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Oman Country focus

Is there light at the end
of the tunnel for Oman’s
upstream sector? / p26

Iraq’s oil revenue
conundrum / p6







Dr Esra Al Hosani, instrumentation and control engineer at ADNOC
Group Company ADCO says upstream needs to employ the next
generation and encourage innovation

19–21 FEBRUARY 2018


The Essential Meeting

Place for the Middle East
Downstream Industry
+971 (0)4 421 4642




REFINING & PETROCHEMICALS ■ Viability of Liquids Cracking ■ IMO MARPOL VI - The
■ Market Overview & Forecasting in the MENA Region Implications, Consequences &
■ Keynote Speeches by High Level End- ■ Overcoming Middle East Feedstock Possible Solutions
Users & NOCs Challenges via New Technology ■ Clean Fuels Technologies &
■ Project Updates from Key Regional ■ New Specialty Petrochemicals Latest Innovations in Catalysts
Producers Technologies ■ Technology Updates – Options
■ Refining & Petrochemicals Integration ■ Latest in Advanced Olefins & for Maximising Conversion
■ Implementing Optimisation & Polyolefins Technologies
Management Tools


JANUARY 2018 / Volume 14 Issue 01

Highlights in this issue:
20 26 31 42
Exclusive Country Special Unmanned
interview focus report surveillance
Dr Esra Al Hosani, an There is a light at the end Why is digitalisation Unmanned surveillance
engineer from ADCO of the tunnel for Oman’s important? How do you tools are becoming more
speaks to Oil & Gas about oil and gas industry, implement it? What does it and more popular in the
why upstream should be analysts say that 2018 is all mean? We answer these oil and gas industry, in
hiring fresh graduates, looking up. We speak to a question in this month’s particular, unmanned
and encouraging more range of experts on what special report, which looks aerial vehicles, we look at
innovation in research the industry will look like at digitalisation and digital their uses and why they
and development. this year. asset management. have become a hot topic.

SANS Institute looks at current cyber security threats to industrial control

EXPERT ANALYSIS: systems in oil and gas, and what companies can do to stop them / P8 JANUARY 2018


Also inside: 06 08 16
05 / Editor’s letter
Why is oil and gas still
overlooking its biggest threats?

06 / In Numbers
We look at Iraq’s latest oil
production numbers.
18 22
08 / News analysis
ICS systems are still
under threat.

12 / News
Top news from the upstream

16/ Comment
The known unknowns of the
Saudi Aramco IPO. KEEP
4 For all the latest
18 / Comment news, check out

Cleaning up contaminated land

across the Middle East.

20/ Cover story

Dr Esra Al Hosani, believes that
young people will bring fresh
ideas and innovation to the oil Editor’s choice:
and gas industry.
• O&GME Top 30 Oilfield
26 / Country focus Services Companies 2017
Is Oman on the up? • Oil & Gas Middle East Top 30
EPC Contractors list 2017
26 • Video: O&GME and AVEVA
49 / People hosts roundtable
A round-up of recent industry • Video: O&GME and R&PME
appointments and promotions. Awards 2017 achievers

54/ Project listings App

An exhaustive list of projects
information by DMS Projects.

58 / Five
Minutes With...
Kamal Mokrani, Global Vice
President, InfiNet Wireless.
42 50

Grab might just mean a breakthrough in

EOR techniques, better data analy-
sis from a well component, or a life

PO Box 500024, Dubai, UAE
Tel: 00 971 4 444 3000 saved through better HSE ideas.
Offices in Abu Dhabi, Dubai, London & Mumbai
Cyber security is an area that
everyone in the upstream vertical
ITP Media Group
CEO: Ali Akawi
Executive Director: Matthew Southwell
Group Editorial Director: Greg Wilson
Group Publishing Director: Ian Stokes
by the horns should have jumped on years ago.
Every year cyber security compa-
nies say the same thing. Did Sha-
Upstream needs to evolve and moon and Stuxnet teach no one
Editorial Director: Robert Willock
Tel: +971 4444 3357 email:
move with the times, or it will lose anything? Who is going to be to
out on profit blame if a cyber-attack spills tank-
Sales Manager: Kimberley Barnes
ers’ worth of crude into the sea? It
Tel: +971 4444 3351 email: certainly isn’t the tanker’s fault. By

ITP Digital
he oil and gas industry is not implementing an effective cy-
Advertising Director: Riad Raad teetering on a cliff at the ber security policy, companies are
Tel: +971 4 444 3319, email:
moment, unsure whether playing with billions and billions
ITP Live
General Manager: Ahmad Bashour
the oil price is set to improve, in potential compensation.
Tel: +971 4 444 3549 email: maintain current levels, or dip. What this boils down to is that
Market reports all point to a the upstream industry simply
Head of Design: Genaro Santos slow and steady improvement, needs to just modernise its ideas
This issue has
Photography a particularly but upstream companies can- and the way it does business. Per-
Director of Photography: Patrick Littlejohn
Senior Photographers: Rajesh Raghav, Efraim Evidor,
technological bent, not just sit on their laurels and haps finally it really is a case of
Richard Hall, Ethan Mann featuring the wait for better prices to come modernise or fail?
Staff Photographers: Lester Apuntar, Aasiya Jagadeesh,
Ausra Osipaviciute, Grace Guino, Fritz Asuro, Sharon
latest on unmanned to them. Now is the time to act, 5
surveillance and
Haridas, Ajith Narendra improve processes, innovate, Editor, Oil & Gas Middle East
digitalisation [pg 31].
Production & Distribution experiment and research. Now
Group Production & Distribution Director: Kyle Smith
Production Manager: Basel Al Kassem
is the time to trim the fat off operating costs,
Outsource Manager: Aamar Shawwa squeeze every drop of profit out of every function In 3-5 years how much does
Production Coordinator: Mahendra Pawar
Senior Image Editor: Emmalyn Robles
in the company. your company plan to spend on
To sing a mantra that has been pushed on the digital tech?
Director of Conferences, Circulation & Data: Michael McGill industry for quite a few years now, digitise, digit-
Senior Circulation Manager: Manoj Chaudhary
Circulation Executive: Loreta Regencia
ise, digitise. Gone are the days where companies
could implement a single digital technology at a 12.2%
Director of Awards & Marketing: Daniel Fewtrell
time, stand back and pat themselves on the back.
Events Manager, Business Events: Sophie McHugh Now, everything should be digitised. End-to-end 18.3%
ITP Group processes should be automated, data collected
Chairman: Andrew Neil
and efficiently analysed, and answers - that will
CEO: Ali Akawi
CFO: Toby Jay Spencer-Davies trim your bottom line even more - sought. More 18.3%
Director: Walid Akawi
importantly there should be a strategy behind
The publishers regret that they cannot accept liability for error or omissions digitising the company, things shouldn’t be im-
contained in this publication, however caused. The opinions and views contained 44.1%
in this publication are not necessarily those of the publishers. Readers are advised plemented willy-nilly, because as we all know, if
to seek specialist advice before acting on information contained in this publication
which is provided for general use and may not be appropriate for the reader’s you do things by half, you get half the results.
particular circumstances. The ownership of trademarks is acknowledged. No
part of this publication or any part of the contents thereof may be reproduced, Another important thing to bear in mind is that
stored in a retrieval system or transmitted in any form without the permission
of the publishers in writing. An exemption is hereby granted for extracts used for
the next generation holds the keys to developing
Significantly more More
the purpose of fair review.
technical processes and inventions that haven’t
Same Less Don’t know
even been thought of yet. By relying on the grey-
haired experts of the industry that know what Source: Accenture, Microsoft: Oil and Gas
has been, upstream is losing out on the talent that Digital and Technology Trends report

To subscribe to Oil & Gas Middle East, or other ITP

Published by and © 2018
ITP MEDIA Group FZ-LLC. SUBSCRIBE Business titles, go to: JANUARY 2018


Iraq’s oil Plateau Production Targets (PPT)

of key fields (m b/d)
Despite crude production growth
remaining low, Iraq has been able to
develop its ailing oil infrastructure

espite significantly increasing exports
in recent years, low oil prices since late-
2014 until about Q3 2017 have impacted
Iraq’s hopes for higher revenues, accord-
ing to APICORP. With foreign reserves of
less than $50bn and dependence on crude exports
for 99% of the government budget, the slump in the
oil price has put significant strain on public spend- Federal Iraqi Refineries (k b/d)
ing and negatively impacted oil sector development.
The country will have to rely on additional exports
6 for higher revenues, thus requiring significant sup-
port from IOCs to increase production capacity.
Given that many of them were frustrated by the gov-
ernment’s past inability to make timely payments, it
is no surprise that there is an industry-wide trend to
reconsider future involvements in Iraq, aided by the
fact that neighbouring Iran – with the exception of
political risk – offers more favourable contracts for
fields with similar profiles. On the positive side, the
government is working on solutions to some of the
major obstacles to capacity growth and has made
progress in de-bottlenecking infrastructure and
expanding export capacities. A significant portion
of recent growth can be attributed to improvements
in crude quality. As part of its strategic decision to
produce more crude, the country began drilling a
heavier crude mix from the Mishrif reservoir to
blend with its Basra Light, triggering a discount
within the Basra Light formula. The split into Basra
Light and the new 23.5 API Basra Heavy made sense
given the upward trajectory in higher volumes of the
grade from new production, whilst at the same time
preserving the quality of the 29.7 API Basra Light.
However, more investments are needed to achieve
the required levels of output growth. Securing more
natural gas and progressing with water projects will
be instrumental in the recovery and production of
additional crude from southern Iraq.



Iraq crude oil production (m b/d)

Oil revenue & IOC payments ($bn) JANUARY 2018



Doug Wylie, director of SANS Institute’s Industrials &
Infrastructure Practice Area, provides an overview of the
current cyber security threats to industrial control sys-
tems, the readiness of those in industries like oil and gas
to deal with those threats, and advice to practitioners
on how they can more effectively safeguard systems and
keep cyber criminals and digital threats at bay

yber security breaches consequences than in other key
have rarely been out industries. Disruption, damage
of the news in recent and destruction from digital
8 years and organisations attacks have all emerged as
of all sizes, across all industries real-world consequences the
and sectors, are falling victim. industry must now combat.
The threat is nowhere more ap- While not necessarily seen
parent however, than in sectors as a ‘cool high-tech’ industry,
such as oil and gas, and critical oil and gas remain absolutely
infrastructure that are reliant on pivotal to the functioning of the
industrial control systems (ICS) world we live in. These indus-
to maintain the smooth running tries enable and support the
of their operations. infrastructure of society and
A recent SANS report found
that four out of 10 ICS practi-
worldwide economy so we have
to ask the question, why are 68% many attacks assumed to be
undetected, miscategorised or
Of oil and gas com-
tioners lack adequate visibility they so difficult to protect and unpublished.
panies globally were
into their networks to monitor therefore vulnerable to attack There is therefore no doubt
affected by a cyber
assets and operations and to from cyber criminals? that the oil and gas sector is a
incident in 2016.
identify potential threats. This According to the Repository target. High-profile attacks in
leaves them at risk of being of Industrial Security Incidents the Middle East include the
unable to recognise and defend (RISI), cyber attacks against massive cyber-attack in 2012
against cyber-attacks, putting oil and gas organisations in the against Saudi Aramco, which
critical infrastructure at risk. Middle East make up more than either partially wiped out or
half of the recorded instances, in totally destroyed data on 35,000
Oil and gas: cyber security of comparison to under 30% in the computers. This was followed
critical concern US and other Western countries. three years later by an attack
Cyber security is a critical area The Ponemon Institute reports on Sadara, a chemical company
for concern within the oil and that almost 68% of oil and gas owned by Aramco and Dow
gas industry, where the range companies worldwide were af- Chemical (DOW). As recently
of potential threats is far wider fected by at least one significant as June 2017, companies across
and carries far more severe cyber incident in 2016, with the industry and around the



The oil and gas

sector is a high-
value target for
cyber attackers.

Doug Wylie,
director of SANS
Industrials &
Practice Area.

maintain spending in order to

meet production targets. Saudi
Aramco for example, plans to
spend $334bn across the oil and
gas chain by 2025, while Kuwait
is expected to spend $115bn on
energy projects over the next
five years to help boost crude
production capacity to four
million barrels a day by 2020.
The various control systems
that will enable this efficiency 9
and productivity are digital,
networked, interconnected and
in most cases, remotely accessi-
ble for monitoring, maintenance
and even control. It is clear
that the sector must therefore
keep a close eye on the future
to effectively protect itself from
FOR CONCERN WITHIN THE OIL AND The pros and cons of progress
Developments in technology
GAS INDUSTRY, WHERE THE RANGE OF and connectivity in the oil and
POTENTIAL THREATS IS FAR WIDER AND gas arena have been instrumen-
CARRIES FAR MORE SEVERE tal in driving greater produc-
CONSEQUENCES THAN IN OTHER tivity, efficiency and revenues
within industries such as oil and
KEY INDUSTRIES.” gas. Today, an industrial control
system (ICS) that uses special-
ised industrial-grade hardware
world including Russian oil and by switching to a backup sys- and software to monitor and
gas giant Rosneft were combat- tem, but others were not nearly control devices and machinery,
ting a ransomware outbreak as fortunate. sits at the heart of all operations
that physically and financially While global spend in the oil and may be a nearly immutable
impacted operations- Rosneft’s and gas industry is expected single point of failure (SPOF)
public statement said they to continue to decline, Middle in the complex upstream,
“avoided ‘serious consequences’ East producers are looking to midstream, Continued on page 10>> JANUARY 2018


responsible for today’s indus-

trial control systems do at least
recognise current cyber security
risks. However, they aren’t al-
ways in a position to overcome
them since governance is often
seen as a lower priority when it
comes into conflict with the ob-
jectives of the business around
efficiency and productivity.
Many ICS practitioners aren’t
interested in becoming cyber
security experts themselves, but
they do realise that their organi-
sation needs to plan to manage
the threats.
It is also important to recog-
nise that ICS environments pose
unique challenges that do not
exist in an ordinary business
enterprise system. Automation
and control systems frequently
run continuously, ceasing only in
the event of a loss of power, me-
10 chanical failure or an issue with
and downstream operations. and physical processes must the raw materials. Decisions
Securing all
But such advances have also digital assets is necessarily converge. to stop systems are not taken
increased the risk and intro- essential for the lightly, and a patch upgrade for
duced a myriad of new scenarios oil and SANS report explores cyber example – a not-infrequent oc-
that can disrupt production and gas sector. risks and threats currence that every network ad-
processes, impact safety and SANS Institute’s Securing ministrator must factor in – will
bring financial consequences. Industrial Control Systems 2017 disrupt the operation of most
The adoption of cloud-based IT report explored how hundreds ICS designed to run around the
solutions, the widespread intro- of ICS security practitioners clock. A plant manager must
duction of insecure connected worldwide are combatting cyber weigh up the cost of downtime
devices into networks, and the security risks and threats. These to patch a system as a preventa-
increasing reliance on digital are the people responsible for tive measure against the impact
technology for operations and identifying risks, protecting on system safety, uptime, ef-
expanded connectivity mean control systems and networks ficiency and productivity.
that many systems are far more from malicious and accidental This process of upgrading
vulnerable to attack than they activity and recovering systems ICS products and systems, even
once were. if and when things go wrong. if just to apply a minor patch,
In an ordinary business The report shed light on the is in stark contrast with many
environment, a cyber breach of concerns of ICS practitioners, as other IT environments. In the
business IT systems can com- well as their views regarding the SANS report, only 46% of ICS
promise data and revenues may most prevalent cyber security respondents said they regularly
be affected as a result. However, threats today. apply vendor-validated patches.
the potential damage can be far Given the challenges of running
more severe when an attacker Challenging real-world ICS systems 24 hours a day, it
targets an organisation reliant scenarios is no surprise that decisions are
on industrial control systems, The SANS report showed that taken not to update. However,
such as oil and gas where digital many of the professionals the expanding attack surface



that results from such decisions

only increases the long-term
security challenges of protect-
ing these critical systems against
known risks and threats.
Neither is it surprising that
more than two-thirds of re-
spondents in the SANS report
(69%) considered the threat
to ICS systems to be high or
severe/critical. Four out of 10
practitioners said they lack vis-
ibility into their networks (for
comprehensive asset identifica-
tion, communication anomaly
detection and discovery of indi-
cators of compromise), which
is one of the primary reasons
organisations struggle to secure
ICS systems.
To be able to fully protect
networks, practitioners require
full knowledge of connected
and interconnected assets,
configurations and the integrity 11
of communications. In addition,
44% of respondents considered
the addition of devices that
can’t protect themselves to the many will simply be employees The highest skills does direct and measurable
network, to be the top threat who have not received adequate number of damage to their business. There
to their ICS. This was followed training, and lack the knowledge security breaches is clearly a gap in the workforce
by accidental internal threats of how to operate and maintain are caused by of many ICS businesses for spe-
employee error.
(43%), external threats from IT systems securely, or even spot cialist cyber security skills and
hacktivists or nation-states that there is an issue. these particular year-over-year
(40%) and ransomware (35%). The SANS report highlighted shifts in spending are hopefully
that worldwide, despite the rise mere temporary aberrations,
Training plays a big role in cyber-attacks and awareness not indicators of larger macro
Trained cyber-security profes- of them, budgets for the training industry trends.
sionals are key to solving the and certification of staff re- The 2017 report also found
security problems of ICS, as is sponsible for implementing and that a large number of respond-
the continuous education of maintaining industrial control ents had to balance ICS security
all employees that come into systems have fallen considerably, duties with a large proportion
contact with the ICS, in best from 34% in 2016 to 26% in 2017. of secondary responsibilities, so
practice and security. The report also revealed that many must manage priorities
Weaknesses in IT systems businesses are cutting their and counterbalance key risk de-
can sometimes be the cause of a budgets for bringing in trained cisions against other job duties.
cyber breach. However, people security staff and consultants Organisations must therefore
pose a greater risk, with almost despite a recent study that found be more willing to train staff
90% of cyber-attacks caused by that 82% of respondents report- to become dedicated security
human error or behaviour. This ed a shortage of cybersecurity professionals, instead of dividing
can either be the result of mali- skills within their company, and their time between a security
cious action by staff, but equally 71% agreed that the shortage of role and another. JANUARY 2018


Coming up:
/13 Low adoption of cyber security
/14 ADNOC share price set
/15 News from around the Gulf
/16 The Saudi Aramco IPO
/18 Cleaning up contaminated land

Innovation spending by oil man, Vice President, Booz Allen

Hamilton MENA.

and gas in the Gulf is rising

Booz Allen Hamilton has said
in a report titled The Future is
Innovation, that the GCC states
Study by Booz Allen Hamilton points to more investment in the sector hold almost a third of crude-oil
reserves, and a fifth of global
gas reserves. However, declin-
ing reserves and revenues along
with increased consumption, are
testing the region’s capacity to its
limits. Policy changes and shifting
national budgets across the GCC
indicate that the region’s govern-
ments are responding to these
12 challenges, and the regions key
energy and utilities players will
need to adapt to new realities.
In the UAE, a Masdar-led
consortium is developing the
800-megawatt Mohammed bin
Dr. Sleiman said that investment in innovation Rashid Al Maktoum Solar Park in
will drive sustainability in the GCC.
partnership with Dubai Electricity
and Water Authority. It is set to be
US$40 BN
il and gas firms both in Exxon is at US$1.02bn per year, the largest single-site solar park
the GCC, and globally are and BP spends US$646mn a year. in the world based, and falls in
Saudi Aramco plans to
spend this much on spending billions of dollars This investment in innovation line with the Dubai Clean Energy
innovation over the next a year on innovation across their by the energy and utilities sector Strategy 2050 to advance the
10 years.
units, figures put forward by across the GCC, and in the UAE country’s sustainability goals.
Booz Allen Hamilton at a Dubai in particular, is essential if these “The key to sustainable success
roundtable show Saudi Aramco countries want to succeed in over- lies in innovation, which is a force
has committed to spend US$40bn coming sustainability challenges. constantly promoted yet all too
over the next decade, allocating “I can tell you from our vantage infrequently embraced. Energy
that investment primarily in up- point, in terms of the demand that and utilities companies often
stream and offshore innovations. we see from our clients for embed- face concerns over the sharing of
Schlumberger spends an aver- ding innovation in their organisa- intellectual property, stakeholder
age of US$280mn a year investing tion, it is on the rise across sectors. reluctance to invest in new re-
in new techniques, Baker Hughes The idea is to invest for the future, search, and financing issues all of
invests US$92 million a year, Shell invest in the future in a way that is which can impact innovation,” Dr.
spends about US$1.18bn per year, controlled,” said Dr. Adham Slei- Sleiman said.




Iran’s March-August gas exports rise 64%

Top official at National Iranian Gas Company said that exports to Iraq have doubled in the last five months

SECURITY Iran’s export of natural month period, which is 64% more

gas rose by 64% in the first five than the same period last year,
months of the current Iranian according to the Agency.
calendar year which began on He noted that Iran would be
March 21, according to Iranian committed to providing as high as
news agency Shana. 40 mcm/d of natural gas to Iraq
The director of International upon the full implementation the
Affairs at the National Iranian 2013 agreement. That, he said,
Gas Company (NIGC) Behzad would then make Iraq the biggest
Babazadeh said Iran has brought client of Iranian natural gas.
its gas exports to neighbouring
Iraq from 7 mcm/d to 14mcm/d 64% between Tehran and Baghdad,
Iran can increase the volume of
Presently, Iran’s biggest gas
client is Turkey which is import-
over the first 100 days of president Increase in natural gas exports to 35 mcm/d which will ing 30 mcm/d from its eastern
exports from Iran to Iraq
Rouhani’s second term in office. during the first 100 days be possible once Iran Gas Trunk- neighbour. Since January 2017,
“NIGC is required to send only of the president’s second line VI (IGAT VI) as well as new Iran has delivered gas to Turkey
term in office.
7mcm/d of gas to Iraq but it has phases of the supergiant South free of charge to pay off its $1.9
risen the gas export volumes to Pars Gas Field come online,” he billion debt, based on a verdict by
the country in summer due to further added. International Court of Arbitra-
their demand,” he told Shana. The country’s gas exports tion. Turkey had sued Iran for
“Based on a gas export deal stood at 50 mcm/d during the five overcharging on gas prices.






ADNOC share price
Latest developments across the region set at AED 2.50 per
ordinary share
ADNOC Distribution, has announced the suc-
3 cessful pricing for the initial public offering
(the “Offering”) of its ordinary shares at AED
2.50 per ordinary share. Based on the Offer
Price, the Company’s market capitalisation
1 4 at listing will be approximately AED 31.3 bil-
lion (US$ 8.5 billion). The number of shares
included in the Offering is 1,250,000,000
which represents 10% of the share capital. Im-
mediately following the Offering, Abu Dhabi
National Oil Company (“ADNOC Group”),
the Company’s parent, will continue to own
1. SAUDI ARABIA 2. IRAN 3. BAHRAIN 90% of the share capital. The value of ordinary
shares sold in the Offering totals AED 3.1 bil-
lion (US$ 851 million). Final allocations were
approximately 90% for qualified investors
(60% local, 30% international) and 10% for
14 individual and other investors.
His Excellency Dr. Sultan Ahmed Al Jaber,
Saudi Aramco Shell Refinery Iraqi Oil Minister Jabar al-Luaibi has Bahrain Petroleum Company (Bap-
(SASREF) has awarded CB&I the announced that a deal signed with co) awarded a US$2.4bn expansion
ADNOC Group CEO said “We are pleased to
EPC contract for the modernisation Tehran to swap up to 60,000bpd of contract for its Sitra oil refinery announce today the offer price for shares in
and expansion of its refinery in crude produced from the northern to a consortium of TechnipFMC, the landmark IPO of ADNOC Distribution,
Al-Jubail city, Saudi Arabia, worth Iraqi Kirkuk oilfield for Iranian oil is Samsung Engineering and Tecnicas
an estimated US$95 million, ac- for one year and subject to renewal. Reunidas. The Bapco Moderniza-
the largest IPO on the Abu Dhabi Securities
cording to reports. CB&I has already The agreement signed on 8 Dec, tion Program will increase the Exchange in over a decade. This important
completed the conceptual, and 2017 by the two OPEC countries capacity of the Sitra refinery from and strategic offering represents a unique
front-end engineering design phas- provides for Iran to deliver to Iraq’s 267,000 bpd to 360,000 bpd. The
est. CB&I is working with SASREF southern ports, oil of the same project is also designed to improve
opportunity for investors to own a stake in the
to optimise investment on the new characteristics and in the same energy efficiency at the facility, and UAE’s number one fuel retail brand, and largest
refinery configuration. quantities as those from Kirkuk. enable environmental compliance. network of retail convenience stores.”





Abu Dhabi National Oil Company The Kuwait Oil Minister, Essam In November 2017, Iraq invited 62
(ADNOC) has raised prices for all al-Marzouk said that he expects the foreign companies to bid for con-
three of its crude grades in Novem- oil market to rebalance in Q4 2018 tracts to explore and develop oil 61
ber.The producer set the November after producers agreed to trim out- and natural gas reserves in nine
retroactive official selling price put. Speaking at the Organisation new blocks. The OPEC nation is
(OSP) for its benchmark Murban of the Arab Petroleum Countries Oil seeking to boost its output capacity.
crude at US$63.65 per barrel, up Ministers meeting, Marzouk said Five blocks are located at border Nov 10 Dec 10
US$5.55,. That puts the November that oil prices would stay at current areas with Iran, three with Kuwait
Murban official selling price (OSP) levels. OPEC and non-OPEC mem- and one is offshore in Gulf waters,
at US$2.83 per barrel above the bers agreed in late November that a presentation by officials at a
Oil prices are still creeping up, increasing from
average of Dubai quotes for the the deal to cut output by 1.8 million Ministry of Oil press conference in US$64.35 on 30 October 2017 to US$65.62
month, the highest since May 2016. barrels would be extended. Baghdad. on 10 December 2017. Source:



US Secretary of Energy
Rick Perry Meets with ADNOC
His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO discussed ADNOC’s plans

INTERNATIONAL RELATIONS His Excellency Perry on developments in Abu

Dr Sultan Ahmed Al Jaber, UAE Dhabi’s oil and gas industry, in-
Minister of State and ADNOC cluding ADNOC’s ongoing trans-
Group CEO, met United States formation and new investment
Secretary of Energy Rick Perry, opportunities. He also updated
to discuss strengthening the UAE Secretary Perry on ADNOC’s
United States Secretary of Energy Rick Perry met with His Excellency Dr Sultan
and ADNOC’s long-standing and Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO. plans to explore the potential of
close relationship with the United Abu Dhabi’s unconventional gas
States in the energy sector. reservoirs and the ongoing minor-
“We see multiple opportunities US$3.1 BN gas reservoirs, ADNOC is ready ity public listing of its fuel services
to further strengthen these ties was raised by ADNOC to partner with companies that subsidiary, ADNOC Distribution.
Distribution on the
as ADNOC adapts to new market bring technology, expertise and “The strong bi-lateral relationship
first day of trading
dynamics and creates a progres- capital, and who share our vision between the United States and the
its shares.
sive, energised and commercially of a future in which our industry UAE has expanded rapidly over
focused business that will ensure continues to play a key role in the last decade, not just in the
we continue to thrive in the evolv- delivering sustainable economic energy sector but across the full
ing energy landscape. As we focus growth,” said H.E. Dr Al Jaber. economic spectrum,” Secretary
on maximising value from all our H.E. Dr Al Jaber briefed Secretary Perry said. 15

US$1.5 bn conglomerate Foresight

Group International now in Dubai
Company has targeted Dubai as its new headquarters for the region

GLOBAL OPERATIONS Foresight Group in the UAE while also playing a

International Ltd (FGIL), has key part in the move to drive fur-
named Dubai as the site of its new US$600MN ther growth and development to
global operational headquarters The value of three the UAE and the rest of the GCC.”
for its diversified operations. The new rigs acquired FOD was established as part
announcement was made during by Foresight Group of the move to bring together
this year’s ADIPEC. organisations that have over 27
“We are proud to highlight our Dr. Ravi Kumar Mehrotra CBE, Founder and Executive years of experience in oil and gas
Chairman, Foresight Group International
new division, Foresight Offshore industry—offering the high level of
Drilling, which is part of our efficient performance that FGIL is
current efforts to support the oil announcements of the three new known for. The restructuring and
and gas market of India and the oil rigs that we have acquired and rebranding efforts have also been
Middle East region,” said Dr. Ravi the positioning of Dubai as the accompanied with the acquisition
Kumar Mehrotra CBE, founder site of our new global operational of three new oil rigs worth over
and executive chairman, Fore- headquarters. We remain steadfast US$600 million. With Dubai as its
sight Group International. “The in our commitment to establishing new base of operations, FOD will
creation of this new company Foresight Offshore Drilling as a be creating opportunity for 500
is made more exciting with the leading offshore drilling company new employment by 2020. JANUARY 2018


Have your say:


The Saudi Aramco IPO

and ‘known unknowns’ About the authors:
The public listing of the Kingdom of Saudi Arabia’s crown jewel, Saudi Bassel Khatoun, chief invest-
Aramco, could be the biggest the world has ever seen, Bassel Khatoun ment officer of MENA Equities
discusses ‘known unknowns’ that could influence its valuation at Franklin Templeton Invest-
ments (ME)

he valuation spectrum for oil
Global markets are welcoming the potentiallly
players varies immensely, and mammoth public listing of Saudi
Saudi Aramco is no exception. Aramco.

Given its historical preference for

opacity, the reality is that there is
16 a lot of guesswork that goes into
sizing up a company which has
never divulged financial statements,
operating in a sector that naturally
attracts huge valuation variations in
any market, let alone Saudi Arabia.
Capital markets around the world
are certainly encouraged by the po-
tential mammoth public listing and
welcome the important milestone in
the Kingdom’s progress towards di- non-core areas of the company, such bin Salman recently confirmed that
versifying its economy and reducing as petrochemicals are within the the Saudi government would retain
its heavy reliance on oil. However, ownership boundaries. sole control over Aramco’s oil and
investors require a certain degree of In addition, until an independent gas reserves and would also decide
transparency to make informed de- audit has been completed, inves- on production levels.
cisions about the value of a company. tors are basing valuation on the Another key area to complete an
Key to an accurate valuation, same oil reserves that have been accurate valuation are costs; a cru-
for example, is the defining of the reported by Riyadh for nearly three cial part of financial modelling. Dis-
ownership boundaries of what parts decades – 261bn barrels. That said, closing production costs of oil wells
of Saudi Aramco are to be listed; Saudi Aramco has committed to an and revealing operating and finan-
while some may value the company independent audit while hinting that cial costs will enable investors to
up to US$2tn, there is no clarity on any audit will find its reserves to be make more accurate projections of
exactly which parts of Aramco will similar to figures currently reported, the value of the business. Ultimate-
be included in the IPO, and just as but questions remain about whether ly, we are trying to understand how
importantly, which will be excluded. the audit will unearth the quality of much it costs Aramco to extract oil
Furthermore, questions still remain the oil reserves, rather than just the from the ground. Aramco has said
over whether both the upstream quantity. Either way, Saudi Arabia’s its costs are among the lowest in
and downstream businesses and Deputy Crown Prince Mohammed the world and, if the US$5 to US$20



per barrel public estimate range is it executes its strategy, will still have Investors will also want to un-
accurate, then this is most certainly an important impact on the percep- derstand whether environmental
the case. The difference between tion of the company. This is particu- consciousness or future shareholder
extraction costs ranging from US$5 larly true for institutional inves- value is driving its diversification
to US$20 per barrel makes a signifi- tors. A solid corporate governance into renewables and whether these
cant difference when oil is US$50 framework will also placate anxiety new businesses are within the realm
per barrel. Also, production costs will over how the sometimes conflict- of the IPO.
vary from field to field so providing ing objectives of a state-controlled These ‘known unknowns’ are
average operating costs will only go company and a listed company can serious considerations when valuing
so far to facilitate forecasting. be addressed. Saudi Aramco, and while clarity
Another key cost to consider is Long-term investors also need to would be most helpful, we cannot
staff. To accurately estimate staff understand Saudi Aramco’s busi- discount the impact of the price of
costs, investors need to understand ness strategy in more detail to gain oil, given varying forecasts on future
Saudi Aramco’s long-term strategy a better appreciation of what the prices that could result in a massive
with regard to ‘Saudisation’ given company will look like in 10 to 20 range of valuations. Whether one
the cost implications of maintain- years. Aramco has announced it is is of the opinion that the world is
ing a very high percentage of Saudi expanding its refining business with headed for an oil supply shortage
Arabian nationals. an aim to almost double capacity to and therefore higher prices, or alter-
Clarity on the Kingdom’s tax policy 10 million barrels a day. natively if other forms of energy will
is another key to an accurate valua- We also know it is moving ag- take over powering the world in the
tion of Saudi Aramco. In March, the gressively in the downstream area next few decades, these factors will
government announced that it was through its petrochemicals busi- have an enormous impact on valua-
reducing Aramco’s tax rate on net ness. However, how much of their tions of any oil company, including
income to 50% from 85%, bringing new funding will be dedicated to Saudi Aramco.
it more in line with global players, this part of their business? Saudi With what we currently know 17
although there still exists a huge Arabia’s National Transformation based on oil prices, the tax rate,
difference globally in tax rates. This Plan identifies renewable energy as reserves, there is a scenario under
recent change begs the question: a growth sector with an aim to have which Saudi Aramco could be worth
what protection can investors expect 10% of the country’s electricity from around US$1tn. However, as the
against the rolling back of the tax rate renewable sources by 2023. Saudi company delivers on its commit-
to 85% at any point in the face of con- Aramco is now developing solar and ment for further transparency and
tinued fiscal pressures? In addition, wind projects in the north west of ‘unknowns’ shift to ‘knowns’, we are
investors are seeking clarity over the Kingdom, begging the question likely to see a tightening of the valu-
whether the 20% royalty on revenue of how much of management’s time ation discrepancy, which is currently
will remain in the event of an IPO. and funding will be directed towards challenging an already complex and
Another area where insight is valu- the new energy sources. colossal public listing.
able to an accurate valuation is clarity
on strategy and governance. While
these may be difficult to quantify,
they do have a significant impact on
valuation metrics. Generally speak-
ing, investors demand a discount for
state-controlled companies, given the
requirement to balance the objectives
of the government with those of in-
vestors. In the case of Saudi Aramco,
investors will need to accept that
the government will be the majority
shareholders. Regardless, the kind
of governance structure, Board of
Directors and Independent Directors Saudi Aramco could be worth US$1tn, however, without an accurate valuation,
this is just a guess.
Aramco puts in place, as well as how JANUARY 2018


Have your say:


Cleaning up contami-
nated Middle East land
To accelerate the speed at which contaminated land is cleaned up, a About the authors:
smarter and more commercially focused approach is needed, according to Ronnie Theodory is the re-
Ronnie Theodory, regional environmental business director, Arcadis gional environment business
director at Arcadis

atural resources like oil and gest remediation challenges to date around remediation in the region
gas have played a huge part has been a reliance on outdated and accelerate the speed at which
in the development of the investigation methods such as moni- contaminated land is cleaned up,
Middle East region. Exploration, toring wells. a smarter and more commercially
production, and the exportation of This approach is well understood focused approach is needed. To
18 these fuels have served as the eco- within the industry, however it’s address some of the limitations
nomic engine that has enabled GCC one that is fundamentally flawed that we see with traditional forms
countries to invest in incredible as it prioritises repeatability at the of remediation, Arcadis developed
nation-building programmes over expense of accuracy. As a result, it a more innovative approach to
the last 30 years. often provides a skewed perspective site evaluation which we’ve called
However, while these petro- on the size of a contaminant source Smart Characterization.
chemicals have significant economic and its behaviour. This makes it This new solution helps to accel-
value, they also carry an inherent difficult to develop a remedia- erate the speed at which site inves-
risk if they are released into the tion strategy that will remove the tigations are carried out by focusing
environment. Whether through contaminant mass in a timely and on the part of a groundwater plume
accidental spillages at gas stations, cost-effective manner. that is moving, as this is the area
leakages from ageing pipework, or Traditionally, there has also been that poses the greatest potential
other natural factors, environmental a focus on treating the entire plume risk and liability. By using real-time,
contamination is an issue in many rather than a targeted portion. This high-resolution sampling and 3D
parts of the Middle East region. is unnecessary, as our research visualisation tools, Smart Charac-
Contamination of land and water shows that in an average large terization can create a flux-based
represents a significant liability as plume, over 80% of the contaminant conceptual site model (CSM) that
it can persist for decades, poses a mass resides in less than 20% of the distinguishes the contaminant mass
threat to human health, and can be plume. Trying to treat the whole that moves from the static mass.
very costly to remediate. Precise plume results in higher costs, longer The ability to map and distinguish
solutions are required that can clean-up timeframes and lower mass transport zones from mass
effectively address these issues in performance, all of which can mean storage zones is key to a successful
the quickest, safest, and most cost- that remediation efforts fall short of remedy as this facilitates a much
effective manner possible. the initial client expectations. more focused and cost-effective
remediation solution.
Traditional methods not realising New approaches needed to help Defining the magnitude of mass
full value of remediation activities accelerate remediation activities movement at different zones within
In the Middle East, one of the big- To help build greater momentum an aquifer is also crucial. Transport



Fig 1 – Smart Characterization facilitates a much more targeted remediation than

traditional methods.

behaviour, and effective clean-up

options, differ along the length of a
plume due to the plume maturation
process. This leads to different styles
of contaminant mass movement, or
flux, in different soil types along the
length of a plume. Smart Charac-
terization helps clients to optimise
treatment at different segments of 19
the plume and establish reliable
project goals and timeframes before
large-scale remediation begins.
The visualisation tool also reduces
the need to follow the traditionally
repetitive processes of drawing up
Fig 2 – Indicative cost savings that can be secured through a smarter approach to
work plans, sampling and testing, site investigation and remediation.
and analysing and reporting data. By
removing some of this labour-inten-
sive activity, it’s possible to minimise treatment or a management strategy way in which clients investigate and
the time needed to understand the makes better business sense. In remediate contaminated sites.
risk and implement a remedy. some cases, it may be preferable to Today, the biggest impact on
avoid costly remediation at the out- remedy performance and total cost
A technical and economic decision- set and instead allocate more budget is no longer driven by remedial tech-
making framework towards managing contamination nology, but by narrowing the focus
The Smart Characterization ap- over a longer-term period. for remediation activities based on
proach also offers a technical and The Smart Characterization pro- Smart Characterization.
economic decision-making frame- gramme is also designed with “exit Traditional, inaccurate, costly,
work that enables clients to max- ramps” or decision points where and time-consuming methods of site
imise their Return on Investigation the cost benefit of the approach is investigation are a thing of the past.
(ROI) by reducing the total cost of evaluated against overall business Smart Characterization provides
remediation, better defining risks, objectives. This strategy means clients with the critical informa-
and setting pragmatic goals before clients are always moving toward tion they need to target the heart of
remediation starts. an optimal solution that provides a the problem, reducing the cost and
This makes it possible for clients to very clear ROI and a way in which duration of remediation work, and
assess, in advance of design and con- to control costs. Smart Characteriza- offering a far greater certainty of a
struction, whether aggressive source tion methods are transforming the successful outcome. JANUARY 2018


Dr Esra Al Hosani,
believes that young
people will bring fresh
ideas and innovation to
the oil and gas industry,
and more upstream
companies should look
at bringing graduates
on board


paper 2017 Oil & Gas Trends, 400,000 workers
were left without jobs.
While much of the industry has survived
through the tough times, it has been difficult for

or young oil and gas graduates upstream oil and gas companies to make strategic
looking to enter the industry, the decisions and plan for the future. Only now is the
landscape can seem bleak, with com- sector just beginning to emerge from the upheav-
panies cutting back on expenditures al, and those plans can start to see the light of day.
and eking out every penny where Oil and gas companies looking to 2018 and
they can find it, and few open to beyond are now faced with a dual challenge, re-
hiring young professionals fresh out invigorate the talent lost in cut-backs, but main-
of the starting gates. The oil price slump, which tain innovation and sustainability in a still uncer-
began in 2014, caused project shutdowns, slashes tain marketplace. According to Strategy&, many
in capital expenditures of up to 40% between 2014 companies do not have the talent, organisational
and 2016 and, according to Strategy&’s research framework, systems, processes, or attitudes to be



21 JANUARY 2018


sufficiently flexible and innovative in an evolving

Dr Al Hosani and uncertain marketplace. The company recom-
won the Young mends that upstream should increase its research
Oil & Gas
Professional of
into sustainability and clean energy and ask itself
the Year Award these questions: Do I have the right business
from Oil & Gas models in place? How can my company develop
Middle East new capabilities and in what areas? How should
in 2017. asset portfolios evolve? What type of technology
plays should I invest in?
Dr Esra Al Hosani, an instrumentation and
control engineer at ADNOC Group Company
ADCO, believes that with hard work and the
right opportunities, fresh graduates can excel and
bring innovation, invigorate business models, and
develop research to meet companies’ pressing
sustainability goals.
“This generation is smart, strong, creative, and
has a fresh look into everything. When we are
given the opportunity to lead in a company we
will lead it through an innovative, shorter path to
success,” said Dr Al Hosani.
However, one of the biggest obstacles young
people face in the industry in the region is not
being given the chance to prove their worth to the
22 companies that employ them.
“I would say one of the main obstacles [to
graduates in the industry] is not having an oppor-
tunity to learn or contribute. This mainly happens

Online measurement of black powder in gas and oil pipelines
Dr Al Hosani invented a terns and a result indicative pipeline, the particles of the implement measures for
method and system for of the determination of the black power can accumulate mitigating the propagation
determination of contami- contaminants is output. around the control valves, of black powder in their gas
nants, such as black powder, compressors, and other pipelines. Despite separation
in a flowing fluid, such as Description equipment, which may create techniques applied to the gas
natural gas. The method Black powder is a general a severe pressure drop and in pipelines to eliminate black
transmits light beams over term used for solid contami- some cases lead to an entire powder (eg, filtering, cyclones
a spectrum of wavelengths nants, which can be found in shutdown of the pipeline and and pigging), the problem
through the flowing fluid in a gas or fluid pipeline. Black thus of the production. The still exists. The difficulties
a main pipeline and receives powder occurs for various problems may extend further in resolving the issue can be
a plurality of measurements and unknown reasons. Black to the utilities companies at least partly explained by
relating to transmitted and powder has numerous forms connected to the actual the fact that the size of black
scattered light beams over the and may be wet or/and or network pipeline (e.g. electric- powder particles are in the
spectrum of wavelengths. have a tar-like appearance. It ity companies) in which their order of sub micrometers
The measurements relate comprises very fine particles various pieces of equipment and are thus hard to extract
to at least one of absorption, (often sub micrometre in are damaged and electricity from the flowing gas in the
reflection or refraction. The size) of iron sulfide, iron oxide, production declines. gas pipeline. Consequently,
received measurements are and iron carbonate. As these These issues have led gas new strategies are being now
compared with stored pat- fine particles flow in the gas production companies to investigated.



under his or her wings, we will grow exponentially

faster,” she said.
Dr Al Hosani herself is no stranger to hard
work. In 2006, Dr Al Hosani went to study in the
Petroleum Institute, where she studied electrical
engineering with a focus on the petroleum industry
needs. The Petroleum Institute is an engineering
programme that is part of Khalifa University in
Abu Dhabi and specifically trains young people
to be engineers to join the oil and gas industry.
Students enrolled in this programme, of which
there are around 1,000, are fully sponsored with a
monthly salary and high achievement rewards.
Dr Al Hosani obtained her B.Sc. and M.Sc. with
Honours in 2011 and 2012 respectively. She focused
when superiors do not take the young seriously, her M.Sc thesis on black powder and deposit detec-
The oil and overloading them with meaningless or routine tion in gas pipelines.
gas industry
tasks, not giving them responsibilities, or shutting She then joined ADNOC Onshore in 2013 as an
is recovering
from some their innovative initiatives down. Unfortunately, instrumentation and control engineer and man-
tough years young professionals are often being microman- aged to finish her training programme in half the
and needs to aged rather than only guided or supported. There time required.
innovate to are still many undiscovered champions and many Although Dr Al Hosani was offered a full schol-
buried talents, and I believe that if every manager, arship to pursue her PhD, she turned down the
from the lower to the upper level, took one talent offer to be exempted from her work duties and de-






OE 13®
Unit # AF07, Jebel Ali Free Zone, Dubai, UAE, Phone +971-4-886 0259, Fax +971-4-886 0260 JANUARY 2018


cided to pursue her PhD in parallel to her normal

Fresh graduates job, as she realised from an early age the impor-
can bring fresh
ideas to the oil and
tance of having a solid knowledge of the industry
gas industry. as well as hands-on experience to strengthen
theoretical knowledge. She focused her research
Research and on the existing problems of multiphase measure-
development ment/imaging and deposit detection in the oil
across the oil and
gas industry is
and gas industry, in order to arrive at solutions for
essential. such critical challenges.
Although Dr Al Hosani was sponsored by
ADNOC Onshore for four years, she managed to
obtain her PhD in three years while still working
for the company full time.
Dr Al Hosani has published in seven top jour- “THIS GENERATION IS SMART,
nal papers so far in her career, including a paper STRONG, CREATIVE, AND HAS
published in the elite Royal Society journal and A FRESH LOOK INTO EVERY-
others in top IEEE transactions, which were all
cited many times by other researchers. She has
also published four conference papers in addition THE OPPORTUNITY TO LEAD
to M.Sc. and Ph.D. theses. All her publications IN A COMPANY WE WILL LEAD
are related to challenges facing her field of work. IT THROUGH AN INNOVATIVE,
Furthermore, she was granted two US patents for
novel ways to detect deposits in gas pipelines and
measure the flowrate of wet gas. tablished in 2000 by an Emiri decree under the di-
24 Dr Al Hosani has been involved in large pro- rection of His Highness Sheikh Khalifa bin Zayed
jects and attached to consultant companies and Al Nahyan, ruler of Abu Dhabi and president of the
vendors, as well as being attached to different United Arab Emirates. It is financed and governed
ADNOC Onshore fields where she was involved by a consortium of five major oil companies:
in daily operation duties. ADNOC, Royal Dutch Shell, BP, Total S.A., and
Luckily Dr Al Hosani has a strong support Japan Oil Development Company, a wholly owned
network from both ADNOC, a semi-governmental subsidiary of INPEX.
organisation which supports young graduates Dr Al Hosani also had a role model who she
through The Petroleum Institute, which was es- could rely on.
“I had the most supportive management, espe-
cially Abdul Munim Alkindi, our CEO of ADCO,
who believed in me and allowed me to be the
researcher that I am, even in a purely operating
company,” she noted.

Research and development

One of the most critical areas for the oil and gas
industry is research and development. Without
evolution, upstream will struggle to remain profit-
able. This research includes some of the more
technical aspects of oil and gas, such as Dr Al
Hosani’s research, which focused on the critical
need for accurate multiphase flow measurement/
imaging and deposit detection.
“I took a leading role in my department’s first
R&D project, Joint Development Multiphase
Flow Meter [MPFM], where a new MPFM is
being developed to be tested in the field. Before



that, I worked on detecting black powder in gas

pipelines using optical spectroscopy. For my PhD SUMMARY OF DR Al HOSANI’S INVENTION
research, I successfully adapted a conventional
The present disclosure teaches properties of unknown samples
Electrical Capacitance Tomography (ECT) system
a non-destructive optical- (quantitative analysis). Other
for multiphase imaging, aiming to distinguish
based device to monitor online, artificial intelligence tech-
boundaries between different components in a
and continuously, the amount niques such as neural network
process, where information about the flow (eg,
of black powder within a main and fuzzy logic techniques can
phase fraction, flow regime, vector velocity etc.)
pipeline passing though the also be applied.
can then be extracted from the image. The images
earliest stages of the pipeline The device comprises a ring
produced can be used to analyse the flow in order
network. This device will allow of optical sender and receiv-
to measure all of the separate phases including
isolating highly contaminated ing sensors evenly distributed
contaminants, actuate process control strate-
pipelines and thus reduce the across a given section of the
gies, or even develop live 2D or 3D models that
risks; which may be caused to pipeline. The system comprises
describe the process for validation or simulation,”
the pipelines by contamination at least one optical light trans-
according to Dr Al Hosani.
through the black powder. mitter (also called emitter),
Dr Al Hosani believes in the power of research
In one aspect, the device which transmits a beam of
and managed to integrate it with her work duties
operates using at least near light towards a target medium
in a petroleum operating company in the most
infra-red radiation (NIR) to within which the black powder
effective way. She is making her name in a male-
analyse at least one of the concentration is sought to be
dominated area of research. Her main focus is
reflected, transmitted, and determined. Depending on the
multiphase measurement and visualisation, and
refraction light beams, which positioning of the transmitters
she worked hard to develop innovative solutions
interact with the target relative to the receivers, the
that are being continuously enhanced. Dr Al
medium. Hence, besides being sensing area can be either a
Hosani stated that there is still no commercially
non-intrusive and non-invasive two-dimensional (2D) section
available live visualisation that can image and 25
techniques, the device also of the pipeline, or a 3D volume
measure all phases in a flow, in addition to the
employs the property that light of the target medium.
contaminants. Furthermore, there is no MPFM
in the IR range has a different Targeting the 3D volume
able to measure all of the different phases in a
absorption rate for different leads to a better accuracy of
flow without critical dependence on the fluid
constituents of black powder in measurement at the expense
properties, characteristics or flow condition.
the target medium. Hence, by of high computation time
“My research initiatives on process tomogra-
knowing the spectrum of each and/or hardware complexity.
phy are among the first in UAE. They provide a
of these different constitu- A plurality of optical sensors
base for more research to come. My projects, as
ents, a proper analysis of the operating within the senders’
well as others, are welcomed by ADNOC to be
spectrum would lead to a good wavelengths are positioned at
taken further to develop field ready equipment
estimation of the concentra- different locations in the pipe-
and devices that can help solve real time process
tion of the different constitu- line to measure the amount of
problems,” she said. “I would like to encourage
ents in the target medium. light absorbed and/or reflected
young professionals to be the creative and innova-
In one aspect, the device fur- by black powder particles. A
tive people that they are and go beyond their job
ther transmits light beams of dedicated pattern recognition
description. I also would like to emphasise that
at least one of middle infra-red algorithm using statistical
research should be an integrated part of any job if
(MIR) or Raman spectra. and/or artificial intelligence
people learned how to use it properly to improve
The device uses an algorithm approaches uses this data to
and progress.”
to process the data from the estimate the amount of black
Dr Al Hosani is an Emirati role model in the
different techniques. These powder passing through the
field of research and engineering having pub-
multivariate techniques are target area. The optical senders
lished so many works and patents in such a short
commonly used to group and receivers can be con-
of time. However, she states that the most chal-
samples with similar charac- nected to the control room via
lenging achievement in her career so far was ob-
teristics to classify unknown optical fibres, which allow the
taining her PhD from the University of Bath, UK,
samples (qualitative analy- apparatus to operate safely in
in only three years while still working at ADNOC
sis) or to determine specific hazardous areas.
Onshore full time. JANUARY 2018


The country has had a relatively hopeful year, with several projects being
awarded and a number of blocks being opened up for tender

Oman’s oil and

gas sector may be
seeing the light
at the end of the

il and gas is still a dered in north-central Oman. potential for oil and gas but is the only
critical part of the “Looking forward to 2018, Contax block of the four on offer to contain
Omani economy, Partners believes that the main focus no discoveries, according to a report.
making up 72% of the in Oman will be the continued devel- Only two wells have been drilled on the
country’s revenues in opment of Duqm, and depending on block, according to the Ministry.
2016, although this is market conditions and economical In May 2017, the Oman oil ministry
forecast to drop slight- factors, there may or may not be a rise in granted Eni SPA and Oman Oil Co.
ly to 70% by the end of 2017, according exploration activity due to production at SAOC (OOC), the sultanate’s energy
to Dentons Oil and gas regulation in Khazzan field and the recently tendered investment arm, exploration rights for
Oman: overview report. blocks. In better market conditions, Block 52, a 90,000-sq-km area in 10-
The year 2017 has not been plain this could lead to several downstream 2,000 m of water offshore Oman.
sailing at all for Oman’s hydrocarbons projects such as Khazzan Central The area is largely unexplored, and
sector, however there have been some Processing Facility 2 and others, but in was awarded following an international
market recoveries. the current market conditions, these bid round launched in October 2017.
According to Contax Partners, in developments are likely to be slower in Qais Al Khonji, founder and CEO
2017, Oman witnessed a reasonably 2018,” said Ann-Marie Carbery, director of Genesis International and Genesis
significant amount of project awards of business advisory, Contax Partners. Projects and Investments, noted that
in the oil and gas and petrochemical In September 2017, registration and Oman the two new gas production sites
space, including Duqm refinery pack- bidding started on over 10 open blocks discovered during 2017 and now under
ages 1, 2 and 3 worth $5.7bn, Salalah to be tendered over the next few years, tender, Khazzan and Mabrouk, are
LPG extraction plant and Salalah providing some excellent exploration currently being explored. According to
Ammonia plant. Meanwhile, BP com- opportunities. In the first bid round, Al Khonji, those discoveries are good
menced production from its Phase 1 four blocks were tendered: Block 43B, enough to take Oman to be the world’s
development of the Khazzan gas field, Block 47, Block 51 and Block 65. The second largest gas producer when they
and four exploration blocks were ten- 11,967-sq-km Dhahirah block (43B) has come online.



to meet these goals. Our staff have performed

brilliantly in the low oil price environment and
have seized the opportunity to drive change from
exploration through to abandonment.
There are many areas where this is happening.
For example, our Well Engineering Directorate is
now making in excess of 20,000 interventions a
year, double the number from 2012, but with the
same level of resources, and we are now hooking
up discoveries so quickly and efficiently that our
Exploration Directorate fully pays its way within
the same year of expenditure.
Another area where truly big things are hap-
pening is with our lean business efficiency
programme, which we launched to eliminate
waste and streamline our processes. This has now
generated US$1.2 billion in terms of additional
value, cost reduction and avoidance, but - above all

- it is empowering our people to drive and pursue
continuous improvement as a way of life.
At the same time, we will deepen our collabora-
tion with our contractors through our very suc-
PDO – Managing Director Raoul Restucci dis- cessful Contract Optimisation Reviews to identify
those areas where we can work together more
cusses the oil and gas sector in Oman, and the safely and productively and all parties win. 27
role PDO has to play in 2018 and beyond PDO is constantly evolving and we must be
ready to cope with, if not embrace, the huge eco-
Notwithstanding recent oil price increases, Oman nomic, social, technological and energy challenges
The energy is projecting sustained fiscal and current account and changes that are transforming our world. The
sector in Oman
is constantly
deficits and PDO will need to perform as profi- fourth Industrial Revolution, as so well described
evolving. ciently as ever, further stepping up its efforts to by Klaus Schwab, Founder and Chairman of the
realise increased revenue generation. World Economic Forum, is upon us. The veloc-
Simply put, this means raising the bar and ity of change is exponential and unrelenting.
becoming more effective and efficient at every- Whilst we recognise the threats and challenges to
thing we do. It also means, creatively pursuing established operating paradigms and gaps in newly
new value streams by deploying our competitive required capabilities, we are very excited and are
advantage – our human capital. embracing change by increasing our ability and
We will continue our drive for the early mon- speed to adapt.
etisation and production of low unit technical We are doing this by constantly re-assessing
cost prospects while maintaining our overarch- our development needs, by supporting multi-
ing focus on personal and process safety as we stakeholder collaboration, and by the proficient
strive for Goal Zero – no harm to our people, our deployment of new technologies, data and analyt-
environment and our assets. We will continue to ics, with increasingly pervasive and growing inter-
add reserves to more than replace every produced connections. Within production alone, we process
barrel and continue to increase system uptimes more than one billion data signals per day and our
and reliability across all of oil and gas assets. systems are increasingly able to find improvement
We must continue to identify savings and cost opportunities, so that our engineers can focus on
reductions across the full spectrum of our opera- realising them.
tions while leveraging strategic partnerships for Beyond the challenges of current mega-trends
project procurement and delivery excellence. ranging from the Internet of Things, through to
I am optimistic that we have the right people, blockchain and digital ecosystems, and as climate
the focus, and the one team approach in place change realities dawn on everyone, it is clear that JANUARY 2018


we need to also gradually move away from a de-

Solar power is a pendence on fossil fuels.
key focus for PDO
in 2018.
This means developing a roadmap where we
seamlessly transition to a fully-fledged energy
company – Energy Development Oman - with a
greater emphasis on renewables, especially solar,
where the potential in Oman is huge.
I’m delighted that, with our partners GlassPoint
Solar, we have made superb progress on our Mi-
raah facility, one of the largest solar plants in the
world, which has already shown the scale of ambi-
tion in the area of renewable energy.
Delivering up to 1,021MW when completed, this
will use concentrated sunlight to generate 6,000 Bahja and Marmul. The aim of the project is to
tons of emissions-free solar steam each day for use save gas through the daytime generation of power
in thermal enhanced oil recovery. It will save 5.6tn while learning how best to support and service
British Thermal Units of natural gas each year, photovoltaic (PV) solar facilities in our operating
which can be diverted into other high-value sec- environment.
tors of the economy. The installation in southern The overall venture is expected to introduce an
Oman will also reduce CO2 emissions by more equivalent fuel saving of 70.5mn cubic metres of
than 300,000 tons each year, the equivalent to gas per annum (US$17 million a year), reducing
taking 63,000 cars off the road. I’m very pleased to our dependency on conventional gas turbines. It
say that steam has now been successfully delivered will also reduce overall CO2 emissions by around
into our Amal West oilfield for the first time from 8,550 tons annually. Along with the gas saving and
28 Miraah, and we have also completed construc- the environmental benefits, the enterprise will be
tion on the first block of the installation safely, on a landmark in the country as it will be the biggest
schedule and on budget. solar PV initiative to date.
We are currently actively implementing a num- You will also see PDO aiming to leverage its ex-
ber of other solar ventures in both our hydrocar- pertise beyond Block 6 across both Oman and re-
bon and non-hydrocarbon portfolios. For example, gionally in services ranging from enhanced oil re-
we are almost two thirds of the way through a covery, engineering and design and well, reservoir
project at our Muscat headquarters to install more and facilities management. That’s just the start.
than 19,500 solar roof panels on car parking lots. We will also work for a more aligned research and
When finished early next year, this will generate development partnership with academia, industry
9.5mn kWh annually to power key office buildings, and government through a new digital platform,
with the electricity being diverted to the domestic developed by, and with the great support and col-
grid during off-peak periods. laboration of the Technology Research Council
We will soon be issuing an invitation to tender (TRC) to raise Omani technical capabilities and
(ITT) for up to five 20MW solar projects in our develop Omani solutions to Omani challenges.
concession, mainly scattered in the area between Last but not least, the roll-out of sustainable and
diversified In-Country Value programmes and
“I’M DELIGHTED THAT, WITH OUR initiatives will continue to ensure Omani employ-
ment and skills levels are raised, both in the oil and
PARTNERS GLASSPOINT SOLAR, gas sector and beyond our natural boundaries in
ON OUR MIRAAH FACILITY, ONE OF We will also ramp up our support for Omani
THE LARGEST SOLAR PLANTS IN entrepreneurs to boost the Sultanate’s SME sec-
tor and help spur the greater diversification of
THE WORLD, WHICH HAS ALREADY the national economy through the Government’s
SHOWN THE SCALE OF AMBITION IN excellent Tanfeedh initiative. Notwithstanding the
THE AREA OF RENEWABLE ENERGY.” daunting challenges, PDO is looking forward to
PDO – MANAGING DIRECTOR RAOUL RESTUCCIS 2018 and to making our mark.





gan an aggressive social modernisation programme.

Andrew Figgins, partner in the Energy and Pro- It has won several UNDP Public Services awards,
jects practice and Yasser Taqi, associate in the including the “nation most improved during the
preceding 40 years,” and has been widely recog-
Energy, Transport and Infrastructure practice at
nised as a rare example of a strong, popular and
law firm Dentons look at the future of Oman resilient absolute monarchy.

With a GDP per capita close to that of New Zea-
rompted by the sustained lower oil land and strong relationships with both the West
Oman is price, Oman, a country where oil and its Middle Eastern neighbours, it would appear
concentrating on
revenues make up 45% of GDP, has that His Majesty Qaboos bin Said Al Said has struck
renewables as an
energy source. announced a major step towards upon, and delivered, a winning formula for Oman.
reducing its oil dependency. The Nonetheless, Oman’s economic progress has been
government is ramping up its eco- derived primarily from its oil revenues, which, like
nomic diversification plan in a bid its popular leader, are not eternal. Oman has long
to preserve the notable success it has achieved over recognised the need to diversify its economy and
the last five decades. has an ambitious aim to reduce the contribution of
Like its neighbours making up the Gulf Coopera- hydrocarbons from 45% to 9% of GDP by 2020. This
tion Council of the Arab States of the Gulf (Saudi is to be achieved by, among other things, a number
Arabia, United Arab Emirates, Kuwait, Qatar and of transformational projects such as the Duqm Spe-
Bahrain) the Sultanate of Oman has witnessed an cial Economic Zone, which has seen the fishing vil-
unprecedented social and economic transformation lage of Duqm, 450km south of Muscat, transformed
in the last few decades. Oman’s transformation was into a vast port and international business park,
triggered by the accession of His Majesty Qaboos measuring 2,000 sq km. It is expected that this de-
bin Said al Said to the throne in 1970, when he be- velopment will create tens of thousands of new jobs JANUARY 2018


and will thrive as a result of its strategic position on
the Indian Ocean, as oil traders and shippers seek
to avoid the Straits of Hormuz. Although welcome
economic developments such as this are well under
way, and the government has ring-fenced capital to OF ENERGY FOR OMAN TO COME FROM
support them, numerous economic hurdles require RENEWABLE SOURCES BY 2025
to be overcome. These include burgeoning welfare
costs; demands to increase employment; sharing Being one of the three sectors in focus in the
economic benefits with the growing population; and ninth five-year plan, the manufacturing “lab” called
a mismatch of expectations and experience in the for investment in renewable energy, with a target of
Oman workforce. 10% of energy generated to come from renewable
To address this Oman has, on the back of the sources by 2025. This includes generating at least
ninth five-year development plan (2016-2020), em- 2,500 MW of solar power and 500 MW of wind
barked on a national programme – “Tanfeedh” (or power by this date. The proposed new energy policy
“Execution”) – to enhance the economy’s diversi- also advocates alternative non-renewable resources,
fication and put a number of plans into action. The to include consumption of coal in the manufactur-
programme is based on Malaysia’s tried and tested ing sector, regulated by international environmental
model known as the Economic Transformational standards. The proposed energy policy would, help
Programme and the Omani government’s existing to shift the focus of decision-makers in Oman to-
diversification goals. The Tanfeedh programme has wards renewables. This sector is expected to attract
the ambitious aim to increase Oman’s GDP in the foreign investment and open up opportunities for
three focus sectors (logistics, manufacturing and renewable energy players in an untapped market.
tourism) from OMR 4.9bn in 2015 to OMR 6.6bn in The Oman Power and Water Procurement Com-
2020; to ensure that 80% of these initiatives are fi- pany SAOC (OPWP), has earmarked two locations
30 nanced by the private sector, as opposed to depend- for developing solar power plants. OPWP is ap-
ence on the government; and to generate around pointing technical and economic advisors to carry
30,000 jobs for Omanis throughout the implemen- out a feasibility study and economic benchmarking
tation phase. Based on an eight-step Malaysian for the proposed 200 MW solar powered independ-
methodology, the private and public sector partici- ent power plant. A tender process for selecting an
Yasser Taqi, pants who took part in the six-week consultation IPP developer for the project is expected to start
associate in the
Energy, Transport
process (or “labs”) were tasked to detail initiatives by the mid-2017. It is envisaged that this project,
and Infrastructure and to transform strategies from the 30,000-feet if successful, will become the blueprint for future
practice, Dentons overview to a “3 feet” action plan, which in turn solar power projects in Oman. Solar industry play-
paves the way for establishing measurable out- ers should be encouraged by the strong support
comes and KPIs. A dedicated “Delivery Support and displayed by the government to make this project
Andrew Figgins,
partner, Energy
Follow-up Unit” has also been established by the successful, and to encourage the development of
and Projects prac- Royal Decree 50 of 2016, with the specific remit to renewables and the diversification programme.
tice, Dentons. exclusively focus on implementation. With a view to preserving and continuing the
growth the country has witnessed since 1970, the
government of Oman has committed to planned,
focused diversification of the economy.
The Sultanate’s oil resources are dwindling; gas
remains a complex, expensive unconventional play;
and the future is trending towards renewables.
While the “Tanfeedh” programme has the potential
to open a number of new opportunities in various
sectors, opportunities in the renewable energy sec-
tor will largely depend on the success of the OPWP
solar IPP.
One thing is certain, though: Oman has put the
wheels in motion to diversify its economy and to
move away from oil dependency.




We tap into AVEVA’s
OIL AND GAS SHOULD technology expertise to
JUMP ON THE DIGITAL understand the benefits
BANDWAGON of digitalisation / p36

Going digital is a big
leap for many oil and
gas firms, we look
at how digital asset
management can help
improve the decision-
making process / p34


The oil and gas industry has been slow to digitise its systems and processes, but now,
the move is becoming essential to saving time, money and increasing safety. We look
how digitalisation can help the industry


Digitise or be damned
Upstream needs to adopt digitisation strategies or face falling behind

igitalisation has been a upstream sector was inefficient, as profits
buzzword for years across most were so large, small losses of productivity
industry verticals, from the could be ignored. The time, manpower, costs
factory that makes your shoes, and expertise needed to implement digitisa-
to heavy industry, and each tion strategies was – to many oil and gas
vertical has embraced the lowering of costs, powerhouses – unnecessary.
the increase in safety, and the ease that a Rather like that nice sticky chocolate cake
proper digitisation strategy has brought to on your birthday, for many upstream compa-
doing businesses. However, the oil and gas nies digitisation was a ‘nice to have’, but not
industry still lags behind. Just as cybersecu- a prerequisite, meaning that technology was
rity in the upstream oil and gas sector was often implemented bit by bit. This resulted in a end-to-end digitisation strategy. The dig-
overlooked, digitalisation has been too. piecemeal digital footprint with no real cohe- itisation of these companies operations will
The upstream sector has been particularly sion or strategy in place, limiting its full value. not only increase operational efficiency and
slow to adapt to digitalisation compared Then the oil price sagged. Upstream began shrink costs, but will open up new worlds of 33
with both midstream transportation and to realise that it needed to jump on the possibility, and powerful new capabilities.
storage operations, and downstream refin- digitalisation bandwagon pretty quickly to These can include insights into each working
eries and marketing functions. snip even the smallest waste of money off part of a wellhead to assess its functional-
Now that oil prices have continued to their books. ity, a better utilised labour force, smarter
remain subdued, and the oil and gas sector Many oil and gas companies are now exploration capabilities, the ability to predict
is looking for any way to trim costs and giving digitisation another look and the and move with changing market forces, and
improve processes, this is the time digitali- future of the industry really now rests on far safer operations.
sation should shine. During the oil and gas how quickly they can turn their outdated and Why wouldn’t upstream join the band-
boom years, it didn’t seem to matter if the siloed digital assets into a fully functional wagon? JANUARY 2018


Digital asset management is not just able to cut overheads, but it will - in the
long-term - improve safety by reducing wellsite head-count


Many oil and gas companies still rely on employees to complete jobs that could easily be automated.

espite an average US$2 per immense pressure to dramatically improve at a CAGR of 22.13%. The global digital
barrel drop in crude oil prices operational efficiencies and squeeze down asset management market was US$1.7bn in
between 2016 and 2017, operating costs, particularly considering 2016 and is forecast to reach US$5.64bn by
the oil and gas industry’s that capital expenditures for exploration 2022, according to the report.
investment into digital have dropped by about 25% since 2014 -
technologies shows no sign of slowing implementing DAM technologies is one way What can a DAM system do?
down. The benefits of digital investment to do this. A DAM system is an enterprise solution
outweigh the costs, with technologies According to a report by Oristep designed to assist companies to store,
such as digital asset management (DAM) Consulting entitled Global Digital Asset retrieve, organise, share and back up
reducing costs, increasing safety and Management Market - By Solution, digital assets, and manage rights and
operational efficiency, and allowing oil Deployment Model, Application, Industry, permissions. DAM enables usage tracking,
and gas companies in-depth insights Regions - Market Size, Demand Forecasts, workflow automation, archival, backups,
into their entire pipeline from well to Industry Trends and Updates (2016-2022), asset automation, and more. For example,
tanker. The oil and gas industry is under the global DAM market is forecast to grow the decreasing cost and increasing power of



DAM technologies is allowing the oil and gas Technological innovations such as this
industry to do more at the well site, giving need to drive a change in mind-set in the DIGITAL TRANSFORMATION
rise to new operating models. According oil and gas sector, from looking at an asset INITIATIVE: OIL & GAS INDUSTRY
to a white paper by the World Economic as a stand-alone entity, to a part of the 66,000 barrels
Forum(WEF), Digital Transformation entire project lifecycle from inception to Estimated reduction in spills in
Initiative Oil and Gas Industry, one such decommissioning and how that asset can upstream operations
DAM concept - applicable in high volume be better leveraged as part of the whole.
locations - is the introduction of platform- Such connectivity can dramatically US$220bn
based models to the oilfield. In this model reduce manpower costs, and in some cases, Potential value addition for
the well can be considered as the customer, replace oilfield workers altogether. A future the industry
with users and multi-skilled workers is envisioned where robots will be able to
equipped with digital wearables such run multiple operations autonomously. US$10bn
as mobility apps and smart glasses, as According to the WEF, the future of well Potential value for society
platform suppliers. sites will be drones and autonomous
An unmanned control centre, powered robots working together to shrink costs in 6%
by artificial intelligence (the platform upstream operations. This automation is Estimated reduction in accidents
itself), coordinates operations in real expected to support a 20% reduction in and injuries
time, bringing together supply and drilling and completion costs (only in shelf
demand. Operating models of this kind and deep-water areas), a 25% reduction 43,000 barrels
can significantly extend the lifecycle in inspection and maintenance costs, and Estimated reduction in pipeline spills
of oil and gas assets, while also driving 20% lower employee costs across all areas.
increases in operational efficiency and HSE Autonomous operations could also help to 38,000 jobs
performance, according to the report. cut downtime by 20%. Estimated number of jobs displaced
Implementation of DAM will also enable In total, these cost savings could
the oil and gas sector to improve its data- translate to a US$140bn saved per year. 20 million tonnes 35
driven decision-making processes, such as Increasing automation will also decrease Estimated reduction in
deciding where, and how to drill, planning accidents, and reduce risk - especially in CO2 emissions
portfolios, improving well completions or difficult environments - by replacing the
deciding what form of artificial lift works, number of people on-site required to do SOURCE:
and can maximise a project’s net present dangerous jobs. Digital Transformation Initiative Oil
value, according to the WEF white paper. Moreover, a cross-skilled workforce and Gas Industry: World Economic
would develop faster because of Forum
Reducing costs automation, which is likely to also minimise
Another very important technology, the the time needed to perform previously
Internet of Things (IoT), when utilised manual or mechanised tasks, according to vulnerable to cyber-attacks; the industry
alongside DAM, allows assets to be the WEF report. has many attack vectors. Development
connected from end-to-end, and can drilling and production have the highest
ensure that all systems, equipment, Overcoming complications cyber-risk profiles in the industry, with
sensors and data are communicating and Despite the benefits that DAM technologies seismic imaging falling at the lower end of
learning from actions across the industry, can bring, there are still adoption concerns the scale, but with increasing connectivity,
and throughout a well’s lifecycle. in the oil and gas community, mostly this may not be the case for much longer.
At a basic level, IoT is internet centred on physical and cyber security. The The low threshold of cyber security
connectivity between everyday objects, oil and gas industry’s level of cyber security measures is why cyber breaches remain
allowing them to ‘talk’ to each other - as is surprisingly low, according to a report by undetected for days, and why attacks such
well as learn - by creating, sending and Deloitte, and with every connected asset, as Shamoon in 2012—continue to reappear
receiving data. A simplistic example of the additional technology, and data-based in one form or another. Understanding
use of IoT in the upstream sector is wellsite link, cyber security risks escalate. Apart the risks, and implementing appropriate
automation, where sensors measure tank from the upstream industry’s critical cyber-security measures is the key to bring
levels across multiple well sites which can infrastructure status, a highly complex the oil and gas industry online and into the
trigger automated relief valves, and request ecosystem of computation, networking, automation era.
liquid-hauling truck drivers automatically, and physical operational processes spread For more on cyber security in oil and gas,
based on the optimal driving route. around the world makes the industry highly see page 48. JANUARY 2018



Trond Straume, the newly-appointed chief technology officer of AVEVA Solutions spoke to
AVEVA’s regional executive for Asia Pacific, the Middle East and Africa, Evgeny Fedotov, to dis-
cover more about digitisation and the opportunities that new software offers businesses across
the Middle East

Evgeny Fedotov: What is so exciting

about the trend of digitisation in the
oil and gas industry?
Trond Straume: When the downturn in the
energy market hit, the plant industry realised
it would have to adapt to remain profitable
on a price of sub-US$50 per barrel of oil.
However, this adaptation has not resulted in
a fundamental change in project execution or
operations. Many companies are embracing
36 the opportunities technology offers them to
digitise their operations for advantage.
For many companies, digitisation today
means embracing the possibilities of a
digital twin. This is a realisation of the actual
physical asset, whether that be a cargo vessel
or a refinery, in digital terms as data and
information. This vision encompasses live
information feeds from the functioning asset,
together with real time performance metrics
from sensors that measure key variables and
transmit them to control rooms for monitor-
ing. In addition, a true digital twin includes
the detailed archive of design, and engineer-
ing data as well as decisions that support the
live plant.
With a single data source, you can run your business more efficiently and gain more profit,
according to Trond Staume, CTO, Aveva.
EF: Can you explain a little more about
what the digital twin means for how accessible to everyone in the team. With a industry 4.0, a by-product of digitisation is
our customers do business? single, trusted source of data, known as the that companies now must collect, store, and
TS: At AVEVA we believe that digitisation Digital Twin, you can produce more efficiently, assess, ever-more vast amounts of informa-
is a way to protect the future and win new plan more accurately, and realise more profit tion generated by new tools, platforms
business. There are three steps to unlock the than ever before. and sensors. With an ever-expanding ‘data
potential: digitise, visualise, realise. Trusted reservoir’ beneath them, businesses need
engineering information is key to delivering a EF: Is it easy to implement? How can ways to extrapolate and act rationally upon
project successfully. However, projects create businesses ensure they choose the information, without being confused by its
massive amounts of digital content of their right software provider? sheer volume. In this context, intelligent
own, which must be marshalled and kept TS: Innovation brings its own challenges. In data – systems or tools that automatically



sift information flows to identify relevant

themes or link related pieces of information,
are becoming central to success. Combin-
ing intelligent systems with a data-centric
platform that enables a company to manage
its data more effectively. This is because the
technology retains and makes accessible
information from throughout the lifecycle of a
complex capital project. Being able to access
20 year-old design prototypes alongside
real-time performance data can transform a
manager’s ability to understand and manage
his asset accurately and quickly. A digital twin
makes this kind of data-centric management
approach possible.
Gartner authored a paper on digital trends
in 2017 and digital twin technology. It is a Trond Straume said that technology and innovation go hand-in-hand in the Gulf.
timely review of the current state of the
industry. It also looks at the trends that are DIAGRAM 1
gaining momentum as progressive operators
begin to explore the full potential of data- This diagram gives a sense of the assets, to show the depth and breadth
centric technology. It shows that to establish services and foundations that need to of the information streams required.
an effective digital twin strategy, each asset be present in a digital twin in diverse Source: AVEVA
requires a different set of data services. These
must be blended together with engineering 37
master data, effective visualisation tools, and
collaboration and workflow procedures.
Diagram 1 gives a sense of the services
and foundations that need to be present
in a digital twin in diverse assets, to show
the depth and breadth of the information
streams required.
An effective digital twin synthesises and
applies data streams in a deep and broad
way. Technology is embedded seamlessly into
core business processes. This ensures that
data is readily consumable and integrated
with low cost, high performance computer-
based analysis. tory criterion in all future tender selections. example, Takreer refined products will grow by
The company plans to use these technology 60%, and Kuwait Oil Company will increase
EF: What does this mean for compa- solutions to increase efficiency and optimise production to 3.65mn barrels of oil per day
nies operating here in the Middle East? production from its growing portfolio of (bpd). The scope for technological invest-
TS: For the Gulf, technology and innovation hydrocarbon assets. ment is huge.
go hand in hand. Just this year ADNOC an- There will be very significant growth slated For these companies, technology will be a
nounced that technology will be a manda- across the region in the next five years. For crucial tool to manage the increase in scale
and complexity. It’s perhaps not surprising
“BEING ABLE TO ACCESS DESIGN PROTOTYPES that the UAE recently appointed the world’s
ALONGSIDE REAL-TIME PERFORMANCE DATA first Minister for Artificial Intelligence. It’s
CAN TRANSFORM A MANAGER’S ABILITY TO proof of how seriously Middle Eastern govern-

UNDERSTAND AND MANAGE HIS ASSET ACCU- ments are thinking about the transformation
that technology can bring for their cities and
RATELY AND QUICKLY.” TROND STRAUME, CTO, AVEVA businesses, throughout the lifecycle. JANUARY 2018


Digital asset management will revolutionise the way companies work, taking data from a
digital swamp, to a well organised structure according to Derek Middlemas, CEO, DIGATEX


Derek Middlemas, CEO, DIGATEX says that digital asset management allows companies to get rid of duplicate and unwanted information.

igital asset management – what is it and why registers, 2D and 3D CAD models, photographs, is held in a digital
do I need it? format in some form of electronic document management or
EEveryone wants to jump on the digital bandwagon; filing system as datasets. So, what’s the big deal – isn’t this a
every post, blog and article seems to reference digital asset?
digital transformation, digital asset, digital twin, No, this is a digital swamp full of data anarchy made worse
Industry 4.0, and the Industrial Internet of Things (IIoT). Much of by digitisation. These datasets are held in individual digital
this commentary is high level and doesn’t get down to a practical containers in different formats, organised in folders and indexed
approach. Let’s demystify the digital asset, what it is, how it based on a document and drawing register.
improves performance and its role in the digital revolution. Often data is duplicated between the containers and is out of
Today most information, be it data, documents, drawings, asset date or inconsistent. So, it’s difficult to quickly access and trust



the relevant data, as you wade through folder after folder lifting
them from the murky swamp looking for what you need – does
this sound familiar? REDUCE THE TIME YOU TAKE TO
What if you could search for information based on task? For FIND AND VALIDATE INFORMA-
example, the need to maintain a pump, plan piping inspection, TION BY UP TO 80%.”
or complete a modification. Where would you like to start? I DEREK MIDDLEMAS, CEO, DIGATEX
want a single point of access working seamlessly on my PC or
tablet. I want to quickly find the object or objects (e.g. pump or management and operations excellence. The digital asset
piping system), I am interested in and then be presented with all becomes your online provider of trusted data feeding operations
the datasets that are appropriate to those objects and my task. systems, work processes (asset integrity, maintenance,
Ideally, I would like to navigate between those datasets in a visual modifications, equipment spares, etc.) and replacing separate
way having the objects of interest highlighted in the relevant siloed data thereby facilitating cross-functional integration
datasets in a 2D/3D visual map of the area of interest. I want this and working. Combined with 2D and 3D visualisation it can
all to be in-built and intuitive, just like the consumer apps on my revolutionise all your work activities enabling you to see the wood
iPhone. I want to be able to interact with the datasets to help for the trees, but still zoom into the smallest leaf.
plan my work without importing the dataset into another system However, this is just the start what’s possible, new
and then to see the results displayed visually. technologies such as IIoT, analytics and blockchain are
revolutionising the way we work but as a consequence causing a
What is a digital asset? massive increase in dynamic data from sensor feeds. Therefore
A digital asset is not a 3D model, nor a piece of software, nor a organising data by asset hierarchy, structured datasets (class
data model, nor a data warehouse. A digital asset replaces the library) and a visual 3D digital replica of the asset (the digital
document centric view of the world with an object centric view twin) will be essential to display, interpret and act on this
where data is organised, indexed and accessed via connected dynamic data. Whereas a digital asset represents the static
objects such as tags (i.e., pipelines, equipment, cables, steelwork, facility, the smart companies will understand the best way
buildings, etc). A digital asset can start small with a hierarchy of forward is to render dynamic attributes onto the existing digital 39
objects organised by asset breakdown structure, cross indexed to asset, thereby extending it, not reinventing it!
the tag or physical equipment classes, to which all datasets are
linked and accessed through a single user interface. Work smarter
The central concept is the class library, a standard way of Successful transformations overcome the status quo and
classifying the asset hierarchy and describing the datasets, current thinking. Big new engineering projects have already
replacing the outdated folder and file model with structured embraced object driven data management and started to relegate
datasets shareable between systems. documents to a support role. It’s in the data migration to the
Once you have this basic structure in place the waters will operating world where we drop the ball and need a leap of faith to
clear, and you can start to expose all the incomplete, inconsistent, transition business processes, address organisational culture and
duplicate data and gradually drain the swamp leaving you with resistance to change.
trusted information. Guided by business priority you then grow A focus on establishing an asset class library, embracing
your digital replica of the physical asset, enabling sharing, visualisation and accepting it’s a journey versus the perceptions
collaboration and re-use of the data with intelligent logical (2D) that it’s too difficult and costly to change.
and spatial (3D) visualisation capabilities. Don’t rush to buy technology because it’s not a technology
Once established, a digital asset will significantly reduce problem – that was solved many years ago. It’s about how you
the time taken to find and validate information by up to 80%. organise your data, how you prioritise business needs. It’s about
Multiply this saving alone by the number of colleagues in your an organisational shift from document controllers to information
organization and begin to imagine the overall productivity engineers who define, build and manage the digital asset.
increase, speeding up decision processes, improving risk Adopting a digital asset strategy can significantly improve
operational performance in the short term and asset integrity

in the longer term, providing a key foundation stone for Industry
4.0. In a world where achieving lower cost more productive ways
of working are critical, with fewer resources and ever-increasing
data and information demands, it’s no longer a question of can
THE TYPICAL NUMBER OF DATA TAGS AN OFF- we afford it, rather, can we do without it and how to do it cost
SHORE PRODUCTION PLATFORM CAN HAVE, NOT effectively. The digital train is approaching the station and for
ALL CONNECTED OR USED. some it’s already starting to leave. JANUARY 2018


How technology is helping Ballard Petroleum save 300 hours on field activities every month, by
Grant Eggleton, vice president, Global Production Solutions, P2 Energy Solutions

rom production efficiency tention going unnoticed. Additionally, data
to cost reduction, today’s input into the production solution didn’t
upstream sector challenges flow well into Ballard’s back-office systems,
are still driven by low oil prices. so information had to be keyed in multiple
Sector leaders recognise the times by multiple people.
chance to improve operational efficiency Every time somebody touches data, the
and increase production as a basis for future chances of introducing error to it are in-
prosperity and they know that, in this tough creased. Some employees weren’t therefore
energy economy, IT must drive business val- 100% confident with the data being used
ue through innovative technology solutions. and management often didn’t receive infor-
Take the case of Ballard Petroleum, a mation needed to make important business
private exploration and production company decisions in a timely fashion. Opportunities
Grant Eggleton, VP, Global Production
headquartered in Billings, Montana, manag- for creating efficiencies were being missed.
Solutions, P2 Energy Solutions
ing 112 wells and with a daily oil production It was time for change.
of 4,000 barrels. into Ballard’s accounting system for revenue
A production solution had been in place An integrated solution to put an purposes. All the siloes are brought together
at Ballard since 2009, but when news broke end to siloes into a single place. The key feature of the
40 that the product was going to be de-sup- In 2013 Ballard opted for P2 Production new system is that it connects the field to
ported, management decided to review all of which is designed to allow data to flow top management who can now see daily
the company’s production systems and all seamlessly from team to team for field data and consolidated volumes and be confident
of their processes. capture and validation, production data their decisions are based on accurate data
The business needed to eliminate management, hydrocarbon allocation and and therefore more likely to be right.
organisational data siloes, simplify the field production optimisation needs.
data capture and validation process, enable The field data capture tool quickly and Measurable, transparent results
production engineers to identify key trends efficiently collects and validates data at the The new solution brought Ballard many
and put accurate and timely data at top well sites. This was a game changer for the benefits. Pumpers now spend more time on
management’s fingertips. Management pumpers as they could now input the data resolving rather than hunting for problems.
started searching for an integrated, end-to- while in the field and be done at the end of In fact, 300 hours are saved every month on
end production solution that would create the day. field activities leaving more time to focus on
efficiencies, saving monthly field hours and The technology also integrates Ballard’s meeting production targets.
ultimately reducing costs. manually captured data with the data from Downtime reduction is another important
its SCADA systems, giving everyone a com- benefit. Pumpers can now analyse current
Too much reliance on plete picture of the company’s operations. and historical production numbers side by
manual processes When you have a ton of data, having the side and, if something is amiss, they’re able
Under its legacy systems, Ballard’s data tools to make sense of all of it and track to resolve the issue quickly and return the
lived in separate repositories and was being what’s happening, is crucial. asset to peak performance.
entered and re-entered several times. From the field, the data flows seamlessly Last but not least, the data is now overall
Pumpers had to capture production data in into the production data management sys- more accurate, and of higher quality thanks
a very old-fashioned way - using pen and tem within the solution to be allocated and to the pumpers being able to catch most of
paper. Once daily routes were completed, stored. The data is then channeled directly their own errors.
they would then drive to a Ballard field office
and use a desktop computer to re-enter the
information. Needless to say, this approach CHANCES OF INTRODUCING ERROR TO IT
was challenging and inefficient and could ARE INCREASED.”




The popularity of unmanned surveillance vehicles is growing rapidly in the oil and gas
sector because of their ability to shrink costs, and improve efficiency. These vehicles
may not replace humans just yet, but they are making the industry safer to work in



nmanned Aerial Vehicles (UAVs) “Conducting real-time safety inspections of
and other unmanned surveillance equipment with drones greatly reduces the need
vehicles are rapidly becoming for equipment shut-down. With appropriate sen-
popular in the oil and gas industry, sors, drones can detect hazardous materials such as
providing a high-tech addition tot escaping methane, sulphur, etc. before they become
he workforce that does not entirely life or project threatening issues,” stated Wimberly.
replace, but rather significantly Drones can also be used for project progress
enhances the abilities of the man on the ground, reporting and documentation. It is said that ‘a pic-
and physical inspections. Due to declining profits, ture paints a thousand words’, and using periodic
the oil and gas industry is strongly focussed on photos and/or video can provide invaluable infor-
efficiency and productivity to improve stakeholder mation to potential oil and gas project investors,
returns, and achieve or improve profitability, and and will provide a perspective that enhances the
UAVs, or drones, are a weapon in that arsenal. reports, charts and graphs that generally flow out
“Drones offer a cost-effective way to enhance of an oil and gas project.
surveillance and inspection of oil and gas assets, Close-up equipment inspection and documenta-
[production facilities, pipelines and refining and tion is also on the list of drone use priorities in oil
petrochemical plants etc.] with more complete and gas. Utilising high definition zoom equipped
and comprehensive plant status data gathering cameras, drones can inspect and detect imminent
and quicker response times compared to manual equipment failures both upstream and downstream
inspection – particularly in remote and hazardous – before they fail – in places that are very difficult
environments – all allowing better asset care and for a human to examine. These are hi-spec drones
integrity, ultimately improving efficiency. They also that can fly in wind conditions of up to 29 knots.
reduce costs and improve safety by removing the They can be fitted with sensors such as HD video,
need for people to be onsite,” said Simon Cushing, HD still, thermal cameras, airborne gas sensing and
research director at Gartner. laser measurement tools. 43
Unmanned underwater vehicles (UUVs) perform In a world full of security threats, the part drones
similar tasks for subsea equipment, which is a dif- can play in on-site security is not to be underes-
ficult and hazardous environment for humans to timated. In areas of the world where security is
work in, and remotely operated UUVs have been an ongoing challenge, drones are being used very
in use in the industry for decades. With these the effectively to monitor assets and provide quick
trend is towards centralised remote control and response to security events. Smaller drones, flying
autonomy. UAVs however, are the most commonly at altitude, can be nearly silent in their surveillance
used unmanned system. of perimeters and movement detection.
“Drones can provide an aerial perspective that “When events are detected by terrestrial sensors,
is only otherwise achievable with a helicopter, and drones can often be dispatched quicker than hu-
drones cost a tiny fraction of what a helicopter mans and provide a valuable video feed to security
costs to fly and maintain,” stated Bill Wimberly, command centres. Modern commercial drones
senior managing partner, Visioneering Associates, can carry high-powered zoom cameras, infrared,
and management consultant at CAPE Productions, thermal-imaging, etc.,” according to Wimberly.
a specialist in drone solutions. An interesting and perhaps less obvious use for
Drones can provide drone technology, is investor acquisition. Wimberly
an ‘eye in the sky’ Uses for drones has successfully used aerial photos and video taken
to ensure better
The uses for drone technology in oil in gas are by drones to enhance the presentation of an oil and
safety on site.
fairly diverse. However, drones are pre-eminently gas project for prospective investors.
used as a quick detection tool on site to ensure

operational efficiency, as well as human safety.
Drones can be used for activities such as flare
stack inspections, topside inspections, as well as
under deck and splash zone inspections. They can
be used on any part of the platform instead of, or
in addition to inspections typically requiring rope THE BASIC COST OF A COMMERCIAL DRONE
access or scaffolding. JANUARY 2018


“In addition to encouraging geology, geophysics

and financial return prospects, remotely located
investors want to see the physical well site, where
These vehicles can operate in all types of weather
it is in relation to other sites, what the surround-
conditions, with temperatures ranging from -4˚F
ing terrain looks like, etc. Aerial photos and video
to 100˚F. The S5 robot is designed to measure gas
can provide a valuable perspective for investors,”
he noted. content in the air at industrial facilities.
An effective drone deployment strategy can also The control of air conditioning and gas content at
provide an excellent tool for early detection of oil and gas plants is essential for protecting human
environmental problems. Companies in the USA, health, and the environment, and preventing ac-
such as Sensefly, use drones for early detection cidents. Gas content in the air is usually measured
and documentation of environmental impacts. in close proximity to the equipment and its junction
Drones can carry a variety of sensors and cameras pipelines, as well as along the facility perimeter.
for this purpose. In most cases, gas inspection is performed by
Drones are also used for site inspections when specialists with hand-held multi-gas monitors. This
planning operations, and for scanning to build 3D measurement procedure can be automated by fit-
models of sites. The trend is for expanded pay- ting a mobile robot with gas analysers and sending it
loads and greater drone autonomy. on patrol in the area. The S5 G Gas Detector Robot is
“Companies are developing robotic seismic capable of automatically patrolling the perimeter of
receiver [and source] drones, underwater and a facility completely unmanned.
land-based inspection and maintenance robots. In The robot’s guidance system adjusts its route when
future drones could also act as delivery vehi- encountering obstacles, and also returns the robot
cles, for spare parts for example or for incident for battery charging. While patrolling an industrial
response [first aid or firefighting equipment], and facility, the mobile robot stops to measure gases.
44 land-based or marine robots will undertake opera- The gas detector sends the results to the dispatch
tions on the plants themselves,” noted Cushing. centre of the facility. Depending on the wind’s direc-
tion, the robot may change its monitoring route. The
Working together S5 Gas Detector Robot is capable of continuously
Drones can be a highly effective new tool in the staying in an environment with dangerous concen-
toolbox of oil and gas field professionals. It may tration of toxic gases.
be some time however, before drone technol- Currently, security solutions require a security guard
ogy completely replaces boots on the ground. to be physically present. Most companies either
Wimberly states that drone technology works best employ a security guard or outsource their security
when used in tandem with physical staff, where needs. Both of the solutions are costly due to high
each compliments the capabilities of the other. labour costs and additional hiring expenses such as
“Drones may someday have such sophisticated recruitment costs.
enough artificial intelligence that they can con- SMP Robotics offers a solution that allows compa-
duct some tasks independent of human interven- nies to substantially cut their labour costs related
tion, but there is currently no replacement for the to employing security guards. First of all, security
expertise of experienced oil and gas professionals. robots are leased at a very affordable monthly price.
I see drones extending and enhancing the work Moreover, there are no additional costs related
of field personnel. I also see drones providing a to employee benefits, absenteeism and workers
safety factor that will reduce accidents. This is compensation.
always a good thing,” he noted. By integrating security robots into their security
It is impossible to exactly quantify the cost systems, organisations achieve 24/7 security
savings to oil and gas companies of implementing surveillance, as opposed to human security guards,
drone technologies, however, some estimates put who work eight hours a day, take breaks, request
savings across the inspection arena at around 80% time off, have weekends and celebrate holidays. The
to 85%. However, according to Wimberly return lifecycle of a robot is about three years, but they
on investment (ROI) and cost savings will depend need to be upgraded annually.
on the specific application of the drone(s) for an Source: Leo Ryzhenko, CEO, SMP Robotics
oil and gas company.



“I can say from experience and with confidence “WITH APPROPRIATE SEN-
that return on investment and cost savings are SORS, DRONES CAN DETECT
relatively easy to quantify for many oil and gas
applications. One reason for my confidence is the
relatively low cost of drone applications compared AS ESCAPING METHANE,
to alternatives,” he stated. SULPHUR, ETC. BEFORE THEY
The benefits of using unmanned surveillance BECOME LIFE OR PROJECT
vehicles are obvious to those in the industry, the
flexibility that unmanned vehicles offer to the oil
and gas industry – the ability to move around the ING ASSOCIATES AND MANAGEMENT CONSULTANT AT CAPE
plant very quickly, and be reconfigured with differ- AERIAL (DRONE) SOLUTIONS
ent sensor payloads; the accessibility – to see areas
of the plant that are inaccessible, or too hazardous, Adding sensors and specialised cameras increases
for people; the mobility – to cover greater areas these costs, but depending on the application, the
more quickly; and the cost – using drones may be alternative is often many multiples of the cost of
cheaper than using inspection teams. drone operations.
However, according to Cushing, drones still have “Keep in mind that drone deployment requires
to be operated and have range and payload weight human operators and pilots. This is a cost that
limitations, so do not entirely replace the need for has to be considered in the economics of a drone
people on or near site today. deployment strategy,” Wimberly said.
The Middle East’s harsh environment, and the
Working a drone constant battle against heat, dust, sand, wind and
Modern commercial UAVs, from most leading man- the occasional rainfall are definitely not ideal for
ufacturers, are very resilient and can operate for drone flight, however, various manufacturers have
thousands of hours with proper maintenance and built drones that are as resilient as possible under 45
Drones can be fitted
with all sorts of repair, like any other piece of industrial equipment. these conditions. As demand for drones under
job-specific Commercial drones are highly cost-effective, cost- these conditions increases, so will the technology
equipment. ing as little as US$3,000 with standard equipment. to protect them.
The recently announced Viper DJI Matrice 200
UAV is designed for industrial applications and
the drone can fly in bad weather, protected by its
closed shell from dust, cold, water and particles. It
features two camera mounts as well as resistance to
magnetic forces. High-performance motors paired
with 44cm propellers also ensure stable flight in
strong winds.
Drone aircraft technology has advanced beyond
the technology required to actually fly the drone,
for example the drone’s controller unit. Many com-
mercial drones today utilise an iPad, or comparable
Android device, to control drone flight.
“At CAPE we discovered that these ‘pads’ are
more susceptible to harsh conditions, particularly
heat, than the drones themselves. There are cur-
rently a few companies addressing this issue with
a cooling device that straps on to the back of the
pad to greatly reduce the effects of heat. Again, as
demand increases, solutions to challenges like heat
will emerge in greater and greater numbers,” ac-
cording to Wimberly.
Drones can be, and should be, excellent tools for
O&G professionals. JANUARY 2018


IoT-based well
TECHNOLOGY Siemens has announced a scal-
able, end-to-end IoT solution, designed
to help oil and gas companies optimise
production and reduce costs through
connected systems, automation, and ana-
lytics at the edge. Developed in collabora-
tion with Intel’s Industrial IoT Group,
Siemens IoT-based Well Surveillance
offers companies across the oil and gas
industry a cost-efficient solution designed
to link distributed assets into an integrat-
ed network with minimal effort, while
providing a high level of automation.

A round-up of some of the best releases this month


AspenTech’s latest Engineering, Manufacturing & Professionals from key industrial sectors, especially A Texas-based company has achieved back-to-back
Supply Chain and Asset Performance Management construction, can now measure force, load and 30% reductions in operating costs by utilising Cat
software, aspenONE Version 10.1, is designed to help leading distance with Straightpoint (SP) products. The manufacturer Connect technology and services to gather and analyse the
global companies achieve higher levels of safety and reliability has launched the Wireless Linear Displacement Transducer data generated by its equipment. According to Matt Begler,
by optimising asset performance. New to the aspenONE (WLDT), which is now complemented by a new tool, available global Cat Connect sales manager for Caterpillar Oil & Gas, the
Engineering suite, Aspen Operator Training enables the seam- in stroke lengths from 25mm (1 in.) to 200mm (8 in.) that can Texas-based company approached Caterpillar about a decade
less deployment of training for operators and engineers with accurately measure displacement or movement in a variety of ago with an interest in digitising its fleet and implement-
a dynamic simulation lifecycle solution that brings operator applications. The WLDT is a robust, absolutely linear position ing a telematics solution to improve efficiency. The rental
training simulation (OTS) online sooner and sustains safety / displacement transducer and is inherently frictionless, company implemented Cat Connect Asset Health Monitoring
throughout the lifetime of the asset. Aspen Operator Training presenting a mean time between failures (MTBF) in excess of across its fleet. This remote-monitoring system collects and
integrates technology acquired from Inprocess Technology 100mn cycles when properly used. It is also supplied with SP’s analyses pressure, temperature and fluid level data—as well
and Consulting Group with Aspen HYSYS Dynamics. SA700C wireless transmitter. as downtime events—from every compressor.



Trelleborg receives API 17L1 design certification for Type
3 clamps


Trelleborg’s offshore operation in Skelmersdale, UK, has

been certified for the design of its Type 3 Clamp under FEBRUARY 2018:
the American Petroleum Institute’s specification for flexible THE SPECIAL REPORT ON
pipe ancillary equipment (API 17L1 Ed. 1 2013). This is an
important milestone, as the suite of qualification requirements WELLHEADS & EQUIPMENT
relating to the design methodology of Trelleborg’s clamps and
Key to controlling the performance and pressure
Distributed Buoyancy Modules (DBM) is now complete. of crude production, maximising the efficiency of
wellheads and equipment while reducing risks as

well as costs, has been at the forefront of the oil
and gas sector, particularly in the region. O&GME
will look to analyse the innovations happening in
the regional upstream sector to enhance the quality
of wellheads and associated equipment, compare
foreign produce with local products, and above all
The Type 3 Clamp is comprised of a syntactic foam explore the opportunities the sector presents to
clamp body split in to a number of segments, an wellheads and equipment manufacturers.
upgraded titanium tensioning system and high tenacity straps. 47
Typically used in high load capacity and lower pipeline compli- WHY ADVERTISE?
ancy applications, this clamp provides an axial restraint on the
Oil & Gas Middle East is the ONLY BPA audited
client pipeline/flexible riser to locate a Distributed Buoyancy publication in the Middle East for the sector.
Module. The clamp can also be used for other applications, for 94% of our readers have made a purchasing
example in support of Ballast Modules or Ballasted Uraduct. decision based on the editorial and commercial
content within the publication.
58% of our qualified circulation are

3 SPECIALISED FOR OFFSHORE top level management, decision makers

and purchase influencers.

Trelleborg DBMs are typically used between a subsea

structure and a surface vessel or platform to reduce top
tension loads and to maintain project specific riser configura-
tions. The Type 3 Clamp, as well as the API 17L1 approved Type
4 Clamp, which includes internal rubber segments allowing for
larger pipeline tolerances and contractions, were developed
with a semi-automatic hydraulic installation tool to allow for
quick installation of the clamp on board vessels and platforms. MARCH APRIL

Sales Manager, Sales Executive,
Oil & Gas Middle East Oil & Gas Middle East
T: +971 444 3351 T: +971 444 3383
TODAY D: +971 55 542 1256 D: +971 58 865 3479
E: E: JANUARY 2018 2017


Haitai endeavours to make a mark

in Middle East oil and gas industry
Chinese steel manufacturer maintains presence in several regional countries, and intends to get a grip on
the energy market here, Haitai Group president, Jinsong Ding tells O&GME

Tell us a bit about your company. ship building, plates for maritime
Haitai Group is located in one of the platforms, and storage tanks, struc-
most important financial, inter- tures used for drilling tower, platform
national commercial, logistic and and infrastructure, piping system
trading centres, Shanghai. We are products like pipes, fittings and
a complex group of companies in- flanges used for refinery. Haitai is the
volved in steel, real estate, education, biggest stockist in China with 65,000
culture and entertainment. Our steel tons of steel pipes in stock and long
business started in 1994, after more term experience service international
than 20 years of development, Haitai project supply, especially in oil and
has become the most professional gas used steel products.
Jinsong Ding, president, Haitai Group.
supply chain management expert in
the steel industry. Currently we have Which country/ies in the Middle
already established a whole sales net East are you most active in and how What is your opinion about the cur-
48 including 15 branches and offices, do you wish to expand your reach in rent oil and gas market conditions?
eight warehouses, with over 100,000 the region? Even though oil price is in a low
sqm of indoor storage,. There is also With many years of experience of position right now, the demand of
prepared and ready 65,000 tons of steel exporting, we have a large pres- crude and natural gas is firmly grow-
steel pipe stock, as well as plates, ence in the projects in Middle East ing in the world. Demands finally
bars, rods and rebars. The company’s area, like UAE, Kuwait, Oman, Iraq, tell the truth. Even multiple types of
estimated annual sales of 2017 will be Egypt and Algeria. Now our Middle new energy are rising, taking over
520,000 tonnes. In order to respond East branch company located in Jebel some portions of crude oil in the
to the Chinese government One Belt Ali, the biggest port and freezone in energy market, but the increasing
One Road strategy, Haitai presented Middle East, radiates to the whole demand of hydrocarbon composi-
itself in Middle East as Haitai FZCO Middle East area, and we are plan- tion will be a strong support. In one
in Jebel Ali Free Zone. We hope ning to establish a supply chain and word, can you imagine a modern life
our professional services can bring service net exactly like we have done without plastic? The demand is very
and share the bonus of the Chinese in China. firm there.
economy boost.
What are the main products/ser- Considering the fact that we are
Kindly elaborate on your company’s vices that you specialise in? now in 2018, how has business
line and scope of business within Steel related products are in mas- for your company been last year?
the oil and gas industry. sive demand globally, for example, What are your plans and goals this
Steel, as one of the highest cost pipes in carbon, alloy and stainless year for?
performance materials for strength steel, both seamless, and welded are Estimated sales are about 520,000
in the world, is widely used in oil and needed. Plates and coils used as raw tonnes of steel products for 2017, but
gas industries. Drilling, production, material for the manufacturing of we are feeling better than previous
transmission, shipping, storage and pipes and piling, maritime plates for years. Having survived the coldest
refinery, in every technological pro- vessel and platform construction, winter of oil and gas and the steel
cess of oil and gas you will find steel tank plates, beams and channels for industry, will the spring still be far
involved. Pipes for drilling, transmis- steel structure, bars and rebars for away? The world is reviving from the
sion pipeline, plates for crude or LNG the construction industry. slumping economy.



ON THE MOVE Tony Branch and Appointment

Ronnie Garrick Month
CEO; president
of the


WMA, a provider of drilling waste
management services, is expecting
its annual target turnover to rise to
$265mn and the workforce to expand to
1,500, following the company’s acquisition
Ali Vezvaei Keith Johnson Roeland Punt by London-based Buckthorn Partners in
Executive president for Chief operating officer Commercial manager - May this year. As part of an organisational
Middle East, Bilfinger Speedcast International Middle East, Atradius restructuring, Tony Branch will expand his
current role as director within TWMA, taking
Engineering and industrial Speedcast International In a newly created role, over from Ronnie Garrick as CEO. Garrick,
services provider, Bilfinger Limited has announced Atradius has appointed according to a media statement, will assume
appointed Ali Vezvaei as that Keith Johnson, Roeland Punt as the role of company president, focussing and
executive president for its currently EVP of commercial manager, leading three areas for growth: merger and
Middle East operations. Speedcast’s Energy Middle East based in acquisitions, new geographic expansion, and
He oversees the group’s Division, will take over Dubai. Punt’s hire aims to new product and technology development. Oil
engineering and operating from David Kagan as chief support Atradius’ regional and gas sector-inclined private equity investors
companies in the region, operating officer, while also growth ambitions and Buckthorn acquired TWMA, which has a
focusing on the oil and gas keeping his existing Energy also signals Atradius’ current a turnover of $66mn, and employs
and petrochemical sectors, Division responsibilities. continued commitment about 540 personnel across offices and service 49
energy utilities and water, Kagan will be leaving to the region. “I am bases in Europe, the Middle East, North
as well as biopharma Speedcast in early excited to be supporting Africa, West Africa and the Americas. Most
industries. From March December due to personal continued profitable recently president of Regional Operations at
2017 until his appointment commitments, but will growth for Atradius in its Weatherford, Branch brings over 25 years of
as EP, Vezvaei was the remain as an advisor to most culturally diverse experience in the global drilling sector.
global VP of Bilfinger’s the CEO for a limited time. and dynamic region”
Engineering & Technologies “Keith brings decades of said Roeland Punt. Punt
division, based in Germany. operational experience started in his new remit in
“I am honoured and to the COO role, which September and reports to
excited to be a part of its will enable him to build Schuyler D’Souza, country
management team; and upon the solid operational manager, Orient Insurance
more so looking at the foundations that David PJSC and, managing
opportunities ahead in has developed during director, Atradius Middle
the dynamic and evolving the integration of Harris East. Punt started his
Middle East region,” CapRock,” said Pierre-Jean career at ABN Amro Bank in
according to Vezvaei. Beylier, Speedcast CEO. the Netherlands.

KHOBAR, KSA Directional driller ABU DHABI, UAE
NOTICE Lead control & Baker Hughes, is looking for a Commercial manager - Energy
instrumentation specialist directional driller to provides direct The applicant shall provide
BOARD The candidate will provide leadership, instruction and supervision to other management and oversight to all
supervision, and coordination to field engineers on day-to-day well site active projects within the designated
The latest jobs available the Control & Instrumentation work and activities. Applicants with country and support the Unit Contract
in the oil and gas industry engineering staff and design work. three to five years experience preferred. and commercial manager. JANUARY 2018



Transforming innovation
Rafi Hattar of Hexagon PPM says digital disruption should be seen as a positive force
that interferes with the existing way of doing business not to distract, but to improve


About the igitalisation is changing all areas of our life. It influ- Nevertheless, companies often fail to
ences the way we communicate, the way we stay move to a digital business model becuase
Rafi Hattar is the
vice president for informed, travel, look for and buy things, and take of three common mistakes.
the Middle East & care of our memories. Does anyone believe that Firstly company management may
Africa business of digitalisation is not going to influence the way we work wrongly consider digitalisation only as a
Hexagon PPM. and do business as well? Even the most committed techno- tool for back-office and operational effi-
sceptics understand that digitalisation has the potential ciency and not for management and con-
to deeply reshape the way enterprises interact and serve trol of mission critical work processes.
their customers. Secondly the company may be missing
Impact of digitalisation is very specific to each company a comprehensive company digital strategy,
depending on the type of business, industry and work pro- which implies failure to consider the in-
cesses, and may differ in timing, magnitude, and depth. terconnections among different company
However, regardless of the industry and business, digitali- business silos.
sation drives a common consequence: disruption. Thirdly, the company may forget the hu-
At first, disruption as a word may sound negative, which man factor, the company culture, and over-
may influence the way we consider consequences of in- look management support during change,
novation and new technologies. However, digital disrup- which is important for companies operat-
tion should be seen as a positive force that interferes with ing with aging systems and staff members.
the existing way of doing business not to distract, but to Nonetheless, a deeper analysis of the
improve processes. Digital disruption transforms innova- challenges related to adopting a digital
tion and radically changes consolidated business models. business model seems to indicate that



widely available business literature, which helps to describe and model the
work processes – either in part or as a whole. In addition, a lot of interac-
tion among stakeholders exists on global basis to analyse common issues
and suggest best practices. However, many companies still rely on manual
an error-prone work processes.
On the other hand, only a few technological forces are currently bringing
innovation to the industry. This is potentially transforming the way capital
projects are defined, managed, executed and delivered, while the industry
is still striving to achieve more efficiency, more effective costs control, and
therefore maximising return on both expenditures and investments.
A lot of room still exists for improvements, as many stakeholders admit.
Innovation is key here, but innovation means nothing without the tech-
nology and tools that enable it to take place. With technology, the following
questions must be considered: What technology is needed? Which domains
are potentially impacted? How can digital disruption enable significant break-
throughs in the way people work?
Rafi |Hattar noted that digital disruption should be Digitalisation requires collaboration between all departments to capture
seen as a chance for growth.
joint benefits for the whole business. Moreover, because digitalisation has a
major impact on how people work, it is essential to anticipate concerns and
problems originate more from manage- build a business case for the employees. In fact, no organisation achieves a
ment errors than technological failures. successful digital transformation without a thoughtful approach to change
Therefore, the question is not whether management: the people who apply technology in their daily jobs are those
disruption is either bad or good – as it can who will create additional value.
be both, depending on how it is managed. When thinking about digital priorities, management should identify the
The question is not why innovation and technologies and applications that would have the greatest potential positive 51
new technologies fail but rather whether impact on the company. As far as companies focussing on project execution
the embracing a digitalisation project are concerned, it is easy to suggest that investing in a project control and a
brings value, and provides a company with cost control platform should be one of the top of priorities. .
expected efficiency enhancements, or not. Digitalisation transforms innovation process and radically changes con-
That brings attention to some key issues solidated business models. The pace of innovation and the ability to benefit
to consider: from disruption that digitalisation is generating are becoming key success
1. Not all digital technologies and innova- factors in global competition. This increases the pressure on enterprises, and
tions bring real value to a company. opens up new business opportunities at the same time.
2. Digital disruption provides value as soon
as: it enables real breakthrough in the Digital disruption will change the way oil and gas
companies operate.
way people work; it facilitates coop-
eration and faster collaboration among
stakeholders; it breaks communication
silos; it allows digital synergies among
companies as well as internally.
3. It enhances management enabling faster,
wider and deeper control on business
critical work processes, so that more in-
formed – and therefore better – decisions
can be taken.

Project execution business

Capital project industry – and execution
- are good examples when discussing digi-
talisation and disruption. On one hand, this
industry relies on quite mature activities
and work processes while benefiting from JANUARY 2018


KOC - North
Kuwait Budget:
Center (GC)
uwait’s oil fields are currently connected to 26
gathering centres, which serve as a collection
location for crude produced at several wells
connected by flow lines, providing initial treat- PROJECT SCHEDULE
ment through the separation of associated gas and
Feasibility Study Q1 2014
removing salt. The Kuwait Oil Company (KOC) is
on track to create Gathering Center 32. The project FEED Q4 2014
will be built near Kuwait’s giant Burgan oil field and EPC ITB Q1 2016
will process crude oil and associated gas produced
Engineering & Procurement Q1 2017
from the Arifjan, Marat, Minagish, Oolite and Burgan
52 Wara fields. Completed Q3 2021

Contract Type Pre-Qualified Bidders Awarded

• Daelim Engineering & Construc-

• GS Engineering & Construction
• JGC Corporation
• Petrofac
• Saipem
• SK Engineering & Construction
• CCC - Consolidated Contracting
• Daewoo Engineering & Con-
EPC • Petrofac • Petrofac
• Hyundai Heavy Industries
• KBR - Kellogg Brown & Root
• L&T - Larsen & Toubro
• Lurgi
• SNC Lavalin
• Samsung Engineering Company
• Tecnicas Reunidas
• Aker Kvaerner
• Chiyoda Corporation
• China Petroleum Engineering &
Construction Corporatio




The project scope includes:
• Total crude oil production - 120,000 b/d. Date Status
• Crude oil desalting - 120,000 b/d.
According to the main contractor, the procurement process for
• Total condensate production - 12,500 b/d of condensate. Sep 2017
the project will be finalised in September 2018.
• Total effluent water - 280,000 b/d of water.
• Total gas production - 83 million cubic feet a day of gas. Petrofac has started the procurement process. The EPC
• High pressure and low pressure separators. Jul 2017
contractor received bids for the main packages.
• Water treatment via hydrocyclones and induced
gas flotation. KOC officially awards Petrofac a $1.33bn EPC contract for the
• Oil/water gravity separation and storage, including Mar 2017 project. The gathering centre is expected to start operations in
recovered oil system. September 2021.
• Oil desalting.
• Gas compression (TV/LP/HP). Petrofac submits the lowest bid of $1.33bn for the main
• Gas dehydration and conditioning (HC dewpointing). contract. SK Engineering submits second-lowest bid of $1.4bn
• Condensate dehydration and decolouring. Jan 2017
and Samsung Engineering submits third-lowest bid of $1.6bn.
• Effluent water treatment, collection and export. The Gathering Center 32 is set for completion by March 2020.
• Remote manifolds.
• Inlet manifolds.
• Crude product storage tanks. Nov 2016 The EPC contract is expected to be awarded in March/April 2017.
• Crude oil export.
• Gas export. Nov 2016 The client extends bid deadline to 20 December, 2016.
• Condensate export.
• Export oil pig launcher/receivers. KOC is extending the EPC bidding deadline to November 29,
Oct 2016
• Export gas/condensate (export and return) pig launcher/ 2016. 53
receivers (at GC-32 and BS-171a ISC). KOC Official states that project is now slated for completion in
• Off-spec condensate storage. Aug 2016
September 2021.
• Plant air.
• Instrument air. Jul 2016 KOC is setting the EPC bidding deadline for November 1, 2016.
• Fresh water.
The optional consortium companies are: Aker Kvaerner, Chiyoda.
China Petroleum E&C, Consolidated Contractors Company,
The Kuwait Oil Company (KOC) is the client of the project. Jul 2016
Daewoo E&C, Hyundai Heavy Industries, KBR, Larsen & Toubro,
Air Liquide, Saipem, SNC Lavalin.
Name of Client KOC is inviting the following to companies to bid for an EPC
KOC - Kuwait Oil Company Jul 2016 contract: Daelim, GS E&C, JGC Corporation, Petrofac, Samsung
Estimated Budget ($ US)
Engineering, SK E&C, Tecnicas Reunidas.
KOC is issuing invitations to bid for the EPC contract to
Apr 2016
Facility Type Last Updated prequalified bidders. List of bidders has not been disclosed yet.
Gas Gathering Centre 19-09-2017
Sector FEED KOC is planning to issue Invitations to Bid for the EPC contract
Nov 2015
Gas Amec Foster Wheeler in March, 2016.
Status PMC Completion for the project is expected in the third quarter of
Engineering & Procurement Main Contractor Jul 2015
Location Petrofac
Northern Kuwait Contract Value Due to delays for reasons undisclosed, the EPC contract is
Jul 2015
Project Start ($ US) expected to be tendered by third quarter of 2016.
Q1 2014 1,300,000,000
The EPC contract is expected to be awarded in late 2015 while
End Date Award Date Dec 2014
the project is slated for completion in October 2017.
Q3 2021 Q1 2017 JANUARY 2018


Ongoing and upcoming projects

Information is supplied by DMS Projects
Project Country City/ Region Facility Budget Status
ADCO- Bab Gas Compression Phase 3 U.A.E. Abu Dhabi Gas Compression 27,000,000 EPC ITB 2022-Q4

ADCO- Bab TH-F Peripheral Development U.A.E. Abu Dhabi Nitrogen 400,000,000 On Hold 2017-Q4

ADGAS- Integrated Facilities Project (IGD-S) Expansion (Phase 4) U.A.E. Abu Dhabi Gas Field Development 650,000,000 EPC ITB 2019-Q3

ADGAS- Integrated Gas Development (IGD) - Expansion (Overview) U.A.E. Abu Dhabi Gas Field Development 1,570,000,000 Construction 2019-Q3

ADGAS- Integrated Gas Development (IGD) - Expansion (Phase 1) U.A.E. Abu Dhabi Gas Field Development 500,000,000 Commissioning 2017-Q4

ADGAS- Integrated Gas Development (IGD) - Expansion (Phase 2) U.A.E. Abu Dhabi Gas Field Development 420,000,000 On Hold 2019-Q1

ADMA OPCO- Nitrogen Plant Upgrade U.A.E. Abu Dhabi Nitrogen 55,000,000 On Hold 2017-Q1

ADMA-OPCO - Nasr Full Field Development - (Overview) U.A.E. Abu Dhabi Oil Field Development 1,700,000,000 Construction 2018-Q4

ADMA-OPCO - SARB Offshore Oil Field Development - Package 2 U.A.E. Abu Dhabi Oil & Gas Field 500,000,000 Construction 2018-Q2

ADMA-OPCO - SARB Offshore Oil Field Development - Package 4 U.A.E. Abu Dhabi Gas Processing 455,000,000 Construction 2018-Q2

ADNOC - LNG Import Terminal U.A.E. Abu Dhabi LNG Storage Tanks 1,000,000,000 Feasibility Study 2020-Q3

ADNOC Sour Gas- Shah Field- Expansion U.A.E. Abu Dhabi Gas Network 9,500,000,000 FEED 2022-Q4

Bahrain LNG - Liquefied Natural Gas Receiving and Regasification Terminal Bahrain Hidd Liquefied Natural Gas (LNG) 660,000,000 Construction 2018-Q4

Banagas - Central Gas Plant Expansion Bahrain Sitra Gas Treatment Plant 600,000,000 Construction 2019-Q1
54 Bapco - Offshore Blocks Bahrain Various Exploration 80,000,000 Feasibility Study 2022-Q1

BNGEC - Fuel Pipelines And Storage Facilities Expansion Bahrain Sitra Gas Storage Tanks 80,000,000 Construction 2018-Q4

BP - Block 61 - Ghazeer Field Development Oman Al Dahirah Gas Field Development 5,000,000,000 Construction 2020-Q4

BP - Block 61 - Khazzan and Makarem Gas Fields Development Oman Al Dahirah Gas Field Development 24,000,000,000 Construction 2022-Q1

BP - Block 61 - Khazzan Gas Fields Development - Phase 1 - Central Processing Facility Oman Al Dahirah Gas Processing 1,200,000,000 Construction 2017-Q4

BP - Block 61 - Khazzan Gas Fields Development - Phase 1 - Overview Oman Al Dahirah Gas Field Development 15,000,000,000 Construction 2017-Q4

BP - Block 61 - Khazzan Gas Fields Development - Phase 1 - Package 1 Oman Al Dahirah Gas Field Development 1,500,000,000 Construction 2018-Q4

BP - Block 61 - Khazzan Gas Fields Development - Phase 1 - Package 2 Oman Al Dahirah Gas Field Development 130,000,000 Construction 2017-Q3

DNO - Block 8 Oil & Gas Field Development Oman West Bukha Gas Field 45,000,000 Construction 2022-Q4

Dolphin Energy - Northern Emirate Pipeline (NEP) U.A.E. Sharjah Gas Pipeline 150,000,000 FEED 2022-Q3

Emirates LNG - Fujairah LNG U.A.E. Fujairah Liquefied Natural Gas (LNG) 3,000,000,000 Feasibility Study 2018-Q4

GASCO - Bab Sour Gas Field Development U.A.E. Abu Dhabi Gas Processing 10,000,000,000 On Hold 2018-Q4

GASCO - Black Powder Management U.A.E. Abu Dhabi Gas Pipeline 41,000,000 Construction 2017-Q4

GASCO - Integrated Gas Development (IGD) - Expansion (Onshore Pipeline) U.A.E. Abu Dhabi Gas Production 7,100,000,000 Construction 2017-Q4

GASCO - Taweelah - Gas Compressor Station U.A.E. Abu Dhabi Gas Processing 70,000,000 Engineering & Procurement 2019-Q1

GASCO - Thammama F Early Nitrogen Rejection Unit U.A.E. Abu Dhabi Gas Processing 500,000,000 On Hold 2017-Q4

GASCO - Yas - Mina Zayed Gas Pipeline U.A.E. Abu Dhabi Gas Processing 45,000,000 Construction 2019-Q3

GASCO- Asab 1- Control System Upgrade U.A.E. Abu Dhabi Distributed Control System
(DCS) 55,000,000 Engineering & Procurement 2018-Q4

GASCO- Habshan 5 - New Compression Facility U.A.E. Abu Dhabi Gas Processing 800,000,000 On Hold 2019-Q1

GASCO- HP Connection- New NGV Filling Stations (Phase 2A) U.A.E. Abu Dhabi Gas Pipeline 10,000,000,000 On Hold 2018-Q1

GASCO- Ruwais - Train 1 & 2 Process Cooling Fire Water Pumps Replacement U.A.E. Abu Dhabi Gas Processing 80,000,000 FEED 2022-Q2

Khafji Joint Operations (KJO) - Dorra Gas Field Development (Overview) Saudi Arabia Eastern Region Gas Field Development 5,000,000,000 On Hold 2017-Q2



Project Country City/ Region Facility Budget Status
KIPIC - Al Zour LNG Import And Regasification Terminal Kuwait Al Zour Liquefied Natural Gas (LNG) 3,330,000,000 Engineering & Procurement 2020-Q3

KNPC - Mina Al Ahmadi Refinery Fifth Gas Train Kuwait Mina Al Ahmadi Gas Processing 2,300,000,000 Construction 2018-Q1

KOC - North Kuwait Gathering Center (GC) 24 Upgrade Kuwait Northern Kuwait Gas Gathering Centre 150,000,000 On Hold 2018-Q1

KOC - North Kuwait Gathering Center (GC) 32 Kuwait Northern Kuwait Gas Gathering Centre 1,650,000,000 Engineering & Procurement 2021-Q3

KOC - North Kuwait Manifold Gathering System for Gathering Centers (GC) 29, 30, 31 Kuwait Northern Kuwait Gas Gathering Centre 2,500,000,000 Construction 2018-Q1

KOC - West Kuwait BS-171 Gas Sweetening Facility Kuwait West Kuwait Gas Treatment Plant 400,000,000 EPC ITB 2019-Q4

MOG - Block 43b Onshore Exploration and Production Oman Northern Oman Gas Exploration 40,000,000 EPC ITB 2022-Q2

MOG - Block 65 Onshore Exploration and Production Oman Northern Oman Gas Exploration 40,000,000 EPC ITB 2022-Q2

NOC - Al Shaheen Offshore Field Development Plan Qatar Qatar Oil & Gas Field 500,000,000 Construction 2022-Q3

NOGA - Gazprom - Liquefied Natural Gas (LNG) Distribution Centre Bahrain Various Liquefied Natural Gas (LNG) 600,000,000 Feasibility Study 2020-Q1

OLNG - Qalhat LNG Expansion Oman Qalhat Liquefied Natural Gas (LNG) 100,000,000 FEED 2021-Q2

Oman Gas Company - Murayrat PLS Upgrade Oman Adam Ad Dakhliya Gas Processing 100,000,000 Construction 2017-Q4

Oman Gas Company - Muscat Gas Network Oman Muscat Gas Network 100,000,000 Feasibility Study 2022-Q4

Oman Gas Company - Salalah LPG Extraction Oman Salalah Liquefied Petroleum Gas 650,000,000 Engineering & Procurement 2020-Q1

Orpic - Liwa Plastics Industries Complex - NGL Extraction Units Oman Sohar Natural Gas Liquefaction
(NGL) 700,000,000 Engineering & Procurement 2019-Q1

Orpic - Nitrogen Gas Plant Oman Sohar Nitrogen 50,000,000 Construction 2019-Q1

Oryx GTL - Expansion of Gas To Liquids Plant Qatar Ras Laffan Gas to Liquids (GTL) 1,500,000,000 Feasibility Study 2020-Q4

PDO - Kauther Depletion Compression Phase 2 (KDC2) Oman Al Dakhiliya Gas Compression 190,000,000 Construction 2018-Q3

PDO - Khulud Tight Gas Development Project (KLD) Oman Al Wusta Gas Field Development 300,000,000 Engineering & Procurement 2020-Q2 55
PDO - Mabrouk Deep Phase-3 (Gathering & Surface Facilities) Oman Saih Rawl Gas Gathering 200,000,000 Construction 2017-Q4

PDO - Rabab-Harweel Integrated Plant (RHIP) - Overview Oman Harweel Gas Processing 3,000,000,000 Construction 2019-Q1

PDO - Saih Nahaydah Depletion Compression Phase-2 (SNDC2) Oman Saih Nihayda Gas Compression 180,000,000 Construction 2018-Q3

PDO - Saih Nihayda Condensate Stabilization Plant Oman Saih Nihayda Gas Treatment Plant 115,000,000 Construction 2018-Q1

PDO - SRCPP & SNGP Condensate Recovery Maximisation Oman Saih Nihayda Gas Processing 300,000,000 Commissioning 2017-Q4

Port of Duqm Company - Floating Storage Regasification Unit (FSRU) Oman Duqm LNG Regassification 500,000,000 Feasibility Study 2021-Q3

Qatar Petroleum (QP) - Air Compressor Replacement at Mesaieed Refinery Qatar Mesaieed Gas Processing 50,000,000 Construction 2017-Q4

Qatar Petroleum (QP) - Vapour Recovery System at Multi Product Berth Qatar Mesaieed Gas Processing 50,000,000 On Hold 2019-Q2

Qatargas - Zekreet Gasoline Production Facility - Phase 2 Qatar Ras Laffan Gas Production 2,000,000,000 FEED 2022-Q4

RasGas - Helium 3 Production Plant Qatar Ras Laffan Helium 600,000,000 Construction 2018-Q2

RasGas - Qatar Barzan Gas Field Development Project - Offshore - Phase 2 Qatar North Field Gas Field Development 700,000,000 Engineering & Procurement 2019-Q4

RasGas - Qatar Barzan Gas Field Development Project - Offshore - Phase 3 Qatar North Field Gas Field Development 300,000,000 Engineering & Procurement 2023-Q4

RasGas - Qatar Barzan Gas Field Development Project - Onshore - Phase 2 Qatar North Field Gas Field Development 2,000,000,000 Feasibility Study 2019-Q4

RasGas - Qatar Barzan Gas Field Development Project - Overview Qatar North Field Gas Field Development 10,300,000,000 Construction 2021-Q4

Saudi Aramco - Arabiyah and Hasbah Gas Field Development Saudi Arabia Arabiyah Gas Field 3,000,000,000 Construction 2019-Q1

Saudi Aramco - Fadhili Gas Plant (Overview) Saudi Arabia Eastern Region Gas Treatment Plant 6,600,000,000 Construction 2019-Q3

Saudi Aramco - Fadhili Gas Plant - Downstream Packages Saudi Arabia Eastern Region Gas Processing 650,000,000 Construction 2019-Q3

Saudi Aramco - Fadhili Gas Plant - Industrial Support Facilities (FISF) Saudi Arabia Eastern Region Gas Treatment Plant 100,000,000 Construction 2019-Q3

Saudi Aramco - Fadhili Gas Plant - Main Processing Facilities (Package 1) Saudi Arabia Eastern Region Gas Treatment Plant 2,500,000,000 Construction 2019-Q3

Saudi Aramco - Fadhili Gas Plant - Offsites & Utilities (Package 3) Saudi Arabia Eastern Region Gas Field 2,000,000,000 Construction 2019-Q3

Saudi Aramco - Fadhili Gas Plant - Sulphur Recovery Unit SRU (Package 2) Saudi Arabia Eastern Region Gas Treatment Plant 2,500,000,000 Construction 2019-Q3 JANUARY 2018


Project Country City/ Region Facility Budget Status

Saudi Aramco - Haradh Gas Increment Program - Freeflow Pipelines Saudi Arabia Haradh Flowlines 470,000,000 Engineering & Procurement 2019-Q1

Saudi Aramco - Haradh Gas Increment Program - North Haradh Field Gas Compression
Saudi Arabia Haradh Gas Compression 1,200,000,000 Engineering & Procurement 2020-Q1

Saudi Aramco - Haradh Gas Increment Program - South Haradh Field Gas Compression
Facilities Saudi Arabia Haradh Gas Compression 1,200,000,000 Engineering & Procurement 2020-Q1

Saudi Aramco - Haradh Gas Increment Program - Satellite Gas Compression Facilities Saudi Arabia Haradh Gas Compression 1,200,000,000 Engineering & Procurement 2020-Q1

Saudi Aramco - Hasbah Field Increment II Saudi Arabia Hasbah Gas Field 1,600,000,000 Construction 2019-Q2

Saudi Aramco - Hawiyah Gas Plant Expansion Saudi Arabia Hawiyah Gas Processing 1,200,000,000 Engineering & Procurement 2021-Q2

Saudi Aramco - Juaymah - Enhanced LPG Piping Network Saudi Arabia Juaymah Gas Pipeline 100,000,000 EPC ITB 2020-Q1

Saudi Aramco - Liquefied Gas Station For Shedgum & Uthmaniya Gas Plants Saudi Arabia Various Natural Gas Liquefaction
(NGL) 74,000,000 Construction 2018-Q3


Project Country City/ Region Facility Budget Status
ADCO - Buhasa Onshore Oil Field Expansion Project U.A.E. Abu Dhabi Oil Production 3,000,000,000 Feasibility Study 2021-Q1

ADCO - Mender Field Development U.A.E. Abu Dhabi Oil Field Development 350,000,000 Construction 2018-Q3

ADCO - North East Bab (NEB) - (Al Dabbiya) ASR U.A.E. Abu Dhabi Oil Production 2,500,000,000 On Hold 2020-Q4

ADCO - North East Bab (NEB) - Phase 3 (Al Dabbiya) U.A.E. Abu Dhabi Oil Production 2,300,000,000 Construction 2017-Q4

ADCO - North East Bab (NEB) - Phase 3 (Rumaitha-Shanayel) U.A.E. Abu Dhabi Oil Production 1,440,000,000 Construction 2017-Q4

ADCO- Bab Integrated Facilities Project- Expansion U.A.E. Abu Dhabi Oil Field Development 2,000,000,000 EPC ITB 2020-Q1

56 ADCO- Bab TH-F Peripheral Development U.A.E. Abu Dhabi Nitrogen 400,000,000 On Hold 2017-Q4

ADCO- Buhasa- Wellhead Automation U.A.E. Abu Dhabi Oil Field Development 100,000,000 FEED 2019-Q3

ADCO- Fujairah MOT - Hydraulic Pressure Recovery System Turbine U.A.E. Fujairah Oil Field Development 800,000,000 On Hold 2017-Q1

ADCO- Qusahwira Field Development - Phase 2 U.A.E. Abu Dhabi Oil Field Development 550,000,000 EPC ITB 2020-Q3

ADCO- South East Asset- Tie-in Project (A,B, C & D) U.A.E. Abu Dhabi Oil Field Development 650,000,000 Construction 2019-Q4

ADMA OPCO - Nasr Full Field Development - Phase 2 (Package 2 - Platforms) U.A.E. Abu Dhabi Oil Field Development 195,000,000 Construction 2018-Q4

ADMA OPCO - Nasr Full Field Development - Phase 2 (Package 3) U.A.E. Abu Dhabi Oil Field Development 200,000,000 Construction 2018-Q2

ADMA OPCO- Nasr Full Field Development - Phase 2 (Package 1 - Wellheads and Pipeline) U.A.E. Abu Dhabi Oil Field Development 900,000,000 Construction 2018-Q4

ADMA-OPCO - Nasr Full Field Development - (Overview) U.A.E. Abu Dhabi Oil Field Development 1,700,000,000 Construction 2018-Q4

ADMA-OPCO - SARB Offshore Oil Field Development - Package 2 U.A.E. Abu Dhabi Oil & Gas Field 500,000,000 Construction 2018-Q2

ADMA-OPCO - SARB Offshore Oil Field Development - Package 4 U.A.E. Abu Dhabi Gas Processing 455,000,000 Construction 2018-Q2

ADMA-OPCO - Umm Al Lulu Field Development - (Overview) U.A.E. Abu Dhabi Oil Field Development 2,500,000,000 Construction 2018-Q1

ADMA-OPCO - Umm Al Lulu Field Development - Package 1 U.A.E. Abu Dhabi Oil Field Development 800,000,000 Construction 2018-Q1

ADMA-OPCO - Umm Al Lulu Field Development - Package 2 U.A.E. Abu Dhabi Oil Field Development 170,000,000 Construction 2018-Q1

ADMA-OPCO - Umm Shaif Infield Pipelines Replacement U.A.E. Abu Dhabi Oil Field Development 500,000,000 EPC ITB 2019-Q4

ADMA-OPCO- Bu Haseer Field U.A.E. Abu Dhabi Pipeline 155,000,000 Construction 2018-Q2

ADMA-OPCO- Lower Zakum - Oil Lines Replacement (Phase 1) U.A.E. Abu Dhabi Pipeline 850,000,000 Construction 2018-Q2

ADNOC & EMARAT - Fujairah Terminal Expansion Phase 3 U.A.E. Fujairah Oil Storage Tanks 40,000,000 Feasibility Study 2018-Q4

ADNOC Distribution - Bateen Executive Airport- Jet Fuel Depot U.A.E. Abu Dhabi Oil Storage Tanks 80,000,000 Engineering & Procurement 2019-Q4

ADNOC Sour Gas - Dalma Field U.A.E. Abu Dhabi Oil Field Development 800,000,000 Feasibility Study 2020-Q4

ADNOC- Fujairah- Mandous Field U.A.E. Fujairah Oil Storage Tanks 500,000,000 EPC ITB 2023-Q4

ADNOC- Ghasha Field U.A.E. Abu Dhabi Oil & Gas Field 1,000,000,000 Feasibility Study 2025-Q1

ADOC - Hail Offshore Oilfield U.A.E. Abu Dhabi Oil Field 500,000,000 Construction 2019-Q3



Project Country City / Region Facility Budget Status
ADOC - Mubaraz Field Expansion U.A.E. Abu Dhabi Oil Field Development 500,000,000 FEED 2022-Q4

Al Dhafra Petroleum - Haliba Oil Field U.A.E. Abu Dhabi Oil Field Development 500,000,000 EPC ITB 2023-Q2

Aramco - Aindar and Fazran Oil Fields - Sulphate Removal Facilities Saudi Arabia Eastern Region Waste Management PMC 2020-Q3

Aramco - Berri - Gas-Oil Separation Plant Expansion Saudi Arabia Berri GOSP 1,700,000,000 FEED 2020-Q1

Aramco - Manifa Oilfield Upgrade Saudi Arabia Manifa Oil Field Development 500,000,000 EPC ITB 2019-Q1

BAC - NOGA - Bahrain International Airport Modernization Program - New Aviation Fuel Bahrain Muharraq Airport 200,000,000 Engineering & Procurement 2019-Q2
Farm & Fuel Hydrant

Bahri - Very Large Crude Carriers (VLCCs) Construction Saudi Arabia Various Very Large Crude Carriers 1,000,000,000 Construction 2017-Q4

Bapco - Offshore Blocks Bahrain Various Exploration 80,000,000 Feasibility Study 2022-Q1

Bapco - Saudi Aramco - AB Pipeline Bahrain Abqaiq - Sitra Pipeline 350,000,000 Construction 2017-Q4

DRPIC - Duqm Refinery & Petrochemical Complex - Duqm Refinery - Main Process Units Oman Duqm Refinery 4,000,000,000 Engineering & Procurement 2019-Q4

DRPIC - Duqm Refinery & Petrochemical Complex - Duqm Refinery - Offsites and Utilities Oman Duqm Refinery 2,000,000,000 Engineering & Procurement 2019-Q4

DRPIC - Duqm Refinery & Petrochemical Complex - Duqm Refinery - Overview Oman Duqm Refinery 7,700,000,000 Engineering & Procurement 2019-Q4

DRPIC - Duqm Refinery & Petrochemical Complex - Duqm Refinery - Package 3 Oman Duqm Oil Storage Terminal 250,000,000 Engineering & Procurement 2019-Q4

Duqm Petroleum Terminal Company - Duqm Liquid Jetty Oman Duqm Oil Storage Terminal 600,000,000 Engineering & Procurement 2019-Q4

Florexx International Investments - Biofuels Refinery Oman Sohar Biofuels 800,000,000 Engineering & Procurement 2020-Q4

Fujairah Oil Terminal (FOT) - Fujairah Oil Terminal Modifications U.A.E. Fujairah Oil Storage Tanks 200,000,000 EPC ITB 2020-Q1

GASCO - Integrated Gas Development (IGD) - Expansion (Onshore Pipeline) U.A.E. Abu Dhabi Gas Production 7,100,000,000 Construction 2017-Q4

GASCO - Yas - Mina Zayed Gas Pipeline U.A.E. Abu Dhabi Gas Processing 45,000,000 Construction 2019-Q3

GASCO- Integrated Gas Development - Expansion (42 Inch Pipeline) U.A.E. Abu Dhabi Oil Field Development 450,000,000 Construction 2018-Q4 57
Gulf Petrochem - Oil Storage Terminal Facility at Fujairah - Phase 2 U.A.E. Fujairah Oil Storage Tanks 300,000,000 On Hold 2019-Q1

Hydrocarbon Finder - Block 7 Onshore Exploration and Production Oman Al Wusta Exploration 50,000,000 Engineering & Procurement 2019-Q1

IL&FS Prime Terminals FZC- Fujairah Oil Terminals- Phase 2 U.A.E. Fujairah Oil Storage Terminal 80,000,000 EPC ITB 2019-Q2

Kismat International - Petroleum Terminal (Phase 1) U.A.E. Sharjah Oil Storage Tanks 50,000,000 On Hold 2019-Q4

KNPC - Ahmadi Depot Expansion Kuwait Ahmadi Oil Storage Tanks 250,000,000 Construction 2018-Q2

KNPC - Discharge Of Treated Effluent In MAA & MAB Refineries Kuwait Various Pipeline 100,000,000 On Hold 2018-Q4

KNPC - New Local Marketing Depot At Matlaa Area Kuwait Northern Kuwait Oil Storage Tanks 500,000,000 FEED 2019-Q4

KOC - Exxon Mobil Corporation - Ratqa Lower Fars Heavy Oil Handling Facilities - Drilling Kuwait Jahra Oil Field Development 500,000,000 Construction 2018-Q2

KOC - Jurassic Non-Associated Gas Reserves Kuwait Northern Kuwait Oil & Gas Field 1,300,000,000 Engineering & Procurement 2018-Q2

KOC - Jurassic Production Facilities Off-Plot Works Kuwait Northern Kuwait Oil Field Development 300,000,000 Engineering & Procurement 2019-Q2

KOC - Kuwait Bay and Divided Zone Offshore Exploration Kuwait Various Exploration 1,000,000,000 Construction 2018-Q1

KOC - Minagish Marrat Water Injection Project Kuwait Minagish Water Injection 164,000,000 EPC ITB 2021-Q1

KOC - New 48'' Crude Transit Line From North Kuwait To CMM Kuwait Northern Kuwait Pipeline 270,000,000 Engineering & Procurement 2019-Q3

KOC - North Kuwait Jurassic Early Production Facility (EPF) - Phase 2 Kuwait Northern Kuwait Oil Production 100,000,000 FEED 2023-Q3

KOC - Ratqa Lower Fars Heavy Oil Development - Phase 1 Kuwait Northern Kuwait Steam Injection 4,300,000,000 Construction 2018-Q4

KOC - Wara Pressure Maintenance Project - Train 3 Kuwait Southeast Kuwait Oil Field Development 500,000,000 Engineering & Procurement 2020-Q4

Masirah Oil Ltd - Block 50 (Masirah Bay Offshore) - Exploration Oman Masirah Basin Exploration 250,000,000 Construction 2020-Q1

Medco Arabia - Block 56 Onshore Exploration and Production Oman Adam Ad Dakhliya Exploration 20,000,000 Engineering & Procurement 2020-Q4

MOG - Block 18 Offshore Exploration and Production Oman Batinah Exploration 30,000,000 On Hold 2021-Q1

Note : The above information is the sole property of DMS Projects. Budget figures are shown as US $ values. Source: JANUARY 2018


Kamal Mokrani, FIVE

Global VP, InfiNet MINUTES
Wireless WITH...
Oil & Gas Middle East delves into Wireless technology and what it means for oil and gas

What does InfiNet do in the oil and gas industry?


With over 35 years’ international experience,
0:01 Our range of wireless solutions and technologies have been deployed by many
energy operators to help them improve connectivity in remote, and often
hazardous environments, providing reliable solutions, which are designed to
primarily in the IT and telecoms industries, increase productivity and improve safety. InfiNet’s solutions aim to deliver
across Europe, MENA, Asia and the Americas,
flexible wireless broadband connectivity, while remaining cost-effective, and
Kamal joined InfiNet Wireless in Feb 2008 as
rugged enough to operate in the harsh terrains and climates often associated
Global Vice President.
with oil and gas fields, from the plains of Siberia to the deserts of Saudi Arabia.

What does the company do that is dif- “DESPITE ACCEPTANCE
ferent to competitors? BY MANY OIL AND
Our equipment can withstand extreme
temperatures, humidity, precipitation, sand
storms, dust, sea water, air pollution, etc. - many of which are typical of the OF WIRELESS
58 conditions in the Middle East. Using InfiNet’s IP-rated technology, its broad- TECHNOLOGIES, THERE
band speeds and uniform coverage over large camps or fields, an energy ARE STILL BARRIERS.”
operator is able to deploy far fewer access points in each desired location,
reducing capital expenditure and labour costs normally associated with

installations and maintenance activities in harsh environmental conditions.

How have the subdued market prices dropped dramatically
oil and gas prices af- and companies shifted their focus to
fected your business in conserving cash. Consequently, gone
2017? are the days when far flung outposts What opportunities and innovations

The significant drop in were connected by expensive satellite have you created this year?
capital expenditure in the and fibre-based networking equip- We have seen a big demand for reliable
energy sector was mainly ment, a major paradigm shift which wireless platforms from oil and gas com-

driven by the reduction has actually opened up a big business panies wishing to replace legacy satellite or
of drilling activity by opportunity for wireless vendors such WiMAX deployments with more advanced
operators for projects as InfiNet, despite falling revenues for platforms. Wireless broadband has become
deferred or cancelled as the operators. a mission critical element of any local or
wide area network deployed by oil and gas
companies and is essential to productiv-
What will be your greatest challenge in 2018?

ity, safety, and security of their assets. We

Despite acceptance by many oil and gas operators of wireless tech- are adding value to this market sector by
nologies, there are still barriers. For example, airwaves are a scarce developing new solutions, able to deliver
resource and they need to be managed properly in order to protect even more data within the same spectrum,
frequency licence owners and ensure zero disruption to their busi- whilst maintaining sub-millisecond laten-
nesses. Without the presence of a strong regulator, the wireless cies, as well as provide high definition video
space will quickly become a “radio jungle” with very high levels of streams to allow all analytics - and fulfilling
interference and operational nightmares for the energy operators. all these requirements cost-effectively.


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Designed to
built to last.
The ME 2000
Our ME 2000 rig meets the need for power, reliability,
and rugged durability in challenging drilling
environments. Additionally, the ME 2000 is now
NOVOS™ enabled, bringing you scalable process-
automation that delivers consistent drilling operations.

By combining advances in technology with a foundation

of field-proven equipment, we’re bringing you the rig of
the future today.

Learn more at and

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