procurement

Saudi Aramco - Oil & Gas Field Safaniyah 500,000,000 Feasibility StudySafaniyah Oil Field (Phase 2)

Saudi Aramco - Natural Gas Shaybah 6,000,000,000 ConstructionShaybah NGL - Recovery Unit (Overview) Liquefaction (NGL)

Saudi Aramco - Gas Field Development Dammam 6,000,000,000 ConstructionWasit Gas Field Development (Overview)

Wafra Joint Operations Company - Steam Injection Neutral Zone 800,000,000 Engineering & Wafra Heavy Oil Field (Overview) Procurement

Yanbu Aramco Sinopec Refining Company (YASREF) - Refinery Yanbu 13,000,000,000 ConstructionYanbu Export Refinery (Overview)

OIL, GAS AND PETROCHEMICAL PROJECTS -SAUDI ARABIA

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KEY FEATURES

NEW FEATURES

Over major projects tracked in over

across

major projects trackedin over

across

Customizable Dashboard

Project Overview Advanced Search

Key Personnel Market Forecast

Bidders List Industry News

CONTACT USTel: +973 1740 5590 Fax: +973 1740 5591 [email protected]

www.dmsprojects.net

1 8/12/12 4:14 PM

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Project Summary

Saudi Aramco Lubricating Oil Refining Company (Luberef) plans to expand its lubricants refinery in Yanbu, Madinah. The expansion of the refinery is expected toproduce a new type of base oil known as type three, which will be used in high quality car engines. Upon completion, the capacity of oil lubricants will be doubledfrom 280,000 tonnes per year (tpy) to 560,000 tpy.

Project Status

Aug 2014 Foundation works on the building, pipeline, equipment and structure of the main package is ongoing. The construction works are scheduled forcompletion in the fourth quarter of 2015.

May 2014 Construction works on the Vacuum Distillation Unit (VDU) package has been completed.

Mar 2014 Industry sources within Samsung Engineering have revealed that the construction works are currently 25 per cent complete.

Jan 2014 Construction works are ongoing as per schedule, with completion expected in January 2016.

4Q-2009 FEED ITB

1Q-2011 FEED

2Q-2012 EPC ITB

4Q-2012 Engineering & Procurement

1Q-2016 Completed

Project ScopeSaudi Aramco Refining Lubricating Company (Luberef) plans to expand its lubricants refinery in Yanbu. The expansion of the refinery would double the existingcapacity of oil lubricants from 280,000 tpy to 560,000 tpy. Upon completion, the facility would be able to produce a new type of base oil. The oil produced will be oilof type three, which is used in car engines.The expansion of the lubricants refinery includes the following:- Construction of 23,000 barrel per day (bpd) Lube hydrocracker- Construction of offsites and utilities- Construction of supporting services such as a tank farm and additional storage

Project Finance

Luberef was primarily established in 1978 as a 70:30 joint venture between the state owned Saudi Aramco and the US oil major ExxonMobil. In late 2007, however, Jadwa Industrial Investment Company acquired ExxonMobil's 30 per cent interest in the Saudi Aramco Lubricating Oil Refining Company(Luberef) to become the sole partner to Saudi Aramco in Luberef.

Project Schedules

Project Name Luberef - Lubricants Refinery Expansion

Name of Client Saudi Aramco Lubricating Oil Refining Company (Luberef)

Budget ($ US) 1,000,000,000

Award Date Q4-2012

Facility Type Lube Oil

Status Construction

Start Date Q4-2009

End Date Q1-2016

Location Yanbu

Project FocusCompiled by Data Media Systems

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Helps reduce the risk of leaks caused by internal corrosion.

Effectively removes deposits so corrosion inhibitors and biocides can work.

Brushes conform to inside diameter of pipe to clean pipe wall.

Excellent all-purpose cleaning pig for pipe sizes 6” and larger.

NORTH & SOUTH AMERICA: 918-447-5000

EUROPE/AFRICA/MIDDLE EAST: 32-67-28-36-11

ASIA/PACIFIC: 65-6364-8520

OFFSHORE SERVICES: 832-448-7200

To learn more about our entire line of pipeline pigging solutions,

contact your nearest TDW sales representative

or visit www.tdwilliamson.com.

Pipeline corrosion just met its match.

The PitBoss™ cleaning pig from TDW.

® Registered trademark of T.D. Wil l iamson, Inc. in the United States and other countries. ™ Trademark of T.D. Wil l iamson, Inc. in the United States and other countries. © Copyright 2014 All rights reserved. T.D. Williamson, Inc.

Pipeline corrosion Pipeline corrosion just met its met its match.match.

The PitBoss™ cleaning pig from TDW. The PitBoss™ cleaning pig from TDW.

3:31 PM

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hdµø ‘ H©†¢ G◊É’ä ’ jµƒ¿ G’Ceô còd∂z.

hHóh¿ Pcô GCS°ªÉA Gdû°ôcÉä, GCT°ÉQ L«Ñ«æõ GE¤ GEMói

T°˘ôc˘Éä Gd˘©˘ª˘∏˘«˘Éä Gd˘à˘» b˘Éeâ H˘ÉEL˘ôGA GS°˘à˘Ñ«É¿ T°Éeπ

Y∏≈ T°ôcá NóeÉä hhLóä GC¿ 05‘ GŸÉFá eø Gdù°Ò

Gd˘òGJ˘«˘á J˘à†°˘ª˘ø e˘©˘∏˘ƒe˘Éä RGF˘Øá. gòG ` HÉd£Ñ™ ` jû°µπ

flÉW˘ô g˘ÉF˘∏˘á H˘Éd˘æù°˘Ñ˘á dù°˘Óe˘á GCjá eôa≥ d∏ü°æÉYÉä

G’Chd˘˘«˘˘á GCh Gd˘˘æ˘˘¡˘˘ÉF˘˘«˘á, hj˘£˘ôì Gd˘àù°˘ÉhD∫ GÿÉU¢ H˘µ˘«˘Ø˘«˘á

–≤˘˘≥ Gdû°˘˘ôc˘˘á e˘ø e˘¡˘ÉQGä he˘ƒDg˘Óä g˘ƒD’A Gd˘©˘Ée˘∏Ú

Gdòjø jຠGdà©Ébó e©¡º.

hHëãÉ Yø G◊∏ƒ∫, GCcó GEd«ƒä ‘ J≤ôjô√ Y∏≈ G◊ÉLá

GE¤ L˘˘∏Ö GŸõj˘˘ó e˘˘ø GŸ©˘˘óGä Ÿù°˘˘ÉY˘˘óI Gd˘˘≤˘ƒI Gd˘©˘Ée˘∏˘á,

hH˘˘˘˘˘î˘˘˘˘˘ÉU°˘˘˘˘˘á e˘˘˘˘˘©˘˘˘˘˘óGä J˘˘˘˘˘î˘˘˘˘˘õj˘˘˘˘˘ø Gd˘˘˘˘Ñ˘˘˘˘«˘˘˘˘Éf˘˘˘˘Éä GCh G’Cf˘˘˘˘¶˘˘˘˘ª˘˘˘˘á

G’ChJ˘˘˘ƒe˘˘˘ÉJ˘˘˘«˘˘˘µ˘˘˘«˘˘˘á Gd˘˘òc˘˘˘«˘˘˘á Gd˘˘˘à˘˘˘» ” Jü°˘˘˘ª˘˘˘«˘˘ª˘˘¡˘˘É ’d˘˘à˘˘≤˘˘É•

Gd˘Ñ˘«˘Éf˘Éä, hGd˘à˘©˘∏º eø G’CMóGç, h–ù°Ú G’EfàÉê heæ™

G◊ƒGOç GŸà˘˘˘˘©˘˘˘˘∏˘˘˘≤˘˘˘á H˘˘˘Édù°˘˘˘Óe˘˘˘áz. hY˘˘˘∏˘˘˘≈ Gd˘˘˘ôZ˘˘˘º e˘˘˘ø GC¿

GŸ©˘˘˘óGä G’ChJ˘˘˘ƒe˘˘˘ÉJ˘˘«˘˘µ˘˘«˘˘á e˘˘ø g˘˘òG Gd˘˘æ˘˘ƒ´ b˘˘ó J˘˘Ñ˘˘óh GCe˘˘ôGk

eù°à≤Ñ∏«Ék ZÒ hGb©», a≤ó Oa™ GEd«ƒä HÉC¿ e©óGä G÷«π

GdàÉ‹ eø gòG Gd惴 eù°àîóeá HÉdØ©π ‘ H©†¢ e©Éeπ

Gd˘à˘µ˘ôj˘ô G’ChQhH˘«˘á. hGChV°˘í bÉFÓk: d∏à¨∏Ö Y∏≈ a≤óG¿

GŸ©ôaá Gdà» jëàØß H¡É G’CaôGO, Jµƒ¿ G’Cf¶ªá Gdòc«á

e˘£˘∏˘ƒH˘á hg˘» Gd˘à˘» ’ J˘≤˘àü°˘ô Y∏≈ cƒf¡É NõGFø MØß

GŸ∏˘˘˘˘Ø˘˘˘˘Éä G’Ed˘˘˘˘µÎhf˘˘˘«˘˘˘á, hd˘˘˘µ˘˘˘æ˘˘˘¡˘˘˘É GCj†°˘˘˘É J˘˘˘∏˘˘˘à˘˘˘≤˘˘˘§ GŸ©˘˘˘ôa˘˘˘á

GŸù°àîóeá hJ©ªπ Y∏≈ JƒU°«π GŸ©∏ƒeÉä Gdü°ë«ëá GE¤

Gdû°˘˘˘˘˘˘îü¢ GŸæ˘˘˘˘˘˘ÉS°Ö, ‘ Gd˘˘˘˘˘˘ƒbâ GŸæ˘˘˘˘˘ÉS°Ö, c˘˘˘˘˘é˘˘˘˘˘õA e˘˘˘˘˘ø

Gd˘©˘ª˘∏˘«˘Éä Gd˘«˘ƒe˘«˘áz. hH˘Éd˘ôZ˘º e˘ø GC¿ g˘ò√ G’Cf˘¶˘ªá bó

J˘©˘ª˘π Y˘∏˘≈ –ù°Ú G’Ef˘à˘Éê he©É÷á GŸû°µÓä GdæÉLªá

Yø e©ó∫ GdóhQG¿ GŸôJØ™ dØôj≥ Gd©ªπ, ’JõG∫ eû°µ∏á

G◊ó eø G’CN£ÉA Gdà» JôJµÑ¡É Gd≤ƒI Gd©Ée∏á eàƒGLóI.

eø fÉM«á GCNôi, aÉE¿ Gdù°Óeá Gdù°∏ƒc«á, cªÉ GChV°ëà¡É

Gdû°ôcá G’ChQhH«á dÓS°àû°ÉQGä GdÑÎhd«á )(, g»

GCMó G’CT°µÉ∫ GÿÉU°á Hù°«ÉS°á Gdü°ëá hGdù°Óeá Gdà»

J˘¡˘ó± GE¤ J˘¨˘«Ò S°˘∏˘ƒ∑ Gd˘Ø˘ôO N˘Ó∫ Gd˘©˘ªπ, hfiÉhdá

N∏≥ bƒI YÉe∏á PGä GŒÉ√ eƒMó fëƒ Gdù°Óeá. hGChV°í

L˘«˘Ñ˘«˘æ˘õ GC¿ G’Ce˘ô H˘ôe˘à˘¬ j˘à˘©˘∏˘≥ H˘à˘¨˘«Ò Gd˘à˘Ø˘µÒ GŸù°Ñ≥

Gd˘ò… jù°˘«˘£˘ô Y˘∏˘≈ c˘π Jü°˘ô± e˘ø Jü°˘ôaÉä GdØôO ‘

GŸƒb˘˘™. hb˘˘É∫ L˘˘«˘˘Ñ˘˘«˘˘æ˘˘õ: J˘˘ƒL˘˘ó Y˘˘óI W˘ô¥ J˘ƒa˘ô Gd˘ƒbâ

d˘ÓCa˘ôGO hŒ©˘∏˘¡˘º j˘≤˘Ñ∏ƒ¿ Y∏≈ GıÉWôI. hJµªø aµôI

Gdù°˘˘Óe˘˘á Gdù°˘˘∏˘ƒc˘«˘á ‘ L˘©˘π G’Ca˘ôGO j˘Ø˘µ˘ôh¿ OGF˘ª˘É ‘

Gd£ôj≤á Gdà» j©ª∏ƒ¿ H¡É, hGd£ôj≤á Gdà» jù°àîóeƒf¡É,

e˘˘™ Gd˘˘à˘Ø˘µÒ ‘ Gd˘ƒbâ f˘Øù°˘¬ Hù°˘ƒDG∫ GCf˘Øù°˘¡˘ø )g˘π g˘»

GBeæá?( hcòd∂ eôGYÉI G’CaôGO GŸƒLƒOjø Mƒd¡ºz.

N˘˘à˘Ée˘Ék, j˘ƒL˘ó Y˘óO e˘ø GıÉW˘ô Gd˘à˘» J˘¡˘óO S°˘Óe˘á

eôGa≥ Gdæا hGd¨ÉR hGd©ª∏«Éä, hc∏¡É J©ƒO GE¤ Gÿ£ÉC

Gd˘˘Ñû°˘˘ô… Gd˘˘£˘˘Ñ˘˘«˘˘©˘˘». hM˘˘à˘˘≈ J˘˘ôc˘˘«Ö GŸõj˘˘ó e˘ø GŸ©˘óGä

S°˘ƒ± jû°˘ª˘π GŸû°˘ÉQc˘á Gd˘Ñû°˘ôj˘á ‘ Y˘ª˘∏˘«˘Éä Gd˘àü°˘ª˘«˘º

hGdÎc˘˘«Ö hGdü°˘˘«˘˘Éf˘˘á. hjù°˘˘à˘˘ë˘˘«˘˘π Gd˘˘≤†°˘ÉA Y˘∏˘≈ Gÿ£˘ÉC

GdÑû°ô…, hdµø G◊π jµªø ‘ JƒL«¬ Gd£Ébá GdµÑÒI GE¤

GCM˘˘˘˘˘˘˘óç Gd˘˘˘˘˘˘˘à˘˘˘˘˘˘˘óQj˘˘˘˘˘˘˘Ñ˘˘˘˘˘˘˘Éä ‘ ›É∫ Gdü°˘˘˘˘˘˘˘ë˘˘˘˘˘˘á hGdù°˘˘˘˘˘˘Óe˘˘˘˘˘˘á,

hGŸµÉaëá eø GCLπ GdàƒU°π GE¤ Gdû°ØÉa«á GdàÉeá Ûªπ

Gd≤ƒI Gd©Ée∏á.

OjÖ hhJô gƒQGjõh¿ T°¡ó Jù°ôHÉk j≤ôÜ eø 087GCd∞ eÎ eµ©Ö eø Gdæا ‘ e«É√ N∏«è GŸµù°«∂

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GdƒU°ƒ∫ GE¤ GCa†°π OQLÉä Gdü°ëá hGdù°Óeá‘ GŸƒb˘™, g˘ƒ Gd˘µ˘Ø˘Éì GŸù°˘à˘ªô dû°ôcÉä GdæاhGd˘¨˘ÉR Gd˘à˘» J©ªπ ‘ eæ£≤á Gdû°ô¥ G’ChS°§.aªÉ g» GdàëójÉä Gdà» JƒGL¡¡É J∏∂ Gdû°ôcÉä,h‘ Gdæ¡Éjá, eÉ Gdò… jຠGJîÉP√ d∏à¨∏Ö Y∏«¡É?

j˘≤˘ƒ∫ J˘≤`ôj˘ô H˘ôj˘àû¢ HÎhd˘«˘ƒΩ Y˘ø eù°˘à≤Ñπ Gd£Ébá

,GE¿ Gd£∏Ö Y∏≈ Gd£Ébá jû°¡ó

GQJ˘Ø˘ÉY˘Ék, M˘«å e˘ø GŸ≤˘ôQ GC¿ j˘ôJ˘Ø˘™ GS°˘à¡Ó∑ Gd£Ébá

Gd©ÉŸ» Hæù°Ñá 14‘ GŸÉFá e™ M∏ƒ∫ 5302. hf¶ôG ’C¿

Gd˘˘˘˘óh∫ GŸæ˘˘˘˘à˘˘˘˘é˘˘˘˘á d˘˘˘˘∏˘˘˘˘£˘˘˘˘Éb˘˘˘˘á ‘ Gdû°˘˘˘˘ô¥ G’ChS°˘˘˘˘§ J˘˘˘ƒGU°˘˘˘π

GS°àãªÉQgÉ ‘ Gd£ô¥ G÷ójóI ZÒ Gdà≤∏«ójá ’S°àîôGê

Gd˘ƒb˘ƒO, J˘õOGO ` H˘Éd˘æù°˘Ñ˘á d˘¡˘ò√ Gdû°˘ôcÉä ` GCgª«á JƒaÒ

S°«ÉS°á a©Édá d∏ü°ëá hGdù°Óeá GdµÉe∏á ‘ GŸƒb™. aªªÉ

’ T°∂ a˘˘«˘˘¬ GC¿ S°˘˘«˘˘ÉS°˘á d˘∏ü°˘ë˘á hGdù°˘Óe˘á J˘©˘àÈ GCe˘ôG

Hój¡«Ék ‘ GC… U°æÉYá, dµø d¡É GCgª«á NÉU°á ‘ b£É´

Gdæا hGd¨ÉR. hf¶ôG ’C¿ cπ Yª∏«Éä Gdü°æÉYÉä G’Chd«á

hGdæ¡ÉF«á Jà£∏Ö eû°ôhYÉä Y∏≈ f£É¥ hGS°™, hJà©Éeπ

e™ GŸƒGO T°ójóI Gÿ£ƒI, aÉE¿ GCHù°§ G◊ƒGOç bó jµƒ¿

d¬ JóGY«Éä eóeôI dÓCaôGO Gd©Ée∏Ú ‘ GŸƒb™, hcòd∂

d∏Ñ«Äá GÙ«£á.

a˘˘˘˘˘˘≤˘˘˘˘˘˘ó GCS°˘˘˘˘˘˘Ø˘˘˘˘˘˘ô Gf˘˘˘˘˘˘Ø˘˘˘˘˘˘é˘˘˘˘˘ÉQ ‘ H˘˘˘˘˘ôê G◊Ø˘˘˘˘˘ô OjÖ hhJ˘˘˘˘˘ô

g˘ƒQGj˘õh¿z ‘ N˘∏˘«˘è GŸµù°˘«∂ YÉΩ 0102Y˘ø ha˘ÉI 11

Y˘Ée˘Ók, hT°˘¡˘ó Jù°˘ôÜ MƒG‹ 087GCd˘∞ eÎ e˘µ˘©Ö eø

Gd˘˘æ˘˘Ø˘˘§ ‘ Gd˘˘Ñ˘˘ë˘˘ô, ‡É GCOi GE¤ Nù°˘˘ÉF˘˘ô H˘˘©˘˘«˘˘óI GŸói

d˘˘˘˘˘∏˘˘˘˘˘ë˘˘˘˘«˘˘˘˘ÉI GdÈj˘˘˘˘á GÙ«˘˘˘˘£˘˘˘˘á, hPd∂ ‘ hGM˘˘˘˘óI e˘˘˘˘ø GCcÈ

Yª∏«Éä Jù°ôÜ Gdæا ‘ JÉQjï Gdƒ’jÉä GŸàëóI. YÓhI

Y˘˘∏˘˘≈ Pd∂, c˘˘É¿ d˘˘àù°˘˘ôÜ OjÖ hhJ˘˘ô g˘˘ƒQGj˘˘õh¿z J˘ÉCKÒ

eÉ‹ cÑÒ GCOi GE¤ Jµ∏Øá eû°¨∏» G◊ØÉQI dói HôJû¢

HÎhd«ƒΩz e∏«ÉQGä Gdóh’QGä ‘ Gdà涫∞ hGd੃j†°Éä.

a˘É◊ƒGOç ‘ U°˘æ˘ÉY˘á Gd˘æ˘Ø˘§ hGd˘¨˘ÉR, Y˘∏˘≈ Gd˘ôZº eø

GCf¡É bó JÑóh U°¨ÒI Hü°ƒQI GChd«á, bó jµƒ¿ d¡É JÉCKÒ

c˘˘ÑÒ Y˘∏˘≈ Gd˘æû°˘É• Gd˘à˘é˘ÉQ… d˘∏û°˘ôc˘á. hH˘É’EV°˘Éa˘á GE¤

Jµ∏Øá GEU°Óì eÉ GCS°Øô Yæ¬ G◊ÉOç, bó jæàè GCj†°É Yø

Gdù°˘˘ª˘˘©˘˘á Gdù°˘˘«˘˘Ä˘˘á d˘˘∏ü°˘˘ë˘˘á hGdù°˘˘Óe˘˘á GQJ˘Ø˘Él ‘ GCS°˘©˘ÉQ

GdàÉCeÚ hN£ƒQI Nù°ÉQI Gdæû°É• GdàéÉQ… GŸôHí.

hU°ôì GCfó… L«Ñ«æõ, fÉFÖ QF«ù¢ Gdû°ôcá G’ChQhH«á

d˘ÓS°˘àû°ÉQGä GdÑÎhd«á )(‘ Gdû°˘˘ô¥ G’ChS°˘§, d`

Gdæû°ôI GdæØ£«áz bÉFÓ: GC… T°ôcá JÉCeÚ Jæ¶ô ‘ GCOGA

Gdû°˘ôc˘Éä hJù°˘à˘î˘óΩ Gd˘Ñ˘«˘Éf˘Éä Gd˘©˘Ée˘á c˘ƒS°˘«˘∏˘á d˘à≤««º

e˘˘ói L˘˘ƒOI GCOGF˘˘¡˘˘É hGC¿ Pd∂ )GC… S°˘˘é˘π S°˘ƒA Gdü°˘ë˘á

hGdù°˘Óe˘á( b˘ó j˘æ˘à˘è Y˘æ˘¬ Rj˘ÉOI GCbù°˘É• GdàÉCeÚ, GCh ‘

H©†¢ G◊É’ä Qa†¢ Gdû°ôcá J¨£«á GŸƒDS°ù°áz.

hha˘˘≤˘˘É ŸÉ L˘˘ÉA ‘ J˘˘≤˘˘ôj˘˘ô M˘˘ƒGOç S°˘˘Óe˘˘á Gd˘©˘ª˘∏˘«˘Éä

)H˘«˘ÉfÉä Gd©ÉeÚ 1102h2102Gdü°˘ÉOQI Y˘ø G’–ÉO

Gd˘˘óh‹ Ÿæ˘˘à˘˘é˘˘» Gd˘˘æ˘˘Ø˘˘§ hGd˘˘¨˘˘ÉR(, RGO e˘˘©˘ó∫ G◊ƒGOç

GŸª«àá, d∏û°ôcÉä GŸû°ÉQcá H¡É ‘ 2102, Hæù°Ñá 72‘

GŸÉF˘˘á Y˘ø Gd˘©˘ÉΩ GŸÉV°˘». hY˘ÓhI Y˘∏˘≈ Pd∂, ” GEQL˘É´

haÉI 04eø Gd≤ƒI Gd©Ée∏á GE¤ GCS°ÑÉÜ eà©∏≤á HÉCMóGç

S°Óeá Gd©ª∏«Éä. hYÉOI eÉ jຠGdæ¶ô GE¤ Móç S°Óeá

Gd©ª∏«á Y∏≈ GCf¬ GfÑ©Éç ŸÉOI NÉQê Yø Gdù°«£ôI, hJµƒ¿

` ‘ Gd©ÉOI ` eÉOI S°Éeá GCh bÉH∏á dÓT°à©É∫, eø Yª∏«Éä

GCM˘ó GŸôGa˘≥. d˘¡˘òG c˘ãÒG e˘É J˘µ˘ƒ¿ e˘ã˘π g˘ò√ G’CMóGç

S°˘Ñ˘Ñ˘Ék ’CcÈ Gd˘à˘óGY˘«˘Éä hGd˘óeÉQ Gd¡ÉFπ; eãπ G’fØéÉQ

Gd˘˘˘ò… M˘˘˘óç ‘ H˘˘˘ôê M˘˘˘Ø˘˘˘ô H˘˘ôj˘˘àû¢ HÎhd˘˘«˘˘ƒΩ ‘ N˘˘∏˘˘«˘˘è

GŸµù°«∂.

hY∏≈ fëƒ GCS°ÉS°», cãÒG eÉ jµƒ¿ GCS°ƒGC G◊ƒGOç ‘

b˘˘˘˘£˘˘˘˘É´ Gd˘˘˘æ˘˘˘Ø˘˘˘§ hGd˘˘˘¨˘˘˘ÉR f˘˘˘ÉŒÉk Y˘˘˘ø N˘˘˘£˘˘˘ÉC ’CM˘˘˘ó G’Ca˘˘˘ôGO

Gd©Ée∏Ú ‘ GŸû°ôh´. hbó ” GS°à©ôGV¢ gòG GŸƒV°ƒ´ ‘

Gd˘˘à˘˘≤˘˘ôj˘˘ô Rj˘˘ÉOI Gd˘˘µ˘˘Ø˘˘ÉAI Gd˘˘àû°˘˘¨˘˘«˘˘∏˘˘«˘á hGEf˘à˘ÉL˘«˘á Gd˘≤˘ƒi

Gd˘˘©˘˘Ée˘˘∏˘á H˘óh¿ Gd˘à˘ÉCKÒ Y˘∏˘≈ Gdù°˘Óe˘á - g˘π g˘ò√ J˘©˘àÈ

)fÒaÉfÉ( d∏ë≤ƒ∫ GdÑëôjá?z Gdò… GCYó√ S°à«∞ GEd«ƒä,

GCM˘˘ó NÈGA S°˘˘Óe˘á Gd˘©˘ª˘∏˘«˘Éä Ÿƒa˘ô H˘ôGe˘è GŸƒDS°ù°˘Éä

تالــــــيلحت

طسوا قرشلا - ةيطفنلا ةرشنلا

سداسلا ددـعــلا

ةيرشبلا ءاطخا ىلع بلغتلاو ةيليغشتلا ةمالسلا

jéÖ Y∏≈ Gdû°ôcÉä GEOQG∑ GŸû°µÓä Gdà» Jæû°ÉC Yæó Gd©ªπ e™ bƒI YÉe∏á eà©óOI G÷æù°«Éä

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راــــــــــــــبخأطسو#ا قرشلا - ةيطفنلا ةرشنلا

سداسلا ددـعــلا

:لامعا لاجر ةركفم

............................................................................................................................................................................................................ لوا نيرشت/ربوتكأ

مادرتسمأ............................................................................................................روشفو#ا ةقاط ضرعم............٩٢ ـ٨٢

..................................................................................................................................................................................... يناثلا نيرشت/ربمفونليبجلا ......................... ةيساس#ا تاعانصلل ةيدوعسلا ةكرشلل ينقتلا عامتجالا............٥ ـ٣

يبظوبأ .................................................................................. ةءافكلاو ةمالسلل ”وتيبوأ“ رمتؤم............ ربمفون٤يبظوبأ.............٤١٠٢ كـبيدأ ـ لورــتبلل يـلودــلا يـبظوبأ ضرعمو رـمتؤم.............٣١ ـ٠١يبد................................................................................. زاغلاو طفنلل ةيرشبلا دراوملا ىقتلم.............٥٢ ـ٣٢مامدلا....................................٤١٠٢ ـ زاغلاو طفنلل يدوعسلا ضرعملا.............٦٢ ـ٤٢

......................................................................................................................................................................................... لوا نوناك/ربمسيدةرصبلا............................................................................................................................. زاغلاو طفنلل ةرصبلا ضرعم.............٧ ـ٤يبد ................................................................................................... ماخلا طفنلل طسو#ا قرشلا ةمق.............٠١ ـ٨

hb©â eü°ô bôV°Ék H≤«ªá 005e∏«ƒ¿ Oh’Q GCeôjµ»

e™ GdÑæ∂ Gdóh‹ dàƒaÒ Gd¨ÉR Gd£Ñ«©» d∏ªæÉR∫ ‘

eü°ô.

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YÉeÉ, e™ aÎI S°ªÉì ŸóI Nªù°á GCYƒGΩ.

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Hû°˘µ˘π GCcÈ, e˘≤˘ÉQf˘á Hû°˘ôGA GCf˘ÉH˘«Ö Gd˘¨˘ÉR GŸù°É∫z.

hJû°ªπ GÙضá G◊Éd«á d∏Ñæ∂ Gdóh‹ ‘ eü°ô 52

eû°˘˘ôhY˘˘É H˘˘ÉEL˘˘ª˘É‹ J˘©˘¡˘ó H˘≤˘«˘ª˘á 9^4e˘˘∏˘«˘ÉQ Oh’Q

GCeôjµ».

اـــضرـــق عـــــقوـت رـــــــصمرالود نوـيلم٠٠٥ ةـــميقب

يلودلا كنبلا عم

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eü°ÉQ± ‘ eÉjƒ/GCjÉQ 4102, hPd∂ dઃjπ YóI eû°ôhYÉä Jû°ªπ N£á JƒS°«™ d∏ªü°ØÉI GÿÉU°á H¡É ‘ U°ëÉQ.

h‘ Gdƒbâ fØù°¬, J GCj†°É Gdû°ôcá Gd≤ÉH†°á d∏µ¡ôHÉA, hg» Gdû°ôcá Gd≤ÉH†°á ÷ª«™ T°ôcÉä Gdµ¡ôHÉA ‘

Gdù°∏£æá, dõjÉOI 1^2e∏«ÉQ Oh’Q GCeôjµ» eø GEU°óGQ S°æóGä Hë∏ƒ∫ Gdæü°∞ G’Ch∫ eø 5102, hbÉeâ HÉdà©Ébó

e™ Hæ∂ L» H» eƒQLÉ¿, hHæ∂ eù°≤§ dµ» j≤óeÉ d¡É G’S°àû°ÉQGä GÿÉU°á HÉÿ«ÉQGä GŸÉd«á.

دامتعا ليهست ةيقافتا عقوت ةينامعلا طفنـلا رالود رايلم١^٥٨ ةميقب ددجتم

Gd≤ôV¢ S°«ù°àîóΩ ‘ G’CZôGV¢ GŸà©∏≤á HÉS°ÎGJ«é«á Gd檃 dû°ôcá Gdæا Gd©ªÉf«á

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Pcô GBNô J≤ôjô T°¡ô… d∏ƒcÉdá Gdóhd«á d∏£Ébá GC¿ GCS°©ÉQ Gdæا bó T°¡óä GfîØÉV°Ék

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còd∂ GCV°É± Gdóh’Q G’Ceôjµ» ` Gd≤ƒ… ` eõjóGk eø Gd†°¨§, ‡É L©π Gdæا GCcÌ

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Y∏≈ Gdæا GÿÉΩ, G’CV°©∞ Yø GŸàƒb™, ‘ GChQhHÉ hGBS°«É.

hbÉ∫ J≤ôjô GdƒcÉdá Gdóhd«á d∏£Ébá GE¿ GBNô G’EMü°ÉF«Éä GCX¡ôä H§A RjÉOI Gd£∏Ö

GE¤ GCbπ eø 005GCd∞ Hôe«π ‘ Gd«ƒΩ S°æƒjÉ ‘ GdôH™ GdãÉÊ eø 4102, hPd∂ d∏ªôI

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Gdù°©ƒOjá GCbπ eø 7eÓjÚ Hôe«π jƒe«Ék Y∏≈ eóGQ G’CT°¡ô G’CQH©á GŸÉV°«á, hgƒ eÉ

j˘˘©˘˘ó GCOf˘˘≈ eù°˘˘à˘˘ƒi d˘˘¡˘É e˘æ˘ò S°˘Ñ˘à˘ªÈ/GCj˘∏˘ƒ∫ 1102. a˘˘˘≤˘˘˘ó T°˘˘˘¡˘˘óä Gdü°˘˘ÉOQGä GE¤

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HõjÉOJ¡É ’CeôjµÉ Gdû°ªÉd«á, H«æªÉ T°¡óä G’CS°©ÉQ GÿÉU°á HÉBS°«É GfîØÉV°É, hgƒ eÉ

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سداسلا ددـعــلا

راــــــــــــــبخأطسوا قرشلا - ةيطفنلا ةرشنلا

بلطلا ةدايز ءطبو تادادم"ا رفاوت ءازإ طفنلا راعسأ ضافخنا ةدايز

ليوأ نوـجاردو ةــقاــطلـل تــيوـكـلايقارع رئب يف طفنلا نافشتكت

GCY∏æâ T°ôcàÉ Gdµƒjâ d∏£Ébá hOQGLƒ¿ GChjπ Yø Gcàû°Éa¡ªÉ dÑÄô Gdæا Gd©ôGb»

GdÈ… a«ëÉA-1. hha≤É dÑ«É¿ U°ÉOQ Yø Gdû°ôcàÚ, j≤™ GdÑÄô T°ªÉ∫ GdÑü°ôI, hbó

GCfàè 0002Hôe«π jƒe«É eø Gdæا NÓ∫ GNàÑÉQ G’EfàÉê. hS°ƒ± JƒGU°π Gdû°ôcàÉ¿

G◊Øô ‘ GŸæ£≤á, hJ≤ƒeÉ¿ HÉELôGA GŸõjó eø G’NàÑÉQGä ‘ a«ëÉA-1e™ f¡Éjá

Gd©ÉΩ. hbÉdâ S°ÉQI GCcÈ, GdôF«ù¢ GdàæØ«ò… dû°ôcá Gdµƒjâ d∏£Ébá: gòG gƒ GCh∫

H˘Ä˘ô j˘à˘º M˘Ø˘ô√ ha˘≤˘É ◊ª˘∏˘á Gd˘à˘æ≤«Ö GŸƒS°©á Gı££á dójæÉ ‘ a«ëÉA-1, hjù°˘ôfÉ

GdàƒU°π GE¤ gòG G’càû°É± H¡ò√ Gdù°ôYá. hfƒGU°π GYà≤ÉOfÉ HÉC¿ gò√ GŸæ£≤á dój¡É

GEeµÉfÉä bƒjá ‘ Gdàæ≤«Ö, hfà£∏™ GE¤ Jù°¡«π N£á J≤««º dØ«ëÉA-1hfƒGU°π G◊Øô

eø GCLπ GCgóG± GS°àµû°É± GCNôiz. hbó GCY∏æâ T°ôcá Gdµƒjâ d∏£Ébá Yø GdàõGe¡É

HÉd©ªπ, NÓ∫ aÎI Gdàæ≤«Ö GŸÑóF«á, ŸóI Nªù°á GCYƒGΩ, hg» Jû°ªπ Jû°ªπ GERGdá

G’Cd¨ÉΩ, hG’NàÑÉQGä Gdù°«õe«á, hMØô HÄô GS°àµû°É‘ hGMó.

GEfàÉê Gdæا Gdù°©ƒO… Gfî؆¢ ‘ T°¡ô GCZù°£ù¢

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الشـــــــرق اوســــــط

تعنى بالنفط والغاز ومعالجة الهيدروكربون

القسم العربي

............................................................................................................................................................................................................................................................................راــبخأ

............................................................................................................................................................................................................................................................................... تاليلحت

................................................................................................................يزيلجن#ا مسقلا تايوتحم صخلم

RjÉOI GfîØÉV¢ GCS°©ÉQ Gdæا GERGA JƒGaô G’EeóGOGä hH§A RjÉOI Gd£∏Ö .....................,.............4

Gdµƒjâ d∏£Ébá hOQGLƒ¿ GChjπ Jµàû°ØÉ¿ Gdæا ‘ M≤π YôGb» ..............................................,.............4

eü°ô Jƒb™ bôV°Ék H≤«ªá 005e∏«ƒ¿ Oh’Q e™ GdÑæ∂ Gdóh‹ .,........,.........................................................7

Gdæا Gd©ªÉf«á Jƒb™ GJØÉb«á Jù°¡«π GYàªÉO eàéóO H≤«ªá 58^1e∏«ÉQ Oh’Q .,...................7

Gdù°Óeá Gdàû°¨«∏«á hGdà¨∏Ö Y∏≈ G’CN£ÉA GdÑû°ôjá ..,........................................................................................01

.لاسملا يعيبطلا زاغلا ،ةيدوعسلا وكمارأو ةيدوعسلا ةيبرعلا ةكلمملا:ةصاخ ريراقت

......................................................................................................................................................................................................................................................................................................................................................

.طفنلل ززعملا جارختسالا ،ةئيبلاو ةمالسلاو ةحصلا ،نيلماعلاب ظافتحالاو فيظوتلا:تاعالطتسا

......................................................................................................................................................................................................................................................................................................................................................

.تايلمعلا ةتمتأ ،تامامصلا ،رفحلا جاربأ ديدجت ،تافثكملا:ايجولونكت

......................................................................................................................................................................................................................................................................................................................................................

.ةيمقرلا طفنلا لوقح:تامولعملا ايجولونكتو تالاصتالا

Company ......................................PageABB Automation L.L.C. ............................105ABCO Middle East FZE ..............................46AES Arabia Ltd. ............................................53Al Khorayef Group ......................................27ALAA Industrial Equipment Factory ......78Alcatraz Interlocks BV................................69All World Exhibitions................................110AlMansoori Specialized Engineering ....71Ansell Healthcare-Middle East ................23Aveva Solutions Limited............................57BAPCO ............................................................17Bauer Kompressoren GCC FZE ................31BGH Edelstahlwerke GmbH......................59Bredero Shaw Middle East Ltd.................13CGG Services (SA) UAE ..............................81CompAir Middle East ..............................119Derrick Services (UK) Ltd. (DSL) ..............63Dialight............................................................33DMG World Media Dubai Ltd. (ADIPEC 2014) ........................................103DMI International ........................................87DMS Global WLL........................................107Dresser Al Rushaid Valve & Instr. Co. Ltd. ..........................................32Emerson Process Management ................7Euroblast Middle East L.L.C.......................74Europoles Middle East L.L.C. ....................91Expotim International Fair Org. Inc (Basra Oil & Gas) ......................99Ferguson Group Ltd. ....................................87

Geyad for Industry and Contracting Co. Ltd...................................56Global Pipe Company ................................43Haimo International FZE............................91Hart BV............................................................68Hempel Paints Bahrain ..............................73Hi-Force Ltd. ..................................................25Hydratight Ltd. ..............................................33IFP Training & Consulting Middle East SPC........................................55Inmarco Industries FZC..............................82Inova Geophysical Equipment Limited ..................................97International Exhibition Services SRL(SAOGE 2014) ..........................................115JESCO (Jubail Energy Services Co.) ........29Jotun Paints UAE Ltd. (L.L.C.) ......................5Kaeser Kompressoren FZE ........................75Kohler Power Systems ..............................65Lamprell Energy Limited............................19LISEGA Arabia Ltd. Co.................................39MABI AG ........................................................89Magnetrol International N.V. ....................37Marelli Motori SPA ......................................79Marine Services Co. Ltd. ............................87Metscco Heavy Steel Industries Co. Ltd. ....................................35National Pipe Co. Ltd. ................................86Nexans ............................................................21OKI Europe Limited ....................................77Oman Cement Company ..........................93

Parker Middle East FZE..............................95Raccortubi Middle East FZE......................61Reed Exhibitions FZ L.L.C. (WFES 2015) ............................................113Ruth's Chris Steak House (Fine Dining Ltd.) ....................................116SABIC ..............................................................49Sabin Metal Corporation............................47Saga PCE Pte Ltd. ........................................45Saudi Leather Industries Company Ltd. ............................................67Saudi Power Transformers Company (SPTC)......................................101Schlumberger Oilfield Mktg Comms........2Schlumberger Technical Services Inc....11Shree Steel Overseas FZCO......................76Spina Group Srl ............................................50Starlink Oilfield Supplies & Services DMCC ........................................9Sulzer Pumps Middle East ........................58Suraj Limited ................................................51T.D. Williamson, Inc. ................................109Top Oilfield Industries Ltd. FZC..................9Tratos Cavi S.p.A. ......................................117UL ME FZCO ..................................................41Unique Maritime Group FZC ....................48VF Imagewear ..............................................83VingCard Elsafe (Dubai)..............................60Ward Leonard Electric Company, Inc.....85Western Well Tools ....................................55

ADVERTISERS INDEX

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تاــــــجرد لضفأ 8إ لوصوـــــــلاعـقوملا 7 ةـمالسلاو ةــحصلا

تاكرشل رمتسملا حافـكـلا وـه .زاغلاو طفنلا

نع رابخا رخآ 8إ ةفاض&اب اذهةقطنم 7 زاغلاو طفنلا عاطق .طسوا قرشلا

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