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Oil & Gas Middle East - Jan 2010
Oil & Gas Middle East - Jan 2010 - ITP Business
NEWS, DATA AND ANALYSIS FOR THE MIDDLE EAST'S ENERGY PROFESSIONALS An ITP Business Publication, Licensed by International Media Production Zone January 2010 � Vol. 6 Issue 1 CRACKING UPSTREAM BIDS Industry leaders on tackling the O&G barriers to entry UNLOCKING POTENTIAL Mid East drive for Schlumberger's consultancy business SKY'S THE LIMIT Rope access industry is rolling out services which will save you time and money FULL IPTC SPECIAL REPORT - DOHA TALKS UP 2010 OPPORTUNITIES ABOUND IN MIDDLE EAST GAS DEVELOPMENTS, ACCORDING TO NOC LEADERS An ITP Business Publication Megarme rope access team working in Qatar. CONTENTS JANUARY 2010 24 18 *Mark of Schlumberger. � 2009 Schlumberger. 09-FE-0232 DeepLook-EM See Deeper into your Reservoir 31 15 IRAQ WINNERS Comprehensive list of all the winners from the second round of bidding for Iraq's lucrative oil and gas field development projects. DeepLook-EM* crosswell reservoir monitoring revealed significant bypassed reserves in faulted deltaic sands for China Petroleum and Chemical Corporation. Directly measure formation resistivity between two wells up to 1,000 m [3,280 ft] apart. DeepLook-EM reservoir-scale resistivity images help you identify and predict fluid distribution and movement to Q Q Q 24 ROPE ACCESS How are rope access specialists servicing the upstream sector? Oil & Gas Middle East braves great heights to find out. 38 LOOKING AHEAD Momentum Engineering brings back an old networking tradition for oil and gas professionals in the region. 16 QATAR'S FUTURE A look at the future for Qatar following Wintershall's expansion in the country and an update on the massive North Field. 28 BUSINESS PLANNING Schlumberger Business Consultancy on the constant need for change in the current environment for oil and gas businesses. 48 FACE TO FACE Norm Gilsdorf of Honeywell Process Solutions on how to lead during a crisis. monitor injection fluid fronts evaluate sweep efficiency and identify bypassed pay optimize reservoir simulation. 18 IPTC REVIEW Oil & Gas Middle East reports on all the hot topics from the IPTC conference in Doha last month. 31 SAUDI UPDATE An update on all the top projects underway and being planned in the Kingdom. REGULARS 2 WEB HIGHLIGHTS 4 COMMENT 7 REGIONAL NEWS With DeepLook-EM crosswell images, you'll have a deeper understanding of your reservoir. www.slb.com/deeplook 22 BREAKING THROUGH Roundtable discussion featuring top industry figures on how a company can best break into the sector. 36 DRILLING JACKS Looking closer at the technology behind jacking gearboxes for jack-up drilling rigs. 15 NEWS ANALYSIS 41 PROJECTS www.arabianoilandgas.com January 2010 Oil&Gas Middle East 1 WEB HIGHLIGHTS The online home of: ONLINE SPECIAL REPORT Getty Images MOST POPULAR NEWS 1 KBR awarded contract by Aramco Rabigh JV 2 US$9bn Manifa given 2015 completion date by Aramco 3 Iraq oil contracts: The winners 4 Dodsal lowest bidder for $60mn GASCO pipeline job 5 ADNOC JV postpones sulphur decision at $10bn Shah EDITOR'S CHOICE The ten largest oilfield tech firms ArabianOilandGas.com has decided to salute the companies who spend billions of dollars, as well as millions of man-hours, on making the life of an average oil and gas worker more productive, safer and easier. What is interesting about the list is that the majority of the companies are headquartered in Houston. It is obvious that developing innovative new technologies as well as manufacturing the more common or garden oil & gas products is not something that any old Johnny-come-lately company can do. BREAKING NEWS AND VIEWS FIRST ARAMCO AWARDS SEISMIC CONTRACTS Getty Images Getty Images TOTAL, REPSOL & CNOOC WIN ALGERIA LICENCES State-owned Algerian oil Sonatrach has announced the award of exploration and production contracts for three areas in a licensing round in the North African country. ArabianOilandGas.com SHELL AWARDED SOUTH AFRICAN PERMIT Shell has announced that it has won a Technical Cooperation Permit for a oneyear study to determine the hydrocarbon potential in parts of the Karoo Basin in central South Africa. ArabianOilandGas.com WHAT COPENHAGEN MEANS FOR ENERGY PRODUCERS Peter Ward covers the news, views and fallout of the Danish climate conference in December. ArabianOilandGas.com SPOT POLL WHICH CONTRACTOR HAD THE BEST 2009? Argas has been awarded two contracts worth a US$373 million to conduct offshore seismic surveys for state-owned hydrocarbons giant Saudi Aramco. ArabianOilandGas.com 55.6 % Petrofac 33.3 % Samsung Engineering 11.1 % Technip SABIC OBJECTS TO ANTI-DUMPING DUTIES SABIC and Advanced Petrochemicals Company have announced the submission of their objections to anti-dumping duties to India's dumping committee. ArabianOilandGas.com 2 Oil&Gas Middle East January 2010 www.arabianoilandgas.com Safer, Quieter, Better Less in-water exposure, reduced noise from external devices and improved streamer control make our Nautilus� Vessels safer, quieter and better. cggveritas.com/nautilus Nautilus is a registered trademark of Sercel. COMMENT Ignore the biofools The next 30 years of energy starts with oil and gas Registered at Dubai Media City PO Box 500024, Dubai, UAE Tel: 00 971 4 210 8000, Fax: 00 971 4 210 8080 Web: www.itp.com Offices in Dubai & London ITP Business Publishing Ltd CEO Walid Akawi Managing Director Neil Davies Deputy Managing Director Matthew Southwell Editorial Director David Ingham VP Sales Wayne Lowery Publishing Director Jason Bowman Editorial Energy Group Editor Daniel Canty Tel: +971 4 435 6257 email: firstname.lastname@example.com Senior Energy Writer Peter Ward Tel: +971 4 435 6436 email: email@example.com Contributors Ventures, Kevin Baxter, Edward Attwood Advertising Commercial Director Jude Slann Tel: +971 4 4356348 email: firstname.lastname@example.com Sales Manager David Wheeler Tel: +971 4 4356376 email: firstname.lastname@example.com Studio Group Art Editor Daniel Prescott Designer Lucy McMurray Photography Head of Photography Sevag Davidian Chief Photographer Khatuna Khutsishvili Senior Photographers Efraim Evidor, Thanos Lazopoulos Staff Photographers Isidora Bojovic, George Dipin, Lyubov Galushko, Jovana Obradovic, Ruel Pableo, Rajesh Raghav Experts agree that natural gas alone can deliver the necessary carbon emissions improvements. he biggest gains for cleaner energy and lower emissions will come not from algal blooms, but from efficient harnessing of the energy in oil and gas. As industry leaders and technology firms converge on Abu Dhabi in January for the World Future Energy Summit the temptation will be to wax lyrical about the virtues of solar, wind and biofuels as solutions to the world's energy and climate problems. Great leaps are being made in the clean and renewable energy sector, and the leading role Abu Dhabi is playing by funding the world's first carbon neutral city, Masdar, should not be downplayed. If ever there was a time for eco-trumpet blowing, then the WFES is indeed that week. However, given that the world is facing a huge uphill energy challenge in the next 20 years, upstream and integrated oil and gas companies alike should use the summit to explore the more practical, and much more significant, technology gains in carbon capture and sequestration and cleaner burning fuels. Shell Qatar should be centre stage for its Pearl GTL project. With five out of the world's six billion people still without Production & Distribution Group Production Manager Kyle Smith Production Manager Eleanor Zwanepoel Production Coordinator Devaprakash Managing Picture Editor Patrick Littlejohn Image Retoucher Emmalyn Robles Distribution Manager Karima Ashwell Distribution Executive Nada Al Alami Circulation Head of Circulation & Database Gaurav Gulati Marketing Head of Marketing Daniel Fewtrell ITP Digital Director Peter Conmy ITP Group Chairman Andrew Neil Managing Director Robert Serafin Finance Director Toby Jay Spencer-Davies Board of Directors K.M. Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin Circulation Customer Service Tel: +971 4 435 6000 Certain images in this issue are available for purchase. Please contact email@example.com for further details or visit www.itpimages.com Printed by Color Lines Press Subscribe online at www.itp.com/subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader's particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review. T reliable and cheap energy it is all too easy for the lucky few to extol the merits of renewables and chastise those who turn oil and gas into energy. The truth is that achieving major reductions in carbon emissions cannot be achieved in the short and medium term without a bigger commitment to gas. Asia and South America's coming energy demand boom aside, oil's many derivatives, from plastics to lubricants cannot be economically replaced, (though synthetics are getting better), and nor will the world's aeroplanes, cars and ships be whizzing around the globe after a thirtyminute recharge anytime soon. The European supermajors have been extolling their green and clean credentials for years now, and the US giants are mobilising their PR machine to the same end now. Middle Eastern firms must seize 2010 as an opportunity be loud and proud of their gas developments, and what better platform than the WFES? See you there. Daniel Canty, Editor E-mail: email@example.com BPA Worldwide Circulation Statement Average Qualified Circulation: 7,188 (Jan - June 2009) To subscribe to the magazine, please visit: www.ArabianOilandGas.com 4 Oil&Gas Middle East January 2010 Published by and � 2010 ITP Business Publishing, a member of the ITP Publishing Group Ltd. Registered in the B.V.I. under Company Registration number 1402846. www.arabianoilandgas.com CONFORMS TO THE STRICTEST COMPLIANCE STANDARDS. AND THE PALM OF YOUR HAND. Our name is synonymous with trustworthy protection in the most hazardous environments. And Prot�g� is no different. It's the only detector with hourglass-shape ergonomics. And with an intuitive interface and tough, robust construction, Prot�g� provides more than safety from gases. It provides pure confidence. Contact your local sales representative for more information. Scott Health and Safety Ltd. Pimbo Rd., West Pimbo Skelmersdale Lancashire WN8 9RA Tel. +44 (01) 1695 711711 Scott Health and Safety Ltd. P.O. Box 2617 Abu Dhabi, UAE 971 (02) 445 2793 www.scotthealthsafety.com �2009. All rights reserved. LEAD NEWS ENOC's Dragon bid rejected The 455p a share offer has been rejected by shareholders at a London meeting Shareholders of Dragon Oil have rejected ENOC's bid to buy out the remaining shares of the company it did not previously own. The offer of GBP 4.55 a share failed to get approval from the required 75% of shares voted at a London meeting. ENOC itself was not allowed to vote with its shares, meaning a total of 12.1% of shareholders were able to block the deal by rejecting the offer. Previously, the largest of the major shareholders Baillie Gifford, Noster Capital and Carmignac Gestion, had announced they would be rejecting the offer. ENOC is now unable to sell its shares in the company until 2011. The result will come as a blow to ENOC's ambitions to become an integrated upstream and downstream oil company and means the company will not gain access to Dragon's US$1 billion cash pile. Small shareholders at the meeting berated directors for the apparent lack of activity in using the cash. In response to the rejection of the much discussed offer, government-owned ENOC has ENOC still owns a controlling share of Dragon Oil, which has the majority of its interests in Turkmenistan (pictured). $1 billion The reported cash pile on which Dragon Oil is sitting www.arabianoilandgas.com declared itself a "committed long term majority shareholder in Dragon Oil". In a statement made to ArabianOilandGas.com, the firm revealed: "We acknowledge that the deal has not been voted through. We were confident of a successful outcome, particularly following the recommendation by the Independent Committee. We also noted that RiskMetrics Group had recommended to shareholders to vote for the recommended transaction and offer price." ENOC also revealed the firm was under no pressure to sell its current shares in Dragon. "The wider economic back-drop in Dubai has not affected our ability to complete this transaction," it stated. In the wake of the financial news emananting from Dubai and London in December, companies in the United Arab Emirates were re-evaluated by Moody's last month, largely on account of Dubai World's statement that it had requested a standstill on outstanding loans. Despite this, the general mood of companies in the oil and gas sector remains upbeat. Dolphin Energy released the following statement on the matter. "Moody's is reviewing UAE and Abu Dhabi GRI ratings for a possible downgrade. Dolphin Energy will fully cooperate with Moody's to conclude the review as soon as possible. Given our sound business model and our long term contracts with our customers, we are confident that Dolphin Energy is well placed. Our day to day operations will be unaffected during this time." ENOC was cagey about the prospects of another bid for the remaining Dragon Oil shares it does not own: "ENOC cannot comment as to whether or not it may entertain making an offer to acquire the outstanding shares in Dragon Oil." ENOC also refused to comment on its future expansion and acquisition plans, following the rejection of the bid. Saeed Khoory, group CEO of ENOC. January 2010 Oil&Gas Middle East 7 REGIONAL NEWS Kuwait's $87.6bn spending plan Oil Minister sets out 20-year plan at conference held in Kuwait City in December The head of Kuwait's oil indus- hydrocarbons assets over the try has revealed that the Gulf- next 20 years. Bloomberg reported that state plans to spend US$87.6 billion on developing the country's Oil Minister Sheikh Ahmed Getty Images Sheikh Ahmed Al-Sabah, Kuwait Oil Minister, has revealed the ambitious spending plans. Al-Sabah told a conference in Kuwait City that the money will be spent "from today till 2030" and that the figure will cover both the construction of new facilities as well as maintenance and services. Kuwait also has plans to revive Al Zour, the $15 billion grassroots refinery project, planned with a capacity of 615 000 barrels per day. The massive refinery project was cancelled earlier this year due to political in-fighting and concerns over irregularities regarding the awarding of certain contracts. State refiner Kuwait National Petroleum Co (KNPC) awarded deals worth US $8.4 billion to Japan's JGC Corp, South Korea's GS Engineering and Construction Corp, SK Energy and Daelim Industrial in 2008. In September, Kuwait received its first commercial cargo at its new LNG terminal. The opening of the terminal had followed months of delays which had caused a number of tankers to be moored off the coast of the Gulf state. $15 billion The cost of the Al Zour grassroots refinery project, which is set to be revived. Petrofac announces impressive end-of-year profits for 2009 The UK-based oil and gas contractor Petrofac has announced that it is confident of delivering an after-tax profit of US$330 million for the year ending December 31, 2009. In a statement from the company, it said that the profit, which represents year-onyear growth of around 25%, is the result of "our success in securing new contracts during the year and the continued good progress across the majority of our businesses". "In a year that has been very challenging for the oil and gas service industry we are delighted with our performance and the record revenue and profits we expect to deliver," Ayman Asfari, group chief executive of Petrofac said. "During 2009 our differentiated and competitive offering has helped us secure more than $6 billion of new contracts in the Middle East, North Africa and, most recently, in the UK's North Sea. "The high level of backlog we are now carrying gives us excellent revenue visibility for next year and beyond." "Our strong performance has enabled us to continue to invest in the business. I am pleased that we have been able to attract further high calibre personnel to Petrofac. We look forward to the coming year with considerable confidence," he added. The statement also said that the group's backlog is expected to be approximately $7.8 billion at the end of the year, comprising approximately $6.2 billion from Engineering & Construction and approximately $1.6 billion across the other business units. Ayman Asfari, group chief executive of Petrofac was delighted with the firm's results. 8 Oil&Gas Middle East January 2010 www.arabianoilandgas.com REGIONAL NEWS 2015 target for Manifa Oilfield will have a 900 000 bpd capacity, Saudi Aramco reveals The hydrocarbons giant Saudi Aramco has named 2015 as the completion date for Manifa, the US$9 billion offshore oil project it is currently developing in the Kingdom of Saudi Arabia. In a statement, the company said that Manifa, which will have a production capacity of 900 000 barrels per day (bpd) of Arabian Heavy crude oil plus 65 000 bpd of condensate, will be completed in 2015, which represents a delay of around two years on previous projections from the firm. "World demand for energy, matched with new refining capabilities, led the company to plan operations at Manifa that will add 900 000 barrels per day in production capacity of heavy crude oil," the statement said. "As engineers considered effective and efficient ways to produce the oil from the field, Saudi Aramco commissioned a Getty Images HIGHLIGHTS Foster Wheeler has won two contracts. The Manifa project will have a production capacity of 900,000 barrels per day. comprehensive environmental impact assessment, with expert evaluation by authoritative international institutions," it added. Aramco also said that the causeway and drilling islands system that will make up the project is 60% complete with the offshore jackets being 100% complete. There will be 41 kilo- metres of causeway and 27 drilling islands in total at the end of the project. A central processing facility being built onshore will also process 1 billion cubic feet per day (cfd) of natural gas. Turn to page 31 for a full Saudi Arabia project update. Foster Wheeler has announced that it has been awarded two separate steam generator contracts by Tecnicas Reunidas Power for the Manifa Cogeneration and Main Substations Project in Saudi Arabia. In a statement the company said that one contract award is for the design and supply of two heat recovery steam generators (HRSG), while the other is for the design and supply of two packagetype steam generators. Specialist Services announced in December it has been awarded a contract for the engineering, procurement and project management (EPPM) of 150-man living quarters, switch-gear and turbine generator modules for the ONGC MHN Platform Project in India. In a statement the company said that the contract was awarded by Larsen & Toubro Limited India and the modules are intended to replace the old BHN Process Platform which was destroyed in the Mumbai High North field fire in 2005. Last month, the Shell JV Petroleum Development Oman (PDO) confirmed the award an engineering, construction and procurement (EPC) contract for the Saih Nihayda gas compression project to South Korea's GS Engineering and Construction. KBR wins major Rabigh engineering contract The US-based engineering company KBR has announced that it has been awarded a contract by Saudi Aramco and Sumitomo Chemical at the companies' joint Rabigh II Project in the KSA. The scope of works on the contract, the value of which was not disclosed, will see KBR provide basic engineering and related services for its phenol technology in support of what will be a detailed feasibility study for the project. "KBR will provide a basic engineering package and related services to facilitate the feasibility study, a joint initiative between Saudi Aramco and Sumitomo," a statement released by KBR said. "The study is designed to evaluate the viability of investment in the Rabigh II Project, which includes an ethane cracker, a new aromatics complex and various petrochemical units including phenol and acetone," it added. The project is planned as a major expansion of the existing petroleum refining and petrochemical production complex in Rabigh, Saudi Arabia. 60K Source: Petro Rabigh BPD Petro Rabigh gasoline production, out of 400 000 bpd refining capacity www.arabianoilandgas.com January 2010 Oil&Gas Middle East 9 REGIONAL NEWS EVENTS SAUDI OIL AND GAS 2010 17-20 January 2010 Conference and Exhibition Riyadh, Saudi Arabia Technology is talked up Al-Hamli calls for further investment in oil and gas technology Getty Images WORLD FUTURE ENERGY SUMMIT 18-21 January 2010 Abu Dhabi, UAE O&G MAINTENANCE TECHNOLOGY/PIPELINE REHABILITATION & MAINTENANCE 2010 18-20 January 2010 Exhibition � Manama, Bahrain INTERSEC January 17-19 2010 Exhibition and conference, Dubai, UAE OIL AND GAS INDIA CONFERENCE AND EXHIBITION (OGIC) January 20 2010 Renaissance Mumbai Hotel, Mumbai, India - conference Mohamed Al-Hamli, UAE Energy Minister, would like to see a greater investment in technology coming from the oil and gas sector. DEEP GAS CONFERENCE AND EXHIBITION (DGAS) January 24 2010 The Gulf Hotel, Manama, Upstream conference OILTECH BAKU 23-24 February 2010 Exhibition and conference � Baku, Azerbaijan SOUR OIL AND GAS ADVANCED TECHNOLOGY (SOGAT) 28 March � 1 April 2010 Conference � Abu Dhabi, UAE The Minister of Energy for the UAE has urged the hydrocarbons industry to continue investing in new technologies to further enhance recovery from the world's reservoirs. Speaking at the International Petroleum Technology Conference (IPTC) in Doha, Qatar, Mohamed Al-Hamli called for "integrated efforts and synergy between the producing and consuming countries, and the companies which conduct research and develop production technology". Hamli also cited the massive improvements made to recovery percentages in recent years. "We should not forget that the percentage of oil production from reserves did not exceed 35% in the past. Whereas, by virtue of the modern technology, it has gone up to 50%-60%, and according to many experts, it may even reach 80%, if current technology is developed further," Hamli said. "The fact that half of the used energy is lost during transforming to useful forms of energy, would make us perceive the major and vital role technology can play in improving usage as well as production efficiency," he added. Hamli also called on oil producing countries to assign a significant part of their revenues to invest in research covering exploration issues, and in establishing technology which is capable of ensuring energy supplies remain constant to consuming countries. "The world puts almost complete reliance on fossil energy, which represents 80% of the energy in use today. We have to address major challenges. This fact requires managing science and technology to make current energy more favourable for the environment, and to develop alternative energy to add more economic value to energy and to become safer and more sustainable," he said. 60% Approximate percentage of oil production from reserves currently. It is hoped this figure can reach 80% through the use of technology. 10 Oil&Gas Middle East January 2010 www.arabianoilandgas.com REGIONAL NEWS Chevron reveals $21.6bn plan US firm announces bold spending plans for 2010 - only down 5% from last year The US supermajor Chevron Corporation has announced a US$21.6 billion capital and exploratory spending programme for 2010. In a statement, the company said that the budget is a 5% decrease from projected 2009 expenditures and $1.6 billion of expenditures by affiliates, which do not require cash outlays by Chevron's consolidated companies, is included. "Our company is certainly in a strong financial position," said chairman and CEO Dave O'Reilly. O'Reilly also said about 80% of the 2010 spending program is for upstream oil and gas exploration and production projects worldwide. Another 16% is associated with the company's downstream businesses that manufacture, transport and sell Getty Images $17.3 billion Total upstream spending Chevron is planning for 2010 - Representing 80% of total investment. Source: Chevron Dave O'Reilly, CEO of Chevron, reveals the firm is in a strong financial position. gasoline, diesel fuel and other refined products. "Much of our 2010 spending continues to be on large, multi- year projects consistent with our upstream growth strategies and on improving operating efficiency and reliability," O'Reilly added. Custom Reel Solutions Custom Engineering Capabilities Reelcraft's Capabilities Refueling/oil transfer reel 660' x 4" hose (201m x 102mm) 9 Built to your exact needs 9 Very few size and weight constraints 9 Special finishes/paint options 9 Various drive types 9 Wide range of pressures 9 Many unique options available 9 No minimum quantities Made in USA Marine grade expoxy finish 4" I.D. hose (102mm) Made in USA Middle East inquiries, please contact Thompson International: � +1-260-489-1685 or e-mail: email@example.com www.reelcraft.com www.arabianoilandgas.com Manufacturer of industrial grade hose, cord and cable reels January 2010 Oil&Gas Middle East 11 REGIONAL NEWS Oil demand set to rise again The president and CEO of Saudi Aramco has underlined the importance of hydrocarbons in meeting the global energy requirements of the next 20 years. Speaking while on a tour of Asia, Khalid Al-Falih said that despite the emergence of renewable energy, oil and gas would still be the major fuel source. "The developing economics of the world ... are at the heart of the International Energy Agency's forecast that world primaryenergy demand will increase," Al-Falih said. "The forecast estimates demand will grow by 40% by 2030 -- roughly 1.5 percent per year. And [the IEA forecast also estimates that] oil will remain President and CEO of Saudi Aramco Khalid Al-Falih sees oil as the top energy source. the single largest fuel in the energy mix." Al-Falih also said that while time, there will be attractive uses other forms of energy would for our hydrocarbons other than emerge, oil will still be used burning," Al-Falih said. "Saudi Aramco is moving its elsewhere and pointed to Saudi Arabia's ever-growing petro- hydrocarbon products deeper chemicals industry as proof of and deeper downstream into Yearly increase in demand for oil. petrochemicals and the many his point. Total demand is to increase 40% by 2030. "Ultimately, as renewables valuable products which are Source: IEA begin to displace petroleum over derived from them." Aramco brings Yanbu deadline forward A joint venture between the hydrocarbons giant Saudi Aramco and US supermajor ConocoPhillips has cut five days off the deadline date for bids to build the US$6 billion Yanbu oil refinery in the KSA. Reuters reported that bids for five engineering, procurement and construction (EPC) contracts on the 400,000 barrels per day facility have to be submitted by January 26 as opposed to the original date of January 31. "The last due date is January 26. As far as we are concerned, we have no problem in meeting the closing date," one bidder is quoted by Reuters as saying. The packages up for grabs include a coking unit, a crude facility, a gasoline unit, a hydrocracker and a tank farm. A contract for a solids unit at the facility has been set a February 28 deadline. All contracts will be awarded by May 2010 with a completion date set for March 1, 2014. 1.5% DILLINGER MIDDLE EAST FZE Sales & Marketing Office of DILLINGER H�TTE GTS, for direct Mill supply of all grades of STEEL PLATES & FABRICATED PRODUCTS, Eg. 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Mafraq, United Arab Emirates Tel: + 971 2 5825454 Fax: + 971 2 5825115 Email: firstname.lastname@example.com Doha, Qatar Tel: + 974 460 3899 Fax: + 974 460 3897 Email: email@example.com Dammam, Saudi Arabia Tel: + 966 383 02003 Fax: + 966 383 38040 Email: firstname.lastname@example.com Singapore Tel: + 65 67752411 Fax: + 65 67780026 Email: email@example.com Al Jaber Heavy Lift Member of Al Jaber Group www.ajhl.com REGIONAL NEWS Iraq oil auction: round two wins All the winners from the second round of bidding for Iraq's oil and gas contracts Officials in Iraq have said that the Gulf state could soon rival Saudi Arabia with regard to oil output after the second bidding round for oil contracts in the country was concluded. Most of the major oilfields were snapped up by international oil companies, with few fields that attracted no bids. "Iraq is a powerhouse in the region and it will regain its its rightful place," Foreign Minister Hoshiyar Zebari was reported by Reuters as saying. The absence of US oil companies from the winning bidders surprised many industry experts and appeared to contradict claims that American companies would end up being the major developers of Iraq's vast hydrocarbon reserves. Iraq's second round of bidding for oil projects took place last month and produced a larger number of awards than round one. Getty Images WINNERS WEST QURNA PHASE TWO Location: South Iraq. Won by: Lukoil (85%) & Statoil (15%). An as yet unnamed Iraq partner will be added at a later date with a 25% share taking Lukoil and Statoil 63.75% and 11.25% respectively. Scope: Reserves of 12.9 billion barrels. Winning consortium pledged to raise production to 1.8 million barrels per day (bpd) with a remuneration fee of $1.15 per barrel. Scope: Reserves of 4.1 billion barrels. Consortium pledged to increase production to 535 000 bpd over Location: Southern Iraq, near Iranian border. 13 years with a remuneration fee of $1.40 per barrel. Won by: Shell-led consortium with Petronas. Scope: Reserves of 12.58 billion barrels. Consortium to raise production to 1.8 million bpd over 10 years BADRA with a remuneration fee of $1.39 per barrel produced. Location: Eastern Iraq near Iranian border. Won by: Gazprom-led consortium with Turkey's TPAO, Korea's KOGAS and Petronas. GHARRAF Scope: Reserves of 109 million barrels. Winning Location: Southern Iraq. consortium pledged to raise production to 170,000 Won by: Petronas-led consortium with Japex. Scope: Reserves of 863 million barrels. Consortium bpd over seven years with a remuneration fee of $5.5 per barrel. pledged to increase production to 230 000 bpd over 13 years with a remuneration fee of $1.49 per barrel. MAJNOON QAYARA AND NAJMAH FIELDS Location: Northern Iraq near the city of Mosul. Won by: Sonangol (Angola) Scope: Reserves of 800 million and 858 million barrels respectively. Sonangol pledged to raise production to 120 000 and 110 000 bpd over nine years and will be paid $5 and $6 a barrel respectively. HALFAYA Location: Southern Iraq. Won by: China National Petroleum Corp.-led consortium with Petronas and Total. FIELDS WHICH FAILED TO ATTRACT BIDS Kifl, West Kifl, Merjan, Qamar, Gullabat, Naudman, Khashim al-Ammar and East Baghdad. Iraq's Oil Ministry said it would develop them alone. www.arabianoilandgas.com January 2010 Oil&Gas Middle East 15 NEWS ANALYSIS NEWS ANALYSIS Qatar's new gas deals Wintershall to drill offshore despite moratorium on North Field extension to 2014 ing, while Qatar is also likely to keep a margin for the possibility of domestic industrydriven demand growth. Recent quotes from Saad alKaabi, director of oil and gas ventures at state-owned Qatar Petroleum (QP)hinted at the direction that the country is taking. "If we go for grassroots projects, we'll have to set up new operating projects and we'll have new costs," al-Kaabi told Bloomberg. Despite this news, greenfield investment in the country is still going strong. The German oil and gas producer Wintershall used the International Petroleum Technology Conference (IPTC), held in Doha, Qatar, to announce that it is planning to expand its operations in Qatar and is the operator of three offshore gas field licences in the Gulf state. A director of Wintershall, Martin Bachmann, says that the blocks are located close to the massive North Field. "We are the largest exploration acreage holder in Qatar at this point in time. We won the blocks against very stiff competition and that is because it is one of the best prospects in Qatari waters," Bachmann said. The first exploration well in the Khuff formation of Block The moratorium on North Field development has been extended, but Wintershall netted three new offshore gas licenses in December. Qatar will not proceed with any new grassroots projects as its moratorium on further development of the North Field extends into 2014. The country is instead looking to save its reserves for the future, growing only through upgrades to existing projects or to meet an increase in domestic demand. Samuel Ciszuk, IHS Global Insight's Middle East energy analyst reveals the significance of the move: "Qatar has repeatedly extended its moratorium on new gas projects, with the latest news clearly underlining its dominant train of thought that its end-2010 presence in the global gas markets will be sufficient, bearing in mind the mega-field's longevity as well as other strategic concerns." "The news means that the North Field's time as a largescale investment destination has passed, with mainly the existing partners being allowed to monetise some additional reserves depending on the survey outcome, severely diminishing IOC growth pos- sibilities in the emirate going forward," Cizsuk explains. "The news is also bad for several neighbouring countries that woke up to their own gas shortages of late and were hoping for the construction of further Qatari pipelines in the future," he adds. Qatar is already the world's largest LNG producer and will have a 77 million-t/y capacity by late next year and even with new greenfield projects, 12 million t/y could still be added through debottleneck- 16 Oil&Gas Middle East January 2010 www.arabianoilandgas.com NEWS ANALYSIS 4N will be drilled offshore in 2010 with a second following soon after. Block 4N covers 544 square kilometers in water depths of around 70 metres. Bachmann said that Wintershall plans to invest around US$100 million on developing Block 4N alone. Wintershall is also operator for offshore Block 3, which was awarded in 2007. The block covers an area of 1666 square kilometers. Wintershall also operates the adjacent Block 11. Wintershall, a subsidiary of the German conglomerate BASF, also announced that it was planning to open an office in Abu Dhabi that would serve the whole region. There is a clear view that Qatar, despite apparently holding back on developments in the North Field, is still an attractive place for investors. Mohamed Al Sayed, chief executive officer of Al Shaheen Well Services reveals: "Qatar remains a very attractive market because it is not all just about oil. The gas market is far more stable largely because the projects and sales contracts are long-term ventures." GE is another firm which looks at Qatar as a key market. "Qatar has been a real success story for us. Its become a benchmark within GE Oil & Gas and when we look at moving into new areas we benchmark that against the Qatar experience we have had," explains Mohammad Ayoub, regional general manager for GE Oil & Gas. With ringing endorsements such as these, Qatar is looking at a bright future, with or without a moratorium. Mohammad Ayoub, GE Oil & Gas, says that Qatar experience for GE is unparalleled. www.arabianoilandgas.com January 2010 Oil&Gas Middle East 17 EVENT REPORT � IPTC Saad Al-Kaabi, director of oil and gas ventures at Qatar Petroleum. IPTC 2009 Higher investment in unconventional recovery projects and emerging natural gas opportunities dominated the Doha conference as 2009 drew to a close T he International Petroleum Technology Conference (IPTC) 2009 was held at the Sheraton Doha Resort and Convention Hotel in Doha, Qatar, last month and brought together industry professionals from around the globe to discuss the technological advancement of the hydrocarbons sector. The conference was opened by Sheikh Hamad Bin Khalifa AlThani, Emir of the State of Qatar and Abdullah Bin Hamad Al-Attiyah, the Qatari Deputy Prime Minister and Minister of Energy and Industry and the opening address was given by Mohammed Bin Dhaen Al Hamli, Minister of Energy for the UAE. Al Hamli spoke passionately about advances in oilfield technology which have resulted in oil production from fields rising from 35% to 50-60%. Al Hamli also called on the industry to ensure that young people were brought into the industry to overcome the many problems presented by an ageing oil and gas workforce. Speakers at the event included Rich Kruger of ExxonMobil, Saad Al-Kaabi from Qatar Petroleum, Ali Al-Jarwan, Abu Dhabi Marine Operating Company and Andrew Gould from Schlumberger. The conference programme focused on dissemination of new and current technology, best practices and the importance of the "value chain" and maximising asset value. The packed exhibitor hall played host to a number of high-profile oil and gas giants with Qatar Petroleum, Saudi Aramco, ADNOC, Kuwait Oil Company, Shell backed up by oilfield services providers including Schlumberger and Weatherford. DAY 1 The opening day brought major announcements from Qatar Petroleum, ExxonMobil and Schlumberger (see news), aside from the opening address from Al Hamli. The biggest news was reserved for Germany's 18 Oil&Gas Middle East January 2010 www.arabianoilandgas.com EVENT REPORT � IPTC upstream division of BASF, Wintershall. The company kicked off a lively event with the news it is planning to expand its operations in the Middle East and is the operator of three offshore gas field licences in Qatar. Speaking to Oil & Gas Middle East at IPTC, a director of Wintershall, Martin Bachmann, said that the blocks are located close to, but are not part of, the massive North Field. "We are the largest exploration acreage holder in Qatar at this point in time. We won the blocks against very stiff competition and that is because it is one of the best prospects in Qatari waters," Bachmann said. The first exploration well in the Khuff formation of Block 4N will be drilled offshore in 2010 with a second soon following. Block 4N covers 544 square kilometers in water depths of around 70 metres. Bachamann said that Wintershall plans to invest around US$100 million on developing Block 4N alone. The principal conference discussion points revolved around new global carbon management initiatives, footprint minimisation in drilling and completion and the latest technological developments in cleaner fuels. DAY 2 The second day of IPTC took a closer look at the natural gas industry and what opportunities were currently available to Gulf countries developing their liquefied natural gas (LNG) industries. Speaking ahead of the Copenhagen climate conference, there was a general consensus that natural gas would emerge as a real winning industry in 2010, as the desire to drop oil and coal in favour of cleaner burning gas was almost guaranteed to occur. The technical session panel of the day discussed the environmental advantages of LNG, a fuel source from hydrocarbons that produces far fewer emissions than oil or coal. Senior Ayyoub expects a similar level of drilling and workover activity to continue throughout 2010. CAUTIOUS AL SHAHEEN PREDICTS STABILITY IN 2010 Khaled Ayyoub general manager at Al-Shaheen Well Services Company says $100 million revenues reflect a tough market What brings you to IPTC? Al-Shaheen has been established since June 2008, but Weatherford has been here for a long time. As a joint venture between a subsidiary of Qatar Petroleum and Weatherford, we have come to IPTC to support what they are trying to achieve here. Has 2009 been a tough year in Qatar? Actually it was a little bit below expectation. We are still busy but due the rig count decline in Qatar, which declined from 32 to around 22 in 2009, this obviously affected our business. However, despite this we have still managed to maintain the same level of activity in Qatar in terms of drilling and completing wells. Through our wide portfolio of services we can provide in Qatar we have managed to compete with the big players that operate in the market. What are your expectations for 2010? We have revenues of $100 million which is also our target in 2010. You will see a lot of activity in Qatar over the next two quarters. Some of them will be tenders some will be single sourced. Or the customer has the option to extend the current deal it already has in place. We are open for all options. We are here whatever QP calls for. That is why we have done a joint venture. But it is not only QP in Qatar, you have big players like RasGas, Maersk, Oxy, Shell, Wintershall, Total. They are our customers globally and know us from elsewhere. We have no problem with IOCs and NOCs. Are you optimistic about a pick-up in drilling spend? 2010 will be similar to 2009. I think we'll see the same levels of activity plus or minus 5%. I don't think there will be any major change. Q2 in 2011 is when we are expecting it to really change. Visitors flock to the ExxonMobil stand at the IPTC exhibition. www.arabianoilandgas.com January 2010 Oil&Gas Middle East 19 EVENT REPORT � IPTC professionals from BG Group, RasGas, Shell Qatar, Middle East Total and ExxonMobil participated in the discussion. The interest in LNG was evident in the IPTC exhibition hall with both the Pearl GTL and Qatargas 4 being popular stands with the visiting delegates, who came from all over. DAY 3 The key theme which emerged on the final day of IPTC 2009 was a call for higher investment in unconventional recovery methods, with speakers implor- A buoyant conference session was held discussing many topics. ing NOCs to support highrisk investments that will allow more oil to be produced from already existing, and ageing oilfields. High ranking industry professionals from Eni E&P, QP, Saudi Aramco, Kuwait Oil Company, Total and Shell E&P International spoke in the conference. The panellists discussed the challenges around increasing hydrocarbon recovery in existing fields and developing future energy resources which are energy intensive and more expensive. SCHLUMBERGER'S TRIPLE LAUNCH AT IPTC 2009 CEO Andrew Gould defends cuts and says Middle East business unaffected Schlumberger rolled out the big guns at the IPTC, with CEO Andrew Gould flying into Doha to promote the launch of three new products by the oilfield services giant. The first, the EM Pipe Scanner, is an electromagnetic casing inspection tool that can run through tubing to produce a quantitative scan of the interior surface and thickness of the production casing. "The unique ability of the EM Pipe Scanner to measure corrosion in production casing without having to pull completion tubing saves customers significant cost," Zied Ben Hamad, marketing and technology manager, Schlumberger Wireline said. The second product, OPTICall, is a thermal profile and investigation service. This distributed temperature sensing (DTS) service tracks fluid movements in real time along the wellbore, helping to detect leaks, monitor gas lift and evaluate fractures to improve field productivity. "The OPTICall service offers a low-risk, economical way to troubleshoot issues in all types of wells," Claude Durocher, Slickline business manager, Schlumberger said. The third, the MaxCO3 Acid degradable diversion acid system is a polymerfree, non-damaging acidising system that can be used for both matrix and fracture stimulation in carbonate reservoirs with permeability contrasts or natural fractures. "The MaxCO3 Acid system is designed to be used in oil or gas wells in both open-hole and cased-hole intervals, regardless of deviation. Treatment design, execution and evaluation are optimised using Schlumberger proprietary software applications," the company said. Speaking earlier in the conference Gould had moved to defend Schlumberger's recent cost cutting measures, stating the core areas of the business had not been affected. "We have protected our key research and development expenditures with only minimal adjustments in the overall plan," Gould concluded. The offshore stimulation vessel performing the MaxCO3 Acid treatment in Qatar's North field. Getty Images Schlumberger CEO Andrew Gould attended the IPTC forum in Doha. 20 Oil&Gas Middle East January 2010 www.arabianoilandgas.com EVENT REPORT � IPTC $6BN INVESTMENT COMING TO FRUITION Esbern Hoch head of geoscience, director, Maersk Oil Qatar speaks to Oil & Gas Middle East What's you message to the industry at IPTC 2009? We've been here [Qatar] since 1992 and we felt it was important for us is to show the industry the success we have had. Also we wanted to support Qatar Petroleum, our partner in the Al Shaheen field. Has the fluctuating oil prices in 2009 affected you? When you undertake a US$6 billion project like Al Shaheen Field Development Plan you define your investments based on expectations of a fluctuating oil price. In the late 1990s we were down to $9.50 per barrel, so this crisis hasn't been nearly as bad as that. What does 2010 hold for Maersk Oil Qatar? Hoch says Maersk Oil Qatar is flat out working on the Al Shaheen field development plan. We are installing a huge number of offshore facilities at the moment. We have more than 30 facilities installed on our offshore platform locations and they will be finalised by the middle of Q2 in 2010. We have also started a pilot scheme for gas injection. We need to maintain the reservoir pressure and currently using water, but we can be even more efficient if we use gas. WHEN WILL YOUR ESP FAIL? ...TODAY? ...NEXT WEEK? ...NEXT MONTH? ARE YOU READY? ESP Shuttle enables you to reduce the impact of an ESP failure, for better planning and well management across the life of your well. ESP Shuttle provides a proactive approach to maintaining artificial lift that keeps productivity up and disruption down. ESP failure no longer has a major impact on production. To find out how you can achieve greater production continuity, visit www.zeitecs.com LIFTING EXPECTATIONS January 2010 Oil&Gas Middle East 21 ROUNDTABLE STEPPING INTO THE RING How does a company without a proven background in the local oil and gas business enter the industry? Oil & Gas Middle East sat down with four industry experts to see how that barrier can be overcome THE PANEL CHAIR: DANIEL CANTY, EDITOR OF OIL & GAS MIDDLE EAST TAWFIQ ABU SOUD Executive director of infrastructure, water and power at Drake & Scull International. He is looking to expand the company's construction and engineering portfolio into the upstream oil and gas business. KARIM KHAIRY NASR Operations manager, Middle East, TecWell. Nasr spent nine years with Hallibuton as an E-Line engineer, and now represents the Norwegian acoustic logging company from the Abu Dhabi base in Mussafah. ISSAM SHARARA VP international business development, Middle East, Cudd Energy Services. Cudd offers a broad range of technical and specialised oilfield services to companies engaged in the E&P activities. TERRY WILLIS Managing director of the Energy Industries Council � A UK based trade association. The EIC provides services to help member companies expand their business in the oil, gas and power sectors in the region. If national oil companies demand local experience as a prerequisite, how do new firms penetrate the market? Issam Sharara: Where a contract calls for local experience and local services, we have gone into joint venture with a local company or our existing local agent for that specific project. When a local base is demanded we can activate that local joint venture relationship. Tawfiq Abu Soud: That may work when you already have oil and gas projects on your portfolio, but without that experience it is much harder to even qualify. This means only existing companies will get work, and no newcomers can enter the market. That in itself is bad for competition and ultimately bad for the oil companies. Of course, when you are specialised to the extent that you are the only person in the market that can do what you do, you don't have a problem entering any markets. They need you. However, if you are in EPC the oil companies can throw up barriers to new entrants because they think there are already enough players in the market. Terry Willis: A good example here is Petrofac. Having previously not secured any upstream work in Abu Dhabi, despite an impressive regional portfolio, in September 2008 they signed a joint venture agreement with Mubadala. Since then they have secured around $7 billion worth of Abu Dhabi projects. Essentially, if you have something to offer and something to give, then finding the right partner is the key, and there are plenty of success stories out there. Tawfiq Abu Soud: We have on our staff a tremendous wealth of experience in the oil and gas industry. However, in spite of this, the only way we can penetrate the market is to partner with already well established players in the market and the major EPCs. The biggest problem we are facing is with West- ern companies. The American and European firms seem reluctant, whereas we have been very successful with the Asian companies who are more willing to play ball. Are agency agreements an effective way to manage regional business? Karim Khairy Nasr: We have tried several relationships with agents around the region, and speaking from my own personal experience they have been a disaster. Over the last five years I have managed to establish just one good agent presence in Saudi Arabia, and that pretty much covers it as far as good 22 Oil&Gas Middle East January 2010 www.arabianoilandgas.com ROUNDTABLE A full range of industry experts were present to discuss how a company can best break into the upstream oil and gas market in the Middle East. regional agency experiences go in this area. Issam Sharara: Agency agreements can be problematic for sure, but in many cases in the Middle East you have to be a registered company in that country in order to get work there � particularly in the Middle East, so in terms of actual investment the risk can be lower. Terry Willis: Every six weeks I am approached by members who want out of agency agreements because they perceive them as failing in their role. I tend to play devil's advocate and ask "When did you last see him?" More often than not people reply "a few years ago". It is tomorrow by putting in low bids then it's a dangerous game. The terms you agree with an oil and gas company set the tone for how your whole relationship with them will be defined. If you go in cheap, you will be forced to stay at that level. Tawfiq Abu Soud: We are not in the business of losing money, and we aren't going to bid so low we lose on a project just for the sake of saying we've done it. Doctoring entry pricing is not something Drake & Scull Are Asian firms carrying engages in. To get into a marout projects at margins deemed ket we want to do it right on reatoo cheap by local companies? Karim Khairy Nasr: If com- sonable terms. I have a responpanies are willing to sacrifice sibility to the shareholders of the profits of today for business the company. important to remember these agents have their own business to run, so unless you are prepared to put the effort and time into fostering these relationships they can quite easily fail through a lack of effort. Companies are very happy to sign on the dotted line and then wait for the work to come in, and in this market that attitude simply does not work. It's got to be a 50/50 relationship. Are there softer markets to enter? Terry Willis: Oman is a good example of a softer entry market. PDO put their contracts on line and its open bidding. Once the technical bid has been accepted the next round is online bidding. That's when the fun starts. CONCLUSIONS: Organic growth into the oil and gas sector may once have been possible, but today entry must be through strategic partnerships or alliance agreements. When the industry returns to rampant growth this may become the case again. www.arabianoilandgas.com January 2010 Oil&Gas Middle East 23 SPECIALIST ACCESS ACCESAS RE S ALL A Rope access specialists are targeting the upstream market with an array of in-house hydroblasting and NDT service packages Simplicity and speed of offering are vital components. pstream and midstream oil and gas installations offer some of the most hostile working conditions, and most complicated infrastructure, of any industry in the Gulf. From oil storage tanks to working at heights of over 100 metres cold-cutting steel on jack-up rigs, access to critical components is made doubly difficult by the stringent safety requirements imposed on contractors. With this in mind, Oil & Gas Middle East sought U out the leading rope access and hydroblasting experts in the Middle East, and found that for firms which can offer time and money saving service packages, business is booming. Rope access originated in France and was imported in the UK in the early 1980s. Initially used onshore and accepted as a safe and cost effective alternative to traditional access systems such as scaffolding, rope access soon found its way into the offshore oil and gas industry. The leading firms operat- ing in the UAE say that a rope access system can be set up safely and quickly and have the technician at the worksite in minutes where other access systems can take hours or even days to erect. "The simplicity and speed of access to high or otherwise restricted areas for oil and a gas company is big business for us," explains Billy Harkin, managing director of Megarme. "Increasingly we're being called out for offshore installation shut-downs. Just recently Ian Caffery, general manager of ArabianAccess Solutions. www.arabianoilandgas.com SPECIALIST ACCESS OFFSHORE CASE STUDY Project Brief A satellite platform in the Northern Emirates requires upgrading, including complete re-coating of topsides and jacket. The platform has no accommodation on board therefore the workforce is transported daily by boat. Traditional Method Transport vast amounts of scaffold which will take several trips with supply boat and many lifts with the onboard crane (max lift 5 tonnes). Transport scaffolding team to erect scaffolding for complete platform which can take many weeks. Once scaffolding is erected transport coating team and equipment to complete re-coating which would take around seven weeks. On completion of re-coating, mobilise scaffolding team to dismantle staging and transport back to beach again taking many lifts and journeys. Rope Access Method Transport rope access team with rope access equipment and re-coating equipment. Hang ropes in position required and start re-coating on the same day; it will take around seven weeks to complete. Benefits At the front end, there is no requirement for scaffolding, thus fewer boat journeys and crane lifts, and less labour cost in terms of accommodation, meals and travel. Transportation by boat can prove difficult via a dependency on weather conditions. The rope access technicians are all qualified painters/blasters and will complete the project in the same time as deck painters/blasters (sometimes scaffolding can be obstructive when spraying or blasting). At the back end of the project, de-mobilising can be done in one journey again saving boat trips and time. Rope access has a tremendous safety record and can reduce manhours, which equates to fewer opportunities for accidents to happen. Source: Project case study provided by Arabian Access Solutions we completed a tower demolition for Dubai Petroleum." From the call out, a team can be assembled, equipped and flown out to a rig, with work underway within 24 hours. The ease of mobilisation, and the fact that a total shut-down is not required (as is often the case with a scaffold solution), is a big factor when time is money. Ian Caffery, general manager of Arabian Access Solutions says the advantages of speed onshore are magnified for jobs in the offshore environ- ment. "With a scaffold team you need an additional ten to twelve beds, plus the added time it takes to organise the logistics of all the equipment and installation. From arrival, a rope access team can be working in around thirty minutes." Whilst clearly specialised work, which requires an astonishing head for heights, the standard process is not to look for abseiling experts and give them a trade. Rather, skilled tradesmen in their field are selected and given the rope Skilled tradesmen are taught to abseil, rather than the other way round. www.arabianoilandgas.com January 2010 Oil&Gas Middle East 25 SPECIALIST ACCESS JARGON BUSTER NDT Non-destructive testing is a wide group of analysis techniques used in science and industry to evaluate the properties of a material, component or system without causing damage. Because NDT does not permanently alter the article being inspected, it is a highlyvaluable technique that can save both money and time in product evaluation. UT In ultrasonic testing, very short ultrasonic pulse-waves with centre frequencies ranging from 0.1-15 MHz and occasionally up to 50 MHz are launched into materials to detect internal flaws or to characterise materials. The technique is also commonly used to determine the thickness of the test object, for example, to monitor pipework corrosion. MPI Magnetic particle inspection (MPI) processes are non-destructive methods for the detection of surface and sub-surface defects in ferrous materials. They make use of an externally applied magnetic field or electric current through the material, and the principle that the magnetic flux will leave the part at the area of the flaw. access training, often in-house. "Whether they be electricians, welders, inspectors first, we bring in our trainer from the UK who will bring them up to required standard for rope access work. Of course, we do try to enhance the skill sets once people are working for us. So if someone is a UT inspector, we would train them up to MPI. We provide all of the internal training necessary for offshore such as the H2S training and helicopter evacuation certifications," explains Harkin. Megarme has carried out inspection and maintenance work for most of the region's biggest oil and gas companies. "We've worked for Dolphin and RasGas in Qatar, ZADCO, GASCO in the UAE and the firm is planning to open a Bahrain office in 2010, with the hope of penetrating the lucrative Saudi Arabian market. "We have found in the past it is very difficult to crack the Saudi Arabian upstream sector from a remote office. Bahrain will hopefully act as something of a gateway for us there," says Harkin. The array of tasks which the leading rope access firms are now regularly called upon is impressive, and growing. From simple hydroblasting to strip paint before an inspection, right through to super-high pressure jetting at 40,000 psi (which can cut steel) and ultrasonic and magnetic particle inspection services, the firms have swollen their skill sets in order to capture rewarding upstream inspection contracts. "We are evolving into a credible inspection agency in our own right. Rather than being primarily a rope access outfit, we are constantly rolling out additional services, otherwise companies Hydroblasting and non-destructive testing have been rolled out as typical service offerings by the Middle East's leading rope access firms. "Megarme is evolving into a creditable inspection agency in its own right" Billy Harkin, managing director, Megarme in the inspection business will move into the rope access field," observes Harkin. Megarme is currently aiming to have a full radiographic inspection centre in Abu Dhabi, open in 2010. "Even though it represents a relatively small part of the inspection remit, if a company is tendering for a full three-year inspection contract it wants you to have it all in house � it's simpler for the end user to have one company to deal with rather than half a dozen subcontracting firms," he says. Caffery concurs, adding that the specialist skills and inspection work remit is a vital part of the Arabian Access offering. He says the crucial difference is being able to provide a stable of services geared around the needs of the oil and gas industry, and that the marketplace for qualified firms is still relatively uncrowded. "Having spent a year working at Dubai Petroleum as a project manager I was able to see lots of gaps in the market compared to the services offered in the North Sea oil industry, so bringing the skills and equipment over to plug that gap has been our remit since we launched a year ago." The combination of rope access and non-destructive testing capabilities has proven not only recession-resistant, but in fact, a tough climate was the ideal time to launch, Caffery explains. "As a company we 26 Oil&Gas Middle East January 2010 www.arabianoilandgas.com SPECIALIST ACCESS were not deterred by the collapse in confidence around our launch in January 2009. We're in a position where we can offer huge savings to the industry, so in many ways it was a good time to launch and we've surpassed expectations for our first year." Despite the dangers inherent in working at height, or in hard-to-reach areas, rope access has a strong safety record, and is fast being recognised as one of the safest methods of carrying out operations that are perceived as dangerous. "The statistics show that rope access is one of the safest methods of carrying out work at height. In the civil engineering field this is important, but that HSE requirement is stepped up another level in the upstream world," says Harkin. Arabian Access Solutions is also pioneering new techniques for some of the most dangerous and unappealing jobs in the oil business � tank cleaning. It is still common in the Gulf for a team of workers to enter storage tanks and manually dig the sludge and residues out. "Obviously there is a huge HSE issue there, not to mention climbing up and down 20 metre ladders with sludge on their boots in the heat of the summer. Those are truly horrible conditions to work in. We have a modified suction pump solution which we lower into the tank, which means people don't have to go in at all. It cuts down the number of people going in to the tank and in terms of scheduling, it slashes the time taken to get the job done." As oil companies and EPC contractors alike continue to keep cost control at the top of the agenda for 2010, going direct to rope access and hydro blasting and non-destructive testing certified firms could spell significant cash savings. "Quite often, a lot of our upstream work has been subcontracted down from the EPC company, through the various layers of the construction or maintenance chain. It ends up sub-contracted to a fairly high level, but of course if companies came to us direct there are far fewer people creaming a margin off the service cost, so it could be a lot cheaper," concludes Harkin. Billy Harkin, managing director of Megarme. � ROPE ACCESS � TENSION NETTING � HYDRO BLASTING � CAMERA SURVEY � ENGINEERING SERVICES � TECHNICAL RESOURCES Industrial City of Abu Dhabi Mussafah PO Box 129446 Abu Dhabi, United Arab Emirates Phone: +9712 550 2495 Fax: +9712 550 2494 Email: firstname.lastname@example.com Al Barsha Business Centre PO Box 450079 Dubai, United Arab Emirates Phone: +9714 371 3355 Fax: +9714 371 3331 Email: firstname.lastname@example.com www.arabianaccesssolutions.com 27 www.arabianoilandgas.com January 2010 Oil&Gas Middle East INTERVIEW 21ST CENTURY MODEL In the E&P industry, change is constant. Helping upstream players reinvent themselves to meet global energy demands is Schlumberger Business Consultancy one are the days of "that's how we've always done it" management. For today's national oil companies and their international partners in the Gulf, change is the only constant. Oil and gas companies are continually striving to reinvent themselves to meet the challenges of finding and accessing new reserves, optimising mature reservoirs, and answering global demands for G pany has established a brand new regional office, (in addition to its Kuwait City entity), in Abu Dhabi, which will be staffed by two vice presidents and ten consultants. "The Gulf is obviously an extremely interesting part of the world. SBC is a combination of management consultancy skills and E&P knowledge which is very well aligned with the needs of the region's national oil companies which have to develop their capabili- "It used to be the case that companies chose either a very localised or a centralised model, but thanks to the evolution of communication technology, we now see ways of developing and optimising that choice" Antoine Rostand, global managing director, SBC energy. Significant skill shortages are further compounding these difficulties. In 2004, Schlumberger Business Consulting (SBC) was established under the sponsorship of group chairman and CEO Andrew Gould to help oil and gas companies realise dramatic performance improvements and sustained growth. Oil & Gas Middle East met Antoine Rostand, the global managing director of SBC to discuss the firm's fresh start in the Middle East for 2010. The comties and import best practices," explains Rostand. "What is interesting about SBC in the Middle East is that we are the only consultancy firm with both operational and strategic insight to be able to impact the oil and gas business. It's a very technical business, so the deep understanding of the upstream industry is a real advantage in that regard." Helping oil and gas companies face the energy challenges of the 21st century has been the firm's remit since its inception, Antoine Rostand says oil and gas companies simply must continue recruiting. and Rostand says the issues that global E&P businesses are facing today mark a step change for energy companies, coupled with an urgency which cannot be understated. "We need to provide cheap energy to the world, especially the five billion people who lack adequate energy at this point in time. This challenge is compounded by the fact that we have to reduce the carbon footprint of the hydrocarbon based industry which is a very complex problem indeed." In this context, SBC is focused on oil and gas part of 28 Oil&Gas Middle East January 2010 www.arabianoilandgas.com INTERVIEW SBC HAS ADVISED: 63% of the Major IOCs 70% of the Major NOCs the energy equation, which represents about two thirds of the primary energy needs of the world. The oil and gas business is facing a complex array of challenges. There are new frontiers, new technologies, new entrants to the market, and critically, a lack of people. "New Frontiers is quite a different concept in the Middle East compared to, say, the North American market because of the abundance of natural resources in the region. Tight gas is perhaps a good example of what would be a New Frontier in the Middle East environment." Rostand says that it is almost impossible to characterise a typical project for the SBC client list, which reads like a Who's Who of Big Oil. "In the last six years we have done more than 600 projects, for more than 40 clients in over 30 countries. There is a huge scope and diversity in what we do." Around 20% of SBC's deployments are strategic in nature, for example consulting a company on the best entry strategy for doing business in a new domain, such as Brazil, or Saudi Arabia. The business is currently dominated by people development issues. "Around 40% of our work is helping oil companies develop their in house skill sets, such as petrophysicists, or geologists. We do a lot of work in speeding up the capability development within teams." The remaining slice of SBC's activities is operational in nature, overcoming technical issues or improving production rates. One operational issue which has come to dominate the SBC pipeline is how to optimise a business in an era of centralisation vs localisation. "For a lot of clients, the major issue is to explore what aspects of the business should be run locally or by regional affiliates, versus what should be dealt with centrally. It used to be the case that companies chose either a very localised or a centralised model, but thanks to the evolution of communication technology, we now see ways of developing that choice," says Rostand. The demand slump and drying up of international credit lines has changed the focus for many oil companies. "With the financial crisis we have moved from a very bullish view where most of our work was growth orientated, with a big focus on recruiting more people and developing organisations for growth. Recently, however, it has certainly become much more about efficiency." Slacking off on recruitment now is likely to cause serious operational problems when demand kicks into overdrive again. Rostand says the SBC line is that firms simply must keep recruiting. Optimised efficiency have become the buzzwords for the oil and gas sector. tackle the challenges that are Now the focus has shifted going to emerge in the next 20 to optimising operations, or 30 years." logistics and inventory and the NOCs are in a position to make real organisational EFFICIENCY DRIVE According to Rostand, the great- improvements by employing est gains for oil companies in best practice techniques. "Of course, the strategic the next five years are likely to come from changing working imperative of a national oil practices. "During the last five company is different to priyears we had a boom, and dur- vate or public oil companies. ing periods of frantic activity They have immense resource wealth, but their mission now is to continue to increase their capabilities. They have done a lot in recent years, but in developing the tougher resources such as tight or Antoine Rostand, global MD, SBC sour gas they must gear their strategy around doing this by themselves," says Rostand. "A whole framework has people don't focus on optimis"The NOCs have already been developed from the uni- ing their supply chains, or the become the largest producversities up to handle the flow of way companies do business. ers, so the emphasis must be people needed by the oil and gas Cost tends to become less of an on continuing that momentum industry. We absolutely need to issue when the priority is to get and taking the new challenges keep recruiting to ensure the as much oil as possible out of head on and tackling them," industry has the lifeblood to the ground." he concludes. "NOCs have immense resource wealth, but their mission is now to continue to increase their capabilities" www.arabianoilandgas.com January 2010 Oil&Gas Middle East 29 0UK\Z[YPHS HPY JVTWYLZZVY Z`Z[LTZ 05+<:;90(3 9(5., � )(9 � 4 / ;OL 5L^ )VVZ[LY 9HUNL )2 )2 MVY 5P[YVNLU (PY *5. HUK 9HYL .HZLZ *6479,::69 +,;(03: ;OL UL^ PUK\Z[YPHS YHUNL MYVT )(<,9 WYV]PKLZ OPNO -(+Z ^OPSL YLX\PYPUN SP[[SL ZWHJL HUK VMMLYPUN ^PKL ZWLJ[Y\T VM PU[HRL WYLZZ\YLZ ;OL WYLZZ\YLYLZPZ[HU[ JYHUR JHZL TH_PTPaL [OL LM�JPLUJ` HUK TPUPTPaL [OL THPU[LUHUJL YLX\PYLTLU[Z K\L [V [OL ILUL�[ VM UV I`WHZZ JVTWYLZZVY *<:;640A,+ :63<;065: *VU[HPULYPaLK MVY V\[KVVY PUZ[HSSH[PVU -VY OHaHYKV\Z LU]PYVUTLU[ >H[LY VY (PY � *VVSLK ,SLJ[YPJ VY +PLZLS KYP]LU 0UZ[HSSH[PVU HUK JVTTPZZPVUPUN ZVS\[PVU 36*(3 (-;,94(92,; :<7769; .LU\PUL 6,4 WHY[Z VU Z[VJR :LY]PJL I` MHJ[VY` [YHPULK [LJOUPJPHUZ 6WLYH[VY [YHPUPUN WYVNYHTZ ;V[HS JHYL � [V[HS WLHJL VM TPUK :/07705. 9,-05,90,: 76>,9 73(5;: 6--:/69, *5. )(<,9 26479,::69,5 4PKKSL ,HZ[ <UP[ (- 1LILS (SP -YLL AVUL 76 )V_ +\IHP <(, ;LS! -H_! ,THPS! PUMV'IH\LYRVTWYLZZVYLUHL PUMV'IH\LYRVTWYLZZVYLUHL SAUDI ARAMCO PROJECT UPDATE Khalid Al Falih, Saudi Aramco's CEO (right) with Saudi Arabian Oil Minister, Ali Al Naimi at the Petro Rabigh launch in November 2009. KSA PROJECT FOCUS Saudi Aramco's major project development programme is pushing ahead - CEO ork in no upstream environment has the potential to raise the pulse of an oil company like the promise of work in Saudi Arabia. Not only does it have the potential to meet much of the world's future energy needs, it also holds the opportunity to work on genuinely exciting and cutting edge recovery projects. With more detailed analysis of Saudi Aramco's projects, tenders and news available on ArabianOilandGas.com, to kick the new year off Oil & Gas Middle East has digested recent activity in Saudi Arabia and brings you a project snapshot from around the country. Comments from CEO Khalid Al-Falih, and information from Saudi Aramco shines a light on the state of play for the Kingdom's largest upstream oil and gas projects. W IN HIS WORDS - KHALID AL FALIH Addressing delegates at the World Oil and Gas Assembly in Bangalore last month, Khalid Al-Falih, CEO of Saudi Aramco said that the Manifa and Khurais projects were vital to addressing the long-term call on oil, and that Aramco was aggressively ramping up exploration, improving recovery and building its reserves every year. "While oil fields in many basins throughout the world are becoming increasingly mature, the share of the Middle East in global oil supplies will steadily rise. I am proud to say that Saudi Aramco has played, and will continue to play, an even bigger role as one of the key suppliers of oil to India, Asia and the whole world," said Al Falih. Here are the project specific excerpts from his keynote address. On Manifa "Our Manifa project, at 900 000 barrels per day capacity, is one of the largest heavy crude oil increments ever commissioned by the industry, but distinctive aspects of the field made for costs not typically associated with development. Manifa lies in shallow waters in the fragile ecology of the Arabian Gulf, requiring unique access solutions involving drilling islands. When we made this investment decision, oil prices were above $70 per barrel, and as in the Khurais example, demand prospects were strong. After contracts were awarded, however, prices declined to below $35, demand projections fell, but costs did not proportionally decrease, clouding the robustness of the investment. We reviewed the programme, and with some execution plan modifications, including deferring completion by two years, decided to continue." On Khurais "At 1.2 million barrels per day capacity, the Khurais program is the single-largest crude increment ever commissioned by the industry. When we made this investment decision, oil prices were in the range of $55 per barrel with expectations of stronger prices; oil demand projections were healthy; and costs in the usual range. Mid-programme oil peaked at around $140 per barrel. And yet toward the end of the programme, prices had fallen to below $35 and demand had tumbled due to the financial crisis, while costs spiraled, doubling our investment." www.arabianoilandgas.com January 2010 Oil&Gas Middle East 31 SAUDI ARAMCO PROJECT UPDATE Work on the Manifa project is scheduled to close in 2015. MANIFA OFFSHORE OILFIELD At an estimated cost of US$9 billion, the Manifa oilfield was expected to begin production in mid-2011. The scope of the field includes 900,000 bpd of oil, 120 million scfd sour gas, 50,000 bpd condensate and 950,000 bpd of produced water. Among the known contractors working on the project are Saipem, Halliburton, Foster Wheeler, Technicas Reunidas and Jan De Nul Group. It was announced in April that the project was expected to be delayed by six months. The main problem surrounding the field, is the large amount of heavy sour crude, which is expensive to process. In the current economic conditions, it has been thought best to delay the project. UPDATE: The Manifa project has now been given a 2015 completion date by Saudi Aramco. The company revealed in a December 2009 statement that the project will be completed for the new date, representing a delay of around two years on previous projections. Getty Images ZULUF OILFIELD Zuluf is one of the country's largest oilfields and is located near the Safaniyah and Marjan oilfields. Exploration and development has been expected at the field since Aramco announced it would be exploring non-producing fields such as the Red Sea, Nafud Basin and northern and western Saudi Arabia. UPDATE: Aramco has awarded two seismic contracts to explore offshore oil and gas reserves worth $373.3m to Arabian Geophysical and Surveying Co (ARGAS). The Saudi-based company expects to start gathering the data in the Zuluf oilfield in November 2010, it said in an e-mailed response, adding that work would be completed in two years. Seismic work at Zuluf is an extension to the shallow water contract which Argas completed last month and would extend to the Iranian border. Aramco has awarded offshore exploration contracts to ARGAS. Getty Images 32 Oil&Gas Middle East January 2010 www.arabianoilandgas.com SAUDI ARAMCO PROJECT UPDATE SAUDI ARABIAN GAS PROJECTS Saudi Arabia is well known for its huge unexploited natural gas resources. There has been a lack of investment in the gas sector due to highly subsidised prices, increasing production, exploration and processing costs of gas. A strategy was put in place back in 2006 to add 50Tcf of non-associated reserves between 2006 and 2016 through new discoveries. Approximately three hundred development and exploratory wells are reportedly being planned by 2010. According to Saudi Aramco, exploration and development will also be commencing in nonproducing areas such as the Red Sea, Nafud basin and northern and western Saudi Arabia. UPDATE: Saudi Arabia has announced new projects in the Kingdom. These developments look set to change the country's gas outlook for good. It was announced recently that the largest ever gas plant in the Kingdom is to be built in order to supply utilities and some industries. The new gas plant is expected to process more than 1.8 billion cubic feet per day (cfd) of gas. It will process all offshore non associated dry gas and this will go a long way to meet rising demand for utilities and some industries. The Wasit gas development programme at Manifa is split into several projects that include building gas processing facilities, two offshore gas platforms, one tie-in platform, subsea power and communication links and pipelines. Canada's SNC-Lavalin said in September that it would provide engineering and design work and project management services for the project. YANBU Snapshot: Yanbu is a joint venture between Saudi Aramco and ConocoPhillips. It is a full conversion refinery designed to process 400 000bpd of Arabian heavy crude. Update: Five days has been cut off the deadline date for bids to build the refinery. Bids for five EPC contracts on the facility now have to be submitted by January 26. All contracts will be awarded by May 2010, with a completion date set for March 2014. Getty Images The Wasit gas development programme includes two offshore gas platforms, one tie-in platform, subsea power and communication links and pipelines. 34 Oil&Gas Middle East January 2010 www.arabianoilandgas.com SPONSORS SMi present their 3rd Annual Conference Addressing the Effective Application of Satellite Communications in Oil & Gas Operations 24th & 25th March 2010 Marriott Hotel Regents Park, London TOP SPEAKERS INCLUDE: � Andrew Marks, Chief Information Officer, Tullow Oil Plc � Fawaz Al-Khudhairy, Supervisor � Wireless Engineering Group, Saudi Aramco � Augustine Igwegbe, Regional IT Manager, Shell Nigeria � Nick Stevenson, Network Manager, Petro-Canada UK Ltd � Stig Petersen, Research Scientist, Communication Systems, SINTEF ICT � Gregory Francis, Managing Director, Access Partnership REGISTER ONLINE AT: www.smi-online.co.uk/10oilgas36.asp Alternatively contact Ashraf Ahmed on Tel +44 (0) 20 7827 6110, or email firstname.lastname@example.com NO.1 IN HYDRAULIC PERFORMANCE. Deah Hydraulics is a full line distributor of hydraulic pumps & motors, fluid power components, offering fabricated systems. We are the Authorised distributor for: � BRADEN and GEARMATIC WINCHES, USA � PACCAR WINCH DIVISION. � HYDROCONTROL Italy, dealing with all kinds of monoblock, sectional valves, joystick controls, etc.... � ING BONFIGLIOLI, Italy, dealing with truck mounted cranes. � SUNFAB, Sweden, Hydraulic Piston Pumps & motors. We supply, install and repair all types of truck mounted cranes, manufacturing recovery equipment, repair and manufacturing of all types of hydraulic cylinders. Client satisfaction is our first priority. As we are based locally we are better positioned to assist you with all of your needs for each of our partners in less time and more efficiently. Deah Hydraulics L.L.C... "Your Total Hydraulics solution." Authorised Sales and Service Centre for PACCAR Winch Division. WEBSITE: www.deahhydraulics.com � EMAIL: firstname.lastname@example.com � P.O.Box 84781 � Dubai, U.A.E. A.E. A distributor for OFFSHORE TECH FOCUS BOXING Hyosung's award winning jacking gearbox. CLEVER il rig drilling platforms are extremely high cost capital investments. So it is understandable that the designers and end users of such massive structures have reliability and availability at the very top of their list of `must haves' when they consider much of the critical equipment. Korea's Hyosung claims its new jacking gearboxes give both reliability and power for consistent offshore performance O And for jack-up platforms, that are designed to float to a location and then have the drilling platform 'jacked up' off the surface of the sea, one piece of critical equipment is surely the jacking gearbox. Jacking gearboxes provide the power to lower the platform legs onto the sea floor and then lift the enormous weight of the drilling platform high enough above the water so there is no interference to drilling operations from wave motion, even in stormy and windy conditions. Hyosung Corporation of Korea claims its jacking gearboxes give both reliability and power. SKF provides 23 bearings in each of their latest designs of gearbox, including Leaders in Fluid Engineering 36 Oil&Gas Middle East January 2010 www.arabianoilandgas.com OFFSHORE TECH FOCUS the SKF CARB toroidal roller bearing which delivers the highest carrying power in the smallest package of any bearing type. Any system is only as strong as the key components in the design. If any single components should fail, the entire system fails. It was with these thoughts in mind that WonCheol Hong, senior designer at Hyosung Industrial Machinery began his project to design a smaller, lighter, more powerful jack-up gearbox for oil drilling platforms, than his company had delivered before. One major component in the design is the bearings that support the shafts and gears as they lift the enormous weight of the platform at 1.5 feet per minute. The sheer weight of the platform and the very demanding operating conditions mean that minor deflections of the shafts cannot be avoided. And to pre- Hyonsung's gearbox. vent that they cause premature bearing failure in gearbox appliCARB bearing focus: cations the bearings selected CARB is a self aligning radial bearing with an inner ring that moves must be able to accommodate independently of the outer ring, enabling the shaft to move smoothly these deflections in all condiwithout inducing axial loads. It therefore accommodates misalignment tions throughout the life of the like a spherical roller bearing and axial displacement like a cylindrical gearbox. Hong's final selection roller bearing. Additionally it carries extremely high loads due to relaincluded SKF tapered roller tively long and barrel shaped rollers. bearings, spherical roller bearBecause the rollers are barrel shaped, and the inner and outer rings ings, and CARB bearings for the are correspondingly concave and symmetrical, the bearing will always very demanding load carrying position itself in the raceway for optimum load carrying performance. in the planetary gears. The first drilling platform The CARB design eliminates the equipped with these gearboxes problem of induced axial loads started drilling off the coast of resulting from thermal expanChina in January 2009 and will sion of the shaft. This enables two stay there for three years. The major design options: oil rig, operated by an Ameri1. Keep the current bearing can company, uses 54 Hyosung dimensions and radically increase reducers to jack up the drilling bearing service life. platform, having 18 gearboxes 2. Downsize and achieve the same Cutaway of a CARB bearing. on each of its 3 support legs. or better operational reliability. Considering the rig platform has a maximum drilling variable deck load of 3,673 tonnes it sider that such gearboxes need tions. Later models had a 550 is easy to understand why Hyo- to give reliability and power. kips carrying capacity with prosung and the rig operator con- Add to that the fact that the oil portionally more holding and drilling platform is expected to severe storming capacities. Hong is proud of his work be active for 20 years, and so are the gearboxes, then reliability in designing the gearbox. "I am really means reliability. Espe- very happy with the technical cially if the operator wants to support I received from SKF in have efficient and trouble free this project. The use of CARB, operation during the anticipated and its self-aligning ability, total of 2000 hours period of lift- allowed us to design low-profile ing and lowering of the platform gears that are wider, stronger once it is positioned, after the and give greater torque capacvessel is moved to various drill- ity than previous designs. This ing sites during those 20 years. allowed us to downsize the The first gearboxes produced gearbox with confidence, and have a lifting capacity of 440 this was proven in tests when kips (kilo-pounds) and a holding we loaded the gearbox plancapacity of 700 kips in normal etary gears to three times the conditions, extending to 1 000 expected loads with no probkips in severe storming condi- lems," says Hong. TECH TALK Leaders in Fluid Engineering www.arabianoilandgas.com January 2010 Oil&Gas Middle East 37 EVENT REVIEW Jimmy Larsen, comme rcial director of event sponsors Momentum Engineering. Event: Oil Field Get-together Location: Monarch Hotel, Dubai Sponsor: Momentum Engineering Attendees: 86 Next event: January 28th Tim Bingham, general manager, s. World Fuel Service manager, Gerry Ryan, regional & services, Halliburton, drill bits ernaMark Porter, Frank's Int Middle East. tional Michael Reed, principal consultant, DNV with Darrel Dennis, sales manager, Forum Middle East. NETWORKING SMASH HIT Despite tight times in 2009, Momentum Engineering put the year to bed by delivering a long-forgotten social tradition for upstream professionals ith 25 years of experience serving the oil industry, Ruth's Chris Steak House launched monthly Oil Field Get-togethers at the restaurant, in The Monarch Dubai, in the hope of continuing a tradition that has been long forgotten in this market. Jimmy Larsen, commercial director of Momentum Engineering, the sponsors of the December OFG said, "An Oil Field Get-together is a casual forum for oil and gas professionals to come and meet their peers and industry colleagues with the objective of developing their W contact database, stimulating potential trade and deals, and catching up with old friends." This monthly event has been born with the hope that the Oil and Gas industry boundaries will be broken down on a personal level � and by inviting a different company to be the sponsor each month, thus allowing new perspectives and topics to be shared on a regular basis with a key speaker. "This, we hope, will encourage people working in these close-knit industries to mark these regular dates in their diary so that this ongoing networking opportunity becomes a regular occasion for them," continues Larsen. In attendance at the December OFG were over 15 leading oil companies including the sponsors of the December event, Momentum Engineering. The OFG offers a networking session both pre and post lunch, and a convivial tone was set from the off. With fine fare the friendly forum managed to overcome what has been dubbed a cut-throat year, and acquaintances and contacts were made amidst a flurry of business card exchanges. Sentiment about the year ahead was at best cautiously 28 In 2010, the OFGs will be held on the last Thursday of every month. The upcoming meeting will be on January 28th. optimistic, though many industry insiders expected tough times to continue at least in the first half of 2010. 38 Oil&Gas Middle East January 2010 www.arabianoilandgas.com EVENT REVIEW Julie Zollikofer, office manager, Energy Industries Council, Mutaz Bakhiet, business information officer, Energy Industries Council. Matthew Furness, bus development executiveiness , and Kevin Talbot, divisio manager, J.Ray McDer n with Bob Britton, genemott, Britt n genera r tto ritt n, e a to manager, Bridon Midd ral ager, Brid Middl ager, Bridon Middle ge dle le East. Eas East. a Mark Bobeck, VP sales, TSC Offshore Corporation, Harish Ramachandani, Machinery People. Mike Harvey, drilling superintendent, ENSCO Oceanics, Craig W Miller, general manager, Technical Access Services. "As we continue to sail in some unchartered waters, 2010 will be a slower year than previously forecast, however there still continues to be a degree of optimism from global operating companies to pursue investments in some of the lesser developed areas," said Mike Smith, vice president sales, Mid- dle East region, Maclean Electrical (incorporating Noksab). Smith acknowldeged that oil and gas focused outfits have had a slower year mainly due to the number of deferred or cancelled projects, however Maclean Electrical's global growth has continued through being recognised as a strategic service provider. "Awareness is the single biggest challenge this area will throw up next year, with a lower level of projects and the same number of players, awards will be tougher to achieve, margins will get tougher, and then payments will have to be closely managed. Therefore becoming smarter and more alert will be the order the day in 2010," added Smith. "We anticipate that quite a few projects that were delayed in 2009 will now be implemented. We anticipate a good year but with pricing considerations. Retrieving payments outstanding was a major issue in 2009," said Larsen. Solas Marine Rental Division Solas Marine rental division was started in the year 1999-2000 to meet the growing demands of H2S protection in the field of Oil and Natural gases. Solas H2S Rental Services specializes in: � Design, Supply, Installation, Testing, Commissioning and Maintenance of H2S detection and protection system. � Providing reliable and efficient Gas Alarms and Safety Protection Systems suitable for use in offshore drilling units, supply vessels and testing vessels. Rental Equipments: 30 min SCBA, 15 min SABA, B.A.cascade system, B.A. compressors, Gas detection system, FIFI systems, Trainings. Offices: Sharjah, Dubai, Abu Dhabi, Fujairah, Oman, Bahrain, India, Saudi Arabia, Qatar Solas is an ISO 9001:2000 & OHSAS 18001 certified company. Tel: +971 4 3242001 / 3241700 | Fax: +971 4 3241804 | Email: firstname.lastname@example.com | Visit: www.solasmarine.com www.arabianoilandgas.com January 2010 Oil&Gas Middle East 39 Industrial Strength Solutions For All Your Repair and Maintenance Needs U.S. Manufacturer Seeks Exclusive Distributors We are an industry leader in the environmental protection & factory life extension industry, with some of the most advanced products in the world. We are looking for highly talented and skilled business professionals / organizations to become our exclusive stocking distributors and enjoy unlimited growth and income potential. Substantial investment in inventory, local marketing and sales promotion required. Territories in the Middle East and North Africa are available, inquire now! Please reply in English to: ENECON Corporation New York, USA Email: firstname.lastname@example.com www.enecon.com Fax: +1 (516) 349-5522 VISIT US AT: February 14 - 17, 2010 Gulf International Convention Centre Gulf Hotel, Kingdom of Bahrain www.mecconline.org PROJECTS Ongoing and upcoming projects Information is supplied by Ventures Middle East. Tel: +971 2 622 2455. URL: www.ventures-uk.com BAHRAIN Project Title Redevelopment of the Refinery in Bahrain Redevelopment of Awali Onshore Oil Field Client Bapco Bapco / National Oil and Gas Authority (NOGA) / Occidental Petroleum Corporation (US) Bapco / Nestle Bapco Consultant Chevron Lummus Global (US) EPC Contractor Not Appointed Not Appointed Budget ($M) 100 1000 Status FEED Study Lube Base Oil Project Offshore Field Development Jacobs Engineering Fugro Robertson Limited (UK) Samsung Engineering Company Occidental Petroleum Corporation / PTT Exploration and Production (PTTEP) 430 2000 Execution Execution KUWAIT Project Title Project Kuwait Scheme Gas Pipeline From BS-131 to Mina Al Ahmadi Crude Oil Manifold at GC 27 Gathering Center 16 in West Kuwait Gathering Centre 24 at Sabriya Repair and Replacement of Pipelines in Southeast Kuwait Replacement of Oily & Effluent Water Lines at GC 23 and GC 25 Client KPC / KOC KOC KOC KOC KOC KOC KOC Consultant Sproule Associates Limited (Canada) AMEC EPC Contractor Not Appointed Petrofac International Not Appointed Budget ($M) 7000 544 30 750 621 17 4 Status FEED Execution EPC Bid EPC Bid Execution Execution Execution Fluor Corporation AMEC Not Appointed SK Engineering & Construction Arabi Enertech Instruments Installation and Maintenance Co. (ImCo) Effluent Water Injection Phase I & Sea Water Injection Phase II Transit Line from Abdali Main Point to Abdali Mid-Point Manifold Crude Oil Flow Pipelines in North Kuwait Gas Compressor at GC 16 & Gas Reinjection at Minagish Lower Fars Pilot Project (LFPP) LPG Filling Plant at Umm Alaish Mina Al Ahmadi Refinery Upgrade - Phase 1 KOC KOC KOC KOC KOC KOTC KPC AMEC, Kuwait Not Appointed Not Appointed Not Appointed Safwan Petroleum Technologies Al Khorayef Commercial Co. Ltd Not Appointed 750 30 110 67 100 100 140 FEED EPC Bid EPC Bid Execution Execution EPC Bid Execution Fluor Corporation Almeer Techical Services Company/ Flour Corporation Arabi Enertech Mushrif Trading Petrofac, Kuwait Upgrade of South Ghudair Gathering Centre Flowlines Upgradation & General Support Services Maintenance Services for KOC Mina al Ahmadi - Doha West Pipeline KOC / SAT Saudi Arabian Texaco/ KGOC KOC Ministry of Energy (Electricity & Water) Penspen International (UK) 27 23 125 128 Execution Execution Execution Execution Heavy Engineering Industries & Shipbuilding Company (Heisco) Snamprogetti Kuwait Kharafi National, Kuwait Gas Booster Station 160 Maintenance of Mina Abdullah Refinery in the South KOC Kuwait National Petroleum Company (KNPC) KOC KOC KOC Ministry of Energy KNLOC KOC KOC AMEC, Kuwait 649 111 Execution Execution Jurassic Early Production Facility (EPF) Booster Station 132 Drilling Service in Kuwait - Contract 4 Al Zour North Project - Pipeline Packages New Base Oil Plant at Shuaiba Dry Crude Storage Tank at Gathering Centre 1 Gathering Center 14 in the South East Not Appointed Not Appointed Weatherford Oil Tools Middle East NJS Consulting/Al Dowailah Not Appointed Not Appointed Bridge and Roof Company Almeer Technical Services 1500 800 80 136 400 9 45 EPC Bid EPC Bid Execution EPC Bid Study Execution Execution Oman Project Title Sohar Bitumen Refinery Nimr C Full Field Water Injection Project Harweel Cluster Phase - 2 Client Sohar Industrial Port Company (SIPC) PDO Petroleum Development Oman (PDO) AMEC, Abu Dhabi Consultant EPC Contractor Mashael Group of Companies Al Hassan Engineering Petrofac International, Oman; Galfar Engineering & Contracting, Oman; Not Appointed Not appointed Not Appointed Budget ($M) 200 65 960 Status Execution Execution Execution Crude Oil Stabilisation Unit at Mukhaizna Duqm Refinery & Petrochemical Complex Occidental Mukhaizna Oman Refineries & Petrochemicals Company (ORPC) Sohar Refinery Company Oman Gas Company Octal Holding 55 7000 EPC Bid Study Asphalt Plant at the Sohar Refinery Complex Gas Compressor Station at the Nimr field Octal Petrochemical Project at Salalah Free Zone Engineers India Ltd. Tecnicas Reunidas / Worley Parsons Uhde Not Appointed Galfar Engineering & Contracting, Oman National Construction & Trading Co. LLC (NCTC) Petrofac International, Oman Bahwan Engineering Company (BEC) Not Appointed Not Appointed Not Appointed Gulf Petrochemicals Services, Oman Galfar Engg. & Cont. 80 36 700 FEED Execution Execution Kauther Gas Compression Project Marmul Polymer Flooding Project Two New Gas Pipelines in the South of the Sultante Depletion-Compression Project at Saih Nihayda Pipeline Between the Nimr Field and the Port City of Salalah Marmul Central Development - Phase 3 Qarn Alam EOR Project - Off-plot Package Qarn Alam EOR Project - On-plot Package Methanol Plant in Salalah PDO Petroleum Development Oman (PDO) PDO Petroleum Development Oman (PDO) Oman Gas Company Petroleum Development Oman (PDO) PDO PDO Oman Oil Company (OCC) / UK GTL Resources / Mubadala Development Company, Oman / Vitol Oman Oil Company (OCC) PDO Tecnicas Reunidas, Oman MEG WorleyParsons Jacobs Engineering 350 150 101 - 250 350 51 61 139 450 910 Execution Execution EPC Bid EPC Bid EPC Bid Execution Execution Execution Execution Dodsal GS Engineering & Construction Oil & Gas Pipeline in Musandum Saih Rawl Gas Depletion Project Not Appointed Bahwan Engineering Company (BEC) 500 545 EPC Bid Execution www.arabianoilandgas.com January 2010 Oil&Gas Middle East 41 PROJECTS QATAR Project Title Petrochemical Complex at Ras Laffan Low-Sulphur Condensate Storage Facility at Ras Laffan Client QP/Total Dolphin Energy Limited, Qatar Consultant Not Appointed EPC Contractor Not Appointed Qatar Engineering & Construction Company Budget ($M) 3000 212 Status Concept Execution Al-Shaheen Oil Refinery Block 4 North Acid Gas Removal Pant in Dukhan Melamine Project at Mesaieed Petrochemical Complex at Ras Laffan Subsea Pipelines Pkg. for Qatar Gas 3 & Qatar Gas 4 Oryx GTL - Phase 2 Gas Pipeline Network within Ras Laffan Industrial City Olefins Complex Condensate Refinery at Ras Laffan Qatar Petroleum Qatar Petroleum/Anadarko Qatar Petroleum (QP) Qatar Melamine Co. QP /ExxonMobil Corporation Qatar Petroleum (QP) QP/Sasol/Chevron Qatar Petroleum QP/ Shell Laffan Refinery Company Axens France Not Appointed Technip, Qatar Eurotecnica/Urea Casale Not Appointed Not Appointed Wintershall, Germany Not Appointed QECC Not Appointed J Ray McDermott, Dubai Not Appointed 5000 150 350 250 3000 100 1400 117 2500 602 EPC Bid Execution EPC Bid Execution FEED Bid Execution Study Execution Study Execution Mott MacDonald Qatar Not Appointed Technip, Qatar Larsen & Toubro, Qatar Not Appointed Daewoo Engineering & Construction, Qatar; GS Engineering & Construction, Qatar; J Ray McDermott Not Appointed Pearl GTL Project - Pipelines Package Barzan North Field Development QP/Royal Dutch/Shell ExxonMobil Corporation/Qatar Petroleum (QP) QP/Royal Dutch/Shell QP/Royal Dutch/Shell QVC Q Chem ll / Ras Laffan Olefins Co. Qafac QP/Royal Dutch/Shell JGC Corporation/Halliburton Chiyoda Corporation/J Ray McDermott 150 8000 Execution FEED Pearl GTL Project - Package C8 Pearl GTL Project - Storage Tanks Package QVC Expansion Project Ras Laffan-Mesaieed Ethylene Pipeline Methanol Capacity Expansion at Mesaieed Gas to Liquids Project-3 (Pearl GTL) JGC Corporation/Halliburton JGC Corporation/Halliburton Not Appointed Veolia/Saipem/Al Jaber CB&I Not Appointed Punj Lloyd 101 - 250 400 31 -100 45 501 - 750 16000 Execution Execution Study Execution FEED Execution Mustang Tampa JGC Corporation/Halliburton Not Appointed Consolidated Contractors International Company (CCC) Uhde/Tefken NPCC Maritime Industrial Services Not Appointed Low Density Polyethylene Unit at Mesaieed Al Shaheen Project - Packages 17 & 18 HFO Bunkering Project Condensate Refinery at Ras Laffan - Phase 2 Al Khaleej Gas Development Phase 2 - Onshore Package Plateau Maintenance Project Al Shaheen Project - Package 13 Two New Glycol Regeneration Trains in Dukhan Ras Gas 3 - Trains 6 & 7 Qafco V Qapco Maersk Oil Qatar Qatar Petroleum Laffan Refinery Company Exxon Mobil/ Ras Gas Qatargas Maersk Oil Qatar Qatar Petroleum Rasgas 3 Qafco Uhde 549 600 60 800 1600 1200 185 300 13000 3200 Execution Execution Execution Study Execution EPC Bid Execution EPC Bid Execution Execution Chiyoda Technip, Qatar Chiyoda/Technip Not Appointed J Ray McDermott Worley Parsons Chiyoda Foster Wheeler Not Appointed Not Appointed Chiyoda/Technip Saipem/ Hyundai Engineering & Construction Co Maintenance on Platforms at Measieed Refinery Headworks for Muaither RPS and Associated Pipelines Qatar Petroleum (QP) Qatar General Electricity & Water Corporation (Kahramaa) Qatargas DEL QP/Royal Dutch/Shell ExxonMobil Corporation/ RasGas Company limited (Ras Laffan Liquefied Natural Gas Company ); Qatar Petroleum Qatar Petroleum QP/Royal Dutch/Shell Washington Group International JGC Corporation/Halliburton Chiyoda Corporation, Qatar Al Waha Contracting 50 109 EPC Bid Execution Receiving & Loading Facility at Ras Laffan Common Sulphur Project Pearl GTL Project - Wellhead Platforms Package Al Khaleej Gas Development Phase 2 - Offshore Package Qatar Kentz Not Appointed J Ray McDermott J Ray McDermott, Qatar 100 101 - 250 300 300 Execution FEED Execution Execution Gas Sweetening Facilities Integrated Project at Mesaieed Doha Urban Pipeline Relocation Project Pearl GTL Project - Package C2 Worley Parsons Tebodin JGC Corporation/Halliburton Not Appointed Punj Lloyd Linde 350 181 900 EPC Bid Execution Execution EARTH ROD MARCONITE MARCONITE is a tried, tested and proven international solution and has been used in the following areas: MARCONITE CONCRETE `UNIQUELY EFFECTIVE EARTHING SYSTEM' MARCONITE - the ONLY choice for Quality earthing and grounding projects! 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Tel: +44 (0) 2084284345 / email: email@example.com 42 Oil&Gas Middle East January 2010 www.arabianoilandgas.com PROJECTS SAUDI Project Title Marjan, Zuluf and Safaniya Oil Fields Upgrade South Rub Al Khali Gas Development 5 Sulfur Recovery Units in Uthmaniyah & Shedgum Shbab-1 Oil Pipeline Project Sasref Refinery - Ultra-low Sulphur Diesel Complex Jubail-2 Export Refinery - Pipeline and Offsite Package Onshore Maintenance Potential Project Sasref Refinery - Ultra-low Sulphur Diesel Complex Gas Oil Separation Plant at Hout Field in Divided Zone Client Saudi Aramco SRAK Saudi Aramco Saudi Aramco Sasref Saudi Aramco/Total Saudi Aramco Sasref Al Khafji Joint Operations (KJO) Consultant WorleyParsons EPC Contractor J Ray McDermott KCA Deutag Drilling Imad Company for Trading & Contracting Stroytransgaz Budget ($M) 250 2000 150 200 350 300 300 350 400 Status Execution Execution Execution Execution Execution Execution Execution Execution Execution ABB Lummus Global Technip ABB Lummus Global Gulf Consolidated Contractors (GCC) RHM/CAT/Suedrohrbau ABB Lummus Global, Saudi Arabia Toyo Engineering Company ABB Lummus Global, Saudi Arabia Consolidated Contractors International Company (CCC) Not Appointed Tecnicas Reunidas (TR) New NGL Facilities at Berri Gas Plant Jubail-2 Export Refinery - Distillation and Hydrotreating Petrochemical Complex - Polyolefins Package Ras Tanura Refinery Ras Abu Ali Upgrade Wasea Bulk Plant Shedgum - Yanbu NGL Line Expansion - Phase 2 Ras Tanura Refinery - DHT Unit Refining & Integrated Petrochemicals Complex Ebgaig - Al Khobar Natural Gas Pipeline Ethylene Amines Project At Jubail Saudi Aramco Saudi Aramco / Total SCP Saudi Aramco Saudi Aramco Saudi Aramco Saudi Aramco Saudi Aramco Nama SWCC Arabian Amines Company Not Appointed 300 1200 1200 8000 160 250 200 500 1500 100 300 Concept Execution Execution FEED Execution EPC Bid Execution Execution Study FEED Execution Parsons E&C WorleyParsons Zuhair Fayez Partnership Consultants Daelim Industrial Company Not Appointed Bonatti S.p.A Not Appointed Suedrohrbau Foster Wheeler Samsung Saudi Arabia Ltd. Not Appointed Not Appointed Jacobs Engineering / Burns & McDonnell Engineering Axens Foster Wheeler Clough-Zuhair Fayez Partnership Hyundai E&CC / Hanwha E & C Jubail - 2 Export Refinery - Aromatics Plant Jubail-2 Export Refinery - Coker Unit Package Karan Field Exploration - Platforms Package New Domestic Refinery in Jubail Jubail Petrochemical Complex - Phase 3 Petrochemicals Complex in Yanbu Karan Field Exploration - Onshore Elements Package - Gas Facilities Saudi Aramco / Total Saudi Aramco / Total Saudi Aramco Saudi Aramco Sipchem Saudi Aramco / Sabic Saudi Aramco Samsung Saudi Arabia Ltd. Samsung Saudi Arabia Ltd / Chiyoda Corporation J Ray McDermott Not Appointed Not Appointed 650 850 500 5000 8000 3000 600 Execution Execution Execution EPC Bid EPC Bid Study Execution Not Appointed Foster Wheeler /A. Al Saihati , A. Fattani & Al Othman Consulting Engineering Company (Sofcon) Not Appointed Hyundai Engineering & Construction Company (HDEC)/ Petrofac Not Appointed Jizan Economic City Export Refinery Ammonia Plant In Jubail Al Khafji Oil Processing Facilities Expansion Yanbu Export Refinery - Hydrocracker Package Jubail-2 Export Refinery - Storage Tank Package Karan Field Exploration - Offshore Elements Package Fertiliser Complex Expansion at Jubail - Urea & Ammonia Plant Wafra Steam Injection - Phase 2 Jubail - 2 Export Refinery - Plant Utilities Package Manifa Oil Field Redevelopment - Onshore Package Manifa Oil Field Redevelopment - Platforms Package Ras Tanura Petrochemicals Complex ASU at Jubail Petrokemya - 4 in Jubail Upgrade of the Oil Refinery at Yanbu Ministry of Petroleum and Mineral Resources Sipchem Al Khafji Joint Operations (KJO) Saudi Aramco/ConocoPhilips Saudi Aramco / Total Saudi Aramco Saudi Arabian Fertilizer Company (Safco) Chevron / Saudi Aramco Saudi Aramco / Total Saudi Aramco Saudi Aramco Saudi Aramco / Dow National Industrial Gas Company (GAS) Petrokemya Saudi Aramco Mobil Refinery Company Ltd. (Samref) Sabic / Saudi Kayan Petrochemical Company Technip / Aker Kvaerner Worley Parsons, Saudi Arabia Kellogg Brown & Root Technip Foster Wheeler Kellogg Brown & Root (KBR) Technip, Saudi Arabia Petrocon Arabia, Saudi Arabia Haldor Topsoe 12000 200 400 1200 1000 1000 150 500 150 2360 800 17000 300 10 2000 FEED FEED FEED EPC Bid Execution Execution EPC Bid Execution Execution Execution Execution FEED Execution FEED Execution Not Appointed Not Appointed Not Appointed Punj LIoyd Ltd / Petro Steel J Ray McDermott Not Appointed Saudi Arabian Texaco INC SK Engineering & Construction JGC Corporation / TR / Snamprogetti J Ray McDermott, Saudi Arabia Not Appointed Samsung Saudi Arabia Ltd. Not Appointed Worley Parsons, Saudi Arabia Kayan Petrochemicals Complex at Jubail - HDPE Package Huanqiu Contracting & Engineering Corporation (HQCEC) 600 Execution UNITED ARAB EMIRATES Project Title Replacement of Oil & Water Pipelines Adnoc Storage Facility in Hamriyah Free Zone Borouge Complex Expansion - Phase 2: Offsites and Utililies Hail Field Development Crude Oil Pipeline Replacement OGD-3/ AGD-2 - Pack 2 OGD-3/ AGD-2 - Pack 4 Green Diesel Project in Ruwais Umm Shaif Gas Injection Facilities Modifications to 41 Well Head Towers Zakum West Gas Processing Facilities Project Asab Full Field Development Bab Oil field Development - Phase 2 Gas Processing Facility in UAQ Umm al Dalkh Full Field Development Sahil Phase-2 Development Onshore and offshore Sour Gas Development IGD - Gas Processing Platform - Pack 6 Borouge Complex Expansion - Phase 2: Olefins Conversion Unit Fertil Plant Expansion OAG Network-Das Island Compression Facilities OAG Network-Pack 2 - Das Island to Ras Al Qila Pipeline Client Adma - Opco Takreer AUH Polymers Company ADCO / Gasco Zadco GASCO GASCO Takreer Adma - Opco Adma - Opco Adma - Opco ADCO ADCO Gulf Energy Company Zadco ADCO ADNOC / ConocoPhilips Adnoc / Adma-Opco AUH Polymers Company Fertil Adgas Gasco Consultant Technip / Worley Parsons, Abu Dhabi EPC Contractor Costain Not Appointed Budget ($M) 900 150 1230 749 300 1460 1420 350 1597 150 300 1000 805 120 650 250 10000 405 300 1200 610 241 Status Execution EPC Bid Execution Study EPC Bid Execution Execution Execution Execution EPC Bid Execution Execution Execution EPC Bid Study Execution EPC Bid Execution Execution Execution Execution Execution Foster Wheeler Not Appointed Technicas Reunidas Not Appointed Not Appointed Bechtel Bechtel Wood Group Mustang WorleyParsons WorleyParsons Technip Foster Wheeler Technip Technip/Kvaerner Not Appointed Foster Wheeler Fluor Corporation Fluor Corporation Abu Dhabi ABB Lummus Global, Abu Dhabi Jacobs Engineering Fluor Corporation Fluor Corporation Bechtel Snamprogetti GS Engineering & Construction Hyundai Heavy Industries Not Appointed Technip / NPCC Petrofac SK Engineering & Construction Company Not Appointed Not Appointed Tecnicas Reunidas / CCC Not Appointed NPCC Samsung Corporation, Dubai Samsung / Uhde Technip NPCC 44 Oil&Gas Middle East January 2010 www.arabianoilandgas.com Under the patronage of H.H. General Sheikh Mohammed bin Zayed Al Nahyan Crown Prince of Abu Dhabi & Deputy Supreme Commander of the UAE Armed Forces Hosted by Principal Sponsor Associate Sponsor Turning Energy Challenges Into Business Opportunities 18-21 January 2010, Abu Dhabi National Exhibition Centre World Future Energy Summit, the world's foremost annual meeting, will bring together world leaders, policy makers, industry leaders, investors, scientists, researchers and academia to identify practical and sustainable investment and innovation solutions for today's energy challenges. � 45,000 sqm exhibition space � 20,000 attendees � 3,000 summit delegates � 700 media representatives � 600 world leading exhibitors � 140 world renowned speakers � 100 participating countries � and you...... Join the leaders, be part of the solution To reserve your seat at the Summit or to Visit the Exhibition Register today at www.WorldFutureEnergySummit.com/register Organised by Platinum Sponsors International Broadcast Partner Regional Broadcast Partner Regional Media Partner PROJECTS Project Title OAG Network-Pack 3 - Ras Al Qila to Habshan Pipeline OGD-3/ AGD-2 Pack 3 Borouge Complex Expansion - Phase 2: Ethane Cracker Development of Qusahwira & Bida Al-Qemzan Fields Taweelah-Qidfa Gas Pipeline Asab Gas Development (AGD) Modifications - Package 1 Jebel Dhanna Crude Oil Storage Tanks LNG Storage Hub in Techno Park, Dubai Umm Al Lulu Oil Field Development New Refinery in Fujairah Borouge Complex Expansion - Phase 3: PDH & Phenolics Complex Abu Dhabi Gas Grid Zirku Production Facilities Debottlenecking Upper Zakum - Fujairah Oil Pipeline Flowlines & Wellhead Installations to ADCO Client Gasco GASCO AUH Polymers Company ADCO DEL GASCO Adco DMCC / Techno Park / LNG Impel Zadco AGOL AUH Polymers Company Abu Dhabi Gas Industries Company (Gasco) Zadco IPIC/Conoco Phillips Abu Dhabi Company for Onshore Oil Operations (ADCO) Emarat Margham Dubai Est. Takreer Adnoc / Adgas Zadco Takreer ADCO BP Exploration Operating Co Ltd(BP Sharjah) Takreer Takreer Adma - Opco Gasco / Adnoc Gasco Zadco Adco ADNOC / Gasco Consultant Fluor Corporation Bechtel EPC Contractor CCC Bechtel Linde Budget ($M) 400 1241 1100 1800 418 408 100 2000 1500 1000 1000 1000 450 3290 100 Status Execution Execution Execution Execution Execution Execution EPC Bid FEED EPC Bid Study Study Pre FEED Bid EPC Bid Execution Execution Washington Group International / Veco Engineering National Petroleum Construction Company Stroytransgaz, Abu Dhabi Veco Engineering ILF Consulting Technip Not Appointed Not Appointed Tebodin Middle East, Abu Dhabi Mott MacDonald Not Appointed Terasen International ( Lootah BC Gas ) Technip, Abu Dhabi WorleyParsons Mott MacDonald Not Appointed Not Appointed Not Appointed Not Appointed Not Appointed China Petroleum Construction Corporation Al Husam General Contracting Tank Terminals in Fujairah Khubai-Margham Gas Pipeline Integrity Enhancement of Fire Protection System at Umm Al Nar Refinery Integrated Gas Development (IGD) - Das Island Process & Utilities Package Satah Full Field Development Expansion of Sulphur Handling Facility in Ruwais Cathodic Protection on Wellhead Casing in Bab and Ruwais Fields Gas Exploration Facilities - Kahaif, Moveyid and Sajaa Penspen International Parsons Brinkerhoff Not Appointed Fluor Corporation Tebodin Middle East, Abu Dhabi Washington Group Int'l ILF Consulting Engineers, Abu Dhabi AMEC, Abu Dhabi Not Appointed Not Appointed Not Appointed Hyundai Heavy Industries(HHI),Abu Dhabi Not Appointed Dodsal EMDAD LLC, Abu Dhabi/ Alsa Engineering Not Appointed 22 30 15 1000 250 272 27 500 EPC Bid FEED EPC Bid Execution FEED Execution Execution FEED Expansion of Ruwais Refinery - Package 1 Expansion of Ruwais Refinery - Package 2 New SCADA System at Umm Shaif and Lower Zakum Integrated Gas Development (IGD) - Ruwais Storage Tanks Package NGL Pipeline from Asab to Ruwais Gas Injection Topsides at Upper Zakum Shah Full Field Development Integrated Gas Development (IGD) - Ruwais 4th NGL Train Package Bechtel Bechtel WorleyParsons Fluor Corporation VECO Technip Foster Wheeler Fluor Corporation, Abu Dhabi SK Engineering & Construction Company GS Engineering & Construction Telvent Chicago Bridge & Iron (CB&I), Dubai Dodsal Not Appointed CCC / Tecnicas Reunidas Petrofac International / GS Engineering & Construction 2100 3100 50 533 153 12 250 2100 Execution Execution Execution Execution Execution FEED Execution Execution reliability focused engineering dry gas mechanical seals & repair engineered mechanical seal support systems advanced air coolers bearing protection mechanical seals � � � � � www.aesseal.com contact: don van rooyen email: firstname.lastname@example.com tel: +971 4 2669595 / +971 2 6778700 cell: +971 (0) 508120142 solutions extending equipment life 46 Oil&Gas Middle East January 2010 www.arabianoilandgas.com CLASSIFIEDS OFFICIALLY SUPPORTED BY: Sour Oil & Gas Advanced Technology 2010 6th International SOGAT Conference 4th International CO2 Forum SOGAT Exhibition SOGAT Workshops on � Sulfur Recovery, Processing & Handling � Amine Treating � Acid Gas Injection � H2S Safety March 28 � April 1: Hilton Hotel, Abu Dhabi, UAE : www.sogat.org www.sogat.org www.sogat.org www.sogat.org Official Publication: Organised by: Reem Masoud SOGAT 2010 Secretriat Dome Exhibitions PO Box 52641 Abu Dhabi UAE www.sogat.org email: email@example.com Tel: +971 2 674 4040 Fax: +971 2 672 1217 � � � � � � � � P.O. Box 2752, Dubai, U.A.E Tel: +971 (4) 3472646 Fax: +971 (4) 3472148 www.arabianbusiness.com/energy January 2010 Oil&Gas Middle East 47 FACE TO FACE FACE TOFACE How do you lead a company in a recession? In my role as a leader the big challenge is keeping my team focused on the customer and delivering solutions that bring value despite tough macro economic conditions. The key is all about communication, both with team leaders around the world and making sure we always listen to our customers to meet the conditions they are in. Has day to day management changed then? As a company we have been very careful with travel in 2009. However, my travel budget is probably two or three times higher because staying in touch with all the relevant teams is absolutely vital. What's the most exciting project you are involved in? Personally it's got to be the Pearl GTL project in Qatar. That's a huge project, literally one of the largest in the world. Honeywell was selected by Qatar Shell to design and implement the integrated process automation and control system for the world's largest Gas to Liquids (GTL) plants. The project covers the whole upstream and downstream spectrum, it's very exciting. Norm Gilsdorf, president of Honeywell Process Solutions The big projects are still out there They recently announced the opening of the control room there, so it's great to be part of such an important project. Where will the hotspots of activity be in 2010? Today we see more projects coming up in the Caspian and Arctic regions, and in the Middle East the principal activity driver is gas. Projects geared around getting gas out of the ground and marketing that will be big, and downstream we expect to see more projects in the years to come. It stands to reason as this is where the feedstock is. How soon those come up will be linked to the general economic recovery and demand for petrochemical products. Are you pitching for business on the UAE's huge sour gas project in Abu Dhabi? We have had discussions regarding the Shah field development in Abu Dhabi. We are very strong in process control, but also crucially fire and safety, as well as our H2S detection solutions. We are well placed to provide an integrated solution. In Kazakhstan we are working on some notoriously sulphur rich projects and we have been working on those for a number of years now, so we have some excellent experience in that particular field. Are things looking up for upstream players in the region? I look at the region as one of the first areas to emerge from last years prevailing conditions back to growth. We have already seen positive figures from Asia and I think it will spread here next. The UAE for us is a very important centre, and although we have the capability in all the GCC countries to serve domestic markets, Abu Dhabi is our hub. Oil production projects in the Middle East have continued throughout the last economic cycle, so comparatively speaking the Middle East is faring well. What's the project pipeline like in 2010? I would say that the projects are still available and out there, but decisions are certainly taking longer on these projects. Big oil and gas projects take several years to be designed, configured and costed, and when the economic crisis hit, a lot of the firms which were engaged in these big ticket projects wanted to re-evaluate whether they had the best costs. We have a good number of projects that we have won, and we remain optimistic about the year ahead. "We have had discussions regarding the Shah field development in Abu Dhabi" Norm Gilsdorf, president of Honeywell Process Solutions. 48 Oil&Gas Middle East January 2010 www.arabianoilandgas.com Need Electric Heaters For Process Applications For Use In Potentially Hazardous Atmospheres? Okazaki designs and build electric process heaters to meet your specific application and requirements. Our design team offers support from the FEED study through to the full lifecycle of the heater. Represented in the Middle East By Petro Middle East PO. Box 802, Abu Dhabi Tel: +971 2 6212140 Email: firstname.lastname@example.com OKAZAKI MANUFACTURING COMPANY, EUROPEAN OFFICE : Ashwood House, 66 Cardiff Rd, Glan-Y-LLyn, Taffs Well, Cardiff, CF17 7AF, Wales, UK Tel: +44 (0) 2920 814 333 | Email: email@example.com | www.okazaki-mfg.co.uk