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PDO to invest heavily in EOR Sudan seesaws as dispute continues The unstoppable rise of natural gas Extending field life Utilising lubricants to reduce downtime Improved measurement technologies for LNG How information management puts you in control of operational success One of the world’s largest oilfield service groups, Petrofac has carved out a special niche for itself in the Middle East. See page 46. Vol 15 Issue Four 2012 Qatar - business is booming for the king of gas UK £10, USA $16.50 15 Serving the regional oil & gas sector since 1997 years See us at the show

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PDO to invest heavily in EOR

Sudan seesaws as disputecontinues

The unstoppable rise of natural gas

Extending field life

Utilising lubricants to reducedowntime

Improved measurementtechnologies for LNG

How information management puts you in control of operational success

One of the world’s largest oilfield service groups,Petrofac has carved out a special niche for itself inthe Middle East. See page 46.

Vol 15Issue Four 2012

Qatar - businessis booming forthe king of gas

UK £10, USA $16.50

15Se

rving

the r

egion

al

oil &

gas s

ecto

r

since

199

7

year

s

Oil R

eview M

iddle East - Volum

e 15 - Issue Four 2012w

ww

.oilreview.m

e

See us at the show

ORME 4 2012 COVER_ORMETHREE05COVER.qxd 04/05/2012 10:47 Page 1

www.westerngeco.com/uniq

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S01 ORME 4 2012 Start_Layout 1 03/05/2012 14:06 Page 2

Oil Review Middle East Issue Four 2012 3

Editor’s noteFOUNDED BY QATAR Petroleum, the multipurpose development of RasLaffan Industrial City is already renowned as the world’s largestconcentration of industries and services based on natural gas. It sits almoston top of the North Field, the single largest non-associated gasfieldanywhere. Two huge LNG producers, Qatargas and RasGas, are located side-by-side adjacent to the world’s busiest LNG exporting port. Shipping-relatedengineering and services businesses are proliferating. And light industryfacilities in the neat surrounding township are growing fast, too. Behind theCity’s ambitious development plans lies a 20-year Master Plan whichinvolves a complete overhaul of the already modern port facilities and allnecessary support services. A moratorium continues in place on futuredevelopment of gas exploitation, which means no more LNG trains areexpected to be announced at present, but debottlenecking is proceedingactively at some of the older trains to increase export capacity even furtheras global demand increases – and Qatar’s reputation for reliability does thesame. With further LNG developments on hold because of the North Fieldmoratorium and the GTL industry getting close to capacity output, RasLaffan’s gas-based industries are now reaching a plateau, and the focusahead of 2022 is shifting towards further infrastructure development,services and a range of completely new support industries.

ColumnsNews 6

AnalysisSudan 14Recent fighting has damaged oil facilities in the south. What does the future hold?

Profile 18German oil and gas company Wintershall is looking to expand in the Middle East.

Exploration & ProductionDevelopments 20The latest exploration and production news from around the region.

GasAnalysis 28BP’s latest Energy Outlook report forecasts future energy trends up to 2030 andhighlights the growth of natural gas.

News 32The latest project and contract news from the regional gas sector.

PetrochemicalsInterview 36Sanjeev Sisaudia, CEO of Gulf Petrochem Group discusses the company’s expansionplans for its refining business, and much more.

Exhibitions and ConferencesSPE POCE 40Meeting global energy demand is the secondary theme for this year’s SPE Production &Operations conference/exhibition in Qatar.

Middle East Petrotech 43Established in 1996, Middle East Petrotech attracts thousands of visitors. All aspects ofrefining and related activities are being addressed this year.

ProfilesPetrofac 46One of the world’s largest oilfield service groups, Petrofac has carved out a niche foritself in the region.

Qatar Petroleum 50After breaking LNG records in recent years, Qatar Petroleum continues to expand.

Ras Laffan 57Business is booming in the world’s largest cluster of gas-related activities.

Technical FocusInnovations 60Introducing some of the latest available technologies for the oil and gas sector.

Lubricants 66The importance of lubricants in the oil and gas sector should not be underestimated,particularly as they reduce valuable downtime.

Extending Field Life 70A novel power generation technology from Maersk Oil could provide new solutions forenhanced oil recovery and unlocking stranded gas fields.

Qatar’s gas sector holds the key tothe state’s future development.Image courtesy of Qatar Petroleum

PDO to invest heavily in EOR

Sudan seesaws as dispute

continues

The unstoppable rise of natural gas

Extending field life

Utilising lubricants to reduce

downtime

Improved measurement

technologies for LNG

How information management

puts you in control of

operational success

One of the world’s largest oilfield service groups,

Petrofac has carved out a special niche for itself in

the Middle East.

See page 46.

Vol 15Issue Four 2012

Qatar - businessis booming forthe king of gas

UK £10, USA $16.50

15Se

rvin

g th

e re

gion

al

oil &

gas

sec

tor

sinc

e 19

97

year

s

See us at the show

Contents

www.oilreview.meemail: [email protected]

Measurement Technologies 72The measurement of LNG volume in ships’ tanks requires great accuraxcy.

Profile 75Dr Amer Tarraf, managing director of sensor specialist Baumer Middle East FZE, outlinesthe company’s regional aspirations.

Information TechnologyData Management 79Dirk Drozd, senior VP of Aveva Middle East, explains how information management putsyou in control of operational success.

Arabic SectionExploration & Production 4Analysis 10

Managing Editor: David Clancy

Editorial and Design team: Bob Adams, Andrew Croft, Prabhu Dev, Immanuel Devadoss,Ranganath GS, Prashant AP, Genaro Santos, Zsa Tebbit, Nicky Valsamakis and Julian Walker

Publisher: Nick Fordham Advertising Sales Director: Pallavi Pandey

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

Country Representative Telephone Fax Email

China Wang Ying (86) 10 8472 1899 (86) 10 8472 1900 [email protected] Tanmay Mishra (91) 80 65684483 (91) 80 40600791 [email protected] Bola Olowo (234) 8034349299 [email protected] Sergei Salov (7495) 540 7564 (7495) 540 7565 [email protected] Africa Annabel Marx (27) 218519017 (27) 46 624 5931 [email protected] Saida Hamad (974) 55745780 [email protected] UK Steve Thomas (44) 20 7834 7676 (44) 20 79730076 [email protected] Michael Tomashefsky (1) 203 226 2882 (1) 203 226 7447 [email protected]

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

Production: Donatella Moranelli, Nasima Osman, Nick Salt, Jeremy Walters and Sophia White -Email: [email protected]

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Chairman: Derek Fordham

Printed by: Emirates Printing Press, Dubai© Oil Review Middle East ISSN: 1464-9314 Serving the world of business

S01 ORME 4 2012 Start_Layout 1 04/05/2012 11:24 Page 3

Oil Review Middle East Issue Four 2012

RAK PETROLEUM HAS announced full year net profit for 2011 of US$4.27mn,making it the third consecutive year that the UAE company has been profitable.“During 2012, the company hasentered a new phase with ourtransformation into an energyinvestment company with exposure to17 licenses in seven countries acrossthe Middle East-North Africa region,”Bijan Mossavar-Rahmani, chairman ofthe board of directors and chiefexecutive officer of RAK Petroleum,said in a statement.Following the merger of RAKPetroleum’s operating subsidiaries intoDNO. RAK Petroleum now assumes aproportionate share of DNO’s profitand loss in its own financial results. Taking into account the company’s 30per cent share of DNO International’sprofit in 2011 of US$35mn, RAKPetroleum’s net profit from operationswas US$55.5mn.

KUWAIT ENERGY HAS signed an investment agreement with private equitymanager Abraaj Capital that will see a private equity fund used to makestrategic investments in the Kuwaiti oil company.Abraaj Capital’s investment, through its APEF IV fund, will enable KuwaitEnergy’s ongoing growth and development plans and facilitate its emergence asa regional independent exploration and production (E&P) company.Commenting on the transaction, senior partner and co-head of large cap privateEequity, Abraaj Capital, Ahmed Badreldin, said: “The growing E&P sectorpresents unique opportunities in the MENA region and the potential ofindependent sector champions such as Kuwait Energy has not been fullyexploited. Through this investment, Abraaj Capital will support Kuwait Energy’sgrowth and expansion.”Executive chairman, Kuwait Energy, Dr Mansour Aboukhamseen commented onthe deal, "Through this new partnership with Abraaj Capital, we will be stronglypositioned to realise our growth plans, which we are confident, will help usemerge as the leading independent E&P company in the region.”Kuwait Energy currently has a diverse portfolio of oil and gas assets acrossproduction, development and exploration phases, with regional operations inEgypt, Iraq, Yemen and Oman. The company is also focused on exploration,production and development of oil and gas reserves in Ukraine and Russia.

HB RENTALS HAS signed three new deals in the Middle East worth over US$1mnin 2012.

Michael Bradley, director of sales and business development at HB Rentalssaid: “The new contract wins are testament to our growing success across theGCC and the Middle East since establishing our presence here just over a yearago. We are delighted to have won such significant contracts.”

Hercules Offshore awarded HB Rentals a six to 12-month contract for itsAmber Jack self-propelled jack-up barge. The deal will see the company providefour, eight-man accommodation modules including service provision frominstallation to power generation and sewerage system.

The second new contract award is from Abu Dhabi-based National PetroleumConstruction Company (NPCC) and comprises a six-month rental agreement forfour accommodation modules including modular stairways and walkways.

The final contract was awarded by MacDermott International. The scope ofthe contract includes accommodation modules, toilets, offices for use as anemergency overnight shelter for the carousel deck of a barge currently mooredin Dubai and will be working in Saudi Arabia.

“Our focus moving forward will be continuing to deliver outstanding qualityof product as well as service to our customers, ensuring that we remain theaccommodation specialists of choice in the region. We are confident that theyear ahead will hold a continued stream of business opportunities and we lookforward to announcing further deals in the months to come,” Bradley added.

HB Rentals awarded three regional deals

THE KURDISTAN REGIONAL Government (KRG) has halted oil exportsfrom the start of April claiming that the central government in

Baghdad had not made paymentsto companies working in NorthernIraq since May 2011.In a statement the Ministry ofNatural Resources (MNR) said:“After consultation with theproducing companies, theMinistry has reluctantly decidedto halt exports until furthernotice. There have been nopayments for 10 months, nor any

indication from federal authorities that payments are forthcoming.”The MNR added that production will be diverted to the local market forprocessing and refining to generate an alternative source of cash flowfor the producing companies.“Once this non-payment situation has been resolved we will do ourutmost to increase exports above the target of 175,000 bpd includedin the 2012 Iraq budget," the ministry added.

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Bijan Mossavar-Rahmani

RAK Petroleum reports 2011 profit

Kuwait Energy agrees investment deal Oil exports from Iraqi Kurdistan halted

Tensions in Iraq are rising

S01 ORME 4 2012 Start_Layout 1 04/05/2012 10:53 Page 4

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S01 ORME 4 2012 Start_Layout 1 03/05/2012 14:06 Page 5

6

INDIA IS LOOKING to increase imports of crude oil and liquefiednatural gas (LNG) from Qatar in the future, according to thecountry’s oil minister.Jaipal Reddy, oil minister of India, was quoted by Dow Jones assaying: “India imported 5.6mn [metric] tonnes of oil from Qatar in2010-11 (fiscal year). In the years ahead, with our energyrequirements growing, we will look for larger quantities of LNG,crude oiland LPG.”Reddyadded thatIndia hadnotspecifiedyet theamount ofextrasuppliesthat wouldbe needed. “Qatar has been our trusted, friendly supplier, so we areseeking more supplies.”The report quoted Dr Mohamed bin Saleh al-Sada, minister ofenergy and industry of Qatar, as saying that Qatar was indeed“reviewing” its commitment on energy supplies to India. “We wouldlike to continue and widen our relations.”Petronet LNG, India’s main LNG importer by volume, recently statedthat it was seeking additional LNG supplies from Ras Gas. A KBalyan, managing director of Petronet, said the company wastalking to Qatar about getting an additional 2-3mn tonnes a year.The company currently imports 7.5mn tonnes of LNG from Ras Gasunder a long-term supply contract that was originally signed in1999 and amended in 2006.

SCHLUMBERGER REPORTED A rise in its Q1 profit of US$1.3 billion, a 38 percent increase from US$944 million last year

The quarterly results benefited from strong growth in oilfield services in the Gulfof Mexico, North Africa and the Middle East, in response to climbing crude prices.

Schlumberger CEO Paal Kibsgaard said in a company statement: "Our first-quarter results showed good progress driven by global exploration and deepwateractivity, underpinned by strong execution and operational excellence."

Oilfield services segment revenue was US$9.9 billion, a 22 per cent increaseyear-on-year boosted by strong double-digit revenue growth in all three sectionsof reservoir characterisation, drilling as well as production.

Schlumberger's sales fell to US$10.61 billion from US10.97 billion a yearago which can be considered as 'normal seasonal drop' but its distributionrevenue increased four per cent sequentially and 19 per cent year-on-year to hitUS$713mn, helping it sustain its international margins. The company'sWesternGeco business contributed significantly to the increase.

Schlumberger's performance in international markets remained strong, heldup by high oil prices in the quarter. Its drilling rigs outside the US and Canadaduring the quarter increased 1.2 per cent to 1,189 and with the companybelieving the drilling activity to remain robust, is expected to climb more than10 per cent this year,

Looking ahead, the oilfield service provider said, "Oil demand in 2012appears to have stabilised, and supply continues to be limited by weak non-OPEC performance and narrow spare capacity margins. These effects shouldlimit any oil-price decline."

IRAQ HAS OPENED a second single-point mooring system (SPM) off the coastof Basra that expands the oil terminal’s exporting capacity by a further900,000 bpd, an official said.The head of the South Oil Company (SOC), Dhia Jaffar, said in a statement that thefirst oil tanker berthed at the new SPM and began loading crude oil in mid-April.The second SPM raises capacity at the Basra oil terminal, Khor al-Amaya, to3.6 million bpd but neither of the two SPMs is expected to be running at fullcapacity in the immediate future.Iraq is aiming to build five SPMs at its southern ports to expand exportcapacity ultimately to 8mn bpd. A first SPM was completed in early Marchhelping to boost exports to 2.31mn bpd for March, the highest since 1990.The extra port capacity is allowing Iraq to sell more of its increasing oil output.Iraq said its southern exports averaged 1.92mn bpd in March.

Iraq expands Basra oil terminal

Petronet currently imports 7.5mn of LNG from Qatar

PETROLEUM DEVELOPMENT OMAN (PDO) has said it will investUS$20 billion over the next five years and continue its focus onEnhanced Oil Recovery (EOR) projects.PDO will embark on a five-year investment programme that willsee US$4 billion invested each year in number of oil and gasprojects, which includes its EOR activity.Speaking at the OGWA conference in Muscat, PDO managingdirector Raoul Restucci said, “Oman had entered a new stage ofunconventional gas and tight oil exploration.”Restucci explained that EOR was a very important part of PDO’soperations and that company had become a global leader in EORprocesses, having focusing on it much earlier than other NOCs.Restucci stated that PDO’s portfolio included “three EORprojects – Harweel, Qarn Alam and Marmul already completedand on production.”“There will be more and more EOR production as we goforward,” he remarked.A big part of EOR is a focus on introducing new technologies.Thanks to the introduction of polymer flooding at its Marmulreservoir over the last two years PDO has seen production hitnew levels and in 2011 Marmul’s production was the highest ithas ever been in its 30 year history.Next year PDO will commission the Al Amal steam project,which will produce 20,000 bpd, and Al Khalata as a pilotproject in the second half of 2014.According to Restucci, EOR projects are capable of producing‘incredible volumes’. The economics remain most attractiveand all PDO EOR projects continue to pass stringentinvestments tests at very low prices to ensure robustness andsustainability.Oil production from EOR was 3.5 per cent of PDO’s totalproduction in 2011 and should reach 25 per cent by 2012. It willaccount for 33 per cent of the NOC’s total production by 2025.“It is a very exciting and challenging time for Oman’s oil andgas scene,” Restucci concluded.

Oil Review Middle East Issue Four 2012

Schlumberger sees strong growth in oilfield services

PDO to invest heavily in EOR projectsIndia to import more oil and gas from Qatar

Iraq’s Khawr Al Amaya oil platform

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8

BAKER HUGHES’ FIRST quarter profit for 2012 has fallen to US$379million from US$381mn for the same period in 2011.The oilfield services company has blamed increasing costs in the USfor the fall, but said that its international performance was moreencouraging.Its revenue climbed 18 per cent to US$5.36 billion for correspondingQ1 periods for 2011and 2012, but itsoperating margindeclined to 11.7 percent from 14.1 percent for the sameperiods.International revenuefor Q1 was US$2.2billion, up byUS$291mn comparedto 2011 figures,while the company’soperating profit was US$295mn for the quarter – an increase ofUS$66mn on the same period last year.Baker Hughes president and CEO, Martin Craighead, said, “It is clearthat the overall market is experiencing pricing pressure that is likely toextend throughout 2012.“Our performance in the international markets was strong,” he added.Baker Hughes senior vice president and chief financial officer PeterRagauss added, “Our final results are better than expected due tostrong activity in Africa and the Middle East.”During the first quarter of 2012 the firm started work on its firstintegrated operations contract in Iraq, which Craighead said heexpected to see further growth from throughout the rest of the year.

IRAQ RELEASED ITS official list of approved bidders for the fourth round ofauctions for Iraqi oil fields and excluded oil giant ExxonMobil from the list.

The auction is scheduled for May and 47 companies have been approved,including UAE investment fund Mubadala and Dragon Oil, a rapidly expandingoil explorer majority-controlled by Dubai’s ENOC.

The reason for the barring of ExxonMobil was because of an earlier oil dealit agreed with the Kurdish regional government (KRG) which angered officialsfrom the central government in Baghdad who maintain that all oil contractsmust be approved by the oil ministry

The government called on Exxon to cancel its deal with the KRGcompletely but Exxon announced in March that it had only frozen theagreement.

The Petroleum Contracts and Licensing Directorate (PCLD) said in astatement that Iraq was offering 12 large exploration blocks of an average sizeof 6,500 sq-km for bidding. Winning companies, or consortia of companies, willcarry out exploration, appraisal, development and production activities withinthe 12 Contract Areas.

“We are looking forward to welcoming all participating companies inBaghdad. The fourth licensing round will be conducted in a transparent andpublic manner and according to the same procedures as the first three rounds,”said Abdul Mahdy Al-Ameedi, director general of the PCLD.

For the next licensing auction, Baghdad insists on offering service contractsthat pay companies a fixed fee for the amount of oil they produce.

The fourth oil and gas bid round has been delayed twice before and isexpected to add some 10 billion barrels of oil and some 29 trillion cubic feetof gas to Iraq's reserves.

ABU DHABI'SALMANSOORISpecialisedEngineering heldits 9th annual openday at itsMussaffah base atthe end of March.

AlMansoori'sCEO Nabil Alalawijoined more than1,000 service andindustry clients forwhat is fastbecoming a keyevent in theregion’s energy calendar.

A range of AlMansoori’s partner organisations attended the event includingCamcon Oil, Claxton, HyrdraTech, SledgeHammer, Seal-Tite International,StreamFlo, The Reach Group and Ulterra.

The day provided an opportunity for Alalawi to thank employees, suppliersand partners of the company for their support over the past 12 months.

During the open day, Alalawi said: “The business has gone from strength tostrength and we are looking forward to another successful year ahead. In thelast year we have made some significant strategic alliances, grown thebusiness, entered new markets and made improvements in terms of QHSE.”

AlMansoori hosts oilfield open day

www.bakerhughes.com

OIL REVIEW SPOKE to Endress+Hauser Group, COO MichaelZiesemer, after the inauguration of the company’s new sales centrein Saudi Arabia about how the opening represented a big stepforward for Endress+Hauser Arabia.Ziesemer discussed the significance of opening a dedicated officein Saudi Arabia which will be located in Al Khobar. The companyhas two other offices located in Riyadh and Jeddah.“It is very important since it is showing to all people in the marketour dedication to the development of the business in the Kingdomof Saudi Arabia,” he explained.Endress+Hauser’s business in the Kingdom has been steadilygrowing even before the company founded Endress+Hauser Arabiaat the beginning of the year. The demand from customers to talkand interact directly with manufacturers meant that the companyhas been looking for a while to establish a sales presence in Saudi.The new division is a joint venture between Endress+Hauser Groupand local company Anasia (Abudawood Group).“We have worked together with Anasia for more than 10 years andthis is set to continue. We appreciate very much the developmentof the market by Anasia. The relationship to Sheikh Anas AbuDawood and to Anasia was, is and will be very important to us,”said Ziesemer.The Middle East is seen as strategic region for Endress+Hauser andaccording to Ziesemer Saudi Arabia is top of the list and globally itis one of the leading hydrocarbon markets.“We see big investments as well in Qatar, Abu Dhabi and in Iraq,”he added.The company already has a sales office in Qatar and support offices inDubai and Abu Dhabi. There are also a number of resident engineersbased around the region. Ziesemer suggested that Iraq would mostlikely see the next dedicated Endress+Hauser sales centre. Ziesemer concluded: “We see huge investments in the oil andgas, and petrochemical markets and these industries will be ourmain focus.”

Oil Review Middle East Issue Four 2012

Exxon excluded from Iraq’s next oil auction

Endress+Hauser eyes Saudi marketBaker Hughes Q1 profit falls

AlMansoori shows off its services at

this year's open day

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Oil Review Middle East Issue Four 2012

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E x e c u t i v e s C a l e n d a r 2 0 1 2MAY 2012

20-23 Middle East Petrotech 2012 MANAMA www.mepetrotech.com

20-23 MEPIPES 2012 (Oil & Gas Pipelines in the ME) ABU DHABI www.theenergyexchange.co.uk

18-21 Global Water Oil & Gas Summit DUBAI www.cwcoilgasandwater.com

JUNE 2012

4-7 EAGE COPENHAGEN www.eage.org/event

4-8 World Gas Conference KUALA LUMPUR www.wgc2012.com

5-8 Caspian Oil & Gas BAKU www.caspianoil-gas.com/2012

13-14 IADC World Drilling Conference BARCELONA www.iadc.org

18-20 Iraq Petroleum 2012 LONDON www.cwciraqpetroleum.com

AUGUST 2012

28-31 Offshore Northern Seas STAVANGER www.ons.no

SEPTEMBER 2012

3-6 Erbil Oil & Gas Exhibition ERBIL www.erbiloilgas.com

24-26 SAOGE 2012 DAMMAM www.saoge.org

OCTOBER 2012

2-5 KIOGE 2012 ALMATY www.kioge.com

8-11 Gastech LONDON www.gastech.co.uk

NOVEMBER 2012

11-14 ADIPEC 2012 ABU DHABI www.adipec.com

19-22 Offshore Southeast Asia SINGAPORE www.osea-asia.com

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

WEATHERFORD INTERNATIONAL HAS reported that first quarter profit for 2012more than tripled compared to the same period in 2011 to hit US$190mn.The jump in profit was helped by higher revenues in North America and theexpectation is of strong results from the Middle East later in the year.Its Q1 2012 revenue increased to $3.6 billion, up by 26 per cent from $2.86billion during the first quarter of 2011, the company said in a statement.North America revenue for Q1 was up by 29 per cent compared to the firstquarter of 2011 and international revenue increased by 23 per cent over the

same period. Q1 revenue inMiddle East andNorth Africa (MENA)declined byUS$70mn, but itsoperating incomewas US$14mn, amincrease of 39 percent on the sameperiod last year.Weatherfordpresident and CEO,

Bernard Duroc-Danner, said he expected "MENA to improve in the second halfof 2012, from both a top line and margin standpoint. We believe moststartups in Saudi, Kuwait and Iraq will be successfully initiated."He added that Iraq "will evolve into an operation of improving profits as theyear unfolds."Duroc-Danner was less hopeful about a return to profitability in North Africa."We do not anticipate an improvement in North Africa, Libya, Algeria untillate in the year or perhaps 2013.”

JOTUN PAINTS, A leading producer and distributor of paints and powdercoatings, is making an extra effort to focus its business on meeting thedemands and requirements of Saudi Arabia’s oil and gas industry.

Jotun has vast experience in marine protection and powder coatings andhas developed an extensive range of products for protection in some of theworld’s most demanding environments, particularly offshore oil exploration.

The growing demand in the Kingdom for protective coatings has been thedriving force behind Jotun’s strategy to develop newer and highly efficientpowder coatings. Thecompany spendsheavily on research anddevelopment which hasresulted in theproduction of advancedformulations that offerresistance to corrosionand severe abrasion.

This push for astronger presence in theoil and gas segment is being led by the company’s protective coatingsdivision, which focuses on the development, manufacture and supply ofcoatings to meet the challenging needs of the oil and gas sector.

Through this division the company is able to provide maximum internaland external corrosion protection as well as temperature resistance. This isvery important in the oil and gas industry which operates under some of themost extreme weather conditions.

Jotun Paints feels it has positioned itself to meet the fast-changing globalchallenges of this technically demanding sector and believes it can be part ofSaudi’s oil and gas industry growth.

Jotun targets Saudi’s oil and gas industry

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Weatherford Q1 profit soars

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S03 ORME 4 2012 Analysis 1_Layout 1 03/05/2012 14:14 Page 13

Key oil facilities may have been damagedduring the recent conflict in Sudan.

Oil Review Middle East Issue Four 2012

OON 10 APRIL 2012, the SouthSudanese Army occupied a disputedoil field at Heglig in Sudan's SouthKordofan state.

On 17 April, Sudan carried out airstrikes ontargets in South Sudan's Unity state, which theUnited Nations (UN) said resulted in at least eightcivilian deaths and 22 injuries. The next day,President Bashir called for the 'liberation' of SouthSudan under the current leadership. We assess thatthe statement is probably aimed at appeasingdomestic dissension over the loss of Heglig toSouth Sudan rather than a genuine call to launch aprolonged war.

On 21 April, the South withdrew from Hegligafter Sudan deployed its much-superior air power toretake the oilfield, which has halted production andhas suffered collateral damage according to itsoperator Greater Nile Petroleum Operating Company.

Key alliesSudan's two major pipelines, Petrodar (running fromPalogue to Port Sudan) and the Greater Nile OilPipeline, (running from the Heglig and Unity fieldsto Port Sudan) both cross the North-South borderand risk being damaged. Since then Sudan haslaunched air strikes on the South’s oil-rich town ofBentiu, while South Sudanese proxy forces havelaunched attacks in Talodi, in Sudan.

The two sides fought a civil war from 1983-2005 and South Sudan will be reluctant to return toall-out war. It will also be keen to avoid isolatingkey allies such as the US and European Union.Furthermore, its decision to halt oil productionmeans it will struggle to pay militia forces it hasco-opted from Sudanese sponsorship.

Reluctance within Sudan for all-out war isexemplified by a January statement by 700 militaryofficers who warned the government against such amove and demanded national reforms. Instead,Sudan is more likely to rely on proxy forces inborder areas, with any ground incursions limited tothe northern states of South Sudan.

Most fighting is likely to be localised along theborder region. Sudanese air strikes are likely to focuson military and rebel positions in northern parts ofSouth Sudan (Unity, Upper Nile and Jonglei states).

However, risks of air strikes on the SouthSudanese capital, Juba, would rise in the comingweeks if Heglig is not recaptured. A further triggerfor strikes on Juba would be an offensive by South-Sudanese-backed-SRF rebels on the Sudanesecapital Khartoum; such risks will rise in the three-month outlook.

Furthermore, SRF rebels in Sudan are likely tointensify attacks in South Kordofan and Blue Nilestates, raising collateral risks to energy, transportand humanitarian operations around NubaMountains, Kadugli and al-Kurmuk. These includethe Roseires Dam on the Blue Nile.

Major damageAn escalation of fighting between the North andSouth will probably be used by Sudanese rebels toattack the Sudanese capital Khartoum, forcing theSudanese military to fight on two fronts. Any

movement toward Khartoum is likely to beimpeded by aerial bombardment by the SudaneseAir Force. This would increase the likelihood of therebels seeking to cut power supply from theRoseires Dam or halt oil flows through oil pipelines.However, the aim of such actions would be todisrupt supplies in order to put pressure on the NCP,but not inflict major damage on assets that therebels themselves would later rely on if theysucceed in seizing power.

Despite the Sudanese military's air superiority,SRF rebels are likely to use support from SouthSudan and weapons smuggled from Libya andcaptured from Sudan, which include MANPADS.

In September 2011, we noted that the successof any rebel move against Khartoum and the rulingNCP would rest on the creation of a broad-basedpolitical movement. On 14 March 2012, the SRFalliance (SPLM-N and Darfuri rebels including JEM),formed a committee with influential members ofthe opposition, namely the Democratic UnionistParty (DUP) and National Umma Party (NUP), to co-ordinate efforts towards regime change.

Previously, in May 2008, a convoy of around100 vehicles from the Darfur-based JEM rebel groupsuccessfully reached Omdurman, adjacent toKhartoum, to launch an attack that was repelled bythe army after a day of heavy fighting.

We assess that the SRF is unlikely to suspendactivity until presented with negotiations to createa government of national unity. ■

Exclusive Analysis Ltd is a specialist intelligencecompany that forecasts commercially relevantpolitical and violent risks worldwide. For additionalinformation, visit www.exclusive-analysis.com

Some oil facilities may have suffered damageduring the recent fighting

Sudan is more likely to rely onproxy forces in border areas

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Oil Review Middle East Issue Four 2012

LEADERS REPRESENTING THEIRgovernments and the international energycommunity will come together later thisyear to tackle key challenges andexamine the role for gas in the futureenergy mix.

The Gastech 2012 ConferenceProgramme will highlight the major issuesthat are defining what has been termedthe ‘Golden Age for Gas’, with keytechnical and commercial sessions. Led bythe most influential business leaders andengineering experts from across thesupply chain, the presentations will focuson a range of topics that impact thedirection the industry is headed.

Japan, the world’s largest consumer ofliquefied natural gas (LNG), featuresprominently this year, with special papers examining the impacts that lastyear’s tsunami had both commercially and technically on the Japanesegas industry. The Japan Gas Association fly to London to deliver a casestudy on the Sendai LNG terminal – damaged by the tsunami – plusGastech will welcome papers reviewing the global impact Japan’sdecision to step down its nuclear programme will have on the supply anddemand of gas. One highlight paper will be delivered by the Tokyo Gas

Company, who will present their visionand predictions for the global gas marketoutlook in 2020.

Gastech also focuses on the impactsthat low prices in North America arehaving on gas monetisation, and one keydebate will be the role of LNG versus GTL(gas-to-liquids) as producers of gas seeknew, more diverse revenue avenues otherthan their traditional power generationcustomers.

Commenting on the conferenceprogramme, Gavin Sutcliffe, head ofcontent for Gastech said: “This year’sprogramme reflects the incredible pace ofchange afoot in the global gas communityas consumption of LNG continues to grow,Asia drives demand post-Fukushima, shale

resources in China, Argentina and Eastern Europe are developed, andcredit squeezes continue to impact infrastructure and projectdevelopments. “As organisers of one of the world’s most respectedindustry programmes, our role is to bring the global gas industry togetherto discuss and debate exactly how gas can move forwards and evolve in aworld where the fuel choices between fossil, nuclear and renewablesremain undecided by many international governments.”

FUELLED BY NATIONAL oil companies andinternational buyers making acquisitions inNorth American shale gas, shale oil and tightoil basins, global transactions involvingunconventional oil and gas resources reacheda record high US$75 billion in 2011, accordingto the IHS Herold 2012 Global Upstream M&AReview, which was released by informationand analytics provider IHS. This figurerepresents 48 per cent of total 2011 worldwideupstream merger and acquisition (M&A)spending“Cross-border buyers, led by Asian-basedinvestors, continued to stream into NorthAmerican unconventional resource plays

through asset partnerships and selectcorporate deals, with a bullish view onpotential LNG exports to the Asia-Pacificregion in the coming decades,” saidChristopher Sheehan, director of energy M&Aresearch at IHS. “In 2011, high crude oil andinternational gas prices were juxtaposedagainst persistently depressed North Americannatural gas prices, leading to a 15-year high indeal counts outside North America.”Total global upstream M&A transaction value,including corporate mergers, fell 30 per centfrom an all-time high in 2010, which wasdriven by massive asset divestiture programs.Corporate deal value in 2011 rose 19 per cent

to more than US$58 billion, including BHPBilliton’s US$15 billion takeover ofunconventional resource-focused PetrohawkEnergy, the first upstream corporate mergergreater than US$10 billion since theExxonMobil-XTO deal in late 2009.Sheehan noted the deal flow also increased inall regions outside the U.S. and Canada asinternational investors pursued the prolific oildiscoveries that have occurred in recent yearsin regions such as deepwater Brazil and Africa.In Australia, the coal seam gas-to-LNG marketconsolidated further, and evolving marketssuch as Iraq’s Kurdistan region welcomed newentrants through M&A.

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Global energy leaders to discuss future of gas at Gastech 2012

Worldwide upstream oil and gas M&A unconventional resource spending reaches peak

S03 ORME 4 2012 Analysis 1_Layout 1 04/05/2012 11:50 Page 16

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S04 ORME 4 2012 Analysis 2_Layout 1 03/05/2012 14:16 Page 17

BBACK IN MAY 2010 the firm signed anMoU with Abu Dhabi National OilCompany (ADNOC), Abu Dhabi’s state-owned oil company, to develop a sour

gas field within the Emirate, marking thecompany’s return to the UAE.

Two years later, Wintershall finds itself in theprocess of negotiating a technical evaluationagreement with ADNOC before entering into thedevelopment of the field.

Wintershall executive director for explorationand production, Martin Bachmann, says thesenegotiations are looking positive and that the firmexpects the talks to come to a conclusion beforethe end of 2012.

Its entrance into the Abu Dhabi market was ofan unconventional nature and followed a proposalto develop a large sour oil field — Wintershall’sproposal, Bachmann says, was not the one ADNOCwas not looking for.

“ADNOC turned around and said that they likedthe way we approached the bid and liked ourcapabilities, and they invited us to look at adifferent opportunity,” says Bachmann.

Despite Wintershall’s previous involvement inan Offshore Dubai production project several yearsago, Bachmann describes the company’s activitiesin Abu Dhabi as representing its first “tangible”project in the UAE.

With a fully-staffed team already operational inAbu Dhabi, the company appears confident in thedirection its UAE activities are moving.

“This team has started preparations for drillingand we’re very confident that we will get goingvery soon in this regard,” remarks Bachmann.

Sensible targetsAlong with its adventures in Abu Dhabi, Wintershall iscontinuing its long association in Qatar, where it hasinvested more than US$200mn over the last 15 years.

“At the moment we’re focused on exploration inQatar and we’re spotting several exploration wellsin the area,” notes Bachmann.

If recent exploration attempts in the countryprove successful, Bachmann says that the firmwould not shy away from further investment as partof its plans for growth; he notes, however, that thefirm is attempting to grow sensibly, rather thanaggressively — especially when it comes to itsMiddle East activities.

“We’ve grown very strongly in the last couple ofyears in our established areas, such as Argentina,the Netherlands and Russia,” he remarks.

“But beyond that we are looking towards the

Middle East and we’re currently preparing theprojects for growth in the period from 2015 andbeyond,” he notes.

Post-war regenerationBachmann describes the Arab world as not theeasiest place in which to find new opportunities.

“Bahrain in a very small country so the numberof projects is limited there and in Saudi Arabia

there is simply no access to the types of fields wewould be looking for as it’s already in the hands ofSaudi Aramco,” he says.

“One country we would definitely considerworking in if the opportunity popped up is Oman,and we’ve also looked into heavy oil opportunitiesin Kuwait, which is a market that is beginning toopen up.

“We find Algeria difficult and we find the marketin Egypt a difficult one to get in – especially as wedo not want to go into deepwater drilling.

“We have, however, made a very strongcommitment to Libya and if there were additionalopportunities to invest in Libya, we would certainlypursue those,” he comments.

The company has overcome the difficulties ofworking in a country that has undergone a civilwar and resumed operations there in October oflast year.

To date, the company has rebuilt its productionlevels in Libya up to 60,000 barrels per day (bpd),

Oil Review Middle East Issue Four 2012

Wintershall has invested more than US$2mn inLibya over the past five years

“We are looking towards theMiddle East and we’recurrently preparing the

projects for growth in theperiod from 2015

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While German oil and gas company Wintershall has beenbusy expanding its operations in the past few years acrossRussia, northern Europe and South America, it has alsobeen keeping a firm eye on its activities in the Middle East

Growing in the

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but has stated that its immediate aim is to increase production within thecountry to pre-revolution levels of 100,000 bpd.

“The focus is to re-establish pre-war production and there is a clearagreement among all players, including other oil producers and the state, toachieve this as fast and as efficiently as possible,” says Wintershall Libyageneral manager Dr Uwe Salge.

Wintershall chairman of the board of executive directors Rainer Seele evendescribes Libya as a “test case” for the firm’s corporate activities in the Arabworld, and says that Wintershall’s commitment to the North African countryshould make it more attractive to potential partners across the region.

But despite announcing increasing profits for 2011 at its recent annualpress conference, the company’s overall production levels fell by 15 per cent,which Seele cites as being mainly due to the Libyan crisis.

“Our activities in Libya have always been long-term and our contacts[within the country] date to before the Gaddafi era,” says Bachmann.

“There remain certain restrictions on some of the infrastructure, which stillneeds to be overcome, but once that’s running smooth again the next stagewill come and that stage is to continue development work in the fields thathave been interrupted by the unrest,” he adds.

Innovation and investmentWintershall may have invested more than US$2mn in Libya over the past fiveyears, but Bachmann says that what makes the firm so attractive to potentialpartners in the Arab world is its ability to bring from Germany innovativetechnology and experience of working on sour gas sites.

“I think what sets us apart is technology on the one hand and our ability todemonstrate what we’re already doing on the other hand,” he remarks.

“Chemical Enhanced Oil Recovery (EOR) is one area in which we excel and,of course, we have our mother company BASF behind us with its huge chemicalresource capacity.”

Bachmann says the firm is quite advanced in the tight gas arena, and it isalso able to boast about its Schizophyllan project, which uses a fungus-derivedbiopolymer for EOR polymer injections in reservoirs.

Wintershall appears well placed to fill part of the resulting void that is beingcreated by the changing requirements of the Middle East’s oil and gas fields.

“What’s becoming increasingly more obvious in the region is that projectsin countries such as the UAE and Qatar now require companies that can goafter the more difficult hydrocarbons,” Bachmann remarks.

“Previously, Abu Dhabi left a lot of its sour gas fields alone, but now there isa real shortage of gas in Abu Dhabi so they require help with that fromcompanies with the technical expertise,” he states.

Wintershall may be busy in its traditional markets, but its innovative andtechnical abilities, combined with its record for efficiency, could see it becominga much sought-after partner in the Arab world over the next few years. ■

Oil Review Middle East Issue Four 2012 19

Wintershall has rebuilt its productionlevels in Libya by 60,000 bpd

S04 ORME 4 2012 Analysis 2_Layout 1 03/05/2012 14:17 Page 19

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THE SHAH DENIZ consortium has reached an important milestoneand approved the decision to commence Front End Engineering andDesign (FEED) on the estimated US$25 billion Shah Deniz Stage 2project. The Shah Deniz Stage 2 project will bring gas from theCaspian Sea to markets in Turkey and Europe, opening up the'Southern GasCorridor'.Achieving thisimportantmilestone allowsthe consortium tomaintain itstarget for first gasexports aroundthe end of 2017.The project is setto produce 16billion cubicmeters of gas per year. The entry into FEED represents the start of akey phase in the project during which engineering studies will berefined, further wells will be drilled, commercial agreements will befinalized and key construction contracts will commence.During the FEED phase of the project, the Shah Deniz consortiumwill finalize its selection of export routes across Turkey and intoEurope. This Stage 2 development of the Shah Deniz field, whichlies some 43 miles (70-km) offshore in the Caspian, is expected toinclude two new bridge-linked production platforms; 26 subseawells to be drilled with two semi-submersible rigs; 500-km ofsubsea pipelines built at up to 550 meters of water depth; a 16bcma upgrade for the South Caucasus Pipeline (SCP); and expansionof the Sangachal Terminal.

AFREN HAS ANNOUNCED that the high impact Simrit-2 exploration well,located on the Ain Sifni PSC in the Kurdistan region of Northern Iraq, hasdiscovered a significant oil accumulation based on the results of drilling, wireline logs and sidewall core sampling.

The objective of the Simrit-2 exploration well is to test the western extent ofthe Simrit anticline. The well has reached the prognosed total measured depthof 3,700m (3,697m true vertical depth). Preliminary analysis of data collectedduring and following drilling indicates that the well has encountered anestimated 409m of net oil pay in Cretaceous, Jurassic and Triassic age reservoirs(an estimated 312m of this pay is interpreted as containing light oil). No oilwater contact has been established in the target reservoirs.

As there are continuing strong hydrocarbon shows to the current depth of3700m, Afren and operator Hunt Oil Middle East plan to run casing at thecurrent depth and continue drilling to a new total depth of circa 3,800m to testadditional zones of prospectivity.

Once drilling operations have concluded a comprehensive well testingprogramme will be undertaken across multiple reservoir intervals, after whichthe drilling rig will be mobilised to the East Simrit Prospect to drill the Simrit-3exploration well. Afren has a 20 per cent interest in the Ain Sifni PSC and ispartnered by Hunt Oil Middle East (60 per cent. and operator) and the KurdistanRegional Government (20 per cent).

The successful result of the Simrit-2 exploration well represents a second majorexploration success for Afren this year, following on from the Okoro East discoveryoffshore southeast Nigeria. The scale of the oil column that has been intersectedsuggests that the Simrit structure and surrounding prospects elsewhere on the AinSifni PSC have the potential to be transformational for Afren'.

KUWAIT ENERGY HAS announced a new exploration success with its WestAhmad-1X oil well, located in Area A in the Gulf of Suez, Egypt, adjacent tothe Shukheir North West Field. Kuwait Energy is the operator of theconcession, in which it holds a 70 per cent working interest. The remaining 30per cent interest is held by Petrogas E&P, of Oman.

The West Ahmad-1Xwell encountered oil inthe Kareem formationandinitial tests showed aproduction flow rate of1,250 barrels of oil perday (bopd). This is thefourth exploration successin the Area A concession,and the 17th discovery inEgypt for Kuwait Energysince 2008.

Kuwait Energy ChiefOperations Officer, Mohammad Alhowqal, said: 'This is another great successin a mature field that has been producing since 1960. Our new oil discoveriesin Area A have significantly increased gross production in the area from 2,800to 7,250 bopd since commencing operatorship in 2008. We look forward tocontinued success and to reaching the maximum potential of this field.'

Egyptian operations contribute the largest share to Kuwait Energy’s currentproduction. The 2011 production level excludes the four discoveries made inthe Abu Sennan concession.

Egypt discovery for Kuwait Energy

Bringing gas from the Caspian to markets in Europe

TEST PRODUCTION FROM the Early Production System (EPS) onBlocks 3 and 4 onshore the Sultanate of Oman continues andamounted in March 2012 to 361,394 barrels of oil, correspondingto 11,658 barrels of oil per day (BOPD). Tethys’ share of theproduction, before government take, amounts to 30 per cent ofthe total, or 108,418 barrels.Long termproduction testshave been carriedout on wells fromboth the SaiwanEast oil field onBlock 4 and theFarha South oilfield on Block 3.Production ratescontinue to varydepending ontest programmedesign anda v a i l a b l ecapacity.Tethys has a 30per cent interestin Blocks 3 and 4.Partners areMitsui E&P Middle East B.V. with 20 per cent and the operator CCEnergy Development S.A.L. (Oman branch) holding the remaining50 per cent.Tethys Oil is a Swedish energy company focused on identificationand development for production of oil and natural gas assets.Tethys’ core area is the Sultanate of Oman, where the companyis the second largest onshore oil and gas concession-holder withlicence interests in three onshore blocks.

Oil Review Middle East Issue Four 2012

Afren makes discovery in Northern Iraq

Tethys increases Oman productionShah Deniz enters new development phase

www.kuwaitenergy.com.kw

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BP IS LOOKING closely at a project to revive Iraq's northern Kirkukoil field, industry sources said, as Baghdad aims to strengthen itsposition in a dispute with semi-autonomous Kurdistan overownership of northern Iraqi fields. Executives from the UK majorpaid a visit to the giant oil field and met with Iraqi officials inKirkuk at the end of March. The trip followed initial soundings fromIraq's Oil Ministry to BP about the ageing oil field, which is sufferingfrom massive declines.

'BP is actively considering Kirkuk, provided the economics work,'said an industry source. 'But it's very early days; there are nonegotiations.' Iraqi Deputy Prime Minister for Energy Hussain al-Shahristani is in London recently to attend an energy conference.Baghdad is understood to be keen to have the British oil majorpositioned in northern Iraq to counter the recent controversial moveby US major ExxonMobil into Kurdistan, according to Westerndiplomats and Iraqi industry sources. The Kurdistan RegionalGovernment (KRG) and Baghdad are locked in a long-running feudover oil and land rights. 'The central government has introduced anew element - the BP factor - which raises the level of debate overKirkuk,' said an Iraqi oil executive.Baghdad was furious last year when ExxonMobil announced anexploration deal with the Kurds. It considers any oil contracts struckwith the KRG to be illegal. Baghdad threatened to bar Exxon fromfuture deals and even to reconsider its role at Iraq's southern WestQurna-1 oil field.

DNO announced that it has completed drilling of the Peshkabir-1 explorationwell in the Kurdistan Region of Iraq and is preparing to test observed oil showsacross three potentially producing intervals. Full and sidewall cores suggest acontinuous hydrodynamic column within the cretaceous interval and theadditional shows in the jurassic and triassic are the first encountered by thecompany at lower depths in the Tawke license.

The Peshkabir-1 well was designed to probe a large undrilled feature west ofthe currently producing Tawke field. It reached total depth of 4,092 meters, thedeepest well yet for the company in Iraq. The well was spud in September2011. Wireline logging and coring operations are underway and will be followedby a minimum of five planned flow tests, two in the Triassic, one in the Jurassicand two in the cretaceous.

In providing further updates on drilling and other operations across itsportfolio, the company announced that the Tawke-15 well, drilled andcompleted in the cretaceous in 2011 but previously shut in due to lowproductivity, has now tested 7,000 barrels of oil per day following a just-completed workover operation. The well has been connected to the existingpipeline and processing facilities, further boosting Tawke field deliverability.

A third well, the Tawke-14 well is drilling ahead of schedule at over 5,906feet (1,800 meters). The well is located within the northern flank of the field andis another of the planned 2012 wells designed to confirm and delineate thepotential of the cretaceous in an untested up-structure location. The well isexpected to reach a total depth of 8,743 feet (2,665 meters) in Q2 of 2012."

"Operations on the Tawke field continue according to plan and we are ontrack to increase capacity to 100,000 barrels of oil per day by the end of 2012,”said company spokesman.

BADR EL DIN Petroleum Company (Bapetco) has concluded the drilling of twonew developmental wells in its Western Desert concession area as part of itsdevelopment plan for the 2011-2012 fiscal year.

Egypt Oil and Gas reportedly has learned that one of the new wells,dubbed BED-128, was drilled using the EDC-52 rig to the depth of 10,420 feet,with drilling costs reaching US$3.320mn. The new oil-producing well hasbeen added to the company’s overall production numbers.

The other well, named SITRAB-18, was drilled using the EDC-72 rig to adepth of 11,530 feet. Costs of the operation amounted to US$2.75mn.

During the previous fiscal year, Bapetco successfully drilled 34 wells, andthe company is looking to drill 44 exploratory and developmental wells in thecurrent fiscal year 2011-2012 in order to boost total production of crude oiland natural gas.

The company’s production rates during the month of February 2012 stoodat 1,126,540 barrels of crude oil and 2,118,393 cubic feet of natural gas.

Badr El Din Petroleum is a joint venture company between the EgyptianGeneral Petroleum Corporation (EGPC) and Royal Dutch Shell.

Bapetco expands Western Desert drilling

Al Shahristani

THE NATIONAL DRILLING Company of Iran has put into operation thethird drilling rig at the North Azadegan oil field, southwest of thecountry. The company plans to launch four drilling rigs at the oil field,according to Shana news agency.The Azadegan oil field is located close to the Iraqi border. The fieldholds around 33.2 billion barrels of in-situ oil deposit, of which 5.2billion barrels are recoverable. Oil Minister Rostam Qasemi said inAugust 2011 that the Iranian government should consider plans for thedevelopment of joint oil fields in the border areas with Iraq.The government should increase the budgets for the development ofjoint oil fields, Qasemi added. The oil industry's infrastructure needsmore than 500 trillion rials (about US$41 billion) of investment toachieve objectives of the 20-Year Outlook Plan, which ends in 2025,Qasemi was quoted as saying.

Oil Review Middle East Issue Four 2012

DNO completes drilling of Tawke well

Iran commissions third Azadegan rig

Iraq wants BP to revive Kirkuk field

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CHINOOK ENERGY ANNOUNCED that the BJA 2 exploration well, located on theSud Remada permit onshore Tunisia, was plugged and abandoned on April 15,2012 after reaching a total depth of 1,702 metres.

The Ordovician reservoirs were encountered structurally lower than forecastand were wet. The BJA 2 well fulfills all outstanding exploratory drillingcommitments on the permit and the partners will incorporate the well resultsbefore proposing the next exploration location planned for later this year orearly 2013.

The Foradex 14 drilling rig will begin moving to the TT16 horizontaldevelopment well on the Bir Ben Tartar (BBT) Concession within the next 10days. The TT16 well is the first horizontal test on the BBT field and is planned tohave a 1,000 metre horizontal section followed by an eight stage completion.Drilling and completion operations are expected to commence within 25 daysand be completed in June.

Partners in the BJA 2 well and the upcoming TT16 horizontal well areChinook (86 per cent), through an indirect wholly-owned subsidiary, and CygamEnergy (14 per cent), through its subsidiary.

Tunisian well disappoints Chinook

S05 ORME 4 2012 E&P 1_Layout 1 03/05/2012 14:17 Page 22

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AN EXTENSIVE WELL testing programme, commenced in December2011 after Shaikan-4 had drilled to a total depth of 3,387 metres.Preliminary results of the drilling operations were a significantcontribution to the new data used by Dynamic Global Advisors(DGA), independent Houston-based exploration consultants, tocalculate an addition of over three billion barrels of gross oil-in-place volumes for the Shaikan discovery announced in November2011.In the course of theShaikan-4 well testingprogramme the companyhas conducted sevenwell tests in all targetformations in the Triassic(Kurre Chine-A, KurreChine-B and KurreChine-C), Jurassic(Butmah and Lower andUpper Sargelu) andCretaceous (Chia Gara).Additionally, theCompany has performedan acidization and retestof the Sargelu formationinterval as part of the well completion process.As a result of the Shaikan-4 well testing programme, the companyhas achieved total maximum aggregate flow rates of 24,000 barrelsof oil per day. Following the conclusion of the Shaikan-4 well testing programme,the well is being completed as a producer and will be tied to theShaikan-1 and Shaikan-3 Extended Well Test facility.

DNO INTERNATIONAL HAS signed an amended concession agreement with theGovernment of the Emirate of Ras Al Khaimah, RAK Gas and Dahan Petroleumgranting Dahan exploration rights to certain outlying areas of the Salehconcession in exchange for Dahan covering the cost of DNO International's andRAK Gas' participation in such exploration program.

Dahan has 12 months to conduct a technical review of existing data and toacquire 3D seismic data, following which it can elect to drill, at its sole riskand expense, an exploratory well in the acreage surrounding, but not including,the Saleh field. The amended concession agreement provides that DNOInternational would have a 16 per cent carried interest in such exploratorywell. Dahan has the option to drill additional exploratory wells in thedesignated areas with DNO International retaining the option to continue its16 per cent carried interest on each such well or to participate instead at 40per cent on a paying basis.

The ownership participating interests and other fiscal and operating terms ofthe concession area containing the Saleh field remain unchanged, with DNOInternational holding 70 per cent and RAK Gas the remaining 30 per cent.

'We are pleased that Dahan is enthusiastic about the offshore potential ofthe Emirate of Ras Al Khaimah and will conduct an exploration programmedesigned to give us a fresh look at the area surrounding the Saleh field,' saidDavid Thorpe, General Manager of DNO Ras Al Khaimah. 'If a discovery ismade, we intend for it to be tied back to our existing platform and pipelinefacilities, enhancing the commerciality of the planned Saleh re-developmentproject,' he added.

TETHYS PETROLEUM HAS received permission for the extension of the Akkulkaexploration contract in Kazakhstan where the company is currently appraisingthe high potential Doris oil discovery and also where it has several excitingexploration targets. The key points are:6 Two year extension to comprehen-

sively appraise Doris commercial oildiscovery and enable further highimpact exploration on the AkkulkaBlock;

6 Retention of exploration prospectsrecently identified using the re-cently interpreted 3D and 2D seis-mic data;

6 Several prospects identified on seis-mic data including Dodone, Daphneand prospects at Triassic levelwhere oil shows have already beenencountered;

6 New Resource report due May 2012 including Doris and recently identifiedprospects;

6 Next appraisal/exploration well to spud mid-year to target channel sand sys-tem and high potential Dyna sand prospect;

6 Additional exploration/appraisal prospects have been identified using the re-cently interpreted 3D and 2D data. This data has led to the identification of anumber of other attractive exploration prospects at the Doris reservoir levelsand other horizons. All these will be included in the new resource report.

Extension granted in Kazakhstan

www.gulfkeystone.com

BP HAS RAISED its estimates of the gas reserves potential of itsBlock 61 concession in central Oman to a staggering 100 trillioncubic feet (TCF).This figure represents a three-fold jump over the company'sprevious estimate of 30 TCF, making the concession -- whichholds the prodigious Khazzan-Makarem gasfields - potentiallyone of the richest gas blocks in the Sultanate. Furthermore, ifproven to be commercially exploitable, Block 61 could yieldmassive volumes of natural gas that will fuel Oman's industrialand economic development well into the future.Confirming the revised estimates of the block's gas reservespotential, Daniel Blanchard, BP Oman's new General Manager,said: "The block potentially has 100 TCF based on our studies."He attributed the jump from the previous estimate of 30 TCF toa "better understanding of the block, better understanding ofthe deep reservoirs, and continuing interpretation of the seismicdata that we have."Speaking to the Oman Observer, Blanchard said BP Exploration(Epsilon) Ltd - Oman Branch, continued to make excellentheadway in appraising the potential of the Khazzan gasfield -currently the focus of the international oil major's efforts."The Khazzan project is progressing very well. We are goingthrough a series of internal reviews on the projectdevelopment, and also in parallel, having conversations withthe government around the commercial negotiations as well.On both fronts, we are making great progress, and this is verypositive for the company, and a very positive project for theSultanate of Oman."BP is investing hundreds of millions of dollars during the currentexploration and appraisal stage in targeting gas trapped in tightrock at depths ranging from 4,500 to 5,000 metres.Appraisal gas currently being produced by BP as part of its EarlyWell Testing (EWT) programme is pumped into the governmentgas grid.

Oil Review Middle East Issue Four 2012

Amended concession agreementoffshore RAK

BP raises Oman gas reserves estimateGulf Keystone happy with Shaikan-4

Tethys talks of‘excitingopportunities’in Kazakhstan

E&

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S06 ORME 4 2012 E&P 2_Layout 1 03/05/2012 14:19 Page 24

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26

SEA DRAGON ENERGY announced that the West Al Baraka-2 exploratorywell, the first well of the 2012 drilling campaign, was successfully drilled toa total depth of 4,070 feet in the basement. The West Al Baraka structure islocated nine kilometers to the southwest of Al Baraka oil field. The WAB-2wellencounteredoil shows inthe Abu Ballassand and theSix Hills Freservoirs,both zones areproductive inAl Barakaoilfield.Petrophysicalanalysisindicated oilsaturations inthe primarytarget being the Abu Ballas sand. The Six Hills F sand was perforated andtested but was found wet. A bridge plug was set at 2,230 feet and the AbuBallas sand was selectively perforated in the interval 2,085-2,164 feet. Thewell was tested for a short period and 37 degree API oil was recovered atsurface with no water. The Abu Ballas sand is productive in Al Baraka oilfieldand requires hydraulic fracturing stimulation to improve productivity. In orderto establish the well productivity, a decision was made to release the rig andwork on designing an appropriate hydraulic fracturing program. Twopreviously drilled wells on the structure also encountered oil shows in theAbu Ballas Formation but were not tested.

The forward plan is to integrate the WAB-2 well information with therecently reprocessed seismic to finalize mapping of the West Al Barakastructure, estimate reserves, develop an appraisal program and apply for adevelopment lease.

LUKOIL STARTED PRODUCTION drilling and construction of a key productionfacility, namely a Central Processing Facility, at the West Qurna-2 field inIraq recently.

Abdel Karim al-Luaibi, the Iraqi Oil Minister, and also the heads of the Basraprovince, Iraq's South Oil Company, LUKOIL Overseas and of the majorcontractor companies Baker Hughes and Samsung Engineering all participatedin the festive ceremony dedicated to the occasion. As part of this drillingproject, 23 directional wells will be constructed. Drilling operations will occursimultaneously at five well pads by means of state-of-the-art diesel electricunits with a bearing capacity of 450 tons, which allows workers to drill wells asdeep as 5,000 meters without equipment remounting. The units are speciallymodified to be promptly relocated within the well pads under the cluster sliderrig scheme. Later the drilling operations will be conducted at the other four wellpads with similar units. The Central Processing Facility will be constructed alongwith the facilities for well pads infrastructure development and oil gatheringlines, as well as the water and power supply systems, shift camp and a numberof other infrastructure and support facilities.

'We have opened the active field development stage today. Upon reachingthe production volume of 150,000 barrels per day LUKOIL will receive the rightto reimburse expenses and receive remuneration. After the initial expenses arereimbursed, the project will turn into a self-financing entity. The totalinvestments in the full-scale project implementation will come to around USD25 billion,' Vagit Alekperov, OAO LUKOIL President, said.

The West Qurna-2 field, discovered in 1973 with the help of Sovietgeologists, is the world's second largest undeveloped field with recoverable oilreserves of around 14 billion barrels. The field, covering an area of 340 sq-km, islocated 65-km to the north-west of Basra, a major seaport.

CANADA-BASED OIL EXPLORER WesternZagros Resources said it discoveredmore oil in the Kurdamir-2 well in the Kurdistan region of northern Iraq,sending the company's shares up 10 per cent.

The company raised itsestimate for meancontingent resources by400 per cent to 147mnbarrels of oil, and for meanprospective resources byabout 300 per cent to 1.2billion barrels ofrecoverable oil at theKurdamir-2 block'sOligocene reservoir.

Contingent resourcesrefer to potentiallyrecoverable oil fromknown accumulations that

may not yet be viable for commercial development.Prospective resources refer to potentially recoverable petroleum from

unknown accumulations that a company can drill from an oilfield.WesternZagros, which along with other junior explorers such as Longford

Energy is active in Iraq's Kurdistan region, said the Kurdamir-2 wellencountered a 118-meter light oil column with no interference of water.

‘The oil reservoir of the Kurdamir structure extends further than thearea previously assessed,’ said Simon Hatfield, WesternZagros's ChiefExecutive Officer.

Northern Iraq success for Western Zagros

www.seadragonenergy.com

IRAQ, WHICH IS currently producing more than three millionbarrels of crude oil per day, will increase its capacity ofproduction to more than 10mn barrels a day in the next six years."This is to assure the world market that there is sufficient crudefor them," Iraqi Deputy Prime Minister for Energy Hussain AlShahristani said at a special briefing after the inaugural meetingof the U.S.-Iraq Joint Co-ordinating Committee on Energy at theDepartment of Energy, Washington, DC, recently."We'd like Iraq to be considered as a dependable long-termsupplier of world energy needs, whether oil or gas, and thereshould not be concerns of shortages in the supply in the nearfuture," he told reporters.Shahristani said Iraq would make a decision and announce beforethe year-end its production targets for the coming years. Iraq'senergy chief said the government had developed infrastructure toenable it to handle more exports to the world market. Iraq hasalready signed 12 contracts for its 12 oilfields and three gasfields, which together have the potential to drill about 12mnbarrels per day."Iraq is called upon to cater for the world energy needs in thecoming years, and it is expected that the world will need moreenergy, more hydrocarbon energy, in the coming two to threedecades, and Iraq is uniquely positioned to be able to provide theworld with its incremental energy needs. That's why we haveinvited the international oil companies to work with us to developthe Iraqi resources, and the work has started based on thecontracts which they signed two years ago. And the production isalready increasing, and so are our exports," Shahristani said.Many countries in the Middle East and in Europe are lookingtowards Iraq to cater to their gas needs. Shahristani made it clearthat "Iraq is very much interested to be a partner and a supplierof gas to not only our Arab neighbors but also to the Europeancountries and the world at large."

Oil Review Middle East Issue Four 2012

Lukoil now active at West Qurna-2

Iraq could triple output in six yearsSea Dragon discovers oil at Al Baraka

www.westernzagros.com

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S06 ORME 4 2012 E&P 2_Layout 1 03/05/2012 14:19 Page 26

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S07 ORME 4 2012 Gas Feature_Layout 1 03/05/2012 14:20 Page 27

Oil Review Middle East Issue Four 2012

GGLOBAL ENERGY DEMAND is likely togrow by 39 per cent by 2030, or 1.6per cent annually, almost entirely innon-OECD countries. During this time

natural gas is projected to be the fastest growingfossil fuel globally at a rate of 2.1 per cent annually.

The BP report suggests that demand for gas willprimarily come from non-OECD countries which willaccount for 80 per cent of global gas demand growthwith Asia and the Middle East the two fastest regions.

China will play a major part in the demand forgas and the country will contribute 23 per cent tothe global demand increase. Gas use in China inthe period will grow rapidly by 7.6 per centannually so that by 2030 gas usage in the countrywill be 46 Bcf/d, equal to that of the EU in 2010.

BP says it expects to see steady progress inlongstanding efforts to displace oil with gas and toimprove the efficiency of energy use within theregion. Saudi Arabian, Iraqi, and regional productionof gas-related liquids will dominate supply growthas the region’s share of global oil supply rises to 34per cent by 2030.

On the gas supply side the main regionalcontributors to growth will come from the MiddleEast region which BP forecasts will see 26 per centof global growth by 2030.

Liquefied Natural Gas (LNG) will represent agrowing share of gas supply. Global LNG supply isprojected by BP to grow 4.5 per cent annually to2030, more than twice as fast as total global gasproduction and faster than inter-regional pipelinetrade. LNG will contribute 25 per cent of globalsupply growth from 2010-30, compared to 19 percent for the period 1990-2010.

Proven reservesThe world had 6,609 Tcf of proved gas reserves in2010, which BP claims is sufficient for 59 years of

production at current levels. Unconventionalsremain to be appraised in detail globally, butcurrent estimates suggest that they could be asmuch as double this R/P ratio.

In fact, unconventional gas will play a moredominant role in the global energy mix, especiallyin North America and Asia where unconventionalreserves will play an increasing role.

North America’s production by 2030 will bedominated by shale gas and coal bed methane(CBM) with both gases set to account for 63 per

Non-OECD countries will drive natural gas growth

Global energy demand islikely to grow by 39 per cent

by 2030, or 1.6 per centannually, almost entirely in

non-OECD countries

Gas

28

BP’s 2012 Energy Outlook 2030 forecasts future energy trends for the period 2011-2030 and highlights the growing rise of natural gas as a less carbon-intensive fuel inthe global energy mix and the region’s key role in supporting this rise

The unstoppable rise of

natural gas

S07 ORME 4 2012 Gas Feature_Layout 1 03/05/2012 14:20 Page 28

S07 ORME 4 2012 Gas Feature_Layout 1 03/05/2012 14:20 Page 29

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cent of production. The sustained growth of shalegas raises the possibility that North America couldexport LNG by 2030 of 5 Bcf/d.

China will be Asia’s main market forunconventionals as gas production in the country isprojected to grow 6.1 per cent annually with shalegas and CBM likely to contribute 46 per cent to thegrowth. But China will see have a rising need forimports which will only be met by expansion ofLNG and pipeline projects.

Outside North America, unconventionals arestill in their infancy, according to BP. But in thelong term they are expected to play a growing rolebut only after technical and regulatory hurdles havebeen overcome. BP does not see any majorunconventional production in Europe until 2020.

Middle East’s key roleThe region’s role in global oil markets is set toincrease considerably as gas supply rises in thefuture to meet domestic demand. The growing

energy demand will be driven by the oil and gasneeds of the industrial sector for petrochemicals andthe expansion in energy-intensive LNG production.

The region continues to rely on oil and naturalgas for nearly all of its energy demand. Thecontinuation of long-standing efforts to displace oilconsumption with gas (to sustain oil exports) willcontinue to boost gas’ market share from 21 percent in 1970, to 48 per cent in 2010, and 55 percent in 2030, according to BP.

Currently oil constitutes 74 per cent of the

region’s energy production, but will drop to 67 percent by 2030 as gas production expands. But thiswill not stop the expansion of oil supply between2010 to 2030, which is expected to expand by 10Mbd. Gas production is set to increase by 41 Bcf/d.

In the region, Saudi Arabia and Iraq willdominate the oil supply growth and in gasproduction the market will be driven by Qatar, Iraqand Saudi Arabia. Importantly, BP expects theregion’s share of global supply will increase to 34per cent for oil and to 18 per cent for gas (from 29per cent and 14 per cent today).

While there are large supply increases in bothoil and gas, the impact on the region’s exportsdiffers between the two fuels. Middle East oilexports currently supply 22 per cent of globaldemand. This share is set to rise to 25 per cent by2030. For gas exports, the region only accounts for 2 per cent of global demand today and this willonly increase to 3 per cent in 2030, as incrementalgrowth is consumed locally.

If the development of gas resources fails tomaterialise, additional oil will be required to fillthe void.

BP’s 2012 Energy Outlook 2030 stated:“Failure to develop gas resources and/or toimprove oil intensity will weigh on the region’sability to deliver the expected supplies to globaloil markets.” ■

Oil Review Middle East Issue Four 2012

Gas

30

The supply of natural gas in the region will rise

Oil constitutes 74 per cent ofthe region’s energy

production, but will drop to67 per cent by 2030 as gas

production expands

S07 ORME 4 2012 Gas Feature_Layout 1 03/05/2012 14:20 Page 30

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S08 ORME 4 2012 Gas News_Layout 1 03/05/2012 14:26 Page 31

32

THE SHAH FIELD development is on track to be completed by 2014and it will help meet the UAE’s growing gas demand, said the CEOof Abu Dhabi Gas Development Company (Al Hosn Gas).CEO Saif Al Ghafli, said that the Shah gas field development was“one of the most ambitious sour gas projects ever commissioned”and confirmed that it was on track for completion in 2014, reportedGulf News.The upstream sour feed gases, along with the volumes of processedgas and produced sulphur, will set a new global benchmark for thegas processing and sulphur recovery industry, according to Al Ghafli.The project will involve construction of several gas gatheringsystems, new gas and liquid pipelines, and processing trains. Thedevelopment is expected to produce significant amounts ofcondensate and NGL [natural gas liquids].When the field is operational it expects to deliver gas at a rate of200 bcf/year.

The Shah field development will contribute to UAE’s supply sidewhich will help meet increasing demand for gas. Abu Dhabi has beengetting its gas supplies through the Dolphin gas pipeline, which is setto continue.

SAUDI ARAMCO'S FIRST non-associated offshore gas field development KaranGas Project successfully started operations at its gas processing facilities inKhursaniyah seven weeks ahead of schedule.

The completion of the project ahead of time is another milestone for theKaran Gas Project as the Kingdom seeks to produce more gas to run powerplants and save crude for export.

With a fully functional gas-treating train and a sulfur recovery train, theSecond Phase of the project is almost complete. "The Khursaniyah Gas Plant(KGP) can now process one billion standard cubic feet per day (scfd) of non-associated gas from the Karan offshore field," Aramco said in a statement.

During the First Phase, the offshore gas was processed at KGP's existingassociated gas processing facilities but the new gas trains are now solelydedicated to processing the gas internally.

The company hopes to add two additional gas trains by the second quarterof 2012 that will bring the gas processing capabilities at KGP to 1.8 billion scfd.

At the Karan offshore field, one tie-in platform and three production platformcomplexes are ready, with a fifth platform scheduled to be operational in thethird quarter of 2012.

The platforms are remotely operated and controlled from Khursaniyah. Fromthe tie-in platform, the gas is sent, via an underwater trunk line, to the onshoreprocessing facilities at Khursaniyah. Hydrogen sulfide, carbon dioxide and waterare removed from the feed gas stream in the gas-treating trains. The hydrogensulfide and carbon dioxide are directed to the sulfur recovery unit where thehydrogen sulfide is converted to elemental sulfur.

Aramco had started producing about 400 million scfd of gas from Karan lastJuly to help meet the local fuel demand.

ABU DHABI GAS Liquefaction Ltd (ADGAS) has awarded internationalengineering specialists AMEC an emission reduction contract for its flaring andemission reduction operation.

The project managementconsultancy (PMC) servicedeal will cover the Front EndEngineering Design (FEED)phase of ADGAS's project atits Liquefied Natural Gasfacilities on Das Island, UAE.

"I am delighted that weare able to support ADGAS indelivering an importantproject in one of AMEC'sstrategic growth regions,"said AMEC Middle East,Africa and CIS vice presidentAlan McLean.

"This award recognisesnot only our PMCcapabilities, but also ourworld-class emissions-reduction expertise."

The agreement, for which the value has not been disclosed, was awardedfor a 10-month period and would see ADGAS further reduce carbon dioxide andsulphur dioxide emissions at the LNG plant on Das Island.

AMEC wins ADGAS contract

The Shah sour gas project will help meetlocal demand for gas

IRAN HAS OFFERED US$500mn, double its earlieroffer, to help Pakistan finish building a plannedcross-country gas pipeline between bothcountries.

Pakistan and Iran in 2010 agreed to build a2,775 km pipeline between Assaluyeh insouthern Iran to Pakistan. Of the total, 900 kmwill run in Pakistan's territory and the estimatedcost to build this section is around US$1.5 billion.

Iran had initially offered to provide US$250mnfor the project but has now doubled this to helpthe project develop faster.

"Iran is willing to raise its offer to speed upstart of the project," the Pakistan petroleum

ministry official was quoted by Fars News Agencyas saying.

The proposed cross-country pipeline has beenin state of limbo since the Industrial andCommercial Bank of China in March backed awayfrom funding the project. Pakistan also approachedRussia's Gazprom in March to invest in the pipelineproject.

Pakistan's Petroleum and Natural ResourcesMinistry has issued pre-qualification ofengineering, procurement, construction andcommissioning tender for the project.

Pakistan has itself been under pressure fromthe US to abandon the Iran gas pipeline project,

but has maintained that it will pursue it as it isvital to meeting the country's energy needs.

Pakistan is facing a severe gas shortage and hasso far been unwilling to give up the 1 Bcf/d of gasIran has agreed to supply it through the pipeline.

Iran and Pakistan are also due to holdnegotiations soon on the supply of 70,000-80,000bpd of Iranian crude to Pakistan. For Pakistan, thecrude supply deal will help boost the operatingrates of its refineries from the current 65 per centto 70 per cent of capacity.

Pakistan imports around 220,000 bpd of crudeoil, with Kuwait, Saudi Arabia and Qatar its mainsuppliers.

Oil Review Middle East Issue Four 2012

Aramco's Karan Gas Project gets a head start

Iran offers US500mn for Pakistan gas pipeline

Shah gas field project on schedule

Flaring

Gas

S08 ORME 4 2012 Gas News_Layout 1 03/05/2012 14:26 Page 32

005

S08 ORME 4 2012 Gas News_Layout 1 03/05/2012 14:26 Page 33

34

DOLPHIN ENERGY HAS issued a tender for an Engineering,Procurement and Construction (EPC) contract to upgrade compressionfacilities at its gas plant in Ras Laffan Industrial City, Qatar.The Abu Dhabi-based company confirmed that a number of firmshad responded to the invitation and that a few had already beenshortlisted. The EPC tender follows Dolphin's successful US$1.3billion bond issue."The move will help ensure the continuous supply of natural gas tothe UnitedArab Emiratesand Oman byincreasing theoverallreliability andavailability ofDolphin's gascompressionfacilities," thecompany saidin astatement.DolphinEnergy has already awarded a contract to Rolls Royce Dresser tosupply three new gas compressors with gas turbine drivers.The company denied media reports that it would increasethroughput to 3 billion scf/day in 2015, claiming that "such reportswere entirely incorrect".Dolphin Energy is a joint venture that transports gas from Qatar'soffshore North Field via a subsea pipeline to the UAE and Oman.

OMAN’S GOVERNMENT IS looking at the possibility of merging two ofOman’s LNG firms, Oman LNG and Qalhat LNG, into one company thatwould boost Oman's LNG brand worldwide.

Any potential merger would not only cut costs, but could also addressperceptions of competition between the two state-owned LNG firms.

Oman LNG was formed in 1994 to run two gas liquefaction trains at itsSur plant and Qalhat LNG was formed in 2003 to run the plant's third train.

CEO of Oman LNG, Dr Brian Buckley, was quoted by Muscat Daily assaying that, “the government of Oman has approached the shareholders ofthe two companies on the possibility of merging the management of thetwo companies. There have been some preliminary evaluations of thisproposal that are now being considered by the shareholders of Oman LNGand Qalhat LNG.”

He added, "The government has expressed its interest in identifyingpotential synergies in such a merger, such as reducing costs andpresenting a more united LNG face to the outside world."

Buckley explained that current agreements with importers will remainunaffected by any potential merger.

"The government and the two companies have given assurances to theexisting buyers of LNG from Oman that any merger of the management ofthe two companies will in no way affect the commitments made undertheir long-term sales and purchase agreements with Oman LNG andQalhat LNG," he noted.

Major long-term overseas buyers of Oman LNG's gas are Korea GasCorporation, Osaka Gas of Japan and Itochu Corporation. Overseas buyersfrom Qalhat LNG include Spain's Union Fenosa Gas, Mitsubishi Corp andOsaka Gas.

TENDERS FOR OFFSHORE exploratory drilling in Lebanon has been delayedagain but seismic tests suggest increasingly large potential gas reserves,according to the country’s energy and water minister.

Lebanon had aimed to launch tenders for exploration drilling by the end ofMarch but that has been pushed back till later in the year.

The ministerGebran Bassilwants to establishan oil and gasoversightcommittee firstbefore issuing anyexploration tenders.

According toReuters, Bassilstated that delaysin establishing anadministrativestate oil body wereholding up plans to

launch the tenders. He did not set a new target date for the licensing round.Twenty-seven companies have bought seismic surveys of the coastal

waters, and a number have expressed interest in drilling including UK’s CairnEnergy and Genel.

“Between the 2-D and the 3-D surveys we confirmed additional quantitiesthree to five times higher in the survey areas. There is a high possibility of verypromising commercial quantities of gas,” Bassil said.

Lebanon delays gas licensing round

The Dolphin gas project

BP HAS RAISED its estimates of the gas reserves potential of itsBlock 61 concession in Oman, according to BP Oman's generalmanager.The UK oil giant now believes that the potential gas reservescould be nearer 100 trillion cubic feet (TCF) which is three timesas much as the original estimate of 30 TCF.Confirming the revised estimates of the block's gas reservespotential, BP Oman's general manager, Daniel Blanchard, said:"The block potentially has 100 TCF based on our studies," quotedOman Daily Observer.The Block 61 concession holds the Khazzan and Makarem fields.Both fields have gas in place ranging from 70 to 130 trillion cubicfeet. The full field development of the resource, if it goes ahead,will involve drilling around 300 wells. The first phase of theproject will target reserves of up to eight trillion cubic feet withfirst gas delivered in 2016. With full field development, BP would look to achieve productionof around 1.2 billion cubic feet of gas per day – equivalent toabout a 33 per cent increase in domestic supply.Blanchard attributed the jump from the previous estimate of 30TCF to a "better understanding of the block, better understandingof the deep reservoirs, and continuing interpretation of theseismic data that we have."BP has been operating a pilot Extended Well Test (EWT) atKhazzan since March 2011, helping to demonstrate the potentialof a much larger scale development.Appraisal gas currently being produced by BP as part of its EWTprogramme is pumped into the government gas grid."The EWT is strictly there to test different parts of the reservoir,so it's not a production focused operation. Maximum productionout of four wells that we've been producing is 20-30 millionstandard cubic feet per day. Our target is testing the various wellsand getting a deeper understanding of the reservoir and reservoirquality," Blanchard added.

Oil Review Middle East Issue Four 2012

Two Omani LNG firms could merge

BP raises gas reserves estimates at Block 61Dolphin Energy issues tender for gas plant contract

Lebanon potentially has alarge amount of gas offshore

Gas

S08 ORME 4 2012 Gas News_Layout 1 03/05/2012 14:26 Page 34

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

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

• Tested by worldwide cementing companies

• Easy to disperse resulting in considerable cost savings

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

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

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

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S09 ORME 4 2012 Petrochemicals_Layout 1 03/05/2012 14:36 Page 35

Oil Review Middle East Issue Four 2012

GGULF PETROCHEM GROUP was founded in 1998 and specialises in oil refining, oil storage terminals and oil trading & bunkering.

“Our core competencies lie in oil and assuch, our key focus will remain on growth andexpansion across various verticals of the oilindustry,” said Sisaudia.

Gulf Petrochem does not trade crude oil andinstead focuses on refined products such asnaphtha, fuel oil and bitumen, with some of theproducts produced from its two refineries whichtogether have a capacity of 500 tonnes a day.

Target marketsThe company has established a strong globalreach and already has a presence in South Asia,Far East Asia, Africa and Europe. The companyintends to “move ahead with global expansionplans through trading offices in Geneva, India,Singapore and UAE,” explained Sisaudia.

The trading offices allow the group to seekopportunities in global markets and thecompany is aggressively expanding towardsAsian, African and other global growth markets,according to Sisaudia.

China, Hong Kong and South East Asia areparticularly attractive markets for GulfPetrochem because of the huge demand forpetroleum products in the Asian region.

Sisaudia talked about the importance of theUAE and Gulf region which “remain significantto our long-term growth plans.” GulfPetrochem has established an office in Dubaito better attract and pursue opportunities inthe UAE and across the region.

Europe is also a target market with theGeneva trading office catering to the Europeanand Russian markets.

Refining growthOn the refining side of the business thecompany operates a 60,000-metric tonnefacility in the Hamriyah Free Zone in Sharjahwhich is capable of storing various grades ofoils.

Sisaudia stated: “We are planning to expandour refinery capacities in Hamriyah in terms ofstorage and we are also considering coming upwith similar refining facilities at otherlocations.”

There are also plans to build a new 4.5kmpipeline from the main Hamriyah port to itsstorage terminal, which would allow it to take

delivery from larger ships that are restricted tothe deeper harbour further out.

The refining business is important andallows the UAE firm to work with a widespectrum of feedstock and finished products,which are not only sold locally but are alsosold to other markets in the region, South Asiaand Far East.

The other main expansion project that GulfPetrochem is working on is the upgrade of itsstorage terminal in Fujairah with the first phaseof its 1.2 million cubic meter storage terminalis on track for completion in September 2012.

“We will focus on our Fujairah Oil Terminalduring the second half of 2012. The terminalwill help us leverage the strategic location andinfrastructure of Fujairah to better serve ourclients in the region,” said Sisaudia.

The storage terminal under construction atFujairah will consist of 112,233 sqm, whichincludes up to 73,269 sqm of expansioncapability. It currently offers a capacity ofapproximately 350,000 cubic meters.

The first phase will expand the storagecapacity to 412,000 cubic meters.And future expansions will furtherexpand the capacity to 1.2million cubic meters.

The two oil terminal berthsoff Fujairah port togetheroffer seven berths for largetankers and 12 berths forsmall tankers. Terminal 1has a maximum draft of14 meters and a wharflength of 847 meters. Thesecond terminal has amaximum draft of 18meters and a wharflength of 1,400 meters.

Sisaudia added that, “Fujairah is veryimportant in our growth plans because of itsstrategic location and infrastructure. Itsgeographical location makes it an importantarea for the business.”

Global trading“A comprehensive global growth strategy inplace that will leverage our network ofstrategic storage spaces to engage into bulktrading of petroleum products on a globalscale,” stated Sisaudia.

Oil trading operations are run out of thecompany’s main trading offices in Dubai,Mumbai, Delhi and Singapore and are anintegral part of the company’s global growthstrategy.

Sisaudia sees “immense growth potentialfor oil trading in the region.”

Gulf Research Centre research suggest thatthe GCC will continue to grow in importance as

Sanjeev Sisaudia

The company hasestablished a strong global

reach and already has apresence in South Asia,

Far East Asia, Africa and Europe

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Oil Review spoke to CEO, Gulf Petrochem Group, Sanjeev Sisaudia, about thecompany’s expansions plans for its refining business and oil storage terminals in theUAE and its growing global reach

Providing refined products to a

global audience

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an economic and trading hub and by 2020 theGCC is expected to become a US$2 trillioneconomy, exporting nearly a quarter of theworld’s oil.

“This is one of the reasons why we haveestablished an office in Dubai as the city’sstrategic location gives us greater flexibility toexpand our oil trading business and to betterserve our customers in the region,” addedSisaudia.

Gulf Petrochem is also looking to expand itsbitumen, base oil and bunkering business. Itprovides a bunkering service to ships callinginto UAE ports. Currently, Gulf Petrochem andits subsidiaries cater to various ports in UAEand India with plans to forge into variousglobal markets.

“With our focus on the bunkering businessand its rapid growth, we are consideringacquiring new vessels this year,” said Sisaudia.

Alongside the expansion projects going onin the UAE the company is also focusing ontheir other on-going terminal projects inPipavav, India and Port Klang, Malaysia.

The oil and gas terminal at Pipavav port inGujarat is also under construction with initialcapacity of 318,000 cubic meters comprisingFuel oil, CBFS, Marine Diesel Oil, Bitumen, RPO.It is expected to be commissioned by Q4 2012.

The company finalised a lease agreementwith West Ports, Malaysia to construct an oilterminal in Port Klang, Malaysia with acapacity of 150,000 cubic meters of Edible Oiland Fuel Oil for Bunkering. It is set to becompeted by Q4 2012.

Sisaudia concluded: “This year, GulfPetrochem will be focusing on the challengesof keeping up with the pace of our rapidexpansion, managing the diverse globalworkforce and the changing economic andpolitical conditions across the globe.” ■

Oil Review Middle East Issue Four 2012

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Gulf Petrochem's refineryin Sharjah

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SAUDI BASIC INDUSTRIES Corporation (Sabic) has begun work on aUS$100mn technology centre in Shanghai, focusing on alternativeenergy and new materials for the construction and auto sectors.Sabic's chief executive Mohamed Al Mady said the centre wouldfocus on helping design and create next generation alternativeenergy vehicles.It is part of a wider expansion that includes a polycarbonateproduction complex in Tianjin, a city in northeastern China as part ofits joint venture with Sinopec, Asia's biggest refiner.The company, which manufactures fertilisers, metals andpolymers, has seen strong sales and solid profits on the back ofhigher oil prices.Sabic is one of the world's largest chemical producers and itsinvestments in China are part of a bigger energy partnership thatincludes a buildup of jointly run refineries as well aspetrochemicals plants.The development of China's electronics, automotive, building

materials and new energy sectors is boosting demand forpolycarbonates and other engineering plastics.China produced only 220,000 tonnes of polycarbonate in 2010,importing most of the 1.13mn tonnes consumed by its industries.Even as China's growth slows, its national economic plans call fornurturing various 'new industries' such as renewable energy andelectric vehicles.'Material sustainability is key to the creation of new applicationsacross industries,' Saudi Prince Saud bin Abdullah bin Thenayan AlSaud said during the Shanghai groundbreaking ceremony.The new research centre, in Shanghai's developing research hub ofKangqiao, will share Sabic's research, design and production capacitywith Chinese industries, he said.With environmental sustainability in mind, the centre will bebuilt with the highest global green standards in line with theguidance by the Leadership in Energy and Environment DesignGold Certification.

Sabic starts work on technology centre

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BAHRAIN REFINERY REPORTED an overallannual output of 96.026mn barrels last yearexceeding the projected production by 50,000barrels despite the ongoing unrest in theKingdom.The National Oil and Gas Authority (Noga)released the updated figures in its annualreport for 2011.Bahrain's annual imports of Saudi crude oil forrefining topped 79.263mn barrels last year.The annual output of crude oil from AbuSa'afa field topped 53.936mn barrels lastyear.

The Noga 2011 statistical survey alsoreported an output of 15.516mn barrelsfrom Bahrain Oil Field.Tatweer Petroleum Company has succeededin increasing the output of crude oil fromBahrain Oil Field by up to 50 per cent sinceits inception in 2009.The Gulf Petrochemicals IndustriesCompany reported an all-time high outputof urea.The Bahrain National Gas Company's outputof propane, butane and naphtha also soaredby 4.3 per cent compared with 2010 results.

Overall local sales of oil by-products topped8.787mn barrels, with airport sales reaching4.604mn barrels.

AQUATECH, A GLOBAL specialist in water purification technology forindustrial and infrastructure markets, has won an order for ademineralizing plant for IBN Rushd, a Saudi Arabia Basic IndustriesCorporation (SABIC) affiliate petrochemical facility, in Yanbu, Kingdom ofSaudi Arabia.The technology supplied by Aquatech is a mixed bed demineralizer of130 cubic meters per hour capacity. The plant will treat desalinated waterand convert it to demineralized water for downstream use as boiler feedwater. The treated water will have 0.1 Msiem/cm conductivity, and silicalevels of less than 0.1 ppm.This is a repeat order for Aquatech, which had supplied a similar plant ofthree mixed bed units for the same facility in 1995. As part of theexpansion plans, the two new units supplied by Aquatech will beconsolidated with the earlier units.The plant is expected to be completed around early 2013.Aquatech has recently worked with several SABIC affiliates, includingUnited Petrochemicals, PetroKemya, and Sharq."This project demonstrates our wide range of water purificationsolutions and our expertise in the industrial sector," said Vikrant Sarin,Manager - Technical & Business Development (Industrial Solutions),Aquatech Eastern (FZE).This recent win further consolidates Aquatech's presence in the oil andgas, chemicals and petrochemicals arena, particularly in Asia, where thecompany is executing several projects in these sectors throughout India,the Middle East, and China.

IRAQ IS LOOKING to gradually privatise its oil refineries and to attractinvestment in new plants around the country, its deputy oil minister saidrecently. Domestic demand for fuel is rising fast in Iraq as in other majorMiddle East oil exporters such as Saudi Arabia. Baghdad, which is boosting itsoil production, is also pushing ahead with downstream expansion to end costlyfuel imports.

"We would like to see theprivate sector increase its role,"Deputy Oil Minister Ahmad AlShamma said at a conference inLondon. "You shouldn't have theministry of trade buying and sellingcommodities; it's out of date."

He added: "We are looking tocomplete renovation of old refineriesand privatise them gradually. That'sthe ultimate goal."

Demand for products comingfrom refineries is growing fast, both

internationally and at home, the deputy minister said. "Domestic demand isincreasing rapidly. People are driving around at midnight, when a few years agothere was an effective curfew at 6pm."

Through improvements at existing refineries, Iraq aims to increase itscapacity to 610,000 bpd by the end of 2012 from 567,000 bpd in 2011, AlShamma said. Its target for next year is 750,000 bpd.

Iraq seeks to privatise refineries

Bahrain’s refining plans have been unaffected by the unrest

Oil Review Middle East Issue Four 2012

Aquatech to demineralize Saudi plant

Bahrain Refinery sees record production

Wanted -investors

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Oil Review Middle East Issue Four 2012

THE MIDDLE EAST is seeking a gradualmovement away from its dependency on oiland gas production to diversify its economyand create a positive environment for thedevelopment of its plastics industry,according to a new report by industryintelligence company GlobalData.The new report* suggests that the region hasbeen witness to the emergence of animpressive petrochemicals industry in thelast decade, which is now the mostcompetitive in the world thanks to its low-cost feedstock advantage. However, theregion is now taking steps to establish astronger downstream petrochemicalindustry, attempting to replicate thisprevious success in order to achieve evenhigher profits. The region has long soughtdiversification in its economies, which areextremely dependent on oil production andexports. Many countries derive a significantportion of their gross domestic product(GDP) from petroleum exports, anddependency on the oil sector has led to their

vulnerability to the frequent fluctuations incrude oil prices. This exposure to economicinstability has driven many countries toattempt to diversify their sources of incomeby establishing petrochemical industries.

The region’s basic petrochemical industrywas boosted at the start of the decade whenproducers began receiving ethane feedstockat subsidized prices, which led to lowerproduction costs, making the Middle Eastthe hub of the global basic petrochemicalindustry. Continuous government supporthas seen foreign investments welcomed andhigher efficiency achieved through theintegration of petrochemical operations with

refinery operations previously undergovernment control. During 2000-2011, thebasic petrochemicals capacity in the MiddleEast reached 46.61 MMtpa, growing at aCAGR of 11.1 per cent. A strong basicpetrochemical industry will serve as afeedstock provider for the downstreamindustry, with its cost advantage directlytransfered to the downstream industry. Thefocus on the downstream petrochemicalindustry will also help the Middle East tooffset the competition it faces from China inthe basic petrochemical market, which iscurrently suffering from over-capacity. TheMiddle Eastern plastics processing industrywill be a big winner from its drive todiversify its economy. While the region has athriving plastic resin production market, itsplastic processing industry is very small andscattered. To encourage domesticprocessing, many countries in the regionplan to start cluster programs, which willallow plastics processors to establish a unitin a polymer park.

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Diversification away from oil is key

Oil loses out to plastics as region diversifies

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Oil Review Middle East Issue Four 2012

RRECENTLY ANNOUNCED AS the event’songoing home, the SPE’s biennialInternational Production & OperationsConference & Exhibition (POCE 2012)

runs from 14-16 May in the Qatar NationalConvention Centre.

POCE alternates every other year with theSociety of Petroleum Engineers’ PO Symposium inOklahoma. With a huge programme of events inmany countries SPE is easily the world’s largestinternational organisation for oil/gas engineers,managers, scientists and other professionals.Headquartered in Texas it operates locally out ofDubai (contact details below).

All events including the associated specialisedexhibition this year are being hosted by the localNOC, Qatar Petroleum – which of course hasmany international interests - and sponsored byAfren, ConocoPhillips, Saudi Aramco and Total. Alltake place under the patronage of the Energy &Industry Ministry and its head, HE Dr MohammedSaleh Al Sada.

The main conference theme – there will benearly 30 technical presentations in all, preciselytimetabled on the relevant “Schedule Overview”page of the website and detailed much furtherelsewhere – is listed as Production optimisationchallenges. Total attendance of around 1200delegates in all is confidently expected at the foursimultaneous tracks arranged by SPE, whichbroadly cover:6 Production optimisation6 Process optimisation6 Facilities management6 HSEQ and sustainable development

The whole three-day sequence of eventsincluding additional incorporated midway PosterSessions is being chaired this year by the local NOC’sDirector of Operations, Said Mubarak Al Mohannadi.

The conference itself commences with a seriesof all-day training courses offered on the 13th;delegates pay fees according to their participationin a wide range of optional features like thesewhich also include local field trips on this day. Thesix training themes on offer this year cover:6 Introduction to geomechanics in E&P6 Artificial lift systems overview6 Maximising cased hole asset integrity6 Basic oil field corrosion and control via chemical

solutions6 Well stimulation – Past, present and future chal-

lenges6 Transient well testing

The neatest way to sum up the whole events’multiple themes under the overall optimisationbanner is to list and detail in brief the individualPanel Sessions which will front each major divisionof the active session days available. Most details ofpanellists appearing can be found on the websiteunder ‘schedule/panel_sessions.php’

On the 14th these will cover ‘RedefiningNOC/IOC/service provider relationships’ and‘Human capital development’ (both in the pm slot).SPE points out in its pre-conference briefingmaterial that relationships between serviceproviders and client companies have been“redefined as the respective power and levers havebeen redistributed” by the change in marketconditions.

“Both production and service companies need tocollaborate with universities and other educationalinstitutions to attract new students … and furthertrain and develop those who are already working inthe industry.” This is a worldwide problem fromwhich the Middle East is certainly not immune.

Tuesday’s sessions will be on the optimisationsub-themes of ‘Strategies and technology for fast-tracking field development’ (10.00hrs-11.30) and‘Operations and maintenance strategies to optimisevalue’ (13.30-15.00hrs).

This pair of sessions will examine the problemsthat arise from increasing reliance being placed ontight gas, shale gas and HPHT reservoirs, for which“technology is evolving quickly and bringing a new

dimension to overall drilling, completion andstimulation strategies” with a necessary emphasisas always on the multi-disciplinary approach.

Other difficult operating environments will beaddressed in the second of these sessions which willtry to solicit the appropriate different approaches,techniques, tactics and strategies applied by bothoperators and service companies alike.

The final day’s single panel session (am) willcover ‘Carbon management: Problem andopportunity’. This team will look at current globaland regional efforts to regulate emissions of carbondioxide and explore the technologies beingdeveloped to capture and store this greenhouse gasin a way that will not break the bank. The topicscovered will include the recently developedunorthodox prospects for moving carbon around theworld in converted LNG and LPG vessels, but all thetraditional solutions such as on-site undergroundstorage in depleted reservoirs will be dealt with, too.

In short, if optimisation of either production orprocessing is your professional field within anybranch of the oil and gas industries then thisyear’s SPE POCE events in Doha are the ones toattend, with the facility for choosing and payingfor precisely the information package that suitsyour needs. ■

For more information visitwww.spe.org/events/poce/2012 or call the Societyin Dubai on +971 4 457 5800 ([email protected])

http://www.spe.org/events/poce/2012/

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Meeting global energy demand is the secondary theme for this year’s SPE Production& Operations conference/exhibition in Qatar.

Meeting global

energy demand

S10 ORME 4 2012 SPE - MEP_Layout 1 03/05/2012 14:38 Page 40

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S10 ORME 4 2012 SPE - MEP_Layout 1 03/05/2012 14:38 Page 42

TTHIS YEAR’S EDITION of the biennial Middle East Petrotech Conference & Exhibition takes place in Bahrain from20-23 May (the exhibition opens on

the May 21st). As usual all aspects ofdownstream activities in and beyond the Gulfwill be covered.

Details of the technical conference werebeing finalised as we went to press (visitwww.mepetrotech.com, more than 100 technicalpresentations are expected) but the key themesto be covered by the 8th Middle East Refining &Petrochemicals event will include:

Refining and petrochemicals technologies:Local and global business opportunities abound,and their examination highlights the impact ofglobalisation in all downstream activities.Developments in downstream technology aredesigned to create added value.

“To leverage these,” the conferenceorganisers say, “the refining and petrochemsindustry demands suitable technologies forhigher efficiency and lower energy demands,better utilisation of raw materials andequipment, improved corrosion control, andcleaner fuels/the environment.

“New technologies, improvements inexisting ones and proven process systems willprovide the means to address the increasedcompetitiveness experienced in the refining andpetrochemical industries.”

Investing in plants of the future: Populationand more energy-intensive lifestyles willpredictably lead to increased demand for fuels.So investing in downstream facilities bringschallenges that the industry is constantlyaddressing.

“The refining and petrochemical industry isalways seeking investments in new andinnovative technologies to gain a competitiveedge and create additional value.”

Locally and globally a large number ofbrand-new facilities are incorporating the latesttechnologies and “tweaks” that will provideadvantages in product yield, higherreliability/availability, lower energy use and analtogether cleaner environment.

Developing people utilising world-class HRprocesses: High product demand and industrialexpansion in MENA coupled with an ageingworkforce “results in the need for effective andinnovative approaches for developing highperformers throughout our organisations.” Key to

success with this worldwide phenomenon willbe the ability to transfer knowledge efficientlyto the required large numbers of new localemployees, over the next five years at least.

New methodologies in operations,maintenance and engineering will be needed,involving new approaches to training,motivation, developing collaborative teamworkand appropriate leadership styles.

Themes that will be discussed at thisconference will include world-class HRprocesses, sharing of case studies and examplesof best practice, and standards of HRdevelopment generally.

Downstream industry best practices inHealth, Safety and the Environment: EffectiveHSE management systems are essential to thesurvival of any company involved indownstream activities or their supply. “Acompany’s most valuable assets are its people,”the organisers say.

“In all areas voluntary performanceimprovement beyond compliance is becomingthe rule rather than the exception … companiescontinue to strive for that ‘next level’ ofperformance.

“You are invited to share best-practiceapproaches in all areas of HSE.”

To support these major themes with theirassociated introductory plenary sessions therewill be keynote speeches delivered by Bahrain’sEnergy Minister and Kuwait Petroleum’s CEO; inaddition a special appearance will be made bythe well-known Futurist Dr Graeme Codrington,addressing delegates on ‘The new world of work’.

Important addresses will be made by seniorrepresentatives of the local NOC Bapco, SaudiAramco, Qatar Shell GTL, Honeywell ProcessSolutions and a host of other well known namesfrom the industry, commerce and thedownstream-related institutions.

Oil Review Middle East Issue Four 2012

www.mepetrotech.com

The 2010 combined event attracted more than120 exhibiting companiesfrom 24 countries in all, with a total exhibitionattendance of 2,400

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Established in 1996, Middle East Petrotech attracts over3,100 visitors. All aspects of refining and related activitiesare being addressed at this year’s show

Leading downstream event

returns

SPECIALSUPPLEMENT

S10 ORME 4 2012 SPE - MEP_Layout 1 03/05/2012 14:38 Page 43

The 2010 combined event attracted more than 120 exhibitingcompanies from 24 countries in all, with a total exhibition attendance of2,400. In addition there were nearly 750 delegates who attended thetechnical conference. Attendees from the Kingdom itself and across theKing Fahad causeway in Saudi Arabia where so much of Bahrain’s refiningbusiness emanates, outnumbered all the rest by a wide margin.

Visitors expected this year include senior oil/petrochemical managers,engineers of all sorts, R&D specialists, project construction managers,safety and HSE personnel.

Conference Chairman Abdulaziz M. Al-Judaimi, VP/Chemicals at SaudiAramco, describes this year’s events as the “most prestigious refining andpetrochemicals conference and exhibition in the region”, an “exceptionalnetworking, business and educational event [which] offers something foreveryone interested in the future of the Middle East’s downstreamhydrocarbon industry”.

Referring to the importance of downstream activities generally theorganisers point out that globally a “long list of refining projects, totallingalmost 9mn bpd of distillation capacity” are currently slated, with theMiddle East’s slice of this active engineering and construction businessamounting to 1.6mn. The time frame cited for this is 2010-2015.

Notable local announcements include no less than three brand-newplants across the border by Saudi Aramco (at Jubail, Yanbu and Jazan). Inaddition, SABIC and ExxonMobil are progressing an elastomers project atthe first of these locations.

Under the “expansion” category they list phase II of the Kingdom’sPetro Rabigh complex, phases V/VI of Qafco’s ammonia-based fertiliserexpansion, and the nearby second phase of QPC’s Ras Laffan refinery.

In the UAE, phase III of Borouge’s Ruwais is being progressed, while inthe east Oman’s Octal Petrochemicals PET plant is being expanded. And of

course Bapco itself is expanding its own refining operations.In short, as the organisers Arabian Exhibition Management point out,

“This wave of investment in the Middle East is creating a wealth ofbusiness opportunities for suppliers and partners.” The eighth MEPetrotech, the 'ideal meeting place for the oil and gas industry', is wherethe latest technologies and innovations will be heard about first. ■

Most details are on the website cited but for more information callArabian Exhibition management/Allworld Exhibitions on +973 17 550033or Overseas Exhibition Services on +4420 7840 2137

Oil Review Middle East Issue Four 2012

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S11 ORME 4 2012 Petrofac_Layout 1 03/05/2012 14:39 Page 45

Oil Review Middle East Issue Four 2012

TTHE UK-LISTED COMPANY, which nowranks among the FTSE 100, a measure ifits impressive growth over the pastdecade, has paid special attention to the

oil-rich Gulf region.And in recent years this has meant targeting

new business potential in an emerging Iraq, whereupstream business is now moving at pace.

In 2010, it began working for Shell on themighty Majnoon field development.

The company is also part of a team working onan inspection, maintenance and repair job at thesuper-giant Rumaila oilfield.

This field, dubbed Iraq’s ‘workhorse’, accountsfor nearly half the nation’s crude oil output.

Then, in February, Petrofac consolidated thisgrowing position in Iraq by landing a US$330mnproject for Gazprom at the Badra oilfield.

The lump-sum engineering, procurement andconstruction contract - its first lump-sum EPCproject in the country - is due to be completed inthe second half of 2015.

Petrofac’s senior management still seeimmense potential in this aspiring market.

“Iraq represents a sizeable market opportunityfor Petrofac,” said Marwan Chedid, chief executiveof the group’s Engineering, Construction, Operations& Maintenance (ECOM) division, after announcingthe Badra contract, “and our Basra office iscontinuing to expand as we develop our presencein the country.”

Global presenceBut it is not just Iraq and the Gulf where thismultinational operation has a presence in theMiddle East region.

In 2011, one of the company’s highlights wasthe completion of the Jihar gas plant in Syria,

among other assignments across the wider NorthAfrica region.

Petrofac is ultimately, however, a globalconcern, with 31 offices around the world housingmore than 15,000 employees.

It’s an impressive track record for a firm thatbegan in 1981 with just 25 staff.

Since then, over 30-plus years, it has maturedgreatly, responding well to the changes andchallenges of the world’s energy markets.

The company’s seven operational centresperhaps reflect its general growth curve, with twolocated in the UK (Aberdeen and Woking) - thecompany remains very active in the North Sea -two in the Gulf (Sharjah and Abu Dhabi), and therest scattered across Asia (Chennai, Mumbai andKuala Lumpur).

These offices have aided the group’s push intoadditional energy markets such as Iraq, but manyothers as well including Turkmenistan in CentralAsia, and Mexico, underlining its global presence,and ultimate roots back in North America.

The original Petrofac founding company, in1981, was established as a producer of modularplant in Texas.

High growth This realignment with high growth markets in theMiddle East and Asia, underscores how the modernPetrofac has prospered since its origins.

And business is still booming.For the year ending December 31, 2011, the

company netted revenues of US$5.8 billion, up by athird on the previous year.

Net profit also climbed 25 per cent to reachUS$539.4mn.

This year, the company said it expects to seenet profit grow once more by at least 15 per cent,targets that will shore up its position among theenergy services elite.

Petrofac’s business offering also spans the fullspectrum of oilfield services, making it well placedto support even the largest energy projects, whichit is now doing in Iraq and beyond.

A restructuring in 2011 split the group into twocore divisions: Engineering, Construction,Operations & Maintenance (ECOM) and IntegratedEnergy Services (IES).

The largest business segment, in terms ofrevenues, is onshore engineering and construction,which dominates sales.

With a strong pipeline of new biddingopportunities, management are optimistic that thisstrong growth story will continue for some time yet.

Petrofac’s business offering spansthe full spectrum of oilfield services

Petrofac has also won praise among

regional oil companies for supporting the

advancement of localpersonnel

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One of the world’s largest oilfield services groups, Petrofac has carved out a specialniche for itself in the Middle East.

A smooth operator consolidates

its regional presence

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S11 ORME 4 2012 Petrofac_Layout 1 03/05/2012 14:39 Page 47

Gulf focusDespite its global footprint, Petrofac has becomesynonymous with the Middle East’s oil-rich Gulf,where it continues to expand.

For the most part in this core territory it remainsbusiness as usual, despite upheaval in somemarkets, notably Syria.

Last year, for instance, the company continuedits work on the huge onshore Asab oilfield projectin Abu Dhabi, for the Abu Dhabi Company forOnshore Oil Operations (ADCO).

The US$2.3 billion project spans a vast areameasuring 40-km x 20-km, and faces key naturalchallenges such as the extreme heat, fog andfrequent sandstorms, as well as tremendouslogistical issues, with 14,000 on-site staff andcontractors.

The company is also active on the NGL4integrated gas development project for ADCO.

Indeed, one of Petrofac’s primary strengths is itsstrong relations with the region’s leading nationaloil companies, such as ADCO.

It is also working closely with the likes of Qatar

Petroleum, where it is in the middle of a multi-yearconsultancy assignment.

New partnershipsAs well as teaming up with the region’s biggestnational oil companies, Petrofac has also formeda number of key strategic joint ventures withother partners.

Last September, for example, it teamed up withChina Petroleum Engineering & ConstructionCorporation (CPECC), the engineering andconstruction subsidiary of China National PetroleumCompany (CNPC).

The new entity, China Petroleum PetrofacEngineering Services (CPPES), is based in Sharjah,

and will support Chinese oil and gas companiesworking in the Gulf region.

The two are already working together onsouthern Iraq’s Rumaila field, which is being jointlydeveloped by BP and CNPC.

Petrofac has also won praise among regional oilcompanies for supporting the advancement of localpersonnel in the Middle East, a key priority in majoroil producing states such as Saudi Arabia.

In the world’s biggest oil producing kingdomPetrofac supports a number of sponsorshipprogrammes, a part of its corporate socialresponsibility agenda.

Away from the Gulf, it is also investing in localtalent in areas where it has a presence.

Prior to the current turmoil in Syria, Petrofacestablished a state-of-the-art technical trainingcentre for the oil and gas sector, the first of itskind in the country, with the intention ofproviding training to workers from the GeneralPetroleum Corporation.

With the company’s services in high demand,the partnership strategy is clearly paying off. ■

Oil Review Middle East Issue Four 2012

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Petrofac is working throughout the region

Petrofac is ultimately,however, a global

concern, with 31 officesaround the world housing

more than 15,000 employees

PETROFAC SAUDI ARABIA and the Asharqia Chamber of CommerceTraining Centre in Dammam held a graduation ceremony on 31 March for80 young Saudi trainees who have successfully completed the 2011-2012training programme in human resources management fundamentals.Under Petrofac’s sponsorship the Chamber delivered the course tostudents, most of whom were high school graduates.Graduating student, and recipient of the award for superior trainee,Ibrahim Fouad Al Madloh, described the training as “very helpful becauseI will really add value to my employer’s company and help mycolleagues.” Nouf Abdulkarim Abdulaziz Alfayadh received the award inthe women’s group. Both were presented with i-Pads courtesy of PetrofacSaudi Arabia.Senior Vice President and general manager for Petrofac’s Saudi Arabiaoperations, Imad Shanan, noted “We are proud to sponsor this futuregeneration of leaders and pleased to partner again with the AsharqiaChamber. In Saudi Arabia we are strongly committed to our corporatesocial responsibility agenda, and this programme supports our activitiesin that respect.”

Petrofac celebrates Saudi graduates

Receiving the award for superior trainee is Ibrahim Fouad Al Madloh (centre) fromImad Shanan, senior vice president and general manager for Petrofac’s Saudi Arabiaoperations (left) and Bashar Ghrawi (right) home office manager.

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GGAS-RICH QATAR HAS weathered wellthe storm of the 2008 globalfinancial crisis and its ripple effectsthereafter.

This tiny Gulf state - which will host the FIFAWorld Cup in 2022, just a decade from now -remains one of the world’s fastest-growingeconomies, outstripping even mighty China.

Behind this success is the nation’s vast gaspool, much of which sits in the offshore NorthField, the world’s largest gas field, whichstraddles the border with Iran (where it isknown as the South Pars field).

Oil and gas exports account for about half ofQatar’s gross domestic product (GDP).

The nation’s state-owned energy championQatar Petroleum (QP) has been instrumental inco-ordinating the development of this highvalue resource.

Through its multiple subsidiaries - whichspan niches areas from drilling and servicesthrough to catering and insurance - it haspioneered in the export of liquefied natural gas(LNG) and other related areas.

Increasingly, this includes moving into moresophisticated downstream areas, from refiningand shipping, through to advancedpetrochemicals.

And it is generating continued wealth forthe state and helping to consolidate Qatar’sposition on the world map.

Cracking onThe latest large-scale venture to get the goahead from the group’s Doha headquarters is anew, mega-petrochemical complex in Ras LaffanIndustrial City.

It will be led by QP and QatarPetrochemical Company (QAPCO) - a jointventure between Industries Qatar and Total ofFrance - and includes a world-scale steamcracker, with the feedstock coming fromnatural gas plants in Ras Laffan.

QP will hold an 80 per cent stake in theUS$5 billion project, scheduled for completionin 2018, with QAPCO taking 20 per cent.

It will produce 1.4mn metric tons per annum(MMTA) of ethylene, 850,000 metric tons perannum (KMTA) of high-density polyethylene(HDPE), 430 KMTA of linear low-densitypolyethylene, 760 KMTA of polypropylene and83 KMTA of butadiene, mainly for high-growthemerging markets, such as Asia.

QP chairman and managing director, DrMohammed bin Saleh al-Sada - also thenation’s energy minister - called it “animportant milestone” in the development ofQatar’s petrochemicals industry.

“This mega-project is yet another major stepin our progress towards sustainabledevelopment of Qatar’s vast hydrocarbonresources,” he said.

Downstream developmentThe new QAPCO project is just the latest majordownstream venture to be unveiled by QP.

Sada said at the start of the year that Qatarwill spend US$25 billion on expanding itsdomestic petrochemicals industry over thenext decade.

There are plans to more than double thecountry’s annual petrochemicals productioncapacity from 9.2mn tonnes now to 23mntonnes by 2020.

Last December, Qatar signed a deal withShell to develop a US$6.4 billionpetrochemicals complex, also at Ras Laffan.

It will produce mono-ethylene glycol andlinear alpha olefin, mostly for export to Asianmarkets.

Sada said at the time plans for additionalpetrochemical plants in Qatar were in the pipeline.

QP is also expanding its footprint inoverseas markets too with the company’sinternational arm, Qatar PetroleumInternational, recently forming a joint venturewith Petrovietnam to build the US$4-billionLong Son petrochemical project in Vietnam.

This year will also mark the full start-up ofthe flagship Pearl gas-to-liquids (GTL) project, inpartnership with Shell.

This mammoth undertaking - Qatar’slargest single foreign investment project ever -pushes GTL technology into a new commercialstratosphere.

After breaking all the LNG records inrecent years Qatar Petroleum is stillfiring on all cylinders.

The king of gas continues

to expand

Oil Review Middle East Issue Four 2012

The company is moving into moresophisticated downstream areas

But not all of Qatar’s efforts are focused on

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LNG leadershipBut QP is perhaps best-known for its dominance inthe LNG sector, where it has positioned itself as aclear market leader in recent times.

Qatar now hosts multiple liquefaction trains,through various joint ventures with foreignpartners, notably US super-major ExxonMobil.

QP’s Qatargas and RasGas brands - both basedin Ras Laffan Industrial City - are two names thatare now synonymous with the global LNG trade.

Qatargas, established in 1984, is the largestsingle LNG producer in the world, with an annualproduction capacity of 42mn tonnes per annum(mta).

Just over a year ago, Qatar put the finishingtouches to its huge LNG expansion plan craftedmore than a decade earlier that has now left itwith a combined production capacity of 77mntonnes per annum.

And business is booming: in 2011, a recordnumber of LNG tankers loaded at Ras Laffan port.

On December 28, the RasGas chartered vessel,‘Simaisma’, became the 1000th LNG tanker toarrive in the port that year, loading a cargo of146,000 cubic metres of chilled gas.

The rise of Qatar’s gas export business hasstimulated investment in associated areas toosuch as shipping and transport.

The Ras Laffan port itself is a majoraccomplishment, with six operational LNG berths,making it the world's premier LNG export andloading facility.

At times, all six berths are occupied withtanker vessels loading LNG cargoes for variousdestinations around the globe.

Not surprisingly, QP’s gas shipping arm,Nakilat, is also now the world’s biggest LNGtransporter.

The company owns vessels in its own right andin partnership with other shippers - the‘Simaisma’, for example, is owned jointly withanother firm, Maran Gas Maritime.

Nakilat-owned vessels now represent about16 per cent of the global LNG tonnage, with 54ships of various sizes, including the giant Q-Flexand Q-Max classes, which were speciallyconstructed to ship Qatar’s LNG to the fardistant world markets.

These ships are testimony to QP’s appetiteto push the frontiers of energy technology.

Qatar vulnerableWhile this boomtown economy shows no signs ofslowing down just yet, there are potential threatsto the country and to QP itself.

Qatar’s big gas companies stand to lose mostshould there be any blockage in the narrow Straitof Hormuz arising from Iranian tensions, analystsreckon.

According to ratings agency Fitch Ratings, anyprotracted closure would materially affect theoperations of rated energy issuers, although debtservicing would not be affected in the short termbecause of significant cash reserves.

RasGas and Qatargas are reliant on access tothe Strait, while a large portion of Qatari LNG isalso shipped through vessels owned by Nakilat,another Fitch-rated issuer.

The severity of the impact of a closure ofHormuz on these companies would depend on itsduration.

While there are storage facilities at Ras Laffanoffering some operational flexibility, these are notdesigned to cope with low-probability high-impactevents, such as the closure of export routes.

“Therefore, the projects' production wouldneed to be curtailed,” Fitch stated in aresearch note.

For Nakilat, a Hormuz closure would likelybe classified as force majeure, which meanscharterers would be obliged to continue payinghire charges for at least 24 months, at whichpoint the time charter might be eventuallyterminated.

Debt servicing for all project firms should besecure for at least six months, the agencyreckons, while insurance may provide someadditional cover.

Domestic demandAlthough this scenario is deemed lowprobability by experts it does remain anunderlying threat, with tensions over Iran’snuclear programme still running high.

But not all of Qatar’s efforts are focused onexport markets.

While QP has triumphed in exploitingQatar’s gas potential for the internationalmarket - and continues to generate added valuefor the economy through the move into moreadvanced downstream projects - it is alsoplaying a key role in meeting rising localneeds.

Demand for energy in Qatar is tipped togrow rapidly over the next decade as a newairport and seaport are built, and as majorinitiatives are completed in the transport,health and education sectors.

New facilities are also being built for theFIFA World Cup that will further drive demand.

In January, QP teamed up with ExxonMobilfor the Barzan gas project, which will play amajor role in satisfying this rising domestic gasneed.

The drilling platform to supply the Barzanplant will be sited 80-km north-east of RasLaffan Industrial City, with onshore and offshorefacilities to be completed by JGC of Japan andHyundai Heavy Industries of South Korearespectively.

The Rasgas-led project is to be developed intwo phases: Train 1 will come on stream in2014, with Train 2 following in 2015.

Together they will supply around 1.4 billionstandard cubic feet per day of sales gas, muchof which will be directed to the domestic powerand water sector.

When fully operational, the total offshoreproduction from all RasGas facilities will reach11 billion standard cubic feet per day (theequivalent of almost two million barrels of oil),making RasGas Qatar’s largest single gasproducer.

QatarisationBut one of QP’s most important responsibilitiesdomestically, however, is in providingemployment to locals and to build the skillsbase needed to create a more sustainable oiland gas industry in the long-term.

Much of Qatar’s gas sector has grown on theback of expertise from abroad, with large

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But QP is perhaps best-knownfor its dominance in the LNG

sector, where it haspositioned itself as a clear

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numbers of expatriate workers still playing avital role across all strands of the industry.

QP now offers countless openings for Qatariuniversity graduates, for its operations in Doha,Dukhan, Ras Laffan, Mesaieed Industrial City, as wellas offshore, and has a full range of technical andscholarship programmes for high school graduates.

Those under the programme study inside oroutside Qatar to take up any of the covered degrees,which include most of the engineering disciplinessuch as electrical engineering, civil engineering,petroleum and gas engineering and mechanicalengineering.

Subsequent job openings stretch across all thedisciplines within a large national oil and gas

company from finance and business planning,human resources and corporate training to gasoperations, research and technology, engineeringand oil development.

Refineries boostIn the refineries sector, QP is leading expansionwork at the Laffan Refinery, to bolster local fuelsproduction and provide additional products forexport.

Qatar’s first condensate refinery, the Laffanproject started production in 2009, with a capacityof 146,000 barrels per day (bpd), with productsincluding naphtha, kerojet, gasoil, and liquefiedpetroleum gas (LPG).

It utilises the field condensate produced fromboth Qatargas and RasGas facilities.

A second refinery, Laffan Refinery 2, is expectedto launch in 2016, to process an additional 146,000bpd, effectively doubling output.

Other Laffan Refinery shareholders includeExxonMobil, Total, plus Japanese companiesIdemitsu, Cosmo, Mitsui and Marubeni.

This, and other key initiatives, will generatefurther employment for locals, and provideadditional fuels support to meet Qatar’s owngrowing needs.

Critically, such expansion and developmentprojects will help to underpin supply for the ever-hungry international energy market. ■

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AS QATAR EXPANDS its upstream oil and gas industry,QP is moving fast to develop critical oil servicesinfrastructure, including drilling support services.

Its Gulf Drilling International (GDI) unit, formedas a joint venture with Japan Drilling Co., Limited,is already a leading supplier of rigs in the country,but looks set to expand its market presence further,with growth firmly on the agenda.

In April, GDI placed an order for a new PacificClass 400 jack-up rig with PPL Shipyard Ltd in

Singapore, the third jack-up order in 12 months.The US$250mn unit, scheduled for delivery in

March 2013, will be able to operate in waterdepths of up to 400 feet and drilling to depths of30,000 feet.

According to GDI, it will be the mosttechnologically advanced drill rig operating in Qatar,and will come with accommodation for 150 people.

The order marks the next step of a US$875million business expansion that will result in GDI

adding three new jack-ups, two land rigs and twojack-up accommodation barges to its fleet over thenext three years.

By 2014, the QP company will have eightoffshore rigs in service, with five being of the ultramodern cyber variety, and six land rigs.

Based on current rig counts, GDI’s share of theQatar offshore market will exceed 50 per centwhile its share of the onshore fleet will remain at100 per cent.

GDI leads Qatar drilling segment

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Oil Review Middle East Issue Four 2012

QATARGAS HAS ACHIEVED yet another significant milestone with the loadingof the 1000th LNG cargo from the Common Lean LNG Storage and LoadingAsset. The cargo, bound for Elba Island, Georgia, USA, was safely loaded fromLNG Berth 4 on the Q-Flex LNG vessel “Al Khattiya” in March. The CommonLean LNG storage and loading facilities are built to store LNG produced fromthe six mega trains at Qatargas (Trains 4, 5, 6 and 7) and RasGas (Trains 6 and7) and load Q-Flex and Q-Max ships in addition to conventional ships fromBerths 4, 5 and 6 and the Qatargas ships loaded at LNG Berth 3 to customersacross Asia, Europe and the Americas. The milestone achievement wasreached in less than three years after the first loading from the facility. TheQatargas Q-Flex vessel “Al Hamla” was the first ship to load lean LNG fromBerth 4 on 15th March 2009 during the Expansion Start-up stage. In October2009, the Qatargas Q-Flex vessel “Al Kharaitiyat” became the first ship to loadlean LNG from Berth 5, while the first ship to load lean LNG from Berth 6 wasthe RasGas Q-Flex vessel “Al Sahla” in February 2011.

QATARGAS HAS COMPLETED ten years of operations on its offshorefacilities without a Lost Time Incident (LTI) - a significant milestonedemonstrating the company's outstanding safety performance.

This world class performance across the entire offshore facilities andoperations is the result of the continuous and proven commitment tosafety, by the company's leadership and workforce.

Expanding from a three to a nine platform facility, Qatargas Offshorefacilities supply gas and condensate to the world's largest LNG plantonshore, with a production capacity of 42mn tonnes per annum (MTA) ofLiquefied Natural Gas (LNG).

The Qatargas offshore facilities are outstanding not only in terms ofsafety record, but also from a reliability perspective, ensuring sustainedproduction of LNG from Qatargas' onshore plant.

A brief ceremony was organised at the Qatargas offshore facilities tomark the occasion and congratulate the Offshore team on thisachievement. The ceremony was attended by Sh. Khalid Bin Khalifa Al-Thani, Qatargas Chief Executive Officer, Ghanim Al-Kuwari, ChiefOperating Officer - Administration, Sh. Khalid Bin Abdulla Al-Thani, ChiefOperating Officer - Engineering & Ventures, Mats Gjers, Chief OperatingOfficer - Operations, Toufik Benmosbah, Chief Safety, Environment &Quality Officer and Abdelkader Haouari, Offshore Operations Manager.

The Qatargas offshore facilities are located approximately 80kilometers northeast of Qatar's mainland.

A total of 85 wells together supply approximately 7.5 billionstandard cubic feet of gas to the seven LNG production trains onshore.The gas, along with the associated condensate is transferred to shorevia subsea pipelines.

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A significant milestone

Qatargas loads 1,000th cargo

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TTWO NUMBERS ARE prominently on display in Qatar’s busy capital,Doha, these days. The first is ‘77’ which stands for the nation’s totalexport capacity tonnage (millions of course) for liquefied natural gas(LNG). Better known overseas, the other is the year 2022. Both are

closely related to the development of Ras Laffan Industrial City (RLIC).Founded by Qatar Petroleum, the multipurpose 300 km2 development is

already renowned as the world’s largest concentration of industries and servicesbased on natural gas. It sits almost on top of the North Field, the single largestnon-associated gasfield anywhere, just 80-km northeast of the modern capital.Two huge LNG producers, Qatargas and RasGas, are located side-by-sideadjacent to the world’s busiest LNG exporting port. The two-plants/two-operators gas-to-liquids industry is growing fast; details are given below. Animportant condensates refinery and olefins facility lie just across the road. Wecounted no less than three combined power/desalination plants operated bythe national utility Kahramaa. Shipping-related engineering and servicesbusinesses proliferate. And light industry facilities in the neat surroundingtownship are growing fast, too.

That’s where the relevance of the year 2022 to RLIC comes in. A vital part ofthe bid to host the 2022 FIFA World Cup – global soccer’s four-yearly jamboree– was to offer the football world more than 10 state-of-the-art stadiums that

Business is booming in the world’s largest cluster of gas-related activities.

Ambitious developments raise

Qatar’s profile

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would be fully carbon-neutral in operation. A verytough challenge for a huge international event inone of the world’s hottest and driest climates, andat the height of summer, too.

Massive arrays of photovoltaic panels on theroofs of the air-conditioned facilities were offered asthe solution, and many of these will bemanufactured in RLIC by newly establishedinstitutions such as Qatar Solar Industries.

These will be the foundation of a major newexport-capable industry for the future, all part ofthe Emirate’s plans via the Qatar Foundation foradvanced science-based national status, basedon a knowledge-based economy. There areplenty of signs of this in and around the bustlingcapital already.

LucrativeLNG, the product on which RLIC’s fortunes havebeen founded, started being produced just a decadeand a half ago; by 2010 over 75 bn m3 was beingexported annually, which is more than twice theamount sent out of any other world gas port. Andit’s all taken place despite the impact of the shalegas revolution on the availability of the world’sincreasingly favoured fuel. The value of frozen gasexports, mostly on lucrative long-term contractterms so far, although this is changing, exceededthose of crude oil for the first time in 2009. RLIC isalso the location of the processing station for theundersea piped exports which are sold via Dolphinto the gas-poor UAE.

Behind the City’s ambitious development planslies a 20-year Master Plan which involves acomplete overhaul of the already modern portfacilities and all necessary support services. Amoratorium continues in place on futuredevelopment of gas exploitation, which means nomore LNG trains are expected to be announced atpresent, but debottlenecking is proceeding activelyat some of the older trains to increase exportcapacity even further as global demand increases –and Qatar’s reputation for reliability does the same.

At the same time Nakilat (the Qatar GasTransport Co) is building new construction, repairand maintenance facilities within the RLIC portboundaries for its dedicated fleet of gas carriers andservice vessels, now the world’s largest.

ProspectsShell is expected to ramp up output to the full140,000 bpd nameplate capacity within the year atPearl, the world’s largest gas to liquids plant. Alsoturning out 120,000 bpd of condensates andbottled LPG this landmark facility sits right nextdoor to the earlier, smaller but still highlyprofitable Oryx plant jointly owned by QatarPetroleum with the alternative technologydeveloper, South Africa’s Sasol. Slightly differentprocesses are employed to produce the same ultra-clean synthetic fuel; Oryx was the world’s pioneercommercial-scale GTL plant.

RLIC’s commercial and industrial status has sofar rested largely on the soaraway LNG industryoutlined above, but it is the prospects for GTL andits many derivatives that the experts are most

excited about for the future. The City is already theworld’s leading production centre for this new-generation commodity by a wide margin.

The new downstream intermediary was used tomost dramatic effect when the national airlinemade its first commercial flight with kerosene/GTL-derived fuel back in 2009. Furthercommercialisation prospects are excellent in anenergy-hungry world where diesel in particular is inregular short supply while gas reserves areoverflowing, and are in many cases difficult tocommercialise economically.

Other uses include specialised lubricants andother mineral-substitute oils, and as an economicfeedstock for various petrochemical products. Asfamiliarity with the intermediate product and itspossibilities grows no doubt further uses will befound, and a futures market could develop.

Apart from helping preserve the environment,one of the special advantages of GTL-based dieselin particular is that it can be distributed viaconventional road-fuel networks, unlike thealternative environmentally-friendly bio productswhich also, allegedly, require costly enginemodifications. Automobile manufacturers are veryexcited about GTL indeed, and RLIC is now theworld’s number-one source of supply.

Oryx was undoubtedly a very economic andwell timed development, and the costs at Pearlcertainly escalated well above US$15 billion –more than three times the original estimate.However the experts say Shell’s timing has beenimpeccable, too. It always helps to be second inline at one location, of course and with the price of

alternative oil remaining above US$100 for WTIsustainably-high market share should be buildablerapidly. The Fischer-Tropsch technology employedby Shell is more or less a direct result of invaluableexperience gained at the much smaller but highlyreliable Bintulu (Sarawak) plant in Malaysia; pioneerproduction commenced there nearly 10 years ago.So at current crude prices the huge investment inPearl could be returned within just a few years, withannual revenues of close to US$10 billion alreadybeing predicted.

Better earnerAs always with new products, other potentialinvestors with surplus gas on their hands arewaiting to see how the market develops.

Thus in the long term GTL could even become abetter earner than LNG, consolidating RLIC’sreputation of demonstrating commitment to thebuilding of Qatar’s 21st century economy.

With further LNG developments on holdbecause of that moratorium and the GTL industrygetting close to capacity output Ras Laffan’s gas-based industries are now reaching a plateau, andthe focus ahead of 2022 is shifting towardsfurther infrastructure development, services and arange of completely new support industries suchas PV panels.

So, just as in Qatar’s other Industrial City,Mesaieed, close by Umm Said to the south - wherea different cluster of industries such as Qafco’sworld-leading nitrogen fertilizers are based - itsfuture must firmly be as well assured as anyindustrial agglomeration - anywhere. ■

Ambitious plans are underway

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AKER SOLUTIONS WILLbe the sole supplier ofall surface wellheadequipment for theEgyptian oil giant BadrPetroleum Companyafter the two partiessigned a two-yearframe agreement.

The contract willcover installation andlifecycle servicesoperations in Egypt’swestern desert.

Aker Solutionspresident of AsiaPacific, DaveHutchinson, said, “Weare very excited aboutthis award, as it marksthe successful entry of our surface business into the Egyptian and North Africanmarkets. Our ambition is to grow Aker Solutions’ operations in the Middle Eastand North Africa.”

The contract, which will be delivered out of Aker Solutions’ surface productsmanufacturing centre in Batam, Indonesia, was signed and booked as an orderintake for the first quarter of 2012.

Aker Solutions employs more than 23,000 people in more than 30countries, of which approximately 320 staff work at its Batam facility.

UK’S HI-FORCE HAS launched its 2012 catalogue which is the company’sbiggest and most comprehensive edition consisting of over 1,900 products.Commenting on the completion of the Hi-Force catalogue, sales and marketingdirector Mar Noordhoek said, "We believe we have created a first classcatalogue based around our customers’ needs that is easy to use and packedfull of helpful and technical information. Each year there is tremendous growthwithin our Company and we feel that this catalogue reflects that success."

The catalogue includes the latest additions to the Hi-Force range. Mostnotably, the PB hydraulic pipe bender, which has proven to be one of the mostpopular products. The hydraulic pipe bender has been designed to bend varioussizes and thicknesses of JIS standardised conduit pipe and gas pipe rangingfrom 15mm – 82mm. Made of aluminium, the bending frame is compact andlightweight so that it can be easily carried on and off site and can be operatedby any Hi-Force manual or powered pump up to 700 Bar. To complement thepipe bender a range of bending shoes are also available.

Also new to the range is; the GTB and PTB tyre bead breakers, the HP211aluminium manually operated hand pump weighing just 2 kilograms, theHTW2000B manual torque wrench with a capacity of 2000Nm, the HT3000and HT4500 torque multipliers with capacities up to 3000Nm and 4500Nmrespectively, the new range of air driven hydrotest pumps - AHP3, the SJS10-Mjaw spreader with built in manually operated hand pump and the addition ofthe Toughlift tool box which has been specifically designed to store andprotect Hi-Force Toughlift accessories. Other changes include the ERA’s(extended reaction arms) which have been added to both the TWS-N and TWH-N hydraulic torque wrench series allowing for greater user versatility, the Hi-Force manually operated foot pump is now available both with (HP227FPC) andwithout (HP227FP) a pressure gauge and protective bellows have been addedto the HPC range of single acting pull cylinders.

Hi-Force launches new catalogue

The equipment will be produced out of Aker'smanufacturing centre in Batam

Surface wellhead contract in Egypt awarded

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SCHLUMBERGER OPENED ITS new Geoengineering Laboratory inHouston that will offer a wide variety of reservoir core analysis servicesfor the oil and gas industry.The 30,000 sq ft facility is the latest addition to the Schlumbergerglobal network oflaboratories. Theother facilities arelocated in Brazil,Canada, Malaysia,Poland, Venezuelaand Salt Lake City,Utah.The new Houstonfacility features aconventional coreanalysis laboratoryfor themeasurement of porosity, saturation and permeability. It also houses aspecial core analysis laboratory for performing tests of a more complexnature covering capillary pressure, relative permeability, electricalproperties, nuclear magnetic resonance, enhanced oil recoveryevaluations and more. Additionally, the Houston laboratory performs anumber of TerraTek rock mechanics and core analysis services,primarily geomechanics, for unconventional reservoirs.

EMERSON RELEASED ITS latest solution for combustion flue gasanalysis, the Rosemount Analytical Model 6888 in situ oxygen analyser.The Model 6888 provides accurate measurement of the oxygenremaining in the flue gases coming from combustion processes such asboilers, incinerators, kilns and process heaters. By maintaining theideal level of oxygen in the flue gases, optimal efficiency is achievedand the lowest levels of NOX, CO and CO2 are produced.“As the needs and compliance demands for flue gas analysis becomegreater, we are making our Rosemount Analytical instruments moreand more accurate and easy-to-use to meet our customers’requirements,” stated Dave Anderson, marketing director, EmersonProcess Management, Rosemount Analytical.The in situ design of the Model 6888 places a zirconium oxide sensingelement at the end of a probe which can be inserted directly into a fluegas stream. Probe lengths are available from 18 inches to 12 feet, anda slip mounting option provides the ability to mount a long probe atany insertion depth. Signal conditioning electronics reside in the headof each probe, eliminating the need for expensive signal cable.The Model 6888 is fully field-repairable. All active components can bereplaced including the diffuser/filter, sensing cell, heater andthermocouple, and all electronics cards. A dual-channel operatorinterface unit provides an easy-to-use method of set-up, calibrationand failure diagnostics.Anderson added, “The Model 6888 is a real breakthrough in what hastraditionally been an old-line technology. It promises real savings intime and resources for users.”

The facility will increase SLB's core analysis capabilities

Schlumberger opens new laboratory Emerson's new flue gas analyser

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SPECIALIST CABLE MANUFACTURER Tratos Cavi S.p.A has beenawarded a US$1.33mn contract to supply Iraq's state-ownedMidland Refineries Company (MRC) with cables for installation atthe Daura Refinery in Baghdad.

A range of power cables, high temperature cables and fire resistantcables have been supplied to MRC, a new customer for Tratos, aspart of the modernisation process of the Refinery.The Daura refinery, located in the south of Baghdad, wasconstructed in 1953 and started operations in 1955. It dailyproduces three million litres of gasoline, 1.5mn litres of keroseneand two million litres of gas oil, along with other products going tolocal power plants and industrial use. Tratos Cavi has been producing cables for use in the oil and gasindustry throughout its 40 year history. The cables are manufactured to all the relevant American, Britishand European standards including BS6883, NEK 606 & UKOOA.The Tratos Group is one of the major European manufacturers ofelectrical, electronic and fibre optic cables.

FLAME RESISTANT (FR) fabrics used in protectiveclothing can be categorised into two primarygroups: FR treated or inherently FR. Bothvarieties of fabric undergo rigorous testing andmust demonstrate flammability characteristicsthat protect the wearer from further injury inthe event of an incident. FR treated fabrics arecommonly made of 100 per cent cotton or ablend of 88 per cent cotton and 12 per centnylon. Some flame retardant finishes for cottonfabrics are durable for the life of the garment.This treatment is durable to laundering as longas recommended procedures are followed. Non-Durable FR treatments are not recommended, asafter a number of launderings, the garment willno longer be FR.

For example, the world’s largest FR apparelmanufacturer Bulwark® uses only fabrics thatprovide durable FR protection, giving peace ofmind: protection for the life of the garment, aslong as care instructions are followed.

The use of products containing chlorinebleach or hydrogen peroxide to clean garmentsmade of FR treated cotton or cotton blends isnot recommended; repeated exposure to thesesubstances could destroy the chemistry thatprovides the flame resistant characteristics ofthe fabric.

Fabrics described as ‘inherently FR’ aremade of fibres whose chemical structure willprevent them from sustaining combustion. Thischaracteristic is built into the fiber and cannotbe washed out or worn off. Adhering torecommended guidelines for cleaning garmentsmade of inherently FR fabrics will preventexcessive shrinkage or colour loss during thelaundering process.

In order to optimise performance, it isessential that FR clothing be kept clean. If agarment becomes contaminated with aflammable substance, the flame resistance ofthat garment may be compromised leaving the

wearer with a reduced level of protection.Likewise, the use of starch or fabric softeners isnot recommended because they too canbecome deposited on fabric in amounts thateventually could support combustion.

Both FR treated and inherently FR garmentsfrom Bulwark® provide superior flame resistantprotection. In making the choice betweentreated or inherently FR garments,consideration should be given not only toprotection but also comfort, durability and cost.In addition, there are a number of innovativelightweight solutions specifically designed forhot climates that delivery greater wearercomfort through moisture management andbreathability, without sacrificing protection.

Examples are inherent Cooltouch2™ andtreated Comfortouch™ garments fromBulwark®. These innovations were showcasedat a recent Innovation in Oil & Gas Safetyevent in Dubai.

www.tratos.eu

OIL AND GAS producers in the region are experiencing the challenges ofproducing resources laden with Hydrogen Sulfide (H2S) first hand. Working inthis environment, companies must account for the increased risks to the safetyof workers and corroding equipment in their project operating costs. Productrecovery and flaring during well operations have a significant impact on theenvironment andare difficult tomanage whenH2S is present.AMGAS ServicesInc. has createdinnovative waysto safely handleand process H2S.

AMGAS offersa wide range ofservices,including H2Sremoval andcontrol measuresaimed at mitigating the dangers associated with processing sour oil and naturalgas. The company’s team of professionals is trained in using the specialized andproprietary equipment, chemicals and processes.

“H2S is very dangerous, so the chemicals and equipment used must bedependable,” says January McKee, President of AMGAS Services Inc. “ForAMGAS, dependable innovation has always meant that chemicals andequipment have been tested and proven to be reliable”.

Fluids containing H2S emit vapor equally as dangerous to workers and theenvironment. Treating the vapors requires dependable and innovative scrubbersto ensure the risks are eliminated and that the produced fluids can be stored,transported, processed or disposed. AMGAS has partnered with Rutledge E&PPte Ltd. who provides service for upstream drilling and exploration activities.

Rutledge is based in Singapore and has operations throughout the Middle East.AMGAS’s strategic partnership with Rutledge provides complete detection,

protection and removal technologies for H2S environments. The Canadianbased-company has over 25 years of experience working to reduce H2S andother noxious emissions. Their scavenging and scrubbing chemicals aresupported by personnel with the knowledge and experience necessary to reducecosts, environmental impact and increase safety.

Flame retardant fabrics

H2S innovations reduce costsTratos wins Baghdad cable contract

www.am-gas.com

S14 ORME 4 2012 Innovations 1_Layout 1 03/05/2012 14:44 Page 62

Oil Review Middle East Issue Four 2012 63

ALDERLEY FZE, Asubsidiary ofAlderley plc, hascompleted theclient witnessedFactoryAcceptance Tests(FAT) for 5 gasmetering skids forthe LSFO, FG andGas Oil PipelinesProject, Kuwait.The contract was issued by Petrofac International and is for theKuwait, MAA Refinery and Azzour Power Station operated by KOCand KNPC.The project scope of supply is for 5 x 5 stream Ultrasonic Meteringpackages with header sizes varying from 34” to 52” and Streamsizes varying from 12” to 20” respectively. Each package has amaster meter stream for checking the line meters. Part of the scopealso includes special blast resistant Analyser shelters for eachmetering package with redundant Gas Chromatographs andsampling systems, and associated computer control systems for allof the metering systems.

TDW OFFSHORE SERVICES announced that it has completed a pipelinepressure isolation operation in Qatar on behalf of a major supplier of LNG.The operation took place at the customer’s LNG complex in Qatar. Naturalgas is transported from platforms offshore Qatar through seven LNG trainsto this complex. In order to facilitate replacement of a defectiveemergency shutdown (ESD) valve on a primary export line, pressureisolation services were required. The 38-inch diameter pipeline runs fromtwo wellheads in the offshore natural gas condensate field to the onshoreLNG processing facility.To isolate the pipeline section located upstream of the designated ESDvalve, TDW launched two 38-inch SmartPlug® isolation modules using anexisting pig-receiving trap located onshore at the receiving end of theexport pipeline. Using its remotely-operated SmartTrack™ tracking andpressure-monitoring system, TDW monitored the location of each moduleas it travelled 600 meters along the pipeline route, as well as thepressure of the pipeline. One module was positioned upstream of thedesignated ESD valve, and the other downstream of the valve. TDW thenset the modules and safely isolated the affected section so that themodifications on the ESD valve could be safely carried out. "The fact that the SmartPlug isolation modules performed well and theTDW team worked so effectively with the customer’s team meant that wewere able to create a safe environment in which to replace the valve,"said Enzo Dellesite, director, market development-offshore for TDW.TDW hopes to build upon the success of the pipeline pressure isolationoperation at the complex by providing additional services.

Skids for LSFO,GO and FG pipeline project

Alderley completes FAT for KOC/KNPC TDW repairs valve bypass line in Qatar

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S15 ORME 4 2012 Innovations 2_Layout 1 03/05/2012 14:45 Page 63

S15 ORME 4 2012 Innovations 2_Layout 1 03/05/2012 14:45 Page 64

Oil Review Middle East Issue Four 2012

MIDDLE EAST SPECIALISED Cables (MESC) Group is a major supplierof cables and has been operating since 1994. Vice president-operations, MESC, Abdulkarim Masad said that thegrowing demand for high-end quality cables is changing theinternational perception of cables manufacturers worldwide as wellas in the Middle East. Such a growth is bringing both challenges andopportunities for those operating in the cabling industry.Some of the main challenges facing the industry range from theincrease in raw material prices and finished cables quality fromsome other poor suppliers are troubling factors faced by cablemanufacturers.The energy sector inthe Middle East istaking the lion’s shareof global energyinvestment because ofthe vast number ofdevelopment projectstaking placesimultaneously acrossthe region. This is whyMESC Group has expanded across the region and has three majormanufacturing facilities around the region; MESC KSA, MESC UAE &MESC Jordan. Each of the companies have their own managementand workforce team and have their own laboratories.MESC’s product line covers all types and ranges of cables, startingfrom Industrial, Instrumentation and Process Control Cables,Special Cables (BMS), Low and Medium Voltage Power Cables andOffshore Cables to the customised cables that are designed andmanufactured according to customers’ specifications andrequirements.

INOVA GEOPHYSICAL HAS released G3i™, a flexible and ruggedland recording system. The mega channel recording system offersthe industry a highly-portable technology that provides supportfor conducting a wide range of land seismic surveys, includinghigh density wide azimuth acquisition for the world’s mostchallenging environments.G3i supports over 100,000 channels and can be used to capture 2D,high density 3D and time-lapse 4D data. “The addition of this newcabled land system will offer seismic players in the industry anotheralternative for cable based recording that meets a broad scope ofoperational demands, allowing contractors to achieve a higher rateof return on their assets,” INOVA said in a statement.Several key features provide immense benefit to geophysicalcontractors, including its rugged, aircraft grade aluminum enclosureand high-strength polycarbonate exterior for maximum durability.Power management and deployment logistics are simplifiedbecause the G3i system utilises PDL technology to evenly distributebattery power to multiple field station units using the power supply(PSU) and fiber tap (FTU) units along with standard 12V batteries. According to INOVA, the G3i was also designed with the “do morewith less” philosophy in mind; as contractors can take advantageof having four analog channels in a 1.2 kg compact, remoteacquisition module (RAM) station, as opposed to using theexisting single channel stations offered by competitors. With lessfield equipment to transport, maintain, and troubleshoot, surveyscan be operated more efficiently.

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www.mesccables.com

MESC meeting growing demand for cables

INOVA introduces new land cable system

S15 ORME 4 2012 Innovations 2_Layout 1 03/05/2012 14:45 Page 65

MMAJOR OIL AND gas producers face adaily challenge to meet current production targets, placing a great responsibility on oil and gas

companies operating in the region to maximiseproductivity and reduce unscheduled downtime.Across the entire production process, from drillingto delivery, advanced industrial lubrication can playa key role in keeping operations running efficiently,24 hours a day, as well as reducing operating costs.

Drilling and exploration is a significantinvestment for oil and gas companies, with righire alone costing as much as tens or evenhundreds of thousands of dollars per day. Takingthis into account, companies must avoid anyunplanned downtime.

A typical offshore oil and gas rig is relianton a number of lubricants to ensure its efficientoperation. Turbines and reciprocating enginesprovide primary and auxiliary power, gears andbearings are crucial in draw works, cranes, mudcirculating, top drive and rotary tables andcompressors’ power refrigeration and air

systems. Whether it is an engine oil, turbine oil,gear lubricant, hydraulic fluid or grease, oneequipment failure can bring the entire operationto a halt.

At the processing stage, lubrication remainscritical to the overall productivity andperformance of a plant. Take for example thekey role of a turbine oil in keeping operationsonline. A turbine failure in an oil refinery andresulting shutdown can cost millions of dollars.

When it comes to transportation, marinevessels depend on a range of lubricants toensure they remain fully operational. From themain engine, propulsion systems, auxiliaryengines and thrusters to the deck crane, deckmachinery and winches, a wide range of

Oil Review Middle East Issue Four 2012

At the processing stage, lubrication remains critical tothe overall productivity and performance of a plant

Examining changes in the oil analysis data

over time (trending) isnecessary to assess the

condition of the lubricant

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In an unforgiving environment where every day of unscheduled downtime can result in majorfinancial losses, it is vital that oil and gas companies maintain their equipment by takingadvantage of the various advanced lubricants at their disposal, writes Akram Reda, IndustrialMarketing, Europe, Africa & Middle East, ExxonMobil Lubricants and Specialties

Utilising lubricants to

reduce downtime

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lubricants are required to ensure oil and gas isefficiently transported around the world.

Advanced lubricationAdvancements in lubricant technology,especially fully-synthetic based products, haveresulted in significant breakthroughs regardingthe extension of equipment life and oil drainintervals. These breakthroughs can help oil andgas companies maximise productivity andreduce unscheduled downtime throughout thedrilling, processing and transportation chain.

For example, Mobil SHC fully syntheticlubricants can last up to six times longer, withupper operating temperature limits that cantypically reach 50°C (90°F) higher than mineraloils. The high temperature performance oflubricants is particularly important for oil andgas companies operating in the Middle East,where the high ambient temperature coupledwith the high speeds and heavy-loads placed onapplications, requires a lubricant which canmaintain protection in high-operatingtemperatures.

Other research and development areas thatleading lubricant providers have focused on inrecent times include improving the energyefficiency of equipment while maintainingthese extended operating periods. Recentbreakthroughs from Mobil Industrial Lubricantsinclude lubricants to improve the energyefficiency of natural gas engines that are usedto power drilling and production rigs. These arein addition to hydraulic, gear and bearing oilswhich are used in a variety of applications.

The natural gas engine oil, Mobil SHCPegasus, uses breakthrough technologies tooptimise equipment productivity and protectionand is the first gas engine oil formulation onthe market to deliver real energy savingpotential. Extensive independent universitylaboratory and field tests have demonstratedthat the product helps reduce fuel consumptionby up to 1.5 per cent*. The new Mobil SHCPegasus formulation also delivers the potentialfor increased oil drain intervals of more than16,000 hours - three to four times that ofpremium natural gas engine oils. This can helpreduce unplanned downtime as well as reducethe amount of waste oil generated.

ExxonMobil’s state-of-the-art hydraulic oil,Mobil DTE 10 Excel, has been proven to helpindustrial organisations increase productivity,reduce unscheduled downtime and improve theenergy efficiency of their machinery. Comparedto standard hydraulic oils, Mobil DTE 10 Excelcan provide up to a six per cent improvement inhydraulic system efficiency** and 300 per centincrease in oil drain intervals.

The latest addition to the Mobil SHC brandof high-performance synthetic lubricants, MobilSHC 600 Series oils, are expertly formulated todeliver a number of performance advantagesover conventional oils. Featuring the latestMobil SHC technology with advanced syntheticbase fluids and a proprietary additive system,the oils can deliver a service life up to six times

longer than competitive mineral oil based gearand bearing lubricants.

In addition, developed through extensivelaboratory and in-service testing with some ofthe world’s leading equipment manufacturers,the next-generation Mobil SHC 600 Series oilsexhibit energy savings of up to 3.6 per cent***compared with conventional oils.

Maximising productivityIn order to help maximise the productivity ofmachinery and reduce costs, ExxonMobilrecommends incorporating an oil andequipment condition monitoring programmealongside the use of high quality lubricants. Aspart of routine maintenance, the "health" of thelubricant and the equipment itself should beregularly checked. Typically, it is advised thatmaintenance professionals perform quarterly oilanalysis and annual system inspections.

Examining changes in the oil analysis dataover time (trending) is necessary to assess thecondition of the lubricant. By trending oilanalysis data it is possible to proactively addressundesirable conditions before they becomeproblems, which is crucial given the hugepotential downtime costs associated with anoffshore rig being offline for any period of time.

For equipment maintenance professionalswho want an effective oil analysis monitoringprogramme, there is ExxonMobil’s proprietaryonline Signum oil analysis programme. Signumoil analysis offers engineers immediate accessand direct control of their lubricant samplingprogramme.

Technical supportBeyond oil analysis, visual system inspectionsshould be conducted regularly to check anddocument the condition of systems. Inspectiondata can be used to establish the optimumtime to perform maintenance on criticalcomponents such as filters, valves, hoses andpumps. Comprehensive leak detection shouldalso be performed, especially if excessive oilusage is noted during a routine systeminspection.

Due to the 24/7 nature of the oil and gassector, it is important that companies haveaccess to experts that can work alongside in-house engineers to develop optimisedlubrication solutions for applications. Variablessuch as operating temperature, load, cycle andage of equipment have an impact on the mostappropriate lubrication, monitoring andmaintenance package.

To service oil and gas companies in theMiddle East, ExxonMobil has a FieldEngineering Services (FES) team on the groundto offer technical support to companiesoperating in the region. On a day-to-day basisthey work with companies to addresslubrication issues as well as proactivelyidentifying ways in which productivity can befurther increased by switching to moreadvanced lubricants. The technical specialistsin the Middle East are part of a global FESteam, which shares application expertise andbest practice through its work in supporting oiland gas companies in other areas of the worldsuch as the Gulf of Mexico, the North Sea,Russia, the Asia Pacific region and Africa.

To augment this technical expertise,ExxonMobil has specialist strategic distributorslocated in all of the key Middle East oil and gasmarkets to offer fast and reliable delivery ofMobil Industrial Lubricants.

Oil and gas companies looking to optimisethe productivity of their equipment need toensure they have access to the latest lubricantsand services, as well as application expertise. ■

Oil Review Middle East Issue Four 2012

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By trending oil analysis data it is possibleto proactively address undesirableconditions before they become problems

Beyond oil analysis, visual system inspections

should be conductedregularly to check and

document the condition of systems

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Oil Review Middle East Issue Four 2012

MMAERSK OIL’S TRIGEN technology isderived from the space industry andinvolves burning gas together withpure oxygen to produce power,

water and carbon dioxide. The resulting high purityCO2 is captured – making the power generationemission-free – and can be transported to fields forenhanced oil or gas recovery (EOR/EGR).

This technology can provide synergy acrossthe energy industry to create value for bothresource owners and energy producers. The globalenergy business has traditionally been separatedinto upstream, downstream and power generationactivities.

This provided the right business focus forresource owners and power producers and madeperfect sense with current oil extraction and powergeneration technology. With TriGen, however,linking power generation back to upstream oil andgas activities, a zero emission solution across theenergy value chain becomes possible as all of itsoutputs are useful commodities.

It was the EOR application that first caught theeye of Maersk Oil, as we had already started tostudy whether we could use CO2 to enhancerecovery from our own mature oil fields, and wereseeking low-cost sources of the gas.

However, we soon realised that thetechnology’s multi-stream output, including itsability to burn CO2-contaminated gas as fuelwithout any pre-treatment, actually gave it access anumber of business opportunities around the world.

We are currently exploring opportunities in theMiddle East and South-East Asia that have differentvalue chains and benefits, yet both can now bemade commercial from the implementation of theTriGen technology.

In the Middle East, we are investigatingwhether TriGen’s low-cost CO2 can enable EORprojects. Gulf countries in particular haveincreasingly focused on clean energy, while manyof its oil and gas reservoirs are well-suited to CO2-EOR and nitrogen or CO2 based EGR.

Here, gas would be burned to produce cleanpower and water for households. Nitrogen, a by-

product from the production of pure oxygen, andCO2 would be supplied to oil fields – nitrogen tomaintain the pressure in depleting reservoirs andCO2 as the EOR agent coaxing out oil that wouldotherwise not be recovered.

In TriGen’s oxyfuel combustion process, fuel ismixed with pure oxygen and burned at pressure inexcess of 100 bar and temperatures over 2,200degrees Celsius. TriGen gets its pure oxygen from astandard Air Separation Unit that compresses andcools atmospheric air until oxygen and nitrogen areseparated by distillation.

The hot combustion gasses that are produced(only steam and CO2) are expanded in a turbinethat drives a generator while the pure water andresulting high quality CO2 are separated. Thegenerated power becomes emission-free as the‘reservoir ready’ CO2 is transported to oil and gasfields where it is injected deep underground forEOR/EGR.

Traditionally, CO2-based EOR has only beenfeasible in areas with large sources of natural CO2– chiefly in the United States. But the ability toproduce pure CO2 as a by-product of a commercialpower generating venture now makes CO2-basedEOR attractive in regions such as the Middle East,which has limited sources of natural CO2.

A diagram explaining TriGen

In the Middle East, we areinvestigating whether

TriGen’s low-cost CO2 canenable EOR projects

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A novel power generation technology from Maersk Oil is set to provide newcommercial solutions for enhanced oil recovery and unlocking stranded gas fields,writes Bob Alford, TriGen Project Manager at Maersk Oil

Maersk Oil’s TriGen technology unlocks

clean energy

S16 ORME 4 2012 Tech Focus 1_Layout 1 03/05/2012 14:47 Page 70

Additionally, as TriGen produces water, it can be placed in remote locationswhere water is not readily available. This water can be used for domesticpurposes or irrigation. In the oil field, the low salinity water is beneficial forimproving recovery in water floods.

The technology provides Maersk Oil with a competitive advantage in theGulf region, as it offers both the benefit of clean power and low-cost CO2 toincrease recovery potential. The technology also complements our current workand studies on CO2-based EOR in Denmark and Qatar, enabling us to offerintegrated field development solutions in this area.

In South East Asia, the value chain starts at a different point – at world classgas fields that lie undeveloped because they are contaminated by CO2. Suchstranded gas fields could now potentially be produced economically becausethe TriGen technology can burn gas contaminated with up to 90 per cent ofCO2 without requiring any costly pre-treatment for CO2 removal.

We would be unlocking enormous value to the states that have been sittingon these fields, unable to produce them commercially. Although it is early daysyet, with technical and commercial challenges to overcome, these are just thekind of projects that affirm Maersk Oil’s pioneering approach to business.

We launched the project two years ago and in January 2011 announcedthe acquisition of rights to the combustion technology from US-based CleanEnergy Systems (CES).

CES, in collaboration with Maersk Oil, Siemens and the US Department ofEnergy, is maturing the technology. Derived from rocket science, where pureoxygen is used to burn fuel, CES has proven the technology on a smaller scaleover the last 15 years. Siemens is currently converting a conventional gas/airturbine to a gas/oxygen turbine for a commercial power plant project inCalifornia using the TriGen technology.

The converted turbine – approximately the size of a Maersk shippingcontainer – will be hooked up to a power grid in North Los Angeles later thisyear and has the capacity to deliver 150 megawatts of electricity – enough toprovide energy to over 100,000 homes. ■

Bob Alford is senior manager of business development & strategy and TriGenproject manager at Maersk Oil

Oil Review Middle East Issue Four 2012

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The pure oxygen combustion of TriGen

The technology provides Maersk Oil with a competitive advantage in the

Gulf region, as it offers both the benefit of clean power and low-cost

CO2 to increase recovery potential

S16 ORME 4 2012 Tech Focus 1_Layout 1 03/05/2012 14:47 Page 71

CCLIMATE CHANGE, CHANGING oil prices, increasing overall energyneeds and fuel switching are all factors contributing to the growthin global demand for liquefied natural gas (LNG). Longer term,analysts expect global LNG demand to grow from 218mn metric

tonnes per year (mt/year) in 2010 to 410mn mt/year by 2020 [1]. This growth will be met by the expansion of existing liquefaction plants and

building new plants, as well as the use of small-scale LNG plants incorporatedinto FPSO (floating, production, storage and offloading) vessels. The latter newapproach to LNG production will make it more akin to crude oil production thanever before, with LNG production being directly associated to specific fields.

The high energy density of LNG means that it can be transported easily byships from areas of production to areas of need. The current practice formeasuring LNG delivered to or received from a ship’s tanks is made in the formof energy transferred based on the GIIGNL Handbook (International Group ofLiquefied Natural Gas Importers). The GIIGNL is, however, only an agreedhandbook of good practice, it is neither a standard nor a specification. A newISO standard (ISO 10976) describing a procedure for measurement of LNGquantities on board LNG carriers is in the final stages of development and willbe released in the near future.

The calculation of LNG energy transferred requires measurement of LNGvolume in the ship’s tanks, the density and gross calorific value (GCV). Thecalculation of the density and the GCV are made on the basis of the averagecomposition of the LNG obtained from LNG sampling and subsequent analysisby chromatography.

The following equation is currently used to calculate the LNG energytransferred (GIIGNL 2011):

E = (VLNG . DLNG . GCVLNG) – Egd ± Eg-en

whereE Energy transferred from the LNG carrier to the unloading facilities

(MMBTU). VLNG LNG volume (m3) (Liquid level measurement and correction tables) DLNG LNG density (kg/m3) (Using Revised Klosek-McKinley method) GCVLN LNG gross calorific value (MMBTU/kg) (measured composition) Egd Energy of the gas displaced from the storage tank (MMBTU)

(Often estimated)Eg-en Energy of the gas consumed by carrier’s engines- If applicable.

+ve for an LNG loading -ve for LNG unloading

There are several challenges associated with the measurement of LNGenergy transferred. Some of these are related to the measurement of the LNGvolume, but the main challenges are faced with the measurement of LNGcomposition obtained from sampling. The GIIGNL estimates an overalluncertainty in the measured LNG energy transferred of ±0.86 per cent as givenin the following table.

Element calculated Standard uncertainty Volume ±0.21 %Density ±0.23 %Gross Calorific Value ±0.30%Combined standard uncertainty 0.43% Coverage factor 2 (95% confidence level) Expanded overall uncertainty 0.86%

The measurement of LNG volume in ships’ tanks requires accuratemeasurement of the level and temperature at various locations in the tank andthen applying appropriate corrections.

In principal, better accuracy can be achieved by direct measurement of theLNG flowrate, rather than measuring the volume in tanks. However, the natureof LNG presents some very real challenges for flow meter technology, thebiggest of which is the cryogenic temperature at which LNG exists(approximately -160oC).

At present the development of cryogenic flow metering has focused onultrasonic and Coriolis techniques. Whilst these are promising, a number ofissues including the establishment of a reliable calibration principal andquantifying installation effects (in particular for ultrasonic meters for fiscalapplications) have still to be addressed. This is the main reason why LNG flowmeters are currently used for allocation and control but not for custodytransfer measurement.

Flow meters are usually calibrated using water at ambient temperatures anddue to the international scarcity of cryogenic test facilities, combined with thecomplexities of testing under low temperature conditions; little independantresearch has been done to establish if flow meters remain accurate under theextremely cold condition that LNG exists.

To address some of the many challenges associated with the handling ofLNG, in particular the measurement issues surrounding the delivery of LNGto a receiving terminal, NEL, supported by the UK National MeasurementSystem (NMS), has been carrying out research to help industry establish aframework of measurement standards and capabilities. This research hasbeen carried out through the NMS Engineering & Flow Programme researchand more recently through the active participation in the EuropeanMetrology Research Programme (EMRP). The former focused ondevelopment of inline metering technologies, while the latter covers allaspects of LNG metrology.

The EMRP ProjectThe European Metrology Research Programme (EMRP) is a metrology-focusedEuropean programme of coordinated R&D that facilitates closer integration ofnational research programmes. The programme is delivered through projectsfocussed on improving the European infrastructure for metrology, and providesmeasurement solutions to particular sector needs. The overall goal is toaccelerate innovation and competitiveness in Europe whilst continuing toprovide essential support to underpin the quality of life.

The research is being executed in close collaboration with industry and hasestablished an advisory group to maximise the benefits for industry.

The EMRP LNG project addresses current issues with both state-of-the-artmeasurement technology by tank gauging methods and flow measurement byultrasonic and Coriolis flow meters. The main objective is to achieve significantreduction of uncertainty in LNG energy transferred during custody transferprocesses. The project has estimated an equivalent economic value of anuncertainty reduction of 0.5 per cent to be in the region of 60 M€/year on thetotal amount of imported LNG in Europe.

The project runs for three years from May 2010 and the programme of workis jointly funded by the European Commission and the participating NationalMeasurement Institutes (NMI’s).

As the project deals with all aspects of LNG metrology, the work has beenbroken down into five main work packages (WP’s) to ensure efficient executionof the project.

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Dr. Asaad Kenbar*outlines the latest measurement technologies for the LNG sector.

Improved measurement technologies

for LNG

S17 ORME 4 2012 Tech Focus 2_Layout 1 04/05/2012 11:14 Page 72

The knowledge and experimental data obtained from the first four workpackages will feed into the fifth work package. The information will bepresented to industry through various international committees and in the formof guidelines, new international standards and other forms of publications.

Development of Traceability for LNG Flow MetersOne of the primary objectives of the project is to pave the way for thedevelopment of an SI traceable primary standard for calibrating LNG flowmeters. This standard aims to address the traceability needs of LNG terminalswhere LNG flow rates range from 5000 to 10000 m3/h. However the build ofsuch a facility is outside the scope of this project.

This project will develop therequired knowledge and experiencetowards the full scale facility byadopting a staged approach. The firstand current stage is focusing on thedevelopment of a small scale primaryLNG flow standard which handles flowrate up to 25 m3/hr. This will befollowed by the development of mid-scale flow standard that handles LNGflow rates up to 200 m3/h using boot-strapping techniques and input fromthe small-scale primary standard. Themid-scale system will be useful forsmall LNG applications such as roadtanker applications. The realisation ofthe full-scale facility crucially dependson the outcome from the small and

mid-scale standards. Since the development of a full-scale LNG calibration facility will take

some time, the project is currently assessing an alternative approach forcalibrating LNG flow meters. This is mainly focusing on the development of aneconomic calibration concept which transfers calibration with a fluid such aswater at ambient conditions to cryogenic conditions by applying appropriatecorrections. This will be supported by testing using the small and mid-scalefacilities. This calibration scheme is currently adopted by industry but requiresindependent validation.

In addition to the above, a novel cryogenic flow metering technology byLaser Doppler Velocimetry (LDV), is currently explored as a promising alternative

Oil Review Middle East Issue Four 2012

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Low Flow High Flow

Call +44 (0)1296 670200

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S17 ORME 4 2012 Tech Focus 2_Layout 1 04/05/2012 11:15 Page 73

to ultrasonic and Coriolis flow metering. LDV as a flow measurementtechnology has already been demonstrated in high pressure natural gas with anuncertainty of 0.1 – 0.2 per cent, but its application to cryogenic temperaturesis challenging and currently under investigation.

LNG Sampling and Composition MeasurementCurrently the calculation of the density and the gross calorific value of the LNGtransferred are made on the basis of the average composition of the LNG. Thiscomposition is obtained from LNG sampling and chromatographic analysis.

The sampling stage is the most important point of the LNG measurementsequence as unrepresentative samples are responsible for the majority of errorsthat occur in the energy transferred calculation. The sampling procedure musttherefore be consistent throughout the whole operation to ensure representativeresults.

The accuracy of LNG composition obtained from sampling will have a directinfluence on the accuracy of calculated density and gross calorific value, andsubsequently the accuracy of LNG energy transferred. The LNG shipment valueis often in the range of €40 - €50 million. A small error in the determination ofthe gross calorific value and density of the LNG therefore has a significantfinancial impact on the exporter/importer. A one per cent error in energytransferred equates to €400,000 - €500,000 in misallocation during custodytransfer.

Therefore, one of the main work packages of the EMRP project focuses onLNG sampling systems. This work package explores the current samplingtechnologies used in the LNG custody transfer measurements and newlydeveloped technologies, specifically by Raman spectroscopy, and will proposerecommendations for improvements.

Improved Calculation of LNG DensityThe density of LNG is calculated on the basis of the measured composition,temperature and pressure. Important sources of uncertainty are the choice ofthe correct equation of state, as well as the accuracy of temperature and

composition measurements. New and more accurate density reference data willbe produced in this project in order to assess the many available densitycalculation methods that are based on very old reference data. The financialimplications of different methods being applied to a cargo will also beevaluated. By analysing the information compiled, the most accurate methodwill be recommended for custody transfer.

Dissemination of Information The new results from this project will be disseminated to internationalorganisations in the form of guidelines and standards related to LNG metrology.The challenge is to create a significant impact that facilitates internationalacceptance of the project results. The international working groups from ISO,CEN, GIIGNL and OIML are therefore engaged in order to achieve this.

In addition, the project impact will be maximised by other activities such asorganising workshops and conferences, presenting the project’s results atconferences and in scientific and key user journals.

Two successful workshops have already been organised, the first at SP(Sweden) in 2010 and the second at NEL (UK) in 2011. These events attracteddelegates from around the world. Several presentations directly relevant to theLNG metrology and its development were given by participants from industry.The events presented an excellent platform for sharing information andexperience between the project partners and the LNG industry and gave rise tolively and inspiring discussions. ■

[1] http://www.naturalgasasia.com/global-lng-demand-forecast

Dr. Asaad Kenbar, Principal Consultant at NEL, a world-class provider oftechnical consultancy, research, testing, flow measurement and programmemanagement services to the energy, oil & gas and manufacturing industries, aswell as government. NEL, part of the TÜV SÜD Group, is a global centre ofexcellence for flow measurement and fluid flow systems and is the custodian ofthe UK’s National Flow Measurement Standards.

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THE LATEST VERSION of the USM Vision innovative, ultrasonic (UT)weld inspection system, from the Inspection Technologies businessof GE Measurement & Control, now features parallel scanning, linearscanning and theability toincorporate phasedarray prpbes with upto 128 elements. Asa result it now offersincreasedproductivity andgreater functionalityand can be used onthicker pipes, whilesatisfying a widerrange of inspection codes. This allows the benefits of the USMVision technology to be realized beyond the fabrication yard in theoil and gas sector in the inspection of welded plate. USM Vision 1.2continues the philosophy of the original instrument and allows non-UT trained specialists to gather reliable and accurate pipe weldinspection data, for subsequent remote assessment by a suitablyqualified ultrasonics expert. This permits ultrasonic inspection to beused in situations conventionally requiring radiography, removingconstraints such as extended film processing times, radiationscreening and waste chemicals disposal. As a result, it facilitatesthe migration of skills from radiography to UT, reducing thepossibility of bottlenecks, providing significant increases inproductivity and improving operational health and safety.

FLOWSERVE CORPORATION, A leading provider of flow control products andservices for the global infrastructure markets, and S&A Abahsain Co. Ltd., oneof the top 50 business entities within Saudi Arabia, have formally inaugurateda new valve manufacturing plant and training center in the Dammam SecondIndustrial City.

The Dammam manufacturing plant is a state-of-the-art, facility withcapabilities for component machining, valve assembly, and testing. The facilityis operated by Flowserve Abahsain Flow Control Company Ltd., a joint venturebetween Flowserve Corp. and S&A Abahsain Co. Ltd.

Motassim Ma'ashouq, vice president of new business development withSaudi Aramco, was the special guest speaker at the event. Other dignitariespresent for the ceremony included Abdullah Abahsain, CEO of S&A Abahsain;Shaukat Sheikh, managing director of S&A Abahsain; Mark Blinn, president andCEO of Flowserve; Tom Pajonas, chief operating officer of Flowserve; and JohnLenander, vice president and general manager, Flowserve Flow ControlDivision, oil & gas sector.

The Flowserve Abahsain joint venture was formed early in 2009 to supplyvalves to the oil and gas, petrochemical, power and water industries. The jointventure commissioned the Dammam manufacturing facility in late 2010, andcompleted the ISO 9001 certification, Saudi Aramco certification and othermajor customer approvals in 2011.

The facility reached an important milestone in late 2011 with thesuccessful manufacture, inspection and shipment of the facility's first largebore control valves to be completely assembled and tested in Saudi Arabia. Atotal of seven Flowserve Valtek Mark 100 16" ANSI 300 globe valves, withFlowserve Logix 3200MD positioners, were delivered on schedule to a majorgrass roots refinery project currently under construction in Saudi Arabia.

The Dammam facility will have the capability to manufacture a range ofvalves and actuators, including Flowserve Valtek globe, ball, plug, butterfly andsevere service control valves; Flowserve Valbart trunnion mounted ball valves;Flowserve Durco/Atomac Teflon-lined plug, ball and butterfly valves etc.

Saudi valve and training facility now openPipe weld inspection solution

S17 ORME 4 2012 Tech Focus 2_Layout 1 04/05/2012 11:15 Page 74

TTHE BAUMER GROUP is a leader atinternational level in the developmentand production of sensors, shaft encoders,measuring instruments as well as

components for automatic image processing. Thecompany’s customers include small, highlyspecialized plant and machine constructioncompanies, large industrial enterprises and groupsof companies operating at global level.

Oil Review Middle East recently spoke with themanaging director of the company’s Middle Eastoperations, Dr Amer Tarraf concerning Baumer’sregional aspirations.

Baumer has been present in Dubai with its newcompany Baumer Middle East FZE for severalmonths now. What was the main reason forthis move?

As one of the first pioneers in the processinstrumentation sector, we have known and servedthe market and customers in the Middle East for along time. We are very well-known in the regionespecially due to our Bourdon® brand. I would sayjust about every technical school graduate in theworld has learned about or learned how to applythe bourdon tube principle.

With Bourdon-Haenni as a competence centerfor mechanical measuring instruments within theBaumer Group, we can guarantee excellent quality

and safety for applications in the oil & gas industry,for example. We aim to bring this expertise evencloser to the customer and provide a single point ofcontact in the Middle East region. Ultimately it isalso the next logical move in view of ourinvolvement here on the ground and the promisingcustomer relations we have established here.

What part does the "Bourdon" brand play?

To this day, the Bourdon tube, developed 160 yearsago by Eugene Bourdon, the founder of BourdonSedeme SAS, has been the most common pressuremeasurement method, particularly in criticalapplications as in the oil & gas industry, forexample. Nowadays this development is used bydiverse manufacturers on the market, howeverBaumer is the sole supplier of high-quality andreliable Bourdon® Original Pressure Gauges."Bourdon" is a synonym for reliability, safety,precision and robustness. These features arecongruous with Baumer's values and our own

product standards. That's why "Bourdon" makes up alarge part of our portfolio of mechanicalinstruments. Our customers benefit greatly from this.

Oil Review Middle East Issue Four 2012

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Oil Review recently interviewed Dr. Amer Tarraf, Managing Director, Baumer Middle East FZE.

A passion for

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Dr Amer Tarraf

S17 ORME 4 2012 Tech Focus 2_Layout 1 03/05/2012 14:51 Page 75

What are the main product focuses and targetgroups?

As a leading sensor manufacturer, Baumer is verystrongly represented in the factory and processautomation sectors as well as in the food industry,in the machine building or wind power industry. Inthe Middle East our focus lies on the oil & gas andwater treatment industry. We have a great deal ofknow-how and many years of experience in thesefields, which both guarantee great customerbenefit. On top of this, we can offer an almostinimitably wide portfolio, which supports the entireprocess from crude oil to the end product. Thisincludes, for example, a large number of diversemechanical instruments, like pressure gauges andtemperature meters, as well as high-qualitydiaphragm seals and a very wide portfolio ofelectronic pressure, temperature, filling level andconductivity sensors. In addition, Baumer offers awide range of encoders used in drilling, forexample. This variety of products is furnished withnumerous types of required certifications andapprovals, which enables us to offer the customeran appropriate product in virtually all applications.

You mentioned Baumer was a pioneer, what doyou mean by that?

The objective of the Baumer Group was and is toalways be a step ahead of the market, to anticipateapproaching needs sooner, and to achieve this bycontinuously expanding our range of products andtechnologies. Baumer continually launchesinnovations also in the oil & gas industry, whichclassically is safety- and availability-oriented. Withspecial diaphragm seals developed in closecollaboration with well-known field transmittermanufacturers and combined with in-house sealstechnology, Baumer offers perfect solutions forpressure and filling level sensing in remotetechnology. We meet new application requirementswith regard to temperature, media and pressurewith continually innovative solutions

How do you operate in international markets?

With 36 companies in 18 countries around theglobe, Baumer ranks among the leadinginternational sensor manufacturers and suppliers. Inview of increasing internationalization, especially inthe EPC business for the oil & gas industry, aninternational structure is essential for efficient

inquiry handling and specific customer support.Baumer's modular technology and productionconcept enables our products to be used acrossindustry sectors and our international experience tobe utilized synergistically for country-specificadaptations. That way we can offer optimumsolutions for our clients. According to ourexperience, clients do not just expect and buy aproduct but also co-operate with suppliers that offermany years of international experience and aninternational sales and service organization withgood and competent on-site support.

Speaking of EPC – what does Baumer have tooffer in this sector?

This business requires a tremendous amount ofspecialist-, market- and application knowledge andcan only be conducted successfully if you can drawon global expertise and resources. For this Baumeroffers a globally networked EPC team at itslocations in France, Germany, Switzerland and India.This team is supported by the local presence ofcompetent subsidiaries, as in the Middle East, Northand South America, Europe, China, Singapore, SouthKorea and India. This network enables Baumer tosupply the global EPC world with the requiredsolutions quickly, efficiently and in accordance withcustomer wishes.

What can customers expect from you?

Here at Baumer we take our customers' wishes veryseriously. Baumer is committed to customerorientation, partnership and sustainability and offersa wide range of products and technologiesotherwise not found on the market in this form.However, Baumer quality is not just defined by alarge number of high-tech products, which weguarantee by the providing the necessary serviceson site, but also comprises our experience in the oil& gas industry and its specific developments, whichwe proved for example in the SATORP project in theKingdom of Saudi Arabia. Well-known internationalplayers rely not only the safety aspects of Baumerproducts but also on our company's flexibility whenit comes to adapting and combining products tomeet very specific application requirements.

What marks out Baumer?

Baumer is an internationally operating sensormanufacturer with the culture of an owner-

operated family enterprise and offers an almostunique range of products and technologies.Customer focus and partnership are an essentialpart of Baumer's identity. Together with ourcustomers, we combine innovative technology andcustomer-oriented service to create intelligentsolutions. Nowadays the markets demand not onlyhigh-quality products at competitive prices butalso proactive support and service on aprofessional level. Exactly that is Baumer's cultureand I believe that is where we make ourcontribution. Baumer Middle East is a part of thisglobal sales and product network of the BaumerGroup. We can draw on this expertise, so thatmeans we can also handle projects in a complexinternational context flexibly and reliably.

What makes you optimistic?

We are not newcomers to the market or the region.The feedback we received during the first couple ofmonths is very positive, and on top of that we arevery busy with inquiries and project talks.Nowadays an international network is essential forhandling projects as well as local support.Frequently different parts of a project are separatedgeographically from one another. And in this casewe are on the ground to support our customers andto provide a comprehensive portfolio. Besides, weare talking here about strongly growing markets inthe Middle East. I think we can meet demandingcustomers' requirements with our standardproducts, our decade-long expertise and our abilityto provide tailor-made high-quality solutions. ■

The Baumer Group is a leading manufacturer anddeveloper of sensors, encoders, measuringinstruments and components for automated image-processing. Baumer combines innovativetechnology and customer-oriented service intointelligent solutions for factory and processautomation and offers a uniquely wide range ofrelated products and technologies. With more than2,500 employees and production plants, salesbranches and agencies in 36 subsidiaries and 18countries the family-owned company is alwaysclose to the customer. Industrial clients in manysectors gain vital advantages and measurableadded value from the worldwide consistency ofBaumer’s high quality standards and its enormousinnovative potential. For further information, visitwww.baumer.com.

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A comprehensive portfolio

S17 ORME 4 2012 Tech Focus 2_Layout 1 03/05/2012 14:51 Page 76

S17 ORME 4 2012 Tech Focus 2_Layout 1 03/05/2012 14:51 Page 77

Oil Review Middle East Issue Four 2012

EXPERTS FROM JOINT integrity and engineering services companyHydratight found an innovative solution to a tricky repair for Statoil, byusing a MORGRIP connector to repair a six-inch super duplex pipe locatedwithin the constrained space of a subsea manifold, 340m under the surfaceof the North Sea.

Hydratight was called in to repair a damaged pipe on a subsea wellhead‘Christmas tree’ on the Troll C oil and gas platform, 100-km north-west ofBergen, Norway.

A mandrel and its six inch supporting pipe were pulled out of positionduring an operation, overloading the pipe and forcing the shut-down of anassociated 10-inch line, halting production.

“At that depth solutions were limited,” said Hydratight applicationengineer Mark Fisher.

A six-inch super duplex MORGRIP end-connector had to be a speciallyengineered solution to fit within the significant physical constraints of thedamaged manifold.

“The cracked pipe was partially inside the manifold, so we had to ensurethat the MORGRIP’S overall dimensions were an absolute minimum to get itto fit,” explained Mark.

The pipe – which carries a mixture of water, oil and gas – was pressure-tested to 267 bar after the procedure, and will be tested again from time totime to make sure the pipe hasn’t deteriorated further.

The MORGRIP successfully sealed the line in accordance with Statoil’srequirements.

The pipe integrity was retained with no de-rating of the pipeline ordeviation from original design.

AS PART OF its continuing efforts to address the growing needs and demandsof the region’s oil and gas segment and general pipeline industries, JotunPowder Coatings, has revealed a strategic move to expand its current pipelinecoatings portfolio. To bolster this move, the company has combined its powderand liquid coatings to create and develop a new extensive range of pipelinecoating solutions; providing transmission pipelines with the required protection– both inside and out. The move complements Jotun’s efforts to increase itsregional market share over the next three years.

The move also aims to create a one-stop-shop for Jotun’s customers andprovide a single point of contact to meet the unique pipeline coating needs ofoil and gas companies and pipeline applicators - making the entire processsmoother, more efficient, quicker and more economical.

To date, Jotun currently enjoys a 30 per cent market share of the MiddleEast pipeline coatings market and plans to significantly increase its presenceover the next three years. Jotun is widely recognized as a leading pipelinecoating solutions provider; protecting more than 100,000-km of pipelines overthe last 30 years.

“Combining both liquid and powder coatings to create a new range ofpipeline coating solutions that provide the best protection inside and out, is inline with our move towards achieving an increased presence in the region’spipeline coatings segment,” said Andrea Meconcelli, Global Commercial Directorfor Functional and Architectural - Jotun Powder Coatings and the Global ConceptManager for Jotun Pipeline Solutions. “Our dedication towards the research anddevelopment of improved powder and liquid coating solutions has placed us atthe forefront of the coatings industry. Jotun will continue to remain steadfast inits commitment to meet the demands of our growing customer base by offering amore streamlined supply chain covering all stages - from quotation to delivery.”

Expanded pipeline coatings portfolio

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AARGUABLY THE MOST cost-effectiveinvestment that any plant operatorcan make today lies in InformationManagement software. Learn how

current technologies can bring measurablebusiness value in asset management.

The problemThe information necessary for efficient plantoperation is often fragmented, hard to accessand use, and of uncertain reliability. Over time,the many different applications for differenttasks, each with its own data format, havecreated ‘silos’ of information: isolated, unableto be cross-referenced, and hard to use withoutthe originating software.

The solutionThe solution is not conventional datawarehouse technology. The data is alreadystored, ‘warts and all’; the need is to find abetter way of using it. Recognising this, AVEVAdeveloped a solution to unlock the silos –AVEVA NET.

AVEVA NET enables users right across thebusiness to visualise and collaborate on alltypes of data and documents – securely, in a

highly automated way, and without any needfor the original authoring applications in whichthe data was created. Through the AVEVA NETGateways it can access and integrate disparateinformation, from documents and schematicdiagrams to 3D models and even real-timeprocess data, from any system the organisationhas already invested in. It is read-only, sosource data is not compromised; it validatesand cross-references data automatically on

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How information management puts youin control of operational success, by DirkDrozd, Senior Vice President - MiddleEast, AVEVA.

Unlocking the

silosThe solution is not conventional data warehouse technology

S18 ORME 4 2012 IT_Layout 1 04/05/2012 11:39 Page 79

SCHLUMBERGER HAS ACQUIRED GEDCO, a Calgary-basedprovider of integrated geophysical survey design software andservices. The group will become part of the WesternGecobusiness unit. GEDCO has developed OMNI 3D*, the industry’sstandard forseismicsurveydesign andmodeling,and VISTA*,a flexible2D/3Dseismic dataprocessingpackage.The groupalso offersconsultingservices for2D and 3D seismic and vertical seismic profile (VSP) solutionsfrom design through interpretation.As the industry explores for oil and gas in increasingly complex

geological environments with higher risks and ever increasingtime pressure, survey design and modeling becomes even morecritical to success.

Schlumberger acquires GEDCO

import, highlighting your data’s maturity,inconsistencies and gaps for correction. AVEVAdescribes this process as creating a ‘digitalplant’, the accurate, as-built counterpart in theinformation world of the real plant in thephysical world. And just as one can walkaround and examine the real plant, so AVEVANET enables any user, anywhere across theenterprise, to navigate the complex informationasset that is the digital plant, using an intuitivebrowser application.

Extracting the asset valueOnce AVEVA NET is integrated with other

enterprise systems, such as engineering anddesign, ERP, financial management, or EnterpriseAsset Management (EAM) solutions includingAVEVA WorkMate, it can provide an unrivalledlevel of control over even the most complexassets. Correlating and viewing hithertoincompatible information can reveal andquantify hidden causes of operational issues,greatly enhancing the value of the existingmanagement solutions.

Equally valuable, AVEVA NET can compilereports from many data sources, including KPIs.This can also enable regulatory compliancereports to be configured, scheduled, and

updated as requirements change. There is alsogrowing interest in using the technology tohandle shift handover logs, where it canautomate data entry, guarantee the transfer ofaccurate information between teams and reduceoperational inefficiencies and risk.

With AVEVA Information Managementsoftware at their fingertips, plant operatorscan ensure their asset performs reliably, safelyand cost effectively. Managing and exploitingall the information available about the assetand unlocking the full value of theirinformation assets will deliver measurablebottom line benefits. ■

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SONARDYNE INTERNATIONAL LTD has received an order valued at overUS$3mn from international oil and gas turnkey contractor, Saipem. Theorder includes six SPRINT systems and associated acoustic positioningequipment making it Sonardyne’s largest sale of acoustically aidedinertial navigation technology to date. SPRINT (Subsea PrecisionReference Inertial Navigation Technology) will be deployed in April in theWest Delta Deep Marine concession (WDDM). This natural gas field issituated about 90-km offshore the North-West Nile Delta, at water depthsbetween 400 and 1,000 metres. Saipem is responsible for theengineering, procurement, construction and installation of a total of eightnew subsea wellheads and relevant infrastructures, umbilicals andflowlines. Since its launch in 2010 SPRINT has been operationally provento extend the operating limits and increase the efficiency of subseaoperations when using Ultra Short BaseLine (USBL) and Long BaseLine(LBL) positioning systems. In the Sparse LBL mode that Saipem plans tooperate SPRINT in at WDDM, surveyors will be able to obtain accuratehigh integrity positioning data with less equipment to deploy than fullLBL. This will significantly reduce operation time and vessel costs. SPRINTtightly couples Sonardyne’s Lodestar INS platform with Fusion 6G, theindustry standard LBL system. With known transponder positions, theLodestar mounted on an ROV can use the ranges from one or more seabeddeployed transponders to acoustically aid the INS and constrain errorgrowth in the absolute position output. Commenting on the order,Sonardyne’s Vice President Europe and Africa, Barry Cairns said, “We aredelighted that Saipem has shown its commitment to SPRINT. Thecompany has been a major user of Sonardyne products for many years andthis latest order is recognition of the major cost and time savings SPRINTand sparse LBL will bring to its field development projects.”

www.slb.com

Sonardyne receives SPRINT order

S18 ORME 4 2012 IT_Layout 1 03/05/2012 14:54 Page 80

Now in its 27th year of publication,

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enviable reputation for the breadth and depth of

its editorial. Its coverage spans the Middle East,

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helping you build that brand recognition with the people that matter.

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S19 ORME 4 2012 Arabic_Layout 1 03/05/2012 15:23 Page 83

5 - 8June 2012

Baku • Azerbaijan

www.caspianoil-gas.com

LEADINGOIL & GAS EVENTIN CASPIAN REGION

19th International

CASPIAN OIL & GASExhibition and Conference

Refining & PetrochemicalsIncorporating

London • Moscow • Almaty • Baku • Tashkent • Atyrau • Aktau • Istanbul • Hamburg • Beijing • Poznan • Dubai

YªÉ¿ J©àõΩ RjÉOI GEfàÉê Gdæا gòG Gd©ÉΩ

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eójæá Gdμƒjâ, hPd∂ ’S°àμû°É± GEeμÉf«á GŸ†°»

bóeÉ ‘ GŸû°ôh´ eø Yóe¬.

YYªÉ¿ J©àõΩ RjÉOI GEfàÉê Gdæا gòG Gd©ÉΩ

G’EfàÉê GdæØ£» Gdμƒjà» ’ jõG∫ KÉHàÉ

RjÉOI GEfæÉê M≤π Môhjπ J©ƒO HÉdæØ™ Y∏≈ ›ªπ G’EfàÉê Gd©ªÉÊ

S°Ée» GdôGT°ó:

Gdμƒjâ Jù°©≈

GE¤ GEfàÉê 4

eÓjÚ Hôe«π

jƒe«É e™

M∏ƒ∫

GCMói eæû°ÉCä

Gdæا GdàÉH©á

dû°ôcá Gdμƒjâ

GdÑÎhd«á

S19 ORME 4 2012 Arabic_Layout 1 03/05/2012 15:24 Page 85

GQJØÉ´ GEfàÉê GCHÉJû°» ‘ eü°ô éó∫ KÓKá HÉŸÉFá

J˘ƒb˘©˘Éä H˘Éf˘îØÉV¢ GEfàÉê GÿÉΩ G’EjôGÊ

S19 ORME 4 2012 Arabic_Layout 1 03/05/2012 15:24 Page 86

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GGQJØÉ´ GEfàÉê GCHÉJû°» ‘ eü°ô éó∫ KÓKá HÉŸÉFá

GCY∏æâ T°ôcá GCHÉJû°» GCf¡É bó Qa©â eø e©ó’ä

GEfàÉL¡É ‘ Gdü°ëôGA Gd¨ôH«á Ãü°ô gòG Gd©ÉΩ

éó∫ KÓKá HÉŸÉFá fà«éá ’EHôGΩ S°Ñ©á Y≤ƒO GEjéÉQ

LójóI. hGCU°óQä Gdû°ôcá H«ÉfÉ GChV°ëâ a«¬ GC¿

GELªÉ‹ fÉœ Gdû°ôcá G◊É‹ ‘ eü°ô jÑ∏≠ MƒG‹

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eμ©Ö eø Gd¨ÉR jƒe«É, HÉQJØÉ´ jÑ∏≠ 3% Yø 1102.

hU°˘˘˘˘ôì J˘˘˘˘ƒΩ a˘˘˘˘ƒj˘˘˘˘à˘˘˘˘ƒa˘˘˘˘«˘˘˘˘àû¢, f˘˘˘˘ÉFÖ Gd˘˘˘˘ôF˘˘˘˘«ù¢ Ÿæ˘˘˘˘£˘˘˘≤˘˘˘á

eü°ô, bÉFÓk: ''” J©õjõ e©ó’ä G’EfàÉê YÈ GEV°Éaá

0025Hôe«π eμÉaÅ fا jƒe«É, hGQOI eø Y≤ƒO

Gd˘˘˘à˘˘˘£˘˘˘ƒj˘˘˘ô Gdù°˘˘˘Ñ˘˘©˘˘á G÷ój˘˘óI ‘ M˘˘ƒV¢ a˘˘ÉZ˘˘ƒQ. c˘˘ª˘˘É

J˘˘˘˘˘˘˘≤˘˘˘˘˘˘˘ƒΩ Gdû°˘˘˘˘˘˘˘ôc˘˘˘˘˘˘˘á H˘˘˘˘˘˘˘ÉCY˘˘˘˘˘˘˘ª˘˘˘˘˘˘˘É∫ Gd˘˘˘˘˘˘˘à˘˘˘˘˘˘˘æ˘˘˘˘˘˘˘≤˘˘˘˘˘˘˘«Ö Y˘˘˘˘˘˘ø G’BK˘˘˘˘˘˘ÉQ

G÷ƒQGS°˘˘˘˘«˘˘˘˘á hGd˘˘˘˘£˘˘˘˘Ñ˘˘˘˘ÉT°Òj˘˘˘˘á hGd˘˘˘˘Ñ˘˘˘˘Éd˘˘˘˘«˘˘˘˘ƒRhj˘˘˘˘á L˘˘˘˘æ˘˘˘˘ƒÜ

hZôH» MƒV¢ aÉZƒQ''. hGCV°É± aƒjàƒa«àû¢ bÉFÓk:

''g˘˘˘òG Gd˘˘˘à˘˘˘ƒS°˘˘˘™ Gd˘˘˘¡˘˘˘ÉF˘˘˘π ‘ eù°˘˘˘ÉM˘˘˘á Gd˘˘˘à˘˘£˘˘ƒj˘˘ô GŸ≤˘˘óQI

H˘˘˘É’Cc˘˘˘ô ‘ M˘˘˘ƒV¢ a˘˘˘ÉZ˘˘˘ƒQ J˘˘˘ÉCJ˘˘˘» c˘˘˘æ˘˘˘à˘˘˘«˘˘˘é˘˘˘á d˘˘˘∏˘˘˘ª˘˘˘©˘˘˘ôa˘˘˘á

G’Eb˘˘∏˘˘«˘˘ª˘˘«˘˘á Gd˘˘õGN˘˘ôI Gd˘˘à˘˘» “à˘˘∏˘˘μ˘˘¡˘˘É T°˘˘ôc˘˘á GCH˘˘ÉJû°˘˘»,

hGd˘˘˘˘à˘˘˘˘» “μ˘˘˘˘ø Y˘˘˘˘∏˘˘˘˘ª˘˘˘˘ÉF˘˘˘˘æ˘˘˘˘É G÷«˘˘˘˘ƒd˘˘˘˘ƒL˘˘˘˘«Ú e˘˘˘ø –ój˘˘˘ó

G’Cg˘˘˘˘óG± GŸà˘˘˘˘©˘˘˘˘óOI G÷ƒGfÖ, a˘˘˘˘«˘˘˘ª˘˘˘É j˘˘˘©˘˘˘μ˘˘˘Ø˘˘˘ƒ¿ Y˘˘˘∏˘˘˘≈

J£ƒjô eØÉg«º LójóI. hbó GCOi gòG Gd©ªπ GE¤

Gc˘˘˘àû°˘˘˘É± N˘˘˘ªù°˘˘˘á M˘˘˘≤˘˘˘ƒ∫ a˘˘ÉZ˘˘ƒQ L˘˘ój˘˘óI Y˘˘∏˘˘≈ e˘˘óGQ

G’CT°˘˘˘˘¡˘˘˘˘ô Gdù°˘˘˘à˘˘˘á GŸÉV°˘˘˘«˘˘˘á''. h‘ X˘˘˘π H˘˘˘æ˘˘˘ƒO GJ˘˘˘Ø˘˘˘Éb˘˘˘«˘˘˘Éä

G’EfàÉê GŸû°Î∑ GŸÈeá e™ G◊μƒeá, jÑ∏≠ U°É‘

GEfàÉê T°ôcá GCHÉJû°» eÉ j≤ôÜ eø fü°∞ G’EfàÉê

G’ELªÉ‹. Y∏ªÉ HÉC¿ GEfàÉê T°ôcá GCHÉJû°» ‘ eü°ô

Áãπ 02% eø GEfàÉê Gdû°ôcá ‘ Lª«™ GCfëÉA Gd©É⁄.

hJ©μ∞ Gdû°ôcá ‘ Gdƒbâ G◊É‹ Y∏≈ MØô 62

eƒb©É ‘ GdÑÓO.

GCaÉO Hæ∂ L» H» eƒQLÉ¿, ‘ GCMó Gdà≤ÉQjô

HÉC¿ GEfàÉê GEjôG¿ eø Gdæا GÿÉΩ bó jæî؆¢

Ã≤óGQ e∏«ƒ¿ Hôe«π jƒe«É Hæ¡Éjá jƒf«ƒ/MõjôG¿

d«≤π Yø 5^2e∏«ƒ¿ Hôe«π jƒe«É. hGCaÉO GdÑæ∂

H˘˘˘˘ÉC¿ T°˘˘˘˘ôc˘˘˘Éä Gd˘˘˘à˘˘˘μ˘˘˘ôj˘˘˘ô b˘˘˘ó N˘˘˘Ø†°â W˘˘˘∏˘˘˘Ñ˘˘˘¡˘˘˘É Y˘˘˘∏˘˘˘≈

Gdæا GdƒGQO eø GEjôG¿ Hû°μπ GCS°ô´ eø GŸàƒb™.

h‘ hGMóI eø cÈi OQGS°Éä GdàæуD Gdà» GCLôjâ

M˘˘˘˘ƒ∫ J˘˘˘˘ÉCKÒ Gd˘˘˘˘©˘˘˘˘≤˘˘˘˘ƒH˘˘˘˘Éä Gd˘˘˘˘à˘˘˘˘» a˘˘˘˘ôV°˘˘˘à˘˘˘¡˘˘˘É Gd˘˘˘ƒ’j˘˘˘Éä

GŸà˘˘˘˘˘ë˘˘˘˘˘óI hG’–ÉO G’ChQhH˘˘˘˘˘», b˘˘˘˘˘É∫ a˘˘˘˘˘ôj˘˘˘˘˘≥ GCH˘˘˘˘˘ë˘˘˘˘Éç

Gd˘˘˘˘£˘˘˘˘Éb˘˘˘˘á H˘˘˘˘Ñ˘˘˘˘æ∂ L˘˘˘˘» H˘˘˘˘» e˘˘˘ƒQL˘˘˘É¿ GE¿ g˘˘˘æ˘˘˘É∑ GCOd˘˘˘á

hGV°˘˘˘˘˘ë˘˘˘˘˘á Y˘˘˘˘˘∏˘˘˘˘˘≈ Gf˘˘˘˘˘î˘˘˘˘˘Ø˘˘˘˘ÉV°˘˘˘˘Éä g˘˘˘˘ÉF˘˘˘˘∏˘˘˘˘á ‘ e˘˘˘˘©˘˘˘˘ó’ä

GS°àÒGO Gdæا GÿÉΩ G’EjôGÊ eø LÉfÖ T°ôcÉä

Gd˘˘à˘˘μ˘˘ôj˘˘ô G’ChQhH˘˘«˘˘á hG÷æ˘˘ƒÜ GCa˘˘ôj˘˘≤˘˘«˘˘á hGd˘˘«˘˘ÉH˘˘Éf˘«˘á

Mà≈ gòG Gdƒbâ eø Gd©ÉΩ. hjæà¶ô GC¿ –óç

GfîØÉV°Éä GCNôi eø LÉfÖ T°ôcÉä GCNôi.

hb˘˘˘˘˘É∫ a˘˘˘˘˘ôj˘˘˘˘˘≥ GCH˘˘˘˘˘ë˘˘˘˘˘Éç Gd˘˘˘˘˘£˘˘˘˘˘Éb˘˘˘˘˘á H˘˘˘˘˘Ñ˘˘˘˘˘æ∂ L˘˘˘˘˘» H˘˘˘˘˘»

e˘˘˘˘˘ƒQL˘˘˘˘˘É¿ ‘ e˘˘˘˘˘òc˘˘˘˘˘ôJ˘˘˘˘˘¬ GEf˘˘˘˘˘¬ ''Hû°˘˘˘˘˘μ˘˘˘˘˘π GEL˘˘˘˘˘ª˘˘˘˘˘É‹, b˘˘˘˘˘ó

Jù°˘˘˘˘˘Ñ˘˘˘˘˘Ñâ Gd˘˘˘˘˘à˘˘˘˘˘ë˘˘˘˘˘ƒ’ä, Gd˘˘˘˘˘à˘˘˘˘˘» ” G’EH˘˘˘˘˘ÓÆ Y˘˘˘˘æ˘˘˘˘¡˘˘˘˘É, ‘

GfîØÉV¢ GBNô H∏≠ 003GCd∞ Hôe«π jƒe«É, Y∏≈

hL¬ Gdà≤ôjÖ, ‘ eÑ«©Éä Gdæا GÿÉΩ G’EjôGÊ

NÓ∫ T°¡ô GCHôjπ/f«ù°É¿, ‡É Jù°ÑÖ ‘ a≤óG¿

eÑ«©Éä bÉQHâ 007GCd∞ Hôe«π jƒe«É, GCOf≈ eø

GŸù°˘˘˘à˘˘˘ƒj˘˘˘Éä Gd˘˘˘à˘˘˘» –≤˘˘˘≤â ‘ T°˘˘˘¡˘˘˘ô j˘˘˘æ˘˘˘Éj˘˘˘ô/c˘˘Éf˘˘ƒ¿

GdãÉÊ''.

cªÉ GCV°Éaâ GŸòcôI G’BJ»: ''d≤ó ” gòG G’Ceô

Hù°˘˘˘˘˘ôY˘˘˘˘˘á GCcÈ ‡É J˘˘˘˘˘ƒb˘˘˘˘©˘˘˘˘æ˘˘˘˘É H˘˘˘˘óQL˘˘˘˘á c˘˘˘˘ÑÒI, he˘˘˘˘ø

GÙàªπ GC¿ J∏«¬ J©ójÓä GCNôi bó Jî∏∞ GEfàÉLÉ

j˘˘˘˘˘à˘˘˘˘˘ƒGU°˘˘˘˘˘π ‘ G’f˘˘˘˘î˘˘˘˘Ø˘˘˘˘ÉV¢ ’COf˘˘˘˘≈ e˘˘˘˘ø 5^2e∏«ƒ¿

H˘˘˘˘˘ôe˘˘˘˘˘«˘˘˘˘π j˘˘˘˘ƒe˘˘˘˘«˘˘˘˘É H˘˘˘˘ë˘˘˘˘∏˘˘˘˘ƒ∫ hbâ GEQS°˘˘˘˘É∫ Gdû°˘˘˘˘ë˘˘˘˘æ˘˘˘˘Éä,

hjàë≤≥ Hòd∂ U°É‘ Nù°ÉQI JÑ∏≠ e∏«ƒ¿ Hôe«π

jƒe«É e≤ÉQfá HÉŸù°àƒi Gdò… cÉfâ Y∏«¬ ‘ T°¡ô

jæÉjô/cÉfƒ¿ GdãÉÊ''. jéóQ HÉdòcô GCf¬ eø GŸæà¶ô

GC¿ jຠJØ©«π Gd©≤ƒHÉä GŸØôhV°á Y∏≈ Gdóh∫ Gdà»

Jù°àƒQO U°ÉOQGä Gdæا GÿÉΩ G’EjôGÊ HóAG eø

G’Ch∫ eø jƒd«ƒ/“ƒR.

RGO GEfàÉê GCHÉJû°» H` 0025Hôe«π eμÉaÅ fا GEV°Éa«á jƒe«É

J˘ƒb˘©˘Éä H˘Éf˘îØÉV¢ GEfàÉê GÿÉΩ G’EjôGÊ

S19 ORME 4 2012 Arabic_Layout 1 03/05/2012 15:24 Page 87

THE 4TH SAUDI ARABIA INTERNATIONALOIL & GAS EXHIBITION

24-26 SEPTEMBER 2012DAMMAM, KINGDOM OF SAUDI ARABIA

WWW.SAOGE.ORG

GCNÑÉQ

GQJØÉ´ cÑÒ ‘ GEfàÉê eü°ØÉI GdÑëôjø

GEfàÉê e涪á G’ChH∂ jÑ∏≠ QbªÉb«ÉS°«É

S19 ORME 4 2012 Arabic_Layout 1 03/05/2012 15:24 Page 88

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GGCNÑÉQ

GCaÉOä Gd¡«Äá GdƒWæ«á d∏æا hGd¨ÉR )fƒLÉ( GC¿ eü°ØÉI GdÑëôjø bó H∏≠

GEfàÉL¡É Gdù°æƒ… G’ELªÉ‹ 69e∏«ƒ¿ Hôe«π NÓ∫ Gd©ÉΩ GŸæü°ôΩ, eàéÉhRI

G’EfàÉê GŸàƒb™ Ã≤óGQ 05GCd∞ Hôe«π. hcÉfâ G’CQbÉΩ G÷ójóI bó U°óQä

‘ Gdà≤ôjô Gdù°æƒ… d∏¡«Äá GdƒWæ«á d∏æا hGd¨ÉR d©ÉΩ 1102. Y∏ªÉ HÉC¿

hGQOGä Gdæا GdÑëôjæ«á Gdù°æƒjá eø Gdæا GÿÉΩ Gdù°©ƒO… Gıü°ü¢

d∏àμôjô ŒÉhRä 762^9e∏«ƒ¿ Hôe«π, H«æªÉ H∏≠ GEfàÉê M≤π GCHƒS°©Øá 39^35

e∏«ƒ¿ Hôe«π NÓ∫ Gd©ÉΩ GŸæü°ôΩ. cªÉ GCaÉOä còd∂ HÉC¿ M≤π GdÑëôjø

GdæØ£» GCfàè 15^51e∏«ƒ¿ Hôe«π.

hbó ‚ëâ T°ôcá J£ƒjô d∏ÑÎh∫ ‘ RjÉOI GEfàÉê Gdæا GÿÉΩ eø M≤π

GdÑëôjø GdæØ£» Hæù°Ñá Jü°π GE¤ 05% eæò GaààÉM¡É ‘ YÉΩ 9002. cªÉ

GCaÉOä Gd¡«Äá GdƒWæ«á d∏æا hGd¨ÉR GCj†°É HÉC¿ GEfàÉê T°ôcá ZÉR GdÑëôjø

GdƒWæ«á eø GdÈhHÉ¿ hGdÑ«ƒJÉ¿ hGdæا bó GQJØ™ éó∫ 3^4%, e≤ÉQfá

HæàÉFè YÉΩ 0102. hGQJØ™ GELªÉ‹ GŸÑ«©Éä GÙ∏«á eø eû°à≤Éä Gdæا

d«àéÉhR 87^8e∏«ƒ¿ Hôe«π, H«æªÉ H∏¨â GŸÑ«©Éä G÷ƒjá 6^4e∏«ƒ¿ Hôe«π.

GCa˘˘˘˘˘ÉO eù°˘˘˘˘˘í GCL˘˘˘˘˘ôJ˘˘˘˘˘¬ e˘˘˘˘˘ƒDS°ù°˘˘˘˘á H˘˘˘˘ÓJù¢ GC¿ GEf˘˘˘˘à˘˘˘˘Éê

Gdæا GÿÉΩ eø e涪á Gdóh∫ GŸü°óQI d∏æا

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j˘˘˘ƒe˘˘˘«˘˘˘É ‘ T°˘˘˘¡˘˘˘ô e˘˘˘ÉQS¢/GBPGQ e˘˘˘≤˘˘˘ÉQf˘˘˘á H˘˘˘ÉEf˘˘˘à˘˘Éê H˘˘∏˘˘≠

72^13e∏«ƒ¿ Hôe«π jƒe«É ‘ Gdû°¡ô Gdù°ÉH≥,

ha≤kÉ dà≤ôjô Lójó. hjû°Ò Pd∂ GE¤ RjÉOI JÑ∏≠

021GCd∞ Hôe«π jƒe«É Yø T°¡ô aÈGjô/T°ÑÉ•.

hMù°Ö eÉ GChV°í G’S°à≤ü°ÉA Gdü°ÉOQ Yø HÓJù¢

Hû°ÉC¿ e涪á GChH∂ hGÙ∏∏Ú hGŸù°ÄƒdÚ ‘ ›É∫

Gdü°˘˘˘æ˘˘˘ÉY˘˘˘á hGd˘˘˘æ˘˘Ø˘˘§, jo˘¶˘˘¡˘˘ô Gf˘˘¡˘˘«˘˘ÉQ GCQb˘˘ÉΩ G’Ef˘˘à˘˘Éê

Gd≤«ÉS°«á GC¿ GdõjÉOGä ‘ GELªÉ‹ G’EfàÉê d«Ñ∏≠

023GCd∞ Hôe«π jƒe«É eø Gd©ôG¥ hd«Ñ«É hGŸª∏μá

Gd©ôH«á Gdù°©ƒOjá, bó JμÉaÉCä Hû°μπ LõF» e™

G’f˘˘˘î˘˘˘Ø˘˘˘ÉV°˘˘Éä Gd˘˘Ñ˘˘Éd˘˘¨˘˘á GEL˘˘ª˘˘É’k 002GCd˘˘∞ H˘˘ôe˘˘«˘π

jƒe«É eø GC‚ƒ’ hGEjôG¿.

hU°ôì Lƒ¿ c«æéù°àƒ¿, eójô HÓJù¢ Gdóh‹

dÓCfÑÉA, bÉFÓk: ''‘ HÉOÇ G’Ceô, jü°©Ö Gd≤ƒ∫ HÉC¿

e涪á GChH∂ ’ J≤ƒΩ HóhQgÉ ‘ G◊ØÉ® Y∏≈ ‰ƒ

G’Ee˘˘˘óGOGä Gd˘˘˘©˘˘˘ÉŸ«˘˘˘á. hH˘˘˘Éd˘˘æ˘˘¶˘˘ô d˘˘∏˘˘£˘˘∏Ö Gd˘˘à˘˘≤˘˘∏˘˘«˘˘ó…

Gd˘˘˘£˘˘˘Ø˘˘˘«˘˘˘∞ ‘ Gd˘˘˘ôH˘˘˘™ Gd˘˘ã˘˘ÉÊ e˘˘ø Gd˘˘©˘˘ÉΩ, jo˘æ˘˘à˘˘¶˘˘ô GC¿

Jû°¡ó e©ó’ä Gıõh¿ ‰ƒG. hKÉf«É, cÉ¿ G’Ceô

›ôO eù°˘˘˘˘˘˘˘˘ÉCd˘˘˘˘˘˘˘˘á hbâ b˘˘˘˘˘˘˘˘Ñ˘˘˘˘˘˘˘˘π GC¿ Jo˘˘˘˘˘˘˘¶˘˘˘˘˘˘˘¡˘˘˘˘˘˘˘ô Gd˘˘˘˘˘˘˘ƒGQOGä

G’Ej˘˘˘˘ôGf˘˘˘˘«˘˘˘˘á Y˘˘˘˘Óe˘˘˘˘Éä Gf˘˘˘˘ëù°˘˘˘˘ÉQ Y˘˘˘˘æ˘˘˘˘ó H˘˘˘˘óGj˘˘˘˘á a˘˘˘ôV¢

Gd˘˘˘©˘˘˘≤˘˘˘ƒH˘˘˘Éä Y˘˘˘∏˘˘˘≈ Gdû°˘˘˘ë˘˘ø d˘˘à˘˘ë˘˘ó e˘˘ø b˘˘óQJ˘˘¡˘˘É Y˘˘∏˘˘≈

GEQS°É∫ U°ÉOQGJ¡É Gd©ÉOjá eø Gdæا GÿÉΩ''.

hbÉ∫ GŸù°í Gdü°ÉOQ Yø HÓJù¢ GE¿ Gd쪫Éä

Gd˘˘˘˘˘ƒGQOI e˘˘˘˘˘ø GEj˘˘˘˘˘ôG¿ Gf˘˘˘˘˘î˘˘˘˘˘Ø†°â 颢˘˘˘ó∫ 001GCd∞

H˘˘˘˘˘ôe˘˘˘˘˘«˘˘˘˘˘π j˘˘˘˘ƒe˘˘˘˘«˘˘˘˘É d˘˘˘˘àü°˘˘˘˘π GE¤ 4^3e˘˘∏˘˘«˘ƒ¿ H˘ôe˘«˘π.

hGCV°˘˘˘˘˘˘˘˘˘˘˘˘É± H˘˘˘˘˘˘˘˘˘˘˘˘ÉC¿ G◊¶˘˘˘˘˘˘˘˘˘˘˘˘ô Gd˘˘˘˘˘˘˘˘˘˘˘ò… a˘˘˘˘˘˘˘˘˘˘˘ôV°˘˘˘˘˘˘˘˘˘˘˘¬ G’–ÉO

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dø jຠJØ©«∏``````¬ bÑπ G’Ch∫ eø jƒd«````````ƒ/“ƒR,

d˘˘˘˘˘˘μ˘˘˘˘˘˘ø J˘˘˘˘˘˘ÉCKÒ√ e˘˘˘˘˘˘ƒL``````ƒO H˘˘˘˘˘˘Éd˘˘˘˘˘˘Ø``````©˘˘˘˘˘˘π M˘˘˘˘˘«å Jù°˘˘˘˘˘©˘˘˘˘˘≈

T°˘˘˘ôc˘˘˘Éä Gd˘˘˘à˘˘˘μ˘˘˘ôj˘˘˘ô GE¤ Gd˘˘˘Ñ˘˘˘ëå Y˘˘˘ø eü°˘˘˘óQ H˘˘˘ój˘˘π

dÓEeóGOGä, GCh JƒGL¡¡É U°©ƒHÉä ‘ Gd©ãƒQ Y∏≈

S°Øø JƒGa≥ Y∏≈ Mªπ Gdæا Gÿ````ÉΩ G’EjôGÊ

f˘˘˘˘˘˘à˘˘˘˘˘˘«˘˘˘˘˘˘é````á Ÿû°˘˘˘˘˘˘μ˘˘˘˘˘˘Óä Gd˘˘˘˘˘à˘˘˘˘˘ÉCeÚ. c˘˘˘˘˘òd∂ GCX˘˘˘˘˘¡``````ôä

cª«Éä G’EfàÉê Gd©ôGb«á, ‘ Gdƒbâ G◊É‹, RjÉOI

V°˘˘˘î˘˘˘ª````á, hPd∂ f˘˘˘à˘˘˘«˘˘˘é˘˘á d˘˘∏ü°˘˘ÉOQGä Gd˘˘©˘˘Éd˘˘«˘˘á e˘˘ø

e˘˘˘˘˘æ˘˘˘˘˘£˘˘˘˘˘≤˘˘˘˘˘á G÷æ˘˘˘˘˘ƒÜ, Y˘˘˘˘˘∏˘˘˘˘˘≈ Gd˘˘˘˘˘ôZ˘˘˘˘˘º e˘˘˘˘˘ø GV°˘˘˘˘˘£˘˘˘˘˘ôGQ

Gd˘˘˘˘˘˘©˘˘˘˘˘˘ôGb˘˘˘˘˘˘«Ú GE¤ GEj˘˘˘˘˘≤˘˘˘˘˘É± f˘˘˘˘˘¶˘˘˘˘˘ÉΩ Gd˘˘˘˘˘ôH`````§ GCM˘˘˘˘˘ÉO…

GÙ£˘˘˘˘˘˘˘˘˘Éä - hg˘˘˘˘˘˘˘˘˘ƒ G’Ch∫ e˘˘˘˘˘˘˘˘˘ø N˘˘˘˘˘˘˘˘˘ªù°``````á GCf˘˘˘˘˘˘˘˘˘¶˘˘˘˘˘˘˘˘ª˘˘˘˘˘˘˘˘á

jo˘˘˘˘˘î˘˘˘˘˘˘£```§ ’EOQGL˘˘˘˘˘˘¡``````É ‘ Gÿóe˘˘˘˘˘˘á H˘˘˘˘˘˘ë˘˘˘˘˘˘∏˘˘˘˘˘˘ƒ∫ Y˘˘˘˘˘ÉΩ

4102- hPd∂ ’EL˘˘˘˘˘˘ôGA GCY˘˘˘˘˘˘ª˘˘˘˘˘É∫ Gdü°˘˘˘˘˘«˘˘˘˘˘Éf˘˘˘˘˘á H˘˘˘˘˘©˘˘˘˘˘ó

–ª«π U°¡ôjè hGMó a≤§.

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jƒe«É Yø eù°àƒjÉJ¬ GŸ©¡ƒOI bÑπ GdãƒQI. hj≤óQ

GŸù°˘˘˘˘˘˘í e˘˘˘˘˘˘à˘˘˘˘˘˘ƒS°˘˘˘˘˘˘§ G’Ef˘˘˘˘˘˘à˘˘˘˘˘˘Éê ‘ T°˘˘˘˘˘˘¡˘˘˘˘˘ô e˘˘˘˘˘ÉQS¢/GBPGQ

Ã≤óGQ 53^1e∏«ƒ¿ Hôe«π jƒe«É, U°©ƒOG eø

001GCd∞ Hôe«π jƒe«É ‘ T°¡ô aÈGjô/T°ÑÉ•.

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Gdù°©ƒOjá d«ü°π GE¤ 58^9e∏«ƒ¿ Hôe«π jƒe«É ‘

T°¡ô aÈGjô/T°ÑÉ•.

GQJØÉ´ cÑÒ ‘ GEfàÉê eü°ØÉI GdÑëôjø

GEfàÉê e涪á G’ChH∂ jÑ∏≠ QbªÉ b«ÉS°«É

eü°ØÉI GdÑëôjø GdƒM«óI Jõjó eø GEfàÉL¡É

GEfàÉê e棪á GChH∂ jõOGO ‘ eÉQS¢/GBPGQ

S19 ORME 4 2012 Arabic_Layout 1 03/05/2012 15:24 Page 89

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www.oilreview.me

Country Representative Telephone Fax Email

China Wang Ying (86)10 8472 1899 (86) 10 8472 1900 [email protected] Tanmay Mishra (91) 80 65684483 (91) 80 40600791 [email protected] Camilla Capece (39) 06 97619380 [email protected] Bola Olowo (234) 8034349299 [email protected] Sergei Salov (7495) 540 7564 (7495) 540 7565 [email protected] Africa Annabel Marx (27) 218519017 (27) 46 624 5931 [email protected] Saida Hamad (974) 55745780 [email protected] UK Steve Thomas (44) 20 7834 7676 (44) 20 79730076 [email protected] Michael Tomashefsky (1) 203 226 2882 (1) 203 226 7447 [email protected]

GCNÑ````ÉQ

ÙÉä Yø H©†¢ GdÑ∏óG¿:e©ôV¢ Gdæا Gd≤£ô…, e©ôV¢ HÎhaÉ∑, b£ô

heójæá QGCS¢ ’aÉ¿ Gdü°æÉY«á.

GCfû°£á U°æÉY«á:Gdæ≤π GdÑëô… , eôGb«á G’BHÉQ.

J≤æ«Éä:“ójó Yªô G◊≤ƒ∫, J≤æ«á Gdôa™ G’U°£æÉY», cØÉAI Gdàû°¨«π.

JμæƒdƒL«É GŸ©∏ƒeÉä hG’Jü°É’ä:GEOGQI GdÑ«ÉfÉä ‘ GŸƒDS°ù°Éä.

–∏«```Óä4

01 –∏«```Óä01

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

Adghal Oilfield Supplies LLC..................................71

Aggreko Middle East Limited ..................................4

Al Mansoori ..............................................................15

ALAA Industrial Equipment Factory ....................16

Asturi Metal Builders (M) SDN BHD ....................41

Aveva Solutions Ltd ................................................47

Bapco ........................................................................45

Blueback Reservoir AS ..........................................79

Bredero Shaw ..........................................................13

Cansco Dubai LLC ....................................................91

CARBO Ceramics ....................................................30

Chevron ....................................................................10

DMG World Media

(ADIPEC 2012) ..................................................49, 82

DMT GmbH and Company KG ..............................41

Dolphin Oilfield Equipment Services ..................28

Draeger Safety ........................................................44

Duferco ......................................................................64

Elliott Group ............................................................27

Emerson Process Management

Valve Automation INC ..........................................17

Expotim International Fair ORG. INC

(Basra Oil & Gas 2012) ..........................................86

Fugro Geoteam AS ....................................................7

Gates Engineering and Services ..........................53

Hi-Force Ltd. ............................................................19

Hydroflow Pump Rental Est ..................................63

Inmarco Industries FZC ..........................................44

Inova Geophysical Equipment Limited ..............69

International Exhibition Services SRL

(SAOGE 2012) ..........................................................88

ITE Group Plc (Caspian Oil & Gas 2012) ..............84

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

LITREMETER ..............................................................73

Magnetrol International N.V. ................................60

Marelli Motori S.p.A. ..............................................31

Metscco Heavy Steel Industries

Company Limited ....................................................33

Middle East Specialised Cables (MESC) ............67

Mimo Contracting ..................................................51

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

Oil Lift Technology Inc. ..........................................77

Oman Cement Company ........................................35

Petrotech Enterprises LLC ......................................37

Prakash Steelage Ltd. ............................................55

Ras Laffan Industrial City ......................................56

Red Helix International Ltd. ..................................42

Sabin Metal Corporation ........................................25

Saga PCE Pte Ltd ....................................................29

Schlumberger Oilfield Mktg Communications ....57

Schlumberger Technical Services, Inc. ................2

Shree Steel Overseas FZCO ..................................63

Sin Hiap Chuan Hardware and

Engineering Pte Ltd ................................................73

Southern California Valve ......................................59

Specialized Oilfield Products ..................................9

Spina Group Srl ........................................................54

Suraj Limited ............................................................49

Tenaris ......................................................................23

Tranter Heat Exchangers ME (Cyprus) Ltd ..........39

Triplefast Middle East ............................................59

Veritas-MSI China Company Limited ..................80

VF Imagewear/Bulwark ........................................65

Voith Turbo GmbH & Co KG ..................................42

Ward Leonard Electric Company, Inc. ................78

ADVERTISERS INDEX

Country Representative Telephone Fax Email

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

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

Italy

Nigeria

Russia

South Africa

Qatar

UK

USA

China

India

Italy

Nigeria Bola Olowo (234) 8034349299 [email protected]

Russia Sergei Salov (7495) 540 7564 (7495) 540 7565 [email protected]

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

Qatar Saida Hamad (974) 55745780 [email protected]

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

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

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