oil & gas middle east

NEWS, DATA AND ANALYSIS FOR THE MIDDLE EAST’S ENERGY PROFESSIONALS August 2009 • Vol. 5 Issue 08

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CONTENTS

www.arabianoilandgas.com August 2009 Oil&Gas Middle East 1

AUGUST 2009

15 NEWS ANALYSISChina’s economy has continued it’s sole onward march, consuming more monthly like for like oil in 2009 than in 2008. But where is the ‘recovery’ heading?

16 OPEC OUTLOOK 2030OPEC headquarters has released its World Oil Outlook 2009 report, extending projections to 2030. Will the world be a vastly different place? We think not.

18 COVER STORYAfrica’s biggest company and Al-geria’s lion, Sonatrach is on course to spend $65 billion in fi ve years.

26 BUYER’S GUIDE Indespensible checklist for all cable procurement managers.

26

REGULARS

2 WEB UPDATE

4 COMMENT

7 REGIONAL NEWS

15 NEWS ANALYSIS

39 O&G MARINE

47 PROJECTS

52 RIG STATS

18

33 ASK THE EXPERTBilal Abdallah of Honeywell Process Solutions answers the burning questions surrounding asset management strategies.

35 NEW KID IN TOWNMiles Walker, CEO at QMENA, explains why now is the time to launch a new oilfi eld service company in Saudi Arabia.

39 OFFSHORE LNG FOCUSDNV’s Conn Fagan explains how the latest generation of FSRUs and FPSOs will be classed.

52 TENDER TRACKERTop picks and tender listings from ArabianOilandGas.com

56 FACE TO FACEKurt Glaubitz, upstream rela-tions team leader at Chevron explains how the US oil giant is hoping to boost production in the Saudi - Kuwaiti parti-tioned neutral zone.

39 Broad integration. Deep science. Open architecture.

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2 Oil&Gas Middle East August 2009 www.arabianoilandgas.com

WEB HIGHLIGHTS

ONLINE SPECIAL REPORT

The online home of:

10 days that shook the oil worldArabianOilandGas.com brings you the top ten oil industry events that shook the world. “The events are ranked chronologically, not in order of importance, and include incidents that had widespread political repercussions rather than just being the largest or first,” says Online Editor Kevin Baxter. “The list prompts some interesting questions, such as: Would OPEC have ever been founded if President Eisenhower had not placed a tax on Middle East oil imports? What would the early 90s oil markets have looked like if Iraq had not invaded Kuwait? We’ll never know.”

Khalid al-Falih says figure was reached after start-up of three fields, namely Nuayyim, Khurais and Shaybah.

ArabianOilandGas.com

Oman Oil Company is to invite bids for an EPC contract, worth between $300 million and $500 million, for the construction of an oil and gas pipeline and processing plant.ArabianOilandGas.com

Joint venture to design and build floating liquefied natural gas vessel formed between Samsung and Technip.

ArabianOilandGas.com

Abu Dhabi energy giant continues 2009 spending spree with acquisition of DSM Energie Holdings, which produces around 5000 barrels of oil equiva-lent gas each day.ArabianOilandGas.com

BREAKING NEWS AND VIEWS FIRST

SHELL SIGNS FLNG DEAL WITH SAMSUNG JV

OMAN INVITES BIDS FOR $500M CONTRACTS

ARAMCO CEO SAYS CAPACITY AT 12MBPD IN JUNE

TAQA PAYS US$404M FOR DUTCH OIL CO.

1 US ambassador stakes out criticism

of Iraq’s oil output

2 Oman looks to award US$7bn woth

of oilfi eld service deals

3 Chevron shuts Kuwait offi ce due

to lack of work

4 Samsung awarded $300m ASU

contract by SABIC

5 BP may hand control of Rumaila

to CNPC

EDITOR’S CHOICE

SPECIAL REPORT

Wolfram Lacher, Control Risks analyst on Egypt’s energy sectorArabianOilandGas.com

SPOT POLL

41% Very well thanks

39% Better than most

11% Slow but manageable

09% We’re suffering badly

MOST POPULAR NEWS

HOW IS THE MIDDLE EAST UPSTREAM SECTOR FARING IN 2009?

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COMMENT

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W ith summer well and truly upon the Gulf, many oil company employees will be looking forward to a well

earned break abroad with the family. As temperatures soar, typically the business environment across the Arabian Peninsula cools. Many locals and expatriates alike schedule annual family vacations around the summer season, but this year isn’t quite like any other.

After a particularly shaky start to the year, it seems oil and gas support indus-tries have had something of an unseason-able push, culminating in a flurry of major contract announcements in June and July. There have been notable winners, but most crucially it seems that the national oil companies around the Gulf have stuck to their word and ploughed ahead with several landmark projects.

Many managers may be wondering when and how this business boost will filter down to demand for their services and prod-ucts, and whether this year it may be better to hang around and be on hand throughout the summer months. Indeed, I’m sure that many who do choose to take a holiday now will remain on call throughout their ‘break’

Seize the seasonSummer may be the best time to sit down to business

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

Published by and © 2009 ITP Business Publishing, a member of the ITP Publishing Group Ltd. Registered in the B.V.I. under Company Registration number 1402846.

The relaxed settings offered by upcoming corporate events represent an opportunity not be be missed.

BPA Worldwide Circulation StatementAverage Qualified Circulation: 7,935 (July - Dec 2008)

ready to hop on a jet at a moment’s notice if the right client calls.

There may be another reason why this August is the one to skip a holiday too. As the Holy Month of Ramadan begins in a couple of weeks, the opportunity to take advantage of the corporately hosted Iftar and Souhoor celebrations may offer a chance to meet and mix with industry contemporaries, and pick over what was a very tough six months at the start of this year.

Of course, such occasions aren’t the place to target potential clients with aggres-sive pitches, but the opportunity to meet and relax with fellow upstream profes-sionals seems like one not to be missed in the current climate. If you’re new to the Gulf, these events are a must-attend, and offer a great experience and invaluable insight into local traditions and customs. If you’re an expat-veteran, perhaps it’s time to embrace these opportunities again.

Either way, I hope to see you all there. Ramadan Kareem.

Daniel Canty, Group EditorE-mail: [email protected]

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August 2009 Oil&Gas Middle East 7www.arabianoilandgas.com

GASCO’s $9.2bn awards A

bu Dhabi Gas Indus-tries (GASCO), has confirmed that it has awarded contracts

worth a total of US$9.2 billion for engineering, procurement, construction and commis-sioning (EPC) works for the Integrated Gas Development (IGD) Project to be built at Habshan and Ruwais.

GASCO, a subsidiary of Abu Dhabi National Oil Company (ADNOC) said that the four packages were awarded on a lump sum turn key basis and will cover the construction of a process plant, utilities and offsites, the Ruwais fourth natural gas liquids (NGL) train and Ruwais storage tanks.

A joint venture between the contractors JGC of Japan and Tecnimont of Italy were awarded the process plant contract which is worth a total of $4.7 billion. This is the third contract Tecn-imont has won in the MENA region this month after securing a $61.5 million contract with Sonatrach in Algeria and a $22 million FEED contract with an ADNOC joint venture Borouge.

The $1.7 billion offsites and utilities contract was awarded to Hyundai Engineering and Construction of South Korea.

Petrofac continues its run of big contract awards in 2009 by being awarded the

Abu Dhabi giant pushing ahead with Habshan and Ruwais Integrated Gas Development

$2.1 billion Ruwais fourth NGL train contract.

The UK-based company will carry out the works in a joint venture with South Korean outfit GS Engineering. The Ruwais storage tanks package was US company CBI and is worth a total of $530 million.

GASCO said in a statement that the initial phase of the projects will commence from the respective contractors’ home offices before moving to the respective sites at Habshan and Ruwais for construction activities. The completion dates

for all works is the third quarter of 2013.

The IGD Project will be built at a greenfield location in Habshan, known as Habshan 5. The site will house four gas processing trains with a combined processing capacity of 2 billion standard cubic feet per day (scfd) of gas.

Of this, 1 billion scfd of gas will be transferred to the offshore oil field of Umm Shaif via Das Island and pumped into the field to increase production. The rest of the gas will be sold domestically in the UAE.

GASCO said that the projects are expected create around 30 000 jobs at the peak of construction activities. The IGD Project will also provide a permanent link between offshore and on shore facili-ties of ADNOC and will provide operational flexibility for oil and gas production.

LEAD NEWS

Petrofac continues its run of big contract awards in 2009 having snared the $2.1 billion Ruwais fourth NGL train contract.

LEAD NEWS

August 09

214

trillion cubic feet – UAE’s natural gas reserves – 92% of which is in Abu Dhabi.

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REGIONAL NEWS

Shah Field sulphuric headacheSource says superheated pipeline could cause project costs to rise by up to 20%The budget for the Shah sour gas field, the joint venture be-tween Abu Dhabi National Oil Co (ADNOC) and ConocoPhil-lips, may see its budget rise by US$2 billion due to the construc-

The technical issues surrounding the contract involve keeping the sulfur in a liquid form. This means that the pipe-line will need to keep a constant temperature of between 125-155 degrees Celsius, with only minor fluctuations acceptable.

The reserves held in the Shah gas field have been cited by Abu Dhabi as an essential requirement to the United Arab Emirates’ domestic energy requirements.

The Shah Gas Field is 180 km southwest of Abu Dhabi.

The joint venture will involve the construction of a one billion ft3 per day gas processing plant, new gas and liquid pipelines and the sulfur exporting facility.The pipes capable of transporting molten sulphur could drive project costs up by 20%.

REGIONAL NEWS

The massive production con-tract for the Rumaila oilfield in Iraq that was recently awarded to a BP-led consortium, could still be blocked by the country’s parliament despite reports to the contrary by the Oil Ministry.

A senior government offi-cial made the claims to news agencies that the agreement could still be vetoed by senior lawmakers in Baghdad.

“The government believes that such a subject is included

BP’s Iraq development contract may yet be vetoedin its authorities, according to existing law, but if parliament finds these contracts or this [bidding] round ... are not bene-ficial, parliament can prevent the government,” parliament speaker Ayad al-Samarai said in newswire reports.

“Parliament can stop the government and its decision would be binding,” he added.

The comments come after the controversial live televi-sion auction at the end of June

that resulted in the super giant Rumaila field being awarded to the consortium that is led by BP and includes the China National Offshore Oil Corp (CNPC).

Additional complications arose in late July, when the trade union representing workers of Iraq’s state-owned Southern Oil Company (SOC) threatened to prevent exploitation of the Rumaila field. The absence of an oil law in the Iraq is also proving problematic for the Oil Ministry.

The Naher al-Umran gas refi nery, 40 kms north of Iraq’s southern city of Basra.

pipeline will mean that the project cost could rise by 20% to $12 billion.

“The Shah project is moving ahead but at a cost of $12 billion instead of $10 billion because of difficulty in finding people to do the sulfur pipeline,” the source is quoted by Zawya Dow Jones as saying.

ADNOC announced four tenders for the Shah field at the Gastech 2009 conference held in Abu Dhabi in May. However, the package covering the construction of the 275 kilo-metre pipeline that will transfer the sulfur to Ruwais where it will be granulated was not released due to a lack of suitable forth-coming bidders.

tion of a sulfur gas pipeline. Sources close to the project

have been quoted in interna-tional media saying that the complex nature of the what will be the world’s largest sulfur

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REGIONAL NEWS


Project review in 2013El-Badri says over 110 OPEC upstream projects are going aheadDespite market fluctuation in the run up to the US driving season, OPEC secretary gen-eral Abdallah El-Badri has said that the overwheliming major-ity of OPEC upstream projects are going ahead, with a handful postponed, but up for review in 2013.

El-Badri noted that an exces-sively high oil price could hamper the global economic recovery, but the safe level for producers and consumers has not yet been reached.

Speaking exclusively to Oil & Gas Middle East the secre-tary general said: “I always encounter the question of what is the right oil price, but truly I don’t have a price tag. OPEC does not want to see a very high price, but neither a low price, because overall this increases volatility in the market.”

With oil futures trading around the US$66 - $70 window during July, El-Badri said that a moderate price range best serves the interests of both consumers and producers, and a sustainable and stable price is his goal.

El-Badri declined to be drawn on an exact target figure, but conceeded, “An oil price of up to $80 would not harm world economic recovery or growth, and the range $70 - $80 is a moderate price.”

El-Badri said that lessons should be learned from the vola-tility experienced in 2008, and that safegaurds should be put in place.

“We cannot eliminate specu-lation and we cannot eliminate hedging, these are fact of the market, but guidelines and a standard must be put in place so that excessive speculation and hedging activity does not nega-tively impact the oil market.”

With demand projections for the second half of 2009 still well below production capacity, El-Badri said that OPEC member state investment is ploughing ahead despite the perceived

Secretary General Abdallah El-Badri says the majority of OPEC projects are going ahead.

HIGHLIGHTS

A Kuwait Oil Company (KOC) pipeline that leads to the Ahmadi port leaked a substantial amount of oil in July. A KOC spokesperson conmfi rmed the leak has been brought under control. The Kuwaiti news agency Kuna reported that approximately 250 barrels of oil was leaked out of the pipeline before a specialist team isolated the line and plugged the hole. An investigation into the incident has been launched.

Gulf Keystone Petroleum an-nounced in July that it has been awarded “signifi cant” interests in two production sharing contracts (PSCs) by the Kurdistan Regional Government (KRG).The British ex-ploration and production company said the contracts cover the explo-ration, development and produc-tion of hydrocarbon resources in the Sheikh Adi and Ber Bahr blocks in Iraqi Kurdistan.

Pakistani engineering company Descon Engineering, has been awarded a contract worth US$100 million to carry out the construc-tion of air separation units at Gasco at Ruwais. Descon will carry out the civil and mechanical works for the Mirfa-1 Project. Construc-tion is set to begin in August and slated for completion in Q1 2011. The two plants will supply a total of 670 000 cubic metres per hour of nitrogen for injection into the onshore condensate fi eld at Hab-shan in Abu Dhabi.

slump, but some upstream projects have been postponed for up to four years.

“Right now we have over 150 projects in upstream oil and natural gas liquids (NGLs), but at this time, because there is excess production capacity, we are postponing 35 projects until after 2013.”

Projects on hold for review were orig-

inally reported to be postponed until

2030. Secretary El-Badri has stressed

the projects will be considered again

in 4 years. Read the full and exclusive

interview with the OPEC secretary

general at ArabianOilandGas.com

CORRECTION

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REGIONAL NEWS

Exxon spuds well in LibyaUS supermajor ExxonMobil has announced that its affiliate, Exx-onMobil Libya Ltd, has started drilling the first deepwater ex-ploration well in Libya.

The A1-20/3 well is being drilled in Contract Area 20 (CA 20) located offshore in the Sirte Basin, northeast of the city of Misrata, in the Libyan Mediter-ranean Sea. “We are pleased to start drilling our first deep-water exploration well in Libya based on the rigorous technical work conducted by our Libyan National and expatriate scien-tists, and in collaboration with the National Oil Corporation (NOC) to progress our explo-ration program,” Phil Goss, president of ExxonMobil Libya Limited, said. The company said that the rig, contracted from Noble Africa Limited, is capable of operating in water depths up to 2,195 meters, and can drill to a depth of 9,144 meters. Else-where in Libya, ExxonMobil Libya Limited has completed

First deepwater drilling begins in Libya’s Mediterranean waters

two 3D seismic surveys in offshore Contract Areas 20 and 21, and three 2D seismic surveys in offshore Contract Areas 44, 20, and 21.

OPEC member Libya, holds the largest proven oil reserves in Africa, followed by Nigeria and Algeria. The country has total proven oil reserves of 41.5 billion barrels as of January

Libya has approximately 41 billion barrels of oil, 80% of which is in the Sirte Basin.

2007, up from 39.1 billion barrels in 2006. About 80% of Libya’s proven oil reserves are located in the Sirte basin, which is responsible for 90% of the country’s oil output. Over the next six years, Libya would like to see oil production capacity increase by 40 percent from 1.8 million barrels per day (bbl/d) to 3 million bbl/d by 2013.

Dubai-based exploration and production company Dragon Oil announced that average pro-duction rose 11% in the first half of 2009 compared to the corre-sponding period of 2008.

“The first six months of 2009 were eventful on the operational and corporate fronts,” CEO Jaleel Al Khalifa said.

“Due to changes in the drilling programme and certain operational issues the average production for 1H 2009 was below expectations. However, we remain committed to our drilling programme and expect up to 15% growth in annual production on average over the years 2009-11,” he added.”

Dragon Oil’s crude oil sales for the period rose by 40% compared to 2008. The company sold 4.9 million barrels although the average price received for its crude dropped 54% to around the US$50 mark.

Average daily production grew to 42 808 barrels per day (bpd) from 38 482 bpd in 2008.

Dragon Oil ups production 11%

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REGIONAL NEWS


Dubai yard renews BP allianceUAE ship repair, conversion and new building yard Drydocks World – Dubai has announced that it has renewed its long-standing association with BP Shipping with the signing of a new alliance agreement.

Drydocks World said the agreement will see the two companies work closely to achieve “optimum production levels” based on mutually agreed terms, which includes strict implementation of accepted standards in safety, quality and environmental protection.

A joint team headed by Ravi Senaratne, commercial director, Drydocks World – Dubai and Andrew Cassels, manager, Fleet Integrity Team, BP Shipping, will monitor all repair projects from the outset, even prior to the vessel’s arrival in Dubai, until the work is complete.

Ecluding time charters, the BP-managed fleet consists of around 60 vessels - four Very Large Crude Carriers (VLCCs),

BP Shipping partnership dating back to 1992 extended after 44 successful projects

Nawal Saigal, managing director of Drydocks World – Dubai with a BP offi cial.

one North Sea shuttle tanker, 42 medium size crude and product carriers, seven liquefied natural gas (LNG) carriers and three new liquefied petroleum gas (LPG) carriers. All of these ships are double-hulled. BP Shipping also also managed 24 regional vessels, including coasters.

Drydocks World Dubai handles 400 vessels in an average year, most of them ULCCs and VLCCs, and has LNG servicing capability.

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NEWS ANALYSIS


Chinese oil appetite is upC

hina consumed 33.35 million metric tonnes of crude oil in June, which was up nearly 2.6% from

the corresponding month of 2008, and the third month in a row to register a year-on-year increase in demand, according to a Platts analysis of official data in July.

Crude oil throughput at Chinese refineries rose to a new high of 31.92 million metric tonnes in June, or an average of 7.8 million barrels per day, dwarfing the previous record of 31.19 million metric tonnes processed in May.

Domestic crude production in June, however, failed to keep pace with the rise in refinery runs, inching up 1.8% from a year ago to 15.71 million metric tonnes (3.83 million b/d).

Meanwhile, China’s year-to-date oil demand is slightly below 2008 levels, as the strength in the second quarter 2009 could not fully offset the slump in the first quarter.

Chinese oil demand in the first half of 2009, at 186.32 million metric tonnes, was 0.23% below the same period of 2008, Platts estimates.

“China appears to have decoupled itself from the world’s economic malaise for now, with Beijing’s Yuan 4 tril-

Year on year consumption is up for third month in a row as China picks up global shortfall

lion stimulus package stoking domestic consumption and gross domestic product (GDP) growth rebounding to 7.9% in the second quarter from 6.1% in Q1,” said Vandana Hari, Asia news director at Platts.

“The new peak in Chinese oil processing rates in June was no doubt also helped by the government’s new domestic fuel pricing formula in use this year, which aims to protect refiners on costs and margins. But there is plenty of scepticism by oil market observers that domestic consumption will keep China’s engine running at the current pace in the coming months if its export markets continue to remain in the doldrums.”

GLOBAL VIEWIn the last week of July, Bank of America Merrill Lynch raised its forecast for the world’s third-largest economy to grow 8.7%, from 8.0% previously. Recent economic data “convinced the market that China’s recovery is real,” said Merrill economist Ting Lu.

Merrill now expects China’s gross domestic product to grow 9.2% in the third quarter and 11.3% in the fourth quarter. It also raised next year’s growth rate to 10.1% from 9.6%. Such growth is likely to lead to greater

demand for oil imports, which will go some way to stemming the expected drop in demand from the OECD countries.

China’s official news agency, Xinhua, also reported that China’s economy showed more signs of recovery and was likely to grow by around 9% in the third quarter, quoting a senior econo-mist. Wang Xiaoguang, director of Macroeconomics Division of Institute of Economic Research of the National Development and Reform Commission.

China’s economy was fore-cast to grow by 8.9% in the third quarter year-on-year, according to the report released by the Peking School of Development.

Wang Tao, an economist with UBS Securities and one of the experts on the forecast panel, said China could achieve the set goal of 8% economic growth for the full year.

Chinese banks lent a record 7.37 trillion yuan (1.08 trillion US dollars) in the first half to shore up the economy. “China’s economy was in the V-shaped recovery course.

The government stimulus package could help the country achieve the eight-percent economy expansion goal, while the next priority for China is creating more jobs,” Sun Chunming, an economist with Nomura Securities told Xinhua.

NEWS ANALYSIS

Merrill Lynch and UBS economists predict further growth in the dragon economy.

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NEWS ANALYSIS

In depth: OPEC analysis L

ast month’s OPEC market report revealed that sev-eral encouraging trends have begun to take root,

and economic indicators are for world oil demand to return to positive growth in 2010.

The OPEC reference basket surged $11.38 per barrel, or almost 20% to average over $68 in June. Encouragingly, wild fluctuations appear to have exited the market, with July closing just below at $68.32 at the time of going to press. These figures are the highest monthly averages recorded since October 2008.

“Considerable optimism over prospects for the world economy, US dollar fluctua-tions and rising equity markets helped the basket firm to over $70/b as the market moved further into the driving season,” stated the report. However, it warned that weak demand and continuing builds in refined products capped the bullish sentiment.

ECONOMIC OUTLOOKThe report stated that the 1.4% contraction so far this year, the world economy is expected to rebound in 2010 with growth of 2.3%. The OECD is forecast to grow at a miserly 0.7%, up from -3.9% in 2009. The US is expect-ed to grow at 1.2% next year, but the report highlights that the main concern in the OECD group continues to be the Eu-rozone, which is expected to decline a further 0.4% after this

World Oil Outlook 2009 says Asia will account for 80% of demand growth to 2030

year’s massive contraction of 4.6%. Despite some encourag-ing signs in the OECD, many uncertainties prevail as unem-ployment is expected to grow further, and consumer senti-ment remains restrained to say the least.

OIL DEMANDThe OPEC report says that world oil demand is expected to turn positive in tune with the global economic picture in 2010. “After two consecu-tive years of negative growth, global demand next year is projected to show an increase of 500 000b/d. Non-OECD are expected to make up the bulk of the increase, growing by 800 000b/d. It follows in the analysis that the OECD region is forecast to see a continued contraction of 300 000 b/d, fol-lowing a decline of 1.8mb/d in 2009.

The overall global economic outlook will be the biggest factor impacting oil demand growth. “The pace of global economic recovery continues to be the main risk for outlook for the next year. For the current year the world oil demand growth forecast remains at -1.6mb/d.

The report also estimates that the demand for OPEC crude in 2009 will average 28.5mb/d, a decline of 2.3mb/d from 2008. In 2010, the demand for OPEC crude is expected to average 28.1mb/d, repre-senting on 400 000b/d drop from the current year.

Asia will account for the biggest increase, but from a low per capita use base.

“Realistically, however, fossil fuels will continue to satisfy most of the world’s en-ergy needs, contributing more than 80% to the global energy mix over this period. And oil will continue to play the leading role to 2030” OPEC World Oil Outlook 2009

NEWS ANALYSIS


WORLD OIL OUTLOOKLast month also saw the unveil-ing of the hotly anticipated 2009 World Oil Outlook report from OPEC HQ in Vienna.

Essentially the outlook for oil producers is rosy. Under all of the reference scenarios factored in, global energy use is still set to rise. In the refer-ence case, it increases by 42% from 2007 – 2030. Developing countries will account for most of these increases, by virtue of higher population and economic growth.

“However, energy use in developing countries will remain much lower on a per capita basis, and globally, renewable energy will continue to grow fast, but from a low base,” it says. The outlook

points out that nuclear ener-gy’s slice of the mix grows faster than in the previous outlook, while hydropower is also set to expand faster than the oil growth rate. “Realisti-cally, however, fossil fuels will continue to satisfy most of the world’s energy needs, contrib-uting more than 80% to the global energy mix over this period. And oil will conitune to play the leading role to 2030.”

ANALYSISInterestingly, the report has revised downward oil demand projections in both the medium and long term assumptions. The medium term prospects for oil demand are adversely impacted by the lower econom-ic growth projections.

“Given the anticipated slow recovery, the annual incre-ments in demand for 2010 and 2011 are below that of 2012, once economic growth has returned to its full potential. This represents a major reas-sessment from the previous reference case. By 2013, oil demand is 5.7 mb/d lower than in last year’s outlook, with a difference of 4mb/d already witnessed in 2009.”

As the report projects further into the future, it concedes that the global recession has had a significant impact on previous estimates. “Efficiency improve-ments are stronger than previously assumed, and this compounded with the global recession, has led to a signifi-cant downward adjustment

to oil demand in the longer term. Oil demand in the refer-ence case is less tha 106mb/d in 2030, down from 113 mb/d last year.” Almost 80% of net demand growth is expected to come from developing Asia. “Nevertheless, the per capita oil use in developing countries will remain far below that of the developed world. For example, one person’s use in North America will still be 10 times that of South Asia.”

REVISED – ONLY JUSTThe report digests a great many complex factors and provides a projection which confirms the world will be different in 2030 – but not too much. Solid ra-tionale for continuing usptream investment, then.


SONATRACH EXCLUSIVE

Sonatrach, has allocated $65 billion for its five year plan. Oil & Gas Middle East meets North Africa’s most dynamic oil company CEO, Mohamed Meziane

OPEC Secretary General, Abdalla El-Badri

ALGERIA’S AMBITION


SONATRACH EXCLUSIVE

Sonatrach, Algeria’s state-owned oil compa-ny is rightly portrayed as a North African be-

hemoth. The firm, by most standard indicators, is the giant continent’s largest com-pany, Europe’s second largest gas supplier, and the third larg-est LNG exporter worldwide. The company retains control over all oil and gas explora-tion, production, and refining

activities. Its importance to the national economy cannot be overstated. The hydrocarbon sector is not only the backbone of the economy, but also the country’s engine room, pro-viding the foreign exchange and wealth to fund the ambi-tious diversification efforts of the government. Oil and gas related activities account for roughly 60% of budget rev-enues, 30% of the national GDP

and a massive 95% of Algeria’s export earnings.

Steering the national ship Sonatrach is chief executive officer Mohammed Meziane. Given the astonishing ambitions he has for the next five years, and the money that will be spent to get the job done, he’s fast gained a reputation as one of the hardest men to get a sit down meeting with in the industry. Oil &Gas Middle East managed just

that recently in Abu Dhabi, and discovered February’s reports of a US$60 billion investment chest over the next five years was wrong. It’s now $65 billion, and the upstream business will be the principal benefactor.

“We aim to invest US$65bn on the energy sector in the next five years, with an average of $1.5 billion each year for the next five years on exploration activities alone. It may be higher

Sonatrach’s gas processing facility located in Arzew on the western coast of Algeria, 450km from the capital Algiers.


SONATRACH EXCLUSIVE

recently will expedite the project development process. “Sonatrach has been already awarded and signed contracts for the Menzel Ledjmet East (MLE) field and Al-Merk field this year with Saipem, Petro-fac, ABB and other companies. There are other major projects which are also under way like Haoud Berkaoui phase II, Men-zel Ledjmet among others. We will start the development on these projects in the coming weeks and the contracts have been already signed.”

The project development plans are in place to achieve some lofty, but Meziane says, realistic targets. “Our goal is to reach 1.5m bpd by 2005- 2007, we have now capacity of 1.45m bpd, but our real production is around 1.2m bpd, in accordance with the OPEC decision. For gas, real production is 150bn cubic metres per year, conden-sates 13 to 14 mtpa. For LPG it currently stands at 8.69 mtpa, but these production figures will be increased through the

“Sonatrach wants to invest in upstream activity in Nigeria and Niger, and to control the whole value chain, from producing the gas, to supplying, transporting and marketing it”

Mohamed Meziane attended GASTECH in Abu Dhabi earlier this year.

in some years, but the average is $1.5bn,” reveals Meziane.

Pressed on which fields would be developed first, Mezian revealed that the countries twin giant oil and gas fields will be allotted considerable funding. “We have important develop-ment in Hassi Massoud field and we continue the improvement of production in Hassi R’Mal. The other developments will con-cern all the discoveries we have made within recent years, which is between 70 and 75 discoveries of different sizes.”

The Hassi Messaoud oil field, located 630 kilometres southeast of Algiers, produced around 400,000 bbl/d of crude in 2008, and the Hassi R’Mal giant gas field holds 2.415 tril-lion cubic metres of natural gas, and probable reserves of around 2.7-3 trillion cubic metres. The annual producing capacity is around 100 billion cubic metres of natural gas.

Existing projects are also pushing ahead, and Meziane says a raft of deals signed

The second upstream bid round will offer ten blocks, three gas fields and seven oil fields. The number of participants at the general presen-tation held by ALNAFT “l’Agence Nationale pour la Valorisation des Ressources en Hydrocarbures” on July 27th stood at 52 companies.

Bid round agenda:• 27th July 2009: General presentations of technical data and the modalities of participation at the data room for interested companies • 15th August to 22nd August: data room session and technical file and delivery of specifications related to each interested company.• 2nd Sep to 26th Oct: Clarification meeting where companies can make written proposals for desired changes to the contracts.• 9th Nov: ALNAFT transmits the final contractual documents and informs all companies about the modifications made.• 20th Dec at 10am: dead line for offer’s submission and the publicly opening of envelops at 10:30am.• 16th Jan 2010 at 14 00 pm: the signature of contracts in Algiers.

THE SECOND BID ROUND


SONATRACH EXCLUSIVE

Meziane says Sonatrach is forging ahead with its investment plans in 2009.

development plans that I outlined earlier.”

The $65 billion price tag on investment to 2014 may have been born in an extremely high price environment, but the sub-sequent collapse and stabilisa-tion in 2009 has not forced the figure to be revised. Meziane says that these projects are cor-nerstones of Algeria’s economy, and will go ahead regardless.

However, when asked for a sensible benchmark for the oil price, Meziane points to the $65 - $75 price range. “This is a fair and reasonable price for oil today.” This would deliver a favourable margin to Algeria. Earlier this year Chakib Khelil told the UK’s Financial Times that Sonatrach needed an oil price of $40-50 a barrel for its investments to pay off.

GOING GLOBALAlgeria’s national oil giant has ambitions and goals beyond its own borders. Its oilfield experts have been lending their skills to producers around Africa as well as operations as far away as South America.

“Sonatrach has international investment programs in sub-Saharan countries Mali, Niger, Mauritania, Egypt, Libya and Tunisia, and also in Peru at the Camisea field in the Amazon Rainforest. These investments are ongoing, and seismic works in Mali and Niger have been completed, along with a seismic and drilling project in Libya.”

Sonatrach is operating in two blocks (095 and 096) located in the Ghadamès Basin in neigh-bouring Libya. Egypt is also an exciting operation for Sonatrach.

In what was a first offshore ven-ture for Sonatrach, the company partnered with Statoil in the exploration of an 8,368 sq km block in the Mediterranean Sea back in 2007. El Dabaa Offshore lies in 1km to 3km of water in an

area west of the Nile Delta. Sta-toil operates with an 80% inter-est, while Sonatrach holds the remaining 20%.

“In Tunisia, Sonatrach is an equal partner in a joint ven-ture company with the Tunisian

SONATRACH EXCLUSIVE

company ETAP. We have made small discoveries with this joint venture, one in Algeria and the other one in Tunisia – both of which we are going to develop,” explains Meziane.

In Europe Sonatrach is also making its presence felt, with a hand in several refining and downstream marketing projects, mainly in Spain, the United King-dom, Italy and France.

FINANCING The oil industry in general is facing quite a conundrum. Whilst project build, labour and material costs have plummeted since 2008, the lines of credit necessary to seize the opportu-nity have evaporated along with many a banker’s ego. Sonat-rach, unlike many IOCs how-ever, has the cash to avail-able to fund its ambitious development plans.

“Generally we self finance. The decision of project financing abroad of course depends on the fiscal situation of

Sonatrach, but on the national level, we finance our projects using our own cash flow or through Algerian banks. Inter-nationally we largely invest through our own cash flow as well, but also sometimes turn to banks for financing.”

MIDSTREAM DEVELOPMENTAlgeria expects to boost its exports of natural gas to 100bn cubic metres by 2015, up from 62bn today. In order to get that gas to

market, Sonatrach is driv-ing forward substantial mid-stream developments projects, including a landmark sub-Saharan pipeline which will con-nect Nigeria to the Mediterra-

nean markets through Niger and Algeria.

“We have three main pipeline projects underway. For the Med Gas project, between Algeria and Spain the pipeline

has already been laid, and will be operationally

ready by the end of 2009. The pumping stations in

Beni Safa (western Algeria) and the reception station in

Almeria in Spain are being built now too.”

The second pipeline project is Galssy, which will link Alge-ria to Italy. “All of the feasibility studies have been completed, and we are in the process of get-ting the authorisations and the permits, this will take time, but I hope that we will receive all the permits by the end of this year and then we will start the con-struction in early 2010.”

Linking Nigeria to Algeria through Niger, using the Alge-rian gas grid to transport the Nigerian gas to supply the Euro-pean market is certainly the most challenging midstream project in Meziane’s portfolio.

“We are currently in the process of the feasibility study and the related work, and pre-paring the studies of the frame-work of the project (Feuillet de route). This takes a bit more time as it crosses three coun-tries, and each country has its own legislations. We are look-ing closely at the financial side of this project too, as there are European countries which are interested in financing this project.” The complexities do not daunt Meziane, who says that he hopes to see this pipe operational by 2015.

Key contracts for the Trans-Saharan network are

scheduled to be awarded in 2011, assuming the

cross-border agree-ments between

Sonatrach and Nigeria can be

“We aim to invest US$65bn on the energy sector in the next fi ve years, with an average of $1.5 billion each year for the next fi ve years on exploration activities alone”

www.arabianoilandgas.com22 Oil&Gas Middle East August 2009

Mohamed Meziane met Oil & Gas Middle East in Abu Dhabi.

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SONATRACH EXCLUSIVE

arranged in time. The project is estimated to come in at around $12 billion.

Meziane says that whilst the pipeline will be funded by sev-eral entities, including produc-ers and consumers, he is keen to see the company play an active role in the whole produc-tion and delivery cycle.

“Sonatrach wants to invest in upstream activity in Nigeria to produce the gas and secure the supply of the pipeline. We are working hard to secure the par-ticipation of Niger, and also to control the whole value chain, from producing the gas, to sup-plying the gas and transporting and marketing it in Europe.”

IOC’S IN ALGERIASonatrach has worked with many of the oil majors throughout the years, and Meziane expects to see existing partnerships grow, and new ones be formed in the busy years ahead.

“We have many international partners, including Shell, Total, Statoil, Petro-Vietnam, Petro-Canada, Halliburton, Repsol, and Schlumberger, a lot of the big names. They are investing and are very satisfied with their business in Algeria,” smiles Meziane.

Looking ahead, the CEO says that Algeria’s policy towards new ventures and partnerships is very much one of an open door. “We are proposing that when we have projects bidders should approach us and begin discussions. It’s best to have a good dialogue and establish what both parties can bring to the table.”

Meziane points to the regula-tory reforms in 2005 as a good, workable model which will fur-ther encourage foreign partici-pation in Algeria’s upstream

sector, without jeopardising the national interest.

“The legislative hydrocarbon laws 005 and 007 of 2005 give an excellent umbrella for foreign companies in Algeria. I think the regulations are very good, and the conditions are clearly and openly declared. The legis-lation states that Sonatrach, or any other Algerian company, should have a 51% stake, while a foreign partner, or partners will control the remainder,” he explains. “For example, in the downstream projects, the feedstock gas is allocated at an incentivised rate, which will be very lucrative for downstream investors, but the overall project is controlled by Algeria.”

Other policies have been enacted which make investment in Algeria very attractive, says Meziane. “Favourable condi-tions such as tax exemptions are very important and act as good incentives to not only invest in Algeria, but also to build a good ongoing partnership,” he adds.

RACE IS ONIn order to capitalise on the cur-rent cost-benefit of growing the oil industry in Algeria, Sonat-rach has committed to pushing ahead with its key projects, and the CEO is keen to stress that projects will not be put on hold, despite the fact that volatility in the oil markets has become part and parcel of the 2009 experi-ence so far.

“Our decision going for-ward is to not delay any project. Sonatrach will not delay, freeze or cancel any projects. We are taking every step to maintain the rhythm of investment. I have declared many times that our budget, our predictions and our plans are on track and have not changed.”

Sonatrach is currently the world’s second largest LNG exporter.

• Largest company in Africa • 1st commercial producer and exporter of LNG in the world* • 2nd largest LNG exporter in the world • 3rd largest natural gas exporter worldwide • 11th largest oil & gas company in the world • $12 billion – estimated cost of Trans-Saharan pipeline• 16 – Number of new discoveries in 2008• 7 – Number of discoveries made with foreign partners

NUMBER CRUNCHER: SONATRACH

“Our decision is to not delay any project. Sonatrach will not delay, freeze or cancel any projects. We are taking every step to maintain the rhythm of investment”

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Global cable suppliers are chasing the Middle East’s petro-fuelled market. Helping you make sure you can get quality and reliability from vendors is the firstOil & Gas Middle East Cables Buyers Guide

SPEC CHECK

26 Oil&Gas Middle East August 2009

Mike Smith, VP sales for MacLean Electrical, is based in Dubai.

UPSTREAM CABLES


Supply chain complexity is an important consideration as upstream cable vendors increasingly source goods globally.

Cables for the upstream sector represent a multi-million dollar industry each year. Greenfield

projects offer the most poten-tial, but constant repair and up-grades of oilfield equipment, pipelines and drilling rigs has kept the world’s leading ca-bles providers buoyant despite the shelving of several big ticket projects.

Many global suppliers have scrambled for the Middle East’s petro-dollar, and that competi-tion is only set to increase.

Badly managed supply chains and substandard cable manufac-turing processes can blight a major oilfield project, so keeping expenditure down without jeop-ardizing a project can be a tough balancing act for a procure-ment manager. To make clear the issues involved, Oil & Gas

drastically changed over the past 50 years, what has changed are the properties of materials used in the manufacture which are constantly being developed with product longevity, protec-tion against harmful elements and safety in mind. A number of recognised authorities and approval industry standards companies follow developments and ensure that before any writ-ten specification is approved, appropriate strict testing is car-ried out.

What research and con-siderations should a procure-ment manager be aware of in the current market climate?MS: In the current climate where most of us are sailing in unchartered waters, pro-curement managers’ attention should be focused on ensuring

UPSTREAM CABLES

Middle East has partnered with industry veteran Mike Smith, VP sales at MacLean Electrical Group (incorporating Noksab), to bring you an indespensable buyer’s guide.

MacLean Group is a world-wide provider of electrical products and power, control, instrumentation and fibre optic cables for offshore and onshore energy, petrochemical, process and marine applications.

What specifications should upstream customers be aware of?MS: Correct specifications and appropriate current Industry standards are paramount for selecting the correct electrical cables for oil, gas and process onshore, offshore and marine applications. Although the basic make up of cable has not


UPSTREAM CABLES

Mike Smith says that the upstream business has taken a hit in the course of the last year, but is bouncing back.

quality and proven manufacture. When cost reduction pressures affect everyone, opportunities present for low cost manufactur-ers to introduce reduced qual-ity and manufacturing stand-ards, always to the detriment of the life expectancy of the cable and safety, whether for a new project or for maintenance and repair applications. The pur-chase price is not necessarily the actual cost, and when cable is purchased purely on the basis of lowest price, problems inevi-tably occur.

The primary component in any cable is copper, such a price volatile commodity in today’s market place. The appropri-ate means of ensuring the pur-chaser is obtaining the best price is by managing the copper value - a simple process availa-ble through any reputable cable supplier.

Other materials used in the manufacture of cable also have an effect on pricing. What is most important is to ensure that there is no degradation of the manufacturing quality or with the quality of materials used in the cable construction. Appro-priate words of wisdom are “You get what you pay for”.

What criteria are most important when choosing your cable supplier?MS: When choosing a cable pro-vider, an organisation must have confidence in its supplier. This can be measured by experience, specialist knowledge, industry references and the ability to sup-ply the necessary test and certi-fication documents.

The opportunity to see and handle cable samples is also a useful way to measure the quality of a supplier’s products. Should time allow, a factory visit

Mike Smith is the Middle East sales vice president for the MacLean Electrical Group (incor-porating Noksab). With 35 years experience in the global cables market, and 14 years in the Middle East, Smith is based in Dubai with clients around the entire Middle East region. MacLean Electrical Group has one of the industry’s most comprehensive project expe-rience lists, recognition that the leading companies across the world who need to rely on high quality supply chain, make regular use of its services.

ABOUT THE AUTHOR

can prove extremely beneficial, providing buyers with a bet-ter understanding of the manu-facturing processes and con-straints as well as hands on feel for a supplier’s manufacturing capabilities and quality.

Where do oil and gas companies make mistakes in the cable purchasing sector?MS: Mistakes are often made in the purchase of cables. Thank-fully within the oil and gas mar-ket, a proven track record does show that, providing the speci-fication and standards are fully documented, a reputable cable supplier will provide buyers with the confidence that they understand the requirements and will ensure that any possi-ble oversight or more appropri-ate solution is proposed prior to manufacture.

Is the industry static, or are improvements constantly being made?

MS: The MacLean Electrical Group, through its cables spe-cialist Noskab, has been suc-cessfully supplying all types of electrical, instrumentation and control cables for oil, gas, proc-ess, energy and marine applica-tions for almost 40 years.

Along the way they have introduced innovative ideas, col-laborated on technical improve-ments, provided commercial and technical advantage, con-stant improvements to manu-facturing and documentation quality and have been a reliable source for application advice, matching the appropriate cable to a client’s application.

For any new project, numer-ous cable types and accesso-ries are required and appropri-ate knowledge, experience and proven capability are essential to maximize the benefits for clients through effective manu-facturing monitoring, distribu-tion and cable management. Involving a dedicated and reli-

able cables partner early in the project helps to ensure the best product for the application, most economic manufacturing lengths, reduction of surplus materials and product damage during the life of your project.

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UPSTREAM CABLES

including piping, whatever purpose.”

The MultiGrid from Oglaend System allows for normal construc-tion practices for new plants and installations while enabling last minute project modifications and subsequent maintenance and modi-fication work to be completed. The latter is achieved without the need for time consuming, costly and potentially dangerous hot work permit operations, thanks to its bolt-on/screw principle.

Austigard says the system is an ideal solution for a wide variety of energy industry applications, but is particularly well suited to drilling rigs, offshore platforms, FPSOs, FSRUs, petrochemical plants, LNG terminals, as well as other upstream and midstream applica-tions where cable management can

INDUSTRY FOCUS: CABLE MANAGEMENTOglaend System is a veteran to the oil and gas industry’s cable manage-ment sector, formed over three decades ago in Norway and with a regional subsidiary opened in Dubai three years ago.

“No place has higher require-ments with respect to quality, weight, safety and corrosion resist-ance than the oil and gas industry on the North Sea shelf. Our 30 year pedigree of close collaboration with the industry there has given us the advantage to test our prod-ucts under the harshest conditions imaginable,” explains company chairman, Gunnstein Austigard.

“Our engineers work closely with our customers and through this collaboration we have developed the MultiGrid system which has been designed to support all disci-plines with fixing points Oglaend System chairman and company founder, Gunnstein Austigard.

Oglaend System has developed the MultiGrid support product, suitable for all main disciplines including piping, cables and HVACs.


UPSTREAM CABLES

Oglaend cable solution installed on the Bayu-Undan offshore facility.

be a complex mixture of safety and installation efficiency.

Beyond the MultiGrid, Oglaend System has a wide portfolio of cable management systems to support the industry’s need for cable trays, lighting trunking, and FRP ladders, as well as clamps and fixing for cables, pipes and tubes.

“In the oil and gas industry safety is obviously paramount, so we comply with the specifica-tions, which are mostly given by the owner of the project, but our installed equipment is usually based on DNV standards or American Petroleum Institute(API) and British standards, which are widely used.”

Austigard adds that Oglaend System has been involved in some very interesting projects lately. “And we’re excited about bringing that know-how to the Middle East oil and gas market,” says Austigard.

Among these landmark projects is the Bayu-Undan, a huge oilfield in the Timor Sea offshore Australia, operated by ConocoPhillips. This field is being developed by three jacket platforms, the topside decks for each weighing in at a massive 30 000 tonnes. Oglaend System delivered over 17 500 metres of OE-ladders and approximately 55 000 metres of SBF-RF40 trays and cable channels for the topsides.

Regionally, the Pearl GTL in Qatar is receiving the Oglaend System treatment. Pearl will be the world’s largest plant of its type, converting natural gas into 140 000 barrels per day of clean-burning liquid products. Oglaend System has a contract for supplying the key process plant and jetties. For these packages the company has produced 65 000m of cable ladder and 175 000m of cable tray – plus accessories. “Our ability to rethink our business – and to understand customer’s needs has resulted in a huge range of prod-ucts. Our goal is to help clients cut overall costs, both in the short and long run,” says Austigard.

Oglaend System installed 17 500m of OE-ladders and 55 000m of SPB-RF40 trays and cable channels for the ConocoPhillips Bayu-Undan offshore facilities.

Asset management: The phrase may be a modern term, but the concept is not new; in fact it dates

back to the Stone Age, in a manner of speaking. When Man started using tools, maintenance began with the sharpening of stone knives as well as the preserva-tion of clothing and other basic belongings. It was a major part of the survival of mankind for centu-ries. This reactive maintenance prevailed for thousands of years until the advent of the ‘machine’.

Once machines were invented, preventive maintenance (lubri-cation, replacement of parts and regular checks) began to gain trac-tion and was used in conjunction with reactive maintenance. The measures for preventive mainte-nance were set out by the emerging manufacturing sector.

Over-maintenance then became a concern when research showed that in more than 70% of surveyed cases it was proved that equip-ment aging and reliability were not inter-dependant. Fast-forward to more recent times and Honey-well’s control loop management (loopscout) studies which deter-mined that 50% of maintenance processes were quite unnecessary while 10% were actually harmful!

Therefore, plants started to take advantage of technology to monitor the equipment condition as basis for maintenance. However, there was a tendency to set up equipment condition monitoring processes around the plant, most of which were not required and added to needless costs.

To rationalise the method of using a varied maintenance approach, industries such as those

in the aviation sector adopted Reli-ability Centered Maintenance (RCM) which proved to be an excellent tool in terms of reducing or avoiding reliability issues at the equipment design phase. However, RCM did not work quite so effec-tively with existing equipment since it drew heavily on the plant’s high-level resources, aggravating a situation where such resources were already becoming scarce.

Integrated technology thus provided a much-needed solution

– it helped foster collaborative and innovative thinking to optimise the use of available resources. Having said that, integration is a tool: To use it efficiently and effectively for leveraging the desired results is a science… I may even call it an art! Several integration projects failed for any number of reasons: Unclear direction, complexities, and violation of internal regula-tions, to name just a few.

A thorough understanding of business processes and best practices is extremely crucial for collaborative asset manage-ment to work effectively and effi-ciently with top management buy-in at the very outset. Inexpen-sive measures should also be first examined for their efficacy such as ‘visual inspection’ that can be implemented by trained operators for simple routine inspection jobs using Remote Frequency Identifi-cation (RFID) proximity scanning.

Another example is monitoring process parameters for predictive maintenance where only (eg.) six simple measurements can provide the required data to periodically calculate both the efficiency and fouling factor. Vibration monitoring can also be widely used since moni-toring tools are now less expensive and wireless technology has made it feasible to even monitor pumps and other rotating equipment.

Performance management through rigorous models and benchmarking is key to ensure optimum utilisation of compres-sors and turbines. Corrosion moni-toring is often considered a separate practice because of its specialised nature where risk based inspection is often used. Instrumentation and smart devices need to be effectively monitored not just because of their high cost value, but also because of far-reaching effects on safety and efficiency on the plant due to any malfunction.

Asset management is a compre-hensive practice that involves several departments including operations and management, and can no longer be the sole domain of the maintenance section. Inte-gration and presentation tools can be used wisely to support the plant’s holistic strategy.

Question: I’m in charge of asset management for a large oilfi eld facility. What’s the best approach to optimising safety, effi ciency and reliability?

Expert: Bilal Abdallah business development manager, manufacturing excellence, Honeywell Process Solutions

“Integrated technology has provided a much-needed solution. It helps foster collaborative and innovative thinking to optimise the use of available resources”

Ask the

ExpertIf you have a question you want answered, or a topic discussed, please send it to [email protected]

EXPERT VIEW


www.saoge.org

01–03 NOVEMBER 2009

ThE 2 Nd Saudi aR aBia iNTERNaTiONal Oil & GaS E xhiBiTiON & CONfERENCE

DaMMaM, KINgDoM oF saUDI araBIa

The main oi l & gas event in the K ingdom of saudi arabia, the wor ld’s largest o i l producer


MARKET WATCH

Launching next generation technology to a hungry MENA audience will separate QMENA from the pack, says CEO Miles Walker

GAME CHANGER

Miles Walker, QMENA chief executive is based in Dubai.

When news broke in July that a new joint venture oilfield services company

had been formed in Saudi Ara-bia, industry veterans must have though the timing odd. In an era of consolidation, how bold does a fresh entrant have to be? With a paid up capital of US$10 million, and aggressive expansion in its sights, Oil & Gas Middle East sought out

QMENA chief executive Miles Walker to discover why Quo-rum OGT has chosen now as the time to strike in the Middle East.

“Quorum Middle East is an oilfield service company, as opposed to Quorum Oil and Gas Technology Fund, which is an investment company (and the parent organisa-tion), which is a private equity company which has always

invested in oilfield technology companies,” explains Walker.

Quorum OGT has been around for over two decades and will be known to many through it’s acquisitions of up and com-ing technology providers. The company has built a track record of buying stakes in com-panies, usually in their teenage years. Rather than target high-risk start-ups, the fund tends to back companies with revenues

between $2 million and $50 mil-lion coming in.

“The investment from Quo-rum OGT is more than just a capital injection, there’s a lot of management experience that comes with having Quorum on board. This has done very well for its investors, typically return-ing 18% - 19% each year for the last two decades. The compa-ny’s not completely risk averse, but it’s very calculated in where


MARKET WATCH

Walker says partnering with AlTurki opens many doors for the proprietory oilfi eld technology the company can offer.

cant advantages over the major suppliers. “The major ERP solu-tions are focused on serving pri-marily western manufacturing models, whereas Wellpoint is much more process driven, so applications in mining and pet-rochemicals, as well as oil and gas are extremely well suited to it. Initially we have targeted the upstream sector, but also the banking and aviation industries are a good fit, and we’ve had some very productive conversa-tions with the big players in the this region.”

By discerning which con-tracts and tenders are a best fit, Walker says the company stands a good chance of capturing national oil company contracts. “We’re being very selective with the contracts we’re going for with the NOCs, we are not chas-ing everything that’s out there - it is a much more targeted approach. What we’ve found from dealing with the NOCs in

just a sales office extension of the fund.”

TECH TALKDelivering ‘game changing’ technologies to the Middle East sounds ambitious, but Walker is confident that what the firm has on offer will shake up local mar-kets.

“As well as being an oilfield service company we’re actually looking at some of the govern-ment municipality contracts we want very closely. With the Well-point product we’re targeting everything from aviation serv-ices to oilfield management, and almost everything in between. It’s such a diverse piece of soft-ware. It’s a remarkable ERP solution that we can provide faster and more economically than the really big providers.”

Walker is not deterred by the scale of the competition in the ERP business, and says the Wellpoint package has signifi-

they place there money. Eight companies were invested in dur-ing 2008, and that’s from a pool of several thousand that were examined, so the research is paramount.”

With such an impressive track record, (made all the more remarkable given the gloomy economic backdrop in 2008, the company still managed a return to inception investors of 18.77%) one may be wondering why opening a new oilfield serv-ice company now is a priority for the Quorum OGT managed QMENA division, headquar-tered in the UAE.

Walker is keen to explain the drivers behind both the push into the Middle East and the tim-ing. “Traditionally much of the fund’s profit has been derived from the North American mar-ket, so in order to open up fresh opportunities and markets, the company decided that is would be advantageous to fund a start-up oilfield service com-pany here in the Middle East, to bring the technologies from North America to the Middle East through an exclusive mas-ter licence agreements. That’s how QMENA was formed.”

The master licence agree-ments are critical to the success the QMENA. Currently five of the seven portfolio companies are signed up through exclu-sive contracts, which cover the whole North Africa and the Middle East, India and Paki-stan region. QMENA will oper-ate as a UAE company, focused on bringing these new technolo-gies to the local markets. “It is important people recognise that we’re a regionally focussed com-pany, with a complete service team here on the ground, from operations supervisors, team managers and support staff, not

this region is that many of them welcome the extra competition. Quite a few technology markets are limited to a few established names, so the injection of fresh competition is definitely some-thing these companies welcome in the market.”

THE KINGDOM Q – OGT announced in July that Q-MENA, had entered into a let-ter of intent which is intended to lead into the establishment of a 50/50 joint venture with the Khalid Ali AlTurki & Sons (AlTurki) in Saudi Arabia, with each party contributing up to an initial US$5 million to the joint venture.

“Obviously Saudi Arabia is the leading country for oil pro-duction in the Middle East and has the largest market for oil services with over US$40 bil-lion of contracts let in the last three months alone,” explains Walker. “Q-MENA’s proprietary


MARKET WATCH

technologies have significant sales potential in the Saudi mar-ket. We went through a process of discussing potential invest-ment into QMENA with all of our prospective leads, and ulti-mately we decided that the best group within the Kingdom was AlTurki. They have an extensive network of businesses within Saudi Arabia, and we were look-ing at capitalising on their knowl-edge of the market, and combin-ing it with our knowledge to cre-ate a standalone Saudi Arabian operation. Essentially it will mir-ror QMENA, whilst being able to capitalise on AlTurki’s rela-tionships and infrastructure in the Kingdom” says Walker.

Obviously the relationship with Aramco is important, but Walker says it’s about more than just that. Familiarity with all of

In December 2008, QMENA entered into a license agreement with Well-Point whereby it became the exclusive licensee for WellPoint’s products in the Middle East, North Africa and certain parts of South Asia. QMENA acquired the right to sell 600 seats of any of the WellPoint software Dynamix AX software packages for $2 million, representing a substantial discount on WellPoint’s list price. QMENA is in the process of negotiating on-sales of these licenses in order to provide immediate revenues. QMENA has hired a consultant, Stewart Jack, an experienced ERP software consultant, to manage the Manage-ment Information division and initiate sales of the WellPoint licenses.

TECH FOCUS: WELLPOINT ERP SOLUTIONS

the processes involved in deal-ing with Aramco is paramount too. Through the JV Walker says that opportunities beyond Aramco are equally exciting. “We hope to look at the whole Kingdom, so beyond upstream there are opportunities with the petrochemical sector for the Wellpoint ERP solutions, so companies like SABIC are also on our radar, as well as the min-ing industry.”

The CEO is undeterred by the current state of the indus-try, and says that there may in fact be advantages to launching the company during a slump. “Of course, the industry has seen better times, but I believe this is a good time to invest. From my experience whenever a large service company has appeared in the past, they’ve

always started during an indus-try downturn, with solid inves-tors behind it. At the end of the downturn we’ll emerge very strong, and I’m confident that we are bringing technologies that the Saudi market has not previously had access to.”

Walker adds that the collab-oration with AlTurki was borne

out of a mutual desire to move quickly. “The company com-pletely shares our vision of going into this market very aggres-sively, and that’s one of the things that attracted us to that partnership. Both parties want to be big players in the King-dom, so that common desire is very promising.”

OFFSHORE LNG CLASSIFICATION


The world is on the cusp of an LNG revolution. As more transport and processing takes place offshore, Oil & Gas Middle East reveals the process behind classification of these floating energy hubs

IN DEPTH: OFFSHORE LNG UNITS

Dubai will soon host the 125 000m3 capcity Golar Freeze, a floating, stor-age and regasification

unit (FSRU) for Dubai Supply Authority (DUSUP) and Shell in Dubai. Hamworthy is deliv-ering the regasification skids for this vessel in September 2009. The system is being in-

stalled on the 1977-built LNG carrier that is being convert-ed into an FSRU before being time chartered by Dubai Sup-ply Authority (DUSUP) for 10 years, with options to extend for up to another five years.

After its delivery to DUSUP in the second quarter of 2010, Golar Freeze will be perma-

nently moored alongside a purpose-built jetty within Jebel Ali port. The FSRU will be capable of storing 125 000m3 of LNG and delivering up to 14 million m3/day (about 3 MTA) of regasified LNG to DUSUP for delivery into Dubai’s gas network. Shell is acting as advisor on the project.

DNV CLASSConn Fagan, business develop-ment manager, Offshore LNG, DNV Energy lifts the lid on how class rules are being formulated for the next generation of LNG FPSOs and FSRUs.

Many factors are contrib-uting to the current trend to develop and deploy offshore

Leaders in Fluid Engineering



units for production and for import of LNG. Key among these are the desire to mone-tise remote gas fields, to avoid onshore safety and permitting issues and to ensure diversifi-cation of energy supply. What-ever the reason, these new applications provide a number of challenges when it comes to finding and applying relevant standards and predicting regu-latory requirements.

DIFFERENT APPLICATIONSOffshore gas deposits are unfor-tunately often inconveniently located when it comes to being able to get to market. Whereas oil, with a little processing, can be readily stored and trans-ported, natural gas can be more problematic, particularly where pipeline connection is either not technically or economically fea-sible. The solution being most evaluated at present is to liq-uefy the gas offshore to facili-tate its transportation by ship to market. There are a number of variations in the concepts being proposed. These are related to scale of production, selected liq-uefaction process, extent of pre-treatment of gas, and limitations on the composition of feed gas to name some.

At the other end of the value chain, at the market end, the transported LNG needs to be re-gasified to be made availa-ble for end-users. Carrying out such an operation offshore has several advantages compared to use of

lation and technical codes and standards. This is an area that DNV has been looking into in order to bring clarity to our cli-ents.

AN ACCEPTABLE APPROACHClassification has long been

as ships and follow a mari-time compliance regime and ship-classification procedures. Vessels engaged primarily in processing of hydrocarbons have been defined as off-shore installations and follow an offshore com-pliance regime and associated offshore-class procedures.

used as a widely recog-nised means of verifying that an acceptable level of safety has been achieved in design, construction and operation of maritime vessels and floating offshore installations. Classifica-tion is typically used as a means also of demonstrating compli-ance with both maritime and offshore legislation.

Traditionally vessels pri-marily engaged in transporta-tion of LNG have been defined

Thus vessels used as Shut-tle Regasification Vessels have followed a shipping regime and vessels acting as LNG FPSOs will follow an offshore regime.

In between these applications are the various forms of Float-ing Storage and Regasification Vessels (FSRUs), inshore and offshore. In this case, partially

existing or new construction of land-based terminals. The offshore solutions have ranged from equipping the LNG carriers with their own regasification plant so that they can temporarily connect and discharge gas to a shore pipe-line (Shuttle Regasification Ves-sels) or permanently locating a storage vessel with regasifi-cation plant which is regularly replenished by shuttle tankers. The permanently moored units may either be moored offshore or moored inshore at a jetty.

What all of these concepts have in common is that they lie within a grey area with regard to applicability of existing legis-

14 MILLIONCubic metres per day of gas will be supplied to DUSUP from the Golar Freeze. Source: Hamworthy




dependent on authority accept-ance, either a ship approach or an offshore approach may be used as seen fit.

However, from the DNV per-spective the important issue is the level of safety achieved rather than definition as ship or offshore unit. DNV have there-fore developed requirements applicable to the various appli-cations and aim at ensuring that

ments related to the operation as a regasification vessel. Spe-cifically DNV have developed a guidance document entitled Classification Note 61.3 Regasi-fication Vessels.

For offshore-regime ves-sels, DNV bases its approach on design as an FPSO and adds considerations based on the fact that the hydrocarbon being processed results in LNG. The relevant DNV document is then DNV OSS 309 Verification, Cer-

may adopt offshore practice for design of the position mooring system and adopt typical off-shore requirements for process safety and shutdown systems.

In either case however the pecularities of the specific appli-cation will need to be taken account of in considering the suitability of using require-ments not originally developed for such a new application.

DEVIL IN THE DETAILSClassification Rules will also typ-ically make reference to inter-

national codes and standards when it comes to detailed

design of systems or components on the vessel to be classi-fied. When dealing

with a concept which has never been built

before it may well be the case that a code or stand-

ard used on a similar exist-ing concept will be used as a basis.

Here it is important to make some assessment of the applicability of indi-

vidual requirements. It may well be that existing codes and standards have either explicit or, more problematically, implicit

“Offshore gas deposits are unfortunately often inconveniently located when it comes to being able to get to market” Conn Fagan, business development manager, Offshore LNG, DNV Energy

However whichever approach is adopted learnings from the second regime will also need to be accounted for. For example most LNG FPSOs will adopt a ship-shaped structure and use

a containment system based on maritime applica-

tion so that design methods and require-ments applicable for such may form the

basis for the off-

shore application.Similarly a ship carrying

out regasification operations

an acceptable level of safety is achieved in all cases.

CLASSIFICATION RULESFor ship-regime vessels, DNV use as basis their rules which cover gas carriers and have sup-plemented these with require-

tification and Classi-fication of Gas Export and Receiving Terminals, together with underlying Offshore Stand-ards which address the techni-cal details.




The industry is rapidly devel-oping new concepts to address new offshore LNG applications. DNV is providing assistance to our clients to ensure that this can be done within an appropri-ate rule framework which will lead to safe and regulatory com-pliant designs.

Conn Fagan is responsible within DNV for business development within the area of offshore LNG terminals both for regasification and for liquefaction. He has been responsible for developing DNV standards and services with respect to classification of both FSRUs and LNG FPSOs and is closely involved with classification of the first FSRUs to be deployed and the first LNG FPSOs being designed.

ABOUT THE EXPERT:

assumptions which may not be wholly appropriate for the new application.

An example of this would be the assumption of defined fill-ing levels in vessels for marine transportation of LNG, which have not anticipated sloshing effects due to the intermediate filling levels experienced in off-shore terminals.

Similarly the source and potential increased frequency of leakage of gas may indicate an increased need for detection and automatic action. Other codes make assumptions about availa-ble separation of main functions which may not be practicable in an offshore application.

One important means of ensuring that design, construc-tion, and in-service require-ments adequately address a par-ticular and perhaps novel appli-cation is the use of risk assess-ment as an integral part of the DNV rules related to these LNG vessels.

RISK ASSESSMENTClassification Societies have long realised that it is extremely difficult to formulate purely prescriptive Rules which will address all types of vessels and their applications. Where designs remain relatively static over time, as has been the case in some parts of the maritime industry, prescriptive Rules will be adequate. However in many offshore-related projects where key parameters will be very site- and project- specific there has

been a long tradition of use of risk analysis. Similarly for novel concepts and in projects where key design features will change from project to project then an approach based on a combina-tion of prescriptive and risk-based requirements will be the sensible way to proceed.

Nakilat’s Q-Max vessels, with a capacity for 266 000m3 of LNG, can carry 80% more cargo than conventional ships.

For LNG FPSO and FSRU projects therefore, compre-hensive risk assessments have been carried out to define spe-cific requirements related to layout, escape, fire protection, venting and flaring arrange-ments, explosion prevention and protection.



TENDER TRACKER

TOP PICKS: Onshore Qatar field works

Thermal Isolation & Fire Proofing Support at Offshore Locations in QatarCountry: Qatar Category: Offshore Issuer: Qatar Petroleum Closes: Aug 16, 2009

Dedicated Uwainat Gas Line to Typhoon Turbine at PS-2 in QatarCountry: Qatar Category: Onshore Issuer: Qatar Petroleum Closes: Aug 30, 2009

Water Pipeline from Kahramaa Meter To QP Tank at DukhanCountry: Qatar Category: Onshore Issuer: Qatar Petroleum Closes: Aug 30, 2009

Geology Lab Facilities within DukhanCountry: Qatar Category: Onshore Issuer: Qatar Petroleum Closes: Aug 30, 2009

THE WIN:Oilfield services contractor Petrofac has announced that it has been awarded a massive US$350 million contract for the Kauther gas-field depletion com-pression project in the Sultanate of Oman.

The UK-based company will undertake the engineering, procurement and construction (EPC) of the gas compression system, and associated facilities

at the Kauther gas plant, in addi-tion to undertaking the commis-sioning and six months of initial operations management.

“We are delighted to have successfully secured the Kau-ther gas depletion compres-sion project,” Maroun Semaan, group COO of Petrofac said.

“This award serves to fur-ther reinforce Petrofac’s com-mitment to the Omani market, gives us continuity of business

TENDER TRACKEROman Focus: Kauther Gas Plant

Petrofac has been a major player in the development of the Kauther gas fi eld project in the Sultanate of Oman.

in the Sultanate and again high-lights Petrofac’s continued com-petitiveness in the Middle East,” he added.

The contract was awarded on behalf of the Government of Oman by Petroleum Develop-ment Oman (PDO), which has been developing the Sultanate’s gas fields on behalf of the Gov-ernment since 1978.

The project follows the suc-cessful completion of the Kau-ther gas plant (pictured above) in 2007, which Petrofac built on a full EPC basis for PDO, including commissioning and operations.

In 2008, Petrofac was asked to carry out the front end engi-neering and design (FEED) for the gas depletion-compression project and then invited to sub-mit a commercial proposal for the EPC on a negotiated basis.

ArabianOilandGas.com provides free access to the latest publicly available tender listings from across the GCC countries. The tenders included are aggre-gated from a wide variety of public and private sector sources. Wherever possible, tenders include the issuer, name and category of the tender, opening and closing dates.

Maroun Semaan says the project illustrates Petrofac’s competitiveness.


TENDER TRACKER

TENDER LISTING Kuwait, Oman, KSA & UAE

EPIC of Fire Training Ground Upgrade within Dukhan FieldsCountry: Qatar Category: Onshore Issuer: Qatar Petroleum Closes: Jul 5, 2009

Abdali Main - Abdali Mid Oil PipelineCountry: Kuwait Category: Onshore Issuer: Central Tender Committee Closes: Aug 4, 2009

Condition Monitoring & Preven-tive Maintenance Services in KuwaitCountry: Kuwait Category: Onshore Issuer: Kuwait Oil Company Closes: Aug 4, 2009

Construction of New Booster Station in North of KuwaitCountry: Kuwait Category: Onshore Issuer: Central Tenders Committee Closes: Aug 16, 2009

Construction of Oil Pipeline in North of KuwaitCountry: Kuwait Category: Onshore Issuer: Kuwait Oil Company Closes: Aug 23, 2009

Jurassic Project in North KuwaitCountry: Kuwait Category: Onshore Issuer: Central Tenders Committee Closes: Sep 1, 2009

EPC of the DHDS Revamp & CCR Lift Line Project in Mina Al-FahlCountry: Oman Category: Onshore Issuer: Oman Refinery Company Closes: Jul 29, 2009

Engineering & Construction Support Services in OmanCountry: Oman Category: Onshore Issuer: Oman Gas Company Closes: Aug 3, 2009

Small Volume Prover for Flow-meters with Required AccessoriesCountry: Oman Category: Onshore

Issuer: Oman Refinery Company Closes: Aug 10, 2009

Supply of Fresh Catalyst And Additives ZSM - 5Country: Oman Category: Onshore Issuer: Oman Refinery Company Closes: Aug 10, 2009

EPC for Five Major Projects at Sohar RefineryCountry: Oman Category: Onshore Issuer: Oman Refinery Company Closes: Aug 10, 2009

Installation of New Service Water Line In OmanCountry: Oman Category: Onshore Issuer: Oman Refinery Company Closes: Aug 17, 2009

Jazan Refinery - Submission of ProposalsCountry: Saudi Arabia Category: Refining Issuer: Ministry of Petroleum and Mineral Resources Closes: Sep 2, 2009

Shah Gas Field - Development Country: United Arab Emirates Category: Onshore Issuer: ADNOC Closes: Dec 31, 2009

Shah Gas Field - Main Process Country: United Arab Emirates Category: Onshore Issuer: ADNOC Closes: Dec 31, 2009

Shah Gas Field - Offsite PackageCountry: United Arab Emirates Category: Onshore Issuer: ADNOCCloses: Dec 31, 2009

Shah Field - Utilities PackageCountry: United Arab Emirates Category: Onshore Issuer: (ADNOC)Closes: Dec 31, 2009

To include your tenders in this section submit your entry through ArabianOilandGas.com

www.arabianoilandgas.com/tenders/index/

PROJECTS


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

Khuff Gas Production and Distribution Expansion Bapco / NOGA Not Appointed 200 Concept

Redevelopment of Awali Onshore Oil FieldBapco / National Oil and Gas Authority (NOGA)

Not Appointed 1000 Study

Lube Base Oil Project Bapco / Neste Jacobs Engineering Samsung Engineering Company 325 Execution

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

2000 Execution

Kuwait

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

Project Kuwait Scheme KPC / KOC Sproule Associates Limited (Canada) Not Appointed 7000 FEED

Gas Pipeline From BS-131 to Mina Al Ahmadi KOC AMEC Petrofac International 544 Execution

Crude Oil Manifold at GC 27 KOC Not Appointed 30 EPC Bid

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

Gathering Centre 24 at Sabriya KOC AMEC SK Engineering & Construction 621 Execution

Repair and Replacement of Pipelines in Southeast Kuwait KOC Not Appointed 17 EPC Bid

Replacement of Oily & Effl uent Water Lines at GC 23 and GC 25 KOCInstruments Installation and Maintenance Co. (ImCo)

4 Execution

Effl uent Water Injection Phase I & Sea Water Injection Phase II KOC AMEC, Kuwait Not Appointed 750 FEED

Water Effl uent Transfer Pipelines KOCUnited Gulf Construction Company (UGCC)

35 Execution

Crude Oil Flow Pipelines in North Kuwait KOC Not Appointed 3 EPC Bid

Gas Compressor at GC 16 & Gas Reinjection at Minagish KOC Safwan Petroleum Technologies 67 Execution

Gas Pipeline between Booster Station 140 & GCMB Manifold KOCUnited Gulf Construction Company (UGCC)

7 Execution

LPG Filling Plant at Umm Alaish KOTC Not Appointed 100 FEED

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

140 Execution

Upgrade of South Ghudair Gathering Centre KOC / SAT Arabi Enertech 27 Execution

Flowlines Upgradation & General Support Services Saudi Arabian Texaco/ KGOC Mushrif Trading 25 Execution

Maintenance Services for KOC KOC Petrofac, Kuwait 125 Execution

ESD Systems at Gathering Centres KOCMushrif Trading Contracting Company, Kuwait

11 Execution

Gas Booster Station 160 KOC AMEC Snamprogetti Kuwait 649 Execution

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

Jurassic Early Production Facility (EPF) KOC Not Appointed 400 EPC Bid

Chemical Handling Facilities in Kuwait KOC Not Appointed 50 EPC Bid

Drilling Service in Kuwait - Contract 4 KOC Weatherford Oil Tools Middle East 80 Execution

Al Zour North Project - Pipeline Packages Ministry of Energy NJS Consulting/Al Dowailah Not Appointed 136 EPC Bid

New Base Oil Plant at Shuaiba KNLOC Not Appointed 400 Study

Dry Crude Storage Tank at Gathering Centre 1 KOC Bridge and Roof Company 9 Execution

Telemetry System in Southern Oil Fields KOC Tecnicas Reunidas 70 Execution

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

Sohar Bitumen Refi nery Sohar Industrial Port Company (SIPC) Mashael Group of Companies 200 Execution

Nimr C Full Field Water Injection Project PDO Al Hassan Engineering 65 Execution

Harweel Cluster Phase - 2 Petroleum Development Oman (PDO) AMEC, Abu DhabiPetrofac International, Oman; Galfar Engineering & Contracting, Oman;

960 Execution

Enhanced Oil Recovery at Mukhaizna Occidental Mukhaizna MEG Worley Parsons Dodsal 450 Execution

Mabrouk Field Project PDOGalfar/Integrated Engg. & Construction Co;

1,501 - 2,000 Execution

Asphalt Plant at the Sohar Refi nery Complex Sohar Refi nery Company Engineers India Ltd. Not Appointed 80 FEED

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

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

700 Execution

Kauther Gas Compression Project PDO Petrofac International, Oman 350 Execution

Aromatics Complex in Sohar AOL Jacobs Engineering / AxensLG International / GS Engineering & Construction

1200 Execution

Two New Gas Pipelines in the South of the Sultante PDO Not Appointed 101 - 250 EPC Bid

Depletion-Compression Project at Saih Nihayda Petroleum Development Oman (PDO) Not Appointed 350 EPC Bid

Pipeline Between the Nimr Field and the Port City of Salalah Oman Gas Company Not Appointed 51 EPC Bid

Marmul Central Development - Phase 3 Petroleum Development Oman (PDO) Gulf Petrochemicals Services, Oman 61 Execution

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


PROJECTS


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

Methanol Plant in SalalahOman Oil Company (OCC) / UK GTL Resources / Mubadala Development Company, Oman / Vitol

Jacobs Engineering GS Engineering & Construction 910 Execution

Olefi ns Complex at SoharOman Petrochemical Industries Corporation; Oman Oil Company (OCC); Dow Chemicals;

Fluor Corporation, Oman 2300 On Hold

Saih Rawl Gas Depletion Project PDO Tecnicas Reunidas, Oman Bahwan Engineering Company (BEC) 545 Execution

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

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

Low-Sulphur Condensate Storage Facility at Ras Laffan Dolphin Energy Limited, QatarQatar Engineering & Construction Company

212 Execution

Al-Shaheen Oil Refi nery Qatar Petroleum Axens France Not Appointed 5000 EPC Bid

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

Sulphur Handling Facilities Qatargas Washington Group Int’l (WGI) WGI/Al-Jaber Energy Services 360 Execution

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

Petrochemical Complex at Ras Laffan QP /ExxonMobil Corporation Not Appointed Not Appointed 3000 FEED Bid

Subsea Pipelines Pkg. for Qatar Gas 3 & Qatar Gas 4 Qatar Petroleum (QP) J Ray McDermott, Dubai 100 Execution

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

Gas Pipeline Network within Ras Laffan Industrial City Qatar Petroleum Mott MacDonald Qatar Larsen & Toubro, Qatar 123 Execution

Olefi ns Complex QP/ Shell Not Appointed Not Appointed 2500 Study

Condensate Refi nery at Ras Laffan Laffan Refi nery Company Technip, QatarDaewoo Engineering & Construction, Qatar; GS Engineering & Construction, Qatar;

602 Execution

Pearl GTL Project - Pipelines Package QP/Royal Dutch/Shell JGC Corporation/Halliburton J Ray McDermott 150 Execution

Q-Chem 2 Q-Chem Aker KvaernerDaewoo Engineering & Construction, Qatar

700 Execution

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

Pearl GTL Project - Storage Tanks Package QP/Royal Dutch/Shell JGC Corporation/Halliburton CB&I 400 Execution

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

Ras Laffan-Mesaieed Ethylene Pipeline Q Chem ll / Ras Laffan Olefi ns Co. Punj Lloyd 45 Execution

Methanol Capacity Expansion at Mesaieed Qafac Mustang Tampa Not Appointed 501 - 750 FEED

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

16000 Execution

Low Density Polyethylene Unit at Mesaieed Qapco Uhde Uhde 410 Execution

Al Shaheen Project - Packages 17 & 18 Maersk Oil Qatar NPCC 600 Execution

HFO Bunkering Project Qatar Petroleum Maritime Industrial Services 60 Execution

LLDPE Plant in Mesaieed - Main Plant Qatofi n Snamprogetti 250 Execution

Al Khaleej Gas Development Phase 2 - Onshore Package Exxon Mobil/ Ras Gas Chiyoda Chiyoda/Technip 1600 Execution

Plateau Maintenance Project Qatargas Technip, Qatar 1200 EPC Bid

Al Shaheen Project - Package 13 Maersk Oil Qatar J Ray McDermott 185 Execution

Two New Glycol Regeneration Trains in Dukhan Qatar Petroleum Worley Parsons Not Appointed 101 - 250 EPC Bid

Ras Gas 3 - Trains 6 & 7 Rasgas 2 Chiyoda Foster Wheeler Chiyoda/Technip 13000 Execution

Qafco 5 Qafco Not AppointedSnamprogetti / Hyundai Engineering & Construction Co;

3200 Execution

PROJECTS



Al Shaheen Project - Package 12 Maersk Oil QatarQatar Engineering & Construction Company

100 Execution

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

Al Waha Contracting 109 Execution

Ethane Cracker cum Aromatics Complex at Mesaieed QP/Honam Foster Wheeler Not Appointed 3000 EPC Bid

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

Pearl GTL Project - Wellhead Platforms Package QP/Royal Dutch/Shell JGC Corporation/Halliburton J Ray McDermott 300 Execution

Al Khaleej Gas Development Phase 2 - Offshore PackageExxonMobil Corporation; RasGas Company limited (Ras Laffan Liquefi ed Natural Gas Company );

Chiyoda Corporation, Qatar J Ray McDermott, Qatar 300 Execution

Gas Sweetening Facilities Integrated Project at Mesaieed Qatar Petroleum Worley Parsons Not Appointed 200 EPC Bid

Doha Urban Pipeline Relocation Project Qatar Petroleum Tebodin Punj Lloyd 181 Execution

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

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

Marjan, Zuluf and Safaniya Oil Fields Upgrade Saudi Aramco WorleyParsons J Ray McDermott 250 Execution

South Rub Al Khali Gas Development SRAK KCA Deutag Drilling 2000 Execution

5 Sulfur Recovery Units in Uthmaniyah & Shedgum Saudi Aramco Imad Company for Trading & Contracting 150 Execution

Kayan Petrochemicals Complex at Jubail - Storage Tanks Package Saudi Kayan Petrochemical Company Fluor Arabia Ltd.Dayim Punj Lloyd Construction Contracting Co. Ltd.

79 Execution

Sasref Refi nery - Ultra-low Sulphur Diesel Complex Sasref ABB Lummus Global ABB Lummus Global 350 Execution

Production Facilities Exp. at Hout Field in DZ Al Khafji Joint Operations Toyo Engineering SNC Lavalin / SaudConsult / Nesma & Partners Contracting Company

200 Execution

Onshore Maintenance Potential Project Saudi Aramco RHM/CAT/Suedrohrbau 300 Execution

Sasref Refi nery - Control Systems Upgrade Sasref Petrocon Arabia / Yokogawa Middle East 100 Execution

Biaxially Oriented Polypropylene Plant (BOPP) in Dammam Rowad National Plastics Co. DMT Technology Holding 53 Execution

Yanbu Gas Plant Expansion Saudi Aramco Jacobs Engineering Inc. Enppi 180 Execution

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

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

Ras Tanura Refi nery Saudi Aramco WorleyParsons WorleyParsons 8000 Execution


PROJECTS


Sharq Petrochemicals Complex -Ethane/propane cracker SharqChina Technical Consultants Incorporate(CTCI); Shaw InternationalSaudi Arabia;

Shaw International / China Technical Consultants Incorporate(CTCI);

1000 Execution

Hawiyah Plant Expansion Saudi Aramco Jacobs Engineering Inc. Tecnicas Reunidas 400 Execution

Shedgum - Yanbu NGL Line Expansion - Phase 2 Saudi Aramco Suedrohrbau 200 Execution

Ras Tanura Refi nery - DHT Unit Saudi Aramco Foster Wheeler Samsung Saudi Arabia Ltd. 500 Execution

Refi ning & Integrated Petrochemicals Complex Nama Not Appointed 10 Study

Ebgaig - Al Khobar Natural Gas Pipeline SWCC Not Appointed 100 FEED

Ethylene Amines Project At Jubail Arabian Amines CompanyJacobs Engineering / Burns & McDonnell Engineering

Hyundai E&CC / Hanwha E & C 300 Execution

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

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

850 Execution

Jubail Acetyle Complex - Acetic Acid and Acetic Anhydride Sipchem Eastman Chemical Fluor Corporation 600 Execution

Dhahran Pipe Upgrade Saudi Aramco Not Appointed 200 EPC Bid

Jubail Petrochemical Complex - Phase 3 Sipchem Not Appointed 8000 EPC Bid

Petrochemicals Complex in Yanbu Saudi Aramco / Sabic Not Appointed Not Appointed 3000 Study

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

Hyundai Engineering & Construction Company (HDEC)/ Petrofac

600 Execution

Rabigh Refi nery Expansion - Phase 2Petro-Rabigh / Saudi Aramco / Sumitomo Corporation

JGC Corporation Not Appointed 4000 EPC Bid

Ammonia Plant In Jubail Sipchem Haldor Topsoe Not Appointed 10 FEED

SRU in Khursaniyah Gas Plant Saudi Aramco Jacobs Engineering Group Inc.Snamprogetti / Imad Company for Trading & Contracting

150 Execution

Shaybah Field Expansion - Phase 2 - Package 1 Saudi Aramco Jacobs/SNC Lavalin/SaudConsult SNC Lavalin 700 Execution

Jubail-2 Export Refi nery - Storage Tank Package Saudi Aramco / Total Technip, Saudi Arabia Punj LIoyd Ltd / Petro Steel 800 Execution

Karan Field Exploration - Offshore Elements Package Saudi Aramco Petrocon Arabia, Saudi Arabia J Ray McDermott 500 Execution

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

Wafra Steam Injection - Phase 2 Chevron / Saudi Aramco Saudi Arabian Texaco INC 500 Execution

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

Manifa Oil Field Redevelopment - Onshore Package Saudi Aramco Foster Wheeler JGC Corporation / TR / Snamprogetti 2500 Execution

Manifa Oil Field Redevelopment - Platforms Package Saudi Aramco J Ray McDermott, Saudi Arabia 800 Execution

Ras Tanura Petrochemicals Complex Saudi Aramco / Dow Kellogg Brown & Root Not Appointed 17000 FEED

ASU at Jubail National Industrial Gas Company (GAS) Not Appointed 100 EPC Bid

Petrokemya - 4 in Jubail Petrokemya Technip / Aker Kvaerner Not Appointed 10 FEED

Upgrade of the Oil Refi nery at YanbuSaudi Aramco Mobil Refi nery Company Ltd. (Samref)

Worley Parsons, Saudi Arabia 2000 Execution

Sasref Refi nery Expansion Sasref ABB Lummus Global Not Appointed 275 FEED

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

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

Adnoc Storage Facility in Hamriyah Free Zone Takreer Not Appointed 75 EPC Bid

Borouge Complex Expansion - Phase 2: Offsites and Utililies AUH Polymers Company Foster Wheeler Technicas Reunidas 1230 Execution

Hail Field Development ADCO / Gasco Not Appointed Not Appointed 749 Study

Crude Oil Pipeline Replacement Zadco Not Appointed 100 EPC Bid

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

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

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

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

Modifi cations to 41 Well Head Towers Adma - Opco WorleyParsons Not Appointed 150 EPC Bid

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

Asab Full Field Development ADCO Foster Wheeler Petrofac 1000 Execution

Bab Oil fi eld Development - Phase 2 ADCO Technip SK Engineering & Construction Company 700 Execution

Gas Processing Facility in UAQ Gulf Energy Company Technip/Kvaerner Not Appointed 120 EPC Bid

Umm al Dalkh Full Field Development Zadco Not Appointed Not Appointed 650 Study

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

Onshore and offshore Sour Gas Development ADNOC / ConocoPhilips; Fluor Corporation Not Appointed 10000 EPC Bid

Integrated Gas Development (IGD) - Pack 6 Adnoc / Adma-Opco Fluor Corporation Abu Dhabi NPCC 405 Execution

Borouge Complex Expansion - Phase 2: Olefi ns Conversion Unit AUH Polymers Company ABB Lummus Global, Abu Dhabi Samsung Corporation, Dubai 300 Execution

Fertil Plant Expansion Fertil Jacobs Engineering Not Appointed 450 EPC Bid

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

OAG Network-Pack 2 - Das Island to Ras Al Qila Pipeline Gasco Fluor Corporation NPCC 241 Execution

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

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

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

Habshan Gas Complex Expansion GASCO Bechtel, Abu Dhabi Fluor Corporation 1000 Execution

Taweelah-Qidfa Gas Pipeline DEL Stroytransgaz, Abu Dhabi 418 EPC Bid

PROJECTS



PROJECTS

Asab Gas Development (AGD) Modifi cations - Package 1 GASCO Fluor Corporation Not Appointed 500 EPC Bid

Jebel Dhanna Crude Oil Storage Tanks Adco ILF Consulting Not Appointed 100 EPC Bid

LNG Storage Hub in Techno Park, Dubai DMCC / Techno Park / LNG Impel Not Appointed 2000 FEED

Umm Al Lulu Oil Field Development Zadco Tebodin Middle East, Abu Dhabi Not Appointed 1500 EPC Bid

New Refi nery in Fujairah AGOL Mott MacDonald Not Appointed 1000 Study

Borouge Complex Expansion - Phase 3: PDH & Phenolics Complex AUH Polymers Company Not Appointed Not Appointed 1000 Study

Abu Dhabi Gas Grid ADNOC Distribution Terasen Int’l/ Lootah BC Gas Not Appointed 1000 Pre FEED Bid

Zirku Production Facilities Debottlenecking Zadco Not Appointed Not Appointed 450 EPC Bid

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

200 Execution

Urea Production Unit Debottlenecking FertilMitsubishi Heavy Industries Middle East, Dubai; Uhde Fertilizer Technology; Urea Casale;

Descon Engineering, Abu Dhabi 180 Execution

Tank Terminals in Fujairah Emarat Penspen International Not Appointed 22 EPC Bid

Khubai-Margham Gas Pipeline Margham Dubai Est. Parsons Brinkerhoff Not Appointed 30 FEED

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

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

Satah Full Field Development Zadco Tebodin Middle East Not Appointed 250 Design

Expansion of Sulphur Handling Facility in Ruwais Takreer Washington Group Int’l Dodsal 272 Execution

Cathodic Protection on Wellhead Casing in Bab and Ruwais Fields ADCO ILF Consulting Engineers, Abu Dhabi EMDAD LLC, Abu Dhabi; Alsa Engineering; 27 Execution

Gas Exploration Facilities - Kahaif, Moveyid and SajaaBP Exploration Operating Co Ltd(BP Sharjah)

AMEC, Abu Dhabi Not Appointed 500 FEED

Expansion of Ruwais Refi nery - Package 1 Takreer Foster Wheeler, Abu Dhabi Not Appointed 400 EPC Bid

Crude Oil Storage Tanks at Umm al-Nar Refi nery Takreer Engineers India Ltd Al Hussam General Contracting 33 Execution

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

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

NGL Pipeline from Asab to Ruwais Gasco VECO Dodsal 153 Execution

Gas Injection Topsides at Upper Zakum Zadco Technip Not Appointed 400 FEED

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

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

2100 Execution

Refi nery in Fujairah IPIC Foster Wheeler Not Appointed 12000 Concept stage

RIG STATISTICS


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

RED SEAManager Rig Type Current Status Current Region Rig Name

Diamond Offshore Jackup Drilling MidEast - Red Sea Ocean Heritage

Diamond Offshore Jackup Drilling MidEast - Red Sea Ocean Spur

Egyptian Drilling Platform Rig Ready Stacked MidEast - Red Sea EDC 21

Egyptian Drilling Platform Rig Workover MidEast - Red Sea EDC 34

Egyptian Drilling Jackup Drilling MidEast - Red Sea Kamose

Egyptian Drilling Jackup Drilling MidEast - Red Sea Senusret

Egyptian Drilling Jackup Modifi cation MidEast - Red Sea Zoser

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

Maersk Drilling Jackup Drilling MidEast - Red Sea Maersk Endurer

Saipem Jackup Workover MidEast - Red Sea Perro Negro 4

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

Transocean Inc. Jackup Ready Stacked MidEast - Red Sea GSF Key Manhattan

Transocean Inc. Jackup Ready Stacked MidEast - Red Sea GSF Rig 103

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

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

Transocean Inc. Jackup Ready Stacked MidEast - Red Sea Interocean III

Transocean Inc. Jackup Drilling MidEast - Red Sea Transocean Comet

Transocean Inc. Jackup Drilling MidEast - Red Sea Transocean Mercury

PERSIAN GULFManager Rig Type Current Status Current Region Rig Name

Aban Offshore Jackup Drilling MidEast - Persian Gulf Aban VI

Aban Offshore Jackup Ready Stacked MidEast - Persian Gulf Aban VII

Aban Offshore Jackup Drilling MidEast - Persian Gulf Aban VIII

Aban Offshore Jackup Ready Stacked MidEast - Persian Gulf Deep Driller 6

Arabian Drilling Jackup Drilling MidEast - Persian Gulf Arabdrill 17

Arabian Drilling Jackup Ready Stacked MidEast - Persian Gulf Arabdrill 22

Arabian Drilling Jackup Drilling MidEast - Persian Gulf Arabdrill 8

BassDrill Ltd. Tender Under Construction MidEast - Persian Gulf BassDrill Tender TBN 1

BassDrill Ltd. Tender Under Construction MidEast - Persian Gulf BassDrill Tender TBN 2

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

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

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

Delta Offshore Rig Logistics Limited Semisub Modifi cation MidEast - Persian Gulf Viner 1

ENSCO Jackup Ready Stacked MidEast - Persian Gulf ENSCO 50

ENSCO Jackup Drilling MidEast - Persian Gulf ENSCO 54



ENSCO Jackup Modifi cation MidEast - Persian Gulf ENSCO 88





Foresight Group Jackup Drilling MidEast - Persian Gulf Foresight Driller 5

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

GSP Jackup Drilling MidEast - Persian Gulf Atlas

GSP Jackup Drilling MidEast - Persian Gulf Orizont

Gulf Drilling International Jackup Drilling MidEast - Persian Gulf Al Doha

Gulf Drilling International Jackup Waiting on Loc MidEast - Persian Gulf Al Khor

Gulf Drilling International Jackup Drilling MidEast - Persian Gulf Al Zubarah

Gulf Drilling International Jackup Waiting on Loc MidEast - Persian Gulf GULF-2

Gulf Drilling International Jackup Drilling MidEast - Persian Gulf GULF-3

RIG STATISTICS


Manager Rig Type Current Status Current Region Rig Name

Hercules Offshore Jackup Drilling MidEast - Persian Gulf Hercules 170



Hercules Offshore Jackup Under Construction MidEast - Persian Gulf MEJU Jackup TBN 1

Hercules Offshore Jackup Under Construction MidEast - Persian Gulf MEJU Jackup TBN 2

Japan Drilling Jackup Drilling MidEast - Persian Gulf Sagadril 1

Japan Drilling Jackup Drilling MidEast - Persian Gulf Sagadril 2

KS Energy Services Ltd. Jackup Under Construction MidEast - Persian Gulf KS Endeavour

Maersk Drilling Jackup Drilling MidEast - Persian Gulf Maersk Resilient

MENAdrill Jackup Under Construction MidEast - Persian Gulf MENAdrill Jackup TBN 1

MENAdrill Jackup Under Construction MidEast - Persian Gulf MENAdrill Jackup TBN 2

Nabors Offshore Jackup Drilling MidEast - Persian Gulf Nabors 240

Nabors Offshore Jackup Workover MidEast - Persian Gulf Nabors 655




Nabors Offshore Jackup Ready Stacked MidEast - Persian Gulf Nabors 867

National Drilling Jackup Modifi cation MidEast - Persian Gulf Al Bzoom

National Drilling Jackup Drilling MidEast - Persian Gulf Al Ghallan

National Drilling Jackup Drilling MidEast - Persian Gulf Al Hail

National Drilling Jackup Drilling MidEast - Persian Gulf Al Ittihad

National Drilling Jackup Drilling MidEast - Persian Gulf Al Yasat

National Drilling Jackup Drilling MidEast - Persian Gulf Beynouna

National Drilling Jackup Drilling MidEast - Persian Gulf Brakah

National Drilling Jackup Drilling MidEast - Persian Gulf Delma

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RIG STATISTICS


Manager Rig Type Current Status Current Region Rig Name

National Drilling Jackup Drilling MidEast - Persian Gulf Diyina

National Drilling Jackup Drilling MidEast - Persian Gulf Junana

National Drilling Jackup Drilling MidEast - Persian Gulf Yemilah

Navymar Shipping Company Jackup Drilling MidEast - Persian Gulf Oriental 1

NIDC Jackup Drilling MidEast - Persian Gulf Alborz

NIDC Jackup Drilling MidEast - Persian Gulf Alvand

NIDC Jackup Under Construction MidEast - Persian Gulf NIDC Jackup TBN 1

NIDC Jackup Under Construction MidEast - Persian Gulf NIDC Jackup TBN 2

NIDC Jackup Modifi cation MidEast - Persian Gulf Shahid Modarress

NIDC Jackup Drilling MidEast - Persian Gulf Shahid Rajaiee

Noble Drilling Jackup Ready Stacked MidEast - Persian Gulf Noble Cees van Diemen

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

Noble Drilling Jackup Drilling MidEast - Persian Gulf Noble Chuck Syring

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

Noble Drilling Jackup Drilling MidEast - Persian Gulf Noble Dhabi II

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

Noble Drilling Jackup Accommodation MidEast - Persian Gulf Noble Gene House

Noble Drilling Jackup Ready Stacked MidEast - Persian Gulf Noble Gus Androes

Noble Drilling Jackup Drilling MidEast - Persian Gulf Noble Harvey Duhaney

Noble Drilling Jackup Drilling MidEast - Persian Gulf Noble Jimmy Puckett

Noble Drilling Jackup Drilling MidEast - Persian Gulf Noble Kenneth Delaney

Noble Drilling Jackup Drilling MidEast - Persian Gulf Noble Mark Burns

Noble Drilling Jackup Drilling MidEast - Persian Gulf Noble Roger Lewis

Noble Drilling Jackup Modifi cation MidEast - Persian Gulf Noble Roy Rhodes

Odebrecht Semisub Under Construction MidEast - Persian Gulf Norbe VI

Pride International Jackup Drilling MidEast - Persian Gulf Pride Montana

Pride International Jackup Drilling MidEast - Persian Gulf Pride North Dakota

Queiroz Galvao Perfuracioes Semisub Under Construction MidEast - Persian Gulf Lone Star

Rig Manager Undisclosed Jackup Cold Stacked MidEast - Persian Gulf KS Venture

Riginvest GP Jackup Under Construction MidEast - Persian Gulf Riginvest Jackup TBN 1

Rowan Jackup Drilling MidEast - Persian Gulf Arch Rowan

Rowan Jackup Drilling MidEast - Persian Gulf Bob Keller

Rowan Jackup Modifi cation MidEast - Persian Gulf Charles Rowan

Rowan Jackup Drilling MidEast - Persian Gulf Gilbert Rowe

Rowan Jackup Drilling MidEast - Persian Gulf Hank Boswell

Rowan Jackup Modifi cation MidEast - Persian Gulf Rowan California

Rowan Jackup Ready Stacked MidEast - Persian Gulf Rowan Middletown

Rowan Jackup Drilling MidEast - Persian Gulf Rowan Paris

Rowan Jackup Drilling MidEast - Persian Gulf Scooter Yeargain

Royal Oyster Group Jackup Under Construction MidEast - Persian Gulf Thule Energy

Royal Oyster Group Jackup Under Construction MidEast - Persian Gulf Thule Force

Royal Oyster Group Jackup Modifi cation MidEast - Persian Gulf Thule Power

Saipem Jackup Ready Stacked MidEast - Persian Gulf Perro Negro 2

Saipem Jackup Workover MidEast - Persian Gulf Perro Negro 5

Saipem Jackup Drilling MidEast - Persian Gulf Perro Negro 7

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

Scorpion Offshore Jackup Drilling MidEast - Persian Gulf Offshore Freedom

Scorpion Offshore Jackup Drilling MidEast - Persian Gulf Offshore Intrepid

Scorpion Offshore Jackup Under Construction MidEast - Persian Gulf Offshore Mischief

SeaWolf Oil Services Limited Jackup Ready Stacked MidEast - Persian Gulf SeaWolf Onome

SeaWolf Oil Services Limited Jackup Ready Stacked MidEast - Persian Gulf SeaWolf Oritsetimeyin

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

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

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

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

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

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

August 2009 Oil&Gas Middle East 55www.arabianbusiness.com/energy

CLASSIFIEDS

P.O. Box 2752, Dubai, U.A.ETel: +971 (4) 3472646 Fax: +971 (4) 3472148


FACE TO FACE

What is Chevron’s region-al presence today?We are the only international oil company operating in the partitioned neutral zone (PNZ) between Saudi Arabia and Kuwait, and the exciting news is that we’ve just extended our concession for another 30 years, to 2019. We’ve had a concession there for over 60 years. Chevron has a long history in the region, dating back to the 1930s when we first discovered oil in Dammam at Well No 7. We also, through our predecessor company, discovered the Burgan field in Kuwait, and the Ghwar field in Saudi Arabia.

What are you doing in the Partitioned Neutral Zone?We’re producing around 250 000 barrels of oil there each day and, through the steamflooding tech-nology we are deploying, we are looking to enhance the production of heavy oil. We have completed the first part of a pilot project last year. Now we are moving to 25 wells. Additionally, we are looking to boost production at Wafra field. The tests will take about three years, and if that’s successful we anticipate that it has the potential to be applied to other carbonate reservoirs in the Middle East. We’ve been using this technology for four decades in California and for two decades in Indonesia.

What does steamflooding technology entail?It involves super-heated steam being injected into the reservoir to boost production. This has been very successful in sandstone reservoirs and, this is our first go with a carbonate reservoir. Our

initial results are really very good. In California we’ve actually been able to eliminate decline, so we are confident it has the potential to increase production.

Do you manage a healthy ration of local employees? In the Middle East our direct employees run to several thou-sand, and around 90% of those are Gulf Nationals. We have a very strong commitment to employing local employees wherever we do business. Around 90% are Saudi Nationals, and that includes a significant portion of the manage-ment structure there too. For many year’s we’ve run a successful training exchange programme with our Houston office which helps.

Are you engaged any-where outside KSA and the PNZ?We have a presence in Qatar which includes a marketing arrangement with the GTL ORYX facility. We have just inaugurated an energy efficiency centre at the Qatar Science and Engineering Park,

which represents a $20 million commitment over five years looking at energy efficiency solu-tions for the Middle East climate, including solar technology. Also, Chevron has downstream oper-ations throughout the region, including aviation services. Our primary focus on exploration and production is going to be in the Partitioned Neutral Zone, but we are also looking at new opportuni-ties more broadly.

What opportunities are most exciting at the moment?Iraq is particularly exciting. We are very interested in participating there, but clearly the terms and conditions have to be right. We were prequalified for two of the

bid rounds. The first two were for brownfield production boosting at exisiting facilities. Iraq is inter-esting for us because we already have a programme, which has been running for five years, to train Iraqi engineers and scientists. Most of that training takes place in the US, and we have trained about a thou-sand engineers already, so that has really been quite successful.

Why would an national oil company partner with Chevron?Our long history in the region means we are very familiar with the business landscape. There are three core parts to the offering we bring to deals with national oil companies. Project management skills – and that’s notable because there are over 40 ongoing projects in which Chevron has a net $1 billion-plus interest, in terms of capital committed. Also, there is the technology we bring and that’s across the whole deepwater, LNG, and EOR and heavy oil spectrum. Thirdly, there’s the capital we can bring. We have a $23 billion capital programme this year, which is unchanged from previous years. We understand the need to invest for the long term, whilst acknowl-edging the fact that demand is down at the moment. As econo-mies of the world rebound we want to make sure that there is supply and ways to meet that demand.

Chevron: Steamfl ooding the neutral zone

FACE TO FACE Kurt Glaubitz, upstream relations team leader, Chevron

“In the Middle East alone our direct employees run to several thousands, and around 90% of those are Gulf Nationals”Kurt Glaubitz

Regional Office: P.O.Box 11539, Dubai, U.A.E.Tel: +971 4 3526 626 Fax: +971 4 3520 524e-mail: [email protected]

DNV has won the Seatrade and Lloyd's List Awards 2008.In addition, DNV also picked up 'Best Surveyor for 2008' at the MASTECH Awards.

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