Professional Documents
Culture Documents
FUTURE PERFORMANCE
Sohar Aluminium Abdulrahman Al-Hatmi,
Group CEO, ASYAD
Enhanced Oil
Recovery
UNLOCKING THE
POTENTIAL
EDITOR’S NOTE
TAPPING NEW
No 69 July, 2019
OPPORTUNITIES
www.businessliveme.com July 2019
Enhanced Oil
Recovery
UNLOCKING THE
POTENTIAL
P
etroleum Development Oman (PDO) operates in some of the most complex and
challenging oil and gas fields and is among the world leaders in Enhanced Oil
Recovery (EOR) techniques, pioneering the use of polymer, steam and miscible
Editorial gas injection on a full-field scale.
Group Editor & Director - Business Operations
Mayank Singh
Deputy Editor More than 23 per cent of PDO’s production is expected to come from Enhanced
Oil Recovery (EOR) projects by 2025. PDO is continuing to identify novel EOR
Oommen John P
DESIGN technologies that have the potential to unlock difficult hydrocarbon resources and
Creative Director
Sandesh S. Rangnekar further reduce the technical costs of these developments. This is being done through a
Senior Designer series of dedicated laboratory and field testing programmes in collaboration with local
Aliya Saif AlWahaibi
Principal Photographer
and international institutions. Considerable focus has been placed on ensuring that PDO
Rajesh Rajan identifies technologies that will unlock the large difficult hydrocarbon resource base
Senior Production Manager - within Block 6. Other research initiatives target cost optimisation of the current and
Print & Digital future EOR developments.
Ramesh Govindraj
MARKETING
Meanwhile, Middle East oil demand growth is foreseen to be balanced for the
Assistant General Manager – Sales & Marketing
Avi Titus remainder of 2019, with some negative uncertainties, including geopolitical
Business Head
Shivkumar
concerns, substitution programmes with other fuels, as well as subsidy reduction
Advertising Managers policies. Improvements in the oil price environment should translate to a positive
Sanjeev Rana
Shaikh Ahmed Maqbul Basha
overall outcome for economic activities, hence lending some kind of support to oil
Girija Shankar Mohanty demand in 2019. Transportation fuels – gasoline and diesel fuel – are anticipated to
Asst. Manager - Business Support be the products leading oil demand growth.
Radha Kumar
CORPORATE
Chief Executive Officer
Atulya Sharma
Executive Vice President Enjoy reading the issue!
Alpana Roy
Distribution
United Media Services LLC
Published by
United Press & Publishing LLC
PO Box 3305, Ruwi, Postal Code - 112
Muscat, Sultanate of Oman
Tel: (968) 24700896, Fax: (968) 24707939
An Presentation
CONTENT
16
COVER STORY
5 In the news
30 Market Watch
2 July, 2019
OMAN NEWS
4 July, 2019
IN THE NEWS
6 July, 2019
PDO ANNOUNCES NEW
TRAINING-FOR-EMPLOYMENT
PARTNERSHIPS
working even harder in the future, both
on our own and in collaboration with
other organisations, to reach that goal.”
8 July, 2019
OXY OMAN SIGNS
CONTRACTS WITH
TWO FIRMS
As part of its in-country value (ICV) a new capacity where very limited local
strategy to support locally manufactured companies are currently delivering.
materials and maximise expenditure
on goods and services made in Oman, “As a newly established SME, this
Occidental Oman signed two new contract will help us seize the opportunity
contracts with LAMAD LLC and Oilfield to grow further with metering services in
Inspection Services (OIS). Oman. We highly appreciate the trust that
Occidental Oman placed on us and we
By virtue of these contracts, LAMAD hope to thrive together,” said Ibrahim al
will provide Occidental Oman with Mahrouqi, owner of LAMAD. a competitive Omani supply chain,”
metering services; while OIS will provide said Kelly. This event makes concrete
Occidental Oman with tubular inspection In addition, the contract with OIS, which the efforts exerted by Occidental Oman
and repair services. will provide tubular inspection and repair to contribute to the Government’s ICV
services, was signed as part of Occidental strategy.
The signing ceremony was held at Oman’s ICV initiative.
Occidental Oman’s headquarters in The signed contracts show Occidental
Muscat, under the auspices of HE Salim “We are excited by the opportunities this Oman endeavour to support economic
Nasser al Aufi, Undersecretary at the award will provide, and we feel confident development in the country under the
Ministry of Oil and Gas. Stephen Kelly, that together we will facilitate and serve umbrella of strategic partnerships and
the President and General Manager of industry demands. The award is also continuous collaboration with key
Occidental Oman; Ibrahim al Mahrouqi, a recognition of our determination to stakeholders.
owner of LAMAD; and Saif al Tobi, provide quality services of the highest
CEO of OIS; were signatories for their standard,” said Saif al Tobi, CEO of OIS.
respective organisations.
“The Occidental Oman ICV strategy
Abdulkarim al Ghassani, Vice- President aims to increase and improve the
for Supply Chain; and other senior sustainable development of Omani
executives of Occidental Oman were goods and services, both locally and
present at the ceremony. internationally.
The awarding of the contract to LAMAD, Occidental Oman looks to its In-Country
a newly established local Omani SME, Value Programme as a stepping stone
was based on the Vendor Development to increasing the diversification of the
Programme, which is an ICV initiative economy, as the programme reaffirms our
aimed to develop local companies into wide-ranging commitment in developing
IN THE NEWS
10 July, 2019
DALEEL PETROLEUM
WELCOMES SUMMER
INTERNS AND MARKS
WORLD ENVIRONMENT DAY
Daleel Petroleum welcomed the 2019 batch of 57 trainees to the Towards a Greener Future
annual Summer Internship programme. Students` training is part Daleel Petroleum annually marks the World Environment Day
of their academic curriculum which Daleel supports as part of its by raising awareness among employees through activities
commitment towards community. while joining the world in its efforts to make a difference. This
year, the theme was #BeatAirPollution. The United Nations
The internship experience is a golden opportunity for under promotes positive action against environmental issues. This
graduate students to apply their academic knowledge into dynamic is a call to all industries, companies, government as well as
work practices. individuals to join hands in making the world a better place for
the future generations.
Daleel offered 57 seats this year from various educational local
and international institutions as well as the IAESTE programme. Daleel Petroleum joined the worldwide efforts by organising
The students underwent an induction programme that covered all a workshop for its employees. A number of employees were
areas and disciplines of the oil & gas industry. engaged in a greening campaign to plant trees with the guidance
and expertise of the specialist who delivered the workshop. The
The interns are posted in different departments including both soil and other components used applied an eco-friendly approach.
locations; Daleel Head Office, the field and the rigs. Daleel
Petroleum extends support by providing a positive environment Additionally, a recycled pen with tomato seeds embedded in it
that would enrich interns learning experience and allow was distributed to employees to promote environmental – friendly
exchange of ideas that will ultimately lead to enhancement of behaviour at home. Daleel is committed towards its responsibility
their skills and knowledge. towards the environment.
OMAN NEWS
12 July, 2019
OMAN NEWS
Oman Shipping Company (OSC), a predicts that the three VLCC new builds the new orders will also meet future
member of the Asyad Group, has signed will increase company’s oil shipping environmental requirements – including
an agreement with South Korea’s revenues by 10 per cent. Long-term IMO 2020 standards – as well as benefit
Daewoo Shipbuilding & Marine contracts with international oil majors are from DSME’s market-leading efficient-
Engineering (DSME) to build three already in place for all the ships. design for new builds.
environmentally-friendly very large
crude carriers (VLCCs) as part of the “The announcement has been made Signing the agreement with DSME
company’s fleet renewal strategy. possible by OSC’s commitment to on behalf of OSC, Asyad Group chief
reinvest in additional growth - increasing executive officer Abdulrahman al Hatmi
Through its new assets, OSC will connectivity between Oman’s ports and said, “OSC’s capabilities and customer
enhance its competitive advantage and global ports in response to expanding offering are growing from strength
solidify its position as both a market customer demand and reinforcing the to strength in response to increasing
leader and as one of the top 12 VLCC sultanate’s logistic competitiveness,” the demand. OSC’s fleet renewal programme
operators worldwide. The new orders will company said. reflects the company’s commitment to
provide customers with additional high- high-quality services, enhanced global
quality, economical and technologically- Each of the new vessels will be 336m connectivity and industry-leading
advanced vessels, the company said in a long and 60m wide and will be able to competitiveness.”
press statement. Once operational, OSC hold 300,000 tonnes of cargo. All of
Brilliant Performance
Deserves a Star-Rating
MANAGED BY
ME
ﺑـــﺰﻧــــﺲ ﻻﻳــــﭫ ﻣﻲ
UNLOCKING THE
POTENTIAL
16 July, 2019
More than 23 per cent of Petroleum target to achieve up to a 50% recovery has been observed as the depletion rate
Development Oman’s production is from infill horizontal drilling and slows down. The thermal gas-oil-gravity-
expected to come from Enhanced Oil additional gas injection. drainage (T-GOGD) process in Qarn-
Recovery (EOR) projects by 2025. Alam has been underway since late 2011.
PDO is currently operating a range of The Harweel 2AB project (Zalzala field) Up to 2018, 266 million tonnes of steam
commercial-scale EOR projects including started miscible gas injection (MGI) in were injected into the Shuaiba oil-bearing
chemical EOR, miscible gas injection earnest in April 2014 at a constrained formation, producing 83 million barrels
(MGI) and thermal applications. rate of up to 1.7 million cubic metres of oil and resulting in a steam-to-oil ratio
per day and ramped up to a full-capacity of approximately three. Project record
The Marmul Polymer phase 1 and phase injection rate of up to 4.5 million m³/d levels of steam injection were achieved
2 projects were commissioned in 2010 since January 2015 after separator with peak rates exceeding 17,000
and 2015 respectively with a total oil replacements. To date, 3.81 billion tonnes per day. The Amal steam project
contribution of 17.7 million barrels m³ of gas have been injected. A clear continues to improve in all areas, and the
of oil to date. The average combined response to the MGI process has been year-average oil production for 2018 was
production gain from both phases in established in terms of incremental oil 10,611 bpd. There was a continued strong
2018 was 6,500 bpd, an increase of rates (incremental oil to date of around steam injection performance with 2018
13%. Work is continuing on the third 14.1 million barrels (2.24 million m³), representing the highest annual average
phase to further improve on execution and target pressures above the minimum injection rate of around 7,854 tonnes per
readiness. The project will develop 61 miscibility pressure across the field. The day. There was improved availability of
million barrels of incremental oil, with expected total recovery with MGI is heat recovery steam generators in Amal
first oil by Q1 2023, according to PDO’s about 50%. West and more once-through steam
Sustainability Report for 2018. generators in Amal East, and a thermal
Injection in Sakhiya field as part of response has now been demonstrated
Gas injection in the Birba field has been the Sakhiya mini-flood project has in both fields. Reservoir performance
ongoing for the past 24 years, and has continued since mid-2015 with high continues to improve with good cold and
yielded an additional 45.7 million barrels injectivity of up to 2.1 million m³/d thermal performance. So far, 231 wells
of oil with a total field recovery factor of from three injectors. To date, 1.47 have been drilled in the Amal West 3.3
21%. To-date, 5.95 billion cubic metres billion m³ of gas have been injected and acre infill project.
of gas have been injected and we are on a positive reservoir pressure response
COVER STORY
18 July, 2019
MANUFACTURING
SMELTER OF
THE FUTURE
True to its reputation as a technology and innovation-driven
company, Sohar Aluminium is harnessing the transformational
potential of the 4th Industrial Revolution in its quest to
position itself as the ‘Smelter of the Future.’ An OGR Report
.
.
. 20 July, 2019
Sohar Aluminium is on the cusp of yet to evaluate new technologies and physical objects that can communicate
another exciting, if momentous, leap into innovations as they materialise. This is with each other. “In our case, we use
the future, this time around aided by a a continuous journey of improvement the Industrial IoT, which connects all
raft of emerging technologies that form which we don’t foresee an end to,” of our systems with the enterprise,”
part of the 4th Industrial Revolution. explained Abdullah Al Maamari, IT said Ibrahim AL Maawali, Automation
From Mobile Connectivity, Artificial Manager. Superintendent “Thus, all of the data
Intelligence and Big Data to Robotics, from the shop floor, production units, and
Internet of Things (IoT) and Machine Indeed, automation – a key facet of so on, is captured on our dashboards in
Learning, Industry 4.0 has the potential Industry 4.0’s suite of breakthrough real time. Right now, we are evaluating
to accelerate the digital transformation technologies has long been the hallmark various IoT solutions that add value to
under way at Sohar Aluminium. of Sohar Aluminium’s investment in a our business.”
modern smelter. Advanced automation
DAUNTING MISSION technologies are a defining characteristic Equally promising is the deployment of
Notwithstanding the universal of the company’s operations. Similarly, Machine Learning (ML) and Artificial
buzz surrounding the 4th Industrial robotics is an integral part of the Intelligence (AI) solutions to improve
Revolution, the IT and Automation Team company’s Casthouse operations, process control at Sohar Aluminium.
at Sohar Aluminium is little fazed by eliminating any potential for human With a combination of ML and AI, the IT
the daunting task ahead of them. After interaction with unsafe material and Automation team sees the potential
all, keeping Sohar Aluminium on the handling, thereby reducing the risk of to automatically record, network and
cutting-edge of smelting technology and injury to its operators. Robotic cranes use numerous machine and system
operational excellence has been their assist in the stacking of the refined metal parameters that can be harnessed to plan
overarching goal from the outset of the bundles and applying labels to them. downtimes, increase productivity, and
company’s launch a decade ago. drive quality.
A potential game-changer for Sohar
“Sohar Aluminium has embraced some Aluminium is the Internet of Things Not surprisingly, some elements of
elements of Industry 4.0 ever since (IoT) – an ecosystem of connected Machine Learning are already part of
we came on stream and we continue machines, equipment, devices and Sohar Aluminium’s processes – the result
MANUFACTURING
22 July, 2019
SUSTAINABLE GROWTH
“We are now at a very exciting phase where we transition from ensuring stable operations
towards growth and sustainability. This is all due to the trust that our stakeholders have
put in us, and the trust we have in our people. We have set our new strategic goals
taking a quantum leap towards what we aspire to be, an international market leader in
Aluminium smelting,” says Said Mohammed Al Masoudi, CEO, Sohar Aluminium.
“The use of renewable energy is a big focus for us as we evaluate the possibilities in the
region and integrating it in our business model where pertinent. Our future plans majorly
focus on exploring the possibilities of introducing value added products and increasing
Said Mohammed Al Masoudi our customer base to bring more value to our shareholders and to the community at
large. Of equal importance are our people development and empowerment. Many of
our endeavours are invested in developing the technical skills of our current and future employees through ties with the
academic field and our own training institute. We hope thereby to continue improving our performance and increase our
productivity aiming for long-term sustainability and positively contributing to the national economy.”
Industry 4.0 promises to unleash a wide The adoption of Industry 4.0 tools journey in our quest for business and
range of game-changing benefits for began in earnest last year with members operational excellence. Besides, as some
Sohar Aluminium, says Paul. “Sohar of the Core IT Team evaluating the of these technologies represent expensive
Aluminium believes that Industry applicability of these technologies and investments, we need to suitably evaluate
4.0 helps in improving productivity, their deployment in key departments them to ensure there are returns for the
efficiency, safety, resource utilisation, within the organisation. At the same company.”
increasing machines uptime and reducing time, the IT team has begun to engage
breakdowns by using smart sensors with vendors of 4.0 technologies and Mindful that the roll-out of Industry 4.0
and such technologies. Also, it enables solutions with a view to ascertaining is no small feat, Sohar Aluminium has
self-diagnosis, reducing turnover time, their efficacy within Sohar Aluminium. embarked on a plant-wide awareness
preventing breakdowns, reducing the Furthermore, as talented professionals in programme designed to ensure that the
human intervention which will reduce their own right, members of the IT and company’s sizable technical staff are
human errors.” Automation Team have come up with fully on board in the delivery of this
their own in-house solutions as cost- ambitious project. At the same time,
Abdullah, Ibrahim and Paul are part of effective alternatives to vendor-promoted the company is also engaging with key
a core team of subject experts drawn offerings. stakeholders and local communities
from the company’s IT and Automation on the importance of this initiative
Department with the mandate to As for a timeline to have Industry 4.0 in ensuring the safe, successful
make Industry 4.0 a reality within technologies up and running within and sustainable operation of Sohar
Sohar Aluminium. “We are a young, Sohar Aluminium, there is none! Aluminium well into the future.
dynamic group of professionals with Abdullah explained: “Technologies,
the requisite skillsets to unlock the by their very nature, keep evolving. Sohar Aluminium was formed in
potential of the 4th Industrial Revolution Before Industry 4.0, there were three September 2004 to undertake a landmark
for the benefit of our operations. Our different waves that also evolved over Greenfield aluminium smelter project in
management, recognising the immense decades. Our responsibility is to look the Sultanate of Oman. Inaugurated in
potential of Industry 4.0, is eager for the at technologies and trends, as and when 2009, Sohar Aluminium is jointly owned
comprehensive roll-out of these solutions they come on the market, that will help by Oman Oil Company S.A.O.C., Abu
across all facets of our operations and us enhance our productivity, cost- Dhabi National Energy Company PJSC
indeed the wider value chain.” efficiency and competitiveness. Industry (TAQA) and Rio Tinto.
4.0 is just another leg on this continuous
PORTS AND LOGISTICS
ROBUST
PERFORMANCE
26 July, 2019
• Oman Drydock Company reached all working together to add new
an organisation first, servicing 19 capabilities across the value chain.
ships in one day
• 52 million sqm Khazaen Oman Rail, a subsidiary of Asyad
Economic City open for business Group said that it was keen to
with first international tenants deliver the Mineral Line project,
a representative of Oman Rail
• 95% on-time deliveries from
said. But it depends on a number
Oman Post and 85% positive
of factors including the local
customer feedback
economic environment. “We
• Projected 50% year on year are looking at Public-Private-
growth in number of passengers Partnership (PPP) model for the
by Mwasalat. Achieved a historic implementation of the project.
43000 riders in a single day.
• National Ferries Company (NRC) Another priority for us is the
cost reductions of half a million digitisation of all services and the
rials annually over the last five adoption of new technologies such
years while reaching 81 per cent as Big Data AI, IoT and blockchain
Omanisation across the company. into our operations – ensuring that
• Net profit is the highest to date ASYAD offers one of the most
and forecasts sustained growth in competitive, advanced, efficient and
net profit beating 2018 actuals and technologically-integrated logistics
2019 plans. solutions worldwide. Central to all
our achievements and plans are our
• Creates $100 million sustainable
employees, which is why we are
efficiency improvements in its
Abdulrahman Al-Hatmi
implementing Group-wide initiatives
operations
aimed at developing talent across
• Outlines H2 plans for further
ASYAD - with an initial focus on high-
integration, expanded cargo
potential (HiPo) employees.
connectivity, growth through
digital transformation and
Attacks on fuel tankers in the Gulf
development of future leaders
of Oman has not had an impact on
across the Group.
the operations of Oman Shipping
& stakeholders from across the Group. • The group plans to carry 1m TEUs Company, a representative of OSC
The regular event aims to build by 2023 through its shipping line. informed. Mark Geilenkirchen, CEO
alignments and synergy through all the • All the ports have ambitious of Port of Sohar, informed that there
operating companies that are part of expansion plans was no impact on vessel movement
the ASYAD Group. in and out of Port of Sohar. “I hope it
Looking forward to H2 2019, Al Hatmi continues to remain calm.”
Among the key highlights announced told participants, “Our strength as a
at the Majilis included: Group, which includes over a dozen However, National Ferries Company,
subsidiaries operating across the which offers high speed ferry services
• Group ports are forecast to see a maritime, port, shipping, transportation between numerous destinations along
27% growth in bulk volumes and and logistics sectors, comes from our the Omani coast, said its financials
14% growth in container volumes integration - sharing in each others’ have been impacted due to the ongoing
in 2019 progress to secure ASYAD and tensions. “We have seen a 36 per cent
• 2019 FDI investment in the Sohar the Sultanate’s position as a global variation in insurance premiums since
and Salalah free zones has reached logistics leader. The upcoming rollout the tanker attacks in Gulf of Oman.
$500 million this year, already of our Hub Project, connecting freight This has impacted our financials.”
surpassing the total amount from ship to last-mile shipment,
invested in 2018 is a great example of how we are
CEO SPEAK
MAKING A
DIFFERENCE
Speaking at The Times CEO Summit in
London, UK, Ben van Beurden, CEO of
Shell, speaks about the need for supply
and demand to work in harmony if the
world is to tackle climate change
The energy transition to a lower-carbon about the UN Secretary General’s
future is under way. Shell probably climate initiative, due to report in
feels that dynamic more than most. September. It is striking in the way it is
Maybe that is why it is me asking for focused on getting business to step up
It is said only two things can stop a help, even though I can see the way their decarbonisation ambitions.
person from asking for help. An excess ahead has diversions and roadblocks
of pride. Or an excess of humility. I that need to be navigated. But all this will not be enough without
am here to ask for your help. And I some serious commitments to action.
wish I could say that it was an excess But my business, and your business,
of humility that has delayed this must find ways to thrive in this energy NET ZERO EMISSIONS
request. In some ways I am not going transition. And making sure our The whole world must stop adding to
to ask for anything new. Some of your businesses are in harmony with the the stock of greenhouse gases in the
companies already help us, as we help Paris Agreement is the best way of atmosphere. It must reach net zero
them. By working together. Finding doing that. It is an essential investment. emissions. Some say by 2070, others
ways forward that work for both sides. So I am asking for your help to establish 2050. Some countries can go faster
Creating something greater than the a form of action. Action that businesses than others, and Shell has supported a
sum of our parts. can take. A difference we can make. letter calling for the UK to reach net
zero emissions by 2050.
AMBITION As I say, this would be a significant
But what I am going to ask for is expansion of work already being done. But whichever timeframe you pick,
a deepening of that approach. An I believe getting to net zero requires
expansion. An entirely different level The Oil and Gas Climate Initiative, unprecedented, coordinated action
of ambition. Because I do not believe a group of oil and gas companies across each sector. Of course, climate
the world is moving fast enough to dedicated to Paris, does great change is, in large part, about the way
tackle climate change. But I do believe work enabling practical action on energy is used. The use of energy
that action taken by business, working climate change. products, like oil and gas and coal –
together, has the potential to change for power, heating, cooling, industry,
that. And I truly believe acting now is The Energy Transitions Commission transport – causes the majority of the
in our interests, as business people. as well. And some of you will know world’s greenhouse gas emissions. So
28 July, 2019
changing the mix of energy products can be used to track progress of consistent with Paris. And it means
in the energy system is essential to companies and energy-use sectors Shell will, over time, radically change
address climate change. But making across the entire global economy. our portfolio.
that shift is not just a question of
supply but of demand too. Realistically, this will have to start On the demand side there are other
with a handful of big players in any questions. What fuels can be used.
A large part of demand comes down given sector joining with energy How efficiently they are used. In
to individual consumer choices. And it companies... with the determination to powering transport for example. A
is here that governments have a huge act towards net zero in that sector and hydrogen fuel dispenser, obviously,
role. Regulation. Consumer signals, establishing a pathway to reaching it. needs hydrogen-powered vehicles. And
like well-designed, well-balanced Whatever the pathway, there are three how light is the vehicle? How efficient
taxes. Incentives, like electric car ways to make progress along it. the motor?
grants. Government-led carbon-pricing
mechanisms to encourage low-carbon First, improve energy efficiency. OPPORTUNITY
choices. But governments need help. Second, turn to lower-carbon energy And this is where I see an opportunity.
Paris needs help. products. Third, offset or store away Because I am certain that, by working
emissions that cannot be avoided. How together, these are areas where
TOGETHER these would be balanced and combined business can make a big difference.
That is why I believe companies would be different for each sector, and Does that mean it will be easy? No.
that supply energy, like Shell, must all sectors would need all three. State-owned enterprises, embedded
work with the sectors that use energy. practices, the need to allow countries
We must work together, supply and CHOICE to develop as others already have.
demand, to progressively decarbonise But that is not the end of the story. There will be many challenges.
the energy use sectors. And, because There is a fourth way forward – and
time is so short. I believe we will also I have touched on it already, when COALITION
need to learn by doing. Act and refine. I mentioned consumer choice. The I am not standing here offering the
world must address consumption answers, but with the desire to work
The process would have to start with patterns. From consumers who choose with others – with you – to try to find
the major businesses within specific to eat strawberries through the winter. those answers. I know this can only
energy-use sectors coming together with To industries where the default could succeed if Shell is one small part of
the energy industry. Coming together be recycling products, not making a global climate coalition. But I also
to work out how each sector needs to from scratch. And governments know that the world must achieve the
change to be fully in line with Paris. which embed decades of high-carbon goal of the Paris Agreement. And if
consumption through decisions made energy providers and energy users,
Each sector is different, and some on housing, transport and power. supply and demand, do not take co-
are highly fragmented, so the action ordinated action, time will run out.
needed will vary. An office-based An energy company cannot set Climate change will overtake us.
industry like accounting can largely consumption patterns on a national
decarbonise by switching to a or global scale. It simply cannot. It So I hope you feel able to help build
renewable electricity supply, but that can only try to help make the carbon this climate coalition. I hope you will
is not an answer for steel or cement. intensity of that consumption as low contribute to working out how this
Textiles can move more quickly than as possible. might succeed in your sector. I hope
chemicals. Electronics is one case, we can, together, help establish real
heavy freight another. A company like Shell, on the supply progress – rapid progress. I stand
side, can help by selling a mix of here today asking for your help. Not
But all energy-use sectors need to energy products with a lower carbon with pride. Not with humility. But
be clear. They must get to net zero intensity, such as renewable power or in the knowledge that it is needed.
emissions. Every part must act hydrogen. Shell has an ambition to Because we have no alternative but
to progressively lower its carbon cut the carbon intensity of the energy action. No time but now. No plan
intensity until it hits zero. And this products we sell by around 50% but Paris. Let’s find a way, together,
single carbon intensity measure by 2050. This is a rate of reduction starting today.
MARKET WATCH
SUSTAINABLE
GROWTH
Middle East oil demand growth is foreseen to be balanced
for the remainder of 2019, with some negative uncertainties,
including geopolitical concerns, substitution programmes
with other fuels, as well as subsidy reduction policies.
Improvements in the oil price environment should translate
to a positive overall outcome for economic activities, hence
lending some kind of support to oil demand in 2019, according
to OPEC Monthly Oil Market Report-June 2019
30 July, 2019
WORLD OIL SUPPLY their perspective crude oil benchmarks,
Non-OPEC oil supply in 2019 is while firm official selling prices and
expected to grow at a pace of 2.14 crude oil differentials limited losses.
mb/d, y-o-y, following a robust
increase of 2.91 mb/d in 2018. The Crude oil futures prices ended May
2019 non-OPEC supply assessment is at their lowest levels since February,
unchanged from last month, despite with ICE Brent falling by more
some downward revisions for the US, than $7, or about 12%, during the
due to lower-than-expected output in month, and NYMEX WTI posted
1Q19, and for Norway and Brazil due about a $10, or 19% slide. Oil
to lower-than-expected production in prices registered higher volatility,
3Q19 and 4Q19. These revisions are particularly in late May, fuelled by
offset by upward revisions to China, uncertainty about the world economy
and the UK. The US is projected to and the impact on global oil demand.
remain the main driver for non-OPEC
supply growth in 2019 adding 1.83 Oil futures declined severely on
mb/d y-o-y, followed by Brazil, Russia, signs of slowing economic growth
China, Australia and the UK. and growing concerns about the
global economic and oil demand
At the same time Mexico, Norway, outlook amid intensifying trade
Kazakhstan, Indonesia and Vietnam are tensions between the US and China.
projected to see the largest declines. In May, ICE Brent declined on
average $1.33, or 1.9%, m-o-m to
OPEC NGLs and non-conventional $70.30/b, while NYMEX WTI fell
liquids y-o-y are expected to grow m-o-m by $3.01, or 4.7%, to average
by 0.08 mb/d to average 4.84 mb/d $60.87/b. On an annual average,
in 2019, following growth of 0.13 ICE Brent was $3.47, or 4.9%, y-o-y
mb/d in 2018. In May 2019, OPEC lower at $66.75/b, while NYMEX
crude oil production is estimated to WTI declined by $7.11, or 10.9%,
have decreased by 236 tb/d, m-o-m y-o-y to $57.97/b. DME Oman crude
to average 29.88 mb/d, according to oil futures also declined m-o-m
secondary sources. by $1.35 in May, or 1.9% over the
previous month, to settle at $69.85/b.
CRUDE OIL PRICE On a yearly average, DME Oman
MOVEMENTS was down by 83¢, or 1.2%, y-o-y at
On a monthly average, the OPEC $66.52/b.
Reference Basket (ORB) eased in May
despite several planned and unplanned Hedge funds and other money
supply outages. The Brent and Dubai managers saw their bullish positions
price spreads, first-to-third month, decline in May, after posting four
widened further, mirroring a tightening consecutive months of increases.
physical market and concerns about the
supply outlook. Speculators liquidated long positions
over the month, particularly for the
On a monthly average, the ORB value US crude NYMEX WTI, and raised
decreased m-o-m by 81¢, or 1.1%, to their bearish short positions on the
settle at $69.97/b in May. Apart from basis of concerns about the world
Angolan Girasol, Venezuelan Merey economy, the global oil demand
and Algerian Saharan Blend, all ORB outlook, escalating trade tensions and
component values decreased alongside rising US crude oil stocks.
MARKET WATCH
The Brent and Dubai price structure growing concerns about the global or 4.7%, to average $60.87/b. On an
moved deeper into backwardation in economic and oil demand outlook annual average, ICE Brent fell $3.47,
May, despite a sharp decline in oil amid intensifying trade tensions or 4.9%, to $66.75/b, while NYMEX
prices, as prompt-month prices were between the US and China, after the WTI declined by $7.11, or 10.9%,
supported by healthy physical crude move to impose additional tariffs, y-o-y to $57.97/b.
oil demand and supply disruptions in which triggered steep declines in
several countries. The possibility of equity markets. Weakening refining DME Oman crude oil futures also
more disruptions in oil supply added margins, a subdued performance by oil declined m-o-m by $1.35 in May, or
support to prompt prices. However, products, consecutive weeks of rising 1.9% over the previous month, to settle
the WTI price structure remained in US crude oil inventories, and sustained at $69.85/b. On a yearly average, DME
contango as sustained US oil supply at historically high levels of US oil Oman was down by $0.83, or 1.2%,
high levels kept the US crude market supply also weighed on prices. y-o-y at $66.52/b.
well supplied, while US crude stocks
continued to increase. Oil prices declined further in late On June 12, ICE Brent stood at
May, along with equity markets and $59.97/b and NYMEX WTI at
Apart from European grades, the other commodity prices, after the US $51.14/b.
global premium of light sweet-to- President announced plans to impose
medium sour crudes widened further in tariffs on imports from Mexico, which
May, despite a tight sour crude market. amplified worries and uncertainty to MIDDLE EAST
Brent/Urals spread narrowed slightly the markets, pushing equity indexes
due to Urals supply disruptions. and commodity prices sharply lower. SAUDI ARABIA
In Saudi Arabia, the first four months
THE OIL FUTURES This all dampened the impact of of 2019 indicated flat oil demand
MARKET several planned and unplanned growth as declines registered in
Crude oil futures prices ended May supply outages that were reflected March and April oil demand data
sharply lower and reached their lowest in the widening backwardation counterbalanced positive growth
levels since February, with ICE Brent structure in Brent and Dubai, as well exhibited during the first two months
falling by more than $7, or about 12%, as heightened geopolitical tensions of the year. April oil demand figures
during the month, and NYMEX WTI in several regions. Nonetheless, indicated a decline in oil requirements
posted about a $10, or 19% slide. Oil high conformity levels with the of 0.03 mb/d or 2% y-o-y.
prices registered higher volatility, voluntary production adjustments
particularly in late May, fueled by of the Declaration of Cooperation Crude oil used for the purposes of
uncertainty about the world economy continued to support the market. burning in the power generation
and the impact on global oil demand. sector, gasoline and diesel fuel all
In May, ICE Brent declined $1.33, recorded negative performance, despite
Oil futures declined severely on signs or 1.9%, m-o-m to $70.30/b, while improving fuel oil demand during the
of slowing economic growth and NYMEX WTI fell m-o-m by $3.01, month of April. Crude oil for direct use
32 July, 2019
MIDDLE EAST OIL DEMAND, Y-O-Y CHANGE SAUDI ARABIA’S DIRECT CRUDE BURNING,
Y-O-Y CHANGE
change y y change
tb/d tb/d tb/d
600 600 150
Apr
Aug
Sep
Oct
Nov
Dec
Mar
May
Jan
Jun
Jul
-250
Mar 19
Feb 19
Aug 18
Sep 18
Nov 18
Dec 18
Oct 18
Apr 18
May 18
Apr 19
Jun 18
Jul 18
Jan 19
Historical range Historical average
2018 2019
Sources: Joint Organisations Data Initiative, Sources: Joint Organisations Data Initiative,
direct communication and OPEC Secretariat. direct communication and OPEC Secretariat.
in power generation eased by as much cumulatively negatively influencing fuels, as well as subsidy reduction
as 0.11 mb/d in light of substitution product performance. policies.
by fuel oil and natural gas. On the
other hand, fuel oil demand recorded IRAQ On the other hand, improvements
gains of 0.15 mb/d due to higher- In Iraq, the positive momentum in in the oil price environment should
than-anticipated demand for power oil demand performance during the translate to a positive overall outcome
generation, as well as substitution first three months of 2019 flipped into for economic activities, hence lending
with crude for burning. Total crude oil negative territory, with oil demand some kind of support to oil demand in
demand for the purpose of burning was dipping by 0.10 mb/d y-o-y during the 2019. Transportation fuels – gasoline
at 0.28 mb/d in April, while total fuel month of April. and diesel fuel – are anticipated to
oil demand was at 0.45 mb/d during be the products leading oil demand
the same month. The decline was primarily linked to growth.
slower performance from heavy fuels,
Diesel fuel continued its downward mainly direct crude oil for power In 2018, Middle East oil demand
trend, which started in 1Q16, as generation and fuel oil. Conversely, declined by 0.08 tb/d, while oil
government infrastructure project light and middle distillate products demand in 2019 is projected to
activities showed signs of slowing recorded some gains. Substitution increase by 0.03 mb/d.
down. Cement deliveries during the by natural gas is apparently the main
month of April dropped by more than cause of declines in power generation
9% y-o-y, an indication of slower fuels during April.
construction activity in the country.
Diesel fuel requirements shed some TOTAL PRODUCT
0.03 mb/d or around 5% y-o-y. DEMAND IN APRIL
REACHED 0.64 MB/D.
Total diesel fuel demand is now at Looking forward, Middle East oil
0.52 mb/d. Transportation fuels in demand growth is foreseen to be
general were also declining, with balanced for the remainder of 2019,
gasoline dropping by around 7% y-o-y. with some negative uncertainties,
A reduction in subsidies and general including geopolitical concerns,
slowdown in consumer spending are substitution programmes with other
AUTO PAGE
POWERFUL
AND ELEGANT
Ferrari’s first plug-in hybrid supercar – the SF90 Stradale is
also the first Ferrari sports car to be equipped with 4WD
Ferrari has introduced a new chapter in in terms of performance. The reference (Motor Generator Unit, Kinetic) due
its history with the introduction of its first to the 90th anniversary of the foundation to its derivation from the Formula
series production PHEV (Plug-in Hybrid of Scuderia Ferrari underscores the 1 application, located between the
Electric Vehicle), the SF90 Stradale. strong link that has always existed engine and the new 8-speed dual-clutch
between Ferrari’s track and road cars. transmission on the rear axle, and two on
The new model is extreme on every A brilliant encapsulation of the most the front axle. This sophisticated system
level and represents a true paradigm advanced technologies developed in does not, however, make for a more
shift, because it delivers unprecedented Maranello, the SF90 Stradale is also the complicated driving experience. Quite
performance for a production car. perfect demonstration of how Ferrari the opposite, in fact: the driver simply
Figures such as 1,000 cv, and a weight- immediately transitions the knowledge has to select one of the four power unit
to-power ratio of 1.57 kg/cv, and 390 and skills it acquires in competition to its modes, and then just concentrate on
kg of downforce at 250 km/h not only production cars. driving. The sophisticated control logic
put the SF90 Stradale at the top of its takes care of the rest, managing the flow
segment, but also mean that a V8 is the The SF90 Stradale has a 90° V8 turbo of power between the V8, the electric
top-of-the-range model for the first time engine capable of delivering 780 cv, the motors and the batteries.
the marque’s history. highest power output of any 8-cylinder
in Ferrari history. The remaining 220 The SF90 Stradale is also the first
The car’s name encapsulates the true cv is delivered by three electric motors, Ferrari sports car to be equipped with
significance of all that has been achieved one at the rear, known as the MGUK 4WD, a step necessary to allow the
34 July, 2019
incredible power unleashed by the hybrid INTERNAL COMBUSTION redesigning the exhaust system and the
powertrain to be fully exploited, ensuring ENGINE result is fuller, richer harmonics across
the car has become the new benchmark Thanks to its 780-cv power output, the the entire frequency range.
for standing starts: 0-100km/h in 2.5 sec turbo V8 featured in the SF90 Stradale
and 0-200km/h in barely 6.7 seconds. raises the bar for the performance limits 7 YEARS MAINTENANCE
achievable by this type of architecture. Ferrari’s unparalleled quality standards
Ferrari’s engineers were able to further The starting point was the F154 family and increasing focus on client service
broaden the spectrum of dynamic engine which has won the International underpin the extended seven-year
controls by introducing the full-electric Engine of the Year award for the fourth maintenance programme offered with
front axle, known as the RAC-e consecutive year, an unprecedented the SF90 Stradale. Available across the
(electronic cornering set-up regulator). achievement for any power unit. entire Ferrari range, the programme
As well as exclusively providing covers all regular maintenance for the
propulsion in electric drive, the two front Together with its 195 cv/l specific first seven years of the car’s life. This
motors independently control the torque power output, which is the highest in scheduled maintenance is an exclusive
delivered to the two wheels, extending the segment, the engine also delivers service that allows clients the certainty
the concept of Torque Vectoring. 800 Nm of torque at 6,000 rpm. To that their car is being kept at peak
Fully integrated into the car’s vehicle deliver this extraordinary result, Ferrari’s performance and safety over the years.
dynamics controls, the RAC-e governs engineers focused on several different This very special service is also available
the distribution of torque, making driving areas of the engine, starting by increasing to owners buying pre-owned Ferraris.
on the limit much simpler and easier. its capacity from 3,902 cc to 3,990 cc
thanks to a larger bore of 88 mm. Regular maintenance (at intervals of
Another major innovation is the steering either 20,000 km or once a year with
wheel which now has a touchpad and The intake and exhaust system was no mileage restrictions), original spares
a series of haptic buttons that allow completely redesigned and now features and meticulous checks by staff trained
the driver to control virtually every a new, narrower cylinder head with a directly at the Ferrari Training Centre
aspect of the car using just their thumbs. central injector and the adoption of 350- in Maranello using the most modern
The central instrument cluster is now bar GDI, another first for a Ferrari V8. diagnostic tools are just some of the
entirely digital with the first automotive advantages of the Genuine Maintenance
application of a 16” curved HD screen To improve the internal fluid dynamics, Programme. The service is available
which can be fully configured and not only was a larger diameter intake on all markets worldwide and from all
controlled using the controls on the valve adopted but the ducts are all Dealerships in the Official Dealership
steering wheel. horizontally lined up at engine head Network.
height; the turbo charger assembly has
POWERTRAIN been lowered while the exhaust line is The Genuine Maintenance programme
The SF90 Stradale is the first ever higher, as testified by the fact that the further extends the range of after-
Ferrari to feature PHEV (Plug-in Hybrid tail pipes are now in the upper section sales services offered by Ferrari to
Electric Vehicle) architecture which sees of the rear bumper. The turbos are now satisfy clients wishing to preserve the
the internal combustion engine integrated equipped with electronically-controlled performance and excellence that are
with three electric motors, two of which wastegates to improve catalyser heating the signatures of all cars built at the
are independent and located on the front and new compressor volutes to optimise factory in Maranello which has always
axle, with the third at the rear between fluid-dynamics. been synonymous with leading-edge
the engine and the gearbox. technology and sportiness.
The re-engineering goes well beyond
The internal combustion engine and fluid-dynamics: the rationalisation of the
the electric motors work in synergy layout has resulted in both a lower centre
to unleash an incredible 1,000 cv of gravity, thanks in part to the adoption
which means the SF90 Stradale sets a of a smaller-diameter fly wheel, and a
whole new benchmark in terms of its reduction in overall weight thanks to the
performance and innovative content not use of Inconel instead of steel for the
just with regard to the Ferrari range, but exhaust manifold. Meticulous attention
also its competitors. was lavished on sound quality when
HEALTH
SULTANATE TO HOST
AHWP ANNUAL MEET
FROM NOVEMBER 11
The Sultanate will host the 24th Asian The organising committee comprises
Harmonisation Working Party (AHWP) among others Ali M. Al Dalaan, Vice
annual meeting accompanied by a President – Medical Device Sector
Medical Device Exhibition at Grand of Saudi Food and Drug Authority as
Millennium Hotel, in Muscat from AHWP Chair, Mohammed Al Rubaie,
November 11 to 14. DGPA & DC, Ministry of Health- Oman,
Dr Mohammed Al Rubaie Faiza Al Zadjali Faiza Al Zadjali, DGPA & DC, Ministry
Organised by the Ministry of Health of Health-Oman and Gao Guobiao,
(MOH), represented by the Directorate- working groups covering Pre-marketing AHWP Vice Chair.
General of Pharmaceutical Affairs and of General Medical devices, In Vitro
Drug Control (PADC), around 250- Diagnostics and Software as a Medical The Asian Harmonisation Working
300 participants including regulators Device, Post-Market, Clinical Evidence Party (AHWP) was established as a
from more than 30 countries along for Performance and Safety, Quality non-profit organisation in 1996. Its goals
with representatives from IMDRF Management System: Audit, Assessment, are to study and recommend ways to
(International Medical Device Operation & Implementation, Medical harmonise medical device regulations in
Regulators Forum), ISO (International Device Standards, Unique Device the Asian and other regions and to work
Standards Organisation), APEC (Asia Identification and Nomenclature.” in coordination with the International
Pacific Economic Cooperation), World Medical Device Regulators Forum (
Health Organisation, APACmed (Asia The objective of the event is to ensure IMDRF) and other related international
Pacific Medical Technology Association) the advancement of global healthcare, organisations aiming at establishing
and others are expected to attend the creating a link between the leaders harmonised requirements, procedures
event. More than 60 expert speakers will and players of the healthcare industry, and standards. The Working Party is a
be addressing the meeting that will have building capacity of both regulators and group of experts from the medical device
a full day of capacity building sessions. industry to foster innovative regulatory regulatory authorities and the medical
solutions for medical technology device industry. Membership is open to
According to Dr Mohammed Al Rubaie, advancements, besides providing those representatives from the Asian and
Director General of Pharmaceutical an in-depth knowledge on the latest other regions that support the above stated
Affairs and Drug Control at the Ministry medical innovations. The event will goals. AHWP has more than 30 member
of Health, the meeting, which will be also provide a platform to share the economies including Brunei Darussalam,
attended by health experts will raise latest in the medical device regulations, Cambodia, Chile, Chinese Taipei, Hong
the awareness level among health discuss current issues in the medical Kong SAR, China, India, Indonesia,
staff on the importance of monitoring device sector and promote international Jordan, Kazakhstan, Bahrain, Saudi
the problems associated with the harmonisation and convergence and Arabia, Korea, Laos, Malaysia, Mongolia,
usage of medical devices, supplies promote research into quality and Myanmar, Pakistan, Philippines, Kenya,
and products. It will shed the light on safety improvement and networking Singapore, South Africa, Kuwait,
the latest developments on medical opportunity amongst leaders and key Sultanate of Oman, Tanzania, Thailand,
device guidance documents through the stakeholders of the healthcare industry. United Arab Emirates, Vietnam, Yemen
updates from the AHWP 9 Technical and Zimbabwe.
BADR AL SAMAA NIZWA
UPGRADED TO ADVANCED
MULTI-SPECIALITY HOSPITAL
clinics. To mark the occasion, Badr Al
Samaa Hospital, Nizwa offered free
consultations from June 26 to 28, 2019
in all specialties, while consultations in
Cardiology, Urology and Dermatology
were available until July 2. The
expanded facilities include state of the
art imaging equipments and services
with provision for cardiac care, all major
and minor surgeries. Two state-of-the-
art renovated operation theatres have
been launched, equipped to handle
all kinds of General, Orthopaedic,
Board of Directors of Badr Al Samaa Group, Dr. V T Vinod, Abdul Latheef and Dr. P A Mohammed with dignitaries at
Urological, Neurological, Gynaec, ENT
the launch of the advanced multi-specialty Hospital in Nizwa. and Ophthalmic cases. In addition,
Labour Suite, CCU, MICU, Neonatal
Badr Al Samaa has launched its largest private healthcare group from a Intensive Care Unit (NICU) are also
advanced multi-specialty Hospital in single polyclinic when I took over as DG- available. The hospital has the first of
Nizwa. This hospital holds the record of PHE. Their quality has reached superior its kind Lasotronix Laser System for the
being the first and only hospital currently levels, JCI accreditation of two of their treatment of proctology and varicose
in the private healthcare sector in Al hospitals is the testimony to this fact.” veins. Plans are on the anvil to add CT
Dakhiliya Governorate. and MRI along with Physiotherapy
Abdul Latheef, Dr. V T Vinod and Dr. P services soon.
HE Dr. Sheikh Khalifa Bin Hamad A Mohammed in a joint statement said,
Bin Hilal Al Saadi, Governor of Al “We are happy to announce the launch of “The people of Nizwa and peripheral
Dakhiliyah, who was the chief guest, this hospital, it will prove a boon to the areas will now have access to
inaugurated the hospital. Dr. Mazin people of Al Dhakiliya and address their superior healthcare services at their
Jawad Al-Khabouri, Director General healthcare needs in a much better and door-step. . The centre will act as a
of Private Health Establishments was convenient way.” dependable referral centre for general
the guest of honour. HE Sheikh Rashid practitioners, clinics and other
Bin Said Al Kalbani, Wali of Nizwa This centre will be a strategic referral polyclinics in the region.”
and Dr. Abdel Salam Ali Gamil, DG – centre in private healthcare sector and
Healthcare Services, Nizwa were among would cater to masses with its quality Badr Al Samaa, Sohar is going to be
the other dignitaries present. Haitham services. The hospital has tie-up with all the biggest green field project from the
Rafi, the musical sensation of Oman, major insurance companies for cash-less group and is expected to be operational
performed live at the event along with treatment. Badr Al Samaa has signed by the end of 2019. It will serve as
other local singers. exclusive contracts with many oil and a referral centre for entire Batinah
gas companies and established clinics region. New facilities are planned in
Dr. Mazin Al Khabouri, DG – PHE, in his in areas like Duqm, Khazzan and so on. Suwaiq and Al Mabella, Muscat and in
speech said, “It is satisfying to see how The hospital will also be a referral centre other parts of GCC.
Badr Al Samaa group has become Oman’s for advanced care for these off-shore
HEAVY OIL
40 July, 2019