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GE opens Iraq facility

Regional security situationcontinues to deteriorate

Sealing solutions for pipelineexpansion joints

Determining valve reliabilityand performance

Customised corrosionprotection solutions

Oil firms base decisions on‘untrustworthy data’

ETRM goes mobile

Are IOCs taking too many risks in Iraq? See page 18

Is the gaspipeline

industry outof its depth?

UK £10, USA $16.50

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Oil Review Middle East Issue Two 2013 3

Energy efficient and sustainable compressed air solutions?That’d be CompAir!Join us at ComVac - Hannover Messe on stand B54 Hall 26 from 8th to 12th April 2013.

Editor’s noteOUR COVER STORY this issue asks whether the gas pipeline industry is out ofits depth. Does pipeline supply of gas at extreme depths have to be limited tohigh priced, specially made and very thick pipes? Not necessarily, says ourspecial correspondent, who discusses a new approach to deepwater pipelinesupply that adapts some existing technologies and, potentially, cuts costs —without undermining safety standards. The thorny issue of the deterioratingregional security situation is covered from page 10. Our analyst says newfrontier regions in other parts of the world could benefit from the volatility.

ColumnsIndustry news and executives’ calendar 4

AnalysisRegional Security 10The security situation in the region is continuing on a downward spiral, says our specialcorrespondent.

Project Profile 14Basra International Oil and Gas Hub (BIOGH) has entered into a joint venture agreementwith the Iraqi Free Zone Authority to establish a free zone for oil and gas servicecompanies at the Khor Al Zubair Port. The zone will be completed in five phases.plo

Exploration & ProductionIraq 18Are IOCs taking too many risks in Iraq?ration & Production

GasInterview 22Rashid Al-Jarwan, Executive Director and Acting CEO of Dana Gas discusses the outlookfor the regional gas market, including the latest developments in Egypt and Iraq.

Petrochemicals & RefiningDevelopments 30The latest news from the regional petrochemicals and refining markets.

Exhibition PreviewSOGAT 2013 34New sour gas field exploitation is focused on but not limited to the Middle East giventhe many interesting activities taking place in North and South America, Russia, CentralAsia and the Far East. The forthcoming SOGAT event will tackle the latest issues.

Offshore Mediterranean 2013 (OMC) 37‘Charting a course’ is the appropriately nautical theme for this year’s OffshoreMediterranean Conference. With Libya back on stream the sea unites a wide regionwith huge potential.

Technical FocusInnovations 40Introducing some of the latest technology for the oil and gas sector.

Pipelines 48Does pipeline supply of gas at extreme depths have to be limited to high priced,specially made and very thick pipes?

Corrosion Protection 54Dr. Daniel Keßler, Deputy Business Segment Manager TIP TOP Oberflaechenschutz ElbeGmbH, a REMA TIP TOP Group company, on the subject of corrosion protection and itsnecessity

Offshore Equipment 58Offshore Solutions has expanded its OAS operations in Qatar.

Valves & Actuators 60The importance of force friction ratio in determining valve reliability and performance inthe energy sector.

Pipeline Expansion Joints 64Interview with Sherwin Damdar, whose current role is project leader for Garlock SealingTechnologies elastomer expansion joint division.

Communications & ITAnalysis 66A survey undertaken by Oracle Corporation has revealed that close to 50 per cent of oilexecutives have been making decicions based on data they don’t trust.

ETRM 68Why competitive advantage in the energy sector is increasingly being secured by thequality of the technology deployed.

Arabic SectionNews 4

Contents

Managing Editor: David Clancy

Editorial and Design team: Bob Adams, Lizzie Carroll, Andrew Croft, Ranganath GS, Kasturi Gupta,Prashant AP, Rhonita Patnaik, Genaro Santos, Zsa Tebbit, Nicky Valsamakis, Julian Walker and Ben Watts

Publisher: Nick Fordham Advertising Sales Director: Pallavi Pandey

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

For country contacts, see Arabic contentsHead Office: Middle East Regional Office:Alain Charles Publishing Ltd Alain Charles Middle East FZ-LLCUniversity House Office 215, Loft 2A11-13 Lower Grosvenor Place P.O. Box 502207London SW1W 0EX, United Kingdom Dubai Media City, UAETelephone: +44 (0) 20 7834 7676 Telephone: +971 4 448 9260 Fax: +44 (0) 20 7973 0076 Fax: +971 4 448 9261

Production: Donatella Moranelli, Nathanielle Kumar, Nasima Osman, Nick Salt, Jeremy Walters andSophia White - Email: [email protected]

Subscriptions: Email: [email protected]: Derek FordhamPrinted by: Emirates Printing Press, Dubai© Oil Review Middle East ISSN: 1464-9314

www.oilreview.meemail: [email protected]

Serving the world of business

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JAPAN AND SAUDI Arabia have signed an agreement that allowsJapan to make emergency requests for additional supplies of crudeoil from Saudi Arabia.Under the agreement, a telephone hotline would be set up betweenthe two governments, allowing Japan to quickly seek additional oilsupplies in the event of extraordinary circumstances such as a spikein the price of oil, according to Japan's Nikkei.The amount of oilwhich could be soughtby Japan has not beendisclosed. Nor did itspecify on what termsJapan would be able tosecure more oil norwhether a request foremergency supplieswould be binding onRiyadh.Saudi Arabia currently pumps approximately 9.05mn bpd and saysthat it has the ability to produce up to 12.5mn bpd if needed.Japan has grown increasingly reliant on fossil fuels since theFukushima nuclear disaster, which has led to the shutdown of mostof the resource-poor country's nuclear power plants.The deal represents a significant increase in co-operation betweenJapan, which is one of the world’s largest oil importers, and SaudiArabia, which has been listed as the top producer in theOrganisation of the Petroleum Exporting Countries (OPEC).Saudi Arabia signed a deal with Japan in June to store 3.8mn barrelsof crude in the Asian nation's Okinawa Oil Base.

BAHRAIN-BASED INVESTCORP HAS agreed to buy a controllingstake in Scottish oil field services provider Hydrasun from EquistonePartners Europe Limited.The company did not disclose the size of the stake or the value.Mohammed Al-Shroogi, Investcorp's president for the Gulf business,said, "We are excited about acquiring a leading company in aresilient and rapidly growing segment of the oil and gas sector. Webelieve that Hydrasun is well positioned to continue its growth."Hydrasun is specifically engaged in the integration, manufactureand testing of hydraulic equipment and fluid connectors for theoffshore oil and gas sector. Its products and services are mainlyused across the offshore oil and gas sector with furtherapplication in the petrochemical sector. The company employsaround 600 personnel.Bob Drummond, chief executive of Hydrasun, said, "We aredelighted to partner with Investcorp given their previous successin investing in the international oil and gas sector coupled withtheir global network and deep rooted heritage in the Gulf. Webelieve this transaction will enable us to continue to groworganically and pursue strategic acquisitions to further accelerateour international footprint."Al-Shroogi added, "This acquisition is the result of a continuouseffort to bridge international companies with expansion plans in theGulf's growing oil and gas sector. Hydrasun represents anopportunity for us to fulfill our mandate from our investmentpartners in the Investcorp Gulf Opportunity Fund."

GE Oil & Gas has established a new technology and service centre near BasraCity that brings the latest GE technology and expertise to local customers tohelp boost production in the Rumaila oilfield.

The facility will function as a base for the supply of pressure controlequipment to Iraq’s drilling and production sector. The center will also providea wide range of services including installation and maintenance, testing,inspections, repair and storage. Future services will include complete non-destructive testing capabilities, machine, welding and heat treatment, blastingand painting and API certification and recertification.

Rami Qasem, president and chief executive officer for the Middle East,North Africa and Turkey of GE Oil & Gas, said, “The new Basra center providesa broad spectrum of solutions under one roof and is situated locally to meet

our customers’ demands for rapid drillingand production support."

The continued development ofRumaila is a key to Iraq’s long-termeconomic growth and more than 250production wells are currently operatingin the field. The oil produced from thefield represents about 40 per cent ofIraq’s total oil production.

"Through our investment instrengthening our local presence, we areable to significantly improve our deliverytime for products and services, while alsogiving us a base for training anddeveloping a local work force," he added.

GE Oil & Gas opens new facility in Iraq

Japan is very oil import-dependent

CRUDE OIL OUTPUT from OPEC countries increased in February,the first monthly increase since October, according to a Reutersand Bloomberg survey.Supply from OPEC countries was 30.3mn bpd, up from 30.21mn bpdin January, the Reuters survey showed. The Bloomberg’s surveynoted that OPEC output increased by 97,000 barrels to an average30.69mn bpd in February from a revised 30.60mn last month.Saudi Arabia boosted supply to market by 100,000 bpd in Februaryaccording to the Reuters survey, to 9.2mn bpd. It had cut outputsharply in the last two months of 2012, and again in January.According to the survey by Bloomberg, Libyan output increased130,000 barrels to 1.24mn bpd in February, showing thebiggest gain of any OPEC member. The rise in production wasdue to the reopening of the country’s Zueitina export terminalearly last month.Iraq, the world's fastest-growing exporter, also increased supply.But crude exports from the Kurdistan Region of Iraq wererestrained by the dispute between the central government andthe Kurdistan region over payments.Iran experienced further supply decreases, which saw its crudeexports fall in January to around 1.1mn bpd from a post-sanctionshigh of at least 1.4mn bpd in the previous month. Exports slippedfurther in February as well, the Reuters survey showed. Iran wasOPEC’s biggest producer after Saudi Arabia a year ago but is nowtied in sixth place. Algeria was another OPEC country that saw a cut in production by70,000 barrels to 1.13mn barrels a day in February, the leastsince May 2003, stated the Bloomberg report.Gulf countries also saw a rise in supply, according to theBloomberg report. The UAE and Kuwait saw output bolstered inFebruary. The UAE increased production by 50,000 barrels a dayto 2.65mn last month. Kuwaiti output climbed 50,000 barrels aday to 2.95mn, the biggest rise since September 2012.

Oil Review Middle East Issue Two 2013

Investcorp acquires oil field services firmHydrasun

OPEC output risesSaudi Arabia and Japan agreeemergency oil deal

Rami Qasem

New

s

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Oil Review Middle East Issue Two 2013

Ind

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E x e c u t i v e s C a l e n d a r 2 0 1 3MARCH 2013

24-28 SOGAT ABU DHABI www.sogat.org

31-4 April Digital Oilfields World Summit ABU DHABI www.digitaloilfieldsme.com

APRIL 2013

15-17 SPE North Africa Technical Conference CAIRO www.spe.org/events/natc/2013

16-19 LNG 17 HOUSTON www.lng17.org

18-21 Iran Oil Show TEHRAN www.iranoilshow.org

22-25 OIL & GAS LIBYA TRIPOLI www.oilandgaslibya.com

MAY 2013

6-9 OTC HOUSTON www.otcnet.org/2013

12-14 Petrochem Arabia 2013 DHAHRAN www.petrochem-arabia.com

16-18 POGEE KARACHI www.pogeepakistan.com

JUNE 2013

5-7 Oil & Gas Asia KUALA LUMPUR www.oilandgas-asia.com

10-13 EAGE Conference & Expo LONDON www.eage.org/events

11-13 Gas & Oil Expo CALGARY www.gasandoilexpo.com

SEPTEMBER 2013

2-5 Erbil Oil & Gas ERBIL www.erbiloilgas.com

3-6 Offshore Europe ABERDEEN www.offshore-europe.co.uk

29-2 Oct MEPEC 2013 MANAMA www.mepec.org

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

THE IRAQI PARLIAMENT passedthe country's 2013 budget,allocating US$650mn of centralgovernment payments tocompanies working in theKurdistan Region of Iraq, afraction of the US$$3.5bn theKurdistan Regional Government

(KRG) had asked for.Ibrahim Al-Mutlaq, a memberof the parliamentary financecommittee, was quoted byReuters as saying that Kurdishlawmakers had boycotted thesession which led to thepassing of the budget.

The KRG claims that theUS$3.5bn it requested includesoutstanding paymentscovering all exports between2010 and 2013. The budget decision adds toexisting tensions between theKurdish region and Baghdad over

oil exploration rights, theredevelopment of oil fields in adisputed territory. The disputeover the payment of oil revenueshas already led to thesuspension of crude oil exportsfrom the Kurdish region sinceDecember.

Iraq passes 2013 budget despite boycott

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Oil Review Middle East Issue Two 2013

WWHILE OIL MARKETS are shiftingfocus from last year’spreoccupation with perceivedmarket tightness the fragility of

the physical and political security situation in theMiddle East and North Africa seems to be on theincrease. Waves in the aftermath of the 2011uprisings continue to roll across the region, raisingunpredictability, while states find it increasinglyhard to protect vital installations amid domesticand international challenges to their security forces.

The overall story has shifted in the global oilmarkets in Q1 of 2013. Oil prices have continued tohold up, but unlike last year, when the focus and fearwas for market tightness, it is Saudi production cuts,counterbalancing a loosened supply and demandbalance, which have underpinned oil prices.

Underlying risksThe improved supply and demand balance has ledthe market actors to relax somewhat aboutsecurity issues, although it is not escaping marketwatchers that the underlying risks remain high.Indeed, while talk about the risk for a largeconflagration between Iran and the US or Israel,has diminished so far this year, the underlyingrisks connected to the Islamic Republic’s nuclearprogramme remain the same, while elsewheredirect threats to stability - and the oil and gassector in particular - seem to proliferate.

Saudi Arabia, OPEC’s swing producer, again hasa more substantial spare capacity ready tocompensate for eventual crude productiondisruptions elsewhere. This tends to mean thatindustry risk issues to a lesser degree make it ontonews headlines. That does however not mean thatindustry actors are in an improved position, whetherNOCs from large producers, or IOCs working in theregion, in one shape or another.

OutagesLooking across the MENA region, threeoverarching security issues, all with a bearing onthe oil and gas industry, stand out: Iran continuesto be a problem, with sanctions hurting itseconomy and shutting more than one millionbarrels per day of its production capacity; Syria issinking ever deeper into civil war and sectarianviolence, keeping all neighbours on their toesand creating some severe instability spill-over;and Libya largely remains a in power vacuum,particularly from a security point of view, at atime when Islamist militants active in the Sahelregion are relocating given the Western military

support to Mali’s government. These three mainareas of concern have all in some waysdeepened since 2012.

The increased room for manoeuvre SaudiArabia has today, after throttling back on itsproduction to just more than nine million bpdfrom 10mn bpd in mid-2012 is only a partialconsolation. It means that significant furtheroutages can be compensated by the kingdom,however it does not resolve anything with regardsto the long-term instability to both the market’sproduction and risk calculations, as well as theindustry’s own operational worries.

OfflineThe latter again came into focus in January, withthe attack by militant Islamists on Algeria’s BP-operated In Amenas gas field. The attack andfollowing hostage situation tragically killed 38

workers and damaged two of the complex’ threeone billion cubic metres (bcm) capacity gas trains,which still remain offline.

The attack raised the North African region’sthreat levels to new heights, as it drew in Algeriainto the circle of high-risk areas, despite thecountry’s history of very successfully protecting itsoil and gas installations, even during its bloody civilwar in the 1990s. Operations in Algeria were seenas fairly safe, given its army’s capabilities and theinaccessibility and remoteness of its oil and gasfields in the Sahara desert.

Over the past decades, it was the nationalHQ and government relations operations of oilcompanies in Algeria, naturally located inAlgiers, which were seen as high risk, due to thecountry’s problems with Islamist insurgents. Thisproblem tended to be fairly urban in its natureand thereby confined to its cities and thedensely populated countryside in its north. Itwas not spilling into its oil regions.

OvershadowedIn Amenas was partly triggered and directlyconnected to the French-led intervention inAlgeria’s southern neighbour Mali, repulsing a

Recent events at In Amenas drew Algeria into the circle of high-risk areas

Looking further east, theSyrian civil war is in itself

creating only a limited impacton oil and gas production

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Despite a loosened oil market, security in the region continues on a downward spiral.Independent oil analyst, Samuel Ciszuk surveys the scene.

Security situation continues

to deteriorate

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successful militant Islamist takeover of much ofthat country’s north and centre. Piggybacking andthen upstaging a long-standing rebellion amongMali’s northern Tuareg population, al-Qaida-related elements were able to create a safe havenin a large swathe of the sparsely populatedMalian hinterland.

As they suddenly were being forced torelocate, a spill over into Libya, where the centralpower remains very weak vis-à-vis local andregional tribal and political militias, seemedinevitable, but was overshadowed in media reportsby the daring In Amenas raid.

It has later transpired that the In Amenasattacks were staged from across the Libyanborder, underlining the new nature of the threatand exposing a new (long and hard-to-monitor)frontier for the Algerian’s to try to control. Tocomplicate matters, there is no buffer region ofhundreds of kilometres of empty desert andmountains between oil and gas installations andthe border with Libya, as is the case with thesouthern border with Mali. Still, the In Amenasattack, while opening a new 'threat-frontier', tooka lot of specific planning and cost the militants asignificant amount of manpower and resources,which might mean that, given the Algeriansecurity forces’ capabilities, other attacks mightnot follow immediately, making this more of aone-off, rather than a wave.

Potential bastionsFor Libya, this is less likely. The centralgovernment remains fragmented and largelyunable to build the strong institutions the countrywould need, but which the former regime, underleader Muammar Qadhafi, kept it deprived of.That means that a Libya increasingly infiltrated by

al-Qaida-affiliated elements and awash withweapons in the wake of the 2011 uprising andcivil war, easily could deteriorate into a situationsimilar to Mali’s, threatening the oil and gasproduction in the country.

The only potential bastions against theIslamists are the different armed tribal groups andmilitias across the country, but should thepolitical process in the country flounder, rivalriesbetween those groups - already so evident albeitstill largely non-violent - could easily beexploited and hijacked by militants. As history fartoo often has showed, such deterioratingsituations often benefit the most violent andextreme force, as it can start to look as a securityguarantor to the civil population, particularlywhere there is a lack of credible protection fromthe government.

Investment programmeThe Libyan situation is further complicated by adeteriorating security and governance situation inTunisia and Egypt, the other two countries seeingsystemic political changes during the Arab spring.The potential existence of a militant safe havenbetween Egypt, Tunisia and Algeria means that oiland gas companies will have to up their securityplanning and spending between Egypt’s WesternDesert play, Tunisia’s onshore acreage and Algeria’seastern Ghadames and Illizi basins.

As for Libya, where the threat levels must besaid to have risen markedly across the whole of thecountry, investment programmes - barely restartedduring 2012- are already being reconsidered.

Looking further east, the Syrian civil war is initself creating only a limited impact on oil and gasproduction, as the country is a relatively small oiland gas producer and only a marginal oil exporter.It is however located in the middle of one of theworld’s most sensitive areas, given its ties to theIsrael-Palestine conflict (not to mentions Syria’sown conflict with Israel), it remains heavilyinvolved with and tied to several of Lebanon’spolitical factions, including the Hezbollahmovement, as well as the Kurdish regionaldilemma and some of Iraq’s Western Sunni tribes.

Syrian instability is also permanentlythreatening to spill over into Jordan and infect its

historically fractioned relations with its largePalestinian minority.

Main concernIraq however remains the main concern from an oiland gas industry point of view, even thoughLebanon might be the country most easily drawninto a civil war-like situation. The Kurdish ties toSyria, means that the hitherto most stable part ofIraq could potentially be either drawn in, or see itsrelationship with the both Iraq’s Shi’a dominatedgovernment, or the Sunni minority beingcomplicated by events outside of Iraq.

Despite the autonomous region’s recent successin mending fences with Turkey and raising hopesfor bilateral Turkish-Iraqi Kurdistan oil and gasexport pipelines, it is clear that Kurdish militancy inSyria and its spill over into Turkey has spookedsome parts of the Turkish political establishment,threatening to derail the region’s recent progress.

The spill over of militancy is however morevisible in the Sunni population in Iraq. New regionalflows of weapons have come at a time of boilingpolitical - and largely sectarian- dissatisfactionwith the central government and this is visible inrecent levels of violence.

For oil companies this is a worry and it comesat a time of increasing IOC dissatisfaction with Iraqiinvestment terms and failures to cut red tape.Working to tight upstream project deadlines, withpotentially severe penalties, oil companies arefrustrated by the government’s inability to lifthurdles largely caused by its bureaucracy.

As many oil companies are approaching thesecond phases of their investment programmes atthe projects awarded in 2009-2010, there is reasonto be somewhat pessimistic over their willingnessto fulfil contracts without significant Iraqi fiscalconcessions, something which looks unlikely giventhe current political deadlock.

SanctionsOver all this swerves the Iranian problem and itspotential to escalate to a regional crisis. Whilerecent months have seen a renewed willingness tonegotiate, there is little expectation that any resultswill be produced until after the presidentialelections in June. Iran’s Supreme Leader, AyatollahAli Khamenei, will hope to have cleared the playingfield of incumbent President MahmoudAhmedinejad and his allies, in order to bettercontrol the overall message communicated bothexternally and internally. In the meantime Iran’seconomy is sinking deeper and deeper into themalaise caused by sanctions, making both theelectorate and the political elite’s actions lesspredictable, should the desperation start to visiblygrow - for good or for bad.

The global oil market has a greater redundancythis year than last year, which is of an immediatecomfort, but for oil and gas companies - and in thelonger run consumers- the underlying challengesand changes in the Middle East and North Africahave not been as hard to predict and as potentiallyfast-moving for decades, to the likely benefit ofunconventional upstream plays and new frontierregions in other parts of the world. n

Oil Review Middle East Issue Two 2013

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Improved security has been adopted at many of the region’s oil, gas and petrochemical installations

Saudi Arabia, OPEC’s swingproducer, again has a moresubstantial spare capacityready to compensate for

eventual crude productiondisruptions elsewhere

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BIOGH's International Oil and Gas Free Zone will be the only oil and gasfree zone in Iraq and Oil Review heard from the company looking to setup the new free zone and DLA Piper who advised on the deal.

Oil Review Middle East Issue Two 2013

Port of Khor Al Zubair

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Iraq’s oil and gas logistics centre

takes off

www.oilreview.me

BBASRA INTERNATIONAL OIL and Gas Hub Limited (BIOGH), whichis a private company, has entered into a joint venture with theIraqi Free Zone Authority, an independent authority that is part ofthe Ministry of Finance to establish a free zone for oil and gas

service companies at the Khor Al Zubair port.BIOGH is located within the major oil and gas production area of Southern

Iraq and the four super giant oilfields Rumaila, Zubair, West Qurna, and Majnoonare all close by.

Richard Cotton, head of marketing & leasing at Basra Oil & Gas Free Zonestated, “The Basra International Oil and Gas Free Zone is the first oil and gasfree zone to be developed in Iraq.”

The joint venture is effective for 50 years, but after 25 years the revenueshare between BIOGH and the Free Zone Authority changes.

Cotton said that BIOGH Ltd has signed a development managementagreement with EPGI, a global real estate, construction and infrastructuredevelopment specialist, to deliver the project.

“EPGI will manage the global systems integration, shared facilities,amenities, and public service components,” he added.

Salem Chalabi, the head of the Iraq Practice at DLA Piper, the law firm thatadvised on the deal, described how the deal came about with the help of a littleknown Iraqi free zone law, enacted in 1998, that established free zones in anumber of places in Iraq, including one in Khor Al Zubair.

"We entered into negotiations with the Ministry of Finance and the FreeZone Authority and negotiations took quite a long time as they had neverdone anything like this. Previously they had dealt with small free zoneprojects that included no infrastructure and the intention here was to build abig development, almost the size of a town. This is the uniqueness of thisproject," he noted.

BIOGH aims to be similar to the largest free zone for the hydrocarbon sector,which is the Onne zone in Nigeria according to Salem Chalabi.

Land for logistical operations in Iraq has been difficult to find and theopportunity offered by BIOGH could have a real importance in the growth of theoil and gas sector in Southern Iraq.

"Our clients thought it would be great to do a deal with South OilCompany (SOC) to actually develop the free zone for the purpose of bringingin oil and gas logistic operations and the model of this is a place calledOnne in Nigeria," remarked Chalabi.

SOC has been one of the main supporters of the zone, which has beencrucial in getting the project off the ground, as the state-owned oilcompany appeared to prefer focusing on its principal upstream activities,according to Chalabi.

"They have leased some land in the past but the demand is so high theyhave been looking at new ways to offer logistic space," he added.

BIOGH aims to be similar to the largest freezone for the hydrocarbon sector, which is

the Onne zone in Nigeria

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Size and scopeThe zone will be completed in five phases and will extend over 11 sq-km;the zone will comprise mixed-use industrial, logistics, oil and gas storage,commercial and residential accommodation and customs.

Cotton said that it has been estimated that BIOGH will employapproximately 10,000-15,000 Iraqi nationals over an initial period of 12 years.

Connecting the many facilities within the project will be an important taskand transportation will be provided for the tenants within the Free Zone, whichwill be supported by a network of service roads. The main access road networkfrom the Basra International Free Zone will provide excellent connections to theadjacent shipping port of Khor Al Zubair, local airports including BasraInternational Airport, the city of Basra, and other strategic centres in Iraq andsurrounding regions.

"The critical thing with this free zone is that it will take a significant amountof investment and there has been a lot of interest from the oil companies,because being a free zone they can import their material free from customs andstore it there," said Chalabi.

Cotton remarked, “There has been serious interest from a mixture of trulyglobal oil and gas tenants, large and small, who are either working in Iraq orwho have researched the country and are now wishing to begin operations andrecognize the economic and operational advantages of being on a third partymanaged facility.”

The BIOGH Public Private Partnership with the Free Zone Authority willassist in enabling the latter’s ambition to provide the appropriate facilitieswithin a Free Trade Zone for international companies to facilitate and optimisethis significant increase in production capability.

Iraq has potentially the world’s second largest oil reserves and is currentlythe world’s third largest oil exporter. Iraq is looking to spend over billions ofdollars on oil and gas infrastructure to increase production from the currentthree million bpd to a desired nine million bpd by 2020.

“This translates into significant financial rewards for tenants at the BasraInternational Oil and Gas Free Zone including no capital gains or corporatetaxes, and free repatriation of capital and profit,“ argued Cotton.

"Our client has to develop the infrastructure and they will enter into a largenumber of leases (in the form of sub-development agreements) with oilcompanies and oil service companies and manufacturing companies all tosupply the oil sector," Chalabi stated.

Cotton added, “The programme for the Basra International Oil and Gas FreeZone will be tenant driven: land parcels will be leased on a long term basis andtenants will have the opportunity to erect purpose-built structures and facilitiesto their desired specification and needs.”

The service contracts in the South have quite a stringent ramp up processand the new free zone is meant to aid in building up the logistic private sectordimension of the oil and gas sector.

ExposureCotton explained that BIOGH has worked over the past four years tosuccessfully maximise the financial incentives and competitive advantages itcan offer new tenants and residents.

“The core offerings to our tenants will be our biggest promotional tool,”noted Cotton.

Strategic benefits include the option of 100 per cent ownership in anybusiness venture without the need for local partners within the development, allinternational imports and exports, including all imported machinery, equipmentand raw materials, will be exempted from customs duties, and the project willhave its own dedicated customs and administration facilities

“BIOGH has built a dedicated and experienced in-house marketing andleasing team based in London, New York, Dubai and Basra, and supported byexternal agencies to ensure global exposure,” he pointed out.

Cotton said on-line enquiries and interest are currently running at around2,500 hits per week from all the major oil and gas world centres.

In conclusion Chalabi, argued that, "Infrastructure for the oil sector is wherethe next really big focus will be and our client is aggressively making plans forthe country's first oil and gas free zone."■

Oil Review Middle East Issue Two 2013

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Salem Chalabi

On-line enquiries and interest for BIOGH arecurrently running at around 2,500 hits per week

from all the major oil and gas world centres

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Oil Review Middle East Issue Two 2013

IIT IS TELLING that Iraq’s top parliamentarianin charge of resolving the stalematesurrounding the country’s oil legislation isdispirited by the government’s inaction on

the matter.Janabi's warning that international oil

companies are operating in a legal vacuum in Iraqwill cause further concerns amongst investorsregarding their contractual arrangements and raisesquestions over Iraq’s long-term oil production.

At the heart of the dispute is Baghdad’s strugglewith the assertive Kurdistan Region in the north; withor without a national oil law, however, both sides areentrenched in their positions, widening the gapbetween the two administrations with no agreementon a national oil law in sight. Meanwhile, the KRGcontinues its independent energy policy based on itsown oil law enacted in 2007.

Yet, while Al-Janabi is right in stating that thelack of a unified oil law may have created legal risksfor IOCs operating in federal Iraq, it has notdiscouraged companies from renewing contractualterms with the central government (i.e. thenegotiations over the reduction of production plateautargets agreed between LUKoil, ENI, BP, and Shelland Baghdad are a case in point).

Neither has the missing oil law put offcompanies from investing in the Kurdistan Regionthus far.

ConsequencesHowever, IOCs will need to question themselvesover the possible consequences of dealing with twodifferent contractual and legal models in Iraq, ofwhich the deals in the Kurdistan Region areultimately not recognised by the centralgovernment.

Will oil deals in the Kurdistan Region beconsidered valid in international arbitrationtribunals and are there risks to service contractssigned in federal Iraq given that there are not basedon a national oil law? Adnan Al-Janabi’s concernsover the lack of a national oil law are valid. Theimpasse in finding a national law will remain a riskfor IOCs operating in Iraq and the Kurdistan Region– particularly if things go wrong.

In the case of any expulsion, expropriation orother major disagreement between IOCs and thegovernment in which either side faces acommercial loss of some sorts, taking a case tointernational arbitration tribunal would beproblematic given the lack of reference to anational hydrocarbons law.

Yet, aside from legal concerns and risks forIOCs, Al-Janabi’s finger-pointing has to be analysedin the context of a deterioration of relationsbetween the KRG and Baghdad.

Despite an ongoing oil-for-money paymentdispute, military tensions in disputed areas south ofKirkuk province, and Baghdad’s repeated threats toexpel companies from federal Iraq (such asExxonMobil from West Qurna-1) because of theirsimultaneous involvement in the Kurdistan Region,the KRG has become more assertive in pushing itsown energy-policy agenda.

EssentialIn the absence of a national oil law, the KRG hasmanaged to push its policy ahead. There are threekey driving forces at play: first, the KRG’sinsistence on political autonomy as a federalregion with the right to explore and export oilindependently and a guarantee to share revenueswith the federal government as per its ownKurdistan Region oil law enacted in 2007; second,

the ongoing investments of IOCs seeking to take ashare in the Kurdistan region’s geologicalprospects and who are prepared to build exportinfrastructure for hydrocarbons; and third, thepolitical support of energy-hungry Turkey, whichhas increasingly antagonised Baghdad to counterIran’s influence in Iraq and Syria, in particular.

Turkey’s role in getting KRG oil to the marketsis essential but it is having an inflammatory effecton existing tensions between Erbil and Baghdad.Recently, the US ambassador to Turkey, FrancisRicciardone, held a two-hour meeting with officialsfrom the Turkish foreign ministry in which hereportedly warned that Turkey's energy policy andsupport for the KRG might cause the disintegrationof Iraq and lead to chaos, according to Turkishmedia reports.

Secret agreementNevertheless, he also insisted that Iraq needs toagree on a national oil law: "The Iraqis have beenstruggling to pass a hydrocarbons law. It is veryimportant that they succeed in that," in quotescarried by Reuters.

To make matters worse, Iranian media reportshave quoted Aytun Ciray, a Turkish oppositionmember of parliament from the RepublicanPeople’s Party, saying that Ankara and Erbil havesigned a secret agreement to export KRG oil to theglobal market via Turkey without Baghdad’sknowledge.

Whether this deal is confirmed or not, the KRG’soil minister, Ashti Hawrami, has made it clearrecently that the KRG will press ahead withbuilding its own oil export pipeline to Turkeydespite Baghdad’s (and increasingly US) objectionsdue to the risk of a disintegration of Iraq. Hawramicomplained that the KRG is entitled to 17 per centof Iraq’s refined products, but receives only threeper cent – insufficient refining capacity to satisfydomestic demand. ■

The absence of a national oil law means the KRG haspursued an independent energy policy

Will oil deals in the KurdistanRegion be considered valid in

international arbitrationtribunals?

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In a bold public statement, the chairman of Iraq’s parliamentary oil and energycommittee, Adnan Al-Janabi, criticised the central government for its lack of will inpushing ahead a unified oil law fearing that international oil companies are risking"work in a legal vaccum" in Iraq.

Are IOCs taking too many risks

in Iraq?

www.oilreview.me

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SINGAPORE-LISTED KS ENERGY (KSE) disclosed recently that it hassigned a contract with Taq Taq Operating Company (TTOPCO) tosupply a land rig for its drilling operations in the Kurdistan Regionof Iraq.The rig, KSDiscoverer 4,is expectedto start workin March thisyear. Underthe terms oftheagreement,the rig willbecontractedfor one yearor until thecompletionof oneexploration well and two development wells, whichever is later. TTOPCO has the option to extend the contract for a further period ofone year.The contract, over the minimum period of one year, is worthUS$16.8mn.OCBC Investment Research noted in an analyst note that KSE hasproven adept at raising funds from investors and partners such asItochu, Dutco and Actis. OCBC added that it is expecting news offurther tie-ups moving into the rest of this year.

WESTERNZAGROS RESOURCES HAS spudded the latest well of its extensiveexploration and appraisal program in the Kurdistan Region of Iraq. Drillingbegan on the Kurdamir-3 appraisal well on the Kurdamir Block on February22, 2013.

3D seismic surveys are also underway on both the Kurdamir and GarmianBlocks, and preparations are progressing for the three wells on the GarmianBlock planned for this year.

Simon Hatfield, CEO of WesternZagros commented, “2013 promises tobe an exciting, transformational year for the company. We are activelydelineating our two major discoveries at Sarqala and Kurdamir and alsopursuing high-impact step-out exploration on our Baram and Hasiraprospects.”

Drilling operations have begun at the Kurdamir-3 appraisal well on thegiant Kurdamir Discovery. The well was spudded on February 22, 2013. Thewell is expected to take approx. four months to reach the planned totaldepth of 2,800 metres. The company expects the gross costs of drilling andtesting operations to be US$50 mn.

The Kurdamir-3 well is being drilled on the southwest flank of theKurdamir structure approx. three kilometres and five kilometres from thecompany's Kurdamir-1 and Kurdamir-2 discovery wells respectively.Kurdamir-3 will further appraise the extent of the oil leg in the Oligoceneinterval previously encountered in the Kurdamir 1 and 2 wells.

A 3D survey started in January and is expected to be completed early inthe Q3. The survey encompasses 184 sq-km on the Kurdamir Block and alsoextends into the neighbouring Topkhana Block in order to define moreclearly the areal extent of the Oligocene, Eocene and Cretaceous reservoirs.The data from this survey will be used to decide on future appraisal welllocations and refine resource assessments of the existing discovery.

RUSSIA'S FIFTH-LARGEST CRUDE producer, Gazprom Neft, has signed a deal toenter an oil project in the Kurdistan Region of Iraq (KRI), a company officialsaid. The contract was signed despite tension between local authorities andcentral government. International oil firms have hit problems developing fieldsin the KRI.

The central Iraqi government claims authority over oilfields in thecountry while local authorities have been trying to secure separate dealswith oil firms.

Gazprom Neft, theoil arm of the world'stop gas producer,Gazprom, said it hassecured 80 per cent ofthe Halabja project, thecompany's third projectin the region.

“We entered thethird project (in theKurdistan Region ofIraq), the Halabja block.It is close to the blockswe already own,” VadimYakovlev, Gazprom

Neft's first chief executive officer deputy, said in a conference call. He said that the block's reserves are estimated at between 90mn and

100mn tonnes. “Now, we have to prepare and approve the geological research

programme,” he added.

Gazprom Neft signs KRI deal

www.ksenergy.com.sg

ITALIAN MAJOR ENI reported recently that its average oil and gasoutput for Q4 of 2012 averaged 1.75mn barrels of oil equivalent(boe) per day, in line with expectations. The figure was a seven percent improvement over Q4 of 2011 and a 3.6 per cent improvementover the previous quarter.ENI confirmed that it had made a record amount of discoveredresources during the year, with 3.64 bn barrels of oil equivalent(Bboe) found. Meanwhile, proved reserves were at an eight-year record by the endof 2012 at 7.7 Bboe.ENI CEO Paolo Scaroni commented in a statement: "2012 was arecord year for exploration at Eni with discovered resources aboutsix times yearly production thanks to our outstanding achievementsin Mozambique and our other successes in West Africa, in theBarents Sea and in Indonesia. We have also made significantprogress in developing projects, further increasing our reserves tobest ever levels."In Mozambique, ENI executed an exploration campaign during 2012in its operated Area 4 offshore in the Rovuma Basin, where it provedthe Mamba gas complex to be a world-class discovery. Eniestimates the full mineral potential of Area 4 at 75 trillion cubicfeet of gas in place, and the firm plans to drill at least two morewells there to fully establish the upside potential.The firm added that it expects production to grow further this year,the principal drivers of this being the start up of major projects:Kashagan in Kazakhstan, Angola LNG and the firm’s gas assets inAlgeria.With a capital budget of some EUR 12.8 bn, (US$16.78 bn) ENI saidthat during this year it will be focused on the development ofreserves in West and North Africa, Norway, Iraq and Venezuela, aswell as exploration projects in West Africa, Egypt, the US andemerging areas.

Oil Review Middle East Issue Two 2013

WesternZagros spuds Kurdamir-3 well

ENI - a record year for explorationKS Energy to supply land rig

www.gazprom-neft.com

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AAL-JARWAN OPENED BY saying that with global demand for energyin general and natural gas in particular on the rise, thefundamentals of the energy industry remained strong.

Egypt prominence The growing importance of Egypt can be seen in the raft of new gas discoveriesannounced by Dana Gas all of last year. The firm entered the Egyptian market in2005 and has invested more than US$650mn in exploration, development,production and infrastructure building, according to Al-Jarwan.

For the future, he said, "We have our commitment investments this yearwhich we will use to fund a multi-well drilling programme and ongoinginfrastructure requirements."

Last year Dana Gas undertook a 7-well drilling programme and made fourdiscoveries. “We anticipate a similar success rate this year," noted Al-Jarwan.

The last two discoveries in Egypt, Alyam-1 and Balsam-1, were onshorewells located in the Nile Delta Basin and "were significant discoveries, in termsof reserve numbers but also as confirmation that the Nile Delta is a prolifichydrocarbon-bearing basin," Al-Jarwan said.

Appraisal drilling will be conducted on both discoveries and together withthe third discovery at West Sama, Dana Gas has filed a declaration ofcommerciality.

Al-Jarwan explained that the firm's development plans for the areainclude making use of the company’s existing pipeline and processinginfrastructure, commercialising these wells quickly and bringing additionalcash flow to the company.

The new discoveries in Egypt have meant that Dana Gas's commercialreserves have increased, with initial estimates indicating that Alyam-1 andBalsam-1 could increase the company’s commercial reserves between 17 (1P)and 95 (2P) MMBOE. According to Al-Jarwan these estimates have enabledDana Gas to maintain gross proved reserves (as of 31 December 2012) of 87mnMMBOE.

He turned to the reason why overall production dipped slightly in Egypt lastyear, which was down to the firm's conservative cash policy last year whichhas meant a reduction in CAPEX investments which resulted in an overall dipin production in Egypt.

"For 2013, we have reaffirmed an increase in CAPEX and expect productionto pick up as we bring on stream new wells and increase flow-rates at otherswhilst also investing in the overall infrastructure to sustain the long-termgrowth of our operations in Egypt," he said.

NGL pushThe firm is positive about its NGL progressing plant after it began operations inOctober last year. In its first three months, the EBGDCo NGL extraction plant hasprocessed a combined 12,340 metric tonnes of Propane (10,500) and Butane(1,840). The average gas flow-rate for the quarter was 75mn standard cubic feetper day (mmscfd) with recovery rates of 98.9 per cent and 99.9 per centrespectively.

In fact Al-Jarwan said that the feed gas rate is expected to increasegradually once gas is received from gas fields in and around Ras Shukheir area.

"We have also completed all outstanding project items related to the plantother than the finalisation of the design and testing programmes on the gasflow-rate which is being conducted by Exterran," he noted.

Once testing is complete and the plant is fully operational, Dana Gas

anticipates doubling their gas flow-rate and EGBDCo anticipates extractionof 120,000 tonnes per annum of propane and butane from a gas stream of150 mmscfd.

Al-Jarwan sees a bright future for NGL as "it provides us with additionalrevenue streams and given the huge demand internally (in Egypt) andinternationally, the project provides strong validation of our strategic investmentin the gas plants, alongside our partners."

Iraq growthAl-Jarwan is fairly positive about the firm's prospects in Iraq and the firm and itsjoint venture partners celebrated the JV’s fourth year of operations in theKurdistan Region of Iraq. Production growth continued and the Khor Mor field isnow producing approximately 80,000 boepd with further plans to expand dailyproduction in 2013.

This positive outlook is related to the optimistic outlook for increased gasproduction in the Kurdistan Region of Iraq. The Khor Mor field supplies gas totwo power stations, providing electricity to more than four million people. TwoLPG trains were commissioned and are operational and the average productionrate has increased year on year.

"Our joint-venture partners have achieved an incredible amount in the fouryears of operations to date," he pointed out.

The longer-term plans are to increase production capacity to meet both thelocal gas requirements and for export.

Al-Jarwan touched on the wrangling between the central government inBaghdad and the Kurdistan Region of Iraq. He remarked, "It is well documentedthat both sets of authorities are in talks to diffuse the growing tensions

Oil Review Middle East spoke to Rashid Al-Jarwan, executive director and acting CEOof Dana Gas about the Sharjah-based company’s outlook for the gas market in theregion and the latest developments in Egypt and Iraq.

Oil Review Middle East Issue Two 2013

Rashid Al-Jarwan

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Dana Gas

riding high

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HOTWORKNeeds a SafeHouse Habitat

regarding revenue sharing agreements. We understanddiscussions are on going with regular interaction andwe look forward to a peaceful resolution, allowing usand others to get on with exploring and producing oiland gas for both the local population and forexportation internationally."

Sukuk offeringAl-Jarwan was clear that the refinancing transactionannounced in December 2012 "is the optimumsolution for shareholders and for Sukuk holders, andenables the company to focus on growing reserves,steadily building production and ultimately deliveringsuperior returns for shareholders."

He added, “The agreement allows a more flexibleand sustainable financial structure, enabling thecompany to move forward in pursuit of its growthstrategy."

One of the main hurdles the companies faces inboth Iraq and Egypt is the outstanding receivablesfrom both countries amounting to US$550mn. Bothgovernments have been proactive in settling these butover the short term, they continue to affect the company in relation to itsinvestment in exploration, appraisal and development programmes and itsability to repay the sukuk.

Al-Jarwan noted, "I cannot predict whether all outstanding receivables willbe paid this year. However, I am encouraged by the significant efforts made byboth governments to address the backlog of payments due. "

OutlookDana Gas revealed strong 2012 results and posted a 20 per cent profit growth,strengthened their cash position, grow their operations with production growthin the Kurdistan Region of Iraq and new discoveries in Egypt.

"Combined with the proposed sukuk refinancing result, Dana is wellpositioned to push forward with their growth plans in 2013," argued Al-Jarwan. ■

Oil Review Middle East Issue Two 2013

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www.danagas.com

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Oil Review Middle East Issue Two 2013

DRYDOCKS WORLD ANNOUNCED that the FSRU Toscana conversion project atthe Dubai based shipyard, is going to be finalised.

The Floating Storage and Re-gasification Unit is intended for a 20 yeardesign life 12 nautical miles off the shores of north-west Italy, in the waters ofthe Tyrrhenian Sea close to Livorno.

Khamis Juma Buamim, chairman of Drydocks World and MaritimeWorld stated, "We indeed keen to take on increasingly challengingprojects for the offshore deep sea exploration and production sector as wehave proven time and again that we have the capacity and capability toimplement such projects."

The Liquefied Natural Gas (LNG) carrier Golar Frost, a 2004 Korean built

vessel with a design draught of 11 meters and lightweight of 34,000 tonnes andstorage capacity of 135,000 cu/m of LNG, came to Dubai in June 2009 forconversion for contractor Saipem and client OLT Offshore LNG Toscana SpA.

PETROLEUM DEVELOPMENT OMAN (PDO) hasmade a major gas discovery in Mabrouk Deepin the northern part of its concession area.

Mabrouk Deep, some 40 km west of SaihRawl, Oman’s main gas field, has estimated in-place volumes amounting to 2.9 trillion cubicfeet (tcf) of gas and 115 mn barrels ofcondensate. Exploratory drilling took place lastyear at depths of up to 5,000meters and a largefield of some 60 sq km was located.

PDO managingdirector RaoulRestucci said, “Thescale of the find atMabrouk istremendous news forOman as it willenable a furthersignificantboost toeconomicgrowth.

“Thediscovery underlines the truly excellent workthat our Exploration Directorate is conducting toidentify and appraise new hydrocarbonreservoirs which will sustain the Sultanate formany years to come.”

In 2012, PDO made five new oil discoveries,amounting to approximately 300mn barrels ofstock tank oil initially in place (STOIIP) fromShuaiba and Gharif reservoirs.

Restucci added, “PDO accounts for around70 per cent of the country’s crude oil productionand nearly all of its natural gas supply so thereis a huge onus on us to find and develop newfields of a challenging or “unconventional”nature to replace those that are declining.

Restucci said 2013 would see anintensification of effort in key areas such asexploration, enhanced oil recovery and businessefficiency.

He stated that PDO’s Exploration Directorateis planning to drill around 100 wells over thenext five years and spend more than$US800mn in its search for new reservoirs.

By 2022, Restucci said there would also be16 significant new projects comprising overUS$11bn of investment, with a target ofdeveloping more than a billion barrels of oil.

PDO makes new gas find

26

The FSRU-Toscana namingceremony was held in Dubai

Conversion of FSRU Toscana completed

Gas

www.oilreview.me

METS

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Oil Review Middle East Issue Two 2013

NORWAY'S GOLAR LNG has been selected by the Jordanian Energy Ministry asthe preferred bidder to supply a 3.5 mtpa Floating Storage and RegasificationUnit (FSRU), according to a top official.

"We will enter negotiations with the first-ranking bidder to concludethe lease agreement. The contract may be signed by the end of March,"Marwan Bakain, director of the natural gas department was reported byInterfax as saying.

Golar LNG, the carrier fleet owner and floating storage and regasificationunit provider, said it was encouraged by the Jordanian Ministry of Energy andMineral Resources' decision to select Golar as preferred bidder for their FSRUrequirement for which negotiations on a firm contract should begin shortly.

The terminal will have an initial base-case send-out capacity of 4.2mn cubicmetres per day (MMcm/d), with the possibility of increasing send-out to 14.2MMcm/d. The Energy Ministry intends to launch the tender for LNG supply tothe facility within the next two months and aims to start imports in the secondhalf of 2014.

SHARJAH-BASED DANA GAS has announced that commercial production atWest Sama-1 and Allium-1 fields in Egypt has begun, less than two monthsafter initial well testing was conducted.

Gas production at West Sama-1 and Allium-1 has been routed throughDana Gas’ South El Manzala and El Wastani gas plant respectively.

Rashid Al-Jarwan, executive director of Dana Gas, said, "The wells willincrease our production by 566,337 cu/m day, providing much neededadditional production to the Egyptian market and maintaining vital supplies ofgas for power generation.”

Production from the two wells is expected to add 3,450 bopd to thecompany’s 2012 Egypt year-end output rate of 32,000 bopd.

Dana Gas has planned to bring Balsam-1 into production in secondhalf of 2013.

These new fields are among the three discoveries made by Dana Gas inEgypt’s Nile Delta Basin during the company’s 2012 multi-well drillingprogramme.

Patrick Allman-Ward, general manager of Dana Gas Egypt, said, “Dana Gasis well positioned to bring new discoveries on stream due to the onshorelocation of our assets where tie ins to our existing pipelines and processinginfrastructure can be made quickly, relatively inexpensively and ensures a highreturn on our new gas discoveries.”

Dana Gas is currently the sixth largest gas producer in Egypt. Dana GasEgypt operates in the Nile Delta through the El Wastani Petroleum Company(Wasco), Dana Gas’ joint-venture company with the Egyptian Natural GasHolding Company (EGAS).

Dana Gas starts production at Egyptian gas sites

28

Golar LNG’s operational FSRU unit Golar Freeze in Dubai

Golar chosen as preferred bidder in JordanFSRU project

www.oilreview.me

Flexible in Severe Service Conditions

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Low-emission packing or bellows suitable for toxic and lethal service to ensure environmental protection and personnel safety

The valves are available as globe, angle and three-way valves.

SAMSON: Over 100 years of German quality

S06 ORME 2 2013 Gas 02_Layout 1 12/03/2013 11:35 Page 28

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BAUER KOMPRESSOREN GCC FZE, P.O Box 261413, Unit # AF07, Jebel Ali Free Zone, Dubai, UAE, Phone +971-4-886 0259, Fax +971-4-886 0260

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S07 ORME 2 2013 Petrochemicals_Layout 1 12/03/2013 11:41 Page 29

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30

DOW CHEMICAL CO. (Dow) has been awarded an additionalUS$318mn in an arbitration case with Petrochemical IndustriesCompany of Kuwait (PIC) related to the K-Dow transaction.The award, from the International Court of Arbitration of theInternational Chamber of Commerce, brings the total amount DowChemical has been awarded to US$2.48 bn and is the last step inthe disciplined arbitration process, bringing the process to an end.The partial award of US$2.16bn was announced last May. The extra award is linked to a dispute over a scrapped multibillion-dollar joint venture, know as K-Dow Petrochemicals, in 2008."Payment of these damages of nearly US$2.5bn will allow Dow toaccelerate its priority uses for cash by further strengthening ourbalance sheet," Dow chief executive Andrew Liveris said. "Dow andKuwait share a long history and strong partnership, and this awardruling brings suitable closure to the arbitration process."

HONEYWELL HAS BEEN awarded four major contracts worth a combinedUS$40mn over an 18-month duration for the Borouge petrochemicalscomplex in Ruwais, Abu Dhabi.

Honeywell will be the main automation contractor (MAC) for this project,providing Linde and other engineering, procurement and construction (EPCs)contractors involved in the project with integrated control and safety systems.

The installation of Honeywell Process Solutions’(HPS) control and safetysystems, Experion® Process Knowledge System C300, Safety Manager, andAdvanced Process Control will allow for operational integration, improvedproduction, increased safety and reliability, and maximum operability andprofitability. The Real Time Information Management System will provide

Borouge 3 with business solutions thatstreamline, centralise and optimise operations,allowing for further profitability and productivity.

“We continue to see countries in theMiddle East, such as the UAE, invest ingrowing their petrochemical capacity, as partof economic diversification strategies,” saidMansour Belhadj, sales director of HoneywellProcess Solutions Middle East.

Borouge 3 is the latest expansion ofBorouge’s polyolefins plant in Abu Dhabi andwill manufacture ethylene, polyethylene,polypropylene, and low-density polyethylene(LDPE), alongside associated butane, utilitiesand offsite facilities.

THE STATE-OWNED OMAN Oil Refineries and Petroleum Industries Company(Orpic) said it is planning a new 280 km pipeline connecting refineriesbetween Sohar and Muscat.

The project will increase thestorage capacity for diesel, petroland connect the current storagefacilities in Sohar and Mina AlFahal refineries.

Musab Al-Mahruqi, CEO of Orpiccommented, "The new storage andloading station will reduce the load on

the current Mina Al Fahal station which considered as the main station for loadingand distributing fuel in Oman. As much as 70 per cent of Oman fuel is beingdistributed from Mina Al Fahal and the rest from Sohar Refineries and Raysut Port."

"With this significant investment, we will remove the need to ship refinedproducts from Sohar to Muscat and then truck them through the city, as we dotoday. This will bring a new level of efficiency," he added.

The implementation of the Muscat-Sohar Pipeline Project will be carriedout in three phases. Under the first Phase, a pipeline will connect the MuscatInternational Airport and the Mina Al Fahal Refinery by a main storagefacility, while in Phase 2 a pipeline will be built to connect the Mina Al FahalRefinery and the Sohar Refinery as well as the construction of anintermediate storage facility in Muscat. In the final Phase, an additionalstrategic storage facility will be built, which will provide strategic reserves forOman, allowing fuel stocking for 30 days.

Orpic to connect refineries between Soharand Muscat

Andrew Liveris

JACOBS ENGINEERING GROUP was awarded a contract from SaudiAramco Lubricating Oil Refining Co. (Luberef) to provide projectmanagement consulting (PMC) services for an expansion project at itslube oil refinery in Yanbu, Saudi Arabia. Under the terms of the agreement, Jacobs will provide PMC servicesfor both inside battery limits (ISBL) and outside battery limits(OSBL). The ISBL services include a new lube oil unit, a new sulfurcomplex, a new hydrogen manufacturing unit, and an expansion ofthe propane de-asphalting unit. The OSBL services involve allutilities, tanks and infrastructure. Luberef's President and CEO Hasan Jamaan Alzahrani stated, "Thisexpansion project will add value to the Kingdom's economyincluding employment, and provide high quality lubricants to themarkets we serve."Jacobs' Leiden, Netherlands office is managing the overall project incollaboration with Jacobs' offices in Al-Khobar, Saudi Arabia andother locations. The Yanbu Refinery expansion is expected to increase base oilproduction to meet future demands for high quality GR-II and GR-IIIbase oils; increase the GR-I Bright stock to almost double currentproduction; produce higher-value byproducts (naphtha, diesel, andkerosene)."In addition, it is part of Luberef's overall strategy to provide highquality base oil with different product slates of GR-I, GR-II, and GR-IIIto strengthen Luberef's position as a leading supplier. Luberef islooking forward to working with Jacobs to execute this majormilestone of the expansion project," added Alzahrani.Jacobs Group vice president Bassim Shebaro noted, "After oursuccessful FEED efforts, we welcome the opportunity to continue tosupport Luberef's production of higher-grade clean fuels." Luberef, a joint venture between Saudi Aramco and JadwaIndustrial Investment.

Oil Review Middle East Issue Two 2013

Honeywell awarded Four contracts by Borouge

Jacobs awarded Luberef Yanbuexpansion deal

Dow Chemical awarded bigger payoutfrom Kuwait

Mina Al Fahal RefineryPetr

och

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icals

www.oilreview.me

Honeywell's Experion ProcessKnowledge System C300

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Oil Review Middle East Issue Two 2013

QATAR PETROLEUM (QP) and Shell have awarded the Front-EndEngineering and Design (FEED) contract to Fluor for the joint Al-Karaana Petrochemicals Complex in Ras Laffan Industrial City.The award is an important milestone for the project as it completesthe full scope and definition for the development of the project. Thechairman of the project’s Executive Committee, Mohammed Nasser Al-Hajri noted, “The focus of the project team is on the delivery of aquality FEED that will be a major step towards successfully deliveringthis project.”Mohammed bin Saleh Al-Sada, Qatar’s Minister of Energy andchairman & managing director of QP, said, “The Al-KaraanaPetrochemicals Complex project has been envisioned to further boostQatar’s rapidly growing stature in the global petrochemicals industry. Iam very pleased to see the project taking a significant step forward.”The scope under consideration for the Al-Karaana PetrochemicalComplex project includes the following: a world-scale steam cracker,with feedstock coming from natural gas projects in Qatar; a 1.5mntonnes per annum (tpa) mono-ethylene glycol plant using Shell’sproprietary OMEGA (Only MEG Advantaged) technology; a 300,000 tpalinear alpha olefin unit using the proprietary Shell Higher OlefinsProcess; and a 250,000 tpa OXO products. Graham van’t Hoff, executive vice president for Shell Chemicalsremarked, “The proposed Al-Karaana Petrochemicals Complex projectunderlines Shell’s growth aspirations in the Middle East.”

QP awards Al-Karaana FEED contract to FluorIRAN HAS ANNOUNCED plans to establish three energy hubs on the Gulf islandsof Lavan, Qeshm and Siri.

According to Mahmoud Zirakchianzadeh, managing director of the NationalIranian Offshore Oil Company (NIOOC), about US$70bn will be invested in thecountry's upstream sector of the oil industry, with the NIOOC planning to turnLavan Island into a petrochemical hub.

Zirakchianzadeh said some 8.5mn cubic metres of natural gas will be fed intothe Lavan Island for it to produce and directly export petrochemical products. Headded that some US$12bn and US$16bn in investment were respectively neededfor the development of Lavan’s upstream industry and petrochemical sector.

"Siri Island will become Iran’s gas export hub. Around US$14bn of investmentis needed for the development of the three gas fields of Foruz-A and -B andBinaloud in the island," the NIOOC official added.

32

Iran is looking toinvest in Lavan Island

Iran to create petrochemical hub

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Oil Review Middle East Issue Two 2013

IRAN HAS EARNED nearly US$3 billion in exports of petrochemical productsduring the first 336 days of the Iranian calendar year that began on March21, 2012.

The exports ofparaxylene, benzeneand otherpetrochemicalproducts from theAssaluyeh port, locatedin the southern part ofthe country, fetchedUS$ 2.856 billion forIran, Mehr NewsAgency reported.

According to thereport, Iran’spetrochemical products were mainly exported to China, India, Japan,Indonesia, Thailand, Afghanistan, United Arab Emirates, Spain, Taiwan,Malaysia, Turkey, Vietnam and the Netherlands during the period.

In the last calendar year, Iran exported a total of 18.2 million tons ofpetrochemicals and polymers worth around US$14.2 billion to over 60countries.

Iran’s National Petrochemical Company (NPC) is currently the second-biggest manufacturer and exporter of petrochemicals in the Middle East, nextonly to Saudi Arabia.

The petrochemical production capacity of Iran is likely to reach 100million tons by 2015, Mr. Abdolhossein Bayat, an Iranian Deputy Oil Minister,has said.

Bayat, who is also the managing director of National PetrochemicalCompany (NPC), said Iran’s petrochemical production capacity would increaseto 60 million tons by August this year, as several new petrochemical projectsare likely to come onstream by then.

New petrochemical hubs are being set up in Lavan Island in the PersianGulf, in the southeastern port city of Chabahar, and in Sarakhsh innortheastern Iran, which are together expected to make Iran the largestpetrochemical producer in the Middle East.

Will Iran overtake Saudi production?

33

SAUDI ARABIA'S STATE-OWNED fund and private companies plan toinvest heavily in a host of vital economic sectors in India, said SaudiAmbassador to New Delhi Saud Al-Sati.

"Saudi Basic Industries Corp (SABIC) is the largest public sectorfirm. It is looking for joint ventures to expand operations globally. InIndia it is in the process of investing around $ 100 million," IANSquoted Al-Sati as saying.He added: "Several other Saudi firms are exploring similaropportunities. They are finding India attractive."

www.sabic.com

Saudis to invest heavily in India

www.nipc.net

www.oilreview.me

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THUS WITH SO many internationalsour hydrocarbon projects there is areal need for operators to work closely

with partners and service companies toensure that project management, risks andcosts are properly controlled for successfulfield development given the range ofcontaminants that need removing in order tosweeten the gas for industrial use.

The increasing domestic demand for gasat a rate of 15 per cent per annum within theMiddle East has meant expanding sour E&Pdevelopments as one of the major prioritiesfor the region’s governments.

Current developments in Saudi Arabiainclude the offshore Karan field wherethe gas processing operations from thisfield have commenced at theKhursaniyah Gas Plant.

PDO are continuing their efforts on theHarwell project as well as its interests in sourgas reinjection, and have significant futuredevelopment plans in Southern Omantogether with a new challenging brown fieldmega sour gas project located belowcurrently producing sweet reservoirs.

In Kuwait, Shell is also assisting KOCwith their HPHT Jurassic sour gas fields.These deep exploration wells present someof the most challenging drilling conditionscurrently known.

Of the 24 phases of South Pars in Iranonly 10 are operational and doubts exist overthe 12th phase expected to be operationaland producing 84 mcm of sour gas per day.

In Qatar, with its world dominance inLNG, they have recently started up anothertwo of the largest LNG trains each having acapacity of 7.8 MTPA and are still producingaround two million t/a of sulphur from naturalgas processing at the Common SulphurFacility at Ras Laffan.

When the Shah Field in the UAE isoperational it expects to increase gascapacity by 10.34 bcm/y and all aspects ofthis project will serve as an internationalbenchmark in future sour gas development.UAE sour gas interests are not limited toShah as technical assessments havecommenced for the Bab Field prior totendering in 2015 which after expansion

should increase production to 36.6 mcm perday. ADNOC have also invited Wintershalland OMV to investigate the potential of theSour Shuwaihat Field. Similarly the offshoreHail Field is under technical review given itspotential of producing 14.2 mcm per day ofsour gas. This increase in sour gas outputwill be addressed by the Asab GasProcessing Facility and a further fifth plant atHabsham allowing 198.2 mcm per day to beprocessed.

Certain fields under development containsignificant amounts of CO2. The interest inCO2 – EOR in the region as a wholecontinues and within Abu Dhabi, ADMA-OPCO is conducting a feasibility study forthe Thanama Reservoir and ADCO’s planswith the Rumaitha Field are ongoing.Throughout the region there will also be aneed for more plant to manage the increasein liquid sulphur by-products.

So the SOGAT 2013 Conference will seeseveral examples of the latest acid/sour gasremoval techniques being presented. Alsofeatured will be the impending environmentalneeds to improve SRU efficiency, how toovercome the detrimental effects of various

contaminations in sour gas processing,managing polluting emission risks, theproper management of engineering materialselection to combat various corrosionscenarios and to avoid costly repair or re-design aspects, CO2 issues with respect toamine treatment and EOR usage and the allimportant HSE challenges with sour gases inprotecting employees as well as the properhandling of liquid and solid sulphur tomitigate serious subsequent issues for thesupply and distribution chain.

Thus together with the pre-conferencerange of detailed workshop topics and theincreased number of exhibitors participatingtogether with specific software demos fromone exhibitor, SOGAT 2013 will provide aunique and one stop opportunity to benefitall from the latest developments ininternational sour hydrocarbon technologymanagement and will continue to serve asthe premier international meeting place forthe sour gas community.

Visitors to the Exhibition are welcome andcan attend for free but need to register atwww.sogat.org.

New sour gas field exploitation is focused on but not limited to the Middle Eastgiven the many interesting activities taking place in North and South America,Russia, Central Asia and the Far East.

SOGAT 2013Open for business

S08 ORME 2 2013 OMC_Layout 1 12/03/2013 11:46 Page 34

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„Some conditions leave noroom for choice…”

TMK PF and ULTRA QX PremiumConnections have been successfully testedfor conformance with the international SO13679 standard, level CAL V*

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TTHE 11TH OFFSHORE Mediterranean Conference & Exhibition willbe open in the Italian oil port-and-processing city of Ravenna from20-23 March. Back in 2011 – a momentous year for the regionalindustry as a result of events in Libya – more than 1,200

delegates attended the many technical sessions, and more than 10,000visited the focused trade exhibition alongside.

Says this year’s chairman Innocenzo Titone: “OMC 2013 will continueto provide a unique venue for discussing the latest developments in oiland gas technology and their applications, across the entire E&P chain,providing a platform for technical knowledge exchange and networkingopportunities.”

And he comments in his welcome message (issued along with allrelevant details including the full conference programme atwww.omc.it/2013) on the momentous challenges and changes facing theindustry in general and this enormous region in particular. These include: theunstable financial context generally; continuing political unrest in energy-producing countries; the development of unconventional resources, nowincluding crude itself in North America; retraining of skilled workers; and theopportunities offered by new giant fields – to name but a few. He placesspecial emphasis on the growing social responsibilities that the industry nowfaces, the subject of a special session on the morning of 22 March.

“Integrating social responsibility activities into project planning andexecution ... assures companies of having a licence to operate” he says,referring to operations in frontier and mature areas – with socialresponsibility being the “fourth element” of HSE.

Introduced by eni’s CEO Paolo Scaroni leading officials from Algeria,Egypt and Libya will participate in the opening non-technical session,concentrating on the general issues raised by Eng Titone above.

All will remember very clearly how it was during the previous OMCthat the Libyan crisis with its momentous consequences - for the wholeregion and the whole wider world - was brewing up fast. The plenary willconcentrate on the new strategies needed to cope with just some of theongoing regional results.

Detailed technical sessions follow as listed here:

20 March, pm6 Exploration prospects6 Flow assurance6 Advances in drilling technology 6 Seismic interpretation, satellite field exploration6 Gas valorisation6 Drilling optimisation

21 March, am6 Drilling fluids6 Hydrocarbon prospectivity of different basins I, II

6 Protecting the community and the environment6 Deepwater technologies6 Completion6 Offshore technology

21 March, pm6 Risk evaluation, training6 Increasing reserves6 Unconventional resources I, II6 Monitoring, inspection and operations6 Advanced methodologies for complex reservoirs6 Technologies for the future I

22 March, am6 HP-HT and E&P challenges6 Field and production optimisation6 Technologies for the future II6 New logging techniques6 Offshore pipeline integrity6 Safety enhancement for facilities and materials

A lot of detail about the technical workshops also on offer is provided onthe website, participation being negotiable on an individual-registration basis.These cover such topics as Aspects of automation (in association with the wellknown Italian ANIMP association, 21 March, am), Offshore service vessels (21March, pm), as well as Developing offshore wind resources on the 22nd.

Oil Review Middle East along with its Oil Review Africa equivalent areproud to have been appointed Official Regional Magazines for this highlyregarded two-yearly technical conference which focuses on a vital butgenerally under-exposed region.

All delegates will receive a full set of conference proceedings, andadditional copies can be obtained at cost from new associated publishersOnePetro at http://shop.omc ■

Oil Review Middle East Issue Two 2013

www.omc.it

OMC 2013 will continue to provide a uniquevenue for discussing the latest developments

in oil and gas technology and theirapplications, across the entire E&P chain

37

'Charting a course' is the appropriately nautical themefor this year’s Offshore Mediterranean Conference (OMC).With Libya back fully on stream the sea unites a wideregion with huge potential.

It’s time to make your mark

in the Med

www.oilreview.me

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Oil Review Middle East Issue Two 201338 www.oilreview.me

Seminar series confirmedPRECISION POLYMER ENGINEERING (PPE), a leading manufacturer of highperformance moulded elastomer seals will be delivering a series of seminars atthe OMC (Offshore Mediterranean Conference) in Ravenna, Italy, between 20thand 22nd March alongside key Italian specialist sealing distributor FridleSistemi di Tenuta.

PPE and Fridle are also jointly exhibiting at the show, showcasing theirrange of specialist O-Rings and sealing solutions for the offshore oil and gasIndustry, focussing on key PPE brands Perlast and Endura.

The three seminar sessions will take place on Wednesday 20th Marchbetween 10am and 1pm in room “Sala Verde” (1st floor Hall 6) and will covertopics including;6 Elastomer seals in high concentration sour gas (H2S) – what you should

know,6 Rapid Gas Decompression (RGD) tests for offshore sealing: the good, the bad

and the just plain inappropriate,6 Low temperature elastomers for the oil and gas industry – how low can you

go?These seminars will aim to address the key sealing issues affecting the oil

and gas industry in an ever more demanding marketplace. Places at theseminars are free to attend but are limited to only 40 delegates and both PPEand Fridle are anticipating strong demand for the tickets.

PPE has experienced significant growth in recent years providing specialistseals for the oil and gas industry and attendance at OMC is viewed as anexcellent opportunity to meet new and existing customers to enable them todiscuss technical issues surrounding effective sealing technologies. PPE areespecially interested in talking to valve manufactures and manufacturers ofother specialist flow control equipment that supply the oil and gas industry.Italy is a hotbed of specialist valve manufactures and PPE has identified this asa significant opportunity to penetrate the European manufacturing marketfurther.

Paul Gillyon, managing director, PPE said “we have a number of excellentpartner distributors around the world who do a superb job of communicating ourvalue proposition and in a market as important to us as Italy, we are delightedto work together with Fridle on joint promotional projects. We expect demandfor the seminars to be very strong, in 2011 there was standing room only so weare advising that people pre-register for these sessions to avoiddisappointment.”

“…a unique opportunity to interact with industry partners and discussthe changes that are occurring in the upstream sector, the ever soimportant environmental aspects of our operations, technologicalinnovation and the development of international infrastructures.” [Nicola Monti, Edison Spa]

“There is a focus, unique within the industry, on the issues andopportunities which are important to those of us who are exploring forand developing the resources in this area.” [Giuseppe Tannoia, eni e&p]

“…a unique networking opportunity for upstream companies … Withthe world’s energy systems facing profound changes it provides anexcellent insight into innovations in the technologies on which ourbusiness relies and a chance not to be missed to discuss them andshare knowledge …” [Marco Brun, Shell Italia E&P]

“OMC is a key opportunity for us to communicate who we are, whatwe do and what are our strengths and values.” [Thierry Normand, TotalE&P Italia]

Other major companies including Baker Hughes, Halliburton,Schlumberger and Saipem (eni Group) are again proud to be associatedwith this major regional event.

Address e-mailed queries to [email protected] and/or [email protected] (tel+39 0544 219418 and +39 0630 883030 respectively)

What the industry says

BAKER HUGHES ANNOUNCED the availability of its SOr™ (saturationoil remaining) sponge liner coring system, which provides an accurateanalysis and measurement of fluid types and oil saturation levels incores. This information helps operators optimise their asset life cycleand determine if formations have sufficient reserves in place tocontinue field development and production. Conventional spongecoring methods do not always accurately determine fluid types orquantify residual oil volumes because the sponge can be easilydamaged, allowing oil seepage during core extraction. The SOrsystem, which includes a 3½-in. ID sponge liner, modified pilot shoe,proprietary pressure-compensating piston design, LaserCut™aluminum inner-barrel liner system, and custom-designed coring bit,reduces the risk of drilling fluid invasion and captures all of theexpelled oil as the core is brought to the surface. The system’sapplication-specific bit minimizes eccentricity and helps ensure thata precisely sized core is cut for entry into the sponge liner. Themolded, oil-absorptive sponge liner with protective mesh ensures aclose fit between the core and the sponge so that expelled oil isabsorbed rather than lost in the formation or wellbore. This tight fitalso provides additional core integrity and protects it duringacquisition, recovery, surface handling, and transportation to thelaboratory for analysis and short-term storage.

Accurate analysis of fluid types

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e-mail: [email protected]

www.tratos.eu

Visit us at: OMC 2013Offshore Mediterranean ConferenceStand 6 A220/22 March 2013Ravenna - Italy

Tratos has been producing cables for use

in the oil and gas industry for over 40 years.

We provide cables and services for a large variety

of onshore and offshore operations,

including umbilical cables.

Jasmine (UK)£5 million supplied to ConocoPhillips

for specialist fire resistant cables

for Phase 1 of the Jasmine development

in the Central North Sea

Alba Marina (Italy)1830 meters of Tratos Submarine

medium voltage cable

to energy company Edison

for use in its Alba Marina floating storage

Sannazzaro Refinery (Italy)€15 million contract for oil and gas cables

to the Sannazzaro Refinery,

owned by energy company ENI,

in the Po Valley

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Oil Review Middle East Issue Two 201340

SCHLUMBERGER HAS LAUNCHED theslimhole PowerDrive Archer high build raterotary steerable system (RSS). The new RSSdelivers build rates of up to 18°/100 feet(ft), with full directional control and doglegassurance for complex 3D well profiles andmultilateral well designs.“The slimhole PowerDrive Archer RSS candrill well profiles previously only possiblewith motors, in one run, with the ROP andwellbore quality of a fully rotating RSS,”said Steve Kaufmann, president of Drilling& Measurements at Schlumberger. “Expanding the capabilities of our highbuild rate RSS services, this slimholeedition has drilled 130,000 ft in carbonate,sand and unconventional reservoirs as partof our integrated drilling systems offering,including advanced Smith PDC drillbittechnology,” he added.Schlumberger said in a statment that theslimhole PowerDrive Archer RSS uses acombination of push-and point-the-bittechnologies, and introduces a step changein drilling performance in geosteering andopenhole sidetrack applications. The new product has been built on thereliability of the PowerDrive X6 system.It has proven itself in more than 130 fieldtest runs in North America, the Middle East,West Africa, Europe and Asia.

In the Permian Basin, Cimarex Energyneeded to drill a 6 1/8-in horizontal sectionwithin a 7-ft thick true vertical depth zonein the Bone Spring shale formation. Thewell design included high dogleg severitywith a 10°/100-ft curve. The slimhole highbuild rate RSS was selected to eliminateadditional trips downhole, and thechallenging curve and lateral were drilledin one run, saving 26 hours of drilling time.

Schlumberger releasesnew slimhole RSS

The slimhole PowerDrive Archer high build rateRSS can drill well profiles previously onlypossible with motors

Inn

ovati

on

s

www.oilreview.me

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The dawn of a new standard in level control

Prepare for a total ECLIPSE® of current level and interface control solutions. With superior signal performance, powerful diagnostics and a full line of overfill capable probes, Magnetrol’s ECLIPSE Model 706 guided wave radar transmitter delivers unprecedented reliability.

From routine water storage applications to process media exhibiting corrosive vapors, foam, steam, buildup, agitation, bubbling or boiling, the ECLIPSE Model 706 will take your operation to a new level of safety and process performance.

Contact Magnetrol – the guided wave radar innovator and level control expert – to learn more about the ECLIPSE Model 706.

971-4-6091735 © 2012 Magnetrol International, Incorporated

S09 ORME 2 2013 Innovations C & D_Layout 1 12/03/2013 11:54 Page 41

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“Because once again he has just successfully

demonstrated the Graco XP70”

“Why is Gerard smiling?”

Register for your demo at

XP70.graco.eu.com

XP70TM benefi ts: less material wastage = money saving no more hot-potting = labor saving no more rework = time saving

This picture has been taken after a successful demo at Pugliese Industria Meccanica S.r.l. in Mozzagrogna (Ch) Italy.

S09 ORME 2 2013 Innovations C & D_Layout 1 12/03/2013 11:54 Page 42

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Oil Review Middle East Issue Two 2013

HALLIBURTON’S FORAYSM 3D microseismic fracture matchinganalysis service is now available as a real time application. Acomponent of Halliburton’s Knoesissm service, the Foray serviceprovides a new method of fracture diagnostics that usesmicroseismic event data as it is generated in real time to developan image of the fracturenetwork being createdin the formation. Halliburton noted thatreal-time analysisprovides the technicalteam the knowledge itneeds to make changesto treatments during thejob. Every fracturingtreatment can betailored for maximum effectiveness. This capability is particularlyimportant for fracturing treatments in shale formations.The Foray service, according to Halliburton, can help to reducethe cost per barrel of oil equivalent and maximise asset valuefor an operator through improving fracturing treatment designand execution.

MAERSK OIL QATAR and Gulf Drilling International (GDI) have signed a four yearagreement worth US$211mn in which Maersk Oil Qatar will contract the AlJassra, GDI’s new-build jack-up drilling rig.

The contract covers drilling and well work-over activity in the Al Shaheenfield, Qatar’s largest offshore oil field. The Al Jassra will be one of the drillingrigs used to deliver Maersk Oil’s current field development plan, FDP 2012,which was agreed in November 2012 and calls for the drilling of 51 new wellsin the Al Shaheen oil field.

Lewis Affleck, Maersk Oil Qatar’s managing director said, “By workingclosely with our partner Qatar Petroleum, Maersk Oil has started to unlock thesignificant potential of the Al Shaheen oil field. We have already drilled inexcess of 300 wells, and we expect to drill many more in the years ahead tooptimise recovery from this giant offshore oil field.”

The state-of-the-art Al Jassra rig is a Pacific Class 400 jack-up drilling rig.The rig will come with a 75’ cantilever outreach and will provideaccommodation for 150 persons. It will provide the capacity and ability to drillthe extended reach wells that are needed to access the long thin reservoirs ofthe Al Shaheen field.

Ibrahim Al-Othman, GDI’s CEO added," This deal signifies an importantmilestone for GDI, as we begin to provide an essential role in the futuredevelopment of Qatar’s largest offshore oil field. Both companies have workedtirelessly to ensure that a credible, economic and sustainable drilling rigsolution is delivered.”

The Al Jassra rig is currently under construction at PPL shipyard inSingapore. Following commissioning and dry tow, the rig is expected to arrive inQatar mid-year, 2013.

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Maersk Oil Qatar signs major drilling contract

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THE EXPEC ADVANCED Research Center (EXPEC ARC) and Welltec havecollaboratively developed and successfully field tested the first 2-1/8 inch welltractor that can pull a coiled tubing through to the total depth (TD) of the wellto perform stimulation and logging jobs.

The tractor is a tandem set-up equipped with dedicated turbines andgenerators that can provide the necessary power to the tractors to pull thestimulation and other tools down to the TD.

“This new development will add significant value in ongoing operations,such as in the Manifa field, where extended reach wells need to be stimulatedto meet the expected targets,” said Nabil Al-Habib, chief technologist of EXPECARC Production Technology Team (PTT).

The Upstream business line has been developing Extreme Reservoir Contact(ERC) wells with advanced completions to complement their Extended ReachDrilling (ERD) in achieving wells that can span kilometers and increase reservoircontact to improve sweep efficiency and ability to recover. To overcome thedifficulties of producing hydrocarbons through laterals of such long distances,electrical submersible pumps (ESP) are deployed within the ERC laterals toboost hydrocarbon production over the long well distances.

The challenge remains in pulling tools to the TD of the well, especially for astimulation job that needs to be performed using a coiled tubing (CT). A tool hasto be designed small enough to go through small diameter constrictions, yetpowerful enough to pull the load needed. EXPEC ARC and Welltec had toovercome this challenge through their development of the first tandem 2-1/8inch well tractor and have proven its viability in a recent Saudi Arabia field test.

Oil Review Middle East Issue Two 2013

Saudi Aramco and Welltec trial newwell tractor system

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FOSTER WHEELER HAS signed a five-year global Enterprise FrameworkAgreement (EFA) with Shell Global Solutions International (Shell). Under this agreement, Shell may request Foster Wheeler to providesupport in the preparation of basic engineering packages for thefollowing Shell technologies: distillation, hydrocracking,hydrotreating, thermal conversion, ethylene oxide, pyrolysis gas, fluidcatalytic cracking and CANSOLV sulfur dioxide scrubbing. The agreement is for a five-year period, with an option for Shelland Foster Wheeler to agree to extend the agreement for anotherfive years. Foster Wheeler already has in place a five-year Asian EnterpriseFramework Agreement initiated last year with Shell under which FosterWheeler is providing engineering and project management services forShell downstream and midstream projects in Asia and elsewhere. “We are already working with Shell on a diverse portfolio of theirplanned investments under the Asian Enterprise FrameworkAgreement, both within Asia and elsewhere, and we are very pleasedto have signed a second EFA under which we will provide additionalglobal support to Shell, this time in the development of technologypackages,” said Umberto della Sala, President and chief operatingofficer, Foster Wheeler AG.“It is a key strategic objective of Foster Wheeler to develop and extendlong-term relationships with our clients to leverage our technicalexpertise, global reach and local project delivery to support theirglobal investment plans,” he added.

Foster Wheeler and Shell agree technologyEnterprise Framework Agreement

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S10 ORME 2 2013 Innovations_Layout 1 12/03/2013 12:13 Page 44

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46 Oil Review Middle East Issue Two 2013

UOP LLC, A Honeywellcompany, announceda new, advancedmembrane elementdesigned to increasenatural gas processingcapacity, comparedwith existingtechnology, allowingproducers to capturehigher revenue.

Full details can be found at www.oilreview.me

VIAR VALVOLE, AN established Italian manufacturer of floating and trunnion-mounted ball valves, has invested heavily in a new testing facility close to theirfactory in Sumirago. The company is represented by Trouvay and Cauvin Ltd.

Full details can be found at www.oilreview.me

YOKOGAWA ELECTRICCORPORATION announced therelease of two new productseries, the GX panel-mountedpaperless recorders and theGP portablepaperless recorders. These arecomponents ofSMARTDAC+TM, a newlydeveloped next-generation data acquisition and control system.

Full details can be found at www.oilreview.me

Paperless recorders from Yokogawa

New UOP SeparexTM Flux+ membrane element

THE EASIDRIVE PORTABLE valve actuator securely and effectivelyoperates valves in oil refineries, power plants, paper mills and chemicalprocessing facilities, even where adverse climates, such as arid and dry-desert environments, make operations more challenging.

Full details can be found at www.oilreview.me

Huge new testing facility for T&C partner

Safe and economical valve operation

Honeywell’s UOP introduces newmembrane element

The GX and GP series

AVEVA RECENTLY ANNOUNCED thecommercial availability of its brand-new plant design software, AVEVAEverything3D (AVEVA E3D), whichthe company claims sets a newlevel of performance for majorcapital engineering projects.

Full details can be found atwww.oilreview.me

AVEVA Everything3D now available

AVEVA E3D

HYPERTHERM, A MANUFACTURER of advanced cutting systems recentlyannounced the release of the MAXPRO200®, a 200 amp LongLife® air andoxygen plasma system. The system is engineered for heavy-duty, high-capacity cutting and gouging.

Full details can be found at www.oilreview.me

PRECISION POLYMER ENGINEERING (PPE), a leading manufacturer of highperformance moulded elastomer seals has invested in a third, advanced testsystem for the laboratory at their UK headquarters. This system providesautomated testing of the resistance of sealing materials to high pressureconditions such as those deep in undersea oil wells.

Full details can be found at www.oilreview.me

Automated test capability for sealingmaterials

The system boastsrapid cutting speeds

Plasma cutting and gouging system

DURING THE PAST DECADE, thousandsof Rotork IQ intelligent electric valveactuators have been installed on stagesone and two of the 4000 kilometre longWest-East Gas Pipeline (WEPP) networkthat runs through sixty-six counties inthe ten provinces of China.

Full details can be found atwww.oilreview.me

Intelligent actuators for pipeline

IQ3 intelligentelectric actuators

INTERTEC HAS WON the contract for the environmental protectioncabinets and shelters that will protect the field-based processanalyzers at the new Sadara petrochemical complex in the Kingdomof Saudi Arabia.

Full details can be found at www.oilreview.me

Sadara opts for Intertec enclosures

Web selection - Innovations from www.oilreview.me

A selection of recent products and service developments for the oil and gas sector. Full information can be found on www oilreview.me

www.oilreview.me

S10 ORME 2 2013 Innovations_Layout 1 12/03/2013 12:13 Page 46

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Oil Review Middle East Issue Two 2013

MMANY FLOORS ABOVE ground levelis possibly not where you wouldexpect to be when discussingtechnology that is to run along the

sea bed. However, if you’ve got a good story, itreally doesn’t matter where it’s told. And X-Streamis a very good story, as DNV, a global provider ofknowledge for managing risk, made clear in a pressconference earlier this year in a high-rise buildingin central London.

X-Stream is a new pipeline concept researchedand developed by DNV. Its aim is to lower thecosts of deep-and ultra-deepwater gas pipelines butstill meet safety standards.

If it can be done it will probably find the marketreceptive. Gas fields are going deeper and furtheroffshore and the likeliest alternative gas transportoption — FLNG — is not particularly cheap. X-Stream of course would need some upfrontinvestment and testing but DNV presents it as areasonably priced option, if it can becommercialised.

DNV would not be the company thatcommercialised X-Stream; that’s for the oil and gasindustry itself to do — with DNV’s help if required.However, based on past experience, DNV is notbeing overly optimistic in promoting this concept.The company has been instrumental in developingand upgrading the safety and integrity regime andstandards for offshore pipelines over a number ofdecades. Today, more than 65 per cent of theworld’s offshore pipelines are designed andinstalled to DNV’s offshore pipeline standard.

The selling point of the concept is that bycontrolling the pressure differential between apipeline’s external and internal pressures at alltimes, the amount of steel and thickness of thepipe wall can be reduced by as much as 25-30 percent — and possibly more. That’s an importantclaim because today’s very thick pipelines can onlybe produced by a limited number of pipe mills andlaid by a limited number of vessels. Reducedthickness means more pipe mills and vessels,which means more competition, more economiesof scale and cheaper pipelines. That, at least, is theidea.

Downloads and videos explaining the technicaldetails of the concept can be found athttp://www.dnv.com/resources/video/x_stream_gas_transport_concept.asp andhttp://www.dnv.com/binaries/X_Stream_gas_transport_concept_tcm4-506349.pdf. However, a briefsummary goes as follows: during installation, it isnecessary to fully or partially flood the pipeline to

control its differential pressure. An inverted HighPressure Protection System — i-HIPPS — andinverted Double Block and Bleed valves — i-DBB —are used to ensure that the system immediatelyand effectively isolates the deepwater pipe if thepressure starts to fall. In this way, the internalpipeline pressure is maintained above a criticallevel for any length of time.

A concept studyAs we have noted, this is a concept study; a basicand detailed design will need to be carried outbefore the X-Stream concept is realised on a realproject. DNV intends to work further with theindustry to refine and test the concept.

Experienced players in the pipeline industry willnotice that much of this is not new — and that issomething DNV freely admits. The company basedits concept on improving existing technologicalsystems rather than inventing new ones, as DNV’sglobal pipeline manager, Asle Venås, explains. “Welooked at several technologies, some new and

some based on existing technologies. This one waswhat we saw as the most promising,” he says.

That, however, begs an important question: ifthe systems existed already, why was DNV the firstto come up with this concept? In fact, says Venås,several authorities have already suggested usingcontinuous internal pressure in pipelines as aconcept, “but without giving details on how thiscan be done. We put several technologies togetherin a way that makes this safe and reliable.”

The fact that this is not a system requiring atotally new approach is important. After all,technological change is often slow in the oil andgas world. While he does not estimate a specifictimeframe from acceptance of the concept todevelopment, testing and launch, Venås does say:“X-Stream is based on already proven technologyso I guess it should be relatively easy to qualify andimplement.” However, he adds: “Time is dependenton the resources put into development.” In anycase, “it is a concept that needs to be studiedfurther”.

But it could clearly meet a need. “We knowthat the cost of long-distance gas transport in ultra-deep water is a serious challenge,” says Venås. “X-Stream was started after our CEO Henrik Madsenhad been told this by the CEO of Petrobras, whichfaces this challenge on its pre-salt development. “

Bear in mind also that even though areas likethe Middle East tend to carry out E&P at modestdepths, pipeline transport of gas overseas (fromOman to India, say, which has been mooted) will

Its aim is to lower the costs of deep-and ultra-deepwater gas pipelines but still meet safety standards.

Its aim is to lower the costs of deep-and ultra-deepwater

gas pipelines but still meetsafety standards.

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Does pipeline supply of gas at extreme depths have to be limited to high priced,specially made and very thick pipes? Not necessarily. Phil Desmond discusses a newapproach to deepwater pipeline supply that adapts some existing technologies and,potentially, cuts costs — without undermining safety standards.

Is the gas pipeline industry

out of its depth?

www.oilreview.me

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inevitably involve greater depths. Venås explains:“The Middle East has a lot of gas and in principleonly one country to export to that is within reachfor pipelines — and that is India. However, theArabian Sea is ultra deep.”

Of course African gas involves depth ofproduction as well as supply. “A large part of the oiland gas field offshore West Africa is in very deepwater and the new licences issued are in evendeeper water,” says Venås. And there is a clearopportunity to monetise that gas if transport costscan be driven down. “In West Africa most of theassociated [offshore] gas is flared because it is toocostly to send to shore. The only country in WestAfrica where it is forbidden to flare the associatedgas is Ghana.”

And Africa will have a lot more gas to deal withsoon, he suggests: “There are also several new oiland gas fields in other areas offshore Africa, such asMozambique, which has discovered large reserves.”

FLNG, which has been, and will be, regularlycovered in these pages, remains costly and willtake a long time to develop. If pipeline productioncosts were to fall as a consequence of adopting X-Stream (or a version of X-Stream designed forcommercial use), it might quickly pay back themoney spent on development. That, however,depends on a number of factors: the type ofprojects that use it, the timing of its adoption, and

customer demand for example. Pipelines maybecome cheaper as thickness becomes less of anissue but really big economies of scale may be abonus that arrives a lot further down the line.

And DNV may be among those to benefit, eventhough from DNV’s point of view this is a researchconcept rather than a project. The company would,

however, hope to gain from the application to thenew deepwater pipeline environment of itsestablished profiling, consultative, verification,standardisation and certification business.

Of course without X-Stream the deep sea gaspipeline business is not necessarily doomed.However, as Venås notes, “If the cost goes downmore projects will become financially feasible.” Andthose projects will start at levels unimagined in thepast. How deep would Venås suggest? “No limit. Bylooking at the trend it appears the industry will godeeper and deeper.” ■

Oil Review Middle East Issue Two 2013

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It will be important to maintain the minimum pressure in the pipeline during pre-commissioning.

Africa will have a lot moregas to deal with soon.

www.oilreview.me

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www.tenaris.com/dopelesstechnology

Dopeless® Technology. Experienced. Efficient. Environmental.Dopeless® technology has been proven in many drilling applications worldwide over the past nine years. The multifunctional coating is applied to our connections in the controlled, industrial environment of our mills leaving them rig ready with no thread compounds. The result: safer operations and less contamination in the field, faster and more reliable connection make-up, and less reservoir formation damage. Dopeless® products are manufactured on dedicated production lines with advanced quality controls and supported by a global network of field services, repair shops and technical support teams.

Technology that makes the difference.

Key Benefits & Features

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S11 ORME 2 2013 Technical Focus 01_Layout 1 12/03/2013 12:19 Page 51

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Oil Review Middle East Issue Two 2013

PIPELINES ARE IMPORTANT because they are economical means to transportliquids and gas, and they continue to be the safest way to transport. However,pipeline accidents pose considerable risk, threatening the public and/orenvironment, and exposing the pipeline industry to scrutiny.

With the ageing of both onshore and offshore pipelines the likelihood ofpipeline failure is increasing. Pipelines that were once remote at the time ofinstallation are now often encroached upon.

Increased shipping and increasingly aggressive fishing practices, such astrawling, bring offshore pipelines in harm’s way as well. As a result ofincreasing likelihood of pipeline incidents and severe consequences as relatedto safety, health and environment, the higher risks of operating pipelines mustbe understood, so that a risk informed management plan can be carried out.

Risk on a pipeline is location dependent; therefore any risk managementtool must be able to address risk by location. Predicting future risk of apipeline system over time requires an ability to connect the causative factorsin a quantitative manner to failure processes.

Past failure data alone is not sufficient as the environment aroundpipeline changes with time (e.g., population density, soil movement, shippinglanes, etc.). For example, a Bayesian Network (BN) based risk managementtool developed by DNV (Multi-Application Risk Visualization or MARV) enablesprediction of future risk, drawing from theoretical models and empiricallearning, and provides a robust probabilistic method of reasoning underuncertainty.

Technological developments have enabled us to receive informationelectronically via touch screen interfaces anywhere we go. Therefore, thefuture of risk management will involve mobile devices.

By taking advantage of developments in these technologies, MARV is

capable of integrating diverse datasets to evaluate risk and present this ina visually comprehensive manner, whereby the results of the riskpredictions as well as the networks are visualized in a user friendly manneron a mobile device.

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Risk management solution for pipelines

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Under the Patronage of

His Excellency Hani Abdulaziz Hussain

Kuwait Minister of Oil

www.kogs2013.com

LONDON

SINGAPORE

BAHRAIN

DUBAI

K GSKuwait Oil & Gas Show and Conference

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S12 ORME 2 2013 Technical Focus 02_Layout 1 12/03/2013 12:22 Page 53

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Dr. Daniel Keßler, Deputy Business Segment ManagerTIP TOP Oberflaechenschutz Elbe GmbH, a REMA TIPTOP Group company, recently spoke to Oil Review onthe subject of corrosion protection.

Oil Review Middle East Issue Two 2013

TTIP TOP OBERFLÄCHENSCHUTZ ElbeGmbH located in Lutherstadt-Wittenbergand Warstein is a wholly-ownedsubsidiary of REMA TIP TOP GmbH,

Munich, and a leading supplier of industrialcorrosion protection systems. The company saysthat its products, which protect against corrosionand wear have repeatedly set new standards andbenchmarks within the industry.

Corrosion protection is an important subject formany industries in order to avoid plant downtimeand the resulting lost output. What has in generalbeen happening in recent years in the area ofindustrial corrosion protection?

Currently, no dramatically new developments areexpected in the corrosion protection sector.However, the ever-increasing number of detailedcustomer requirements has resulted in more and

more customised corrosion protection solutionsbecoming available. In the area of corrosionprotection in Germany alone, around 1.5 to twomillion square meters of rubberized materials andone to 1.5 million square meters of coatings havebeen applied over the last 25 years. The marketshere demand materials that are resistant over thelong term and thus permanently ensure protectionagainst corrosion. The main cause of wear can befound in the direct corrosive effect of media, butalso in the diffusion of the medium into thecorrosion protection lining or coating. This is oftencombined with stresses due to pressure andtemperature.

How far back do the roots of corrosion protection go?

They go back to the beginning of the 20th century,because increasing industrialisation caused thedemands on the materials used to also rise.

Corrosion protection was of course needed beforethat, but the range of applications could only beextended when tar and asphalt products came intouse. Considering the chemical industry, we can stillcertainly find areas where very old linings orceramic sheeting are present and on top of whichan asphalt layer acts as a protection against corro-sion. From about 1900 on, however, these systemswere supplemented by organic materials such asrubberised coatings.

What are the challenges that industrial operationsface with regard to effective corrosion protection?

The situation now is that due to the complexity ofproduction plant, for example in the chemicalindustry, the failure of just one component oftenleads to a complete stoppage of the plant. As well asthe loss of pure production capacity, this may causedamage to the environment or to the plant itself. For

Tank wagon lining in the service hall atTIP TOP Oberflaechenschutz Elbe GmbH

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Customised corrosion protection

solutions

www.oilreview.me

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Tendeka’s focus on reducing undesired water, gas or sand

lower cost alternative to gravel packs or intelligent

productivity, look to Tendeka for a more cost-effective

Our focus on regulating f low distribution delivers unparalleled

f low assurance

S12 ORME 2 2013 Technical Focus 02_Layout 1 12/03/2013 12:22 Page 55

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this reason, corrosion protection must guaranteesmooth and trouble-free operation. Should, in spite ofthis, a breakdown occur in the plant, the corrosionprotection must be designed such that it can berepaired in an extremely short time.

What demands does this place on you as aprovider of corrosion protection?

Chemical, thermal and often mechanicalresistances are in the forefront because manyprocesses in the industry take place under hightemperatures and utilise aggressive media. For thisreason, rubberized coatings from REMA TIP TOP cangenerally be used up to 100°C when subjected towet conditions. For certain applications, we have inthe meantime developed rubberised coatings thatare suitable for temperatures of up to 120°C. If thetemperatures encountered are higher than that,additional mineral protection such as ceramic oracid-resistant brick must be used.

How would you generally assess the lifetime ofcorrosion protection products?

This differs a lot and often depends on theindividual conditions of use. In the chemicalindustry, for example, corrosion protection mustsatisfy completely different requirements thanthose needed in power stations.

What services or products does REMA TIP TOPoffer in the area of corrosion protection?

We are in the fortunate situation that we not onlyhave corrosion protection coatings and rubberizedcoatings in our portfolio, but that we are also themarket leader in the area of abrasion-resistantrubberised coatings. Based on this fact, we offer ourcustomers a complete package comprising theanalysis, design and, if necessary, also applicationand servicing of corrosion protection systems. Therange of materials we can use includes classicmaterials such as rubber or ceramics, but equallypolymer-based systems based on polyurethanesand polyurea, which, by the way, we produceentirely ourselves.

What are the typical production quantities of yourrubberised materials?

In 2012 this was around 1900 tons for rubbersheeting. At a thickness of five millimetres, thisrepresents around 330,000 square meters, oraround fifty football fields.

How do you bond the corrosion protection to thesurfaces to be protected?

For coatings, we need hardly any additionalmaterial for bonding. A base coat is applied to thesteel or concrete that acts as an adhesion bridge.Rubber sheeting, in contrast, requires morecomplex systems consisting of primers andadhesives that must be applied to both the rubbermaterial and the substrate utilising differentprocesses.

Can a plant operator also retrofit corrosionprotection if this is necessary?

Yes, of course, this is almost always possible.However, if there has been no previous protection,it depends on the condition of the steel. Howheavily has it been subjected to adverse conditions?How deep has the medium migrated into the steel?If the effort required to refurbish such a containerand apply protection is too great, the operatorshould consider whether a new container wouldperhaps be a better alternative. Retrofitting canmake sense and may even be necessary if, forexample, the container is intended to be used witha different chemical.

Have you specialised in certain sectors?

We deliver to everywhere where chemicals areused because it is there that chemicals such asacids, leaches and salt solutions can causecorrosion. This is not so much the case in thepetrochemical industry itself. We also deliver ourproducts worldwide since we have access to anetwork of 170 agents.

What is the situation regarding corrosionprotection in the chemical industry?

Last year we carried out, for example, a project inSaudi Arabia. The task here was to manufacture,deliver and install more than 10,000 rubberisedpipe sections for a phosphoric acid plant.

So you still see markets with a good potential fordevelopment?

Correct. Even although the development ofmaterials for corrosion protection has hit certainlimits, we remain of the opinion that throughdeveloping corrosion protection systems that meetthe necessary requirements it will be possible toopen up new markets and applications. ■

Oil Review Middle East Issue Two 2013

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Dr. Daniel Keßler, TIP TOPOberflaechenschutz Elbe GmbH

www.oilreview.me

DUE TO ITS continued strong growth,Magnetrol International NV is expanding itsproduction and office facilities in Zele(Belgium) by more than 5,000 sqm. Completionof the building is scheduled for May 2014.The building expansion is designed andconstructed in accordance with BREEAM, aleading design and assessment method forsustainable buildings. It will be one of thefirst industrial buildings in Belgium with

BREEAM certification.Magnetrol International NV has been located inthe industrial park of Zele, Belgium for over 40years. The company employs more than 1,300people at its Belgian facility. Over the last fiveyears Magnetrol Belgium has been nominatedfour times for Trends Gazellen awards, whichare given to large companies as a result ofoutstanding results.More than 95 per cent of the Belgian

production is exported to the EMEA markets.Magnetrol says it is a recognised leader inproviding customer solutions to its customersfor level and flow measurement.The company’s primary technologies includeguided wave radar, ultrasonic and thermaldispersion.Magnetrol NV is part of the MagnetrolInternational Incorporated group withheadquarters near Chicago in the US.

Magnetrol expansion confirmed

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

• Conforms to the American Petroleum Institute (API) specification – 10A Class-G- (HSR), Class-B- (HSR) and Class-A- (O) grades.

• Tested by worldwide cementing companies

• Easy to disperse resulting in considerable cost savings

• Used by major oilfield companies such as: Petroleum Development of Oman (PDO), Schlumberger, Halliburton & Occidental

• Exported to GC Countries, Iraq, Yemen, Libya, Sudan, Tanzania, Turkmenistan, Pakistan, India and Syria.

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

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

Winner of His Majesty’s Cup for the Best Five Factories in the Sultanate of Oman for the 10th time.

Oman Cement Company (S.A.O.G) Corporate Office:PO Box 560, Ruwi, PC 112, Sultanate of Oman. Tel: +968 24437070, Fax: +968 24437799Email: [email protected]: www.omancement.com

ISO 9001 : 2008 CERTIFIED CO CER NO: IND10.7100

ISO 14001 : 2004 CERTIFIED CO CER NO: IND10.7570

American Petrolium Ins�tuteCer�fied Company

Linces No. 10A-0059

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Oil Review Middle East Issue Two 2013

OOFFSHORE SOLUTIONS BV (OSBV), the joint venture between AMECand Cofely Nederland NV, has continued to build on recentsuccesses in The Gulf, after being awarded a Variation Order (VO)to its existing contract with Qatar Shell GTL Limited (Shell Qatar)

for a second Offshore Access System (OAS), bringing its operational units withoil and gas majors in the region to three.

The latest addition is to support Shell Qatar’s Wells Reservoir ManagementCampaign and will see an OAS unit deployed on the Halul 50 multi purposeoffshore vessel for a period of seven months with a possible option to extend.

Challenging environmentThe VO comes on the back of a three-year agreement with Shell Qatar toservice Pearl 1 and 2 platforms of the Pearl GTL project, the world’s largest gas-to-liquids plant, which is a joint venture between Qatar Petroleum and Shell.Based on their positive experience to date of using an OAS equipped vessel,Shell Qatar have exercised their two one-year options, extending the contractduration to the end of 2015.

During this agreement, OSBV has already achieved more than 62,840 safepersonnel transfers mounted on board the Bourbon Gulf Star and has beenconnected for more than 5,000 hours since operations began, with 100 per centavailability for the past 12 months.

OSBV has been operating in Qatar since 2010, and as a result of excellentsafety and operational efficiency in a challenging environment, the companyhas seen growing demand for the OAS. In line with increased enquiries, OSBVwill have an additional unit available in June 2013. The company alsounderlined its commitment to the region by registering a branch office in Qatar.

Greater accessLindsay Young, managing director of OSBV, said: “We continue to build on ourimpressive track record in Qatar, with three units now present in the region.”

“We have demonstrated outstanding operational efficiency throughout ourprojects and as an outcome of this, we are in serious discussions with otheroperators in Qatar and see further potential growth in the region during 2013.”

“An OAS equipped vessel provides safe and cost effective offshoreaccommodation that during the winter months in Qatar, offers significantlygreater access to offshore installations than by crew vessels or helicopters. Theadditional offshore man-hours made available by marine access can have apositive impact on production and radically reduce construction andmaintenance costs.”

Marcel Goedhart, Engineering Services Manager added “Due to the goodperformance and high level of safety achieved over the last two years ofutilising the first OAS unit, this made the decision very easy to go for a second(free-standing) unit.”

Offshore Solutions BV is a joint venture between AMEC and CofelyNederland N.V. Offshore Solutions BV is the world market leader in theinvention, development, manufacture and safe operation of the industry’s mostadvanced marine access systems, translating these technologies into safety andvalue for our customers.

The OAS is a patented 21 metre, hydraulically operated telescopic gangwayfitted with an active heave compensation system. The motion reference unit inits active hydraulic system allows the gangway to safely connect to a fixedoffshore installation in sea states of up to three metres significant wave heightwhen installed to a suitable vessel. ■

The OAS is an hydraulicallyoperated telescopic gangway

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The OAS on board the Halul 50multi-purpose offshore vessel

OSBV has been operatingin Qatar since 2010

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Oil Review Middle East Issue Two 2013

EEVER MORE STRINGENT international safety requirements on valvesfor the energy sector, such as the IEC 61508 and 61511 standards,are placing a growing burden on manufacturers to design productsoffering optimum performance in the most demanding conditions.

Historically, many solenoid valves not originally designed for theseapplications have been widely used, with the potential to compromise overallsystem performance - giving them an undeserved reputation for unreliability.Meanwhile, as well as Cv, temperature rating and certification, designers andcustomers have often traditionally relied mainly on mean time between failure(MTBF) to judge valve reliability.

However, MTBF is not a particularly good metric for determining solenoidvalve reliability as it frequently relates to the number of operations a valve canwithstand. In low demand mode applications – an attribute applicable to mostsafety functions where equipment often sits unused for months at a time - ameasure of how likely the valve is to close on demand is clearly more relevant.Probability of Failure on Demand is a measure used to determine the likelihoodthat a valve will operate if required - but even this tells the operator nothing ofthe intrinsic design principles of a valve. This has led to the concept of ForceFriction Ratio (FFR).

What is Force Friction Ratio (FFR)?The FFR of a solenoid valve is a measure of the relationship between theforce presented by the spring return mechanism and the frictional resistancewithin the valve. The higher the FFR, the more likely the valve is to operatewhen required.

In principle, creating a high-FFR valve sounds easy, as a designer can simplyuse a large, powerful spring. However, as the spring force increases, so does therequired magnetic flux from the solenoid to open the valve and hold it open.The knock-on effect of this is an increase in the electrical power required tooperate the valve.

Causes of friction in a solenoid valveFriction is caused by the interaction of o-ring seals with the valve body. Thereare two types of seal interfaces – dynamic, or spool type seals, and static, alsoknown as ‘poppet’-type seals. In a static seal there is only interaction betweenthe seal and the body at the end of the valve travel, where the seal contacts aflat surface in the valve body. This type of seal has a minimal effect on thefriction within a valve.

In dynamic seals, the seal is in permanent contact with the valve body forthe duration of the valve’s movement. Dynamic seals can impact significantlyon friction as the seal is laterally distorted against the valve body surfaceduring operation. The higher the number of dynamic seals, the higher thefriction. An additional drawback is the effect of thermal expansion on bothfriction and seal quality.

Lubricant condition, time between operation, the presence of debris andcontamination, and temperature cycling can also all cause the frictional forcesexperienced by the dynamic seals to increase over time, reducing FFR.

Mechanical operation of a solenoid valveAll solenoid valves in process industry are either poppet or spool typesolenoid valves.

In this 2/2 poppet valve there is only one static seal to perform theisolation process. There are also two dynamic seals. In this design these sealskeep process media isolated from the valve’s armature assembly – known as a“dry armature”. In this valve design, the spring has to overcome the frictionalresistance of only two dynamic seals. A 3/2 design would require the additionof a single static seal and no dynamic seals.

There is no definitive set of design parameters to create a ‘perfect’

valve of maximum FFR

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The importance of force friction ratio in determining valve reliability and performancein the energy sector, by Richard Harvey, Key Account Manager, Norgren.

A force to be

reckoned with

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In a typical 3/2 spool type valve, there are four dynamic seals, doubling thefrictional resistance of the poppet-type assembly.

In order to maximise FFR, frictional force must be minimised. A poppet-typesealing mechanism allows the designer to minimise the friction by reducing thenumber of dynamic seals.

Spring force, magnetic flux and electrical powerThe maximum possible spring force is limited by the available magnetic flux.The higher the flux, the stronger the permissible spring force. However, themagnetic flux is limited by the solenoid housing’s design efficiency and themagnetic core material, both of which affect the ability to transform electricalenergy into a strong magnetic field.

In any safety system, the available electrical energy from the control systemis limited by the PLC output card capability. To maximise magnetic flux, theelectro-magnet efficiency of the solenoid valve must be maximised. Ideally, allthe electrical energy would be transformed into magnetic energy, allowing forthe minimum possible electrical power. However, in reality this is not possible ,meaning the design must limit the effect of the coil housing and core materialto maximise the efficiency of the valve. Furthermore, any increase in therequired coil power can raise the coil temperature, potentially leading to failureand a higher trip rate.

Coil Housing DesignA significant factor in electromagnet efficiency is the coil housing design. Toproduce the highest possible magnetic force, the magnetic field lines must beuniform and concentrated as shown here.

Magnetic field lines follow the path of least resistance (similar to electricalcurrent), with metals offering significantly reduced magnetic resistancecompared with air. Magnetic field lines are easily concentrated in magneticmetals but any gaps in the construction around the coil will cause a “leakage”in the magnetic flux and thus power loss. Magnetic flux leakage must thereforebe minimised to increase the valve’s FFR. However, this is not so simple in thearea surrounding the coil as this is the solenoid valve’s body and issues such asease of assembly and servicing must also be considered.

This diagram demonstrates a coil housing design where magnetic fluxleakage has been efficiently minimised by a solid, uniform housing surroundingthe coil.

Core materialsThe valve core is a section of magnetic material upon which the magnetic fieldis concentrated. When the coil is energised, the magnetic field acts upon thecore, generating a magnetic force which itself acts on the armature, causing itto move and operate the valve. The magnetic properties of core materialsimpact significantly on the core’s ability to generate a strong magnetic field andtherefore on valve operation.

All magnetic materials contain pockets of localised magnetic dipoles called“domains”. In an untreated material, these domains have a randomarrangement that gives zero net magnetism. However, when a magnetic field isapplied, these domains align their dipoles to create a magnetised material.When the field is removed, a percentage of these dipoles return to anunmagnetised state.

The key property of any magnetic material used for the valve core is thedipoles’ ability to align and then return to normal. This characteristic – knownas “magnetic flux density” - is critical in core material selection.

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The FFR of a solenoid valve is a measure ofthe relationship between the force presented

by the spring return mechanism and thefrictional resistance within the valve

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In this diagram showing a typical hysteresis curve for a material’s magneticproperties, the x-axis is the magnetising force applied to the material and the y-axis the materials’ magnetic flux density. In solenoid valves, the magnetisingforce is directly proportional to the current applied and the magnetic fluxdensity is directly proportional to the force applied to the valve armature.

Initially, where there is no applied magnetising force, there is no magneticflux. As the applied magnetising force increases, so does the magnetic fluxdensity. This is the dashed line, indicating a non-linear relationship.

At point (a) the material has reached magnetic saturation, where furtherincreasing the magnetising force will not further increase flux density. Whenthe magnetising force is reduced, the magnetic flux density follows the curve topoint (b). At this point there is no applied magnetising force, but there is stillresidual magnetic flux density. This is called the “retentivity” and is critical forcore material selection as this residual magnetic flux will be working againstthe solenoid valve spring, reducing the effective FFR. Put simply, the lower theretentivity, the better the FFR.

When the coil is next energised, the curve will move from the origin topoint (f). As the coil current is increased there is initially no increase inmagnetic flux or force applied to the valve armature. This is called the‘coercivity’ and as with retentivity, the higher the coercivity, the less suitablethe material. Then as the magnetising force is increased it will continue on thecurve from point (f) to point (a). This is the path that the curve will take for allsubsequent energising operations.

In the graph below, hysteresis curves are shown for two different materials.Materials with a narrow curve are called ‘soft magnetic’ and those with a widecurve ‘hard magnetic’. The narrower the hysteresis curve, the lower theretentivity and coercivity, therefore the more suitable the core material fordelivering high FFR. However one important design feature limits materialselection – whether a wet or dry armature is used.

With a wet armature, the core material is exposed to the process media andtherefore must be corrosion-resistant. Most ‘soft magnetic’ materials have lowercorrosion resistance. Corrosion-resistant magnetic materials typically have ahigh carbon content but are generally ‘hard magnetic’. To enable the use of a‘soft magnetic’ core material, a dry armature design must therefore be selected.

Heat dissipationThe final key attribute is the ability to dissipate excess heat. When energised, allelectrical coils generate heat which must be dissipated to maximise coilefficiency. The most efficient method is a good thermal path to the atmosphereto allow air cooling, meaning all materials used between the coil andatmosphere should offer good thermal conductance.

Thermal conductivity, k, is measured in Wm-¹K-¹. Stainless steel hasexcellent thermal conductivity of 16 Wm-¹K-¹ at 20°C whereas air has only0.024 Wm-¹K-¹ - approximately 700 times worse. This means any air gaps inthe construction dramatically reduce the coil’s ability to dissipate heat and soreduce the magnetic force generated in the valve as more electrical energy isbeing wasted as heat. Measured in °C, this is often quoted as the valve’s ΔT.The lower the ΔT, the better the performance, and so the higher the valve’s FFR.

What makes an ideal solenoid valve design for high FFR?There is no definitive set of design parameters to create a ‘perfect’ valve ofmaximum FFR, however valves designed to the following rules will be optimisedfor a high FFR.a. Reduce the friction by using a poppet-type design to minimise the number of

dynamic sealsb. Regular, continuous coil housings reduce magnetic flux leakagec. A dry armature allows the use of a soft magnetic core material, improving

magnetic flux densityd. Minimising air gaps in the thermal path between the coil and external

surfaces improves heat dissipation, optimising improving solenoid valveefficiency

e. Use the maximum spring power permissible by optimising parameters a to d ■

For further information visit www.norgren.com/uk/energy.

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Oil Review Middle East Issue Two 2013

EEXPANSION JOINTS ARE flexibleconnectors used to reduce vibration,dampen sound, and compensate formovement in piping systems handling

pressurised fluids. They are used in HVAC and powergeneration systems, sewage and water treatmentplants, pulp and paper mills, chemical processing,primary metals production and petroleum refiningplants. Pipe movement (face-to-face, angular,compression, lateral, elongation and vibration) canbe caused by a number of factors, including systempressure or vacuum, temperature gradients,equipment vibration, system weight and structuralsettlement. Expansion joints are typically located atthe suction or discharge side of pumps, and atdirectional changes and long runs of piping. Theyoffer a number of advantages compared with pipeloops and bends, which are less expensive, buthave hidden costs in terms of space requirements,installation labour and pipe supports.

Recent technologies “Many of our customers are moving beyondoperational excellence to focus on safety andsustainability as important business objectives,”said Sherwin Damdar

Manufacturers of expansion joints are workingon developing next-generation products and

services to help customers achieve these goals. The two primary types of expansion joints are

elastomer and metal. Elastomer expansion jointsare usually fabricated from natural or syntheticrubber and reinforced with fabric. In some cases,metal body rings are added for reinforcement.Elastomer expansion joints accommodate greaterpipe movement than metal units, offer a widerrange of spring rates and have higher abrasionresistance. They also provide acoustical impedanceand visible signs of fatigue, alerting users topotential failure.

Metal expansion joints are usually constructedin a bellows-like configuration from relatively thin-gauge material designed to absorb mechanical andthermal movements. They can withstandtemperatures of up to 982°C and pressures up to1,000 psi, both of which are beyond the capabilitiesof elastomer joints.

Selection strategies It is important to understand how processconditions will affect expansion joints. In selectingthe proper expansion joint for a particularapplication, the following factors should be takeninto account: 6 Pipe size 6 Fluid medium 6 Medium temperature 6 System pressure/vacuum 6 Expansion joint environment 6 Face-to-face dimensions 6 Pipe misalignment 6 Drilling pattern (i.e. bolt holes, bolt-hole diame-

ters, etc.) 6 Retaining rings 6 Control units

Expansion joint accessories Retainer rings should be used for all elastomerexpansion joints to distribute bolting pressureevenly and prevent flange damage duringtightening. The rings are installed directly againstthe back of the expansion joint flanges and boltedthrough to the mating pipe flanges. This helps toensure that a seal is created between these flanges.

Control units are recommended for mostapplications to prevent damage due to excessivepipe movement. These units consist of two or morecontrol rod assemblies to minimise potentialdamage from excessive axial movement. They alsoprevent over-elongation and excessive compressionif compression nuts are used.

Flow liners extend service life by protectingelastomer expansion joints from abrasive materials,particularly in high-velocity applications. Theseliners prevent fast-flowing fluids or highly abrasiveslurries from prematurely degrading the expansionjoint tubes.

Best practices The service life of an elastomer expansion joint issubject primarily to service conditions and pipemisalignment. With proper storage and installation,this type of expansion joint can be expected to lastapproximately five years under moderate serviceconditions and minimal misalignment.

It is critically important to work with anexpansion joint manufacturer that offers acomplete package of products and technicalsupport. A full-service supplier that canrecommend the correct expansion joint for a given

Safety and emissions compliance are essential to hydrocarbon refineries. Garlock companies offer ideal sealingsolutions to meet these stringent requirements. Oil rig near Port Harcourt.

It is important to understandhow process conditions will

affect expansion joints.

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Chikezie Nwaoha* interviewed Mr. Sherwin Damdar who has been working in the fluidsealing industry for the last four years. His current role is project leader for GarlockSealing Technologies’ elastomer expansion joint division.

Pipeline expansion

joints

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application will help improve plant safety, themechanical integrity of the system in which it isinstalled, and ultimately the user’s competitiveposition in the marketplace.

Common pitfalls The biggest pitfall is subjecting expansion joints toconditions beyond their specified capabilities.Expansion joints are designed to operate withincertain ranges of temperature, pressure andmovement.

When operating conditions exceed theseparameters, premature failures occur. It is thereforerecommended to work with your supplier to assurethe correct expansion joint is specified for aparticular application.

Expectations and recent technologies Many industries such as power generation andchemical processing have associations and usergroups that meet regularly to review members’concerns. These meetings cover technical issuesand provide an opportunity for members withsimilar problems to compare their experiences andpursue corrective action.

The best innovations are customer-driventhrough continuous feedback via sales andapplications engineers. This type of innovation,which sometimes involves direct collaboration

between the manufacturer and customer, focuseson the latter’s need to improve not only operationalperformance, but also sustainability and plantsafety.

The future An area of particular focus is providing customerstechnical support training seminars for installationand maintenance personnel to address topics suchas expansion joint removal, visual inspection,proper bolting, lifting and lugging, trouble-shooting, dimensional verification and others.

It is also important to instruct customers inpreventative maintenance through routine on-site

inspection of all the expansion joints in theirfacilities. This enables timely replacement of wornjoints to avoid catastrophic failures.

Also provided are failure analysis reports,offering insights into the root causes of expansionjoint failures. These reports help improve themechanical integrity of plant equipment, and canbe used to create and maintain a data file forfuture reference. ■

* Chikezie Nwaoha (AMIMechE) is a graduate ofPetroleum Engineering (with speciality in processengineering, covering flow systems design) fromFederal University of Technology, Owerri, Nigeria.

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Garlock is the acknowledged global leaderin high-performance fluid sealing products

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Oil Review Middle East Issue Two 2013

TTHE SPEED WITH which more and more data has become readilyavailable to decision makers within the global oil and gas sector hasmoved faster than rational decision making would allow, according toOracle vice president Hossam Farid.

Speaking to Oil Review Middle East, Farid said that the amount of dataaccumulated by North American-based oil and gas companies – many whohave operations in the Middle East and Africa – has, over the last five years,undergone "exponential growth" and a "sudden increase" making datamanagement difficult for companies within the sector to deal with.

Farid said that over the last 10 years, a lot of oil companies had initiateddigital oil fields in order to utilise smart technology, which has led to thecollection of an "unmanageable amount of data".

"These firms are now struggling to close the gap between their executioncapability and their data collection figures," noted Farid.

In the company's 2012 report, Vertically Challenged IT: Is Business InsightComing Up Short?, Oracle revealed that 27 per cent of the oil and gasexecutives interviewed for the six-year-long study gave their organisations a ‘D’or ‘F’ grade for their company's preparedness for a data deluge.

Rational decisions"This figure was a great surprise," Farid remarked. "Oil companies weretraditionally on top of technology in terms of data management, but to get ‘D’or ‘F’ from almost one third of the companies is staggering to us, because weexpected it to be closer to 13 per cent."

"Close to 50 per cent of the people we spoke to said that they did not havethe data required to be able to make rational decisions," Farid revealed."Companies have been complaining that they have been making decisionsbased upon data that they do not even trust. This is staggering when youconsider that business intelligence has been around for at least 15 years."

Farid added that 74 per cent of the survey's respondents said that theircompanies were now collecting more business information and data than theywere two years ago, while 96 per cent said that there has also been an increasein technical data collection over the same period.

"If you look at the upstream exploration production sector, many of thesuper majors are today managing approximately 10 petabytes of upstream dataevery year, with an annual 40 per cent increase," Farid explained.

"Most importantly companies are realising they are losing money, becauseof their inability to focus on all their data."

Farid stated that large oil companies had, in the past, been unable to actquickly on falling oil prices unless they had all the correct data at their disposal.

Complexity"If you go back to the financial crisis of 2008 when oil prices dropped fromUS$147 a barrel down to about US$43, at that time and for more than sixmonths after a lot of oil companies were still operating at a cost level of aboutUS$80 per barrel. Therefore, within the course of three to four months,companies went from generating huge profits from their operations to makinggreat losses," he commented.

According to Oracle study, 22 per cent (equivalent to US$103.6mn) ofaverage annual revenues were being lost as a result of companies not beingable to fully leverage the information they collect.

Among the executives interviewed by Oracle, 32 per cent claimed that theirnumber one management gripe was their inability to give business managersaccess to the information they need, due to their reliance on IT.

While Oracle spoke to US- and Canadian-based companies for the study,Farid said that Middle Eastern- and African-based NOCs and private companieswere facing a "slightly different situation".

"This is due to the fact that their maturity level in terms of datacollected smart technology is somewhat slower than that of the US andCanada," he remarked.

"Having said that, the operations of these companies in Africa and theMiddle East have been expanding and the complexity of their oiloperations is increasing – whether it is a deep water operation or dealingwith declining reserves.

"The move towards ultimation and more data required is happening aswe speak," he added. "You can see that clearly in Kuwait, for instance, whereit is investing heavily in smart technology; ADCO in Abu Dhabi is doingexactly the same."

AdvantageFarid said that one advantage evident from the study was that the region's oilcompanies would be able to learn from the mistakes made by their Canadianand US counterparts.

"Look at the calendar of activities and events in the Middle East over thelast 18 months and you will find oil companies such as Saudi Aramco, forexample, initiating specific conferences and activities regarding datamanagement, and we have been inviting companies such as Shell, Statoil, andBP to these events in order for companies to learn from them," Farid noted. n

Among the executives interviewed by Oracle, 32 per cent claimed that their numberone management gripe was their inability to give business managers access to theinformation they need, due to their reliance on IT.

Farid said that over the last 10 years, a lot ofoil companies had initiated digital oilfields in

order to utilise smart technology

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A survey undertaken by Oracle Corporation has revealed thatclose to 50 per cent of oil executives have, in the past fewyears, been making decisions based on data they do not trust.

Oil firms base decisions on

‘untrustworthy data’

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• Satellite, Cellular and Dual-Mode Connectivity

• Space-Based AIS Vessel Tracking Services

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ORBCOMM Is The Only 100% M2M Wireless Network

Next Generation OG2 Satellite Constellation Set to Begin Launching in 2013

www.oilreview.me

FRESH ON THE heels ofits recent acquisition ofeLearning specialistOilennium Ltd, PetrofacTraining Services (PTS)announced the launchof Introduction to Oil &Gas, a new eLearningcourse. Developed byOilennium, the courseoffers an engaging,interactive overview ofthe oil and gas industrythat can be used toenhance a trainee’s in-class training experience, and madeavailable to thousands of employees around the world.The Introduction to Oil & Gas course, which can be accessed anytime online, offers a concise summary of how the industry works,from exploration and production upstream to processing andtransmission downstream. This user-friendly course, which featuresfull voiceover guidance and colourful 3D animations technologythroughout, is completely interactive. When a module issuccessfully completed, a certificate is issued to reward the user’sefforts, fuelling the learning process. Upon completing the 12-module course, the user will have a good understanding of howhydrocarbon fields are found and developed, industry terminology,and technical know-how. At a time when unemployment is risingand major businesses are closing, the oil and gas industry continuesto buck the trend. Not only is it thriving, the industry is activelyrecruiting and searching for ways to effectively train newemployees, while simultaneously reducing training costs.

ITF, THE GLOBAL technology facilitator, will launch a call for proposalslater this month to find solutions for characterisation ofunconventional reservoirs.The call is the outcome of a workshop held in February in London,attended by experts in unconventional reservoir geomechanics. Thisidentified a pressing need for work in this area to inform up andcoming development of unconventional reservoirs.Colin Sanderson, Senior Technology Analyst of ITF said,“Unconventional gas could potentially account for around half of totalrecoverable gas reserves, and companies are keen to develop thisimportant resource. We are looking to fill some of the technology gapsthat currently exist.“By submitting their proposals to ITF, technology developers have theopportunity for their ideas to be reviewed by major oil and gas playersand could also secure up to 100 per cent funding to realise their noveltechnologies, whilst retaining full intellectual property rights.”The geomechanical characterisation call will be the third to have beenissued as a result of a technology roadmap on the topic ofunconventional reservoirs that was defined by ITF’s member companies. Specific areas of interest include failure conditions understanding(the yield envelope), coupled fracture models, understanding in-situ stress (through hydraulic methods), better predictivetechniques for natural fractures, understanding in-situgeomechanical properties, permeability change with productionand understanding induced seismicity.

An ‘in-class’ training experience online

eLearning with Petrofac

ITF calls for proposals to solvetechnology challenges

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TTHE ECONOMIC ROLLER-COASTER ride inthe energy markets has been welldocumented. Rapid and large price swingshave become commonplace, particularly

in the oil industry where it’s become a non-event forprices to swing between 15 and 30 per cent¹. Thisvolatility is caused by multiple factors, includingextreme weather phenomena that are changingconsumption habits, political instabilities that aredisrupting strategically important geographies, andbiofuels and other renewables that are complicatingfinancial models. This price volatility and uncertaintyis making it exceptionally difficult for energycompanies to make long-range business decisions,and if price fluctuations are not properly managed,profitability suffers.

OpportunitiesIn addition, demand from developing countries,notably China and India, is rising, and this trend isexpected to continue.

According to several sources including IHS-Cambridge Energy Research Associates, by 2030energy demand will jump between 30 and 40 percent from 2010 levels primarily due torequirements from emerging economies. While thisgrowth presents big opportunities, it also presentsbig challenges related to supply, operations, andlogistics.

Furthermore, the cost of doing business hasrisen due to stringent regulations regardingenvironmental practices, corporate governance, andfinancial management. And last but certainly notleast, the complexity of the energy market hasincreased exposure to all four key types of risk asidentified by the Committee of Chief Risk Officers(CCRO): price risk, operational risk, counterpartycredit risk, and regulatory risk.

StreamlineIn this challenging environment energy companiesneed every possible competitive advantage, andhave increasingly turned to specialised systems forenergy trading and risk management (ETRM).

These systems have such a critical role thatthey are the subject of an annual ‘Magic Quadrant’report from global analyst house Gartner, whichexamines the offerings of leading ETRM vendors.

Sophisticated ETRM platforms enable energyfirms to:

Optimise trading by fully integrating physicaland financial positions for multiple commodities.

Minimise risk by delivering complete visibilityinto the four key areas of exposure identified by the

CCRO, and providing tools for analysing positionsand exposure in real-time.

Streamline the supply chain by managing theunique scheduling and logistics requirements ofcoal, power, natural gas, and liquids.

Increase productivity and reduce manual errorsby providing straight-through processing (STP) fromthe front- through to the back-office.

Increasingly mobileThese systems have typically been providedthrough a desktop or laptop interface. However, thecurrent overwhelming trend in enterprisetechnology is the move to mobile. The wholesaleuse of Blackberries in the early years of the 21stcentury, and more recently the advent of iPhones,iPads, and other tablet computing devices hastaken enterprise computing to a new level, andcreated new ways of increasing productivity.

As a result, the workforce as a whole isbecoming increasingly mobile. In a surveyconducted for IBM, 75 per cent of executives statedthat the deployment of mobile devices is critical tothe long-term successes of their companies. TheFortune 500 has already embraced modernmobility: according to Apple, iPhones and iPads arealready being deployed or tested by over 90 percent of the world’s biggest companies. Andfurthermore, research from Forrester shows that 75

per cent of companies report increased workerproductivity from deploying mobile applications.

The power and prevalence of today’s mobiledevices is transforming the shape of the modernenterprise. Mobile applications empower executivesto make informed, rapid decisions by giving themthe data and analysis they need, when and wherethey need it.

Secure marginsMobile business applications were originally limitedto delivering news and information, or serving asgeneric productivity tools. Recently, however, therehave been big advances in the development ofapplications for specific business environments.These applications have the power to revolutionizethe way companies in the energy sector dobusiness.

Due to its global nature, the energy marketlends itself to the adoption of mobile technology.The energy industry operates across multiple timezones, frequently involves co-ordination of efforts,resources, and information within very shorttimeframes, and is subject to rapid changes andfluctuations in both price and operating conditions.It depends on informed, time-sensitive decision-making on a continual basis to maintainproductivity and secure margins.

When looking for suitable mobile applications,there are a number of points to consider. The mostvaluable tools are not simply lighter versions of fulldesktop applications - they are developed preciselyfor the device concerned. The idea of moving anentire desktop solution to a mobile platform is alsosub-optimal: the ideal solution will include onlythose tasks that are suitable to the mobile

Energy companies need every possible competitive advantage, and have increasingly turned to specialised systems forenergy trading and risk management

Mobile business applicationswere originally limited to

delivering news andinformation

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Competitive advantage in the energy sector is increasingly being secured by thequality of the technology deployed. Lauren LaFronz of Triple Point Technology makesthe case that ongoing tightening in the markets combined with technologicaldevelopments will push the next battle for differentiation into the mobile arena.

ETRM goes

mobile

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environment, and will offer seamless performanceof just the key functions that are appropriate and/ornecessary for the designated users.

New realityThe most important point to consider is that mobileapplications are a complement to desktopsolutions, not a replacement for them.

The new reality of the energy industry meansthat industry participants must adopt the latestsophisticated technology-based tools, and do sonow. Market volatility and complexity are here tostay. Early adopters of desktop and now mobilesolutions are already gaining competitiveadvantage; their competitors risk beingpermanently left behind. ■

Triple Point Technology provides solutions forcommodity trading, energy and oil riskmanagement, and logistics to find out more visitwww.tpt.com

¹Energy Market Volatility: How to Play Crude Oil& Natural Gas Now

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Due to its global nature, theenergy market lends itself to

the adoption of mobiletechnology

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SIEMENS SMART GRID and SABIC Polyolefine GmbH based inGelsenkirchen have established a partnership to develop asolution for energy data management in energy-intensiveindustries. The focus is on the petrochemicals processes of theGelsenkirchen location of Saudi Basic Industries Corporation. TheSaudi-Arabian chemicals and metals corporation holds a leadingposition in the Middle East, and produces polyethylene andpolypropylene at its Gelsenkirchen location. The thermoplastics

are further processed by the plastics industry to make productssuch as packaging foil, bottles and tubes. Based on provenSiemens energy automation technology, the energy datamanagement solution will help to reduce costs and increaseefficiency when it comes to the procurement, conversion,distribution, and utilization of energy at the location. The energyautomation solution will be based on the Siemens Siprotec andSicam product families.

Siemens and SABIC to develop energy data management solution

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e˘ø Gdû°˘ô¥ G’ChS°˘§. c˘ª˘É GC¿ Gdû°˘ô¥ G’ChS°˘§ b˘ó jü°˘Ñ˘í H˘óhQ√ b˘ÉOQG Y˘∏˘≈

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a˘Éd˘à˘≤˘ôj˘ô Gdü°˘ÉOQ –â YæƒG¿ {J¨ÒGä Lƒgôjá:

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G’BQGA Mƒ∫ Gdü°æÉYá ‘ Gd©ÉΩ GŸ≤Ñπ. hbó ”

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jõjó Yø 004NÑÒ fا hZÉR, he≤ÉHÓä

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G’EfàÉê S°«æªƒ eø

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نوسجريف ةعومجماهل اعرف حتتفتيبظوبأ يف

J†°˘º ›ª˘ƒY˘á aÒLù°˘ƒ¿ e˘à˘îü°ü°Ú

‘ J˘˘˘˘˘˘˘˘ÉCLÒ GŸo©p˘˘˘˘˘˘˘˘óqGä dü°˘˘˘˘˘˘˘˘æ˘˘˘˘˘˘˘˘ÉY˘˘˘˘˘˘˘˘á Gd˘˘˘˘˘˘˘£˘˘˘˘˘˘˘Éb˘˘˘˘˘˘˘á

Gd˘˘˘˘Ñ˘˘˘˘ë˘˘˘˘ôj˘˘˘á, hb˘˘˘ó Ga˘˘˘à˘˘˘à˘˘˘ëâ a˘˘˘ô´ aÒLù°˘˘˘ƒ¿

Gdû°ô¥ G’ChS°§ G÷ójó ‘ GCHƒXÑ». hS°ƒ±

J˘˘˘˘óY˘˘˘º aÒLù°˘˘˘ƒ¿ Gdû°˘˘˘ô¥ G’ChS°˘˘˘§ P.Ω.Ω

Gf˘˘˘˘àû°˘˘˘˘ÉQ ›ª˘˘˘˘ƒY˘˘˘˘á aÒLù°˘˘˘˘ƒ¿ GŸà˘˘˘˘õGj˘˘˘˘ó ‘

Gdû°˘˘ô¥ G’ChS°˘˘§ Gd˘˘ò… T°˘˘¡˘ó Ga˘à˘à˘Éì e˘μ˘àÖ

OH˘˘˘˘˘» ‘ T°˘˘˘˘˘¡˘˘˘˘ô GCZù°˘˘˘˘£ù¢/GBÜ 2102. g˘˘˘˘òG

hS°ƒ± jù°ªí aô´ GCHƒ XÑ» G÷ójó dû°ôcá

aÒLù°˘˘˘˘˘˘˘˘ƒ¿ Gdû°˘˘˘˘˘˘˘˘ô¥ G’ChS°˘˘˘˘˘˘˘˘§ H˘˘˘˘˘˘˘ÉC¿ J˘˘˘˘˘˘˘≤˘˘˘˘˘˘˘óΩ

›ª˘˘˘ƒY˘˘˘á G◊Éhj˘˘˘Éä Gd˘˘˘Ñ˘˘˘ë˘˘˘ôj˘˘˘á, hM˘˘˘Éhj˘˘˘Éä

Gd˘˘˘˘àÈj˘˘˘˘ó hŒ¡˘˘˘˘«˘˘˘˘õGJ˘˘˘¡˘˘˘É, hhM˘˘˘óGä eù°˘˘˘ÉM˘˘˘á

Gd˘©˘ª˘π, GE¤ S°˘ƒ¥m GChS°˘™ h›ª˘ƒYá T°ôcÉäm

JõGh∫ GCYªÉd¡É ‘ Gdû°ô¥ G’ChS°§.

hU°˘˘ôì e˘˘Éj∂ e˘˘«˘˘∏˘˘Ø˘˘∏˘», GŸój˘ô Gd˘à˘é˘ÉQ…

Ûª˘˘˘ƒY˘˘˘á aÒLù°˘˘˘ƒ¿, b˘˘˘ÉF˘˘˘Ók: ''jo˘˘©n˘˘˘ó Ga˘˘à˘˘à˘˘Éì

eμàÑæÉ G÷ójó ‘ OH» Gd©ÉΩ GŸÉV°» N£ƒIk

GEjéÉH«ák LóG d∏û°ôcá.

he˘ø Kn˘º jo©n˘ó hL˘ƒO g˘òG GŸμ˘àÖ G÷ójó

‘ GCHƒ XÑ» HóGják QGF©ák d©ÉΩ 3102dû°ôcá

aÒLù°˘˘˘˘˘˘ƒ¿ Gdû°˘˘˘˘˘ô¥ G’ChS°˘˘˘˘˘§. hGEÊ GCT°˘˘˘˘˘©˘˘˘˘˘ô

HÉ◊уQ ŒÉ√ Gÿo£§ GŸù°à≤Ñ∏«á ŸμÉJÑæÉ ‘

Gdû°ô¥ G’ChS°§, GEP Jù°à£«™ Gdû°ôcá GdàƒS°™

hJ≤óË OYº GCa†°π d≤£É´ Gd£Ébá GdÑëôjá

‘ GŸæ£≤á''.

hS°˘˘«˘˘≤˘˘™ e˘˘≤˘˘ô Gdû°˘˘ôc˘˘á G÷ój˘˘ó ‘ e˘Ñ˘æ˘≈

Gd¡Ó∫ ‘ GCHƒ XÑ». hS°«o≤óΩ GdØô´ G÷ójó

d˘∏û°˘ôc˘á ›ª˘ƒY˘ák c˘Ée∏ák eø GŸæàéÉä Gdà»

Jà†°ªø MÉhjÉäm Hëôják, hNõGfÉäm, hS°Ópp∫m,

hM˘˘˘˘˘Éhj˘˘˘˘˘Éä JÈj˘˘˘˘˘ó, hM˘˘˘˘˘∏˘˘˘˘˘ƒ∫ Gd˘˘˘˘à˘˘˘˘é˘˘˘˘¡˘˘˘˘«˘˘˘˘õGä,

hhMóGä eù°ÉMá Gd©ªπ.

hU°ôì S°à«ØÚ aÒLù°ƒ¿, QF«ù¢ ›∏ù¢

G’EOGQI hGd˘˘˘˘˘˘ôF˘˘˘˘˘˘«ù¢ Gd˘˘˘˘˘˘à˘˘˘˘˘˘æ˘˘˘˘˘˘Ø˘˘˘˘˘˘«˘˘˘˘˘ò… Ûª˘˘˘˘˘ƒY˘˘˘˘˘á

aÒLù°˘ƒ¿, b˘ÉF˘Ók: {j˘ó∫ hL˘ƒOf˘É ‘ gòjøp

GŸƒb˘˘˘©Úp Gd˘˘˘ôF˘˘˘«ù°˘˘˘«Úp Y˘˘˘∏˘˘˘≈ Gd˘˘˘à˘˘˘õGe˘˘˘æ˘˘˘É ŒÉ√

GŸæ˘£˘≤˘á, GEP f˘≤˘óQ e˘ói GCg˘ª«á gò√ Gdù°ƒ¥

H˘˘˘˘Éd˘˘˘˘æù°˘˘˘˘Ñ˘˘˘˘á GE¤ ›ª˘˘˘˘ƒY˘˘˘˘á aÒLù°˘˘˘˘ƒ¿, c˘˘˘ª˘˘˘É

fóQ∑ JõGjó W∏Ö Gd©ªÓA ‘ GŸæ£≤áz.

51` 71eƒD“ô he©ôV¢ T°ªÉ∫ GCaôj≤«É Gdà≤æ» .....................................................................................................Gd≤ÉgôI61` 91GdóhQI Gdù°ÉH©á Yû°ô ŸƒD“ô he©ôV°Éd¨ÉR Gd£Ñ«©» GŸù°É∫ �����..................................... gƒS°àƒ¿81` 12e©ôV¢ GEjôG¿ d∏æا .............................................................................................................................................. W¡ôG¿22` 52e©ôV¢ d«Ñ«É d∏æا hGd¨ÉR .................................................................................................................................. WôGH∏ù¢

ناسين/ليربأ

1` 4e©ôV¢ H¨óGO d∏æا hGd¨ÉR.......................................................................................................................................H¨óGO6` 9eƒD“ô J≤æ«á G’Chaû°ƒQ ��................................................................................................................................ gƒS°àƒ¿41` 61eƒD“ô he©ôV¢ Gdæا Gdã≤«π ........................................................................................................................Gdμƒjâ61` 81e©ôV¢ HÉcù°àÉ¿ d∏æا hGd¨ÉR hGd£Ébá ��`...........................................................................côGJû°»

رايأ/ويام

5` 7e©ôV¢ GBS°«É d∏æا hGd¨ÉR .................................................................................................................................. cƒG’ŸÑƒQ01` 31eƒD“ô he©ôV¢ G÷ª©«á G’ChQhH«á d©∏ªÉA G÷«ƒdƒL«É hGŸ¡æóS°Ú �� ���..... dæó¿11` 31e©ôV¢ Gdæا hGd¨ÉR .......................................................................................................................................... cÉd¨ÉQ…

2` 5e©ôV¢ GCQH«π d∏æا hGd¨ÉR....................................................................................................................................... GCQH«π3` 6eƒD“ô he©ôV¢ GChaû°ƒQ GChQhHÉ ............................................................................................................................... GCHôOjø92` 2/01e©ôV¢ heƒD“ô Gdû°ô¥ G’ChS°§ d∏æا 3102................................................................................. GŸæÉeá

6` 8GŸ©ôV¢ Gd©ôH» d∏æا hGd¨ÉR ........................................................................................................................................... OH»7` 9e©ôV¢ heƒD“ô Gdû°ô¥ G’ChS°§ dà≤æ«Éä G◊Øô ................................................................................................. OH»8` 01e©ôV¢ Gdμƒjâ d∏æا hGd¨ÉR ................................................................................................................................... Gdμƒjâ82` 03e©ôV¢ heƒD“ô Gd£Ébá Gdòc«á ............................................................................................................................ OH»

ناريزح/وينوي

لوليأ/ربمتبس

يناثلا نيرشت/ربوتكأ

01` 31e©ôV¢ heƒD“ô GCHƒXÑ» Gdóh‹ d∏æا �� �������.................................................................. GCHƒXÑ»52` 72GŸ©ôV¢ Gdù°©ƒO… Gdóh‹ d∏æا hGd¨ÉR` ���............................................................................ Gd¶¡ôG¿

لو*ا نيرشت/ربمفون

5` 8e©ôV¢ GdÑü°ôI d∏æا hGd¨ÉR ..................................................................................................................................... GdÑü°ôI

لو*ا نوناك/ربمسيد

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رابخأ

Jù°˘˘Ñ˘˘Ñâ K˘˘ƒQI Gd˘˘æ˘˘Ø˘˘§ hGd˘˘¨˘˘ÉR ZÒ Gd˘˘à˘≤˘∏˘«˘ó… ‘J˘¨˘«Òm g˘ÉF˘πm ‘ N˘ôj˘£˘á Gd˘£˘Ébá Gd©ÉŸ«á, h” Y∏≈GEK˘˘˘˘˘ôg˘˘˘˘˘É J˘˘˘˘˘¨˘˘˘˘«Ò Gÿôj˘˘˘˘£˘˘˘˘á Gdü°˘˘˘˘æ˘˘˘˘ÉY˘˘˘˘«˘˘˘˘á hN˘˘˘˘ôj˘˘˘˘£˘˘˘˘áGd˘˘àü°˘˘æ˘˘«˘˘™ Gd˘˘à˘˘æ˘˘Éaù°˘˘«˘˘á ‘ Gd˘˘©˘É⁄, ha˘≤k˘É ŸÉ L˘ÉA ‘J≤ôjôm Lójóm eø ����

hb˘˘˘ó ” GEU°˘˘˘óGQ Gd˘˘˘à˘˘˘≤˘˘˘ôj˘˘˘ô {Gd˘˘˘£˘˘˘Éb˘˘á hGÿôj˘˘£˘˘áGdü°˘˘˘˘æ˘˘˘ÉY˘˘˘«˘˘˘á Gd˘˘˘©˘˘˘ÉŸ«˘˘˘á G÷ój˘˘˘óI: J˘˘˘¨Òl H˘˘˘æ˘˘˘«˘˘˘ƒ…z ‘G’LàªÉ´ Gdù°æƒ… d∏ªæàói G’bàü°ÉO… Gd©ÉŸ» d©ÉΩ3102‘ OGaƒS¢ Hù°ƒjù°ôG. hgƒ jóQS¢ GCKô Gd£ÉbáZÒ Gd˘˘˘à˘˘˘≤˘˘˘∏˘˘˘«˘˘˘ój˘˘˘á )Z˘˘ÉR Gdü°˘˘î˘˘ô Gd˘˘õj˘˘à˘˘» hGd˘˘æ˘˘Ø˘˘§GÙμ˘˘º( Y˘˘∏˘˘≈ GCS°˘˘ƒG¥ Gd˘˘£˘˘Éb˘˘á Gd˘˘©˘ÉŸ«˘á, hU°˘æ˘ÉY˘áGdù°˘«˘ÉQGä, hGdü°˘æ˘ÉY˘Éä Gd쫪«ÉF«á, hcòd∂ Y∏≈Gd˘˘˘˘˘ƒ’j˘˘˘˘˘Éä GŸà˘˘˘˘˘ë˘˘˘˘˘óI, M˘˘˘˘˘«å jo˘˘˘˘ëù° u˘˘˘˘˘ø Gd˘˘˘˘˘à˘˘˘˘˘æ˘˘˘˘Éaù¢ ‘Gdàü°æ«™.

hQZ˘º GC¿ Gd˘£˘Éb˘á ZÒ Gd˘à˘≤˘∏˘«ójá RhOä GCeôjμÉGdû°˘ª˘Éd˘«˘á ''H˘óa˘©á cÑÒI'', GCaÉO fÉQÁÉ¿ H«¡ôGa«û¢,GCM˘ó c˘ÉJ˘Ñ˘» Gd˘à˘≤˘ôjô hcÑÒ G’bàü°ÉOjÚ ‘ ���,HÉC¿ GCKôgÉ S°ƒ± jà†°í ‘ Gdæ¡Éjá Y∏≈ f£É¥ GChS°™

Y˘˘˘æ˘˘˘óe˘˘˘É J†°˘˘˘£˘˘∏˘˘™ Oh∫l GCN˘˘ôi H˘˘à˘˘£˘˘ƒj˘˘ô e˘˘ƒGQO Z˘˘ÉRGdü°˘˘î˘˘ô Gd˘˘õj˘˘à˘˘» hGd˘˘æ˘˘Ø˘˘§ GÙμ˘˘º d˘˘ój˘˘¡˘É. hU°˘ôìH«¡ôGa«û¢ bÉFÓk: {eÑóF«É, cÉ¿ Pd∂ heÉRG∫ Oa©ákb˘˘˘ƒj˘˘˘ák ’Ce˘˘˘ôj˘˘μ˘˘É Gdû°˘˘ª˘˘Éd˘˘«˘˘á. hQZ˘˘º Pd∂, Jù°˘˘à˘˘£˘˘«˘˘™GŸæ˘ÉW˘≥ hGd˘óh∫ G’CN˘ôi, Gd˘à˘» d˘ój¡É eù°àƒOYÉäcÑÒI eø ZÉR Gdü°îô Gdõjà» hGdæا GÙμº, GC¿Jo˘˘˘˘û°˘˘˘˘ÉQ∑ GCj†°˘˘˘˘É ` ÃôhQ Gd˘˘˘˘ƒbâ ` ‘ K˘˘˘˘ƒQI Gd˘˘˘˘£˘˘˘˘Éb˘˘˘˘áhf¡†°á Gdü°æÉYá gò√z.

hbó GCU°óQä ���OQGS°ák LójóIk bóqQä GCf¬ ‘Gdƒ’jÉä GŸàëóI ÃØôOgÉ, fàè Yø KƒQI GS°àîôGêGd˘˘æ˘˘Ø˘˘§ hGd˘˘¨˘˘ÉR ZÒ Gd˘˘à˘˘≤˘∏˘«˘ójÚ N˘∏˘≥ 7^1e∏«ƒ¿

hX˘«˘Ø˘á. c˘ª˘É GCV°É± 26e˘∏˘«˘ÉQ Oh’Q GCe˘ôj˘μ» GE¤Gdü°˘æ˘ÉOj˘≥ Gd˘Ø˘«˘óQGd«á hG◊μƒe«á ‘ YÉΩ 2102.hb˘˘˘˘É∫ H˘˘˘˘«˘˘˘˘¡˘˘˘ôGa˘˘˘«û¢ GE¿ GdÎGL˘˘˘™ Gd˘˘˘μ˘˘˘ÑÒ ‘ GCS°˘˘˘©˘˘˘ÉQGd˘£˘Éb˘á Jù°˘ÑÖ GCj†°˘É ‘ Rj˘ÉOIm g˘ÉF˘∏ám ‘ G’S°àãªÉQ

‘ Gd˘˘˘ƒ’j˘˘˘Éä GŸà˘˘˘ë˘˘óI, ‡É a˘˘ôV¢ flÉW˘˘ôIk Y˘˘∏˘˘≈GChQhHÉ hGBS°«É Gd∏àÚp J©Éf«É¿ eø géôI Gdàü°æ«™ GE¤GCeôjμÉ Gdû°ªÉd«á ha≤óG¿ Gd≤óQI GdàæÉaù°«á.

GCe˘˘˘˘É OGf˘˘˘˘«˘˘˘˘É∫ j˘˘˘ôLÚ, f˘˘˘ÉFÖ QF˘˘˘«ù¢ ���hGCMóc˘˘˘ÉJ˘˘˘Ñ˘˘˘» Gd˘˘˘à˘˘≤˘˘ôj˘˘ô, a˘˘≤˘˘É∫ g˘˘ƒ GCj†°˘˘É GE¿ Kn˘˘ª˘˘á Jù°˘˘ÉhD’J˘˘˘£˘˘˘ôM˘˘¬ Gdû°˘˘ôc˘˘Éä hG◊μ˘˘ƒe˘˘Éä Y˘˘∏˘˘≈ M˘˘ó S°˘˘ƒGA,hHü°˘ƒQI e˘à˘õGj˘óI, M˘ƒ∫ e˘É GEPG c˘Éfâ K˘ƒQI GdæاhGd¨ÉR ZÒ Gdà≤∏«ójÚ S°ààƒS°™ aàü°Ñí YÉŸ«ák eø

Y˘˘óe˘˘¬. Pd∂ GCf˘¬ ” –ój˘ó a˘ôU¢ c˘ÑÒI ‘ c˘Éa˘áGCfëÉA Gd©É⁄.

hU°ôì jôLÚ bÉFÓk: ''” –ójó aôU¢ cÑÒI ‘c˘˘Éa˘˘á GCf˘˘ë˘˘ÉA Gd˘˘©˘É⁄. hjû°Ò H˘ë˘ã˘æ˘É GE¤ GC¿ b˘ÉY˘óIGŸƒGQO ‘ Gdü°Ú b˘˘ó J˘˘μ˘˘ƒ¿ GCcÈ e˘˘ø e˘˘ã˘˘«˘˘∏˘˘à˘˘¡˘˘É ‘Gdƒ’jÉä GŸàëóI, cªÉ fÓMß GEeμÉfÉäm ‘ GCeÉcøGCNôi. hQZº Pd∂, Jîà∏∞ Gd¶ôh± Gdà» YõRä

gòG GdࣃQ ‘ Gdƒ’jÉä GŸàëóI ‘ fƒGìm gÉeá YøGCL˘˘õGA Gd˘˘©˘É⁄ G’CN˘ôi. he˘ÉRd˘æ˘É ‘ GCh∫ Gd˘£˘ôj˘≥,hf©à≤ó GC¿ G’Ceô S°ƒ± jù°à¨ô¥ S°æƒGäm YójóIk bÑπGC¿ J˘˘¶˘˘¡˘˘ô c˘˘ª˘˘«˘˘Éä c˘˘ÑÒI e˘˘ø Gd˘˘£˘˘Éb˘˘á hGd˘¨˘ÉR ZÒGdà≤∏«ó… ‘ eæÉW≥ GCNôi''.

GEf˘˘˘óha˘˘˘É d˘˘˘∏˘˘˘£˘˘˘Éb˘˘˘á g˘˘» T°˘˘ôc˘˘ál J˘˘à˘˘ÉL˘˘ô ‘ flÉR¿Gd˘˘˘˘˘˘ƒb˘˘˘˘˘˘ƒO, heo˘˘˘˘˘˘ƒQuO f˘˘˘˘˘˘Ø˘˘˘˘˘˘§ hZ˘˘˘˘˘ÉR e˘˘˘˘˘ÉO… eù°˘˘˘˘˘à˘˘˘˘˘≤˘˘˘˘˘π ”J˘ÉCS°˘«ù°˘¡˘É M˘ój˘ã˘É, hb˘ó OT°æâ Yª∏«ÉJ¡É ‘ cπ eø

OH˘˘˘» hg˘˘˘ƒS°Ï, M˘˘˘«å J˘˘≤˘˘óΩ N˘˘óe˘˘ÉJ˘˘¡˘˘É GE¤ eo˘˘Ó∑Gdù°˘˘˘˘˘˘Ø˘˘˘˘˘˘ø hGŸæû°˘˘˘˘˘ÉBä Gd˘˘˘˘˘Ñ˘˘˘˘˘ë˘˘˘˘˘ôj˘˘˘˘˘á hhM˘˘˘˘˘óGä G’Ef˘˘˘˘˘à˘˘˘˘˘ÉêhGd˘˘à˘î˘õj˘ø hGd˘à˘Ø˘ôj˘≠ Gd˘©˘ÉF˘ª˘á)����(. hJ˘˘à˘˘ƒb˘˘™

Gdû°ôcá GC¿ joë≤≥ JƒQjógÉ GŸÉO… d∏¨ÉR hGdæا GE¤ZôÜ GCaôj≤«É, hGCj†°ÉYª∏«á ŒÉQI flÉR¿ GdƒbƒO,eÑ«©Éäm c∏«ák Jo≤ónQ H` 001e∏«ƒ¿ Oh’Q GCeôjμ» ‘Gd©ÉΩ G’Ch∫.

hJù°˘à˘î˘óΩ GEf˘óha˘É d∏£Ébá fÉb∏àÚ U°¡ôjé«àÚpe˘˘˘˘õOhL˘˘˘˘à˘˘˘» Gd˘˘˘¡˘˘˘«˘˘˘μ˘˘˘π, h›¡˘˘˘õJÚ c˘˘˘∏˘˘˘«˘˘˘É H˘˘˘ë˘˘˘ƒGL˘˘˘õGU°£óGΩ hNôGW«º dàù°∏«º GdàƒQjó GŸÉO… d∏æاhGd˘˘˘¨˘˘ÉR. hj˘˘≤˘˘™ e˘˘≤˘˘ô Y˘˘ª˘˘∏˘˘«˘˘á ŒÉQI flÉR¿ Gd˘˘ƒb˘˘ƒOGd©ÉŸ«á ‘ OH». hjàƒ¤ GEOGQI Gdû°ôcá aôj≥l jàªà™

ÃÉ j˘˘õj˘˘ó Y˘˘ø 53Y˘˘Ée˘˘É e˘ø GÿÈI ‘ U°˘æ˘ÉY˘ÉäGdû°ëø hflÉR¿ GdƒbƒO, hj†°º GC’¿ aôhS°â, hgƒGdû°ôj∂ GŸójô dû°ôcá GEfóhaÉ d∏£Ébá hcÑÒ JoéÉQ

flÉR¿ GdƒbƒO.

ةيملاعلا ةعانصلل ةديدج ةطيرخ عضت ةقاطلا ةروث

ةقطنملا يف اهتايلمع نشدت ةقاطلل افودنإ

U°©ƒO ZÉR Gdü°îô Gdõjà» S°àμƒ¿ d¬ GBKÉQ YÉŸ«á

GEfóhaÉ d∏£Ébá Jù°àîóΩ fÉb∏àÚ U°¡ôjé«àÚ eõOhLà» Gd¡«μπ h›¡õJÚ c∏«É HëƒGLõ GU°£óGΩ hNôGW«º dàù°∏«º GdàƒQjó GŸÉO… d∏æا hGd¨ÉR

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رابخأ

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b˘óeâ T°˘ôc˘á O… GE∫ GEj˘¬ H˘ÉjÈ d˘∏˘ª˘ëÉeÉI )�� �������GS°˘àû°ÉQGJ¡É GE¤T°ôcá ���ÿóeÉä M≤ƒ∫ Gdæا NÓ∫ H«™ Mü°à¡É Gd¨ÉdÑá )15‘ GŸÉFá(GE¤ L∏∞ cÉH«àÉ∫ )���� �������,T°ôcá GŸ∏μ«á GÿÉU°á Gdà» j≤™ e≤ôgÉ

‘ GCHƒ XÑ», hgòG e≤ÉHπ eÑ∏≠ ⁄ jຠG’EYÓ¿ Yæ¬, ‡É joªãπ N£ƒI ‘ GEWÉQJ«ù°Ò GdàƒS°™ Gdóh‹ dû°ôcá ���hJÑÉT°ô Gdû°ôcá MÉd«É Yª∏«Éä Jû°¨«∏«ák

‘ cÉaá GCfëÉA Gÿ∏«è hLæƒÜ T°ô¥ GBS°«É hGCaôj≤«É, GEP Jƒaô Gd©Ée∏Ú dû°ôcÉäG◊Ø˘˘ô Gd˘˘Ñ˘˘ë˘˘ôj˘˘á. Y˘˘∏˘˘ª˘˘É H˘˘ÉC¿ GŸƒDS°ù¢ a˘Éj˘Ñ˘É± c˘Éf˘ÉO S°˘ƒ± j˘¶˘π ‘ e˘æü°˘Ñ˘¬côF«ù¢m JæØ«ò… dóYº Gdû°ôcá ‘ eôM∏á GdࣃQ Gd≤ÉOeá.

hGCaÉO LÉjû°ô… LƒHàÉ, cÑÒ G’S°àû°ÉQjÚ ‘ T°ôcá O… GE∫ GEj¬ HÉjÈ Gdû°ô¥G’ChS°§, hGdò… GCOGQ Gdü°Ø≤á, HÉC¿:{gò√ Gdü°Ø≤á J©àÈ HÉd¨á G’Cgª«á f¶ôG

’Cf¡É Jù°ªí dû°ôcá ���HÉŸ†°» bóeÉ ‘ No££¡É d∏àƒS°™ ‘ GCaôj≤«É hLæƒÜT°ô¥ GBS°«É M«å GdØôU¢ gÉF∏áz. hGCV°É± bÉFÓk: {JóYº Gdü°Ø≤á ‚Éì hbƒIG’Cfû°˘£˘á Gd˘àéÉQjá dû°ôcá ���hL˘ÉPH˘à˘¡˘É d˘∏ªù°àãªôjø, hjù°ôfÉ GC¿ fóYºGd˘à˘ƒS°˘™ Gd˘óh‹ dû°˘ôc˘ám fi∏˘«˘áz. hGCV°˘É± a˘Éj˘Ñ˘É± cÉfÉO, GŸƒDS°ù¢ hGdôF«ù¢GdàæØ«ò… dû°ôcá ���bÉFÓk: {M«å T°ôYâ T°ôcá ���‘ GdàƒS°™ Gdóh‹

Hü°ƒQI eμãØá, S°ƒ± joù°ÉYófÉ Gdઃjπ hGdóYº Gd∏òG¿ J≤óe¡ªÉ L∏∞ cÉH«àÉ∫Hû°μπ eoéó Y∏≈ –≤«≥ No££æÉ Gd£ªƒì d∏檃 G’Eb∏«ª»z.

b˘˘˘Éeâ T°˘˘˘ôc˘˘á G◊Ø˘˘ô Gd˘˘ƒW˘˘æ˘˘«˘˘á G’Ej˘˘ôGf˘˘«˘˘á)���(hT°˘˘˘ôc˘˘˘á f˘˘˘Ø˘˘˘§ G÷æ˘˘˘ƒÜ Gd˘˘ƒW˘˘æ˘˘«˘˘áG’EjôGf«á )����(HÉEfû°ÉA e涪ák Ÿù°ÉYóIT°˘ôc˘Éä Gd˘æ˘Ø˘§ G’CL˘æ˘Ñ˘«˘á hGÙ∏«á Y∏≈ eæ™Gd˘à˘óa˘≥ ZÒ GŸoà˘ë˘μn˘º a˘«˘¬ d˘∏æا hGd¨ÉR eøG’BH˘ÉQ. h‘ M˘ójå d˘¬ e˘™ hc˘Éd˘á T°˘Éf˘É, U°ôì

M˘˘Ée˘˘ó Qj˘˘õG L˘˘ƒd˘˘Ñ˘˘Éj˘˘é˘˘ÉÊ, Gd˘˘©†°˘˘ƒ GŸæ˘˘à˘óÜdû°˘˘ôc˘˘á G◊Ø˘˘ô Gd˘˘ƒW˘˘æ˘˘«˘˘á G’Ej˘˘ôGf˘˘«˘˘á, H˘˘≤˘˘ƒd˘˘¬:{a˘˘˘«˘˘˘ª˘˘˘É j˘˘˘àü°˘˘˘π H˘˘˘É’Ce˘˘˘ô Gdü°˘˘˘ÉOQ Y˘˘ø Gd˘˘©†°˘˘ƒGŸæ˘˘à˘˘óÜ dû°˘˘ôc˘˘á Gd˘˘æ˘˘Ø˘˘§ Gd˘˘ƒW˘˘æ˘«˘á G’Ej˘ôGf˘«˘áH˘ÉEfû°˘ÉA e˘æ˘¶˘ª˘á Ÿæ™ Gdàóa≥ Gd©æ«∞, OQS°âT°ôcá G◊Øô GdƒWæ«á G’EjôGf«á hT°ôcá fاG÷æ˘˘˘˘ƒÜ Gd˘˘˘ƒW˘˘˘æ˘˘˘«˘˘˘á G’Ej˘˘˘ôGf˘˘˘«˘˘˘á S°o˘˘˘Ñ˘˘˘π Jù°˘˘˘ôj˘˘˘™G’Ce˘˘ôz. hGCT°˘ÉQ L˘ƒd˘Ñ˘Éj˘é˘ÉÊ GE¤ G’Ee˘μ˘Éf˘Éä

Gd˘˘Ø˘˘æ˘«˘á hGd˘¡˘æ˘óS°˘«˘á dû°˘ôc˘á G◊Ø˘ô Gd˘ƒW˘æ˘«˘áG’Ej˘˘˘˘˘ôGf˘˘˘˘˘«˘˘˘˘á, hGCV°˘˘˘˘É± H˘˘˘˘ÉC¿ Gdû°˘˘˘˘ôc˘˘˘˘á Jù°˘˘˘˘à˘˘˘˘©˘˘˘˘ódàü°ójô NóeÉä G◊Øô heæ™ Gdàóa≥ Gd©æ«∞GE¤ Oh∫m GCNôi.

hU°˘˘˘˘ôì eù°˘˘˘˘ƒDh∫ T°˘˘˘˘ôc˘˘˘á G◊Ø˘˘˘ô Gd˘˘˘ƒW˘˘˘æ˘˘˘«˘˘˘áG’Ej˘˘ôGf˘˘«˘˘á H˘˘ÉC¿ Gdû°˘˘ôc˘˘àÚp J˘˘à˘˘ª˘à˘©˘É¿ H˘îÈGäb˘«˘ª˘á ‘ Gd˘à˘ë˘μ˘º ‘ J˘óa≥ Gdæا hGd¨ÉR eøG’BH˘˘˘˘˘˘˘ÉQ N˘˘˘˘˘˘ÉQê hOGN˘˘˘˘˘˘π Gd˘˘˘˘˘˘óhd˘˘˘˘˘˘á, ÃÉ ‘ Pd∂GM˘˘˘à˘˘˘ƒGA J˘˘óa˘˘≥ Gd˘˘¨˘˘ÉR e˘˘ø GBH˘˘ÉQ Gd˘˘μ˘˘ƒjâ hH˘˘Ä˘˘ôc˘˘É‚É¿ hH˘˘Ä˘˘ô f˘˘Ø˘˘àû°˘˘¡˘˘ô ‘ GEj˘˘ôG¿. hha˘˘≤˘É ŸÉU°ôì H¬ GŸù°ƒDh∫, Jù°à£«™ Gdû°ôcàÉ¿ J©õjõcØÉAJ¡ªÉ eø NÓ∫ –ù°Ú Gdà涫º hJ©õjõGd˘˘à˘˘æù°˘˘«˘˘≥, hJ˘ƒRj˘™ eo˘©p˘óqGJ˘¡˘ª˘É Hü°˘ƒQI –≤˘≥aÉFóI GCcÈ.

ايملاع عسوتلا وحن ىعست��� ةكرش

GCY∏æâ eƒDNôG T°ôcá ’eÈjπ, GŸàîü°ü°á ‘ gæóS°á GdæاhGd˘˘¨˘˘ÉR, Y˘˘ø J˘˘ƒ‹ L˘˘«˘˘ªù¢ e˘˘ƒa˘˘Éä e˘˘æü°Ö Gd˘˘ôF˘˘«ù¢ Gd˘˘à˘˘æ˘˘Ø˘˘«˘ò…d˘∏˘ª˘é˘ª˘ƒY˘á. hb˘ó GCa˘ÉOä Gdû°ôcá, Gd≤ÉFªá ‘ G’EeÉQGä Gd©ôH«áGŸàëóI, HÉC¿ H«Î hGjàÈjó, Gdò… bÉΩ HÉCYªÉ∫ GdôF«ù¢ GdàæØ«ò…Hü°Øá eƒDbàá eæò T°¡ô GCcàƒHô/Jû°ôjø G’Ch∫, S°ƒ± jù°àªô ‘Gd˘˘©˘˘ª˘˘π ‘ ›∏ù¢ GEOGQI Gdû°˘˘ôc˘˘á h‘ J˘˘≤˘˘óË OY˘˘ª˘˘¬ GE¤ e˘˘ƒa˘˘ÉäHü°Øଠeù°ƒDh’ JæØ«òjÉ. hbó Y∏≥ Lƒ¿ c«æ«ó…, QF«ù¢ ’eÈjπ,

‘ H«É¿m d¬ bÉFÓk:{GChO GdÎM«Ö ÃaÉä ‘ GÛªƒYá, hGCJ£∏™ GE¤Gd©ªπ Yø cnãÖ e©¬ NÓ∫ Gdà≤óΩ HÉdû°ôcá fëƒ G’CeÉΩ ‘ S°Ñ«π

–≤˘«˘≥ Œój˘ó d˘∏˘æ˘ª˘ƒ hGd˘ôH˘ë˘«á. d≤ó M≤≤æÉ J≤óeÉ cÑÒG NÓ∫Gdù°àá GCT°¡ô GŸÉV°«á, GEP QcõfÉ Y∏≈ f≤É• Gd≤ƒI GdôF«ù°«á Gdà»fàªà™ H¡É Gdû°ôcá, hfëø Môjü°ƒ¿ Y∏≈ eƒGU°∏á Gd©ªπ GdôGF™Gdò… HóGC√ Gdù°«ó/ hGjàÈjó eæò J©««æ¬. hGChO GCj†°É GC¿ GCfà¡õ gò√GdØôU°á dà≤óË NÉdü¢ Gdû°μô GE¤ Gdù°«ó/ hGjàÈjó ŸÉ Hòd¬ eø

L¡ƒO, cªÉ jù°ôÊ GCf¬ hGa≥ Y∏≈ eƒGU°∏á Gd©ªπ heù°ÉYóJæÉ ‘Yª∏«á GEYÉOI HæÉA Gdæû°É• GdàéÉQ…z.

ةكرشل يذيفنتلا سيئرلا هلمع أدبي ليربمال

مكحتلل ةديدج ةمظنم ئشنت سراب فينعلا قفدتلا يف

T°ôcá ���eàîü°ü°á ‘ JƒQjó GŸù°àîóeÚ dû°ôcÉä G◊Øô GdÑëô…

L«ªù¢ eƒaÉä

GMói GŸæû°ÉCä G’EjôGf«á

www.oilreview.me

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يبرعلا مسقلا

GCNÑÉQ ................................................................................................................................................................................. 4

–∏«Óä ......................................................................................................................................................................... 8

يزيلجنإلا مسقلا تايوتحم صخلم

J≤ÉQjô NÉU°á: Gd©ôG¥.......................................................................................................................................................................................................

GS°à£ÓYÉä:Gd¨ÉR, eôGbÑá G◊ôj≥, Gd£Ébá hGdàóQjÖ hGdࣃjô OGNπ GŸƒGb™.

......................................................................................................................................................................................................

eù°ÉFπ J≤æ«á: J˘≤˘æ˘«˘á N˘£˘ƒ• G’Cf˘ÉH˘«Ö, Gd˘à˘ë˘μº ‘ GdàÉBcπ, Gdü°ªÉeÉä hGŸû°¨Óä GŸ«μÉf«μ«á, Gdü°ëáhGdù°Óeá.

......................................................................................................................................................................................................

G’Jü°É’ä hJμæƒdƒL«É GŸ©∏ƒeÉä: JƒU°«∞ GÿõGfÉä hGJü°É’ä M≤ƒ∫ Gdæا.

......................................................................................................................................................................................................

eƒD“ôGä he©ÉQV¢: e˘ƒD“ô GChaû°`````ƒQ Gd˘Ñ˘ë˘ô GŸà˘ƒS°```````§, e˘©````ôV¢ Gd˘à˘≤˘æ˘«`````á GŸà≤óe````á d∏æا G◊`````````Ée†¢hGd¨ÉR )S°ƒLÉä(.

www.oilreview.me

Company ......................................................Page

ALAA Industrial Equipment Factory ............................65

All World Exhibitions (KOGS 2013)..............................53

All World Exhibitions (GEO)............................................69

BAPCO ..................................................................................79

Bauer Kompressoren Middle East ................................29

Blueback Reservoir AS ....................................................44

Bredero Shaw Middle East Ltd. ....................................13

Canusa-CPS ........................................................................23

Chevron ..........................................................................8 & 9

CompAir Middle East ..........................................................3

DMG (ADIPEC 2013) ........................................................71

DNV........................................................................................49

Duferco..................................................................................45

Emirates................................................................................11

Euroblast Middle East L.L.C...............................................7

Global Pipe Company ......................................................52

GRACO BVBA......................................................................42

Hempel Paints Bahrain ....................................................19

Hi-Force Ltd. ........................................................................33

Hyderabad Industries Ltd ................................................32

Jal Group Italia S.r.l. ..........................................................36

Jotun Paints U.A.E. Ltd. (LLC) ............................................5

Magnatech International BV ........................Cover wrap

Magnetrol International N.V...........................................41

Metscco Heavy Steel Industries Co. Ltd.....................31

Middle East Tubular Services Ltd. ................................26

National Pipe Company ..................................................38

Nexans ..................................................................................21

Nylacast................................................................................50

Oeltechnik............................................................................17

Oman Cement Company ................................................57

Orbcomm..............................................................................67

People Worldwide ............................................................72

Prakash Steelage Ltd. ......................................................27

Qatar Expo............................................................................74

Sabin Metal Corporation..................................................15

Safehouse Habitats ..........................................................24

Saga PCE Pte Ltd. ..............................................................61

Samson Controls FZE........................................................28

Saudi Leather Industries Company Ltd. ......................40

Saudi Steel Pipe Company ............................................59

Schlumberger Oilfield Mktg Communications............2

Schlumberger Technical Services, Inc. ..........................6

Shree Steel Overseas FZCO............................................16

Societa' Italiana Elicotteri S.r.l.......................................43

Society of Petroleum Engineers....................................25

Suraj Limited ......................................................................17

Tenaris ..................................................................................51

Tendeka ................................................................................55

TMK, OAO ............................................................................35

Trans Asia Pipeline Services FZC..................................63

Tratos Cavi S.p.A.................................................................39

United Metallurgical Company / JSC OMK ..............47

ADVERTISERS INDEX

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