Oil Review Middle East 3 2015

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VOLUME 18 | ISSUE 3 2015

Andy Gibbins, VP Middle East atEPC, discusses the impact of thelow oil price on refining andpetrochemicalsSee page 32

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

Managing the workforce forlong-term growth

PDO drives Oman’s oil and gasproduction forward

LNG market faces increasingvolatility

The benefits of sharing big data

Improving performance indrilling operations

Making fracturing safer andmore efficient

Serving the regional oil & gas sectorsince 1997

88

Streamlining thevalue chain through technologyimprovements

See us at the show:

ORME 3 2015 Cover_ORMETHREE05COVER.qxd 16/04/2015 11:45 Page 1

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S01 ORME 3 2015 - Start_Layout 1 16/04/2015 14:04 Page 2


4 oilreview.me Issue 3 2015

Calendar6 Executives’ Calendar

Event listings, plus a look at the WorldGas Conference

Exploration & Production10 Developments

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

Gas12 Global LNG

The LNG market in 2015 will be markedby increasing volatility, according to BG’slatest survey

16 DevelopmentsThe latest news from around the region

Analysis18 Developing a new roadmap

Azerbaijan is reevaluating and readjustingits oil and gas development andmarketing strategies

22 Streamlining the value chainCompanies that can work smarter andmore efficiently will be the survivors inthe current low oil price scenario

24 In the driving seatPDO continues to drive Oman’s oil andgas production forward despite thecurrent challenges facing the industry

28 Big dataSharing data securely industry-wide couldbring big benefits

Petrochemicals32 Refining and petrochemicals face

mixed outlookThe impact of oil price changes on theGCC refining and petrochemicalsindustries

33 DevelopmentsThe latest news from around the region

Technology36 Using solar energy in the oil and gas

sectorA pioneering project designed to reducegreenhouse gas emissions in the oil andgas industry

38 Making fracturing safer and moreefficientThe use of energised solutions can helpto increase productivity and reduce theenvironmental impact of hydraulicfracturing

42 Improving performance in drillingoperationsThe benefits of a new filtration system toremove solids from the drilling fluid

46 Guaranteed protectionA round-up of surface coating solutions

Event Preview52 OTC

All the latest show and exhibitor news

Talent Management56 Managing the workforce for long-

term growthThe importance of having a sustainableresourcing strategy

Innovations60 Industry developments

A round-up of the latest productadvancements in oil and gas

Rig Count65 Monthly MENA rig count

Arabic5 News/Analysis

Front cover image: Stockphoto maniaBack cover image: anekohop11 Arabic image: Champion Studio

Contents

AT A TIME of low oil prices it is tempting to slash investment in technologyand lay off staff. At MEOS in March, delegates were cautioned againstoverreacting. Amin H Nasser, Saudi Aramco’s senior vice president ofUpstream, speaking on the challenge of keeping up during a downturn,commented, “Retaining talent is crucial for the future of the industry...thereduced investment in technology and talent that characterised the 1980sand early 1990s should remind us that repercussions can be lasting.” Our feature on page 56 highlights the need for oil and gas firms to take along-term view and adopt a strategic approach to recruitment to ensure theyhave the appropriate resources in place when oil prices recover. Seekingefficiencies rather than cutting the workforce is key. This and other issueswill be debated at our ‘Managing Talent in Oil and Gas’ conference in AbuDhabi in May. We hope to see you there.

Editor’s note

www.oilreview.meemail: [email protected]

Serving the world of business

Editor: Louise Waters - [email protected]

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© Oil Review Middle East ISSN: 1464-9314


S02 ORME 3 2015 - Events_Layout 1 16/04/2015 14:05 Page 5

THE WORLD GAS Conference (WGC), set to take place in Paris in June, willlook to address gas industry challenges such as the sustainability of supply,the role of gas as a transition fuel, and the development and application ofnew technologies.

Jérôme Ferrier, president of the International Gas Union (IGU), has beenvisiting a number major gas producing and purchasing countries prior to thetriennial event, including Indonesia, South Korea, Japan, Qatar and the UAE,in order to discuss the challenges facing the gas industry with politiciansand industry leaders. Their insight and expertise will feed directly intodiscussions scheduled to take place during the conference.

The event has already confirmed participation from more than 100countries and 600 organisations, with a range of delegates from technical,engineering, strategic and commercial backgrounds set to be inattendance.

More than 435 speakers have been confirmed, with speakers set toinclude Total SA CEO Patrick Pouyanné, GDF Suez chairman and CEOGérard Mestrallet, and Sheikh Khalid Khalifa Al Thani, CEO of Qatargas. Thenumber of abstracts received for the 26th edition of WGC has reachedrecord numbers, more than doubling the number gathered for the 2012edition.

Speaking about the upcoming conference, IGU national organisingcommittee chairman Daniel Paccoud commented, “The dynamic and

resilient city of Paris is a highly appropriate venue for discussions on thefuture of gas and of world energy. Our visitors from across the globe willsee practical demonstrations of tomorrow’s energy today, with showcasecutting-edge technological and commercial advances, a dedicated pavilionon Natural Gas for Transportation, and live product demonstrations andlaunches.”

The event will take place at Paris Expo Porte de Versailles in the Frenchcapital from 1-5 June 2015.

Local and global energy challenges to be tackled at 26th edition of World Gas Conference

Executives’ Calendar 2015MAY 2015

17-19 Managing Talent in Oil & Gas ABU DHABI www.managing-talent.net

19-21 CCPS-MEPSC ABU DHABI www.mepsc.org

19-21 EPC Contracts in Oil & Gas DUBAI www.cwcschool.com

24-26 GCC Environment Forum RIYADH www.gccenvironmentforum.com

26-27 ISA Automation Conference & Exhibition ABU DHABI www.isa-emea-expo.org

26-28 WPC Leadership Conference TROMSØ www.wpcleadership.com

JUNE 2015

1-3 IRPC ABU DHABI www.cvent.com

1-5 World Gas Conference PARIS www.wgc2015.org

2-5 Caspian Oil & Gas Exhibition BAKU www.caspianoilgas.az

8-10 Iraq Petroleum 2015 LONDON www.cwciraqpetroleum.com

23-24 FLNG World Congress SINGAPORE www.flngworldcongress.com

SEPTEMBER 2015

8-11 Offshore Europe ABERDEEN www.offshore-europe.co.uk

15-17 MEPEC MANAMA www.mepec.org

OCTOBER 2015

11-14 KOGS KUWAIT www.kogs2015.com

18-20 Plastics & Petrochem Arabia DAMMAM plaschem.4p-arabia.com

19-21 Negotiation in Oil & Gas DOHA www.cwcschool.com

27-30 Gastech SINGAPORE www.gastechsingapore.com

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

CALENDAR 2015

WGC will see discussions and debates take place on the role of gaswithin the global energy mix (Photo: VladSV)



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AUTOMATION PROFESSIONALS, EQUIPMENTmanufacturers and service providers will be onhand in Abu Dhabi in May for the ISAAutomation Conference and Exhibition Europe,Middle East and Africa.

Jointly organised by the InternationalSociety Of Automation (ISA) and DMS Global,the event will include a two-day technicalconference and supporting exhibition, with afocus on the latest measurement and controltechnologies.

DMS Global president and CEO MohammedLoch said, “There are many mega events in theenergy sector that are too general. The eventsdivision of DMS Global aims to facilitate the

gathering of industry leaders and experts forspecific communities to give them more focusto achieve their objectives.”

In attendance at the event, which will takeplace in Abu Dhabi on 26-27 May 2015, will be amix of regional and international experts, whowill share their experiences, visions andsolutions to the challenges of measurement andcontrol in complex industrial environments.

Timothy Feldman, director of global productsand services at ISA, remarked, “Thisconference will be a unique opportunity forlocal professionals involved in the automationfield to learn, exchange experiences andnetwork with peers from all over the world.”

The ISA Automation Conference and Exhibition Europe, Middle East andAfrica will take place in Abu Dhabi in May 2015 (Photo: Ferveez Mohideen)

Abu Dhabi set for automation trade show and conference

A NUMBER OF leading CEOs based in Norwayhave offered their support to the World PetroleumCouncil’s (WPC) first sustainability-focussed event.

Set to take place in the Norwegian city ofTromsø on 26-28 May 2015, the WPC LeadershipConference on Responsibility, Cooperation andSustainability has garnered the official support ofStatoil acting president and CEO Eldar Sætre,DNV-GL group president and CEO Henrik O.Madsen, Norsk Industri CEO Stein Lier-Hansen andNorwegian Shipowners’ Association CEO SturlaHenrikson.

In a letter of support signed by all four industryleaders, the CEOs said, “We are convinced of thenecessity and value of hosting such an event. Asan industry, it will help us to provide sustainableenergy solutions for our future. That is why wehave committed to sponsoring this event and haveformalised this support to the WPC.”

Approximately 1,000 participants from the oiland gas industry are expected to attend the event,which will focus on technologies and practicesthat can be utilised to minimise environmentalimpacts and risks.

WPC leadership eventwins CEOs’ support


Event News


S03 ORME 3 2015 - E&P_Layout 1 16/04/2015 14:05 Page 9

SAUDI ARABIA'S OIL production hit arecord high in March 2015 with a total of10.3mn bpd, surpassing its former peak of10.2mn bpd in August 2013.The surge in production as well as a

rise in USA's crude stockpiles led to a fallof six per cent in oil prices, said Reuters. Saudi Arabia oil minister Ali al-Naimi

said that the country will keep producingaround 10mn bpd in near future. “Thechallenge is to restore the supply-demandbalance and reach price stability. Thisrequires the cooperation of non-OPECmajor producers, just as it did in the 1998-1999 crisis.”

However, some non-OPEC majorproducing countries said that they wereunable or unwilling to participate inproduction cuts. Hence, OPEC decided tomaintain production levels and not to giveup its market share in favour of others.The Saudi production figure also

reflects some additional domestic refinerydemand. Yanbu Aramco Sinopec Refining,a joint venture between oil firm SaudiAramco and China's Sinopec, has beensteadily ramping up production this yearand reached its full capacity in February2015. In addition, demand was increased

partly by deep discounts on Saudi Arabianexports in March as the Kingdom offeredAsian customers the deepest discounts onits flagship Arab Light crude in at least 12years, according to Reuters. Saudi Aramcohas raised its prices for the following twomonths, putting May at the highest levelsince last year. US imports of SaudiArabian crude rose to more than 950,000bpd over the four weeks to March 27 –the highest since last September. According to Joint Oil Data Initiative

database, Saudi Arabian refineries ran arecord 2.2mn bpd of crude in December2014, up from 1.5mn bpd in 2012.

DRAGON OIL HAS set up a committee to oversee and assess the takeover bid made by EmiratesNational Oil Company (ENOC).The committee will be chaired by Thor Haugnaess, Dragon Oil's senior independent non-executive

director who will chair the commitee, and Ahmad Al Muhairbi, Saeed Al Mazrooei and Justin Crowley.Earlier, Emirates National Oil Company (ENOC) had approached oil and gas explorer Dragon Oil for

a takeover. ENOC owns 54 per cent of Dragon Oil and has made a bid to take over the latter for anundisclosed amount, stated Dragon Oil in a statement. Headquartered in Dubai, Dragon Oil has exploration assets in MENA and Central Asia. ENOC, also

based in Dubai, develops donwstreamand upstream assets across the oiland gas industry. This marks the second approach

made by ENOC to take over Dragon Oil,after it failed with a previous takeoverattempt in 2009. At the time, ENOCoffered 65 cents-a-share, whichvalued Dragon at US$1.6bn, but failedto garner enough shareholder support.However, Goldman Sachs analyst RuthBrooker has described Dragon Oil’sCheleken field as a strategic asset,which could garner interest.

RUSSIAN OIL PRODUCER Gazprom Neft hasreceived the first batch of oil from the Badraoilfield. The company, which operates Iraq'sBadra oilfield, has confirmed that it received the fKirkuk grade oil from the Iraqi government. Gazprom Neft’s buyer is an Asian company

and the crude oil is being delivered on FOB (FreeOn Board - delivery to the port and loading onthe buyer’s ship) terms. The crude oil has beengiven to the Russian company in compensationfor its investment in the development of theBadra oilfield. About 70,000 tonnes of oil wasdelivered in the first batch from the Iraqi statecorporation SOMO (State Oil Marketing Company) in the Turkish port of Ceyhan.The Badra oilfield has been producing oil in a stable manner, which has enabled investors

to receive compensation for costs incurred by obtaining oil produced on the field. Aconsortium comprising Gazprom Neft (the operator), Kogas (South Korea), Petronas (Malaysia)and TPAO (Turkey) will claim their respective shares of oil from the Badra oilfield.

Saudi Arabia achieves record-high oil productionof 10.3mn bpd

KUWAIT ENERGY AND the Egyptian General Petroleum Corporation (EGPC) haveannounced that the exploration well ASH-1ST on the Abu Sennan concession, located inthe Western Desert onshore Egypt, has discovered hydrocarbons in the Alam El Bueib(Early Cretaceous) Formation.Tests of the Alam El Bueib formation achieved flow rates of 3,900 bbls per day of

condensate with 46 API and 3.1 MMSCF/D of gas on choke 64/64. This is the firstdiscovery from the deep horizons at the Abu Sennan area with a good flow rate.Kuwait Energy holds a 50 per cent revenue interest and is the operator in the Abu

Sennan development lease. Kuwait Energy CEO Sara Akbar said, “I am delighted to announce this important

discovery at the Abu Sennan block, which will add big value to the asset and even theneighbouring assets. This discovery adds a new producing horizon to the stream and opensa window for deeper exploration targets.” The Abu Sennan concession has 12 producingwells, producing from different formations.

Gazprom Neft receives first batch of oil fromIraq's Badra oilfield

Kuwait Energy and EGPC discover hydrocarbons onshore Egypt

Dragon Oil sets up committee to oversee ENOC takeover bid

Gazprom Neft is one among five buyers of oilfrom the Badra oilfield

E&P

Ali al-Naimi, minister of petroleum andmineral resources in Saudi Arabia

Dragon Oil has exploration assetsin MENA and Central Asia



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CORROSION INHIBITORS | LUBRICANTS

GLYCOL MC | BIOCIDES | DEFOAMERS

BUTYL GLYCOL | XYLENE

CALCIUM CHLORIDE | TEG

EMULSIFIER | WETTING AGENT

POTASSIUM CHLORIDE

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BENTONITE | LOSS CIRCULATION MATERIAL

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OIL AND GASdrilling could returnto 2014 levels bynext year, accordingto energy researchgroup WoodMackenzie. In itsreport Upstreamcost deflation: howmuch could costs ofexploration fall?,Wood Mackenzierevealed thatexplorationdeflation willaverage 33 per cent by 2016. Despite oil and gas companies slashing theirexploration budgets by an average of 30 per cent to adjust to lower oilprices, efforts to address cost inflation will largely cushion the blow.The deflation would be comprised of a 19 per cent fall in like-for-like

costs, a five per cent saving from the simplification of activities, a further fiveper cent saving from efficiency improvements and a final four per cent fromthe strength of the US dollar.Andrew Latham, vice-president for exploration research at Wood

Mackenzie, said that the deflation could allow any companies that holdspending flat into 2016 to fund 50 per cent more exploration, versus 2014.

Oil and gas exploration costs to fall 33 percent by 2016, says Wood Mackenzie

The deflation could allow companies that holdspending, to fund more exploration activities next year

LIBYAN STATE FIRMArabian Gulf Oil Company(AGOCO) is producing317,000 barrels per day(bpd) – the highest levelin the last two years.Libya is currentlyproducing around 600,000barrels of crude per day,less than half the 1.6mnbpd it produced before the fall of Muammar Gaddafi in 2011.Despite several oil ports and major fields being closed, two ofthe biggest ports, Ras Lanuf and Es Sider, with a combinedcapacity of 600,000 bpd, may open soon, officials said. Libyan prime minister Abdullah al-Thinni said that thegovernment would run its own oil sales and deposit revenuesabroad in a bid to divert proceeds away from a rival self-declaredadministration in Tripoli. But the Tripoli-based National OilCompany (NOC) still handles all oil sales and revenues, andAGOCO – although located in eastern Libya – is an NOCsubsidiary. NOC has tried to stay out of the conflict between therival governments, said Reuters.

Libya is one of the major producers of oilamong the MENA countries

Libyan state firm producing 317,000barrels of oil a day

Issue 3 2015 oilreview.me 11

E&P


“AFTER FOUR YEARS of flatsupply we are entering aperiod of supply growth,” saidAndrew Walker, BG Group

vice president of Global LNG. “2014 markedthe start-up of a new wave of supply fromAustralia, which will be joined by the firstvolumes from the US Gulf of Mexico aroundthe end of 2015. This new supply will beabsorbed by continued growth in Asiandemand, together with the creation of up tosix new markets1 in 2015, furtherdiversifying the LNG trade and opening upnew sales opportunities.

“While we see good growth in LNGimports into Asia in 2015, key influences thatwill affect demand include the rate of returnof Japanese nuclear power plants, economicgrowth rates for China and South Korea, aswell as when the new markets beginimporting. Over the longer term, BG Groupcontinues to expect LNG trade worldwide toexceed 400mn tonnes (mt) per year by2025, representing an annual growth rate ofaround 5 per cent – almost twice the rate ofexpected growth in global gasconsumption.”

Although the industry expects five newliquefaction trains and one floating LNG(FLNG) production facility to start up in 2015,

Dr Walker noted that “these will be towardsthe end of the year limiting incrementalsupply in 2015 to around 7mt. How themarket responds to the growing volumes in2016 and 2017 will be a key factor to watch.We expect the LNG market to become morevolatile over the next few years as itresponds to 'lumpy' supply and market-sideadditions plus exogenous supply anddemand factors.”

Dr Walker explained that “we see fewerfinal investment decisions being taken in2015 than previously expected, which willmean less LNG is available to the market atthe end of the decade. This uncertaintybrings into sharper focus the attractivenessof flexible supply portfolios which canrespond to changing market dynamics.”

In the longer term, LNG trading isforecast to grow at a compound annual

growth rate of 5 per cent to 2025, twice asfast as for gas overall. New supply currentlyunder construction, predominantly inAustralia and the USA, will raise LNG supplyto 350mtpa (delivered) by 2020.

Flat deliveries in 2014LNG deliveries in 2014 were an estimated243mt, effectively flat for the third yearrunning. Despite new supply from PapuaNew Guinea and an improved performancefrom some existing plants, this was offsetby reduced performance from some existingplants.

A first cargo was loaded from train one ofthe QCLNG project in Eastern Australia, thefirst large-scale coal-bed methane to LNGproject. However, as start-up was just priorto year-end, the project did not have asignificant impact on 2014 volumes. Oneexpansion train at Arzew, Algeria startedproduction.

Improved year-on-year performance wasobserved across a number of plants, but, inparticular, from Nigeria and Algeria, whichproduced 2.6mt and 1.9mt more LNG than in2013, respectively. In the case of Nigeria,2013 production was interrupted by a marineaccess dispute, while Algeria increasedproduction year on year in 2014 for the firsttime since 2007 based on its new train anda reduction in pipeline exports.

The increase in supply was balanced by areduction in exports from a number ofsuppliers, in particular Egypt, where growingdomestic demand continued to impactexports and Qatar, which likely undertookadditional maintenance in 2014. Finally,Angola LNG was offline from April onwardsto allow for major repairs.

Imports grew and diversifiedAsia remained the dominant importingregion, importing a record 182mt in 2014.Asian growth rates slowed compared torecent years, however, as there werepockets of demand weakness, in particular

LNG trading is forecast to grow at a compound annualgrowth rate of around 5 per cent to 2025 (photo: Lens Envy)

The LNG market will be marked by increasing volatility in 2015 as new'waves' of supply start to add volume together with new markets opening up,according to BG Group’s Global LNG Market Outlook 2015.

Global LNG - supply growth and

market diversification

How the marketresponds to the growingvolumes in 2016 and 2017will be a key factor to watch”


LNG

S04 ORME 3 2015 - LNG_Layout 1 16/04/2015 14:06 Page 12


from South Korea and China, due toseasonal and 'structural' factors.

The market side of the industrycontinued to grow and diversify. Last yearsaw the start-up of six new importterminals representing a total 23mtpa ofimport capacity. Lithunia started importingLNG. Other new terminals were located inAsia; Japan (1), South Korea (1), Indonesia(1) and China (2). China now has 13terminals in operation with a further threeunder construction.

With all nuclear capacity offline in 2014,Japan received record LNG imports at89mt, a slight increase on 2013. However,as indicated last year, with LNG importcapacity and gas-fired power capacity likelyboth close to seasonal limits, growth wasexpected to be limited in this market.

The second largest importer was SouthKorea at 38mt, followed by China andIndia, the third and fourth largest importersat 20mt and 15mt, respectively. Incombination, the four markets representedjust under 70 per cent of all imports. Asiarepresented 75 per cent of all imports.

The ongoing drought in Brazil meantthat it was the highest growing market in2014, at 25 per cent year-on-year, followedby the UK, (which had a stronger summer,at 17 per cent year-on-year), just ahead ofChina and India.

Once again growth in Asian, MiddleEastern and Latin American importsoutpaced growth in supply, although thedifference was more modest in comparisonto recent years. Asian, Middle Eastern andLatin American imports grew by 6mt, whilesupply grew by 3.5mt. In particular, lower-than-expected growth was seen in China,while South Korean demand was 7 percent lower year-on-year.

Although import volumes into Asiagrew, the competition for spot cargoeslikely decreased, leading to a reduction inspot prices over the summer. Falling oilprices at the end of the year furtherpressured spot prices downwards. Long-term contracts, which are generallyindexed to oil in Asia, but are laggedagainst oil movements, will see more of animpact in 2015. n

1Egypt, Jordan, Pakistan, Philippines, Poland and Uruguay.

See www.bg-group.com/LNGmarketoutlook

The market side ofthe industry continued togrow and diversify”


LNG


S05 ORME 3 2015 - Gas_Layout 1 16/04/2015 14:11 Page 15

INTERNATIONAL INVESTORS PLEDGEDbillions of dollars of investment in Egypt’senergy sector at the Economic andDevelopment Conference held in Sharm El-Sheikh in March, with upstream gasdevelopment featuring strongly. This willhelp to address Egypt’s energy crisisresulting from declining gas production andcontinued growth in energy demand. BP signed a Memorandum of

Commencement of BP New Projects inEgypt, with investments estimated to be upto US$12bn to include the execution of theWest Nile Delta project, exploration andresource appraisal activities, East Nile Deltaoperations and Gulf of Suez operations.The West Nile Delta (WND) Project is a

particularly significant project. Themultinational oil and gas giant hasestimated there to be five tcf of gas and 55mmbbls of condensates in the WND, whichit expects to produce at a rate of up to 1.2bcf/d. If the predicted figures are accurate,the project will equate to around 25 percent of Egypt’s current gas production. BPsaid they expect production to commencein 2017, and added that all gas produced byWND will be fed directly into Egypt’snational grid, helping to meet the anticipatedcontinued growth in energy demand.Other commitments made at the

conference included ENI’s frameworkagreement worth around US$5bn, todevelop 200mn barrels of oil and 1.3 tcf gasover the next four years, while BGcommitted US$4bn for the continuingdevelopment of the West Delta DeepMarine (WDDM) concession (to includedrilling additional well workovers to improverecovery), as well as for the pursuit offurther gas projects.Egypt also signed a MOU with Cyprus

to strengthen co-operation in oil and gas andto examine potential pipeline and onshorefacilities options for transporting natural gasfrom Cyprus’s Aphrodite field to Egypt.Investors have been encouraged by

Egypt’s progress in reducing energysubsidies and repaying arrears tointernational energy companies.

EGYPT IS SET to commence LNG imports in April 2015, in the face of growing domestic demand and adecline in production, despite having the third largest gas reserves in Africa. The country currentlyhas a gas supply deficit of 700 mmcfd, according to Egypt’s Ministry of Petroleum, and has turnedfrom a net gas exporter to gas importer. A tender has been awarded to four international companiesfor the supply of 75 shipments of LNG over two years, in addition to contracts with Russia’s Gazpromfor 35 LNG shipments over five years, and Algeria’s Sonatrach for 6 cargoes this year. Furthernegotiations with international companies are reported to be underway. Egypt has signed a five yearcharter deal with Norway’s Hӧegh for the FRSU Gallant (floating storage and regasification unit) to belocated at Ain Sukhna port on the Red Sea. Meanwhile, Shell is set to commence deliveries of 150 mmcfd of LNG to Jordan from July 2015,

which will cover around 25 percent of the country’s powergeneration needs. The deliverieswill be made to the LNG terminalcurrently under construction atthe port of Aqaba, and will ensuresecurity of supply following thesabotage of Jordan’s mainpipeline from Egypt which haltedthe country’s imports of Egyptiangas. The LNG will provide a morecost effective and cleaneralternative to the diesel and heavyfuel oil which Jordan currently hasto rely upon for power generationto meet the rapidly increasingdemand for energy.

PRODUCTION OF LNG will show dramatic growth over the rest of this decade, according toBP’s Energy Outlook 2035, which gives an insight into the most likely shape of the futureenergy landscape over the next 20 years. By 2035 LNG will have overtaken pipelines as thedominant form of traded gas, predicts BP, with increasing trade across regions as demand forgas grows. This can be expected to lead to more connected and integrated gas markets andprices across the world, and is also likely to provide significantly greater diversity in gassupplies to consuming regions such as Europe and China.Overall, LNG supply grows by 48 bcf/d by 2035 predicts BP, with Australia (16 bcf/d) and

the USA (14 bcf/d) each contributing around a third of that increase. African LNG supply, ledby East Africa, increases by 12 bcf/d. As a result, Qatar, which has the largest market sharetoday, is overtaken by Australia (24 per cent share of the market by 2035), Africa (21 percent), and the USA (18 per cent). Asia is the largest destination for LNG, with its share in global LNG demand remaining

above 70 per cent. By 2035, China becomes the second largest LNG importer (12 bcf/d), justbehind Japan (13 bcf/d). Europe’s share of global LNG imports rises from 16 to 19 per centbetween 2013 and 2035, with an additional 10 bcf/d of LNG demand.

Investment pledged for Egyptgas development

BP predicts LNG growth spurt

Egypt and Jordan to become LNG importers

LNG will overtake pipelines as thedominant form of traded gas (photo: BP)

Gas

BG is a major investor inEgypt’s gas sector (photo: BG)

Egypt and Jordan will commenceLNG imports in 2015 (photo: Shell)



ENERGY GIANT BP has announced that despite the cut in itscapital expenditure this year, it will complete the exploration of 16wells in Oman’s Khazzan tight gas field and will have at least ninerigs operational by the end of 2015.BP Oman chief operating officer Dave Campbell said that the

reduction in global capital expenditure, in a bid to counter theimpact of plunging oil prices and fall in profits, will not affect theongoing Khazzan tight gas field project.“The Khazzan project is on track, on budget and on schedule.

The company is also ready to increase drilling activity in thetechnically challenging natural gas field. Five rigs are operational atthe moment and several rigs will be added soon,” he noted.The Khazzan tight gas field project represents the first phase in

the development of one of the Middle East region’s largestunconventional tight gas accumulations, which has the potential tobe a major new source of gas supply for Oman for many decades.The project involves drilling of around 300 wells over the next

15 years and will achieve production of around 28.32mn cu/m ofgas per day, equivalent to an increase of around one-third ofOman’s total daily domestic gas supply.

BP to continue with Khazzan project

The project involves the drilling ofaround 300 wells over the next 15 years

GE OIL & GAS has signed a long-term service agreement withADGAS to further strengthen gas productivity and maximise thereliability and efficiency of its plant in Abu Dhabi.

ADGAS CEO Fahim Kazim said, “We are committed to furtherenhance our capabilities to achieve operational excellence and toincrease our productivity goals.”

GE Oil & Gas will support full maintenance, repair and servicesfor GE Frame 5 2D gas turbines as well as associated centrifugalcompressors.

GE Oil & Gas CEO for Middle East, North Africa and TurkeyRami Qasem added, “We thank our partner ADGAS for committingto this new long-term service agreement that further supports theseamless operations of the company’s plant.”

GE Oil & Gas will also provide training for a number of ADGASengineers that will further build local capabilities, noted Qasem.

The signing ceremony

GE Oil & Gas signs deal with ADGAS


Gas

photo: Ben Grasser


CHANGE IS ALL around for oilexporters these days, with thereality of depressed oil pricesthroughout 2015 and perhaps most

of 2016 starting to sink in. Globaloverproduction of crude stood between 1.5-1.75mn bpd in March according to theInternational Energy Agency (IEA), andinventories were starting to run out ofstorage space. Needless to say, theformidable mountain of global crude stockswhich is forming will take considerable timeto erode, and the point at which supply anddemand balance remains elusive at the timeof writing.

Azerbaijan, a country highly dependenton oil and gas exports, has not been sparedthe consequences of the recent declines inoil prices. Having struggled in vain to defendthe US dollar peg of its currency, the manat,the Azeri central bank had to abandon it inFebruary. Virtually all the currencies of itsneighbouring trading partners had weakenedduring 2014, but unlike Turkey, Georgia andRussia, Azerbaijan’s economy was longregarded to be on a sounder footing,notwithstanding its reliance on oil revenues.

Yet, within the space of a few days in mid-February, the manat depreciated by around35 per cent.

These more general woes, caused by theglobal oil glut, do serve to drive home astark message in Azerbaijan. The last fouryears brought a wake up call for the countryand its leadership regarding the maturity ofits oil industry. Azerbaijan’s oil wealth in thedecades following the fall of the SovietUnion has to a very high degree been builtaround a handful of oilfields. In particular, the1994 BP-led project for the development ofthe Azeri-Cirag-Guneshli (ACG) field complexset the scene for the Azeri oil boom. Theoffshore fields saw production rise gradually

from between 1997 to 2006, with someadditional later developments taking outputto over 820,000 bpd in 2010, around 80 percent of the country’s total crude productionthat year. Since then production has fallensharply, however. ACG production declinedto 664,000 bpd in 2012 and dropped furtherto 655,000 bpd in 2013.

Last year operator BP had more successin arresting decline (BP holds a 35.83 percent stake and is partnered by Azerbaijan’sstate-owned NOC SOCAR with 11.57 percent, Chevron 11.3 per cent, Inpex 11 percent, Statoil 8.6 per cent, ExxonMobil 8 percent, TPAO 6.7 per cent, Itochu 4.3 per centand ONGC Videsh 2.7 per cent).Nevertheless, output fell further in 2014, toabout 638,000 bpd, even despite a new90,000 bpd production stream from theWest Chirag platform reaching plateauproduction.

Hence, the future story of ACG will beabout managing mature decline, rather thangrowth. Given the country’s reliance on ACGfor its total oil production, declinemanagement is now the name of the gamefor Azerbaijan’s oil industry as a whole. Sinceits peak of around just one million bpd in2010, Azeri total crude production has fallento 865,000 bpd in 2013 and 841,000 bpd in2014. Production is expected by SOCAR tocome in at around 806,000 bpd this year.

Azerbaijan remains reliant on the mature ACGoilfield complex (photo: BP)

Azerbaijan is reevaluating and readjusting its oil and gasdevelopment and marketing strategies, says Samuel Ciszuk.

Developing a new

Roadmap

Decline managementis now the name of thegame for Azerbaijan’s oilindustry as a whole”


Analysis

S06 ORME 3 2015 - Analysis 01_Layout 1 16/04/2015 14:08 Page 18


Focussing on gasAs a consequence of the continued relianceon the mature ACG field complex and thegeneral industry pessimism over thecountry’s remaining oil exploration potential,Azerbaijan has for some years beenfocussing on its gas prospects. Largediscoveries have been made, first andforemost the Shah Deniz gas field, butfurther exploration potential remains. Onlyrecently, Total discovered the large Absherongas field in the Caspian Sea, while BP hasbeen working on ways to monetise thecomplex, high-pressure, high temperature,Shafag-Asiman gas and condensatestructure.

Gas from the Shah Deniz second phasedevelopment project had largely beencontracted to buyers by mid-2014, somethingwhich today looks particularly fortuitous.Azerbaijan’s promising gas future does todayrun a very high risk of being delayed, or insome cases even derailed, by falling prices.Projects are relatively expensive and requirelarge investments in transport infrastructure,to reach markets far removed from theCaspian region. This brings the issue ofpipeline geopolitics, never far removed fromthe Azeri oil and gas story, back to the fore.With Shah Deniz phase II gas contractsbeing secured, a deal was also struck to buildnew pipeline capacity through Turkey toEurope. Russia’s reversal of its plans toconstruct the South Stream gas pipelineunder the Black Sea to Bulgaria late last yearand instead look to develop more pipelinecapacity to Turkey and onwards to Europe,has suddenly created a competing alternativefor many of the Turkish and Balkan gasmarkets. A situation where key clients alongthe trans-Anatolian pipeline route start toreconsider their options can not be ruled out,given that both projects remain in their earlydays.

A balanced approachTaken together with the increased Russiangeopolitical assertiveness against FSU statesin the past year, as well as Azerbaijan’slocation close to Russia’s unruly southern

Caucasian territories, it is clear that the Azerimarket strategy has to be carefully weighedagainst its full strategic position.

Azerbaijan has previously excelled atbalancing its oil and gas marketing, as wellas its political considerations. It is interestingto note that in early 2014, the countryreversed previously stated policies of backingout of crude sales through Russia’sNovorossiysk port on the Black Sea. InsteadSOCAR increased Black Sea sales by afurther 30 per cent this year, targeting salesof around 34,000 bpd of crude through thatroute. It is a minuscule volume compared toAzerbaijan’s total exports, nevertheless itsends a signal internationally that the countrywants to maintain diversified routes. Themessage is particularly strong vis-a-vis itsCaspian Sea neighbours, suggestingAzerbaijan is not entirely stepping away frombeing a competitor over the allocation ofRussian company Transneft’s pipelinecapacity. It also sends a strong signal to theBaku-Tbilisi-Ceyhan pipeline consortium, thatAzerbaijan maintains other channels despitethe 1.2mn bpd crude pipeline being deeplyunderutilised.

The Iran factorCarving out its own oil and gas exportchannels to Europe has been a carefullyfought battle for the comparatively smallCaucasian nation and one which, given itsgas-focussed future, will continue to evolve.Maintaining positive commercial and politicalrelations with Russia could be as importantas ever these days, while the need forguarding its marketing and transportsovereignty also seems to be peaking.Change is however not only coming from

renewed Russian assertiveness these days,but perhaps in the longer run also from itssouthern neighbour. In the aftermath of theoutline agreement reached between theP5+1 coalition of Western states and Iranover the latter’s nuclear programme inLausanne in early April, there is now morecause for optimism for a thorough accordbeing struck by mid-year. A fundamentalchange in Iran’s relations with the West, aswell as with Azerbaijan, can now be hopedfor, even if it is very early days.

While it will take time before sanctionsare lifted and Iran can potentially startdrawing upstream investment back into itshydrocarbon industry, there could be severalpositive effects on Azerbaijan fromdiminishing Iranian isolation.

Iranian interest in developing itsdeepwater section of the Caspian, couldfoster political understanding about maritimeborder delineation between the countries.That would unlock both countries’ borderarea for exploration. Today this area of Azeriwaters is lagging in terms of collectedseismic data and drilled wells. Over theconsiderably longer term, there could besynergies to explore between the countriesregarding gas export routes to Europe, oreven to Iranian liquefaction projects on theGulf. Given Azerbaijan’s oil maturity, newexport links to the Gulf are unlikely to figureon the map in the distant future, however aquicker short-term solution could well bedusting off old plans for crude swaps. Thelion’s share of Iran’s oil and product demandis in its populous north, comparatively closeto Azerbaijan’s oil production, while Iran’sown production is located almost entirely inits southwest.

This is an optimistic scenario which wouldrequire significant changes in the relationshipbetween Iran and the West in the comingyears; however it would allow Azerbaijan tostrengthen its bargaining positionconsiderably regarding pipeline links.

In the meantime, Azerbaijan will have toweather low prices and do what it can tomake sure gas investment and complex EORwork on its oilfields do not begin to lag. n

Azerbaijan has increased its Black Sea sales

There could beseveral positive effects onAzerbaijan from diminishingIranian isolation”


Analysis

Photo: BestPhotoPlus



DESPITE DRAMATIC FALLS in the oilprice, Saudi Arabia and the Gulfcountries continue to invest in theoil and gas sector to maintain

production, taking a long-term view.The fall in the oil price, however, does put

the industry under enormous pressure tocontrol costs. Organisations in this regionthat have grown up in an environment ofrising energy prices must now operate onlower margins. That means re-examiningtheir business assumptions and investing forlong-term sustainability. The bad news isthat changes that are long overdue willundoubtedly face some cultural resistance.

For a start, there is significant room forefficiency improvements in ongoing projects,with better information systems andcoordination of activities. Companies couldalso improve efficiencies in assetmaintenance and rein in their compliancecosts. Such measures have not necessarilybeen a huge priority for the energy industry– at least not until recently.

Companies that are prepared to invest inthe value chain – finding ways to worksmarter and more cost-efficiently – will beable to improve margins. Others, many ofthem service companies that subcontract tothe major producers, may not survive to seeenergy prices bounce back, however longthat may turn out to be.

Information technology systems thatprovide real-time visibility into projects,maintenance and compliance are key tostreamlining operations across the valuechain. In this respect, however, the industryis coming off a very low base with (in somecases) minimal investments in technology.

Part of the issue is structural – the industrytypically operates in a ‘siloed’ fashion withdifferent business units and contractingfirms operating independently.

Another issue is cultural. As a supplierthat specialises in providing visibility andcontrol over finance and operations for theoil and gas industry globally, one of IFS’s keyvalue additions is integrating informationacross all aspects of the business.

Technology is keyThose changes start with technologyimprovements to break down informationsilos that make it difficult to operateefficiently, such as:• Real-time visibility – You cannot improve

what you cannot measure. Capturing andconsolidating financial and operationalinformation into a single system in realtime has to be the first priority. Once thenumbers are in front of you, it is not hardto identify how processes could be mademore efficient. Of course, if theinformation is not real-time, then whatyou are looking at has already happened,so it may be too late to do anything aboutit. That is why capturing information atthe source and communicating it asthings happen is so important.

• Instant communications – Stories aboutworkers hanging around doing nothingwhile they wait for landholders to turn upare common in the oil and gas industry.While hard to imagine in a world ofinstant communications, data networksin remote locations may not be availableor as reliable as they are in urban areas.Some investments may be needed toensure that workers remain in constantcommunication. It is not difficult to tapinto a back-up satellite link, for example,and distribute it to mobile devices.

• Supplier portals – Just because differentcompanies do the work does not meanthey cannot share information and co-operate. Oil and gas producers canimplement supplier portals so thatInformation technology systems are key to streamlining operations (Photo: Shell)

Companies that can find ways to work smarter and more cost-efficientlywill be the survivors in the current low oil price scenario, says IanFleming, managing director, IFS Middle East, Africa and South Asia.

Streamlining the

value chain

There is significantroom for efficiencyimprovements in ongoingprojects”


Analysis


services companies can see all theinformation they need to do the jobefficiently and co-ordinate with othersuppliers. Suppliers can also do jobreporting on-the-spot via mobile apps sothat the producer has real-time visibilityof activities.

• Mobile apps – While many workers in theindustry do not have computerexperience, this does not mean theycannot benefit from informationtechnology. With modern enterprisesoftware, it is now a simple matter toaccess information and report backthrough mobile apps running on a phone,tablet or phablet. Getting people to usethem may be more of a challenge.Companies may need to engage closelywith their workforces to make appsconsistent and easy to use – giving themthe right information for each job, forexample – to make sure that newsystems are successfully adopted.

• Executive dashboards – While producersand service suppliers are aware ofinefficiencies in their operations, manywould currently struggle to quantify themor pinpoint exactly when they are

happening. Establishing simple metricsand alerts around performance, cost andcompliance, and monitoring them in real-time via graphical dashboards thatresponsible managers can see is a greatway to get started.

• Monitor compliance – This is a key areawhere information systems cancontribute to the long-term sustainabilityof the oil and gas industry. Creating afree flow of information betweenconcerned parties like landholders andgovernment is a valuable tool forestablishing and maintaining trust. That inturn lessens the likelihood that morerestrictive or onerous compliancerequirements will be imposed. Enterpriseinformation systems can also automatethe reporting process and managecommunications with different groups toreduce compliance costs.

Despite the industry’s strongmomentum, 2015 may still be a verychallenging year - but also a greatopportunity for companies that are willingto invest in their own and the industry’sfuture. n

While many workersdo not have computerexperience, this does notmean they cannot benefitfrom information technology“

Ian Fleming, managing director, IFS Middle East,Africa and South Asia


Analysis


OMAN MAY NOT have the largestoil and gas fields in the MiddleEast - its 5.5 billion barrels ofcrude oil reserves are fairly paltry

compared to Saudi Arabia or Abu Dhabi -but it is certainly making the most of whatit does have. Much of that is down to the know-how

and sheer grit of Petroleum DevelopmentOman (PDO), the government’s upstreamjoint venture with Shell, and two otherminority investors, Total of France andPortugal’s Partex.By far Oman’s largest producer of oil

and gas, PDO is the name behind many ofthe country’s biggest and better-knownenergy projects.It accounts for about two thirds of the

country’s overall oil production and nearlyall of its natural gas supply, and is animportant exporter, especially to the Asianmarkets. China alone took almost 60 percent of Oman’s liquids exports in 2013,according to figures from the US EnergyInformation Administration.Collectively, the Sultanate’s national oil

company produces over 1 million barrels ofoil equivalent per day (boepd), oil and gascombined, every single year.

And it has made a name for itself inother ways too, by investing in newtechnology and bringing in additional skillsfor understanding more complex reservoirsystems that are not uncommon in thiscorner of the Gulf. In this way, it has been able to unlock

additional value from mature or decliningfields, a niche in which it has led the packin and around the Gulf region.

Enhanced oil recoveryIn fact, PDO’s heavy spending on enhancedoil recovery (EOR) has made up for anydwindling oil production of the past,effectively reversing the sustained declineof Oman’s energy industry of yesteryear.There are major EOR initiatives

underway at Marmul, Qarn Alam and

Oman has been investing in enhanced oilrecovery (EOR) techniques (Photo: Shell)

PDO is still driving Oman’s oil and gas production forwards despite current challengesfacing the industry, says Martin Clark.

In the

driving seat

PDO produces over 1million barrels of oilequivalent per day, oil andgas combined”


Analysis


Harweel, plus other pilot schemes at Fahud, Lekhwair, Nimr, al-Noor, Amin and Ghubar. Recent work at the established Nimr-C field, in the south of

Oman, is a case in point.This field, which first came on stream back in 1987, has achieved

a six-fold oil production increase in just four years, after suffering adrop because of falling reservoir pressure. PDO’s pioneering water flood project boosted oil output from

2,800 barrels per day (bpd) in 2010 to 17,600 bpd in 2014. It means43 million barrels of incremental oil reserves could be produced overthe life of the field, significant by any standards.

The turnaround was achieved by injecting large volumes of waterthrough the field to recover the highly viscous oil - a commonmethod for PDO, However, Oman has also pioneered other EORtechniques including solar, thermal, miscible gas and chemicalrecovery techniques.“In just under three years of implementing this project, we had

surpassed the 22-year-old peak in oil production of 13,800 bpd andare now producing six times as much oil as we did in 2010,” saidNimr cluster leader Junaid Mohiddin al-Ghulam.The US$600mn initiative has also enabled 15 other fields around

Nimr to re-open wells as the re-use of produced water has relievedpressure on the main production station. And it has opened new opportunities for potential development

too with the identification of up to 8 million barrels of incrementalreserves during the drilling of wells and other updates on the fieldstructure.

EOR has created new opportunities for potentialdevelopment (Photo: Michele Solmi/Flickr)

Oman has been able to grow its overalloil and gas production despite the limitedreserves”


Analysis


Production on the riseThe net result is that Oman has been ableto grow its overall oil and gas production inrecent years despite the limited reservesand any challenges posed by mature ormore technically demanding fields.Oman’s Oil Minister Mohammad bin

Hamad al-Rumhy said in January that thecountry's overall liquids production -combining PDO output and that of othersmaller producers - is expected to rise byabout 20,000 bpd in 2015.Total production hit 942,000 bpd in 2013,

according to BP’s Statistic Review of WorldEnergy 2014, a figure that includes crude oiland other liquids, including natural gasliquids (NGLs).The government has yet to release

official figures for last year, but Oman’scrude oil and condensates exportscombined in 2013 reached an estimated833,400 bpd, and PDO is certainlycontributing its fair share of that volume. In the first two months of this year, it

lifted its crude output above the plannedannual average for 2015, its managingdirector, Raoul Restucci, announcedrecently. The planned average is 570,000bpd, he said, although he declined at thetime to give actual current productionnumbers.It’s a similar tale in the gas sector as

well, where reserves, at around 0.9 trillioncubic metres (33.5 trillion cubic feet), arealso limited compared to some other Gulfstates. Likewise, this has not stopped Oman

making great progress in extraction, withprojects such as the flagship liquefiednatural gas (LNG) export plant. In 2013, Oman’s total gas production

tallied 30.9 billion cubic metres (bcm),

according to BP’s review, double that of adecade earlier, and, for the most part, asteady rise year-on-year.

Cost cuttingIt’s not all one way traffic though. Despitesuccess in the field, PDO is, like otherindustry players, now adjusting to a new,lower oil price environment, which means arenewed focus on pruning costs.With no intention of scaling back its

aggressive upstream plans, or halting itscostly EOR business, the company mustseek other ways to balance the books.It recently urged its major contractors to

identify areas to save money to tackle thesteep fall in oil prices.

The goal, according to Restucci, is not tobeat suppliers down on price, but to worktogether to identify greater synergies andpartnerships for better project economics. PDO’s total capital and operational spend

last year came to around US$6bn, butincluded high cost areas such as tight gas inKhulud and even a fracking programme, aswell as a shift towards greener technologies. And investment continues in new state-

of-the-art facilities to understand and managethe country’s hydrocarbon wealth even further.PDO recently inaugurated a ‘New Wells’

resource centre at its Mina al-Fahalheadquarters with the aim of sustaining

production and further improving drillingefficiency.While lower prices obviously means lower

revenues, PDO officials insist that thegroup’s projects, even the more technicallydemanding ones, remain both economic andon track.There are certainly no plans to put the

brakes on this year, according to Restucci.Speaking at an industry event late last year,he said all PDO projects were tested againstrobust ‘price collapse’ scenarios of a farmore serious magnitude.“There isn't an oil price we couldn't

envisage in the normal world that wouldaffect our programme,” he was quoted assaying by the Oman Daily Observer.

Longer term challengesAnd yet PDO’s oil and gas production growsever more complex and demanding. Its various thermal, miscible gas and

chemical EOR projects are expected toaccount for a third of the group’s productionby 2023 as conventional techniques becomeless effective.But with these same challenges facing

other countries and producers too, Oman isemerging as something of a global centre ofexcellence in this kind of innovation, such asin the area of solar-based EOR, for instance. This green and ground breaking technique

for boosting oil production carries obviousadvantages, not only by deploying greensolar power, but also in freeing up natural gasor other resources for use elsewhere such aspower generation, industrial use or waterdesalination.PDO boss Restucci has said that EOR is a

‘must do’ given the group’s portfolio ofmature assets and the Sultanate’s complexoil and gas reservoirs.Last year, the company awarded the next

phase of expansion targeting another 250million barrels of oil at Harweel, its first full-scale miscible gas injection project.With oil and gas export revenues

accounting for roughly two thirds of thegovernment's budget, PDO’s central positionin Oman’s economy is plain to see.The company estimates that for every

dollar it spends, it generates around sixdollars in value for the economy as a whole.It is already one of the country’s leading jobproviders and has taken its ‘Omanisation’responsibilities very seriously. Government officials have even tasked

the company to raise crude production to600,000 bpd in the coming years in a bid tofurther boost the nation’s finances.For the well-being of the country’s

finances, it is vital that this oil joint venturecontinues to succeed. Right now, in the face of all the technical

challenges thrown at it, and the deterioratingeconomic outlook for the industry, that’sprecisely what it is doing. n

PDO recently opened a resourcecentre to improve drilling efficiency(Photo: Nestor Galina/Flickr)

Oman is emerging assomething of a global centreof excellence in this kind ofinnovation”


Analysis



1 1 11:10 AM

MCKINSEY & CO (2011) definesbig data as “datasets whosesize is beyond the ability oftypical database software tools

to capture, store, manage and analyse.” It isoften associated with other terms such as‘industrial internet’ or ‘internet of things’,which describe the convergence ofadvanced computing, analytics, low-costdigital sensing and new levels ofconnectivity. This convergence promisesgreater levels of speed and efficiency foralmost every type of business and in everyindustry sector.There would be great benefit to the

transport industry as a whole, for example, ifthe different ‘data stacks’ across rail, aviationand roads were pulled together and openedup to the industry to create a shared view.In the UK, Transport for London (TfL) hascommitted to syndicating open data to thirdparties and to engaging developers to deliverand innovate using its open data. More than200 travel apps covering all modes oftransport are now available. Meanwhile, the Airport Collaborative

Decision Making (A-CDM) initiativedeveloped by Eurocontrol, a European-wideorganisation concerned with air trafficmanagement, enables airlines, groundhandlers, air traffic control and airport staffto share the latest and most accurateinformation about the status of inbound andoutbound flights for better-informed andmore consistent decision-making.

Changing ‘hearts and minds’TfL’s open data and A-CDM are just twoexamples of the types of initiativesdiscussed recently at the first in a series of‘Connected Data’ workshops being held bythe UK’s Royal Academy of Engineering.Security and anonymity of data, togetherwith analytics and connectivity were thethree common requirements to emergefrom the workshop, which was focused ontransportation. Further workshops are to be held during

2015 focussing on other sectors such asmanufacturing, healthcare and energy, aspart of the Royal Academy of Engineering’s‘Connecting Data Study’. Although data

models and whole data systems could beidentified as assets and managed andmaintained like any other type of asset, theRoyal Academy of Engineering believes thata change in ‘hearts and minds’ is necessaryto capitalise on the opportunities that betterdata and improved connectivity provides.One of the barriers to realising the

shared benefits of opening up data is thatindividual organisations perceive value andthus competitive advantage in theproprietary data they hold. Moreover, anyfirm that has invested time and money inrecording a large dataset is unlikely to makeit available if they perceive security to be anissue. Anonymity of data is a furtherconcern, as firms do not necessarily wantproprietary data to be made public,particularly if this includes negativeinformation.Nevertheless, connecting data to make it

more relevant and valuable presents asignificant opportunity. Cisco ConsultingServices values this opportunity, what it callsthe ‘Internet of Everything’ (IoE), at US$19trillion globally over the next decade. This is

A growing number of firms are gathering valuable businessintelligence from mining the vast volumes of data generated bytheir operational processes and systems. If such data were sharedsecurely industry-wide, the benefits could be much greater, saysWood Group Intetech’s Dr Liane Smith.

Big data: adding value through

sharing data


IT


TAKE YOUR NEXT PROJECT TO

Learn more at exterran.com

11:10 AM


based on two studies conducted by thecompany during 2013-14 that identifiedUS$4.6 trillion in potential bottom-line value(higher revenues and lower costs) for thepublic sector, and US$14.4 trillion for theprivate sector. In the latter, Cisco cites thefive main drivers of IoE as being:• Asset utilisation (US$2.5 trillion)• Employee productivity (US$2.5 trillion)• Supply chain and logistics (US$2.7 trillion)• Customer experience (US$3.7 trillion)• Innovation, including reducing time tomarket (US$3.0 trillion)

Building the business caseThe high-tech, telecom, and financialservices industries ranked highest inpotential IoE value in Cisco’s private sectorstudy, while the retail, energy, andmanufacturing sectors ranked lowest, butwere found to have the highest potentialupside for growth.Certainly, firms must be prepared to re-

evaluate their systems to find smarter waysof managing and extracting value from thedata they collect. The sheer volume of data,and the speed at which it is collected,makes it difficult and costly to store, while aquery can take hours if not days to rununless the right technology is in place. It isalso difficult to review and compare globaltrends if the required information isscattered across multiple assets, operationsand back-office functions, especially wherefirms have inflexible legacy systems and lackenterprise-wide analytic tools.In the oil and gas sector, the need for

near real-time data is driving huge

investment by operators to better connecttheir business units and support operationsintelligence initiatives. Some large operatorsare investing in central systems that arefocused on optimising day-to-day activities,and support a diverse range of applications –from monitoring well testing and reservoiranalysis, to predicting and preventing failuresin components. Comparing the relative performance of

components with identical functions is acritical exercise given that each may havedifferent mechanisms and root causes offailure. Making the correct evaluation withhigh quality data delivers huge benefits foroperators in driving up the reliability of theirequipment over time, and realisingsubstantial reductions in total cost ofownership. Ultimately, broadening thestatistical basis of decision-making deliverssignificant rewards.

Component reliability dataapplicationsOperators capture vast volumes of operatingwell data on a daily basis in order to monitorthe integrity of well barrier components – or‘safety critical elements’ (SCE). With scaling,corrosion and failed well barrier equipment allcommon issues calling for great vigilance to

minimise risk of leakage, information on thestatus of safety-critical well barriercomponents must be completely dependable.The performance of installed well

components must also be predictable.Should a problem arise at any given point intime, operators must be confident that theyunderstand how critical well barriercomponents will respond on demand. Forexample, if a subsurface safety valve (SSSV)needs to be closed, then it should be knownwith some measure of certainty that it isgoing to close and contain the well fluids inthe specified time.Getting accurate reliability figures for well

barrier components requires access to astatistically significant database. Althoughmost operators collate component reliabilityinformation from their own assets, havingaccess to industry-wide data would meanthey could identify the best-performing wellcomponents, and benchmark theperformance of components within theirown organisation against industry averages.They could also extract reliability andavailability numbers to support a range ofcost-saving decisions based on facts.While the industry recognises this need,

a key challenge has been the reticence ofoperators to make data such as componentreliability and failure rates availableexternally. In addition to concerns over dataconfidentiality, any efforts to build such adatabase have tended to be limited to singleregions such as the North Sea, or haveprimarily focussed on specific componentssuch as the SSSV. Previous databases havenot been ideally structured for purpose.Others have suffered from poor quality ofdata, or issues with usability and access.

Realising industry valueIn response to industry demand, WoodGroup Intetech has launched a globaldatabase of well component performancedata. This online experience databaseutilises a reliability analysis tool, iQRA, and is

Dr Liane Smith FREng, founder and director,Wood Group Intetech

Making the correctevaluation with high qualitydata delivers huge benefitsfor operators”


IT


providing operators with access to globalwell and oilfield component performanceinformation. Subscribers can substantiallyreduce operational expenditure (OPEX) byadopting risk-based inspection frequenciesand performance-led maintenance schedulesinstead of corrective remedial work. Risk-based analysis allows operators to

determine where testing can be safelyperformed less frequently. This shouldextend the lifetime of equipment, given thateach cycle causes some amount of wearand fatigue – especially an active componentthat is opened and closed. Potential issueson other wells can also be pre-empted bytaking the opportunity to replace a piece ofequipment if another well intervention istaking place. Performance data analysistherefore allows the effective management

of well integrity problems that weredominating and interfering with production.In addition, the insight of equipment

performance gained from an understandingof historical information results in a morereliable equipment selection. Vendors too,could improve component performance byhighlighting areas for existing productmodification, or by paving the way for thedevelopment of new ones.As demonstrated by the success of iQRA

thus far, connecting data requires firms to

work more collaboratively not just internallybetween business functions such asoperations and corporate IT, but alsoexternally between third parties. WoodGroup Intetech has enabled this throughiQRA by ensuring that data sources are keptstrictly confidential. Sensitive data isanonymised and access to system functionsis protected, using password strength gatesand a robust set of user roles and privileges. Data upload from spreadsheets or direct

from third-party systems is supported to makelife easier for subscribers with large legacytest failure databases. Meanwhile, dataintegrity is assured because all data submittedto the system is automatically passed througha quality assurance workflow incorporatingmultiple validation steps as well as manualchecks by engineers. Importantly, the benefits of a global

database of component reliability extendfar beyond well integrity and the oil andgas sector – they apply equally to anyprocess-intensive industry sector reliantupon many instruments and controlsystems, and where cost pressures andincreasing regulatory requirementsdemand informed decision-making basedupon a risk evaluation approach. n

Connecting datarequires firms to work morecollaboratively, not justinternally but also externallybetween third parties”

Wood Group Intetech’s iQRA application givesoperators access to global well and oilfieldcomponent performance data


IT


THE LAST FEW months have seen significant falls in the crudeoil price. We have seen many theories for why this has beenhappening, ranging from slowing global economic growth,OPEC being unwilling (or unable) to reduce production, hedge

fund managers dumping crude on the market to liquidate theirpositions, increased output from non-OPEC players and many others.

Whilst recent weeks have seen some rebounds, it is thought thatthese are mostly investor driven, with managers taking shortpositions in anticipation of a rebound in prices. The fact remains,however, that there is a global oversupply of some two millionbarrels per day, which will always have an impact, no matter whatthe sentiment of the markets.

Undoubtedly, a sustained oil price fall will have a major impact onrefining and petrochemicals. Globally, refiners are undoubtedlyseeing a benefit, ExxonMobil, for example, reported a significantincrease in profit during the third quarter of 2014, with a significantincrease over the same period of 2013. Clearly this is derived fromsignificantly reduced crude prices, while prices at the pumpremained relatively high. Of course a different scenario exists forintegrated state-owned companies, where overall businesseconomics are much more relevant.

For petrochemicals producers, the picture is somewhat morecomplex. The long-suffering companies with naphtha crackers are

certainly feeling some respite and the cost curve is flattening,eroding the competitive advantage of ethane over liquid feed.Profitability will certainly improve for those cracking liquids but forthose with fixed price gas supply, margins will be eroded due tolower end product prices.

There will undoubtedly be pressure on some of the ethanecracking projects announced in the USA. We may see some projectsshelved, or at least postponed. This, in the longer term, will benefitthe Middle East, helping to balance the supply/demand equation.

The short term issue, however, is inventory. Absolutely nobodywants to maintain stock in such a volatile and falling priceenvironment. We will see inventories dragged down to absoluteminimums; this will, in turn, put significant pressure on supplychains, which will have to be very lean to cope with the fluctuationsin demand.

Companies are now seeing the absolute necessity of operationalexcellence (OE). There is recognition that assets must achieve thevery highest standards of performance, and this OE approach isdoubly magnified in the current environment. Those companies thathave built in flexibility to their businesses will be able to adapt well,increasing and decreasing production as required, closely managingstock levels and carefully managing costs. They will have highly agilesupply chains, which will be able to cope with the demandfluctuations which will certainly occur.

These companies will, in particular, recognise the importance oftraining and skills in such a situation and will not make drastic cuts inthese areas, recognising that this takes away the very capability andflexibility that is required to survive such a challenging time.

The drop in the oil price is hurting companies now, anddiscretionary spending is being squeezed. In the longer term, it maybe seen as a blessing in disguise, as it will force companies tobecome more competitive and agile, take an holistic approach and beless functionally driven. It is those companies that do this smartlythat will be the real winners in the longer term. n

Andy Gibbins is vice president, Middle East with Euro PetroleumConsultants [EPC] and based in Dubai. EPC is a technical oil and gasconsultancy with offices in London, Dubai, Moscow, Sofia and KualaLumpur. They are also the organisers of leading oil and gas conferencesand seminars including OpEx MENA 2015 – Operational Excellence inOil, Gas & Petrochemicals, which takes place in Abu Dhabi from 6-8December 2015. Please visit www.opex.biz for further details.

Andy Gibbins, vice president Middle East,Euro Petroleum Consultants (EPC)

Andy Gibbins assesses the impact of oil price changes on theGCC refining and petrochemicals industries.

Refining and petrochemicals

face mixed outlook

For petrochemicals producers, thepicture is somewhat more complex”


Petrochemicals

S10 ORME 3 2015 - Refining & Petrochems_Layout 1 16/04/2015 14:19 Page 32

PETROCHEMICALS PRODUCTION IN the GCCrose by 4.5 per cent in 2014, making it thesecond highest growth region in the world,according to the Gulf Petrochemicals andChemicals Association’s (GPCA) AnnualReport 2014.Regional growth in chemicals production is

largely attributed to a surge in plasticproduction, which grew by 6 per cent in 2014,nearly twice the worldwide average.Meanwhile, global production of chemicalsrose by 2.8 per cent last year, a similar figureto 2013.“This development is testament to the fact

that the ambitious growth plans of the Gulf’schemicals industry are based on solidfundamentals,” said Dr. Abdulwahab Al-Sadoun, secretary general, GPCA. “The regionhas grown nearly 60 per cent over the globalaverage, an achievement that is made all themore significant when you consider that thisprogress was made despite continuingeconomic uncertainty in Europe and therecent slowdown in China.”

Saudi Arabia continues to be the GCC’smost dynamic petrochemicals market, withnew fertilizer and plastic projects coming on-stream, as well as state-of-the-art researchcentres being launched by companies likeSabic, PetroRabigh, Sadara, Sipchem andTasnee.“While production growth is certainly a

positive development, GCC chemicalsproducers must not rest on their laurels. Thepetrochemicals sector is tied into globaleconomic trends and demographic demand,meaning that we in the Gulf could be affectedby developments from around the world,”advised Dr. Al-Sadoun. “However, what weare seeing in the GCC is that local producersare not only expanding capacities but alsocapturing value added opportunities —Safco’s new fertilizer plant, for example, iscapable of capturing 850,000 million tons ofcarbon dioxide per year enabling this Sabicaffiliate to be the operator of one of thelargest carbon capture and utilization facilitiesin the world.

“Moving forward, the picture lookspositive,” continued Dr. Al- Sadoun. “AsSadara formally comes on-stream this year, 14of the 26 units operated by the company willmanufacture products that have never beforebeen produced in the Arabian Gulf, signallingthat an era of diversification is imminent.”For more information on the GPCA Annual

Report, please visit http://www.gpca.org.ae.

GCC petrochemicals productioncontinued to rise in 2014

GCC petrochemicals production rose by 4.5 per cent in 2014, says GPCA

Petrochemicals



UK-BASED AMEC FOSTER Wheeler has been awarded atechnical services agreement contract by Oman Oil Refineriesand Petroleum Industries Company (Orpic) for Mina Al FahalRefinery, Sohar Refinery, Aromatics Plant and PolypropylenePlant.

According to the three-year contract, the project managementcompany will provide specialist process and technologyengineering support, process safety improvement andmaintenance programme support for the refineries and chemical

plants. Itincludes anexperthelpdeskservice totroubleshootplantprocesses,optimiseproduction,reduceenergy andutilities costsand improveplantreliability,safety and

environmental performance.Roberto Penno, president for Asia, Middle East, Africa and

southern Europe market at Amec Foster Wheeler, said, “Thiscontract opens up exciting opportunities for us in the region. Theagreement covers a wide range of our capabilities includingincreasing optimisation and we look forward to being able todemonstrate and deliver our capabilities for Orpic.”

QATAR’S QATRA FOR Investment & Development (QID Group) andHamad Bin Suhaim Enterprises have signed a deal worth US$5bn toacquire 49 per cent of China’s Shandong Dongming PetrochemicalGroup.

Shandong Dongming Petrochemical Group CEO Ibrahim El-Tinaysaid that the deal is expected to be finalised by Q4 of 2015 with thecash used to finance a number of projects that the Chinese firm iscurrently working on.

“These projects will include building 1,000 petrol stations acrosssix provinces in Chinaand a LNG terminalwith three milliontonnes per annumcapacity in Qinzhou cityin China,” he added.

Once theacquisition deal isfinalised thencompletion dates for these projects will be set, El-Tinay noted.

According to a joint statement from the three parties, the petrolstations will be built within a 300 km radius of Shandong DongmingPetrochemical Group’s Heze refinery in eastern China, which willprovide the petrol stations with a third of its output .

The LNG terminal will include the construction of a terminal, jetty,regasification and storage facilities.

UK firm wins Oman contract

JOHN CRANE HAS secured a deal to modernise and upgrade twoKuwaiti refineries by the Kuwait National Petroleum Company(KNPC) for its Clean Fuels Project.

The USA engineering firm revealed that the deal covers the fullshare of the mechanical seals and systems used for more than530 critical pumps at the Mina Al-Ahmadi Refinery, as well asengineering services, commissioning support and technicaltraining.

Dave Hill, John Crane’s vice president of first fit sales andprojects, said, “We are proud to be entrusted with this largeproject and support strengthening Kuwait’s refining sector.”

The deal was signed with a joint venture between JGCCorporation, SK Engineering & Construction and GS Engineering &Construction, which is managing a US$4.8bn portion of the CleanFuels Project.

“As a leader in energy services, we believe it is part of ourresponsibility to provide the advanced technology needed by ourcustomers to improve reliability in their operations, while meetingthe highest standards of commitment to the environment,” Hilladded.

The KNPC Clean Fuels Project aims to increase the combineddaily production capacity of the Mina Al-Ahmadi and Mina Abdullarefineries from the existing 736,000 bpd to 800,000 bpd whilealso improving their energy efficiency, reducing CO2 emissionsand improving the quality of hydrocarbon production to meetinternational standards.

Qatari investment in Chinesepetrochemicals firm

John Crane secures KNPC clean fuels deal

The LNG terminal will be built inQinzhou (photo: Andrew Tseng)

Petrochemicals

The contract will support Orpic’s refineries andchemical plants (photo: Orpic)



S11 ORME 3 2015 - Technical Access Services_Layout 1 16/04/2015 14:20 Page 35

KUWAIT OIL COMPANY (KOC) isdeploying the largest solar powerplant in Kuwait to be commissionedin 2015. The project has been

developed in response to the directives fromKOC’s parent company, Kuwait PetroleumCorporation (KPC), to utilize solar energy inthe oil sector and reach the goal set by HHthe Emir of Kuwait of producing 15 per centof energy from renewable resources by2030. The project vision is to reducegreenhouse gas (GHG) emissions resultingfrom oil and gas industry operations.

The solar plant uses photovoltaic (PV)panels, which convert light directly intoelectricity. The plant has a peak capacity of10 MW, and is designed to provide aminimum of 5 MW during peak hours ofsummer months under typical weatherconditions at the site in Umm-Gudair, WestKuwait. The plant is connected to an 11 kVdistribution substation that receiveselectricity from the national grid to power 29electric submersible pumps (ESPs).

“This is the first project of its type in the

world, where solar energy feeds ESPs in theoilfield,” says Saeed Al-Shaheen, Manager ofWell Surveillance Group (WSG), which isresponsible for well operation and oilproduction. WSG championed thedevelopment of the project from its earlyconcept, and is supervising the projectexecution.

The project was awarded through acompetitive tendering process to GestampSolar, a Spanish company that specialises inproviding optimal solutions for PV plants.“This is a turnkey project with five years ofoperation and maintenance based on a leasemodel,” says Al-Shaheen. The PV plant is

situated on a 600 sq m plot in Umm Gudair,West Kuwait, and is connected byunderground cables to the nearestdistribution substation located 5 km awayfrom the plant. Construction has started onthe PV plant, and is targeted to becompleted in six months.

The solar plant has 32,500 panels that aremounted on single-axis trackers to increaseenergy production. During the five yearoperation and maintenance period when theplant is managed by the contractor, aminimum level of energy production isguaranteed. “The energy production ismeasured against actual weather conditionson site, which includes solar irradiation andambient temperature to adjust theguaranteed generation, and is compared withactual electricity delivered to the substation,”says Dr. Raed Sherif, a solar energy veteranworking with WSG on the project.

Approximately 17,000 MWh are to beproduced on average every year from thesolar plant, which over the course of 25years reduces CO2 emissions by acollective amount of 250,000 tons. Theproject was successfully registered with theUnited Nations Clean DevelopmentMechanism (CDM) to receive CertifiedEmission Reduction (CER) certificates.“Thisis the first project in KOC to be successfullyregistered with the UN to receive carboncredits,” says Sr. Eng. Laila Al-Bairami in theWell Surveillance Support and EngineeringTeam, who headed the registration processwith the UN CDM. “Future solar projects inKOC will follow the same proceduresdefined in this project for registration withthe UN,” she adds.

The successful deployment of this PVproject in KOC is likely to spur thedevelopment of other projects utilizing solarenergy in the oil sector.

“There are many opportunities tosupplement electricity from the grid withgrid-connected PV plants, and where thereare no grid connections, the environmentalsavings are even greater when PV is usedwith diesel generators,” says Al-Shaheen. n

Declining prices of solar PV panels make the project commercially feasible in addition to theenvironmental benefits

KOC has developed a pioneering solar project designed to reducegreenhouse gas emissions in the oil and gas industry.

Using solar energy in the

oil and gas sector

This is the firstproject of its type in theworld, where solar energyfeeds ESPs in the oilfield”


Technology

S11 ORME 3 2015 - Technical Access Services_Layout 1 16/04/2015 14:20 Page 36


Company News

IN THE SPACE of three decades SledgeHammer has grown from asmall centralizer manufacturer to one of the world’s leadingcementing products companies and the largest producer ofcementing and float equipment in Asia. Specialising in cementingcentralizers for oil wells, SledgeHammer currently supplies morethan 62 countries & more than 100 customers worldwide. SledgeHammer has garnered the distinction of having API 10D,

5CT & ISO 9001:2008, 14001:2004 and 18001:2007 certificationsunder its belt. The company manufactures a wide range ofequipment confirming to API 10D, 5CT, 10F, TR5 specificationsunder license from the American Petroleum Institute.The company provides a complete range of cementing

products and accessories for both offshore and onshore needs, aswell as a complete line of welded and non-welded bow springcentralizers, turbolizers, solid centralizers, rubber cementing plugs,stop collars, stage cementing tools, DV tools, float equipment,cement retainers, bridge plugs, packers and other accessories forthe oil and gas drilling industry.

Headquartered in India, SledgeHammer says it is the onlycompany in Asia that has the capability of manufacturing thecomplete product line under one roof. All products are designed,assembled, tested and inspected at its own facility, resulting insuperior quality, cost-effectiveness and impressive deliverytimelines. The hub is equipped with modern machines such asrobotics welding, robotics paint shop, flow loop testing cell, CNC,VMC,VTL, HMC, fully automated heat treatment plant for bowspring manufacturing, state-of-the-art press shop, completemachine shop and paint shop as well as testing machines.The company prides itself on its commitment to innovation,

excellence and customer satisfaction, and continuously strives toimprove its products, which are subjected to rigorous on-sitetesting. SledgeHammer has experienced significant international

expansion in recent years, having set up joint manufacturingfacilities in Malaysia and the Kingdom of Saudi Arabia, along withsales offices in the UAE and Thailand. The company looks forwardto a bright future and further international expansion, with plans toset up an office in the USA.

SledgeHammer set for expansion

An example of SledgeHammer products

S12 ORME 3 2015 - Geophysical Data_Layout 1 16/04/2015 14:21 Page 37

CARBON DIOXIDE (CO2) hydraulicfracturing is coming to the fore asone of the most effective andcleanest approaches available today

to increase oil and gas production, evenfrom unconventional sources such as shale,tight sands formations and coalbedmethane, while nitrogen (N2) is proving aneffective alternative to CO2 in manysituations, especially for fracturing shallowerwells. In fact, it is estimated that up to athird of hydraulic fracturing operations arecurrently being energised, frequently withnitrogen.When injected into gas and oil wells

these so-called “energised solutions” areable to enhance hydrocarbon productionrates and yields. Fracturing treatmentsenergised with CO2 or N2 are increasinglybeing recognised for maximising long termwell productivity, minimising environmentaldamage and reducing the overall costs ofresources such as water. When properlydesigned, energised solutions can in fact bemore economical than water.Sometimes when CO2 is more expensive

than water, the overall economics ofenergised solutions are significantlyimproved through a faster payback andreduced well maintenance cost. CO2 can beless costly than water when the operatortakes into account total life cycle costs oftheir hydraulic fracture fluid choice.Hydraulic fracturing and horizontal drilling

are changing the natural gas industry byenabling the exploitation of reserves thatwere previously inaccessible. The mostcommon form of this process uses a water-based formulation to achieve sufficientviscosity to suspend and capture therequired particles. Creating the requiredextraction fluid formulation involvessignificant chemistry and is associated withthe use of massive amounts of water. Typically, low permeability source rock

becomes an economically productive well bypropagating fractures in a rock layer usingthe fluid in a highly pressurised state, in

combination with a proppant (typically sand)to hold the formation open for the release ofpetroleum, natural gas (including shale gas,tight gas, and coalseam gas) or othersubstances for extraction. Some fracturesform naturally — certain veins or dikes areexamples of this — and can create conduitsalong which gas and petroleum from sourcerocks may migrate to reservoir rocks. Shale gas, found trapped within shale

formations, has become an increasinglyimportant source of natural gas in the USAsince the start of the 21st century, andinterest has spread to potential gas shales inthe rest of the world. In 2000 shale gasprovided only 1 per cent of US natural gasproduction, but by 2010 it was over 20 percent and the US government's EnergyInformation Administration (EIA) predictsthat by 2035, 46 per cent of the USA’snatural gas supply will come from shale gas.

Some analysts expect that shale gas willalso greatly expand world energy supply. As a fine-grained, sedimentary rock,

shale is heterogeneous — no two are alikeand they vary aerially, vertically and alongthe wellbore, with in-situ stresses andgeological variances. Shale is easilybreakable into parallel layers. Withpermeability in the nanodarcy range, it issoft yet does not disintegrate when wet.Instead it becomes fine grain silt and mud.To extract embedded oil and gas, shale mustbe fractured.The development of hydraulic fracturing

has therefore made it possible to tap intothis gas, leading to a shale gas revolutionthat is seeing wells thousands of metres inlength being created. A vertical well isexcavated to hundreds, and even thousands,of metres below the surface and thenadvanced horizontally, following the

The US government’s EIA estimates that by 2035, 46 per cent of the USA’s natural gas supply will comefrom shale gas (Photo: Tom Murphy)

The use of energised solutions can help to increase productivity and reducethe environmental impact of hydraulic fracturing, says Linde Gas.

Making fracturing safer and

more efficient


Technology


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configuration of the rock formation. Althoughthese fractures are enormously long, theyare only millimetres in width, which issufficient to open up the rock and extractthe gas. The extraction fluid is then pumped down

the well and the pressure this createscauses the surrounding rock to crack, orfracture. The fluid flows into the cracks andwhen the pumping pressure is relieved, thewater disperses and leaves a thin layer ofproppant, a sand or ceramic material used tokeep the fractures “propped” open. Thislayer acts as a conduit to allow the naturalgas to escape from the shale formations andflow to the well for recovery. Other unconventional reservoirs include

tight sands and coalbed methane. Tightsands are hard rock, limestone, sand, orsandstone formations with low verticalpermeability, in the microdarcy range. Theyare laminated structures and there can be nosignificant gas flow without fractures –whether naturally occurring or induced.Coalbed methane is found within coaldeposits located in or around coal seams,often near earth’s surface. Natural fracturesare often filled with water and absorbed gas,making water removal a key extractionchallenge.

First useThe first use of hydraulic fracturing goesback to the late 1940s, but it was only in1998 that modern hydraulic fracturingtechnology, referred to as “horizontalslickwater fracturing”, made the extraction ofshale gas economically viable. Thispioneering technology was first used in theBarnett Shale geological formation in Texas.The energy from the injection of a highlypressurised hydraulic fracturing fluid createsnew channels in the rock, which canincrease the extraction rates and ultimaterecovery of hydrocarbons.Linde Gas, a division of The Linde Group,

a global leader in the international industrialgases market, was the first company tosupply CO2 and N2 to the energy sector. Ithas decades of experience with thesuccessful application of energised solutionsin the production of hydrocarbons fromunconventional sources such as shale. Thesesolutions are helping producers increasetheir productivity and decrease theenvironmental impact of hydraulic fracturing.

The more common fracturing fluids usedtoday are gelled or water-based, and CO2and N2 have built a reputation as beingfluids that can reliably be harnessed for thesuccessful hydraulic fracturing andstimulation of wells. Recent studies indicatethat, from an economic perspective,hydraulic fracturing with solutions energisedby CO2 or N2 can achieve significantly morehydrocarbon recovery than non-energisedapproaches. One such study found that useof energised fluids improved wellperformance by up to 2.1 times, comparedwith non-energised solutions. The ultimate goal of well stimulation is to

achieve maximum productivity at the lowestunit cost, but achieving economicallydesirable fracture penetration andconductivity can be particularly challenging in

Liquid nitrogen is used for ‘dry fracking’ – a fracturing process that has eliminated many of theproblems associated with hydrofracturing

The more commonfracturing fluids used todayare gelled or water-based”


Technology


unconventional reservoirs. Fracturing withfluids that are not energised can leaveliquids trapped in low-permeability, tight,depleted or water-sensitive formations. Thisfluid remaining in the formation lowers thefracture conductivity, reducing or impedingthe flow of oil and gas. Very often in water-based hydraulic fracturing fluids, the majorityof the water is never recovered fromunconventional reservoirs and the water thatis recovered is contaminated.Proppant can be improperly deposited,

resulting in blocking or impeding flow andhere foamed energised fracturing fluids areproviding superior proppant transportproperties. Gelled fracturing fluids must beflushed from the formation to clean out asmuch residue as possible from theproppant pack.Energising the fracturing fluid with CO2

or N2 also improves the total flowbackvolume and rate, minimises fluid retentionand reduces the required water volume,which has significant economicimplications. CO2 actually vaporises atreservoir conditions, leaving a liquid-freeproppant pack. Avoiding damage, definedas “any induced reservoir change thatinhibits or restricts hydrocarbon flowduring well stimulation”, is critical. There isevidence that the use of these industrialgases also reduces the damage caused byproppant, factures that are too far apartand residue from polymers and gels. Theflexibility of energised solutions allows forthe hydraulic fracturing fluid to be mixedaccording to the technological needs ofunconventional reservoirs. They providemore rapid and complete treatment fluidrecovery, help to clean without the needfor swabbing and reduce formationdamage by minimising the amount ofaqueous fluids introduced to theformation.Energised solutions also offer the

ability to have superior proppant-transportproperties and, in the case of underpressured or depleted zones, provideenhanced energy for hydrocarbonrecovery.Flexibility in solution viscosity allows for a

more uniform deposition of proppants,improving conductivity of the propped areato enhance the flow of hydrocarbons. Inunconventional reservoirs, energisedsolutions provide the necessary lift to movehydrocarbons in low pressure zones or areaswith strong capillary forces. The solubilityand miscibility properties of CO2 providegreater opportunity to energize the flow ofmore viscous hydrocarbons.

Extraction and processingNitrogen (N2) and carbon dioxide (CO2) asbulk gases are used in huge quantities forthe extraction and exploration of natural gaswith induced hydraulic fracturing. The

traditional process for propagatinghydrocarbons trapped in undergroundfractures had required high volumes ofwater, mixed with foaming agents andfriction reducers and injected at highpressure into the fractures, cracking openthe shale and creating fissures allowing gasor oil contained within them to flow freely. Alternative techniques which can help

mitigate water-related issues in fracturinginclude employing CO2 mixed with alcoholor liquid nitrogen (LIN) in a process knownas “dry fracturing”. The CO2/alcohol mix isalso injected at high pressure undergroundto open up fractures, with the CO2expanding as it vapourises, allowing naturalgas to flow out through the cracks to becollected and processed. Liquid nitrogen is used for “dry

fracking” – a fracturing process that haseliminated many of the problemsassociated with hydrofracturing and couldprove to be more acceptable to peopleconcerned about the environment. It usesvery few, or no chemicals and afterfracturing the nitrogen is released into theatmosphere, which already comprises 78per cent nitrogen. Nitrogen has beenshown to yield higher economic value incomparison to conventional chemical

fracturing, it is being used extensively fornatural gas extraction in areas of highenvironmental sensitivity.

Uniquely positionedAs the industry continues to focus onreducing the amount of water required forhydraulic fracturing and developingcompletion designs to sustain wellproduction, greater emphasis is being placedon the use of cryogenic gases andassociated field support services to achievethese goals. Linde is uniquely positioned towork on a nationwide scale with oil and gasproducers and oilfield service companies forfracturing and enhanced oil recovery.Services include a complete fleet of CO2transports, even to remote locations, and astrong N2 supply network. Linde Gas produces N2 and CO2 in liquid

form at facilities close to hydraulic fracturingsites and delivers these gases onto site inroad tankers. Last year Linde North America

introduced Nitrogen Portable StorageVessels (NPSVs) that enable hydraulicfracturing operators and service companiesto expand their nitrogen storagecapabilities on location. Providing 16,700gallons of storage capacity, NPSVs aretransportable cryogenic vessels that allowLinde to deliver high volume liquid nitrogendirectly to production locations. Lindefurther simplifies the use of NPSVs byproactively managing nitrogen inventory forits customers for just-in-time availability. Itprovides high-quality nitrogen from its 70US plants and depots to 11,000 localcustomer installations, with 40,000deliveries per month. n

Energising thefracturing fluid with CO2 orN2 also improves the totalflowback volume and rate”

The phases from primary to tertiary oil recovery include various methods of stimulation and re-stimulation from individual wells to a field-wide perspective. Highlighted are the areas where N2 andCO2 are utilised across the spectrum


Technology


DESPITE THE CURRENT low oil prices, drilling and the drillingfluids market remain on the rise in the Middle East.According to the monthly Baker Hughes rig count forFebruary 2015, the number of drilling rigs in the Middle

East actually jumped by 19 units to 155 units in February 2015, instark contrast to situation in the USA.

The outlook for drilling fluids also remains positive. Such fluids(also known as muds), that play a crucial role in cooling andlubricating drill bits, carrying drill cuttings to the surface, controllingpressure and retaining formations, form part of a US$560.97mnmarket in the Middle East, according to industry analystsMicroMarket Monitor.

MicroMarket Monitor predict that annual growth in the MiddleEast - both onshore and offshore - will be over 5.5 per cent betweennow and 2018, driven by significant drilling activity in Oman andSaudi Arabia. The report concludes by saying that “the Middle East isone of the stable markets for drilling and completion fluids and isexpected to remain so in the coming years.”

Given the importance of muds and drilling fluids to the MiddleEast, it is therefore vital that such fluids are used to their optimalpotential.

Key to this is the efficient separation of the drilled rock particlesfrom the fluids to optimise drilling fluid and drilling performance,maintain drilling fluid parameters, reduce the volume of mud lost,and minimise the total tonnage of drilling waste generated.

Traditional solids control technologiesIn an industry that has seen considerable innovations over the pastfew years, it is perhaps surprising that the traditional technology formaintaining drilling fluids and separating rock particles on bothonshore and offshore rigs has been around since the 1930s.

Shale shakers - the primary method of solids control today -consist of vibrating screens where the “returns” from the well -drilling fluids and drilled solids - flow on to these screens.

The vibrating screens generate high G-forces, which are used toseparate the mud and solids. In offshore operations, these solids areeither discharged overboard or transported to shore for treatmentand disposal. In onshore drilling, the solids are either discharged intolined pits or trucked to suitably equipped treatment facilities. The

cleaned mud is then incorporated back into the active fluid systemfor further use.

Yet, despite their longevity and at a time of increased focus ondrilling efficiencies, the bottom line and HSE, shale shakers areshowing their age with inadequate solids removal efficiency, highvolumes of mud lost, large tonnages of waste generated and a poorworking environment provided for rig personnel.

For example, with the high G-forces used there is an increasedrisk that drilled solids will be broken down into finer and finerparticles, reducing the amount of solids that are removed andincreasing solids content in the drilling fluid – particularly the casewith those detrimental low gravity solids. This leads to reduceddrilling efficiencies, has a negative impact on penetration rates, andresults in increased wear and tear on both surface and downholeequipment.

In addition, the use of vibrating type shale shakers will often leadto high volumes of mud being lost, with an increase in drilling wasteand implications from both a cost and environmental standpoint.

Drilling and the drilling fluids market are on the risein the Middle East (photo: Daniel Fogg)

Even Gjesdal, Cubility AS, outlines the benefitsof a new filtration system that removes solidsfrom the drilling fluid.

Improving performance in

drilling operations

The traditional technology formaintaining drilling fluids and separating rockparticles has been around since the 1930s”


Technology

S13 ORME 3 2015 - Offshore Technology_Layout 1 16/04/2015 14:22 Page 42


Finally, shale shakers often expose personnel to high noise levelsand vibrations as well as the emission of oil and other vapours. Withmany countries in the Middle East putting in place stricter HSErequirements related to employee conditions, this is anothersignificant limitation with these traditional types of solids controlsystems.

A new approachIt is against this backdrop that Norwegian company Cubility isproviding an alternative to shale shakers - the MudCube.

The MudCube is a field proven, vacuum-based filtration systemthat removes solids from the drilling fluid. Dispensing with the needfor high G forces to separate mud and the drilled solids, drilling fluidsare vacuumed through a rotating filter belt using high airflow toseparate the cuttings from the fluid. The rotating filter belt carriesdrilling fluid and drilled solids forward while air - at 20,000 litres perminute - is pulled through the filter belt, taking with it the drillingfluid.

In this way, the cleaned drilling fluids are returned to the activemud system, and the drilled solids - carried forward on the filter belt- are discharged to a cuttings handling system. The solids removalefficiency of the new system often exceeds 90 per cent.

The benefits of the MudCube There are a number of immediate benefits to drilling operations fromthis new solution that has the ability to significantly alter the solidscontrol, fluids and drilling operations environment in the Middle East.

Firstly, the new system improves drilling efficiencies throughbetter quality mud. The more stable mud properties and higherquality drilling fluids result in low Equivalent Circulating Density(ECD) - the density exerted by the circulating fluid against theformation - and pre-empt the dangers from high ECD, such asinduced fractures, lost circulation and fluid losses. Effective solidscontrol also results in higher rates of penetration (ROP), reduced riskof stuck pipe, and improved wellbore stability.

Cleaner muds and fluids also play a key role in reducing NonProductive Time (NPT), thereby enabling Middle Eastern operators tomaximise the value of their drilling assets and ensure the bestpossible returns.

As well as drilling efficiencies, there are also significant costsavings arising from improved solids separation and better qualitymud. For example, more mud is recycled back into the mud tanks tobe reused for drilling, and fewer chemicals are required to maintainthe mud’s properties.

One operator and drilling fluids company recently reported thereduced use of premix chemicals as bringing savings of up toUS$270,000 when using the MudCube, as compared to similaroperations with standard shale shakers. Other cost savings includelower maintenance requirements for rig circulating equipment andless money spent for installation on onshore and offshore rigs.

Much of the operation of the MudCube can take place remotelywith the real-time monitoring of mud volume, mud density,temperature and cutting shape recognition, resulting in improvedefficiencies and cost savings.

There are strong environmental benefits as well. Due to lessdrilling fluid being lost and improved separation capabilities, the newsolution also generates substantially drier cuttings with mud oncuttings being reduced to less than 30 per cent of drilled solids andoil on cuttings as low as 5wt per cent. This leads to reduced wastevolumes and costs associated with handling, transporting andtreating drilling waste.

With some areas of the Middle East operating on a zero oildischarge basis for oil based mud drill cuttings, reducing the volumeof mud lost is a critically important component in meeting everstricter environmental regulations while reducing the costs ofdisposal and treatment.

Finally, the new solution’s use of vacuum and air flow rather thanthe high G- forces of shale shakers, leads to a much-improvedworking environment for rig personnel, with noise levels reduced to74 dBA (decibels) and no vibrations or emissions of fumes andgases to the shaker room. In this way, the highest HSE standardsrequired across the Middle East can more easily be met.

ApplicationsSince its 2012 introduction to market, the MudCube has beenadopted on a number of offshore and onshore rigs. This hasincluded the North Sea, Far East and North and South America aswell as the Middle East, where an onshore trial with a majoroperator was successfully completed in 2014.

The primary objectives for this onshore trial were to improve theworking environment for rig personnel, minimise the consumptionof consumables (filter belts) and reduce mud losses and thecorresponding volume of drilling waste.

On completion of the trial, the results were assessed andcompared to the KPIs (Knowledge Performance Indicators) set.Noise levels were reduced, filter belt consumption was less thanthe targets set, and mud on cuttings concentrations were reducedto less than 30 per cent by volume of the rock drilled. Solidsremoval efficiency was above 90 per cent. It was thereforeconcluded that the trial was a success.

ConclusionsWith the intensity of drilling operations, the need to monitor thebottom line and stringent environmental controls, solids control andwaste management technologies are a critical element ofsuccessful drilling operations in the Middle East today.

This new technology offers Middle Eastern operators analternative in improving drilling efficiencies and environmentalperformance in their exploration and development operations. n

The MudCube has the potential to significantly alter the solids control,fluids and drilling operations environment in the Middle East

The solids removal efficiency of thenew system often exceeds 90 per cent”

Technology

S13 ORME 3 2015 - Offshore Technology_Layout 1 16/04/2015 14:22 Page 43

AZERBAIJAN HOLDS THEdistinction of being one of theoldest oil producers in the world.Not only is oil and natural gas

production key to the country’s economicgrowth, but the nation is a major exportroute to the West.

Continuing to exert its influence on theglobal oil and gas industry is the Caspian Oil& Gas Exhibition, whose 22nd edition will beheld from 2-5 June 2015 at the Baku ExpoCentre in Azerbaijan.

More than 250 companies are expectedto participate in the show, including AFZENJ.V., Azeri M-I Drilling, Baker Hughes, BosShelf MMC, BP, Caspian Drilling Company,Caspian Geophysical, Caspian MarineServices, Caspian Pipe Coatings, Chelpipe,Cross Caspian, Dentons, Global Energy,Inpex, RussNeft, TPAO, Tekfen Construction,

Total and Schlumberger. The energy ministryof the country and the State Oil Company ofAzerbaijan Republic (SOCAR) will alsosupport the show, said organisers.

Spanning three pavilions of the venue,Caspian Oil & Gas 2015 will feature a host ofnew technologies and advancements in oilextraction, energy resource transportation,storage systems for oil and gas as well asfocusing on some of the largest projects inthe region.

According to the US EIA, Azerbaijan’sSOCAR is involved in all segments of the oilsector. However, 80 per cent of its oil isproduced by international oil firms, mainlyfrom the ACG oilfields by the BP-operatedAzerbaijan International Operating Company(AIOC), and the BP-operated Shah Denizfield, which produces oil condensate. AIOCis a 10-company consortium that has signed

extraction contracts with Azerbaijan, led byBP and including Chevron, Inpex, Statoil,Turkiye Petrolleri, ExxonMobil, SOCAR,ITOCHU and Hess. BP is the largest foreigninvestor and has been involved in Azerbaijansince 1992, states the EIA.

The show is expected to showcaseAzerbaijan’s involvement in oil productionand how it impacts the global supply of oiland condensate. Visitors to the show canexpect to interact with industry experts inareas such as reservoir engineering,geology, geo-physics, oil well construction,design and manufacturing. Azerbaijan is alsoconsidered a favourable country forinvestment, with more than US$120bn beingpoured into the country between 1995 and2013. There will be large trade missions fromChina, Finland, Turkey, France, Germany,Italy, Norway, the UK and the USA.

For the first time ever, Caspian Oil andGas will also host an art exhibition titled TheNobel Brothers and Baku Oil: The Prize. Thecollection has been created on the initiativeof the National Art Museum of Azerbaijanand the organisers of Caspian Oil and Gas,Iteca Caspian, to celebrate 135 years sincethe Nobel brothers’ oil company wasfounded in Azerbaijan.

In addition, attendees can also participatein the International Caspian Oil and GasConference at the JW Marriott AbsheronBaku hotel from 3-4 June 2015. More than500 delegates from 30 countries will takepart in the annual conference, with around50 representatives of state bodies, leadingexperts in the oil and gas industry and chiefexecutives of major oil and gas companiesscheduled to speak. n

The Caspian Oil & Gas show is expected to showcaseAzerbaijan’s capability as an oil exporter and producer

With the distinction of being one of the oldest producers of oil in the world,the Caspian nation is all set to welcome oil and gas industry leaders toshowcase the country’s strength and significance in oil production and exports.

Azerbaijan prepares to host 22nd

Caspian Oil & Gas


EXHIBITION

Caspian Oil & Gas 2015Date: 2-5 June 2015Venue: Baku Expo Center, Azerbaijan

S14 ORME 3 2015 - Surface Coating_Layout 1 16/04/2015 14:23 Page 44

THE RECENT ACQUISITION by Italy-basedRaccortubi of Petrol Raccord S.p.A., manufacturerof butt weld fittings for the oil and gas, powergeneration, fertiliser and petrochemicalindustries, brings significant developmentsthroughout the Group.

“The acquisition presents an excitingopportunity for Raccortubi Group and RaccortubiMiddle East,”explains Sunzeev Swami, managingdirector of Raccortubi Middle East FZE. “With theinclusion of Petrol Raccord in the Group, theintegrated production range has been extendedfrom ½” to 56”, meaning that we can offer clientsa complete range of fittings in stainless steel,duplex, superduplex, superaustenitics and nickelalloys without wall thickness limitations.”

Petrol Raccord is working alongside Tecninox,Raccortubi Group’s other integratedmanufacturing plant, to enable Group companiesto offer customers complete solutions, as well asadded value. The butt weld fittings manufacturedby the Group’s plants are stocked and supplied byRaccortubi S.p.A. in Italy, Raccortubi Middle EastFZE, Raccortubi do Brasil Ltda. and RaccortubiSingapore Pte. Ltd., alongside pipes, tubes andflanges in stainless steel and special alloys.

“We are now a Group of seven companies with

a workforce of 220 people and a solidmanufacturing and distribution base whichoperates worldwide,”adds Swami. “The inclusionof Petrol Raccord within our Group is enabling usto propose more interesting solutions to ourclients. The integration of a second butt weld

fittings manufacturer within Raccortubi Group isallowing us greater availability and efficiency,thanks to our direct control over production, toprovide our customers with complete packagesand tailor-made offers.”

Furthermore, as a result of the experience andexpertise that the company has accumulatedsince its foundation in 1969, Petrol Raccorddedicates an increasing part of production tospecial/customised fittings such as flow or barredtees, “Y” pieces, laterals, manifolds and headers.Butt weld fittings can be manufactured toindividual customer specifications.

Using the hot forming method, Petrol Raccordalso has the capability to provide elbows, tees,reducers and caps in accordance with the moststringent market requirements. Petrol Raccordhas its own internal laboratory and holds animpressive number of end-user approvals,including that of Saudi Aramco, as well as qualitycertification for the nuclear industry.

“All members of Raccortubi Group share acommon commitment to quality,” concludesSwami. “We are constantly moving forwards tokeep on top of client requests and providecustomers with added value in an industry and aregion which are under continuous development.”

Raccortubi Group extends its manufacturing range

The acquisition is enabling Raccortubi toenhance its offer to clients


Company News


THE OIL AND gas industry faces aseries of challenges, amid risingcosts of maintenance. One of themain problems is wear-and-tear of

surfaces of hulls, ships, pipelines andequipment. Investing in good brands thatwill ensure superior protection of oilfieldequipment and machinery is vital.

There are several unconventionaloperations such as lateral and directionaldrilling, which can cause quickerdegeneration of surfaces. Surfacetechnology is making strides in innovationsthat can help overcome damage caused tosurfaces due to extreme conditions.

Jotun, a leader in providing anti-foulingsolutions, presented its Jotun HullPerformance Solution (HPS) on several newvessels, including those of theMediterranean Shipping Company (MSC).Jotun’s HPS concept combined premiummarine coatings such as SeaQuantum X200for MSC's vessels. In addition, Jotun alsoprovided a technical service and on-boardmonitoring tools to measure hull

performance over time. MSC’s technicaloffice issued a statement which said thatthey recorded significantly lower fuel costsover time using HPS.

Jotun was present at ADIPEC 2014, heldin Abu Dhabi, where they showcased anadvanced portfolio of their products for thepetroleum industry. Jotun ProtectiveCoatings marketing manager VenkatKrishnan said, “With the rapid infrastructure

growth taking place in UAE and widerMiddle East, we have witnessed robustgrowth for our protective coating solutionsand we anticipate this trend to gain furthertraction as massive expansion projects willcontinue to develop in the region over thenext three decades."

Another leader in the field is Hempel. TheDanish company's Hempadur AvantGuardwon the Frost & Sullivan Award for NewProduct Innovation earlier last month, whichwill be presented in May in London. Theproduct's activated zinc primers includepatented AvantGuard® technology toprovide better anti-corrosive protection thanzinc epoxies without AvantGuard®. Thecoatings are developed to protect industrialstructures and equipment in C4 and C5corrosive conditions, where saltwater andhigh humidity corrode unprotected steel.They can be used in a range industries andapplications, from offshore oil and gasplatforms to power plants and wind turbines.The AvantGuard technology uses hollowglass spheres and a proprietary activator to

Some of the most common corrosiveelements are air and water, both of whichaffect oil vessels and offshore platforms.

(Image source: Pixabay)

With the increase in unconventional methods of drilling, surface coatingprotection has never been more relevant in the Middle East’s oil and gas industry.

Guaranteed

protection

The surface coatingsindustry appears poised togrow, especially in countriesin the Middle East andAfrica, where there issustained activity in oil andgas.”


Surface Coatings


activate more zinc and enhance the anti-corrosive properties of the coating. Theincreased protection and durability ofHempadur AvantGuard® coatings have beenproven in extensive Hempel tests, includingsalt spray tests (ISO 12944 part 6), cycliccorrosion tests (ISO 20340 - NORSOK M-501 revision 6) and thermal cyclingresistance tests (NACE cracking test andHempel’s welding test).

Investments in oil and gas run intomillions, and industry leaders expect acertain level of reliability in products asprojects extend for long periods of time.Companies appear willing to spendsubstantial sums on a reliable set ofprotective solutions. Industrial Nanotech,Inc., a global leader in nanotechnology basedenergy saving solutions, received aUS$94,950 order for its patented High Heatinsulation and corrosion prevention coating.

The surface coatings industry is a thrivingone and appears poised to grow, especially incountries in the Middle East and Africa,where there is sustained activity in oil andgas. The aim of the products is not only toensure minimal to no corrosion, but also toprolong the life of equipment, a growingconsideration in the low oil price era.

While there is interest in purchasing thelatest products and investing in cutting edgeinnovations, its also prudent to identify themost beneficial technologies.

Thermal spray - Original equipmentmanufacturers (OEM) can supply equipmentthat can withstand the variety of stresses.Thermal spray results in a mechanical bondbetween the coating and substrate makingthis application optimal for prevention ofcorrosion that have no impact exposure,such as bearings, pump seal faces, valveparts and shafts. Thermal spray produces avery thin overlay, making product finishingeasier and faster compared to welding parts.Mud rotors treated with thermal spraycoating often have a service-life ten timeslonger than those treated with HCP. In theoil and gas industry, thermal spray workswell for riser tensioners on offshoreplatforms.

Welding - For equipment used in high-pressure and/or high-temperature (HP/HT)environments, welding is a preferred

method. In contrast to thermal spray’smechanical bond, welding melts both thematerial being applied and the surface of thesubstrate, forming a durable metallurgicalbond. This is necessary for tools exposed toextreme conditions that cause heavy wearand tear. In particular, HP/HT environmentsoften found in deep-water operations requireLaser Cladding to produce a fully densecoating, without which the equipment canquickly become damaged and requiredowntime for repair.

Diamond like carbon (DLC) - This methodtransfers certain properties of diamonds,such as hardness, wear resistance and lowfriction, to the surfaces of tools. Because ofits low co-efficient of friction, it can operatein the absence of lubrication, which saves onoperating costs. The functional DLC layerhas excellent sliding properties that cansignificantly increase performance. DLCcoating improves drilling uptime, reducesmaintenance and is best suited forapplications with high friction. n

The aim of theproducts is not only toensure minimal corrosion,but also to prolong the life ofequipment”


Surface Coatings


THE 19TH SOCIETY of PetroleumEngineers Middle East Oil & GasShow and Conference (MEOS 2015)attracted a record total of 8,227

attendees, according to the organisers,marking a 12 per cent increase over 2013,despite taking place against the backgroundof the declining oil price. 240 regional andexhibitors from 28 countries participated inthe event, which was held from 8-11 Marchin Bahrain.Principal exhibitors included GCC NOCs

ADNOC, Bapco, Kuwait Oil Company, QatarPetroleum and Saudi Aramco – whoparticipated alongside internationalsupermajors, service industry giants andindependent specialist suppliers anddistributors from across the globe. The

exhibition also featured a large nationalgroup from North America, and for the firsttime in the show’s history, an officialdelegation of some of the largest oil and gascompanies from Egypt.Held under the theme ‘Energy beyond

limits through innovation and collaboration,’the conference opened with a ministerialsession, a first for MEOS, which was very

well attended. It was addressed by HE DrAbdul Hussain bin Ali Mirza, minister ofenergy, Bahrain; HE Dr Ali Al-Omair, ministerof oil, Kuwait; HE Eng. Suhail MohamedFaraj Al Mazrouei, minister of energy, UAE;HE Abdalla Salem El-Badri, secretarygeneral, OPEC; AbdulHameed Al-Rushaid,MEOS 2015 conference chairman and chiefdrilling engineer, Saudi Aramco; and NathanMeehan, 2016 SPE president. Setting the tone for the event, HE Dr

Mirza commented on the role of MEOS asone of the most important events in theMiddle East’s oil and gas calendar,showcasing the latest technology theindustry has to offer, as well as therobustness of the regional oil and gas sector.“Our industry has proven over the current

decade to be resilient despite the ups anddowns.....we will continue to plan long-term,invest in technology and create globalpartnerships and alliances,” he said,comments echoed by HE Eng Suhail AlMazrouei and HE Dr Ali Al-Omair. Theministers spoke openly about theircountries’ energy plans, EOR being a strongfocus, and also emphasised the importanceof energy security and the development ofalternative sources of energy. HE AbdallaSalem El-Badri underlined the MENAregion’s critical role in satisfying the growingglobal demand for energy in the long term. Plenary and panel sessions over the

subsequent three days were led by CEOs,managers and presidents of NOCs, IOCsand the service industry. Discussion topicsincluded academic and industrycollaboration, in country value,unconventional resources, environmentalstewardship, innovative collaboration andcyber security in the energy sector.


The exhibition was officially inauguratedby HH Shaikh Ali bin Khalifa Al Khalifa,deputy prime minister of Bahrain

The region continues to maintain production and invest for the long term, although the environment is becoming increasingly cost competitive.

Middle East oil and gas sector

remains robust

We will continue toplan long-term, invest intechnology and create globalpartnerships and alliances”

MEOS 2015Date: 8-11 March 2015Venue: Manama, Bahrain

EXHIBITION

S15 ORME 3 2015 - MEOS Review_Layout 1 16/04/2015 14:13 Page 48

Exhibitor displays featured the latestadvances in technology, equipment, softwareand instrumentation, and technicalpresentations given at stands were very wellattended. Some companies used theopportunity to introduce new products;Schlumberger for example unveiled itsSignature Xtreme high -emperature quartzgauge, designed to withstand the harshestdownhole conditions, while Belzonashowcased its new coatings and compositematerials.Exhibitors were generally positive about

prospects in the region (certainly incomparison to other regions of the world),and commented on the increasing opennessto innovative solutions and technology thatwill assist in cutting costs, optimisingproduction, increasing efficiency andfacilitating strategic planning. Digital oilfield,

process automation and artificial lift solutionswere amongst those proving popular. Whilethe stands of the major service companiesattracted much interest, smaller companiesproviding niche technology solutions werealso very well received. FEI, for example, is

starting to make inroads into the Middle Eastwith its digital rock imaging solutions,particularly in the area of EOR; while Sky-Futures, whose unmanned aerial inspectionscan help to cut manpower and thus reducecosts, is also doing well in the region. n

Smaller companiesproviding niche technologysolutions were also very wellreceived”

A busy stand at the exhibition


S15 ORME 3 2015 - MEOS Review_Layout 1 16/04/2015 14:13 Page 49

CATERPILLAR OIL & GAS has announced that 76Cat® 3500 land electric drive drilling moduleshave been selected to power 18 new-build landdrilling rigs to be built in China and operated inthe United Arab Emirates. 50 Cat 3512C landelectric drive drilling modules rated at 1101 ekW(60Hz) and 26 Cat 3516C (HD) modules rated at1523 ekW (60Hz) will power the rigs. The unitswill be delivered over the course of this year toBaoji Oilfield Machinery Co. Ltd (BOMCO) andSichuan Honghua Petroleum Equipment Co. Ltdbased in China.

“We’re honoured that NDC has been, andcontinues to be, a loyal Caterpillar customer,”said Brandon Wang, Caterpillar Oil & Gas AsiaPacific – China direct sales manager. “Beyondthe superior product attributes, the combinedtechnical expertise of Caterpillar sales supportand the breadth of the Cat dealer networkproved to be significant factors in winning theproject.”

Developed specifically to meet the demandsof oil and gas applications, Cat 3500 landelectric drilling modules have established areputation as proven, reliable power solutions

after logging countless hours in rugged oilfieldapplications. The modules deliver market-leading power density and feature a robust basedesign to withstand shock loads during loading

and unloading operations. Manufactured inLafayette, Indiana, the drilling module providescustomers with enhanced safety, performanceand overall ease of use.

CTS, WHICH SPECIALISES in products used for the storage and transfer offluids, is experiencing a strong demand for its products in Saudi Arabia.A major part of the company’s portfolio consists of aluminum geodesic

domes, aluminum internal floating roofs, floating suction lines, tank seals (forboth internal and external floating roof tanks), tank drain systems, andindustrial supplies such as hose systems, dry break couplers, emergencyrelease systems vapour bladders etc.CTS has received a world record-breaking dome order from NWC, Saudi

Arabia, for the supply of 44 domes of various sizes for the cities of Riyadh,Makkah, Jeddah, and the Breiman region. This includes four 120m diameterdomes for the city of Jeddah, which will be the largest free span aluminiumdomes ever supplied to cover steel storage tanks. The order is also the largestever dome contract in terms of square metres covered, representing aprojected covered area in excess of 333,000 sq m.The domes are scheduled to be supplied and installed in the course of 2015

and 2016. CTS will not only supply the materials but will also support theproject by mobilizing experienced supervisors and crew with all thespecialised tools required.In early 2015 CTS was awarded a contract for supplying tank seals and

Drainmaster drain systems for 12 tanks at Aramco Al Mujjaiz TerminalRehabilitation Project. This involves supplying seals for 10 tanks with adiameter of 110.8m, and two tanks with a diameter of 15.24m. CTS has been awarded many projects by Saudi Aramco for different bulk

plants. These have included the supply of primary & secondary seals for a125.57m diameter tank at Yanbu Crude Oil Terminal (YCOT) one of the largesttank terminals worldwide. The terminal has 11 floating roof storage tanks —each able to hold 1 million barrels — plus a 1.5 mmbbl tank, the largestdiameter tank in Saudi Arabia, which was added in the 1992 capacity upgrade.The total storage capacity of the crude oil tank farm is 12.5 mmbbl. CTS wasselected to supply and design the primary and secondary seal systems as wellas maintenance spare parts with seal fabric for four of Aramco’s bulk plants(Juaimah Terminal, Ras Tanura, Abha & Ain Dar).CTS has been selected as vendor for the supply of three aluminum honey

comb full contact internal floating roofs (IFR) for Ras Tanura Integrated Project(SOLUTION PE) for Sadara Chemical Company, a joint venture of SaudiAramco and the Dow Chemical Company. The project involves the

procurement and construction of a polyethylene and specialty elastomerspackage in Al-Jubail Industrial City II, in the eastern province of Saudi Arabia,where Sadara is constructing a world scale chemical complex. For the last four years, CTS has been designated by Saudi Aramco as the

supplier of choice for designing, manufacturing and installing gauge polesocks on Aramco tanks, in recognition of the company’s ability to provide atailor made design and installation service. In 2013 and 2014, CTS suppliedSaudi Aramco with twenty three covers for single pole and multiple gaugepole tanks at the Yanbu Refinery. As part of the contract, CTS has alsoprovided support for Aramco in installing the system. In recognition of CTS’s continuous support, efforts and commitment to Saudi

Aramco, CTS was given a plaque of appreciation for the second time inDecember 3013, during Saudi Aramco Technology Day at Yanbu Refinery Area.

CTS continues to flourish in Saudi Arabia

Caterpillar to supply land electric drive drilling units to UAE’s National Drilling Company (NDC)

CTS domes and parts are used in applications including storage tanks

Company News

The 3512C land electricdrive drilling module


S16 ORME 3 2015 - OMC Review_Layout 1 16/04/2015 14:12 Page 50

S16 ORME 3 2015 - OMC Review_Layout 1 16/04/2015 14:12 Page 51

OTC 2015Date: 4-7 May 2015Venue: Houston, Texas


EXHIBITION

THE OFFSHORE TECHNOLOGYConference (OTC), to be held from4-7 May 2015, will for the first timehost d5 on 8 May at the University

of Houston, Texas, USA. The organisers have also revealed the

final line-up of nine speakers for d5.Themed “The Next Big Thing,” speakers

at d5 will address the industry’s biggestcurrent and future challenges and helpidentify the next big step for the offshoreenergy industry, in the way of technologygame changers, leadership practices andcompetitive advantages.

The speakers for d5 inlude BjornLomborg, political scientist and author of thebest-selling book The SkepticalEnvironmentalist; Jane McGonigal, author ofReality Is Broken: How Games Make UsBetter and How They Can Change The World;Mike Abrashoff, former Commander of navalwarship USS Benfold; Michael Bloomfield,former NASA astronaut and ex-officiomember of the Columbia AccidentInvestigation Board; Frans Johansson, author,entrepreneur and consultant who has writtenbooks about how great ideas happen andbusiness strategies; Lisa Bodell, futurethinkfounder; Juan Enriquez, one of the world’sleading authorities on the uses and benefitsof genomic research; Avi Reichental,president and CEO of 3D Systems; andMichael Porter, Harvard professor and leadingauthority on competitive strategies forcorporations and nations.

In addition, OTC 2015 also hosted apreview webcast in March to formallyintroduce the inaugural d5 event and informpotential attendees about what theconference is about.

Steve Balint, d5 Advisory Boardchairman, said, “For more than 45 years,OTC has helped industry professionalsconnect the dots — offering technicalknowledge they can immediately apply totheir jobs. At d5, we won’t provide theconnections. We will provide the dots, andattendees will be challenged with findingways to creatively deconstruct the industry.”

Art Schroeder, d5 Program Committeechairman, added, “Technology is changingso fast outside of our industry. We aretrying to get some of that speed injectedinto our industry.”

Attendance at the annual event reached a 46-year high of 108,300 in 2014, the highest in show historyand up 3.3 per cent from the previous year

d5 will be ‘The Next Big Thing’

at OTC 2015

The event will alsooffer opportunities toconnect with thought leadersand experts from non-energyindustries to expandbusiness networks”

The annual offshore conference will inaugurate the debut eventtargeted to inspire innovations in the oil and gas industry.

S17 ORME 3 2015 - OTC Preview_Layout 1 16/04/2015 14:11 Page 52

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TRELLEBORG STRESSES THAT it isbetter to reduce total cost and improveefficiency than to buy low-cost andpotentially poorer quality products.

Fredrik Meuller, BA presidentTrelleborg Offshore & Construction, says,“It remains important to invest insolutions which will continuously deliverhigh performance over a long lifecycle, toprotect projects in the long term, even intough times.”

At OTC, Trelleborg’s on-stand expertswill demonstrate innovative solutionswhich can help operators bridge the gapbetween cost and performance. Trelleborgwill exhibit its range of innovative offshoresolutions at OTC in Hall A at stand 5541.Products include high performancepipeline protection and insulation,buoyancy, floatover technology, seals andhoses.

AT OTC 2015, Parker will unveil new solutions for building tubing systems capable of meeting theimmense challenges posed by higher pressures and corrosion mechanisms as oil and gas explorationand production move into deeper offshore environments.

The new technology will evolve the well-known ranges of small-bore tube fittings and valves fromthe Instrumentation Products Division of Parker Hannifin - the global leader in motion and controltechnologies.

Engineers constructing tubing systems for high pressure hydraulics, chemical injection systemsand other higher-pressure topside and subsea offshore applications will be presented with new tubeconnection technology that provides easy-to-apply solutions for pressures up to 15,000 or 20,000 PSI.

At pressures of 15,000 PSI and more, tubing failures can pose an enormous threat to assetintegrity. Ensuring asset integrity is a critical element of the new tube connection designs. Parker'sengineering spans the spectrum of potential failure modes - from guarding against mechanicalfailures to combating corrosion mechanisms. The new connection technology is supported byParker’s heritage of materials expertise, which provides users with the highest possible quality ofmaterials and the widest choice of corrosion resistant alloys to meet corrosion threats. Althoughmetallurgy know-how is becoming quite common on the project teams run by operators and theirengineering, procurement and construction contractors, Parker claims that it almost certainly has thebroadest and deepest understanding of metallurgy in this market today, and is ready to help userswith expert advice and education.

Parker’s Instrumentation Products Division will be exhibiting at Booth 4809.

Lowering operator costsMeeting the challeges of small-bore tubing systems fordeeper and harsher offshore environments

Trelleborg’s offshore offering

An example of a Parker fitting


The d5 event will also offer opportunitiesto connect with thought leaders and expertsfrom non-energy industries to expandbusiness networks.

OTC has also announced 17 technologiesthat will receive the Spotlight on NewTechnologySM Award. The 2015 awards willbe presented on 4 May in the NRG CenterRotunda Lobby.

Spotlight Winners for 2015:• Baker Hughes, producer of MultiNode™

all-electric intelligent well system• Cameron International, producer of Mark

IV High-Availability (HA) BOP ControlSystem

• FMC Technologies, producer of AnnulusMonitoring System

• Halliburton Energy Services, producer ofRezConnect™ Well Testing System

• Oceaneering International, producer ofDeepwater Pile Dredge

• Oceaneering International, producer ofMagna Subsea Inspection System™

• OneSubsea, producer of MultiphaseCompressor

• SBM Offshore, producer of ARCA ChainConnector

• Schlumberger, producer of GeoSpherereservoir mapping-while-drilling service

• Schlumberger, producer of Quanta Geophotorealistic reservoir geology service

• Tracerco, producer of Tracerco Discovery• Versabar, Inc., producer of VersaCutter• Weatherford, producer of Red Eye™

Subsea Water-Cut Meter • Weatherford, producer of Total Vibration

Monitor with Angular Rate Gyro• Welltec, producer of Welltec® Annular

Barrier (WAB®)

Spotlight Small Business Winners:• Fishbones, producer of Dreamliner• WiSub AS, producer of WiSub

Maelstrom™ Pinless Subsea Wet-MateConnector

The Spotlight on New TechnologyAwards — a programme for OTCexhibitors—showcase the latest and mostadvanced hardware and softwaretechnologies that are leading the industry

into the future.In support and recognition of innovative

technologies being developed by smallbusinesses, OTC has created a newSpotlight on New Technology SmallBusiness Award in 2015. The small businessapplications were evaluated using the samefive criteria above, but were also required tohave less than 300 employees.

According to Balint, “With the creationof the Small Business Awards, we arerecognising the fact that companies bothbig and small are developing innovativetechnologies and creative solutions to meetthe world’s energy demands.”

“I congratulate this year’s SpotlightAward recipients for helping the industryreduce risk and increase productivity inever-more extreme conditions,” said OTC2015 chairman Ed Stokes, adding thatcutting-edge technologies like these arealways a highlight of OTC, as theydemonstrate the ingenuity and forwardthinking that is advancing the industry tonew levels of safety, productivity andefficiency. n


S18 ORME 3 2015 - Talent Management_Layout 1 16/04/2015 14:22 Page 55


Talent Management

As the industry adjusts to low oil prices, the importance of amore sustainable resourcing strategy with a long-term outlookbecomes clear, says Petroplan’s Huw Rothwell.

OIL AND GAS firms are influenced by macroeconomicfactors and exposed to substantial levels of risk relating tomarket volatility, uncertainty, and geopolitical instability.Despite the fact they are operating in a strategic global

industry, many firms tend to be reactive. This can result in a form ofshort-termism.

Costs have increased substantially in recent years against thebackdrop of high oil prices. But when oil prices slide, there isshareholder pressure to cut costs across operations, including theworkforce. This has been illustrated by the recent oil price slump,with several international operators and service companiesannouncing job losses and cuts to contractor rates.

To date, the majority of announcements have been focusedaround mature markets with aging assets and marginal fields, suchas the UK North Sea. But the fact that this pattern has beenrepeated numerous times in recent history demonstrates thatlessons need to be learned. Other industries have developed slicker,leaner operations as part of a more sustainable strategy by seekingto drive out inefficiency in the supply chain, as opposed to cuttingthe workforce.

Some oil and gas firms are recognising that a better balancebetween contract and full time employees is required. Contractorrates have increased three times more than staff rates over the lastfive years, thus it can be more cost-effective for firms to hirecontractors as permanent employees and pay their benefits andmedical cover.

More importantly, firms are able to secure the skills andexperience they need for when new opportunities arise. Australia’sLNG boom highlights how projects can suffer from delays and costoverruns as a result of shortages in skilled labour.

Although the industry is experiencing the lowest oil prices since2009, history illustrates that boom follows bust. The cyclical nature ofthe market therefore makes it essential that oil and gas firms adopt astrategic approach to recruitment if they are to ensure they have theappropriate resources in place when oil prices recover.

Seeking the right efficienciesUnsurprisingly, efficiency and cost effectiveness are the watchwordsfor the industry today, especially for those operating marginal assetsin mature fields. Yet efficiency has been a focus for exploration &production firms for some time. Production costs have continued torise as many developments become more technically challenging,while exploration continues to move into more remote regions.

The workforce and rate cuts seen to date are hitting the supportfunctions hardest. These are the layers above operations where costpressure is being brought to bear. Yet there are other ways in whichefficiencies can be created – with the supply chain being a key area.

For example, if there is less demand for the rigs and equipmentrequired for drilling, day rates will fall and firms will have a strongernegotiating position with suppliers. This is why there has been agrowing trend for oil and gas players to recruit professionals in supplychain management, HR, and finance who are experienced in drivingefficiencies from outside of the industry. This bucks the conventional‘square pegs for square holes’ approach of only hiring individualswith a background in oil and gas.

The fact is that many back-office or support function disciplinesrequire the same skills and knowledge to drive greater operationalefficiency – irrespective of the industry in question. There are severalmajor oilfield services companies within the supply chain that areactively looking to hire people specifically for their experience in lowmargin high volume industries.

Automotive or consumer goods are examples of such industries.They have been through some tough times in recent years and havedeveloped lean and effective supply chains by necessity. This offers asharp contrast to large oil companies that have been through manyacquisitions and divestitures over the years and tend to have morecumbersome supply chains as a result.

Managing the oil & gas workforce

for long-term growth

History illustrates that boom follows bust”

Some oil and gas firms are recognising a better balance between contractand full time employees is needed (Image source: Lindsey G/Flickr)


Talent Management


Sustainable strategyIn previous years, recruiting supply chain professionals from otherindustries would have been relatively easy. In the USA for example,while the automotive and consumer goods sectors have only juststarted to rebound from the global economic downturn broughtabout by the 2008 financial crisis, the oil and gas industry has beenstrong for the last three years. Candidates have therefore found theprospect of moving into oil and gas very attractive – not only becauseit was booming, but because key locations such as Houston offer acost-effective place to live and a desirable way of life.

Ironically, the growing job market coupled with lower oil pricesmeans that the oil and gas industry is no longer such an easy sell tothese types of candidates – especially in respect of job security.Operators therefore need to be more proactive in mitigating risk byadopting a sustainable approach to managing their workforcerequirements.

This means resisting the knee-jerk reaction to make substantiallayoffs now that could prevent firms from making the type ofefficiencies that would improve shareholder return further down theline. It also means ensuring greater elasticity in the supply ofpersonnel. With the labour supply likely to fluctuate between directhire and contract during this period of uncertainty, oil and gas firmsmust partner with recruitment specialists that have equal capabilityto supply both types of personnel.

But, whilst there are plenty of large companies with a goodreputation in the contract space, there are few that can providequality talent on the permanent side too. The same applies for thoseexperienced in recruiting front-end professionals (i.e. engineers)versus support function staff. Only partners with integrated expertisecan help firms to gain more control over the supply of skilled labourand prepare for tomorrow’s opportunities, against a backdrop of aglobal skills shortage and rising demand for talent.

Managing Talent in Oil and GasThe ‘Managing Talent in Oil and Gas’ conference will be held from 17-19May at the Al Raha Beach Hotel, Abu Dhabi. It will provide a valuableplatform for talent management professionals to network, as well as todiscuss and share information and experiences. The eventencompasses a Seminar on 17 and 18 May and two interactiveworkshops on 19 May.Speakers include:

• Winifred Wolderling-Kuller, HR director MENA at GatesEngineering & Services

• Chris Shennan, global head of Oil and Gas at Hay Group• Rob Veersma, director Training & Development at GazpromInternational

• Achmad Verdiarmand, HR specialist (Rewards & Policy) atRasGas

• Vivek Sharma, country manager – Qatar at Hay Group• Wael Hatoum, partner at Bain & Company• Rajesh Kalra, HR manager at Schlumberger WesternGeco (GlobalLand Operations)

• Kanika Stephen, manager Talent Management at McDermottInternational

• Dr Shahid Mahmood, senior personnel officer at Abu Dhabi OilRefining Company (TAKREER) n

For further information see the website athttp://www.managing-talent.net.

Several companies are looking to hire people with experience in lowmargin high volume industries (Image source: BP Plc)

Oil and gas firms must partner withrecruitment specialists”

HR specialists areincreasingly important foroil and gas firms (Imagesource: Crashworks/Flickr)

Many support function disciplinesrequire the same skills to drive greaterefficiency”


Talent Management


ACCORDING TO RIGZONE’S latest Global Hiring Survey, whichpolled hiring mangers and recruiters who recruit oil and gasprofessionals across the globe from February-March 2015, manycompanies are continuing to scale back on hiring plans due toongoing market volatility and low oil prices. 47 per cent of surveyparticipants indicated that they reduced their hiring plans in thepast three months, while an additional 16 per cent said they hadhalted their hiring plans completely for the time being.

53 per cent of global hiring managers surveyed said they haddecreased their hiring plans for the next six months as a result ofthe market environment, with only 18 per cent saying that presentmarket conditions actually caused them to increase their hiringplans over this same timeframe.

For companies still in the market for talent, now is theopportune time to look, says Rigzone, with 76 per cent of globalhiring managers surveyed seeing an increase in the number ofcandidates applying for positions now as compared to threemonths ago.

Current market conditions have caused global oil and gasprofessionals to remain cautious in the negotiating process,according to the survey. More than 55 per cent of global hiringmanagers reported that they have not seen an increase in thenumber of candidates asking for more money in the last threemonths.

Rigzone survey indicates continuedscale-back in hiring

Emerson and Kuwait Oil Company sign MOU oncompetency development

The signing of the MOU

EMERSON PROCESS MANAGEMENT signed a Memorandum ofUnderstanding (MOU) with Kuwait Oil Company (KOC) in February2015, whereby it will support KOC by providing educational servicesconsulting. The two companies will work together to promoteautomation knowledge and technology transfers, identify necessarytechnical training for the company’s operations and maintenancestaff, and develop learning and development programs in order toprepare personnel for future projects.

The MOU came two years after Emerson provided acomprehensive 19-week training programme to KOC's engineers,which covered field instrumentation, the DeltaV™ automationsystem, and cyber security, as well as process control – includingadvanced control and complex control strategies. It was conductedat Emerson’s regional training centres in the USA.



HI-FORCE, THE UK’s leading manufacturer and supplier of hydraulic tools,has experienced an increase in demand for training since establishing itsstate of the art training school and tailored training packages.

Hi-Force is approved by the ECITB (Engineering Construction IndustryTraining Board) for the provision of Mechanical Joint Integrity (MJI) trainingcourses in line with industry standards and practices. With many years of‘hands on’ experience in the oil, gas and petrochemical industries, as wellas power generation and construction, Hi-Force’s ECITB approved trainershave the technical and practical knowledge and understanding to deliverthe accredited training courses, the company says. Courses are held on aregular basis and are carried out in ECITB approved training schoolslocated in the UK and the Middle East, with additional ECITB approvedtraining schools being set up in Malaysia and South Africa later this year.

The extensive Hi-Force range of first class bolting products are used todeliver the MJI training courses, as specified and required by the ECITB.The TWM and HTW range of manual torque wrenches, designed to allowbi-directional torque control, offer output torque capacities between 5 and2,000 Nm, with a choice of square drive sizes from 3/8” to 1”. In caseswhere high output torque is required, the TWS-N square drive and TWH-Nlow profile hydraulic torque wrenches are available in torque capacities upto 48,181 Nm. Operating at 700 Bar maximum pressure, all hydraulic torquewrenches are designed for fast, easy operation and allow for accurate andconsistent tightening and loosening of bolts.

Hi-Force hydraulic bolt tensioners are manufactured using Mori SeikiCNC machines, using only the highest quality materials, to ensure thetolerances needed for operating at pressures of 1,500 Bar are accurately

maintained. Available in torque capacities up to 2,649 kN, the STS topsideand SBT spring return range of bolt tensioners, suitable for imperial boltsizes up to 4” and metric bolt sizes up to M100, are specially designed foruser friendly operation in single and multi-tensioning applications.

Through investment in facilities and with the best technology and world-class manufacturing principles, quality control is assured in the Hi-Forcebrand, according to the company.

For further information, visit www.hi-force.com or contact your Hi-Force representative.

An ECITB Mechanical Joint Integrity (MJI) training course being carriedout at the Hi-Force training school in Dubai

Hi-Force experiences growing demand to deliver training

Company News


Innovations


FOLLOWING SITE TRIALS pumpingaggressive oxygen scavengingchemicals, Occidental Petroleum inOman has approved Hydra-Cellpumps, from Wanner International,for use in one of their mostdemanding applications. Dissolvedoxygen in injection water can causedestructive oxygen corrosion tometal pipes and processequipment. By-products of thiscorrosion form sludges thatcause plugging and blockages.This oxygen is generallyremoved through theintroduction of oxygenscavenging chemicals into thehigh-pressure stream.

Oxygen scavengingchemicals such as sodium andammonium bisulfites arerenowned for damaging pumps.A Hydra-Cell P200 withmechanical speed control hashowever solved the problem.The seal-less design of thismulti-diaphragm pump removed

the leakage problem completely,reducing downtime and eliminatingseal maintenance.

OXY engineers were alsoimpressed by the Hydra-Cell’s smallfootprint, its ability to handleparticulates without damage and itsability to run dry indefinitely.

Success for Hydra-Cell pumps

The Hydra-Cell pump

WELL CONTROL SCHOOL (WCS) has announced the release of itssupervisor-level IADC WellCAP® accredited coiled tubing coursethrough its e-learning programme, System 21 e-Learning. This course uses advanced instruction and workshops on pressurecontrol methodologies in coiled tubing operations. The course,designed for experienced, coiled tubing supervisors, operators andassistant operators, uses instruction and workshops to train studentsbased on the latest methodology and industry standards for wellintervention in coiled tubing operations. Participants who successfully complete and pass the course willreceive The Well Control School and IADC WellCAP® Coiled TubingSupervisor Level certifications along with 3.7 continuing educationunits (CEU). See www.wcsonlineuniveersity.com.

The course focuses on coiledtubing operations (photo: Jason B)

New coiled tubing e-learning course

GE HAS ANNOUNCED a US$100mn investment in new programmesthat are expected to further the company’s localisation efforts, buildinnovation capacity, and create jobs in advanced manufacturingand software analytics. This new investment is additional to GE’sUS$1bn commitment over the past three years in the Kingdom, andaligns the company with the country’s Vision 2024 and NinthDevelopment Plan to diversify the economy, drive industrialisationand manufacturing, and build the next generation of human capitalskill-sets in materials and data science.The research and manufacturing programmes will aim at

enhancing the energy efficiency and sustainability priorities of thecountry. In manufacturing, GE will expand its facilities in SaudiArabia for the region with the production of GE’s HA gas turbines,said to be the world’s largest and most efficient gas turbines, at GEManufacturing Technology Center in Dammam.The oil and gas facility in Dammam will include the

manufacturing of wellheads, ‘Christmas Trees’ and other pressurecontrol technologies as well as well performance services repaircapability for submersible pumps. GE is also planning a first of itskind regional LED manufacturing facility.In R&D, according to the multinational company, the

announcement places the Saudi GE Innovation Center in DhahranTechno Valley at the heart of the company’s technology innovationecosystem in the Kingdom. The programmes include a ‘Hot &Harsh’ Global Research & Development Program, Software &Analytics ‘Industrial Internet’ Lab, a GE ‘in Saudi for region’ hub forenergy efficiency technology development as well as a monitoring& diagnostics center at GE Manufacturing Technology Center.GE Chairman & CEO Jeffrey Immelt said, “We are proud to work

with our partners to co-create solutions that will find application

both in Saudi Arabia and globally. We believe that future skill-setsdemand strong capability in both software and hardware; and weare committed to delivering that to our Saudi Arabian workforceand our ecosystem of partners, such as Saudi Aramco and SaudiElectricity Company, as well as SMEs.”In addition, GE will collaborate with King Abdullah University of

Science and Technology (KAUST) on material testing andcombustion research to support the development of GE’s HA gasturbines, which will be manufactured at GE ManufacturingTechnology Center in late 2016. GE and King Fahd University ofPetroleum & Minerals (KFUPM) will also collaborate on advancedprototyping and additive manufacturing, working with the plannedstate-of-the-art Technology Advanced Prototyping Center (TAPC).The programme addresses the need to develop capabilities andskill-sets in material sciences, applied development and advancedprototyping. The partnership will also provide training, consultation,educational, supply chain and engagement support to TAPC and itsstaff at GE’s global advanced manufacturing and micro factoryfacilities.

GE’s distributed power solutions are focused on power generation at orclose to the point of use

GE invests another US$100mn in technical programmes in Saudi Arabia

S19 ORME 3 2015 - Innovs_Layout 1 16/04/2015 14:10 Page 60

Innovations


TOP OILFIELD INDUSTRIESLimited continues toexperience a demand for itsproducts and services in theregion. Top Oilfield is a MiddleEast based leader in themanufacture, supply (includingrental), repair andmaintenance of oil and gasdrilling rigs and theirassociated equipment.Established in 1995, the

company has developed awide range of specialistproducts and services which itprovides to major offshore andonshore drilling companiesthroughout the Middle East,North Africa and India. The company’s field service teams can be deployed anywhere within its

operational regions to undertake emergency or routine repairs andmaintenance within hours. Top Oilfied says that this ability to respondexpertly and rapidly has earned it an unbeatable reputation and enhancesits ability to promote other product and service lines.

Top Oilfield is a leader in themanufacture, supply, repair andmaintenance of drilling rigs (Photo: Mike Towber)

Top Oilfield continues to experiencesuccess

SAUDI LEATHER INDUSTRIES Company (SLIC) has grown tobecome a leading supplier of industrial safety and work footwearin Saudi Arabia and throughout the Gulf, Middle East and Africa.By utilising the latest technology, the company produces footwearthat is tough, comfortable and flexible to the highest levels ofquality and performance at its factory in Dammam, EasternProvince. Products meet the highest international safety

standards, with features suchas composite toes, and areguaranteed againstmanufacturing defects for aperiod of six months. SLIChas undergone several stagesof expansion to enhanceproduction capacity to coverthe growing in demand for itsproducts, and suppliescompanies such as SaudiAramco, Saudi ElectricityCompany (SEC), SABIC, SaudiArabian Airlines and LUBREFas well as the military sectorin Saudi Arabia and the Gulfstates.www.slicshoes.com

SLIC continues to experience growth

The SLIC premises in Dammam


HALLIBURTON’S MEGAFORCE™ DRILL bitwith SelectCutter™ PDC technology providesa faster rate of penetration (ROP) with longerdrilling intervals, enabling the customer todrill almost double the planned footage.

The same technology was applied to drillthrough hard, abrasive rock in a Kuwaiti field.The challenge was to drill a vertical 16-inchhole section through sandstone andlimestone. The customised bit needed toendure high abrasiveness and repel the hightorque at the bottom. The MegaForce™ drillbit’s aggressive cutting structure due to theSelectCutter™ technology kept the elementssharper for longer periods. The bit’s multi-levelforce-balancing technology, along with theoptimised dual-row cutting structure, cut a305 metre-section at an average ROP of 9.8mph and delivered the longest interval withthe fastest ROP in the field. It had to bedrilled at a faster ROP than the field best of6.1 mph. The advanced tungsten carbidematrix material reduces erosion, while themulti-level force balance increases bit stabilityduring drilling. The micro nozzles enhancefluid flow across the cutting structure. The

reduced drill bit length of MegaForce™ drillbit increases directional control.

Halliburton has also introduced theCoilComm service to help maximise wellproduction and the success rates of coiledtubing well interventions. The service allowsoperators to identify which producing zonesare benefitting from a stimulation treatmentand which are being bypassed by measuringdepth correlation and temperature profiles ina single trip down the wellbore. For jettingand underbalanced operations, the CoilCommservice allows monitoring of critical downholedata to maintain the coiled tubing and toolswithin their safe operating envelopes.

With the CoilComm service, depth can beaccurately controlled with the casing collarlocator, eliminating uncertainty about whereto perforate or set a packer. Temperature-related properties such as acid corrosionrates and chemical effectiveness can bemaintained within optimum efficiency rangesthrough real-time downhole monitoring.

CONTROLS SOUTHEAST,INCORPORATED (CSI), has announced thelaunch of its new ICOnTM DegassingSystem. Its the first in-situ degassingsystem designed for refineries and gasplants and dramatically reduces theresidual hydrogen sulfide in the liquidsulfur prior to storage or transport andwithout additional air, pressure, rotatingequipment, or waste recoveryrequirements.“ICOn is a major step forward for our

organisation and the industry in treatinghydrogen sulfide (H2S) within the Clausprocess and upstream of the sulfur pit,”said Jackson Roper, executive vice-president at CSI/AMETEK. “Operatorsstruggling with the maintenance and costlimitations of existing technologies will findICOn very beneficial for both retrofit andgreen-field applications.”Within plants and refineries, the Sulfur

Recovery Unit (SRU) converts hydrogensulfide into elemental sulfur and water viathe modified Claus process. The ICOndegassing process works within the SRUto optimise the Claus process without theneed of additional air, pressure, ejector orrotating equipment. ICOn is the first in-situdegassing process to remove the residualH2S from the elemental sulfur beforestorage, greatly reducing the risk to onsiteworkers and environmental exposure.

Halliburton drill technology ensures faster penetration

CSI unveils in-situ degassingsystem for gas plants

The matrix body of MegaForce™ drill bit is designed to staysharper longer, providing more footage at higher ROPs

SCHLUMBERGERHAS LAUNCHEDACTive OptiFIREcoiled tubing real-timeselective perforatingand activation system,which can be repeatedat different precisedepths with positiveindication of eachfiring and hydrostaticpressure control, all ina single run, savingtime and operationalcosts.

Sameh Hanna,president of WellIntervention,Schlumberger, said,“Operators currentlyhave no method forperforating multiplenon-contiguous zoneswhen deploying gunson coiled tubingwithout requiringmultiple runs or usinga CT logging reel. TheACTive OptiFIREsystem facilitatesefficient operations with fibre-optic real-time telemetry for depth correlation and selectiveactivation and confirmation.” This new technology does not require a ball drop, pressurepulse system or fluids to detonate for reduced risks during perforating. It can be used inlow pressure wells or unconsolidated reservoirs.

During lab testing, the ACTive OptiFIRE system successfully actuatedmore than 40 simulated detonators at the full temperature rating of 175ºC

Schlumberger launches new coiled tubing system


Innovations


Project DatabankCompiled by Data Media Systems

Project Facility Budget ($ US City StatusBP - Block 61 - Khazzan and Makarem Gas Fields Development Gas Field Development 24,000,000,000 Oman EPC ITBBP - Block 61 - Khazzan Gas Fields Development - Gas Field Development 15,000,000,000 Al Dahirah Engineering & ProcurementPhase 1 - OverviewBP - Block 61 - Khazzan Gas Fields Development - Gas Field Development 1,500,000,000 Al Dahirah ConstructionPhase 1 - Package 1BP - Block 61 - Khazzan Gas Fields Development - Gas Processing 1,200,000,000 Al Dahirah ConstructionPhase 1 - Package 1 - Central Processing FacilityBP - Block 61 - Khazzan Gas Fields Development - Gas Field Development 700,000,000 Al Dahirah EPC ITBPhase 1 - Package 2Buzwair Industrial Gases Factories - Oxygen 300,000,000 Sur On HoldCryogenic Gas Separation PlantCaustic Soda and Ethylene Dichloride (EDC) complex Caustic Soda 500,000,000 Salalah On HoldCircle Oil Oman - Block 49 & 52 Oilfield Development Oil & Gas Field 40,000,000 Oman Engineering & ProcurementDRPIC - Duqm Refinery & Petrochemical Complex Refinery 6,000,000,000 Duqm FEEDDRPIC - Duqm Refinery & Petrochemical Complex - Aromatics 4,500,000,000 Duqm EPC ITBPetrochemical ComplexDRPIC - Duqm Refinery - Ras Markaz Crude Oil Terminal Pipeline Oil 250,000,000 Duqm FEEDMOG - Block 18 Offshore Exploration and Production Exploration 30,000,000 Batinah EPC ITBMOG - Block 41 Offshore Exploration and Production Gas Exploration 133,000,000 Northern Oman Engineering & ProcurementMOG - Block 48 Onshore Exploration and Production Exploration 30,000,000 Al Dahirah EPC ITBMOG - Block 51 Onshore Exploration and Production Exploration 30,000,000 Northern Oman EPC ITBMOG - Block 54 Onshore Exploration and Production Exploration 50,000,000 Al Wusta EPC ITBMOG - Block 55 Onshore Exploration and Production Exploration 45,000,000 Al Wusta Engineering & ProcurementOman Gas Company - Murayrat PLS Upgrade Gas Processing 100,000,000 Adam Ad Dakhliya EPC ITBOman Gas Company - Muscat Gas Network Gas Network 100,000,000 Muscat FEED ITBOman Gas Company - Oman - Iran Subsea Natural Gas Pipeline Gas Pipeline 600,000,000 Muscat Feasibility StudyOman Gas Company - Gas 250,000,000 Duqm EPC ITBSaih Nihayda to Duqm Special Economic Zone Gas PipelineOman Gas Company - Salalah Loopline Gas Pipeline 90,000,000 Salalah EPC ITBOman Gas Company - Salalah LPG Extraction Liquefied Petroleum Gas (LPG) 100,000,000 Salalah FEEDOman Oil Company - Acetic Acid Manufacturing Plant Acetic Acid 600,000,000 Duqm Feasibility StudyOMPET - Sohar PTA/ PET Purified Terephthalic Acid (PTA) 850,000,000 Sohar EPC ITBOOCEP - Block 60 Concession - Onshore Oil & Gas Field 1,100,000,000 Oman Engineering & ProcurementOrpic - Flare Gas Recovery System 40,000,000 Sohar FEED ITBOrpic - Liwa Plastics Project (LPP) - NGL Extraction Units Natural Gas Liquefaction (NGL) 800,000,000 Sohar EPC ITBOrpic - Liwa Plastics Project (LPP) - Overview Polyethylene 3,600,000,000 Sohar EPC ITBOrpic - Liwa Plastics Project (LPP) - Polyethylene 800,000,000 Sohar EPC ITBPolyethylene and Polypropylene UnitsOrpic - Liwa Plastics Project (LPP) - Steam Cracker Ethylene 900,000,000 Sohar EPC ITBORPIC - Muscat-Sohar Product Pipeline (MSPP) Oil 320,000,000 Muscat Engineering & ProcurementORPIC - Sohar Integrated Petrochemical Complex Petrochemical Complex 1,800,000,000 Sohar FEEDORPIC - Sohar Refinery Improvement Project (SRIP) Refinery 1,500,000,000 Sohar ConstructionOTTCO - Main Line Oil - Ras Markaz Crude Oil Terminal Pipeline Oil 300,000,000 Duqm FEEDOTTCO - Ras Markaz Crude Oil Park - Crude Storage Facility Oil Storage Tanks 80,000,000 Duqm FEEDOTTCO - Ras Markaz Crude Oil Park - Export Terminal Export Terminal 400,000,000 Duqm FEEDPDO - Al Noor and Sakhiya Fields Enhanced Oil Recovery (EOR) Enhanced Oil Recovery (EOR) 47,000,000 Various PMCPDO - Amal Steam Phase 1C Surface Facilities Gas Field Development 80,000,000 Amal Oilfield DesignPDO - Budour Gas Field Development Oil Field Development 3,000,000,000 Salalah FEEDPDO - Carbon Steel pipeline from Barik to BVS-8 Gas Pipeline 50,000,000 Barik Engineering & ProcurementPDO - Gas Operators Processing Plant (GOPP) FPF (Field Processing Facility) 70,000,000 Various FEEDPDO - Ghaba North Gas Field Re-Development Gas Field Development 500,000,000 Northern Oman EPC ITBPDO - Lekhwair DME Pilot Project Enhanced Oil Recovery (EOR) 25,000,000 Lekhwair FEEDPDO - Nimr G and Karim West Water Flooding Project Water Injection 100,000,000 Nimr ConstructionPDO - Rabab-Harweel Integrated Plant (RHIP) Gas Processing 3,000,000,000 Harweel Engineering & ProcurementPDO - Saih Nihayda Condensate Stabilization Plant Gas Treatment Plant 100,000,000 Saih Nihayda ConstructionPDO - Saih Rawl Depletion Compression Phase II Gas Processing 250,000,000 Saih Rawl Engineering & ProcurementPDO - SRCPP & SNGP Condensate Recovery Maximisation Gas Processing 300,000,000 Adam Ad Dakhliya Engineering & ProcurementPDO - Yibal Depletion Compression - Phase 3 Gas Processing 300,000,000 Yibal Engineering & ProcurementPDO - Yibal Khuff Sudair Field Development Oil Field Development 3,000,000,000 Northern Oman FEEDPDO - Zauliah Gas Plant Project Gas Processing 110,000,000 Al Wusta ConstructionRAK - Block 8 Oil & Gas Field Development Gas Field 45,000,000 West Bukha ConstructionSEZAD - Duqm Liquid Jetty Export Terminal 200,000,000 Duqm FEEDTakamul Investment - Metaxylene/Purified Isophthalic Acid Plant Purified Terephthalic Acid (PTA) 500,000,000 Sohar FEEDTakamul Investment - Salalah Ammonia Plant (Luban) Ammonia 700,000,000 Salalah FEED

OIL, GAS AND PETROCHEMICALS PROJECTS - OMAN

S20 ORME 3 2015 - DMS Project_Layout 1 16/04/2015 14:09 Page 63

Project DatabankCompiled by Data Media Systems

Project Summary

Project BackgroundOMPET plans to build 1.1 million tonnes PTA and 500,000 tonnes of polyethylene terephthalate (PET) per annum plant. The project will be executed in two phases.Feedstock will be supplied by the Sohar aromatics complex owned by Oman Refineries and Petroleum Industries Company (ORPIC). Sohar port will be used forimport of plant equipment and other raw materials.

Project Status

02 Mar 2015 OMPET is targeting financial close on its PTA/PET complex by 30 June 2015. Construction work is scheduled to start before the end of 2015.

02 Mar 2015 Technology licence agreements have already been signed with Uhde Inventa-Fischer (UIF) for PET proprietary technology, and with BP for the PTAproduction know-how.

08 Feb 2015 The EPC-ITB was released. OMPET plans to award the EPC contract by June 2015.

22 Dec 2014 An invitation to prequalify for the EPC contract was issued.

30 Oct 2014 The FEED for the PTA and PET plants, and the utilities and offsite works have been completed.

28 Oct 2014 The FEED stage is almost complete. The ITB for the EPC contract is being prepared in order to be released in early 2015.

30 Mar 2014 WorleyParsons was awarded the PMC contract. WorleyParsons will also do the FEED design for the utilities & off sites.

23 Jun 2013 Majis signed a MoU with the client, Oman International Petrochemical Industry Company LLC (OMPET) (under formation), to provide them with30,500 m3/day of industrial water for the project.

14 May 2013 LG Corp. has acquired 30 per cent of shares in the Oman International Petrochemical Industry Company LLC. LG Corp bought the stake as a part of astrategy to secure supply for project.

Project Schedules

Project Name OMPET - Sohar PTA/ PET

Name of Client Oman International Petrochemical Industry Company LLC (OMPET)

Budget ($ US) 850,000,000

Facility Type Purified Terephthalic Acid (PTA)

Status EPC ITB

Start Date Q4-2012

End Date Q4-2017

FEED / PMC WorleyParsons

Award Date Q2-2015

4Q-2012 FEED 2Q-2015 Engineering & Procurement

1Q-2014 PMC 1Q-2016 Construction

2Q-2015 EPC ITB 4Q-2017 Completed

Project FocusCompiled by Data Media Systems

Project FinanceThe client is a JV of:• Oman Oil Company (OOC) - 50% • LG International (LGI) - 30% • Takamul Investment Co - 20%


Source: Baker Hughes

RIG COUNT

Middle East & North Africa The Baker Hughes Rig Count tracks industry-wide rigs engaged in drilling and related operations, which include drilling, logging, cementing,coring, well testing, waiting on weather, running casing and blowout preventer (BOP) testing.

THIS MONTH VARIANCE LAST MONTH LAST YEARCountry Land OffShore Total From Last Month Land OffShore Total Land OffShore Total

Middle EastABU DHABI 26 10 36 1 25 10 35 25 11 36DUBAI 0 2 2 0 0 2 2 0 2 2

IRAQ 57 0 57 -3 60 0 60 61 0 61

JORDAN 0 0 0 0 0 0 0 0 0 0

KUWAIT 51 0 51 4 48 0 48 45 0 45

OMAN 63 0 63 2 61 0 61 57 0 57

PAKISTAN 23 0 23 1 22 0 22 19 0 19

QATAR 3 7 10 1 2 7 9 2 7 9

SAUDI ARABIA 100 24 124 5 101 18 119 97 18 115

SUDAN 0 0 0 0 0 0 0 0 0 0

SYRIA 0 0 0 0 0 0 0 0 0 0

YEMEN 2 0 2 1 3 0 3 3 0 3

TOTAL 325 43 368 12 322 37 359 309 38 347

North AfricaALGERIA 54 0 54 7 47 0 47 49 0 49

EGYPT 39 4 43 -6 46 5 49 46 6 52

LIBYA 3 3 6 0 3 3 6 4 3 7 TUNISIA 1 0 1 -1 2 0 2 3 0 3

TOTAL 97 7 104 0 98 8 106 102 9 111


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S21 ORME 3 2015 - Arabic_Layout 1 16/04/2015 14:07 Page 66

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viding learning and ders, provant to its rea s a forum rele

-nd infore analysis ativvide the reader with authorita ll pro

ecialist 's spview Middle East is the region and Security Re

the team behind the publication now brings a forum rele

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1 8/12/12 4:14 PMS21 ORME 3 2015 - Arabic_Layout 1 16/04/2015 14:07 Page 72

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الشـــــــرق اوســــــط

تعنى بالنفط والغاز ومعالجة الهيدروكربون

القسم العربي

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LÔG∫ GEdµÎj∂ Jù°àãªô 001e∏«ƒ¿ Oh’Q ‘ Gdù°©ƒOjá ................................................................................. 7

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J«ù°Ò S°∏ù°∏á Gd≤«ªá ................................................................................................................................................................................... 9

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GJü°˘˘É’ä hJµæ˘ƒd˘ƒL˘«˘É GŸ©˘∏˘ƒe˘Éä:GCe˘˘˘ø Gd˘˘˘Ñ˘˘˘«`Éf˘˘˘Éä, GŸû°˘˘˘ÉQc˘˘˘á ‘ Gd˘˘˘Ñ˘˘˘«˘˘˘Éf˘˘˘ÉäGd†°îªá.

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

ArcelorMittal Jubail..............................................19

Bartington Instruments Ltd ..............................30

Bernekon ..................................................................27

Bulk S.r.L. ....................................................................8

CompAir ....................................................................40

Cormac Metal Spray Pty Ltd ............................61

CTS Middle East WLL ..........................................51

DMG World Media Abu Dhabi Ltd ................71

(ADIPEC 2015)

DMI International..................................................47

Emerson Process Management..........................7

Exterran Holdings, Inc ........................................29

Ferguson Group Ltd ..............................................34

Hi-Force Ltd ............................................................25

International Exhibition Services SRL ..........69

(SAOGE 2015)

J. De Jonge Flowsystems B.V. ..........................49

JESCO (Jubail Energy Services Co) ................21

Jotun Paints UAE Ltd (LLC) ..................................5

Kaeser Kompressoren FZE ................................35

KAREVA Marketing GmbH ................................31

LMKR..........................................................................23

NEOS GeoSolutions ................................................9

OKI Europe Limited ..............................................15

Oman Cement Company ......................................2

PCM Middle East FZE ..........................................33

Raccortubi Middle East FZE ..............................75

Reed Exhibitions....................................................59

(SPE Offshore Europe 2015)

Sabin Metal Corporation ....................................13

Saga PCE Pte Ltd ....................................................3

Sandvik Process Systems ..................................58

SGB Egypt ................................................................17

Shree Steel Overseas FZCO ..............................28

Sledgehammer Oil Tools Private Limited ....39

Starlink Oilfield Supplies & ............................11

Services DMCC

Suraj Limited ..........................................................37

Trans Asia Pipeline Services FZC ....................45

Tratos Cavi S.p.A. ..................................................61

ADVERTISERS INDEX


www.raccortubi.com Warehouse No. RA07AC05 P.O. Box: 17639 Jebel Ali Dubai UAE t +971 4 887 6211 f +971 4 887 6212

Production of butt weld fi ttings from ½” to 56”

from stock

Petrol Raccord member of Raccortubi Group


لـمـعـلا ىـلإ ةـجاـحــلاةيلعاـف رـثـكأو ءاـــكذـب

يف ةفلكتلا ثيح نميلاحلا وـيراـنـيسلا لـظ.طفنلا راعسأ ضافخنالثدـحأ ىــــلإ ةـــــفاضإ

طـــفنـلا عاـــطـق رـاـبـخأةقطنـم رـــبـع زاــــغـلاو.طسو#ا قرشلا


Documents

Oil Review Middle East 3 2015