INTERVIEW: Siemens INTERVIEW: Siemens

SIEMENS MAKING INROADS IN THE OIL AND GAS INDUSTRY

Ali Vezvaei, senior executive vice president and general manager, Middle East & North Africa for Siemens Energy Oil and Gas, reveals exclusive details about the German firms expansion of its oil and gas division and recent strategic acquisitions

li Vezvaei has been with Siemens Energy Oil and Gas since 2005. Before taking over his current role in 2011, he was VP of strategy and head of M&A globally for more than two years, which gave him a unique understanding of why recent acquisitions have put Siemens in a prime position to expand its oil and gas operations both here in the region and globally. We have acquired some very interesting companies recently, enhancing Siemens existing offerings and bringing us into new fields, such as subsea, Vezvaei explains. Siemens Oil and Gas division, an approximately US$5.5bn operation, is one of the pillars operating under the Energy Sector, and we have grown this business in the last few years organically while enhancing the portfolio with a number of strategic acquisitions, he adds. Within the Siemens Oil and Gas division there are distinct areas of focus, including rotating equipment, electrification, oil and gas solutions, offshore and onshore power generation, water solutions and finally, subsea solutions.

Vezvaei remarks that Siemens electrification and oil and gas solutions, is where we have really transformed from a product supplier to a technology partner of choice. The oil and gas industry consumes vast quantities of water, and the recent integration of the relevant portfolio of the acquisition of US Filters by Siemens enables the companys oil and gas division to help the hydrocarbon industry better utilise and preserve this essential resource. Siemens addresses five segments in this area - produced water treatment, water treatment for injection and re-injection, hydrofracturing water treatment, process water treatment and wastewater treatment which, in Vezvaeis eyes, give Siemens a real edge in the region. Natural gas is also playing an ever greater role in the energy mix. The demand and development in regions such as MENA, in conjunction with the increasing importance of energy independence, point towards a future in which every tcf must be properly exploited, optimally captured, and efficiently utilised, says Vezvaei. This is where solutions like no-flare

and sour or acid gas management are expected to have bold contributions. On the sour and dirty gas side, Siemens has developed a first-of-its-kind canned, sealless and fully integrated electrically driven compressor. The STC ECO has been designed to meet demanding requirements, and successfully passed the field tests with Shell and NAM Netherlands. Considering the number of sour fields in MENA region, from BAB in the UAE to fields in Saudi and elsewhere, we expect to add significant value to our customers operations, says Vezvaei. There are units on their way for installation in the Middle East, and we are in discussions to supply more. Siemens is also focused on strategic solutions for the oil and gas industry, involving Enhanced Oil Recovery (EOR), mid-sized LNG and unconventional gas. At the 20th World Petroleum Conference in Doha, Qatar, Siemens Oil & Gas and Maersk Oil signed an agreement under which Siemens would develop and build a turbine

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INTERVIEW: Siemens
solution around Maersk Oils acquired license rights to the pure oxygen combustor from US-based Clean Energy Systems (CES), whose technology is derived from the space industry. The resulting solution, TriGen, owes its name to the fact that it will deliver three products: reservoir-ready CO2, pure water and near zeroemission power. The project started almost two years ago, and the first turbine has already been built and tested along with the gas generator in California, USA. Siemens and Maersk are looking to push this leap in rotating equipment and field development technology to the next level. We call it the magic box, especially for regions like the Middle East as it has the potential to address several challenges together, says Vezvaei. EOR in the Middle East is further developing as assets are ageing. Countries like UAE, Oman, Saudi and Kuwait are expected to have a leading role in deploying advanced EOR solutions, he notes. There are discussions ongoing with several customers around the world, and of course in the region, to move this collaboration to the next level, perhaps with a small-scale pilot then future expansion, Vezvaei reveals. Subsea power While the companys involvement in subsea oil and gas may not be widely known, Siemens began advancing into the sector some years back. The company has been working closely with customers and specialists to develop a solution that meets the offshore and sea-bed operational challenges. We developed a solid strategy, combining in-house technological development and electrification expertise with focused acquisitions, says Vezvaei. Siemens acquired two specialised Norway-based companies in the subsea engineering and solutions arena Poseidon and Bennex and at last years OTC in Houston announced the acquisition of Expros connectors and measurements arm, marking the firms arrival as a major player in the subsea sector. The result of these efforts will be a revolutionary new solution the subsea power grid, Vezvaei says. The Siemens subsea power grid is the first of its kind in supplying safe and reliable power to processing equipment at depths of up to 3,000m. The package provides the power cables, transformers, switchgear and variable speed drives to power up and control electrical pumps or turbo compressors, separators and other processing equipment traditionally kept on surface platforms. Offshore development has its own unique challenges from installation weight, cost and safety to environmental aspects and vulnerability to climatic conditions, he remarks. That is why there are solid efforts to bring the process as close as possible to the well on the sea floor, and our job at Siemens is to make sure there is reliable power available. Vezvaei explains: We see good future potential for subsea solutions in the region, with considerable hydrocarbon potential in areas like the Red Sea or the Mediterranean, for example. NOCs to IOCs and independents to analyse and improve upstream operations in alignment of oil field reservoirs, well production optimisation and fleet efficiency enhancement. Looking at a broad customer base like Exxon, Chevron, Aramco, BP , Sinopec etc we are proud to see that our XHQ solution helps our clients monitor a significant percentage of the worlds oil and gas production, says Vezvaei. Data is rising in importance significantly. Smart analysis of real-time data is an internal source of profitability for oil and gas companies, which is why we call it the era of Data to the Bottom Line. Its no longer just about how you can further push your equipment; rather how you can better capture, analyse and command your entire value chain based on the real-time picture you have, Vezvaei says. The smart acquisition and management of real time data is also the bridge to the digital oilfield, which is becoming more and more relevant in the region. Things are rapidly changing here and we believe that for the years to come, the Middle East will see fields becoming smarter and increasingly utilising the real time data to enhance the financial aspects, he remarks. Middle East ambitions There is great opportunity in the region, says Vezvaei. For Siemens, our growth sectors are EOR, digital oilfields, water solutions and unconventional gas, which will eventually emerge here in the region. In terms of markets Vezvaei sees huge growth potential in Iraq, which he says has excellent prospects. Saudi Arabia, Oman, Kuwait and UAE have also contributed as key players to the growing oil and gas industry in the region, according to Vezvaei. We have been successful in Iraq in the last couple of years. We have extended our support to the Ministry of Oil and all its establishments as a technology partner providing customised solutions and of course reliable equipment, he notes. Vezvaei reveals that Siemens has entered into discussions regarding a packaging and service facility along with a training centre to be built in Iraq, which will support Iraqi talent development, local employment, and knowledge transfer.

Ali Vezvaei, Siemens Energy Oil and Gas Big data The increased complexity and use of data in the hydrocarbon industry led by modernisation of the existing assets and emergence of intelligent fields are being viewed as exciting areas and growth opportunities for Siemens. A specialised offering by Siemens has been created by streamlining two strategic US acquisitions, INDX Software Corp. with its flagship product XHQ, and Berwanger Inc., a Houston-based engineering and software development group. Siemens has further enhanced the portfolio and today, XHQ is one of the worlds largest real-time Operations Intelligence Solutions, enabling customers from super majors and

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