IS WHO WE ARE

Ariel’s meticulous quality

assurance workforce is what
makes us the number one
authority in natural
gas compression.
 CONTENTS

Also inside: 06 08 10
135 15

04 / Editor’s letter
40

Jonathan Sheikh-Miller with

2018 sector operating

his thoughts on the industry. cost (US$ billion)

06 / In numbers 356
839
Digitalisation in the O&G
sector under focus. 93

08 / News analysis 17 28
Getting your supply chain right
is a necessity.

10 / News analysis
ADNOC’s health, safety and
environment policies.

12 / News
Top news stories from the
regional industry.

17 / Special Report: KEEP

30
Offshore UP-TO-DATE
For all the latest 3
technology news, check out
Changing strategies, priorities www.arabianoil
andgas.com
Online
and technologies.

28 / Cover story
David Dickson, president and
CEO, McDermott is the subject
of our in-depth feature
this month. Editor’s choice:
www.arabianoilandgas.com
34 / Top 30 • O&GME Top 30 Oilfield
EPC Contractors Services Companies 2017
Our annual list of the EPC firms • Oil & Gas Middle East Top 30
supporting the region’s oil and EPC Contractors list 2017
gas sector. • Video: O&GME and AVEVA
34 hosts roundtable
42/ Awards coverage • Video: O&GME and R&PME
We exclusively reveal the six
42 Awards 2017 achievers
individuals chosen to decide
this year’s winners.
App
46 / Project focus DOWNLOAD IT TODAY ON YOUR
iOS, ANDROID OR KINDLE
An update on an ADNOC LNG
project on Das Island.

50 / Five Minutes With...

Philippe Herve, VP, Oil & Gas
Solutions, SparkCognition.
50
arabianoilandgas.com JUNE 2018
 EDITOR’S LETTER
A tale of two cities
A decision made in Washington DC in early May engendered
differing reactions within our region
A
s late evening merged into
night on May 8th, the mood
in two of the region’s key
cities couldn’t have been more
contrasting. Following President
Trump’s reinstatement of sanc-
THIS ISSUE:
David Dickson,
tions on Iran, Riyadh, a vocifer-
president and CEO ous supporter of the decision,
of leading EPCI positively “welcomed” the move,
outfit McDermott, while in Tehran, there were re-
gives us an exclusive
ports of resignation and sadness
interview (pg 28).
on the streets.
It was hardly a bolt from the blue: from Trump’s
first overseas trip as President to Riyadh, which cul-
4 minated in more than $100bn worth of arms sales,
to hawkish appointments within the US administra-
tion, juxtaposed with a barrage of ominous threats
against the Islamic Republic, the obvious conclu-
sion to draw has been that the countries of the
Arabian Gulf are allies and trading partners, while
Iran is an international pariah.
There is precious little upside for the Iranians to
hang on to. Oil and gas experts have speculated that
ultimately at least 500,000 barrels per day (bpd) of
Iran’s oil production will be prevented from hitting
the international market, while blue-chip global
players like Total and Siemens, who were set to play
a part in modernising the country’s industrial infra-
structure, will now reluctantly exit the scene.
There is also no guarantee that maverick opera-
tors like the Russians and the Chinese will ride
into town and salvage some of what has been left
behind. Indeed, uncertainty now surely hangs over
the future of some of the big-ticket multi-billion
dollar tie-ups agreed last year with the likes of Rus-
sia’s Gazprom and Rosneft, which were set to drive
forwards Iran’s hydrocarbon industry across both
the upstream and downstream sectors.
It actually gets worse.
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The fall-out of Trump’s procla-
mation has predictably included a
notable spike in the oil price, which
has now hit three-year highs, touch-
ing $80 a barrel. Good news once
again for Saudi Arabia, which needs
a Brent crude price of $87.9 a barrel
to breakeven in 2018 according to
the latest International Monetary
Fund figures.
Part of the reason for the immedi-
ate price jump was anxiety in the
market that Iran’s impending output
reduction, could lead to genuine
shortfalls in supply, especially as
Saudi Arabia and Russia have also
been leading stringent cutbacks of
1.8mn bpd for well over a year to off-
set the potential impact of burgeon-
ing US tight oil production.
But, no worry.
Saudi Arabia’s Minister of Energy,
Industry and Mineral Resources
Khalid Al Falih, was quick to reas-
sure the international community
that whatever gaps might appear
in the global oil supply, once Iran’s
sanctions begin to bite later this
year, the kingdom would be more
than ready, alongside its partners
like the UAE, to “mitigate” any
potential problems by opening their
taps once again.
Tehran’s loss really could become
Riyadh’s gain.
Jonathan Sheikh-Miller
Editor, Oil & Gas Middle East
jonathan.miller@itp.com
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same protection
The world’s first NORSOK compliant
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ZINC RICH PRIMER

MASTIC PRIMER

TOPCOAT
 IN NUMBERS

Digitalisation ADOPTING DIGITAL

TECHNOLOGY COULD MEAN
in O&G US$150
Adapt or be left behind suggests Wood
Mackenzie survey of upstream sector BILLION PER ANNUM

I
t’s nearly impossible to read the headlines every morn-
ing without seeing phrases like ‘big data’ or ‘analytics’. IN POTENTIAL OPERATING COST
These are now also an integral part of how companies
in the energy and natural resources (E&NR) sectors operate. SAVINGS
Though adoption of digitalisation has been slow in the
E&NR sectors, the race is now on to embrace data, analytics
and connectivity, or to be left behind. The “size of the prize” in
Wood Mackenzie recently surveyed a cross-section of operating cost
its clients across the upstream industry on which digital
technologies they feel will have the greatest effect on how
they do business. 135 15
The survey threw up some interesting findings. Digitali-
sation could save the upstream industry more than 10% of
its annual operating costs – or more than $7 a barrel of oil 40
6 equivalent at current prices.
Blockchain might be all the rage right now but less than
20% of those questioned thought it would have a major im-
pact on the industry in the next decade, whereas more than
40% felt cloud computing and the Internet of Things would
make a real difference.
The sectors most likely to experience benefit? Supply
2018 sector operating
chain management, drilling and completion and product
cost (US$ billion)
operations.
Preston Cody, Head of Analytics Lab – Wood Mackenzie,
said, “To meet the goals of greater productivity and sustain-
ability, companies across the energy and natural resource
sectors are embracing digital technologies to help transform
their businesses and improve margins in new ways.
“The size of the prize is huge. We estimate up to $150bn
per annum could be saved in operating costs across the 356
energy and natural resource sectors. In the upstream, US
shale operators have typically saved up to 10% on drilling
and completing wells through the use of digital technolo-
839
gies - primarily Internet of Things/sensor data, enterprise
data management, analytics and automation.
“Clearly the benefits of digitalisation are real and com-
panies are realising significant savings in the near-term 93
through focused, incremental changes and optimisation
of assets. Long-term however, the biggest value will come
Metals & Mining
from transformative and disruptive technology break-
Upstream
throughs that dramatically increase the commercially re- Downstream
coverable resource base and shift the basis of competition.” NB Shaded area indicates potential savings by sector

JUNE 2018 arabianoilandgas.com

 IN NUMBERS

WHAT IMPACT WILL THE FOLLOWING DIGITAL TECHNOLOGIES

HAVE ON THE INDUSTRY?

Blockchain

3D printing

Cloud computing

Data science/analytics

Big data/enterprise data management

Cognitive

Oilfield/facility process control

Internet of Things

0% 20% 40% 60% 80%

% of respondents
Major impact Transformational
7

WHERE DO YOU THINK THEY WILL

HAVE THIS IMPACT?

Corporate

Midstream/marketing/trading

Preventative maintenance

Product operations

Supply chain management

Drilling & completion

G&G work

Land / new ventures

0% 20% 40% 60% 80%

% of respondents
Major impact Transformational
Source: Wood Mackenzie

arabianoilandgas.com JUNE 2018

 NEWS ANALYSIS
INDUSTRY OUTLOOK
Make the
most of the
good times
Andrew Robins, controls director at EnerQuip, examines
the importance of a reliable and effective supply chain to
Middle Eastern operators
F
or the Middle Eastern oil
and gas sector, there’s a
palpable sense of making
hay while the sun shines.
The prolonged price dip is over,
8 and potential future headwinds
relating to economic diversifica-
tion and climate change have
yet to have major impacts on the
region. So, with the market in a
relatively good place, the over-
riding sentiment is that now is
the time to maximise production
efficiency and revenues while in-
vesting in the future to make sure
the good times can continue.
But what does that entail ex-
actly? Investment in new produc-
tion facilities and field explora-
tion for sure – but the region’s
national oil companies (NOCs)
and their oilfield service partners
also need to keep a tight rein on
production, maximising uptime
and minimising downtime of
assets to optimise revenues and
profits.
Many operators are finding
that one of the surest guarantees
of best practice is paying close
attention to screening suppliers
across the business so that only
the best make the approved ven-
JUNE 2018
dors list. So, what does that mean
in practice?
Excellence in short supply
Basically, operators and service
companies need to be able to rely
on suppliers for technical and
business excellence.
Take the niche of torque
machines as an example. These
units are used to make up and
Andrew Robins,
break out of threaded tubular controls director
connections. It’s an intricate at EnerQuip.
process that requires finesse and
extremely precise application
of torque to get right. A loose or
overtight connection could cause
problems down the line, resulting
in unnecessary downtime for re-
medial works. A seemingly minor
process in the grand scheme of
things can thereby result in costs
and lost revenue numbering in
the hundreds-of-thousands. in doing so saved operators time
Previously this was a manu- and money.
ally and time-intensive task with Equally important is familiar-
significantly variable accuracy. ity with the particular technical
Older iterations of torque ma- challenges the region offers.
chines lacked the fine-control The Middle East can be a harsh
to handle connections with environment, with temperatures
low torque requirements. More commonly tipping north of 50
modern technology has improved degrees celsius. Equipment built
accuracy, added that finesse and for benign environments may not
arabianoilandgas.com

fare as well here. With torque
machines, for example, it’s al-
ways safer to locate power packs
outside the main factory floor to
reduce noise and avoid the op-
erator standing over pressurised
hoses and valves. However, older
units often couldn’t cope with the
heat, cutting out and forcing op-
erators to wait for them to cool.
Modern hydraulic power packs
are far more heat tolerant.
The improved oil price has
allowed operators to invest in
new equipment, as well as spare
parts for existing equipment. The
net result is greater reliability
“NOCS SUCH AS SAUDI ARAMCO ARE BE-
COMING EVER MORE EXACTING IN WHAT
THEY EXPECT FROM THEIR APPROVED
SUPPLIERS. AS THEY SHOULD BE.”
arabianoilandgas.com
and optimised production. This
hasn’t been possible over the last
couple of years, when operators
were in an unenviable position
between a rock and a hard place.
When oil prices languish in the
twenties and thirties per barrel,
underinvestment in technology
can impact the bottom line, but
the bottom line rightly precludes
investment, with all eyes fixed on
staying operational.
Now, with those constraints
lifted, operators are driving a
boom in investment across the
supply chain, which allows sup-
pliers to invest in improving the
NEWS ANALYSIS
technology they offer. A virtuous
cycle has replaced a vicious one.
Worthy partners
The other ingredient in a suc-
cessful supply chain relation-
ship though, relates less to what
business is being done than how
it is done.
A transactional relationship
with the cheapest supplier, based
purely on price, may seem good
business at the time. However,
with all complex engineering
applications, it is inevitable that
certain critical things will even-
tually go wrong.
At this point, faced with the
prospect of downtime and lost
revenue, the quality of supply
chain partners comes to the fore.
If at all possible, remote technical
assistance should be used to help
the operator’s onsite engineering
teams to resolve the issue and 9
restart operations – especially
important for often-remote Mid-
dle Eastern desert operations.
Then, if remote assistance isn’t
possible, how responsive will the
Oilfield facilities
rely on thousands supplier be? Will they be on the
of pieces of next flight to the customer along
equipment with any necessary spare parts?
functioning effi- Or will it be a case of placing an
ciently. A reliable
order and waiting days or weeks,
and swift supply
chain is vital. all the time haemorrhaging sig-
nificant revenue?
These considerations, not
just around what’s being sold
but the business practices of the
company selling it, are coming in-
creasingly to the fore. NOCs such
as Saudi Aramco are becoming
ever more exacting in what they
expect from their approved sup-
pliers. As they should be.
Whether it’s torque machines
or any other niche part of the
equation, success hinges on
getting the supply chain right.
Getting it wrong risks downtime
and loss of revenue.
JUNE 2018
 NEWS ANALYSIS
INDUSTRY OUTLOOK
Smart
and right
Abdulla Al Marzooqi, manager of health, safety and en-
vironment, ADNOC, says effective HSE policies are crucial
T
he global oil and gas
industry is today facing a
number of varied health,
safety and environmental
(HSE) challenges.
For instance, when you look
at reservoirs around the world,
the days of easy oil and gas are
coming to an end. Oil and gas
will be discovered and produced
10 under increasingly more complex
and challenging circumstances,
requiring our industry to keep
evolving our approach to HSE, to
mitigate risks to people, commu-
nities and the environment.
Meanwhile, heightened stake-
holder awareness means that the
industry operates under greater
scrutiny than previously and,
therefore, has a responsibility to
forge stronger-than-ever relation-
ships to ensure it maintains its
licence to operate. In addition,
the loss of experience and talent
through retirement makes it
critical for companies to embed
the highest health, safety and en-
vironmental protection practices
across their operations, so that
any changes in personnel and
work practices do not have any
“...ENSURING A SOLID HSE PERFORMANCE
IS AS MUCH AN INVESTMENT IN PEOPLE,
SOCIETY, AND THE ENVIRONMENT, AS IT IS
IN THE BUSINESS.”
JUNE 2018
apparent negative impact.
Another demand and challenge
that the industry is facing today is
that fact shifts in energy market
dynamics are driving oil and gas
companies to examine costs and
find ways to do more with less –
and so this could, theoretically,
impact HSE.
These shifts in market dynam-
ics have put the onus on all oil
and gas companies to manage
costs to ensure they can thrive
and compete in the changing
energy environment. But the
industry knows a single unfor-
tunate incident, or just one act
of carelessness by an individual,
can undermine everything we are
trying to achieve.
HSE makes commercial sense
That is why companies know
that investments in HSE train-
ing, to assure safe operations,
are not only the right thing to do
but also the smart thing to do.
In other words, ensuring a solid
HSE performance is as much an
investment in people, society, and
the environment, as it is in the
business. There are countless ex-
amples, across the industry, that
An engineer
wears a high vis- point to the undeniable fact that
ibility jacket and strong HSE policies and practices
helmet at an oil contribute to the commercial suc-
and gas facility. cess of the business.
At ADNOC, for example, it is
our firm conviction that HSE is
fundamental to our successful
transformation into a more resil-
ient, commercially minded and
performance driven company,
and a pivotal enabler of our 2030
smart growth strategy.
The firm has also has imple-
mented a 100% HSE strategy.
This fundamentally expresses
ADNOC’s unwavering commit-
ment to work relentlessly to
ensure the safety of our people
and the communities in which
we operate, the integrity of our
assets and the protection of the
environment. We know this is
arabianoilandgas.com

not accomplished by posters on a
wall, or simple talk. It is achieved
by committed people that think
and act 100% HSE, supported by
clear systems and procedures.
A full commitment to HSE
leaves zero room for compro-
mises, shortcuts or negotia-
tions. It means everyone has full
ownership of their work and is
empowered and expected to stop
any unsafe task, address the HSE
risks and ensure compliance with
HSE policies and procedures. For
us, 100% HSE is a key driver of
our four strategic imperatives –
people, performance, profitability
and efficiency – so our main goal
is to fully embed an HSE culture
of empowerment and account-
ability in every individual that
joins the firm, so we can categori-
cally make sure everyone goes
arabianoilandgas.com
home safe, day after day.
Marzooqi, HSE
Expect the same from others
In every industry, there are
many collaborations, partner-
ships and joint ventures. It is
entirely right and proper to
expect the same level of com-
mitment to HSE from everyone,
including business partners,
contractors and service provid-
ers. We want everyone we work
with to proactively address and
mitigate HSE risks and not only
develop a culture of 100% HSE
but also continuously advance
their, and our, HSE standards. To
encourage HSE best practice, we
recognise suppliers who clearly
contribute to our safety ambi-
tions, as we develop a sustain-
able and long-term strategy for
awarding projects and selecting
NEWS ANALYSIS
contractors who demonstrate a
similar adherence to HSE.
More widely, companies in the
industry, whatever their scale,
need to assess the impact of their
operations on the environment.
We operate our facilities with
the goal of preventing environ-
mental incidents. The principal
of pollution prevention and con-
trol is central to how we operate
and we concentrate our efforts
on taking a proactive approach 11
towards environmental protec-
tion rather than one that focuses
on remedial efforts alone.
We diligently assess the envi-
Abdulla Al
ronmental impact and risks of
new projects to ensure environ-
manager at mental risks are managed to an
ADNOC. acceptable level and do not result
in adverse consequences. This is
supplemented with continuous
environmental monitoring dur-
ing the development and active
phases of projects, through to
decommissioning.
Baseline environmental impact
assessment surveys are carried
out before new works begin and
environmental monitoring is
undertaken throughout construc-
tion to ensure there are no unan-
ticipated impacts on ecosystems.
Embedding environmental pro-
tection in its operations ensures
ADNOC is proactive in seeking to
preserve the environment from
which it draws the energy the
world demands.
JUNE 2018
 NEWS
First crude cargo from AD-
NOC reaches Mangalore
Access to the reserve for commercial purposes will allow ADNOC to
tap demand from Indian refineries.
Dr Sultan Ahmed Al Jaber (right) greets Dharmendra Pradhan in
12
T
8% he first cargo of crude oil
The percent- from the Abu Dhabi Nation-
age of India’s oil al Oil Company (ADNOC),
imports that come destined for Indian Strategic
exclusively from Petroleum Reserves Limited
the UAE. (ISPRL) has been successfully
shipped to India.
The cargo, which took six days
to arrive, is the first under an
agreement between ADNOC and
ISPRL, an Indian government-
owned company mandated to
store crude oil for strategic needs,
to locate 5.9mn barrels of ADNOC
crude oil at the Karnataka facility
in Mangalore.
QUOTE: “WHILE PART OF THE STORED OIL WILL BE USED FOR COMMERCIAL PURPOSES BY ADNOC,
THE MAJOR PART WILL BE PURELY FOR STRATEGIC PURPOSES.”
JUNE 2018
Abu Dhabi.
The loading in Abu Dhabi last
month, of approximately 2mn
barrels of ADNOC crude oil, was
witnessed by Dr Sultan Ahmed Al
Jaber, UAE Minister of State and
ADNOC Group CEO, and Dhar-
mendra Pradhan, Indian Minister
for Petroleum and Natural Gas.
Dr Al Jaber said: “The strategic
reserve project represents an im-
portant new energy partnership
with India that leverages the UAE
and ADNOC’s expertise and oil
resources. With this partnership,
new market opportunities will
open up for ADNOC, as we not
Coming up:
/13 Intertek opens new facility
/14 News from around the Gulf
/14 KCA Deutag deal
/15 Shell, Total in Oman tie-ups
only help to ensure the energy se-
curity of the UAE’s largest trading
partner, but also gain greater ac-
cess to one of the fastest-growing
markets for high-quality crude
oil. Our increased presence in In-
dia, will also catalyse demand for
our own refined and petrochemi-
cal products.”
Pradhan stated: “The UAE
is the first country to invest
in India’s Strategic Reserves
Programme. This important part-
nership will further strengthen
the close energy cooperation that
exists between India and the UAE
and builds on the historic ac-
quisition of a stake in the Lower
Zakum offshore concession by
Indian Companies.
“The strategic reserve will
provide a boost to India’s energy
security and help us deal with
supply side disruptions. While
part of the stored oil will be used
for commercial purposes by
ADNOC, the major part will be
purely for strategic purposes.”
Indian energy demand is fore-
cast, by the International Energy
Agency, to grow by more than any
other country up to 2040, driven
by an economy that will grow to
more than five-times its current
size. By then, India will be the
world’s most populous country.
India is 82% dependent on
imports to meet its crude oil
needs, 8% of which is supplied by
the UAE.
arabianoilandgas.com

Intertek launches new Sharjah laboratory
UK based firm unveils new facility to support a range of industries including oil and gas and petrochemicals
OPENING Intertek, a total quality
assurance provider to indus-
tries worldwide, has announced
the opening of its new Sharjah
laboratory complex for assur-
ance, testing, inspection and
certification to support the
region’s rapidly growing demand
for quality assurance across
multiple industries.
The new purpose-built 38,000
square feet facility in Sharjah
features six new specialised
laboratories, including a fuel lab,
an oil condition monitoring lab,
a scanning electron microscopy
lab, an upstream production
chemistry lab, a microbiology
lab, and a food and water lab. Its
equipment, testing and techni-
arabianoilandgas.com
NEWS
manufacturing, environmental,
hospitality, cosmetics, and food
and water industries.
The facility is now one of the
largest independent laboratories
in the region, servicing clients
in the UAE and the Gulf. This
upgrade allows Intertek to cater
to more complex requests from
local and regional customers and
Intertek celebrates the opening of its new facility comes at a crucial time when
which will cater to a number of industries.
governments seek to diversify
their economies and become
6 cal expertise provide a full suite
of quality assurance offerings
more competitive on the world
stage through quality assurance
The number of labora- across multiple disciplines un- and offering.
tories at Intertek’s new
Sharjah facility. der one roof. This includes qual- The centre’s microbiology lab
ity assurance needs for the oil, provides testing for industries
gas, petrochemicals, chemicals, including oil exploration, fuels
power, construction, airlines, and cosmetics.
13
JUNE 2018
 NEWS
REGION
AROUND THE GULF
Latest developments across the region
4 1
1. UAE
14
Turbine Services & Solutions
(TS&S), a maintenance, repair and
overhaul provider for gas turbines,
which is owned by the Mubadala
Investment Company, and German
conglomerate Siemens have
reinforced their relationship with
an expanded supplier agreement
contract. The partnership will see
the UAE-based company expand
its capacity for Siemens’ SGT-A65
(Industrial Trent) engines.
4. SAUDI ARABIA
Eaton, the Saudi Arabian division
of the Institute of Electrical and
Electronics Engineers, a technical
professional organisation for the
advancement of technology and
co-sponsored by Saudi Aramco,
has partnered with the oil major to
deliver an event titled ‘Challenges
and Mitigation in Arc Flash and
PF Capacitor Applications’ which
attracted over 80 officials including
Aramco staff as well as students.
JUNE 2018
2 5
3 KCA Deutag ties
2. KUWAIT
Honeywell has opened a customer
experience centre in Mina Abdul-
lah, which aims at giving local
customers, trainees and students a
deeper understanding of Honeywell
products and solutions for oil and
gas facilities and refineries. The new
centre reflects Honeywell’s com-
mitment to the advancement of
key industries in Kuwait and allows
visitors to experience a wide variety
of technologies.
5. IRAN
President Donald Trump’s decision
to withdraw from the Joint Com-
prehensive Plan of Action (JCPOA)
and to reinstate US sanctions on
Iran that were in force before the
JCPOA’s implementation, has
caused French supermajor Total
to make plans to pull out of its
planned development at the South
Pars gas field unless it is granted
a specific project waiver by the US
authorities.
6 of Dalma Energy.
3. BAHRAIN
Bahrain’s Minister of Oil has
launched the Bahrain Energy
Fund which seeks to raise $1bn.
Sheikh Mohammed bin Khalifa
Al Khalifa said the fund will be
the first in the region in providing
institutional investors with ac-
cess to local energy assets. The
fund will seek to receive initial
seed capital from entities in
Bahrain, including Nogaholding,
Osool and SICO.
6. OMAN
Petroleum Development Oman is
banning single-use plastics across
its business as part of a wide-
ranging campaign on environ-
mental sustainability. In a phased
move, the company will start by
replacing plastic cups at its Mina Al
Fahal headquarters with ceramic
mugs, followed by bans on bags,
bottles, cutlery and straws. The
initiative falls under its Estidama
(Sustainability) campaign.
up Dalma deal
KCA Deutag has completed its combination
with the Omani and Saudi Arabian businesses
As a result of this acquisition KCA Deutag
has enhanced its fleet of drilling rigs in the
Middle East, with 46 land rigs in the region
out of a total of 83 rigs owned and operated
by KCA Deutag globally.
In addition to its land drilling operation,
the KCA Deutag group has its offshore, RDS
and Bentec business units. RDS is a rig en-
gineering specialist, while Bentec manufac-
tures land rigs and oilfield equipment.
At the deal signing, Norrie McKay, CEO of
KCA Deutag said: “Today is a major mile-
stone in KCA Deutag’s long history and a
fundamental part of our strategy as we look
to grow our business, either organically or
by acquisition, in those markets where we
see substantial growth opportunities. I am
delighted to welcome our new Dalma col-
leagues to the KCA Deutag group as we enter
an exciting new chapter for our business.”
DATA SNAPSHOT
BRENT CRUDE OIL PRICES
80 $79.8
78
76
74
72
Apr 25 May 25
President Donald Trump’s decision on May
8th to reinstate sanctions on Iran brought an
expected spike in prices. Source: oil-price.net
arabianoilandgas.com

Shell, Total sign gas development deals in Oman
Deals should help Oman increase its energy provision and meet its economic growth targets.
DEAL Shell Gas & Power Develop-
ments has signed a memoran-
dum of understanding (MoU)
with Oman’s government to
cover proposed energy devel-
opment projects in Oman. The
agreement covers upstream gas
exploration and development,
gas-to-liquids (GTL), liquefied
natural gas (LNG) and renew-
able energies.
The MoU sets out a mutual
understanding between Shell
and Oman and serves as a plat-
form for further negotiations
on the proposed developments.
Shell is to operate an upstream
project with France’s Total and
the Oman Oil Company (OOC)
as partners. It will also operate
Emergency Mobile No:
00971 50 3752010
arabianoilandgas.com
Shell signs its memorandum of understanding with the Oman
government.
75%
a GTL project with the OOC as
a partner.
Shell’s shareholding in The proposed investments are
onshore Block 6.
intended to help Oman meet its
energy needs and growth aspira-
tions.
Total and Shell, as operator,
will develop several natural
gas discoveries located in the
Greater Barik area on onshore
Plot No S-50807, Jebel Ali,
Free Zone (South),
P.O. BOX 17729,
Dubai-United Arab Emirates
NEWS
Block 6 with respective shares of
25% and 75%.
On signing the agreement,
Maarten Wetselaar, Shell In-
tegrated Gas & New Energies
director, said: “Shell has a long
and proud history in Oman,
and we are pleased to have the
opportunity to take it to new
levels through our proposed
programme of development and
investment in the country. We
are hopeful we can use Shell’s
integrated gas and new energies
investment to accelerate Oman’s
diversification and industriali-
zation agenda. The proposals
could also enhance in-country
value, resulting in value and job
creation in Oman’s economy.”
15
Telephone: +9714-8865119
Fax : +9714-8865118
Email: sales@sso.ae | info@sso.ae
www.shreesteeloverseas.com
JUNE 2018
GROWTH THROUGH TRUST, QUALITY & COMMITMENT

ONSHORE & OFFSHORE OIL & GAS

RIGS/JACK UP REPAIR & UPGRADES
SHIP BUILDING AND SHIP REPAIR

Ali & Sons Marine Engineering Factory

asme@ali-sons.com | www.asme.ali-sons.com
A SPECIAL REPORT INTO A KEY SEGMENT OF THE REGIONAL UPSTREAM INDUSTRY

KNOWLEDGE MARKET
PARTNER FOCUS
Proserv looks at With rising oil prices TECH FOCUS
extending the life of and realigned strategies
GETTING THE MOST
assets and the dangers offshore operations are
of expensive downtime flourishing / p20 OUT OF AUTOMATION
offshore / p22 OFFSHORE / P24

17

SPECIAL REPORT

OFFSHORE
TECHNOLOGY
Offshore production remains a relatively cost-intensive operation but advances in
technology are helping to make the sector much more competitive
arabianoilandgas.com MAY 2018
 MARKET FOCUS

OFFSHORE OFFERING MORE

Offshore operators have emerged from the last downturn smarter and more com-
petitive, writes Jonathan Sheikh-Miller

W
hat a difference a
year makes. As the
summer months lay
before us last year,
the oil price had rallied
from its $30 a barrel nadir of early 2016 but
upstream operators were still wrestling with
challenging margins as Brent crude sat south
of $50 a barrel.
Now thanks to a miscellany of different
factors, we find ourselves with a realistic
expectation of the oil price cruising past $80
a barrel.
But the effect of the 2014 downturn,
which saw 36% of oilfield services operators
go the wall according to S&P Capital IQ
and Deloitte analysis, is still being felt. The
20 International Energy Agency’s (IEA) Offshore
Energy Outlook reveals the oil price crash
stalled numerous deep-water projects with
final investment decisions (FID) put on ice, production currently accounts for 25% of all using digital solutions can have savings in
while a slump in exploration and appraisal oil and gas production and deep-water has the order of 30%. Offshore platforms present
drilling was a further inevitable outcome. accounted for half of all newly discovered oil a unique opportunity for innovation in the
But things are changing. The oil price has and gas resources in the past ten years – the digital sphere as these remote areas require
had an uptick and according to the IEA’s vast finds off Egypt and Cyprus being perfect an incredible amount of automation.”
findings, the impact of the crash has led regional examples. The key consequence of a tighter and more
to offshore operators “looking much leaner Offshore exploration and production standardised offshore operation is that these
and fitter than they did before” as they have players have got leaner and the IEA puts fields remain competitive for longer when oil
slashed their breakeven numbers. some of this down to simplified project prices begin to wane. John Bright, business
Linh Austin, senior vice president, Middle designs as well as standardised and development director for global energy
East and North Africa at engineering, downsized operations, but new technologies services provider Proserv believes, regardless
procurement and construction major are also helping to impact a traditionally of the specific oil price, operators look to
McDermott agrees, “More FIDs are being cost-intensive segment. Automation is maximise output and reduce overheads,
signed as both national and international oil helping to improve efficiencies and the “There will always be a requirement to
companies’ projects have now crossed the perennial issue of health, safety and increase productivity while reducing costs as
economic threshold and become financially environment (HSE) concerns. it is with any business.
viable due to the higher oil price. Whilst we Christian Cravedi, senior VP & head of “The market continues to be competitive
are not back to the market conditions of five ABB’s oil, gas and chemicals business, but also allows opportunities for new
years back, there is a general improvement in IMEA remarks: “A structured way of using advances in technology, which can
terms of market optimism going forwards.” expertise and digital technology will improve deliver cost and time savings along with
Whatever the prevailing market conditions operations in a way that reduces unplanned improvements in HSE, while also maintaining
may be, offshore production is a necessity and unscheduled maintenance or equipment the rate of production required. However,
as global demand for oil and especially failure, which is also a significant safety decisions to make large capital expenditure
natural gas increases. The IEA estimates hazard. investment are continuing to be influenced
that, despite the recent headwinds, offshore “A well-executed maintenance strategy by international oil pricing.”

JUNE 2018 arabianoilandgas.com


But offshore operators are becoming
increasingly resourceful in their attempts to
streamline their processes and outgoings.
Cravedi points to the increasing use
of big data analytics to aid predictive
maintenance and comments that, “… small
changes to improve performance can have
a huge impact on margins,” while Bright has
observed that operators are using technology
to get the maximum from their assets.
“The oil and gas industry is dependent on
innovation and intelligent solutions driving its
sustainability, but also enhancing its future
growth. There is a defined focus to continue
with a rigorous maintenance and upgrade
programme of the fields, as production has
had to take the priority with low oil prices.
“Operators are now, more than ever,
investigating and investing into rehabilitation
and extending life of asset initiatives.”
Bright’s view is that there is not much
‘easy oil’ to tap and so with the complexity
of new production sites, making the most
of existing “brownfield” facilities is a priority:
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arabianoilandgas.com
John Bright, business development director,
Proserv.
“No easy oil is the reason more organisations
are look towards adopting the ‘life of asset’
approach. By maintaining what they have,
operators can reinvest into the future
prospect areas of oil, gas and renewables.
Global oil pricing will continue to have a
strong impact on offshore and deep-water
investment; an oil rate in the range of $80–
100 is required to justify the investment.”
Austin, however, refers to the fact oil has
MARKET FOCUS
been extracted in challenging circumstances
for years and solutions such as improved
seismic reservoir technology will only aid the
accuracy of exploration and appraisal drilling.
In fact, innovations such drones and
robots are already assisting in the inspection
of equipment in hazardous locations such
as underwater or high up on an offshore
platform. Cravedi sees further technological
advances ultimately helping to increase
reliability, aid viability and reduce HSE risks.
“Safety is a priority in remote areas
where environmental factors can wreak
havoc. One response to this risk is to make
these platforms unmanned. We can sink
operations into the seabed where we can
provide compressor pumps and all relevant
equipment, entirely submersed. The site is
immune to storms.
“The future isn’t necessarily purely offshore
or deep subsea applications but digital
solutions have allowed us to tap into these
resources in a much safer and sustainable
way.”
21
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JUNE 2018
 KNOWLEDGE PARTNER
EXTENDING THE
LIFE OF ASSETS
Garry Kidd, VP, business development, Proserv reveals how his firm can help
rejuvenate older oilfields
22
As oilfields age, operators face strategic decisions over replacing equipment or opting to upgrade, modify and maintain what they have instead.
W
ith the consistent rising
demand for energy,
hydrocarbon resources
are still contributing
to and seen as the
backbone to support the current global
energy demand.
The energy world is currently going
through what is considered an unsettled
but dynamic evolution. Fluctuating oil and
gas prices, increased energy demand, vari-
ous political instabilities in key production
regions, anxieties concerning security of
supply - these are just some of the factors
influencing and pushing the industry re-
garding the development of new oil and gas
fields, the modernisation of their existing
JUNE 2018
infrastructure and improving efficiency.
The oil industry’s operators are now
focusing upon the implementation of a
more cost efficient and effective approach
of designing and equipping offshore instal-
lations, aiming to significantly reduce the
cost of the projects to cope with the oil
price downturn whilst also improving upon
their carbon foot print through the adop-
tion of green solutions.
Remote locations, harsh environ-
ments, extreme climates, weight and size
constraints. These are but a few of the
characteristics typical of offshore oil and
gas operations in the Middle East. Extreme
robustness, high reliability and availability,
as well as compact, modular designs are of
utmost importance to ensure the integrity
of the assets and the overall sturdiness of
the field.
Moreover, as project scopes widen,
sourcing a vast share of products, solu-
tions and services from a single supplier
offers a variety of benefits to engineering,
procurement and construction companies
and end-clients alike. Reduction of capital
expenditure (CAPEX) and project manage-
ment complexity can be realised, which
can ultimately improve project scheduling,
leading to earlier first oil production.
Offshore drilling rigs are moving into
deeper and deeper waters. Unconventional
oil wells are expanding access to previously
untapped reserves. The number of active
arabianoilandgas.com

pipelines are increasing at an exceptional
rate, driving the demand for marine tech-
nology services like marine growth removal
and friction welding.
Ageing assets
The Middle East is a leading oil and gas
region dating back to the first hydrocarbon
discoveries, but now it is facing challenges
with ageing assets putting a question
before operators whether to replace them
with new or service them, while still being
under pressure of maintaining the same
level of production.
It is estimated that more than 70%
of assets are older than 25 years; some
exceeding 40 years. While the life of many
assets will be extended through modifica-
tions and upgrades, a large number will
face decommissioning over the coming
years. This will require a fresh approach
and a lot of informed investment deci-
sions, either committing to late-life asset
management and integrity, or starting to
decommission in a safe, environmentally
sound and cost-effective way.
Adapting to the market demands, Pros-
erv’s offering is aimed at the entire lifecycle
of the field starting from front-end engi-
neering, and manufacturing of equipment
and solutions, to local operation services.
This includes maintenance services, sup-
ply of spare parts as well as upgrades of
existing equipment. Proserv has 30 years’
experience in successful removal of over
650 platform and subsea structures and
over 300 well cuts.
As offshore project experts, we integrate
our solutions into any platform or vessel
design in compliance with all major inter-
national and local regulations. We have
significant expertise in all major offshore
operating regions, from fit-for-purpose
to complex requirements from the most
demanding end customers. Proserv has
invested in finding ways to advance life
“IF A WELL GOES DOWN UNNOTICED, IT CAN
COST AS MUCH AS $100,000 IN LOST REVE-
NUE AND OPERATING COSTS EACH DAY UNTIL
IT IS BACK UP AND RUNNING.”
arabianoilandgas.com
Garry Kidd, VP, business development, Proserv.
of assets and extend field life in order to
support clients with maintaining or even
increasing production levels. Much of this
relates to smart-well solutions, field-inte-
gration technologies, reduction of down-
time and timely maintenance services.
Our research and development continu-
ally evolves in all of these areas, the most
recent and much acclaimed proof of
innovation has been our Smart Box well
management solution.
Costly downtime
Utilising proven technology, Smart Box can
withstand harsh environments, provide di-
agnostics for remote monitoring of the well
and deliver data from remote sites needed
to drive better maintenance decisions.
Uptime is a critical concern for the opera-
tors in their efforts to maintain production.
If a well goes down unnoticed, it can cost
as much as $100,000 in lost revenue and
operating costs each day until it is back up
and running.
Moreover, once it is, you have to allocate
valuable human resources to make sure it
KNOWLEDGE PARTNER
stays that way. This reactive type of ap-
proach is not only expensive, it’s also highly
inefficient. Unmanned sites are likely to
be 50 miles off the coast and if a critical
process breaks down, every minute waiting
for a service technician is another minute
of lost production and intensifying safety
concerns.
With global demand rising steadily, the
response from the supply side is crucial.
The demand will continue to grow by
1% to 2% annually and the industry will
require innovative, economical and reliable
technologies to cope with increasingly dif-
ficult production conditions. For example,
depleting oil fields need 4-5% of produc-
tion to be replaced every year – and this
requires new and improved technologies,
which will need to be underpinned with
significant investments.
The recurring oil price decreases will still
present challenges for financing invest-
ments. For Proserv, this is a situation we
actively deal with. We support customers
by providing technologies to achieve higher 23
equipment efficiency and availability;
standardisation, modularisation, and the
right choice of technology to reduce CAPEX
in the first place and improved production
costs for existing installations through in-
tegrating innovative products and systems.
We have a broad manufacturing base in
the region and service centres from which
we are able to dispatch technicians to site
promptly. Furthermore, with our global
presence we are able to provide reliable
service support anytime, anywhere with
our pool of experienced local technicians.
Going forward, for the industry it is a
necessity that operators and suppliers
work together and constantly develop
new services and solutions to optimise
the efficiency of established operations
and create advanced technology for new
developments.
Staying competitive requires maximising
your production efficiency by increasing
the reliability of your assets and processes.
And when assets reliability is a must,
state-of-the-art technology solutions and
maintenance can undoubtedly be your
competitive advantage.
JUNE 2018
 TECHNOLOGY FOCUS
OPTIMISING OFFSHORE
AUTOMATION
Christian Cravedi, senior VP & head of ABB’s oil, gas and chemicals business,
IMEA, explores innovation down to the ocean floor
24
New technologies can make the many challenges and potential hazards at offshore facilities much more manageable and surmountable.
D
igital business transformations are about responding
to industry disruption – developing new operating
models that use digital solutions to increase
efficiencies and reduce costs. The Energy Revolution
and Industry 4.0 have put pressure on oil, gas
and chemical companies (OGC) to explore new areas of process
optimisation in order to adapt to the lower for longer oil prices.
Improved condition monitoring and enhanced visibility beyond a
single plant to an enterprise level, can yield long term benefits for
companies that are interested in implementing a digital strategy.
For over five decades, ABB has been at the forefront of equipping
OGC companies across the hydrocarbon value chain with a wide
range of technologies to support some of the largest and most
challenging projects. ABB provided power for the world’s first
subsea compression system, Åsgard, setting a world record for
distance, voltage and frequency between the top-side drive and
JUNE 2018
the compressor which was installed on the seabed.
A recent project award for the new Johan Castberg oilfield
development project in the Barents Sea, included an integrated
ABB Ability System 800xA automation and safety system.
The system is comprised of over 210 solutions across various
industries, and includes a full-range of digital solutions to help
OGC companies manage complexities. Anything from smart
well flow assurance and condition monitoring to cyber security
and advanced digital services. By using a scalable model of
digitalisation, companies are able to start their journey at an asset
level with the end goal of enterprise-wide digitalisation.
Offshore platforms present a unique opportunity for companies
to implement new technologies that can reduce downtime while
ensuring safe operations. Remote connections and remote access
to plants through the centralisation of data is key to providing a
reliable solution for hazardous locations.
arabianoilandgas.com
 TECHNOLOGY FOCUS

The newly launched ABB Ability Process Performance Dashboard

connects oil and gas firms with a pool of operations experts
and advanced data analysis technology. It enables operations
to use large amounts of data that they are generating to rapidly
identify and fix performance weaknesses. The cloud-based
service measures the performance of oil and gas facilities against
carefully designed indicators, including start-up time and operator
interventions. The data is then analysed by a team of experts
at regional Collaborative Operations Centres around the world,
providing round-the-clock insights on performance.
These global centres allow IT and OT experts to work
closely with customers to solve issues in real-time. Data from
instrumentation, switchgear, motors, drives and other smart
sensors is channelled through analytics which undertake remote
diagnostics. The Collaborative Operations approach is a means
of properly harnessing digitalisation to increase the speed and
quality of decision-making along the hydrocarbon chain. This
changes how people interact with others in their organisations and Christian Cravedi, senior VP and head of ABB’s regional oil, gas and
enables the fast-tracking of innovation.
In the Middle East, ABB is implementing a range of automation ever before in protecting their assets. Globally, energy sector
and control systems. The Nasr Full Field Development Project cybercrime related costs are second only to financial services.
(Package 2) currently houses a power management solution, Fortunately, solutions exist to protect assets but OGC companies
power-from-shore and telecommunication systems designed will need to ensure that the correct measures are in place 24 hours
to reduce emissions. The facilities are connected by a 132 a day.
kilovolt AC subsea ring cable from Das Island, approximately 160 In some cases, cybersecurity solutions are added on “after 25
kilometres west of Abu Dhabi. The large offshore facility requires the fact” instead of being built into the various systems they
early detection of system performance irregularities, as well as are designed to protect. Recognising these risks early on during
increased control system reliability and scheduled or on-demand a cybersecurity review can prove advantageous in actually
monitoring of key performance indicators, due to its relatively preventing attacks.
inaccessible and remote location.
To detect unforeseen issues with performance degradation, The best kept systems need upkeep
a solution was provided to identify and prioritise process Digital solutions are paramount to the integration of various
improvement opportunities. ABB personnel use data collected systems and connected devices. Only when people, processes
through ServicePort during scheduled analysis to compare against and device data are in sync, will real change occur. Automating
best practices for early detection. Another level of security is production requires large amounts of data and the volume of the
added to protect the control system against any potential security data increases with the complexity of the production. Variables
threats that could ocur. combine to diminish productivity and it can become difficult
to find the source of inefficiency at a given plant. A range of
Cyber security becoming a staple services aligned with a company’s digital strategy close the loop in
While harnessing the Internet of Things has the potential to providing a complete lifecycle solution.
generate significant competitive advantages for those that ABB’s advanced digital services identify sources of issues to
deploy it correctly, companies must be even more vigilant than inhibit peak performance in equipment and processes. These
insights are then translated into recommendations for issue

“DIGITAL SOLUTIONS ARE PARA- resolution, to be completed in a timely and systematic manner.
While digitalisation has been gradually making inroads, it
MOUNT TO THE INTEGRATION OF has primarily been at an asset level or split by function and/or
VARIOUS SYSTEMS AND CON- geography. Existing market dynamics and challenges are forcing
NECTED DEVICES. ONLY WHEN a massive change in the energy industry, making digitalisation a

PEOPLE, PROCESSES AND DEVICE high priority across all levels within an organisation. Harnessed
and utilised in the right way, the latest technological solutions can
DATA ARE IN SYNC, WILL REAL provide oil and gas companies with the necessary tools to thrive in
CHANGE OCCUR.” the new energy landscape.

arabianoilandgas.com JUNE 2018

 SPECIAL REPORT – LAST WORD
MAKING THE MOST
OF CHANGE
Geert Willemse, product specialist at Frames, says optimising processes and facilities offshore
makes a lot of sense
The conditions in oil and gas fields natu-
rally change over the years and can become
ever more challenging. Water cuts rise, crude
viscosity or density can increase, and the
system can face more flow or emulsions
problems due to the use of submersible
pumps. Frames has years of experience in
process optimisation and has consequently
developed a set of solutions to deal with the
challenges of these changing conditions.
In recent years, Frames has actively been
involved in the design and supply of debottle-
necking solutions, which pinpoint the specif-
26 ic locations and equipment at hydrocarbon
plants that are limiting or reducing flow, for
several major end-users in the Middle East,
including in Kuwait and Saudi Arabia.
Many of those fields have passed their
window of ‘easy oil’ and are facing strongly
increasing water cuts for which the existing
facilities are not designed. Revamping
existing equipment with separation
enhancing internals has proven to be an
effective and really cost efficient solution.
Some recent projects involved successfully
debottlenecking separation trains by means
of the installation of advanced equipment
upstream, although this does come at the
cost of plot space. For onshore fields space
and weight are not necessarily a major
restriction - which is entirely different for
offshore facilities.
For offshore applications such as plat-
forms and floating production storage and
offloading (FPSO) units, Frames has been
providing further advanced solutions. New
major offshore projects in the MENA region
are currently being equipped with Frames
separation equipment including in the
Mediterranean Sea, such as the West Nile
Delta development project and the huge,
JUNE 2018
Geert Willemse, product specialist at Frames.
expanding Zohr gas field.
For the Petrojarl FPSO, entire process
modules were revised in order to make the
vessel suitable for the expected conditions of
its new destination. Frames was faced with
limited plot space and a strong motivation to
reduce costs and re-use existing equipment
as much as possible.A similar concept was
delivered for the N’Goma FPSO for which both
replacement of separation internals, as well
as newly built equipment, was successfully
supplied. On both occasions, the overall
“THE OPTIMISATION OF OFFSHORE FACILITIES
IS AN AREA WHERE SIGNIFICANT ADVANCE-
MENTS HAVE BEEN REQUIRED…DUE TO
THE LOW OIL PRICES, REDUCED INVEST-
MENTS AND THE SUBSEQUENT DRIVE FOR
STANDARDISATION.”
knowledge of the entire process train proved
to be a key differentiator in pinpointing the
opportunities for optimisation, cost-savings
and simplification.
The optimisation of offshore facilities is an
area where significant advancements have
been required in the last couple of years due
to low oil prices, reduced investments and
the subsequent drive for standardisation.
In facilities where there is a significant
price tag for square metres of deck space and
kilogrammes of structural steel, compact
solutions are the sensible answer. Frames
has, in close co-creation with several
end-users, developed standard separation
packages, such as for produced water treat-
ment to realise substantial capital expendi-
ture savings. The cost reduction is achieved
by means of modular design, small footprint
and low weight, combined with minimum
engineering and site works. This concept is
specifically suitable for clients driven by short
delivery times or budget constraints that
want a safe design according to international
industry standards.
Optimisation, debottlenecking and
standardisation have proven to Frames that
changing conditions – whether it is the
oilfield, the oil price or the entire market - do
not need to be bad things necessarily. It will
bring opportunities and solutions to those
able and willing to see them.
arabianoilandgas.com
Stay one step
ahead of your competitors
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SECTORS COVERED

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 COVER INTERVIEW
28
THE RIGHT
COMBINATION
WORDS: JONATHAN SHEIKH-MILLER
D
avid Dickson is becoming quite the
bona fide Texan. As president and
CEO he has led McDermott, the
expanding Texas based multina-
tional engineering, procurement,
construction and installation
(EPCI) company, for more than
four years. Before that his other senior roles have
included leading Technip USA and Global Indus-
tries, an EPC outfit with major activities down in
the Gulf of Mexico.
So when Dickson appears on the other end of the
line of a conference call between the Middle East
and the southern United States, his mild Glas-
wegian accent seems almost incongruous given
JUNE 2018
McDermott’s president
and CEO explains how his
firm’s multi-billion dollar
merger with CB&I is going
to diversify its business
his professional profile. Dickson is immediately
personable and succinct as he explains how his
firm has just come through the completion of a
business “combination” worth an estimated $6bn
with fellow EPC operator, the Chicago Bridge and
Iron Company (CB&I).
The deal involves a 3-to-1 reverse split of Mc-
Dermott’s common stock, but in the lead-up to the
agreement, headlines had focused on a sudden and
unexpected $2bn takeover manoeuvre for Dick-
son’s firm from UK based rival Subsea 7 which
would have required McDermott, if they had
accepted the bid, to pull out of their own ongoing
CB&I transaction.
“Subsea 7 came and shocked us all with this
arabianoilandgas.com
 COVER INTERVIEW

29

arabianoilandgas.com JUNE 2018

 COVER INTERVIEW
offer that came in from leftfield. Obviously the
offer just wasn’t compatible to the value of the
combination it would create, so that’s why then we
responded with rejecting it.
“I think the concern everybody had was nor-
mally you would anticipate that a counter offer
would come, and time-wise we were running out
of time and, much to say, Subsea 7 were running
out of time. If you read our business combination
agreement, you’ll see that legally we could not
have discussions with Subsea 7’s management,
even though Subsea 7 kept on saying in the press
they wanted us to engage in discussions - and they
knew, legally, we couldn’t engage in discussions.”
Dickson continues that there would have been
no point to the discussions in any case, describing
Subsea 7’s offer as “low” and a “discount to our 52
week high”. Dickson suggests a further offer had
been expected, and indeed that might have been
the only way any interest could have been sus-
tained, but he mentions the strong support from
McDermott’s own shareholders when approving
the arrangement with CB&I, as attention from
Subsea 7 “fizzled out”.
30 When asked about the rationale surrounding
The Amazon,
the British firm’s eleventh hour bid to take over
an offshore McDermott, Dickson states the move was most
construction likely based on a consolidation play. In fact, many
vessel. industry experts estimated that if Subsea 7’s bid
JUNE 2018
“WHEN THE CB&I OPPORTUNITY
CAME ALONG, IT JUST TICKED
SO MANY BOXES FOR US THAT
IT WAS SOMETHING THAT WE
REALLY WANTED TO MOVE FOR-
WARDS WITH…”
had been successful, its acquisition of McDermott
would have created a new market leader in the
subsea oil and gas EPC sector, outstripping other
global operators like TechnipFMC and Saipem.
Dickson is self-effacing when theorising as to
why McDermott was singled out for Subsea 7’s
attentions referring to the fact his firm had enjoyed
“a good run over the past couple of years” and
it had achieved wins in marketplaces that have
proved lucrative for some of its rivals, such as in
Mauritania, where the EPCI operator has earned
a subsea deal alongside consortium partner Baker
Hughes, a GE Company, from oil supermajor BP.
When Dickson took over at McDermott in Octo-
ber 2013, the company was not in such good shape.
It had a raft of loss-making projects, which have
mostly been turned around as part of an extended
financial restructuring strategy, and the manage-
ment team has also been overhauled.
Similarly, CB&I is a firm that has been ham-
strung by several poor-performing projects and,
prior to the completion of the McDermott deal,
had debt levels in excess of its full company value
– with some estimates suggesting more than $2bn
worth of liabilities. The firm had to announce a
$548mn charge at the end of Q2 2017, related to
four engineering projects.
In an interview with another news outlet earlier
this year, Dickson drew parallels between the
McDermott he took over and the current state of
CB&I’s books and emphatically stated that “every-
thing is fixable.” He would utilise the McDermott
“playbook” to turn CB&I around.
Dickson’s intricate reasoning for McDermott’s
merger with CB&I highlights a lot of comparisons
between the two firms and he has been exploring
the potential deal for a while.
“My push for the CB&I thing wasn’t an overnight
pipedream, it was something we had been working
on since 2016. Strategically, I wanted to diversify
the offer McDermott had to the marketplace and
obviously CB&I bring that diversification.”
Dickson says he tapped into his own experi-
ence from his time at Technip to inform him in
arabianoilandgas.com

the lead-up to the CB&I deal. He had seen how
diversification and technology enabled the busi-
ness to grow and strengthen across both upstream
Dickson and downstream sectors. He led the French based
addresses firm through its acquisition of Stone & Webster,
Mcdermott’s
employees
the technology division of the Shaw Group, in
following the 2012 for more than $200mn and he recognised
merger. how this purchase had helped expand Technip’s
downstream activities in the US and pushed it into
Dickson spoke additional territories.
at an event
held at Minute
“When the CB&I opportunity came along, it just
Maid Park in ticked so many boxes for us that it was something
Houston. that we really wanted to move forward with and
fortunately we persuaded their management and
board that this was a better solution for CB&I
rather than just selling their technology business,
so this made a lot of sense and a lot of points.”
One key factor behind the tie-up was the chance
for McDermott to position itself in the growing
liquefied natural gas (LNG) business, a segment
that Dickson says he knows well despite his own
firm’s current lack of footprint in the segment.
He believes that combining McDermott’s offering
in modularisation, which it had demonstrated in
providing modules at the Yamal LNG facility in
Russia for instance, alongside CB&I’s knowledge
and capability in the sector could create a market-
leading proposition.
McDermott’s combination with CB&I might
arabianoilandgas.com
COVER INTERVIEW
have filled column inches recently but the oilfield
services industry has historically been rife with
mergers and acquisitions (M&A) activity. Early
last year, Technip merged with US based FMC
Technologies. In the EPC sector the Wood Group
recently completed the purchase of the UK’s Amec
Foster Wheeler.
Leading industry figures seem divided as to the
merits of such moves with Subsea 7’s chairman
Kristian Siem, perhaps unsurprisingly, advocating
more consolidation as a means to protect against
choppy economic waters, while others, such as
Luis Araujo, CEO of Aker Solutions, openly ex-
pressed his concern at the ultimately vain attempt
by Subsea 7 to acquire McDermott, pointing to a
reduction in competition if such deals succeeded.
Dickson is keen to emphasise that his company’s
deal with CB&I has little to do with consolidation
and everything to do with diversifying its offering
to the market. Of course, with the climate seem-
ingly right for M&As, there is surely the possibil-
ity that Subsea 7 will be back? Dickson is far from
convinced.
Subsea 7 may have been looking for consolida-
tion, but the CB&I deal has changed the landscape, 31
“Now with McDermott, the look is completely
different because two thirds of our revenue is going
to come from onshore EPC type projects which is a
distance away from what Subsea 7 does today.”
Dickson feels the value of the newly merged
business could also prove challenging as McDer-
mott and CB&I have a combined worth comparable
to Subsea 7. The British based firm would now have
to contemplate diversifying its business significant-
ly if it pursued a purchase of McDermott, whereas
JUNE 2018
 COVER INTERVIEW
32
its previous rationale was based on subsea and
McDermott ‘s
main fabrica-
offshore synergies.
It is clear David Dickson’s focus is firmly on
tion yard in the what the future means for the newly enlarged
Middle East
is presently
entity he is about to lead. McDermott has had a
at Jebel Ali,
strong presence in the Middle East for many dec-
ades including a long-standing relationship with
Dubai.
oil giant Saudi Aramco.
McDermott’s CEO reveals that the world’s
leading oil exporter is his firm’s biggest global
customer and suggests that the Houston based
multinational is most likely regarded as Aramco’s
favoured offshore contractor. But Dickson refer-
ences other strong regional interests includ-
ing with the Abu Dhabi National Oil Company
(ADNOC) and he mentions that McDermott can
provide a good alternative option to the National
Petroleum Construction Company, which has a
close tie-up with ADNOC.
McDermott has also shown interest in the gas
fields of the Mediterranean located off Egypt and
Cyprus but, as yet, has not managed to secure
deals in those areas, with Rome based supermajor
Eni choosing to give fellow Italian outfit, and a
firm in which it holds a minority holding, Saipem,
key contracts.
But Dickson has concrete grounds for optimism
JUNE 2018
“IT’S CLEAR THAT SOME-
WHERE BETWEEN 2023 AND
2025, THERE’S GOING TO BE A
SIGNIFICANT UNDERSUPPLY
OF LNG IN THE GLOBAL MAR-
KETPLACE AND THAT’S WRIT-
TEN EVERYWHERE. SHELL ARE
WRITING ABOUT IT, BP ARE
WRITING ABOUT IT, EVERY-
BODY…”
and he says the EPC sector has enjoyed a definite
“uptick” recently and he points to the McDermott
“revenue pipeline” (a combination of the firm’s
backlog, on-going bids and future targeted bids)
rising 25% over the past two quarters. The firm’s
front end engineering design business has grown
noticeably, according the CEO, and this too repre-
sents a sign that the EPC sector is starting to spring
back into life.
Dickson also gives the example of regional giants
Aramco and ADNOC, saying both have been very
vocal about “major incremental projects” in the
near future, with the former keen to develop its
arabianoilandgas.com
 COVER INTERVIEW

sizeable Berri and Marjan oilfields, located off the

Dickson kingdom’s east coast.
described the
But McDermott’s senior executive is also looking
completion of
the CB&I deal as several years into the future – and this is where
an “exciting day” LNG becomes a key focus and opportunity.
for the firm. “It’s clear that somewhere between 2023 and
2025, there’s going to be a significant undersupply
of LNG in the global marketplace and that’s writ-
McDermott’s
management ten everywhere. Shell are writing about it, BP are
team on board writing about it, everybody, and bearing in mind an
the Amazon LNG project is anywhere between five and seven
vessel at years to develop, those projects that need gas in
Jebel Ali.
2023 or 2025, really need to move to FID (final
investment decision) in the next one to two years.
So, again, that’s why I’m really excited about the
combination with CB&I.”
Dickson refers to 2023 and, by then, leading
industry organisations such as the International
Energy Agency believe the United States will
have become the world’s leading oil producer as it
pushes aggressively forwards with its drive for en-
ergy self-sufficiency. Both Saudi Arabia and Russia
will have been overtaken as US tight oil production
helps provide a defining sea change in the industry. cause of CB&I’s presence across petrochemicals
How would the emergence of the US as the and LNG in the US and I’ll expect that to con- 33
world’s hydrocarbon leader affect McDermott – a tinue on, so that will be a shift change for us.”
firm that has focused so much of its attention, over It’s clear that while the MENA region will
decades, on the Middle East? Energy consultancy remain a priority for the firm, and its develop-
Rystad Energy calculates that as much as 90% of ment of a new maritime production facility at
the Houston based firm’s business emanates from Ras Al Khair in Saudi Arabia, which could be
the Middle East and Asia. operational by 2021, is a key commitment, Dick-
“If you look at the new company moving son emphasises that CB&I’s impact on the new
forwards, our largest area now becomes the US be- entity creates more global “balance”.
Much of the debate around global production
has centred on the conflicting policies of accel-
erated US output versus the cutbacks initiated
by Saudi Arabia and Russia and the potential
impact on market share. But David Dickson is
looking past all this and sees positive synergies
that clearly bode well for McDermott’s future
plans as it moves forward as a more diverse op-
eration, with a bigger international footprint.
“At the end of the day, as you look longer-
term, and you can only talk about up to 2040,
but there will still be a huge increase in demand
for fossil fuels, whether that’s oil or gas. So,
I don’t think market share becomes an issue,
I think it’s more about global demand versus
global supply and even with the increase coming
out of the US, you’ll still need growth in areas
elsewhere around the world just to meet the
future demand.”

arabianoilandgas.com JUNE 2018

 30
TOP 30 EPC CONTRACTORS

OIL & GAS

MIDDLE EAST
REVEALS THE
FIRMS THAT
HAVE BEEN
REDEFINING
ENERGY
PROJECTS IN
THE REGION

34 CONTRACTORS So, another year passes and the landscape in

the oil and gas sector looks rather different to how it
did 12 months ago, as we once again pull back the curtain
to reveal the great and the good of the engineering, procurement
and construction (EPC) segment in our annual list of the Top 30 EPC
Contractors in the Middle East.
If upstream operators were clutching their purse strings rather tightly as
the summer months arrived in the Arabian Gulf in 2017, they might be loos-
ening their grips a little this year. The oil price has risen more than 50% in the
intervening period and it brings welcome headroom for development
projects to kick on once more.
Our bigger players have once again landed some whopping deals right across the
upstream industry, from major gas development tie-ups to midstream pipeline
projects, while consolidation has also been the name of the game - as big beasts
have combined to form even larger entities and it will be interesting to see,
come 2019, how the playing field will look.
As ever, the usual methodologies have been utilised to assess these
firms such as the size of deals made, revenues earned and, also, as
mergers and acquisitions have hit the headlines, future potential
and scale. We hope you enjoy this ultimately idiosyncratic
journey through the region’s main
EPC runners and riders.

JUNE 2018 arabianoilandgas.com


PETROFAC
W
hat a difference a year
makes. 12 months ago,
the Jersey registered
firm was embroiled
in legal scrutiny over its dealings
with Monaco’s Unaoil and, despite
those enquiries continuing, the EPC
operator has nevertheless gone from
strength to strength, securing all
manner of contracts, not only within
the Middle East but also in both the
upstream and downstream segments.
Petrofac’s order backlog has
pushed through the $10bn mark
arabianoilandgas.com
and highlights in its confirmed
order book include two deals in
Iraq, one for a crude export facility
offshore the Al Fao Peninsula and
another to operate the expanding
Majnoon oilfield alongside China’s
Anton Oilfield Services (remember
that name).
But this is just the start – the
firm, headed up by Ayman Asfari,
has also landed some big tickets
deals such as an $800mn contract
from supermajor BP for the second
planned phase of the major Khaz-
TOP 30 EPC CONTRACTORS
zan gas project in Oman. Petrofac
will help spike production from
the central processing facility to
around 1,500 million standard
cubic feet per day.
The firm has penned a ten-year
association with Petroleum Devel-
opment Oman, which has already
fashioned a significant downstream
contract, while it also has on-going
key projects in Kuwait. Expect even
more – Petrofac is actively tender-
ing and it rightly deserves our Top
30 EPC Contractors top spot.
35
JUNE 2018
 TOP 30 EPC CONTRACTORS
LARSEN & TOUBRO
I
ndia’s L&T is a global conglomerate with impressive
reach – its total revenue of $17bn last year is a testa-
ment to that. L&T Hydrocarbon Engineering (LTHE)
is the firm’s oil and gas arm and it has been very visible
in the past year. Its most recent award came from Saudi
Aramco as part of a consortium with Subsea 7 for three
gas production deck modules. The consortium has four
on-going projects in the kingdom.
Earlier this year, LTHE signed a major field develop-
ment EPC contract with Abu Dhabi’s Al Dhafra Petro-
leum Operations Company, worth in excess of $342mn.
The scope of the contract includes the commissioning of
flow lines, gathering facilities and pipelines to transfer
crude oil and gas from the Haliba oilfield to a processing
facility at Asab.
LTHE also snared a big-ticket tie-up with the Kuwait
Oil Company last year when it was chosen to build a crude
oil transit pipeline from North Kuwait to Ahmadi, with a
Q3 2020 completion date. The deal is worth $262mn.
36
WOOD
A
berdeen’s Wood may have lost “Group” from its
name but it has acquired an entire rival engineer-
ing and project management firm, itself a top ten
entry in this list last year, in the process.
Wood’s purchase and absorption of Amec Foster
Wheeler, a firm that had 35,000 employees and revenue of
more than $7bn in 2016, creates a genuine EPC sector big
beast. The entity’s expanded global footprint could well
see Wood getting among the medals in our list next year.
But the past 12 months have been about more than just
acquisitions. Earlier this year the firm trousered a much-
coveted new multi-million dollar, five-year contract to sup-
port Saudi Aramco in the delivery of one of its mega-pro-
JUNE 2018
SNC-LAVALIN
M
ontreal’s SNC-Lavalin has slipped from our top
spot this year but this is more a reflection of
the activity of its rivals rather than a diminu-
tion of its regional presence.
SNC-Lavalin has projects right across the Middle East
but Saudi Arabia is a rich seam. As a case in point, the
firm’s subsidiary in the kingdom has been awarded a five-
year framework agreement to provide general engineer-
ing services to Al Khafji Joint Operations (KJO), a joint
venture between the Aramco Gulf Operations Company
and the Kuwait Gulf Oil Company.
KJO is responsible for oil and gas exploration, devel-
opment and production in the offshore area close to the
Saudi-Kuwait border. The signed agreement will cover
both on-shore and off-shore engineering projects.
The main headline over the past year has surely been
the sealing of the $2.7bn acquisition last year of the UK’s
WS Atkins, a design, engineering and project manage-
ment consultancy. SNC-Lavalin now contains 50,000 em-
ployees and expects revenue in excess of $9bn this year.
jects, providing engineering
and project management
services to develop the
Marjan oilfield.
The front end engineer-
ing design (FEED), major
increment and overall project
management consultancy will be ex-
ecuted from Wood’s Reading, UK, Khobar, Saudi Arabia
and India offices.
Wood is present in seven countries across the Middle
East including the UAE, Kuwait, Iraq and Kuwait and
maintains almost 4,000 regional staff.
arabianoilandgas.com
 TOP 30 EPC CONTRACTORS

MCDERMOTT SAIPEM

A M
year ago McDermott was comfortably nestled ilan based
in our top ten. But now it has started to move Saipem has
– upwards. The main reason? Its merger with a presence
another member of last year’s top thirty, the Chi- in 66
cago Bridge and Iron Company (CB&I). The deal, valued countries around
at around $6bn, ticks some key boxes for McDermott. the world and a
Speaking exclusively to Oil & Gas Middle East (see pages backlog push-
28-33), the firm’s president and CEO David Dickson said ing $15bn, so its
the combination with CB&I gives his firm a wider, more sheer scale is
balanced global footprint and diversifies its offering into going to keep it
areas such as onshore EPC work and the LNG sector. at the business end
of any EPC power
list. The firm’s most
eye-catching upstream
deal in the past year has to be its
offshore contract variations worth $900mn for engineer-
ing, procurement, construction and installation (EPCI)
activities in relation to the optimised ramp up phase of
the supergiant Zohr Field Development Project situated
in the Mediterranean Sea off the Egyptian coast. The
firm has also secured major downstream contracts in 37
Oman and Kuwait.

NPCC WORLEYPARSONS

A F
bu Dhabi’s National Petroleum Construction amiliar global
Company is the first locally based firm in our list. player Worley-
It certainly has a tempting local market to tap into Parsons has been
and it has had a long-standing relationship with active across up-
the Abu Dhabi National Oil Company but the NPCC has stream and downstream
cast its net widely and in January it pocketed a $327mn sectors in the region.
EPC deal from India’s ONGC for five well platforms and Recently, the Australian
a pipeline at the offshore Ratna oilfield. NPCC also has outfit snared a five-year
current projects with Saudi Aramco but sees the king- EPC deal from BP Oman,
dom as key to its expansion drive and plans to build a in a joint venture with
fabrication yard in the country. Special Technical Ser-
vices, for modification
and sustaining capital
works at the Khazzan
gas facility in Oman. But a cornerstone of its Middle
Eastern activities is its on-going engineering services
deal with Saudi Aramco. In 2017 the firm was awarded
project management and FEED services for the offshore
oil and gas facilities portion and the onshore upstream
and downstream pipelines portion of Aramco’s Marjan
Oil Field Development Programme.

arabianoilandgas.com JUNE 2018

 TOP 30 EPC CONTRACTORS

KBR TECHNIPFMC

T T
his former Halliburton subsidiary is one of our he result of
big movers and has been prominent in the region. yet another
Last summer, Occidental Abu Dhabi on behalf of merger
ADNOC awarded KBR a PMC deal for the man- in the
agement of the FEED phase of the Dalma gas field devel- EPC segment,
opment and the detailed design and surveys phase of the TechnipFMC
Hail and Ghasha Islands project. Our new addition to the is a big gun
top ten has also just won an engineering, procurement, eyeing up
construction and management contract from the Basra global deals.
Oil Company regarding Iraq’s Majnoon oilfield and has Revenues of
also secured a FEED and project management agreement $15bn last year
from Oman LNG. and a backlog
not too far behind
prove that but the past
12 months have been pretty
quiet in terms of upstream EPC deals in the Middle East.
The UK based firm did secure a FEED contract from
ADNOC for the offshore Dalma sour gas project, a key
component of the oil major’s wide-ranging 2030 strat-
egy, but the main headlines were reserved for its $4.2bn
38 downstream deal in Bahrain for the expansion of the
Sitra refinery.

GALFAR MOTT MACDONALD

A
nother local firm, this Omani outfit might not
have the global clout of some of the companies it
is ahead of in this list, but its activity in the sul-
tanate is prolific. The firm employs 23,000 people
and claims to be the single largest employer of Omanis in
the private sector. Deals wise, Galfar’s ravenous appetite
is shown by the fact it has secured three contracts since
the start of the year, worth in excess of $200mn in total,
from BP, Petrofac and Daleel Petroleum. Galfar also has

T
previous his UK based firm has 1,500 staff in the Middle
sig- East working across various industry sectors. The
nificant past year has been a quiet one for Mott Mac but,
tie-ups in despite this, the company has a sizeable regional
its pocket presence. It carries out multidisciplinary engineering
cour- work for Alghanim International in Kuwait, while in Iraq
tesy of it provides engineering and procurement services at the
Petroleum Xarajyan oil terminal. It has a PMC contract for work
Devel- on ADNOC’s onshore gas project at the North East Bab
opment field. A five-year arrangement to deliver maintenance
Oman and development of the Khafji oilfield in Saudi Arabia is
(PDO). set to expire.

JUNE 2018 arabianoilandgas.com

 TOP 30 EPC CONTRACTORS

JGC CORPORATION CCC JACOBS

T T
his Japanese outfit has landed
big deals in North Africa in re-
cent years and these on-going
projects keep it in the top half
of this list. Last June, the company
won a $642mn deal from Algeria’s
Sonatrach for the construction of
crude oil gathering and processing
facilities in the north of the Hassi
Messaoud district. The firm also pos-
sesses an impresive $1.1bn agreement
to boost output at Algeria’s Hassi
Rmel gas field.
he Palestinian founded and
Athens based Consolidated
Contractors Company owed
its presence in this list last
year to its share of the $4bn con-
tract secured by market leader and
associate Petrofac at the Lower Fars
heavy oil development programme in
Kuwait but in December, CCC, again
alongside partner Petrofac, nabbed
part of an $800mn deal at the Gha-
zeer gas field, phase two of the giant
Khazzan project in Oman.
T
his Fortune 500 firm from
Dallas has been punching be-
low its weight in the regional
EPC sector – but now it is
firmly on the move. In April, Saudi
Aramco handed it an engineering
and project management services
deal for the Zuluf Field Development
Programme, while earlier in the year
it won an EPCM contract at the key
Khazzan tight gas project in Oman.
It has also found time to acquire rival
CH2M for $3.3bn.

39

DODSAL GROUP BECHTEL CPECC

L S
ike Bechtel below it, the UAE
based Dodsal Group is an
exciting new entry to our list
and enjoys much success in
North Africa. Last June its long-time
collaborator, Sonatrach, awarded
Dodsal a whopping $1.1bn deal to
develop a gas-oil separation and
compression centre on the periphery
of Hassi Messaoud. The facility is
due to be completed in 2020. Dodsal
has also worked in several LNG pro-
jects in Algeria.
an Francisco’s Bechtel Corpo-
ration is the biggest construc-
tion firm in the US accruing
revenue of almost $33bn
last year. It has landed some big
downstream deals in Egypt and also
has an EPC contract for BP’s West
Nile Delta onshore gas processing
terminal but its most eye-catching
deal came in February when it was
awarded a FEED contract for work
on the Hail and Ghasha sour gas
fields by ADNOC.
T
he China Petroleum Engineer-
ing & Construction Corpora-
tion maintains a solid regional
presence and it was the firm
behind the construction of the strate-
gic Habshan – Fujairah pipeline but
late last year it pocketed a large EPC
deal from ADNOC to lift production
capacity at the onshore Bab oilfield
by 30,000 barrels per day (bpd) to
450,000 bpd. Reports suggested the
deal was worth $1.5bn. CPECC is
actively tendering for regional deals.

arabianoilandgas.com JUNE 2018

 TOP 30 EPC CONTRACTORS
LAMPRELL
2 O
017 was a challenging year for
this UAE based rig maker as
it had to write down $80mn
due to mounting costs at a
renewable energy project in the UK.
But the firm has an order pipeline of
$3.6bn and it is part of a huge $5bn
maritime joint venture, Interna-
tional Maritime Industries, alongside
industry heavyweights like Ara-
mco Developments and Hyundai. A
fabrication yard is currently being
developed near Jubail.
40
SUBSEA 7
T T
his subsea umbilicals, risers
and flowlines (SURF) specialist
purchased Emas Chiyoda Sub-
sea (ECS) last year to increase
its presence in the Middle East, as
ECS has three on-going projects in
Saudi Arabia alongside L&T, includ-
ing offshore platforms for Aramco.
The firm has also completed a subsea
EPCI contract offshore Egypt for a
BP joint venture in a deal worth up to
$300mn and including constructing a
40-kilometre pipeline.
JUNE 2018
OIEC
il Industries’ Engineering &
Construction is a major Ira-
nian EPC outfit and new to
this list. The firm has secured
some major wins such as a $1.8bn
deal at the Azar oilfield development
involving pipeline construction,
central processing facilities and flow
lines for 17 wells. It is also designing
and constructing the NGL 3100 plant
– a natural gas liquids facility – near
the oil production unit of Cheshmeh
Khosh, outside the city of Dehloran.
HYUNDAI
ENGINEERING
his South Korean EPC firm
has an established presence
in the region, both upstream
and downstream, and one of
its biggest on-going projects is the
downstream ethane and propane
Uthmaniyah facility being established
by Saudi Aramco. But the firm is also
a part of the Al Zour LNG project in
Kuwait, which is currently seeking
$3.3bn in investment and will include
a regasification unit and a total of
eight storage tanks.
TECNICAS REUNIDAS
T
he past year has largely been
about downstream deals for
this major Spanish EPC opera-
tor with big wins at the Sitra
refinery in Bahrain and in Oman
at Duqm. A notable upstream deal
arrived in November as Tecnicas
Reunidas landed a very significan
contract from Saudi Aramco, worth
more than $2bn, to construct three
gas compression facilities as part of
the Gas Compression Programme in
the Southern Area.
PUNJ LLOYD
T
his Indian conglomerate from
Haryana is heavily involved
in pipeline construction. It
secured a contract for build-
ing 459 kilometres of the ambitious
TANAP pipeline project in Turkey as
part of a joint venture early last year,
while it is also constructing two 300
kilometre long pipelines for Orpic
and the Oman Gas Company – one
carrying natural gas, the other NGL –
in the sultanate after being awarded a
$304mn deal.
arabianoilandgas.com

FLUOR
F S
luor has been providing EPC
expertise in the Arabian Gulf
for decades and it remains
a major player in the down-
stream sector with large-scale
projects in Kuwait and a recent win
in Egypt. But its upstream presence
is minimal and consequently it is
slipping down our rankings. Its main
contract is a PMC with the Kuwait
Oil Company, which has spanned 15
years and covers safety, efficiency
and mentoring.
ANTON OILFIELD
SERVICES
T O
his Chinese firm currently
has a project in southern Iraq,
worth $140mn, to provide
workover and completion ser-
vices for more than 160 wells. But in
April, alongside our top ranking EPC
firm Petrofac, it secured an impres-
sive deal to operate Iraq’s Majnoon
oilfield – one of the country’s giant
fields and where production is cur-
rently 240,000 bpd with plans to
spike to 450,000 bpd within the next
three years.
arabianoilandgas.com
SAMSUNG
ENGINEERING
amsung Engineering has
been prolific in securing huge
deals in the downstream sec-
tor from all of the region’s
oil giants including, most recently,
ADNOC and Saudi Aramco. The
Korean firm headquartered in Seoul
may have just delivered on its EPC
contract at Algeria’s Timimoun gas
field development, where it built a
gas oil separation plant, but it is go-
ing to have to raise its game to stay in
this list next year.
BONATTI GROUP
ne of several Italian firms,
including fellow EPC outfit
Saipem and supermajor Eni,
that has a presence at the vast
Zohr gas field offshore Egypt. Bonatti
won an electrical and instrumentation
contract last November and this fol-
lowed a similar award to its subsidi-
ary Carlo Gavazzi Egypt from Bechtel
a few months before. The firm has
eight on-going projects in key market
Algeria, as well as a presence in Iraq
and Libya.
TOP 30 EPC CONTRACTORS
SEEH AL SARYA
ENGINEERING
S
AS, founded back in 1999, is
one of a number of Omani
firms entrusted to carry out
work by PDO as part of its
strategic localisation push. SAS took
a share of two four year contracts
worth a very sizeable $779mn to
provide off-plot mechanical work at
oilfields run by PDO at Fahud, Le-
khwair and Yibal in 2016 and these
are presently on-going. As part of the
tie-up, SAS will generate hundreds of
local jobs.
41
TARGET
ENGINEERING
T
his Arabtec Holdings subsidi-
ary has operations across the
Arabian Peninsula including in
Saudi Arabia. The firm has four
divisions covering civil, mechanical,
electrical and marine works. Accord-
ing to its website, it is carrying out
EPC work on a causeway pipeline
project at the Mubaraz Island oilfield
in Abu Dhabi for the Japanese owned
Abu Dhabi Oil Company. Target also
has a controlling stake in Italian ma-
rine EPC firm IDROTEC.
JUNE 2018
 AWARDS COVERAGE
MEET OUR
42
NICHOLAS KJAER
General manager – Middle East,
Churchill Drilling Tools
After earning his Bachelor of Engineering (Chemical) and
Master of Engineering (Petroleum), Nicholas Kjaer started
his career in global oilfield services giant Schlumberger, ini-
tially working as a field engineer in drilling services for four
years, before moving into management. Kjaer spent ten years
with Schlumberger in multiple locations around the world
managing drilling operations.
Later on, Kjaer moved from upstream into midstream/
downstream and held various senior leadership positions
within the oil and gas and power sectors, at major corpora-
tions and small start-ups.
In 2015 Kjaer joined Churchill Drilling Tools as the
general manager for the Middle East, tasked to open up and
expand the region for the Aberdeen headquartered company.
Kjaer is a strong advocate of bringing innovative technol-
ogy to the oil and gas industry and since its inception in the
region, Churchill Drilling Tools has subsequently expanded
into numerous countries.
Kjaer has been residing in the Middle East since 2001.
Category Sponsors
JUNE 2018
BEN OUDMAN
Regional manager (CEMEIA),
DNV GL Oil & Gas
Ben Oudman is the regional manager for DNV GL Oil & Gas
covering a wide area encompassing continental Europe,
Eurasia, the Middle East, India and Africa. Oudman is also
part of the executive leadership team for DNV GL’s Oil & Gas
business area, leading a 500-strong team of experts serving a
diverse range of hydrocarbon sector clients.
Oudman has a Master of Science degree in Mechanical
Engineering from Delft University of Technology in the
Netherlands and a wealth of experience in managing teams
of technical professionals in the fields of innovation, research
and development, product and process quality management,
and safety in the gas and consumer goods industries.
He joined DNV GL in 2013 and has held senior positions in
Phillips and Kiwa Technology. Oudman was previously the
country manager, Oil & Gas, for the Netherlands, leading 100
technical professionals organised into six sections covering
technical advisory, technical assurance-verification and risk
management advisory services across the gas value chain,
liquefied natural gas (LNG) and pipeline segments.
arabianoilandgas.com
 AWARDS COVERAGE

PANEL
This month we reveal the six individuals who will
constitute our jury and who will ultimately decide
the destination of the prizes in our ninth Oil & Gas
Middle East and Refining & Petrochemicals Middle
East Awards. We have assembled an experienced and
highly knowledgeable group of industry experts who
represent a broad cross-section of the upstream and
downstream sectors.

ANNABEL GREEN LUCIANO POLI 43

Chief technology officer, President, India, Middle East and Turkey,

Tendeka
Annabel Green is currently CTO with independent global
completions service company Tendeka and is responsible for
a diverse technology portfolio, including sand control, inflow
control and intelligent well management.
Green started her career with Schlumberger as an open-
hole logging engineer where she gained experience in opera-
tions, conveyancing systems and the gathering and interpre-
tation of petrophysical data.
She spent more than 14 years with Weatherford in numer-
ous technical and research and development roles. She
developed and commercialised several advanced completion
technologies and worked with multiple disciplines on the in-
tegration of downhole technologies, including sand control,
reservoir monitoring and production optimisation systems.
Green joined Tendeka in 2012 as product line director –
wirelines technologies. She graduated from Leeds University
with a degree in Mechanical Engineering and holds several
patents. She is the co-author of a number of sand control and
completion related Society of Petroleum Engineers papers.
Dow Chemical Company
In November last year, Dow appointed Luciano Poli as its
president for India, Middle East and Turkey. Poli took on
the position with a commitment to drive the firm’s growth
strategy, further enhance Dow’s leadership and strengthen
key strategic partnerships across the region.
He has been involved in Dow’s Middle East operations for
20 years. Previously, Poli was the global finance leader for
joint ventures and area finance director for Europe, Mid-
dle East and Africa. Prior to that, he worked across diverse
regions and held various treasury and finance positions in
Switzerland, South Africa, Spain, China and Saudi Arabia.
Poli’s career at Dow has encompassed mergers and acqui-
sitions, mega project management and joint ventures. In an
earlier role as chief financial officer of the Sadara Chemical
Company, the largest chemical complex ever built in a single
phase, with 26 integrated world-scale manufacturing plants,
he was based in Saudi Arabia where he was involved in the
financing and initial construction phase of this mega project.
Poli is based at Dow’s regional headquarters in Dubai.

Category Sponsors

arabianoilandgas.com JUNE 2018

 AWARDS COVERAGE
44
REBECCA LIEBERT
President and CEO,
Honeywell UOP
Rebecca Liebert has been the president and CEO of Hon-
eywell UOP since April 2016. She previously served as vice
president and general manager of UOP’s catalysts, adsor-
bents and specialties business.
Prior to that, she was vice president and general manager
of the company’s gas processing and hydrogen business,
tripling sales in only three years to more than $1bn annually.
Liebert joined Honeywell UOP in 2012 from Honeywell’s
electronic materials business and she joined Honeywell itself
in 2006 from Alcoa, where she was president of Reynolds
Food Packaging.
Liebert also previously served as business director for the
solid polystyrene and high performance polystyrene business
of Nova Chemicals. She began her career at Arco Chemical
Company as a development engineer. She holds a bachelor’s
degree in Chemical Engineering from the University of Ken-
tucky, a doctorate in Chemical Engineering from Carnegie
Mellon University, and an MBA from the Kellogg School of
Management at Northwestern University.
Category Sponsors
JUNE 2018
VIVEK CHANDRA
CEO and founder,
Texas LNG
Vivek Chandra is the CEO and founder of Texas LNG, a
developing 4 million tonnes per annum LNG export project
in South Texas, USA.
Chandra’s 30 years of international global gas experience
includes roles in both large and small energy companies, as
well as government organisations. He has worked on com-
mercial matters with LNG import, LNG export, as well as gas
pipeline projects.
He is the author of Fundamentals of Natural Gas: An
International Perspective published by Pennwell and he has
taught the Natural Gas Dynamics seminar, held around the
world and offered online.
Chandra holds a BSc degree in Geophysical Engineering
from the Colorado School of Mines, an MSc in Petroleum
Energy Management and Policy from the University of
Pennsylvania, a Diplome D’Ingenieur in Petroleum Econom-
ics from the French Petroleum Institute (IFP) and a Master’s
in Commercial Law from Deakin University, Australia. He is
also pursuing a PhD in International Law.
arabianoilandgas.com
 WEDNESDAY 12th SEPTEMBER 2018
Dubai, UAE
www.arabianoilandgas.com/oil-gas-awards
#OAGawards

nomination deadline
thursday 26th july
save the date for an exclusive gathering of energy
executives at the 9th annual OIL & GAS MIDDLE EAST AND
REFINING & PETROCHEMICALS MIDDLE EAST AWARDS

CATEGORY SPONSORS MEDIA PARTNERS

For more information contact one of our team today

FOR NOMINATION ENQUIRIES, FOR SPONSORSHIP ENQUIRIES, FOR BOOKING ENQUIRIES, FOR EVENT ENQUIRIES,
PLEASE CONTACT: PLEASE CONTACT: PLEASE CONTACT: PLEASE CONTACT:

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Editor – Oil & Gas Middle East MARK GRENNELL TERI DUNSTAN SOPHIE MCHUGH
Tel: +971 4 444 3264 Senior Sales Manager, Refining & Petrochemicals Middle East Table Sales Executive Events Manager
Email: jonathan.miller@itp.com Tel: +971 4 444 3202 Tel: +971 4 444 3227 Tel: +971 4 444 3223
Email: mark.grennell@itp.com Email: teri.dunstan@itp.com Email: sophie.mchugh@itp.com
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Editor – Refining & Petrochemicals Middle East
Tel: +971 4 444 3192
Email: martin.menachery@itp.com
 PROJECT FOCUS

ADNOC
LNG - IGD
Expansion at
Das Island
T
he former Abu Dhabi Gas Liquefaction Com-
pany (ADGAS), now ADNOC LNG, is planning
to implement integrated gas development
(IGD) expansion E1 and E2 at Das Island. This pro-
ject is a part of the company’s target to increase
gas production to 2.4bn standard cubic feet (scf)
per day by 2017.
Das Island sits in the Persian Gulf and is situ-
ated approximately 160 kilometres north-west
of mainland UAE. The small rectangular island is
mostly used for the production of hydrocarbons.
Both crude oil and LNG are exported from Das
Island with ultimate destinations including Japan
46 and Europe.

PROJECT SCOPE
The scope of work for IGD-E overall includes:
• Integrated gas development expansion of the existing
facilities
• Expansion/construction of the pipeline
• Associated facilities
The phase 2 will mainly focus on the works related to
pipeline.

PROJECT FINANCE
ADNOC LNG (previously referred to as ADGAS) is the
project client.

CONTRACTORS

Contract Type Pre-Qualified Bidders Awarded

PMC - - • KOC - Kuwait Oil Company

• Tecnicas Reunidas • Tecnicas Reunidas

• Petrofac • Petrofac
EPC • NPCC - National Petroleum • NPCC - National Petroleum -
Construction Company Construction Company
• Maire Tecnimont • Maire Tecnimont

JUNE 2018 arabianoilandgas.com

 PROJECT FOCUS

PROJECT STATUS

Date Status
Budget: ADNOC LNG is evaluating the technical bids and they cannot
Apr 2018
$450mn disclose any further information.

Feb 2018 The bids were submitted during the second week of February.

The tendering is still in process. ADNOC LNG does not wish to

Jan 2018
disclose the bidders but it is certain that re bidding has started.

The tender has been floated again for the EPC contract. It is still
unclear if all the bidders are the same as last time or if different
Jan 2018
companies have been invited. It is certain that NPCC and
Petrofac are still bidding for this project as a JV.

Sep 2017 No further movement seen by contractors interested.

Aug 2016 The project is on hold.

47

Tender is closed and the project appears to be on hold at the

Mar 2016
moment. There is no movement with the EPC award.

The bidding for EPC contract is still in process and at final stage.
Dec 2015
The award will possibly happen in about 2 or 3 months.

The bidding for the EPC contract is currently in process. Mott

Sep 2015
MacDonald will be involved as PMC for this package 2 as well.

FAST FACTS
Name of Client
ADGAS - Abu Dhabi Gas Liquefaction Company
Estimated Budget ($ US)
450,000,000
Facility Type Q1-2012
Gas Field Development End Date
PROJECT SCHEDULE Sector Q1-2020
Gas Last Updated
Feasibility Study 1Q-2012 Status 25-04-2018
Engineering & Procurement 2Q-2018 EPC ITB PMC
Location Mott MacDonald
Construction 3Q-2018
Abu Dhabi Award Date
Completed 1Q-2020 Project Start Q2-2018

arabianoilandgas.com JUNE 2018

 PROJECTS

Ongoing and upcoming projects

Information is supplied by DMS Projects
GCC GAS – DECEMBER 2017
Completion
Project Country City/ Region Facility Budget Status
Date
ADMA-OPCO - Nasr Full Field Development - (Overview) U.A.E. Abu Dhabi Oil Field Development 1,700,000,000 Construction 2006-Q4

ADMA-OPCO - SARB Offshore Oil Field Development - Package 2 U.A.E. Abu Dhabi Oil & Gas Field 500,000,000 Construction 2010-Q1

ADNOC LNG- Integrated Gas Development (IGD) - Expansion (Overview) U.A.E. Abu Dhabi Gas Field Development 1,570,000,000 Construction 2012-Q1

ADNOC LNG- Integrated Gas Development (IGD) - Expansion (Phase 2) U.A.E. Abu Dhabi Gas Field Development 450,000,000 EPC ITB 2012-Q1

ADNOC Offshore - SARB Offshore Oil Field Development - Package 4 U.A.E. Abu Dhabi Gas Processing 455,000,000 Construction 2010-Q1

ADNOC Offshore - Upper Zakum Full Field Development - 750 Project - Surface Facilities U.A.E. Abu Dhabi Oil Production 4,200,000,000 Construction 2012-Q1
- EPC 2

ADNOC Offshore- 750 West Region- Capacity Expansion & Sulphate Reduction Plant- U.A.E. Abu Dhabi Oil & Gas Field 300,000,000 Construction 2012-Q1
EPC 3

ADNOC Sour Gas- Shah Field- Expansion U.A.E. Abu Dhabi Gas Network 9,500,000,000 EPC ITB 2016-Q1

Bahrain LNG - Liquefied Natural Gas Receiving and Regasification Terminal Bahrain Hidd Liquefied Natural Gas (LNG) 660,000,000 Construction 2008-Q1

Banagas - Central Gas Plant Expansion Bahrain Sitra Gas Treatment Plant 600,000,000 Construction 2014-Q1

BP - Block 61 - Ghazeer Field Development Oman Al Dahirah Gas Field Development 5,000,000,000 Engineering & Procurement 2007-Q4

BP - Block 61 - Khazzan Gas Fields Development - Phase 1 - Package 1 Oman Al Dahirah Gas Field Development 1,500,000,000 Construction 2007-Q4

Dolphin Energy - Northern Emirate Pipeline (NEP) U.A.E. Sharjah Gas Pipeline 150,000,000 FEED 2013-Q1

48 GASCO - Integrated Gas Development (IGD) - Expansion (Onshore Pipeline) U.A.E. Abu Dhabi Gas Production 7,100,000,000 Construction 2012-Q1

KIPIC - Al Zour LNG Import And Regasification Terminal Kuwait Al Zour Liquefied Natural Gas (LNG) 3,330,000,000 Engineering & Procurement 2013-Q4

KNPC - Mina Al Ahmadi Refinery Fifth Gas Train Kuwait Mina Al Ahmadi Gas Processing 1,500,000,000 Construction 2010-Q4

KOC - New Strategic Gas Export Pipeline From North Kuwait To Mina Al-Ahmadi Refinery Kuwait Northern Kuwait Gas 200,000,000 FEED 2017-Q1

KOC - North Kuwait Gathering Center (GC) 32 Kuwait Northern Kuwait Gas Gathering Centre 1,650,000,000 Construction 2014-Q1

KOC - North Kuwait Manifold Gathering System for Gathering Centers (GC) 29, 30, 31 Kuwait Northern Kuwait Gas Gathering Centre 2,500,000,000 Construction 2011-Q1

KOC - West Kuwait BS-171 Gas Sweetening Facility Kuwait West Kuwait Gas Treatment Plant 300,000,000 EPC ITB 2016-Q1

OLNG - Qalhat LNG Expansion Oman Qalhat Liquefied Natural Gas (LNG) 100,000,000 EPC ITB 2017-Q1

Orpic - Liwa Plastics Industries Complex - NGL Extraction Units Oman Sohar Natural Gas Liquefaction
(NGL) 700,000,000 Engineering & Procurement 2013-Q1

PDO - Kauther Depletion Compression Phase 2 (KDC2) Oman Al Dakhiliya Gas Compression 190,000,000 Construction 2014-Q1

PDO - Rabab-Harweel Integrated Plant (RHIP) - Overview Oman Harweel Gas Processing 3,000,000,000 Construction 2011-Q1

PDO - Saih Nahaydah Depletion Compression Phase-2 (SNDC2) Oman Saih Nihayda Gas Compression 180,000,000 Construction 2014-Q1

PDO - Saih Nihayda Condensate Stabilization Plant Oman Saih Nihayda Gas Treatment Plant 115,000,000 Construction 2011-Q3

Salalah Liquefied Petroleum Gas (SLPG) - Salalah LPG Extraction Oman Salalah Liquefied Petroleum Gas
(LPG) 650,000,000 Construction 2012-Q2

Saudi Aramco - Arabiyah and Hasbah Gas Field Development Saudi Arabia Arabiyah Gas Field 3,000,000,000 Construction 2008-Q1

Saudi Aramco - Fadhili Gas Plant (Overview) Saudi Arabia Eastern Region Gas Treatment Plant 6,600,000,000 Construction 2013-Q1

Saudi Aramco - Fadhili Gas Plant - Downstream Packages Saudi Arabia Eastern Region Gas Processing 650,000,000 Commissioning 2013-Q1

Saudi Aramco - Fadhili Gas Plant - Main Processing Facilities (Package 1) Saudi Arabia Eastern Region Gas Treatment Plant 2,500,000,000 Construction 2013-Q3

Saudi Aramco - Fadhili Gas Plant - Offsites & Utilities (Package 3) Saudi Arabia Eastern Region Gas Field 2,000,000,000 Construction 2013-Q1

Saudi Aramco - Fadhili Gas Plant - Sulphur Recovery Unit SRU (Package 2) Saudi Arabia Eastern Region Gas Treatment Plant 2,500,000,000 Construction 2013-Q3

Saudi Aramco - Haradh Gas Increment Program (Overview) Saudi Arabia Haradh Gas Compression 1,200,000,000 Engineering & Procurement 2014-Q1

Saudi Aramco - Haradh Gas Increment Program - Freeflow Pipelines Saudi Arabia Haradh Flowlines 470,000,000 Engineering & Procurement 2014-Q1

JUNE 2018 arabianoilandgas.com

 PROJECTS

GCC OIL – DECEMBER 2017

Project Country City Facility Budget Status
Completion
Date
Completion
Project Country City / Region Facility Budget Status
Date
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 - Umm Shaif Infield Pipelines Replacement U.A.E. Abu Dhabi Oil Field Development 500,000,000 EPC ITB 2019-Q4

ADNOC - Haliba Oil Field U.A.E. Abu Dhabi Oil Field Development 500,000,000 Engineering & Procurement 2022-Q4

ADNOC Gas Processing- Integrated Gas Development - Expansion (42 Inch Pipeline) U.A.E. Abu Dhabi Oil Field Development 450,000,000 Construction 2018-Q4

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

ADNOC Offshore - Upper Zakum Full Field Development - 750 Project - Surface Facilities U.A.E. Abu Dhabi Oil Production 4,200,000,000 Construction 2018-Q4
- EPC 2

ADNOC Offshore - Zirku Facilities Capacity Enhancement U.A.E. Abu Dhabi Oil Field Development 400,000,000 Engineering & Procurement 2020-Q4

ADNOC Offshore- 750 West Region- Capacity Expansion & Sulphate Reduction Plant- U.A.E. Abu Dhabi Oil & Gas Field 300,000,000 Construction 2019-Q1
EPC 3

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

ADNOC Offshore- Upper Zakum Full Field Development - 750 Project - Surface Facilities U.A.E. Abu Dhabi Oil Field Development 1,300,000,000 Commissioning 2019-Q1
- EPC 1

ADNOC Onshore - Buhasa Onshore Oil Field Expansion Project U.A.E. Abu Dhabi Oil Production 3,000,000,000 EPC ITB 2021-Q1

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

ADNOC Onshore - North East Bab (NEB) - (Al Dabbiya) ASR U.A.E. Abu Dhabi Oil Production 2,500,000,000 EPC ITB 2020-Q4

ADNOC Onshore - North East Bab (NEB) - Phase 3 (Al Dabbiya) U.A.E. Abu Dhabi Oil Production 2,300,000,000 Construction 2019-Q4

ADNOC Onshore - North East Bab (NEB) - Phase 3 (Rumaitha-Shanayel) U.A.E. Abu Dhabi Oil Production 1,440,000,000 Construction 2019-Q4

ADNOC Onshore- Bab Integrated Facilities Project- Expansion U.A.E. Abu Dhabi Oil Field Development 2,000,000,000 Engineering & Procurement 2019-Q4 49
ADNOC Onshore- Qusahwira Field Development - Phase 2 U.A.E. Abu Dhabi Oil Field Development 550,000,000 Engineering & Procurement 2020-Q3

ADNOC Onshore- South East Asset- Tie-in Project (A,B, C & D) U.A.E. Abu Dhabi Oil Field Development 650,000,000 EPC ITB 2024-Q4

ADNOC Sour Gas - Dalma Field U.A.E. Abu Dhabi Oil Field Development 800,000,000 FEED 2023-Q4

ADNOC- Fujairah- Mandous Field U.A.E. Fujairah Oil Storage Tanks 2,200,000,000 Engineering & Procurement 2023-Q4

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

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

ADOC - Mubaraz Field Expansion U.A.E. Abu Dhabi Oil Field Development 500,000,000 PMC ITB 2022-Q4

Al Yasat Petroleum- Bu Haseer Field Development Package 2 & 3 U.A.E. Abu Dhabi Oil Field Development 800,000,000 Project Announced 2025-Q4

Aramco - Berri - Gas-Oil Separation Plant Expansion Saudi Arabia Berri GOSP 1,700,000,000 FEED 2022-Q1

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

Bapco - Saudi Aramco - AB Pipeline Bahrain Abqaiq - Sitra Pipeline 350,000,000 Construction 2018-Q4

GASCO - Integrated Gas Development (IGD) - Expansion (Onshore Pipeline) U.A.E. Abu Dhabi Gas Production 7,100,000,000 Construction 2018-Q3

KGOC - Kuwait Bay and Divided Zone Offshore Exploration Kuwait Various Exploration 500,000,000 Construction 2019-Q1

KNPC - New Local Marketing Depot At Matlaa Area Kuwait Northern Kuwait Oil Storage Tanks 500,000,000 FEED 2021-Q1

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

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

KOC - Ratqa Lower Fars Heavy Oil Development - Phase 1 Kuwait Northern Kuwait Steam Injection 4,300,000,000 Construction 2019-Q2

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

OOCEP - Block 60 Concession - Onshore Oman Oman Oil & Gas Field 1,100,000,000 Construction 2020-Q4

OTTCO - Ras Markaz Crude Oil Park Oman Duqm Oil Storage Terminal 400,000,000 EPC ITB 2021-Q2

PDO - Amal Steam Phase 1C-2 Oman Amal Oilfield Oil Field Development 500,000,000 EPC ITB 2024-Q1

PDO - Yibal Khuff Sudair Field Development Oman Northern Oman Oil Field Development 3,000,000,000 Construction 2022-Q1

arabianoilandgas.com JUNE 2018

 FIVE MINUTES WITH

Philippe Herve, VP, FIVE

SparkCognition MINUTES
Artificial intelligence is fast becoming a serious disruptor to how companies across
WITH...
multiple industry sectors go about their business.

0:01
ABOUT THE INTERVIEWEE:
Philippe Herve was formerly the CEO at
Secure-NOK, a cybersecurity company. He
is presently the vice president of oil and gas
solutions at SparkCognition.
What advantages can artificial intelligence (AI) bring to the oil and
gas industry?
AI brings the advantages of predictive and prescriptive maintenance
to the industry, allowing companies to detect failure on an asset before
it occurs. AI’s predictive and prescriptive capabilities in the industry
maximise operations and provide actionable insight into production.
Having these insights allows companies to increase uptime and better
plan maintenance schedules.

0:31
The oil and gas industry is quite “THERE HAVE ALWAYS
traditional and slow to adopt new BEEN THOSE WHO WILL
technologies – will it embrace AI? EXPRESS FEAR OVER
Artificial intelligence can seem like a
daunting field to oil and gas organisations, and many are hesitant to invest
TECHNOLOGY THAT HOLDS
50 in this technology. However, the oil and gas industry today is very competi-
A LOT OF POTENTIAL. EVEN
tive considering the recent depressed oil price. Accordingly, the leaders are THE PRINTING PRESS
already adopting AI to differentiate themselves and increase their market WAS INITIALLY THOUGHT
share. By augmenting their business with AI technology, companies stand HAZARDOUS TO SOCIETY.”
to gain a wealth of benefits and a substantial return on investment, given

4:22
the high cost of repairs and the cost of taking rigs offline.

1.
Do you foresee AI replac-
ing human operatives at
oil and gas plants in the
future?
workers who are retiring. With artificial
intelligence, companies can capture the
knowledge of their veterans in data and
algorithms and preserve it for a new gen- Over the years interest, and progress,

3
The number of operatives at eration of workers to use. Thus, organisa- in AI has varied, could there be another
oil and gas plants is shrink- tions can train personnel faster and AI winter?
ing even without AI. The leverage information more effectively. AI Another AI winter is very unlikely. Every-

7
field has been struggling
to find qualified candi-
dates to take the place of
provides a way for oil and gas operations
to adjust to this new reality of a smaller
workforce, while optimising operations.
2:16
one involved in the oil and gas industry
speaks of the value AI brings to opera-
tions, and we are only in the early stages
of discovering the technology’s potential
in the field. Today’s AI successes are

Elon Musk believes AI could one day destroy human life – is this enabled by a confluence of factors: mas-
just hyperbole? sive amounts of data thanks to abundant
There have always been those who will express fear over technolo- sensors, research breakthroughs in the
gy that holds a lot of potential. Even the printing press was initially field, like deep learning, and powerful,
thought hazardous to society. Once technology is developed, its affordable computers. From predicting
innovation cannot go “back into the box” and will only continue to well failures in artificial lifts to eliminat-
progress. AI is a transformative technology and widely in use - it’s ing instances of stuck pipe, AI has proven
important for us to understand as much as we can about it. very powerful in the oil and gas industry.

JUNE 2018 arabianoilandgas.com

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