Oil Review Middle East 6 2013

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Vol 16 Issue Six 2013

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Oil Review Middle East - Volume 16 - Issue Six 2013

UK ÂŁ10, USA $16.50

Oil and gas firms rein in spending Drilling fluid threat identified Gas boom gives way to a steadier market Continuous power for Bab Gas project KRG - moving towards greater oil independence Subsea control and simulation LED lighting for hazardous areas Damen unveils its offshore series

Kuwait to invest billions in technology

Data storage solutions

see us at the shows www.oilreview.me

Leaks are a major concern for pipeline operators.

Installing a reliable and effective leak detection system will minimise the amount of product released.

See page 80

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Vol 16 Issue Six 2013

Contents

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UK £10, USA $16.50

Oil and gas firms rein in spending Drilling fluid threat identified Gas boom gives way to a steadier market

Columns

Continuous power for Bab Gas project

6

Industry news and executives’ calendar

KRG - moving towards greater oil independence Subsea control and simulation LED lighting for hazardous areas

Analysis

Damen unveils its offshore series

Kuwait to invest billions in technology

Data storage solutions

10

Gas

Regional gas development has entered a calmer period, says our correspondent.

14

Iraq

see us at the shows Leaks are a major concern for pipeline operators.

Installing a reliable and effective leak detection system will minimise the amount of product released.

See page 80

The Kurdistan Region of Iraq is moving cautiously towards greater oil indepence.

l na gio re ctor e th s se 7 9 ing ga 19 rv & Se oil nce si

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Kuwait’s investment plans are good news for oil equipment providers.

See page 44.

Exploration & Production 20

Developments The latest E&P news from around the region.

Editor’s note

Gas 24

Profile Cummins Power Generation has enabled the smooth extraction of gas in Abu Dhabi.

Petrochemicals & Refining 30

Saudi Arabia

The Kingdom is under pressure from a resurgent US and natural gas shortages at home.

This year’s Kuwait Oil & Gas Show (KOGS) will incorporate an international showcase of dedicated hardware and oil/gas services along with a broadspectrum technical conference focusing on the scientific and engineering factors facing those working in the vicinity of the upper Gulf. The timing of the event couldn’t be better. Efforts to raise output of natural gas, both associated and non-associated, are being stepped up at the same time, primarily to meet soaring domestic demand; the Al Zour processing complex will eventually be one of the largest in the Gulf. And Kuwait badly needs the expertise and technology that will be required to complete the task.

Profile 35

Saudi Aramco Review

Why Saudi Aramco remains a pivotal player in the regional oil and gas sector.

14

Exhibition Preview 44

Kuwait Oil and Gas Show KOGS is being held at a time when Kuwait is undergoing a major period of investment.

48

MEPEC

Excellence in process engineering is the theme of this year’s event in Bahrain.

52

Doha International Oil and Gas Exhibition Regional gas challenges will come under the spotlight in Doha.

Technical Focus 55

Innovations Introducing some of the latest technology for the oil and gas sector.

68

Subsea Control & Simulation How to minimise risk and increase production.

72

Hazardous Area Lighting Why LED lighting is best for offshore oil and gas environments.

76

Offshore Technology Damen Shipyards Group says it is offering a fresh approach to offshore vessel customers.

80

Pipeline Integrity How the latest leak detection systems can help operators meet regulatory requirements and detect leaks effectively.

86

Pipelines

A common assumption made by many people is that pipes are round and have a constant wall thickness. This is incorrect, says Dr Tim Clark of OMS.

Little seems to have changed in the dispute surrounding the control oil and gas reserves in the Kurdistan Region of Iraq, but the imminent completion of a Kurdishcontrolled link to an Iraq-Turkey pipeline may have far-reaching implications.

Communications & IT 88

Data Storage

The benefits of EMC’s Isilon data storage solutions are explained by Tarek Heiba, the company’s regional sales director.

94

Rig Count/Databank

Arabic Section 4 10

Developments Analysis

Managing Editor: David Clancy Editorial and Design team: Bob Adams, Prashant AP, Hiriyti Bairu, Lizzie Carroll, Andrew Croft, Ranganath GS, Kasturi Gupta, Rhonita Patnaik, Genaro Santos, Zsa Tebbit, Nicky Valsamakis, and Ben Watts

Publisher: Nick Fordham

Advertising Sales Director: Pallavi Pandey

Magazine Sales Manager: Camilla Capece Tel: +971 4 448 9260, Fax: +971 4 448 9261, Email: camilla.capece@alaincharles.com Country Representative Telephone Fax China Ying Mathieson (86) 10 8472 1899 (86) 10 8472 1900 India Tanmay Mishra (91) 80 65684483 (91) 80 40600791 Nigeria Bola Olowo (234) 8034349299 Russia Sergei Salov (7495) 540 7564 (7495) 540 7565 South Africa Annabel Marx (27) 218519017 (27) 46 624 5931 Qatar Saida Hamad (974) 55745780 UK Steve Thomas (44) 20 7834 7676 (44) 20 79730076 USA Michael Tomashefsky (1) 203 226 2882 (1) 203 226 7447

4 Oil Review Middle East Issue Six 2013

Email ying.mathieson@alaincharles.com tanmay.mishra@alaincharles.com bola.olowo@alaincharles.com mne@acpmos.ru annabel.marx@alaincharles.com saida.hamad@alaincharles.com stephen.thomas@alaincharles.com michael.tomashefsky@alaincharles.com

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Head Office: Alain Charles Publishing Ltd University House 11-13 Lower Grosvenor Place London SW1W 0EX, United Kingdom Telephone: +44 (0) 20 7834 7676 Fax: +44 (0) 20 7973 0076

Middle East Regional Office: Alain Charles Middle East FZ-LLC Office 215, Loft 2A P.O. Box 502207 Dubai Media City, UAE Telephone: +971 4 448 9260 Fax: +971 4 448 9261

Production: Nathanielle Kumar, Donatella Moranelli, Nick Salt and Sophia White - Email: production@alaincharles.com Subscriptions: Email: circulation@alaincharles.com Chairman: Derek Fordham Printed by: Emirates Printing Press, Dubai © Oil Review Middle East ISSN: 1464-9314

Serving the world of business

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Visit the Jotachar JF750 team at Adipec 2013 Hall 12, Stand number 12166 beside the Media Hub jotun.com

News

S02 ORME 6 2013 News_Layout 1 18/09/2013 16:31 Page 6

Oil firms rein in spending

Kuwait seeks overseas oil assets

OIL AND GAS firms are cutting back on investments to try and improve profits and save cash for dividends, perhaps signaling an end to a decade-long boom in capital spending. Companies seeking to bring oil fields into production have splashed out on new drilling, equipment or pipelines, supported by rising oil prices. But suppliers and analysts expect investment growth to slow sharply this year and in 2014, in www.seadrill.com line with a projected fall in oil prices. The spending boom has squeezed budgets and forced companies to sell assets and issue debt to pay dividends.

Onshore spending will be hurt the most, including the saturated US shale segment. New ultradeep markets, such as Brazil, West Africa and Mexico, will still flourish, however, as they offer the rare opportunities for big finds.

“Oil firms have a dilemma: They still need to grow their production, which is virtually flat and even declining, so they have to spend but will have to become much more selective,” Magnus Lundetrae, the chief financial officer of Seadrill, the world’s biggest offshore rig operator said.

“In total they’ll spend around US$700 billion (this) year...I expect spending to be flat (from next year) ... with onshore declining and offset by deepwater.”

KUWAIT IS SEEKING to make oil acquisitions in regions including Southeast Asia as part of plans to meet output targets, according to a senior industry executive in the Gulf state. Sheikh Nawaf Saudi AlSabah, CEO of Kuwait Foreign Petroleum Exploration (KUFPEC), told Bloomberg that he was “looking very seriously” at overseas assets.

The state-owned firm currently has blocks in China and Vietnam, where it is seeking to do more. “The way to do this is through acquisitions, and acquisitions that are not piecemeal but that are strategic in nature,” Sheikh Nawaf said.

He added that current output is “not a level that we like”, with gas production accounting for 80 per cent of output. “The challenge is to try and get more oil as well.”

KUFPEC, which also operates in Asia, Africa, Australia and other parts of the Middle East, also wants to increase reserves to 650mn barrels by 2020 from its present 400mn barrels. It has exploration licenses in Pakistan and Australia, and recently secured another in Yemen.

Meanwhile, Kuwait Petroleum International (KPI) issued the company's first sustainability report for the year 2012-2013.

Chief Executive Officer of Kuwait Petroleum International, Mr. Bakheet Al-Rashidi announced, "that this report is the first, and will not be the last in the way of global sustainability of the company. Our efforts to issue this report is to document our sustainability development not only to our employees, but to our shareholders, partners, investors, banks, governments, and many more stakeholders who deals with KPI and its affiliates. The report will also reflect our ambition to always be on the way of progress and prosperity in all concerned areas.”

6 Oil Review Middle East Issue Six 2013

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News

Executives Calendar 2013/2014 OCTOBER 2013 7-9

M.E. Drilling Conference & Expo

DUBAI

www.spe.org/events/medt/2013

7-10

Doha International Oil & Gas Exhibition

DOHA

www.dioge-qatar-expo.com

8-10

Kuwait Oil and Gas Show

KUWAIT

www.kogs2013.com

28-30

SPE Intelligent Energy Conference & Expo

DUBAI

www.intelligentenergy-me.com

NOVEMBER 2013 10-13

Adipec 2013

ABU DHABI

www.adipec.com

25-27

SAOGE

DHAHRAN

www.saoge.org

BASRA

www.basraoilgas.com

DECEMBER 2013 5-8

Basra International Oil & Gas Exhibition

JANUARY 2014 19-22

ITPC 2014

DOHA

www.itpcnet.org

20-22

World Future Energy Summit

ABU DHABI

www.worldfutureenergysummit.com

AL KHOBAR

www.petroenvironment.com

FEBRUARY 2014 24-26

Petro Environment

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

South Sudan sees US$1bn oil sales

Oil exports have resumed

SOUTH SUDAN MADE almost US$1bn from oil sales since resuming production in April, of which it had to pass on a quarter to Sudan for exporting crude through its territory, the oil ministry said.

The landlocked African nation needs to export the crude, its economic lifeline, through two pipelines crossing Sudan, from which it seceded in 2011 after decades of civil war.

The neighbours, which fought one of Africa’s longest civil wars which ended in 2005, agreed in March to resume cross-border flows. Juba had shut down its oil production in January 2012 when a row over pipeline fees escalated.

Sudan had threatened since April to halt oil exports in a conflict over alleged rebel support but agreed to continue crude flows at a summit of the two presidents recently.

South Sudan sold around 9.8mn barrels of oil for US$969mn until the start of September, its oil ministry said in a statement. It had to pay US$91mn in fees for using pipelines crossing Sudan and Port Sudan. An extra US$147mn was paid by Juba as part of a package to compensate Sudan for the loss of most oil reserves with southern secession, as agreed in a deal in September. Juba needs to make this monthly payment to Sudan for more than two years.

8 Oil Review Middle East Issue Six 2013

Fluid drilling threat identified A CORROSIVE DRILLING fluid that triggered the North Sea's worst gas leak in 20 years could threaten similar deep-sea wells across the world, and operator Total has already warned Shell that its nearby Shearwater field may be at risk.

The corrosive fluids implicated in the leak at Total's Elgin field, such as calcium bromide, are commonly used in such deep-sea wells, and experts fear a recurrence as operators, under pressure to offset declining output from conventional reservoirs, turn to deeper, hotter and higher pressure fields.

"Bromide brines have been used in thousands of wells since their introduction in the 1980s," John Downs, a chemical engineer who runs his own consultancy group, said. "An extensive well repair programme may be needed if the stress corrosion cracking caused by bromide brine in Elgin is also happening elsewhere."

So worried is Total about recurrence in the Elgin field itself, it has plans to kill at least 10 other wells in the complex as well as the one that leaked, which could cost more than US$2.34bn to replace.

The North Sea is host to the highest number of high-pressure, high-temperature (HPHT) reservoirs of any mature oil and gas producing basin.

Total UK chairman Patrice de Vivies said he had co-operated particularly closely with Royal Dutch/Shell when sharing information on the causes of the leak. "With Shell we have shared even more as they have a neighbouring field, Shearwater, meaning they potentially have, perhaps not identical, but similar problems," de Vivies said.

Any signs of another Elgin may warrant wider investigations into the effects of fluids used in HPHT wells, potentially leading to the killing of more wells and upsetting plans to squeeze more from the North Sea. The recent revival in the North Sea's fortunes hinges on investment in HPHT fields. They are also common off the coast of Brazil and in the Gulf of Mexico. The industry has had to adapt the materials and fluids it uses to cope with the treacherous conditions. www.oilreview.me

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Analysis

Compared with the frenzy of recent years, gas development in the Middle East looks like it has entered a more calm and quiet period, writes independent oil analyst Samuel Ciszuk

Gas boom gives way to a

steadier market T

HE BREAK-NECK DEVELOPMENT of Qatar’s North Field has tailed off, with only more domestic-demand focussed projects remaining, while other LNG exporters like Oman look at a future of managed decline. Parts of the Levant might prove the exception with exploration accelerating, but project-wise, 2013 and 2014 look more like middle-years even there.

Gas has in many ways gone from a very hot topic to business-as-usual in the Middle East, compared to the years of the Gulf development boom of the previous decade. Then, enormous agglomerations of skilled personnel, machinery and material used up in the development primarily of the North Field (mainly on the Qatari side), caused ripples – and elevated project costs – in other growth areas like Egypt’s deepwater Nile Delta play and offshore Libya.

That the gas industry is less of a hot topic currently is not necessarily a sign that the industry has a problem, however, in the aftermath of the 2011 uprisings in the region, political uncertainty and outright breakdown of order has put a cap on spending by international oil companies (IOCs) in countries like Egypt, Libya and Syria. In the Gulf, however, the cause for global media’s change of focus is much more likely the increased focus on projects feeding domestic demand. There, political stability looks only slightly different from a decade ago, except for Yemen, where a condition of near state implosion has to be regarded as the norm.

Iranian gas development activity is at a near standstill due to international sanctions of course.

However, the process of gradual sanctions scaring upstream gas investment and making domesticfunded and operated projects struggle to procure technology, machinery and materials – and certain technical skills – has crept up on the industry in near slow-motion over the last eight years.

Gas development in the Gulf remains at a very interesting stage, albeit companies are less ambitious in their targeting of new markets than they were during the past decade. Qatar has almost completed the development of its North Field share and the remaining phases under construction are targeting domestic uses, either for the fast-growing economy’s electricity and cooling needs, or to provide feedstock for its continuing petrochemical industry development drive. With the end of Qatari megaprojects in sight, the spotlight has started to shine on other areas, like Australia’s LNG projects and at the competition that may emanate in the near future from new East African offshore

10 Oil Review Middle East Issue Six 2013

The rapid development of Qatar’s North Field is now over

With the end of Qatari megaprojects in sight, the spotlight has started to shine on areas like Australia’s LNG projects and the new East African offshore discoveries discoveries. Qatar has carved out a seemingly stable market position for itself as well as enjoying the stability of long-term contracts, meaning that it is in a very good position to meet emerging competition in the lucrative Asia LNG markets head on in the coming 10 to 15 years. The project economies at its base are likely to favour it even longer when many of its largest long-term contracts come up for renewal, as the other emerging gas projects in the pacific basin tend to be deepwater projects in either high-cost or highchallenge areas.

Saudi Arabia Instead of focusing on Qatari export growth, the gas industry has moved on to focus on a larger number of upstream and midstream projects in Saudi Arabia. The Kingdom switched its focus onto ramping up its gas production capacity some years ago, when it reached its strategic goal to lift its crude production capacity to 12.5mn bpd. The Saudi projects are of course completely under the wing of NOC Saudi Aramco, but the Saudi gas drive was vital for supply and engineering companies as the Qatari jobs started to shrink. Progress has been reported as good and largely on track. Apart from a few firsts for the Kingdom, like developing offshore non-associated gas production and dealing with sour gas fields, most of the drive has focused upon raised production from existing oil and gas fields or the development of new horizons in mature fields.

Abu Dhabi has seen a similar drive, although with some more difficulty. Firstly, the emirate’s hands have been somewhat tied over the past five to eight years with regards to renegotiations and

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Analysis

The gas industry has moved on to focus on a larger number of upstream and midstream projects in Saudi Arabia

Of the GCC states, it is Bahrain and Kuwait who continue to struggle with perpetual gas and power shortages extensions to its IOC concessions. Outside of the fields managed by those, there have been preciously few potential projects to pursue. Also, there has been a relatively limited gas production upside from much of the Abu Dhabi acreage compared to Saudi Arabia, particularly from the facilities and reserves managed by the gas-focussed concession Gasco. Increases have been achieved, particularly through the recent completion of the Integrated Gas Development, which raised collection of associated gas in Abu Dhabi by 800 mmcfd of sales gas. The current onus is on looking forward to what can be achieved as the ADCO concession is renegotiated.

The main ongoing project to note is the technologically very challenging Shah sour gas project, where levels of acidic gas and other impurities constitute just above half of the 1 bcfd of raw gas to be produced at peak capacity. The project is being developed by US company Occidental and is targeting first production in Q4 2014. In late April the second ultra-sour gas project in Abu Dhabi, Bab, was awarded to Shell and in late July the Abu Dhabi National Oil Company (ADNOC) said it expected the project to come on-stream in 2020. Similarly to Shah, the field will produce just about 1 bcfd of raw gas, but manage an output of just above 500 mmcfd of sales gas after impurities, largely consisting of hydrogen sulphide, have been stripped out.

Another Gulf state having to move into more technically challenging territories is Oman, which was quick – it has been said too quick – to develop an LNG export capacity in the 1990s, only to start suffering domestic shortages in the early part of the past decade and onwards. Large reserves of tight gas are being developed primarily by BP in a project pushing the technological frontiers. Although the tight gas reserves are large, meeting domestic demand in the short as well as long term will be the key focus, with LNG exports not likely to grow from levels already well below liquefaction capacity.

In the aftermath of the 2011 uprisings and

12 Oil Review Middle East Issue Six 2013

protests throughout the Middle East, meeting domestic demand has become even more of a priority and recognised as a key component in keeping the social peace. While Saudi Arabia and the UAE, led in this case by Abu Dhabi, have recognised this well in time it is only in the past two-three years that the dividend from their gas drives have started to come through. Indeed, in both those countries the supply/demand balance looks precarious and the UAE has had to resort to imports. Oman finally has the end of gas and power shortages in sight, albeit in a few years’ time.

Of the GCC states, it is Bahrain and Kuwait who continue to struggle with perpetual shortages.

Bahrain has enlisted IOCs to redevelop its very mature Awali/Bahrain oil and gas field – the oldest on the Arab side of the Gulf – however the upside is limited and offshore exploration has not yielded any results. In Kuwait the political deadlock between a resource nationalist parliament and the royal familydominated government has halted efforts to enlist gas know-how and technical experience, greatly complicating the limited reserves the emirate has to develop. Instead the country has had to take a refuge in relatively expensive imports of LNG during peakdemand seasons.

Cut off Outside of the GCC states, Iraq and Iran both have obvious upside potential but remain largely cut off from investment streams. As long as Iran is starved of technology and capital it cannot produce domestically. Its gas development will be marginal and as sanctions hurt the rest of its economy dramatically, by halving its oil export during end2012 and 2013, investment in the remaining gas projects is bound to suffer too. On the other hand the economic crisis is shutting industries and lowering domestic demand, providing a partial, albeit negative way out of the malaise of power shortages for the population. Iraq meanwhile is again seeing higher levels of violence, undermining whatever gas investment ever existed in the market. Unattractive contracts and terms meant limited bidding for the few gas projects the country's oil ministry got off the ground. The only project likely to make a difference in the medium term is the project to gather and monetise associated – currently flared – gas in the wider Basra area. It could prove important in meeting Iraq’s very deep gas deficit, however work is no

longer progressing on rebuilding the national gas grid. This means that its impact in the first five years will mainly be on the southern Basra region.

With political uncertainty at a high in Egypt, Tunisia and Libya, investment there has naturally slowed. In Libya this will prove a problem in the coming years, but in Egypt existing shortages are already causing further political unrest. Limitations of LNG and piped gas exports will not be enough, while IOCs have to await more stability before committing to further projects in Egypt’s challenging and expensive deepwater Nile Delta.

Remaining growth areas outside of Saudi Arabia, Oman and to some extent Abu Dhabi are Algeria and the Levant. In Algeria a turnaround in political will, supporting a more business friendly programme, has taken place this year, but it will take some time to get projects underway. During past years of exuberance, Algeria launched export projects with a capacity outstripping its underlying supply growth, particularly since investment terms took a turn for the worse under a more resource nationalistic orientation after 2005. Like in so many other Middle Eastern countries, the future gas potential is increasingly unconventional. In Algeria, like in Oman, it is mostly a question of tight reserves, with outright shale gas also being discussed. Providing attractive terms, particularly in a country which is located on the border of the Atlantic basin gas market and could find itself competing with US shale gas exports in a few years’ time, will therefore be of the essence. Given the resource nationalist turns of the past, it might not be easy to quickly amass as many competent investors as before, particularly not against the background of the US shale gale.

That leaves the Levant, where exploration has been successful in some places, but still has to cover the whole region. Here too, politics can be explosive and a key country like Cyprus will have to tread carefully though disputes with its neighbours over maritime territory in order for investors to feel safe.

Being largely reliant on tourism, it will also have to tread carefully with much of its hoped-for development of liquefaction capacity. For all hopes attached to Lebanon being able to make at least as large discoveries as its southern neighbour, the threat of violence spilling over from Syria is likely to prove a significant deterrent. Exploration is one thing, being safely conducted from the offshore, but any development would require the Lebanese society moving back from the brink to which increasing violence between its sectarian groups have brought it.

The hopeful message is that the Middle East in general holds much potential in the gas sphere.

Most of the countries should be able to attract as much investment as they want, providing certain market-friendly moves could be credibly launched in some of the states. Setting up mechanisms where production of gas for domestic consumption would pay more attractively is one vital potential move. Unfortunately, gas development particularly in North Africa, Lebanon, Iran and Iraq, as well as obviously Yemen, will require political upheaval to subside first in order for investors to return, particularly at a time when other budding gas export regions are competing for attention. n www.oilreview.me

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Analysis

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On the surface little seems to have changed in the dispute surrounding the control of oil and gas reserves in the Kurdistan Region of Iraq, but the imminent completion of a Kurdish-controlled link to an Iraq-Turkey crude pipeline looks set to have far-reaching implications. Independent oil analyst Samuel Ciszuk investigates.

Moving cautiously towards greater

oil independence A

SPATE OF GOOD upstream news has come out of Kurdistan Region of Iraq during the summer, with further drilling success at the Kurdamir prospect by Canada’s Talisman and WesternZagros perhaps being the most important. The companies have started testing the Kurdamir-3 well, which found a thicker than expected pay zone, and will investigate whether the Kurdamir structure could be connected to the Garmian structure (operated by WesternZagros). This means that, after years of high hopes, the structure is likely to be proved as a world-class oil field.

Other developments are the completion of the first horizontal production well in the Tawke field, setting a well-production rate record in the autonomous region at 25,000 bpd, according to operator DNO. Also, operator Gulf Keystone’s development plan for the giant Shaikan field has been accepted by the Kurdistan Regional Government (KRG), with first production estimated at around 40,000 bpd, rising to 250,000 bpd by 2018.

The field has been producing around 10,000 bpd for some time now, under an extended well production test, and excess crude from the KRG market has been trucked over the border to Turkey, like similar volumes from Tawke, Taq-Taq and other fields.

The most important event this year might become the imminent connection of a pipeline from the region to a pipeline connecting Iraq and Turkey. It could fundamentally change the relationship between the KRG and Baghdad but political and legal question marks remain.

On the surface however, little seems to have changed politically in the dispute between Iraq’s government and the KRG in Erbil over the extent of the region’s autonomy, in particular the extent of the region’s control over its own hydrocarbon resources. The industry is used to a see-saw between high-level negotiations and/or committee discussions and long shutdowns in communications.

The KRG is leaning its interpretation that it is allowed to sign upstream contracts with international oil companies (IOCs) and export and market oil and gas on Iraq’s constitution.

Iraq’s government in Baghdad is defending a centralist legislative position. This is based mainly on precedent during modern Iraq’s history and (likely, as no referendum on the issue has been held) does so with very significant popular support from the nation’s Shi’a and Sunni groups, who together constitute a large majority.

14 Oil Review Middle East Issue Six 2013

Prime Minister of Iraq, Nouri al-Maliki: Turkey’s relations with Iraq’s government have worsened in recent years

Constitutional opportunity Forcing the Kurds to completely give up their hard-won autonomy is however not a constructive strategy. Neither has the Iraqi government the ability to overrun the KRG politically, given the deep divide between the Shi’a and Sunni groups in the rest of the country, as well as the relative political incoherence within the dominating Shi’a alliance under Prime Minister Nouri al-Maliki. The KRG might have the constitution on their side, however.

The constitution was written hastily following the US-led invasion in 2003 and – in order to be passed – left potentially divisive issues like the level of federalism versus centralism in Iraq fairly opaque.

The narrative has been a familiar one since soon after Iraq’s first election. The KRG was quick to capitalise on their newly-won official

The pipeline could fundamentally change the relationship between the KRG and Baghdad but question marks remain autonomy by signing up a large number of IOCs to explore its territory.

However, these moves fuelled ingrained fears among the rest of Iraq’s citizens over future Kurdish separation and Iraq’s loss of a large share of its oil and gas resources. Nevertheless, the KRG could build on its experience in de facto self-governance and its well-functioning sets of government institutions, while the rest of Iraq sank into a morass of sectarian strife in the second half of last decade.

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Analysis

improved. Still, as exploration programmes have given way to appraisals and early development phases, the industry’s need for a solution before investment starts to shrink has become urgent.

Source of hope

The Kurdamir 2 well in the Kurdistan Region of Iraq

The Iraqi government is not willing to give ground on its centralist line, but neither can it afford to alienate the KRG further Iraq itself was, after a substantial delay, able to sign large oil contracts with IOCs for the development of its most prolific oilfields (and a few gas fields). However, having pursued a maximalist position of parting with as little project control and profit shares as possible it is now discovering that IOCs are in a position to force renegotiations and many projects are starting to slow down. Predictably, the Iraqi state-owned oil industry has been unable to keep up with the IOCs’ project speeds.

Not so in the Kurdistan Region of Iraq, where realism about the region’s relative unproven character as a major oil producer – aside from the supergiant Kirkuk field and a few others still under Baghdad control – and the shaky legal foundation for IOCs, prevailed from the beginning. The KRG was successful in attracting small explorers with an appetite for high risk in order to explore for oil and gas and prove its world class potential. That has been done in the past few years, with the Kurdistan Region of Iraq now regarded as a world-class hydrocarbon region due to its proven reserves.

Political progress has however not followed the Kurdistan Region of Iraq's geological progress and that has caused a major headache for the region.

With relations with Baghdad frozen regarding the recognition of the IOC’s right to produce and sell oil from the region, there has been no substantial way for the region’s upstream actors to start to monetise their discoveries.

Many of the initial risk-takers have been bought out by larger midsize and even supermajors since as per the usual patterns in the industry - meaning that the financial ability to wait for a solution has

16 Oil Review Middle East Issue Six 2013

For that reason the KRG’s détente with Turkey has increasingly been seen as a source of hope, particularly since Turkey’s relations with Iraq’s alMaliki government over the past years have reached ever frostier temperatures. For the KRG, improving the historically problematic relations with Turkey have also been key from a general trade and life-line perspective, given the region’s landlocked position and the understanding that Kurdistan Region of Iraq's isolation gives Baghdad the upper hand in the long run. Indeed the improving relations between the KRG and Turkey has served to further strengthen the KRG’s hand, placing Baghdad between a rock and a hard place in negotiations as well as adding significant urgency to finding a solution, or to stall the development.

The Iraqi government is not able to or willing to give ground on its centralist line, but neither can it afford to alienate the KRG further. The closer the KRG comes to forming good enough relations with Turkey for an independent oil export link to be set up (bypassing Iraq completely), the less time the Baghdad government has before it fears the KRG will fall out of its political and financial orbit completely.

Bilateral treaty The first step towards such a momentous event is now looking imminent. The construction of a pipeline connecting some of the first fields to be brought partly on stream in the KRG, Tawke and Taq-Taq, as well as the giant Shaikan discovery, is being completed and tied in to the existing KirkukCeyhan crude pipeline to Turkey’s Mediterranean coast. That export pipeline is nominally controlled by the Iraqi government through a bilateral treaty with Turkey, however it is understood that the KRG tie-in at the village of Fishkabour is just after the last pumping and metering station on Iraqi soil and therefore Baghdad’s Oil Ministry will not be able to monitor the volumes added. If so, it would make it impossible for Iraq’s monopolist marketer, the State Oil Marketing Organisation (SOMO) to try to sell the added volumes once in Ceyhan. Still, the legal foundation for this solution looks shaky and challenges to ownership could potentially be posed unless Turkey manages to dissuade Iraq from mounting them.

There is certainly ample excess capacity in the old Kirkuk-Ceyhan pipeline, which was built with a capacity more than three times the one being used today by northern Iraq. Much of that capacity has not been used for decades however, and heavy maintenance, upgrades and probably even the outright construction of new pumping stations would likely be needed. To make the tie-in to the Kirkuk-Ceyhan pipe without Baghdad’s blessing workable, the KRG would be dependent on Turkey to provide some form of legal protection. Then again, the KRG would be dependent on Turkey for

any exports by-passing Iraq in any case.

However, there is currently a new, looming uncertainty inherent in the dependence on Turkey.

The Syrian civil war has resulted in the neighbouring country’s Kurdish minority starting to set up its own autonomous entity in the north east, on the border not only with Turkey, but also with the Kurdistan Region of Iraq and the rest of Iraq. It is too early to say which direction the Syrian Kurds might move in and whether their skirmishes with Syria’s Islamist opposition might develop into fullscale fighting in which they manage to prevail.

However, it seems like influential Syrian Kurds are looking to the Kurdistan Region of Iraq and its defacto stage during the 1990s for inspiration. As Kurdish militia has managed to take control of Kurdish-dominated built-up areas, the focus has seemingly started to change to taking control of the not insignificant part of Syria’s oilfields which are located within the north eastern region dominated by Kurds.

It is a sign that the Syrian Kurds are reaching for a more sustainable position, both economically and politically. Naturally this is fuelling the old Turkish fear of Kurdish nationalism igniting the separatist hopes of its own Kurdish minority and some apprehension over Turkey’s increasingly positive relations with the KRG has been visible in Ankara during the past 18 months. It has been emphasised

by Turkey’s strong and overt efforts to support Syrian opposition groups, while the Syrian Kurds have been careful not to break decidedly with the Syrian al-Assad regime. Historically, there are also strong ties between Syria’s main Kurdish groups and the Kurdish separatists in Turkey, the PKK.

Gas diversification Ultimately, those wishing to promote Turkey’s ties with the KRG have maintained the upper hand in Ankara and some are even hoping that closer ties between the Syrian Kurds and the KRG leadership might weaken the PKK further. Turkey has successfully positioned itself as 'The energy bridge to Europe' over the past 15 years, however the price for that has been a deepened Turkish reliance on Russian gas, something the KRG can help diversify. Gas from the Kurdistan Region of Iraq could also help resolve problematic imports of Iranian gas fairly quickly, while Turkey’s oil industry stands to gain handsomely from being the conduit of growing exports from the Kurdistan Region of Iraq.

Politically it will still be complicated for Turkey to be seen as weakening Iraq’s cohesion at a time when security in the country again seems to be on a downward trajectory. Turkey will have to move forward carefully in this regard and seeing how the legal uncertainty over ownership of KRG crude through the Kirkuk-Ceyhan pipe is handled will be one of the signposts to watch in the second half of 2013.

If Kurdistan Region of Iraq-Turkey controlled marketing of crude is established, a tectonic shift in relations between the KRG and Baghdad will have taken place and it will have become close to impossible for Iraq’s centralists to bring the KRG back to the fold again. n www.oilreview.me

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Analysis

Contrary to belief that the Middle East may lose its place as the top oil producer and exporter, a study by Orient Planet finds that the top slot will remain with the region for a long time to come

Middle East energy sector will see an upside

despite challenges R

ECENT MAJOR DEVELOPMENTS in the global oil space, particularly in the United States of America, will not significantly impact the Middle East”s status as an energy leader in the long run, according to a research report published by Orient Planet.

The report affirms that the Middle East will continue to dominate the energy sector even as US oil companies continue to develop new oil production technologies and shale gas discoveries emerge from the USA. Orient Planet also said that there are strategic factors such as the increasing emphasis on the use of renewable energy in the Middle East — a region abundant in solar and wind resources — as the key to sustained dominance in the energy domain.

Research conducted by the Dubai-based marketing communications consultancy Orient Planet shows that upcoming upheavals to the international oil supply chain will significantly impact the global economy and oil security. These movements, however, will not be enough to displace the Middle East as a global leader in oil, in particular, and energy, in general.

The US boom In its research, Orient Planet refers to a recent report from the International Energy Agency (IEA) that has managed to stir the global oil marketplace and draw mixed reactions from various industry players. The report claims that the surge in oil production in North America will be as transformative to the market over the next five years as was the rise of Chinese demand over the last 15 years.

To say that the US oil boom will significantly impact the global economy is certainly a very bold statement to make, according to the study.

Undoubtedly, it will have an influence, but the manner in which it has been discussed and portrayed in the media shows a certain degree of hype and overexcitement. The US has depended on oil imports to sustain its economic growth for a very long time. The possibility of weaning the US off oil imports was therefore big news and the media feasted on it. ccUntil recently, up to 60 per cent of oil supply in the US was imported from other countries. On the other hand, the US imported up to 20 per cent of its natural gas needs based on 2010 records.

However, as the IEA report points out, US oil companies have been able to develop new technologies and techniques that allowed them to

18 Oil Review Middle East Issue Six 2013

The Middle East caters to a global marketplace that has an insatiable appetite for oil

produce oil from previously inaccessible locations.

Specifically, the energy boom in the US is mainly due to shale gas and high concentration of unconventional oil deposits in various states such as North Dakota and Montana. Largely because of shale gas discoveries, the US is expected to become a natural gas exporter by 2035, according to the IEA. Moreover, oil imports are now expected account for 30 per cent of US energy needs, down from 60 per cent.

Impact on Middle East The IEA and the US Energy Information Administration have already predicted the US to lead the world in oil production as early as 2017, which is only four years away. Will it severely affect Middle East oil revenues as the US becomes the world’s largest oil producer, eclipsing Saudi Arabia and Russia?

Nidal Abou Zaki, managing director of Orient Planet, said, “An objective assessment of the emerging developments in the global oil space and the various economic indicators would reveal that even if the US increases its oil production, it will never dislodge the Middle East as the most influential block in the global oil trade. The primary reason for this is that the region still produces majority of the world's oil supply. Saudi Arabia, in particular, remains the linchpin in global production because of its ability to increase production at a moment’s notice to augment any shortfall or

disruption in the international supply chain.”

Moreover, Orient Planet notes that the percentage of Middle East oil imported by the US is far less than one might expect: just around 16 per cent of total US oil imports.

Domestic market In the Middle East alone, oil demand has been driven by the socio-economic development programmes implemented by different countries.

Moreover, studies have shown that non-OECD oil consumption increased more than 40 per cent between 2000 and 2010, with Saudi Arabia one of the countries with the largest growth in oil consumption during the period. Qatar’s proven oil reserves were the 13th largest in the world at the end of 2012 and the country remains an important supplier of oil to global oil markets. Qatar also holds the world’s third largest natural gas reserves and is the single largest supplier of liquefied natural gas.

The status of the Kuwaiti market is just as favourable. The oil production capacity of Kuwait, the world’s fourth-largest oil exporter, currently stands at 3.1mn bpd, versus its quota which was at 2.2mn bpd.

The Middle East caters to a global marketplace that has an insatiable appetite for oil. That alone is enough to provide the long-term demand that will support the region's vast oil production capabilities. ■ www.oilreview.me

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E&P

Oryx Petroleum ‘to develop Demir Dagh licence in Kurdistan Region of Iraq’ ORYX PETROLEUM HAS announced that it has plans to explore and develop the Demir Dagh license in the Kurdistan Region of Iraq, targeting an initial production of 7,000 bpd to 9,000 bpd in Q2 2014.

Oryx Petroleum, operator of the license with a 65 per cent participating and working interest, said its appraisal plan was awaiting approval by the Kurdistan Regional Government for resuming the Demir Dagh-2 discovery oil well and drilling three appraisal wells.

The three wells are expected to be produced from the Cretaceous, and at least one of them will retest the Jurassic and Triassic, company sources said.

The drilling will further establish the field structure and the extent of hydrocarbon fill and potentially result in larger reserves and resources to be booked. Meanwhile, a preliminary lab results have confirmed field analysis conducted during the testing of Demir Dagh-2 that the crude oil in the Cretaceous has a low gas-oil ratio, low sulfur content and low viscosity. Oil gravity is 23.1°, lighter than the 20-22° measured in field tests.

The company is likely to run extended well tests at the Demir Dagh-2 and the three appraisal wells to establish reservoir performance and pressure behavior.

The Middle East and Africa-focused explorer is also in the advanced stages of a tender process for the lease and installation of a 25,00030,000 bpd early production facility.

In the case of a successful appraisal programme, Oryx Petroleum would declare the discovery commercial, run two rigs to drill development wells, and construct a 100,000 bpd production facility.

Vegas Oil & Gas makes discovery in Egypt VEGAS OIL & GAS has announced that oil, gas and condensate have been discovered at East Ghazalat concession in Egypt’s Western Desert.

The North Dabaa 1X exploration probe was drilled to a total depth of 4,492 metres, partner TransGlobe Energy said.

The probe hit around The discovery will require additional 2.4 metres of net oil pay drilling to determine the commerciality in the Abu Roash formation and seven metres of gas and condensate pay in the Khatatba formation, according to the explorer.

The gas and condensate find was completed and a subsequent 72-hour flow test saw average daily production rates of around 458,733 cubic metres of gas and 1,620 barrels of 56º API condensate.

TransGlobe Energy added that the new pool discovery will require additional drilling to determine the extent and commerciality of the discovery.

Greek-owned and Cairo-based private Vegas Oil & Gas holds a 50 per cent operatorship stake in the East Ghazalat concession, with TransGlobe Energy holding the other 50 per cent since a 2010 farm-in.

The North Dabaa 1X discovery lies 1.4km east of TransGlobe Energy’s wholly-owned South Ghazalat block.

Iraq signs MoU with India on oil block exploration INDIA AND IRAQ have signed a Memorandum of Understanding (MoU) for the exploration of an onshore Iraqi oil block, estimated to hold 645mn barrels of in-place reserves.

Block-8, located in the western desert in southern Iraq bordering Saudi Arabia and Kuwait, was awarded to ONGC Videsh Limited (OVL) in November 2000 by the then Saddam Hussein government, PTI reported.

The MoU in energy sector envisages cooperation in the areas of upstream and

downstream oil and gas activities and related infrastructure, Iraq’s Oil Ministry sources said.

Block-8 is located in Iraq’s western desert

Indian Prime Minister Manmohan Singh said, “Our energy trading relationship should be turned into a strategic partnership, including joint ventures in oil exploration.”

On its part, Iraq has also pre-qualified Indian companies such as OVL, Mangalore Refinery and Petrochemicals Limited (MRPL) and Reliance for participation in the Nassiriya Project bid round in the country.

Iraq has already offered three oil blocks in Middle Furat Oil Field on nomination basis to India last month.

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For all global locations, please go to: www.aggreko.com/contact

20 Oil Review Middle East Issue Six 2013

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E&P

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Longreach Oil & Gas awards rig contract to Saipem for Moroccan wells LONGREACH OIL & GAS has announced that it has signed a drill contract with Italian firm Saipem for two wells on the Sidi Moktar Exploration Licence Area onshore Morocco.

The contract also has the provision for the Moroccofocused oil and gas firm to drill two additional optional wells.

The rig - Saipem Drillmec Mas 7000 - will be mobilised from Hassi Messaoud in Algeria with a planned rig-up date in midOctober 2013. The drilling will commence with the Koba-1 well, the company said.

The Koba prospect is a four-way dip closure, targeting Lower Jurassic and Triassic sandstones.

Company sources said that Koba has been further derisked by the recently acquired seismic data and extensive geological field studies. The prospect was initially evidenced through careful reprocessing of existing data, together with extensive geological and geophysical studies.

Andrew Benitz, chief executive officer of Longreach Oil & Gas, said, “Drilling Koba will enable Longreach Oil & Gas to test the new play concepts evidenced by the company’s extensive geophysical, geological and petrophysical studies conducted over the previous several years in the Essaouira Basin.”

Iraq awards drilling contracts worth US$347.8 million IRAQ HAS ANNOUNCED that it has awarded drilling contracts worth US$347.8mn for the onshore Maysan oilfields situated in the south of the country.

Iraq signed a deal in 2010 with CNOOC and TPAO to develop Maysan

Iraq awarded the contracts to three international oil service companies — US’ Weatherford, China’s Bohai Drilling Services Company (BDEC) and China Oilfield Services Limited (COSL) — to drill 39 production wells in the 2.5bn barrel Maysan complex being developed by China National Offshore Oil Corporation (CNOOC) and state-run Turkish Petroleum Corporation (TPAO).

Weatherford was awarded two drilling contracts worth US$94.98mn and US$82.39mn respectively.

China’s BDEC won a US$96.66mn contract, a federal Oil Ministry statement said.

COSL, a specialised oil services unit of CNOOC, was awarded a US$73.82mn drilling deal. However, it was not clear how many wells each company would drill, Reuters reported.

Iraq signed a deal in 2010 with CNOOC and TPAO to develop Maysan, comprising several small oilfields, aiming to reach a production target of 450,000 bpd by 2016.

BP signs LoI to develop Kirkuk oilfield in Iraq BP HAS ANNOUNCED that it has signed a Letter of Intent (LoI) with Iraq’s federal government aimed at reviving Kirkuk oilfield.

The deal, inked and confirmed by the UK oil and gas major and an Oil Ministry official, could give BP access to reserves in the north of Iraq.

The UK oil and gas giant is expected to pump US$100mn over an 18-month period and will help Iraq’s government assess the production in the oilfield.

According to the company, it will work on the Baghdad-administered side of the border on the Baba and Avana geological formations.

The agreement, however, is not a technical service contract like what BP has at Iraq’s Rumaila oilfield in the south of the country.

Reuters reported that the output at the 78-year-old Kirkuk oifield has slumped to around 280,000 bpd

22 Oil Review Middle East Issue Six 2013

The agreement is not a technical service contract

from 900,000 bpd in 2001.

Federal government officials said they would like BP to raise production capacity to around 600,000 bpd in five years.

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Gas

Cummins Power Generation enables smooth extraction of gas from largest gas field in Abu Dhabi.

Continuous power for

Bab Gas project T

HE BAB GAS Compression Facility, part of the Thamama gas network, extracts gas from the Bab Gas Field, the largest onshore gas field in Abu Dhabi spanning 1,200 sq-km.

Estimated to handle 1.8bn standard cubic feet of gas or condensate per day, with extraction capacity to eventually increase to 25 trillion cubic feet, the facility plays a vital role in fuelling the UAE’s gas sector and economy.

Construction of the facility started in 2010 and was completed in February of this year. Given the magnitude of the facility, there were many different contractors involved in its construction.

The Engineering, Procurement and Construction (EPC) contract for the project was awarded to SK E&C in 2009.

With a high risk of incurring significant economic losses in the event of a power outage, there is a critical need for a reliable continuous power supply that is ready 24/7, 365 days a year to continue powering the facility should the main utility fail. In addition, the continuous power system has to be designed and commissioned in a timely manner, and must be capable of working seamlessly with other equipment or peripherals involved in the project.

SK E&C engaged the expertise of Cummins Sales & Services Korea (CSSK), a distributor for Cummins Power Generation to provide the continuous power system, on the back of the

company’s reputation for high quality products and outstanding after-sales service support.

Cummins Power Generation designed a system capable of providing up to 3.6MW of continuous power, consisting of three enclosed C2000D5 diesel generator sets with the ability to withstand harsh environmental conditions. These diesel generator sets are powered by QSK60G3 engines, and interface with microprocessor-based Cummins PowerCommand® Digital Master Control 300 Paralleling System, integrated with switchgear.

As the only manufacturer to offer fully integrated power systems, Cummins Power Generation’s PowerCommand® microprocessorbased controls are capable of integrating diesel generator sets and digital master controls with switchgear into a complete system, utilizing common communications protocols for seamless integration and enhanced reliability.

These are essential requirements for this oil and gas project to ensure a high degree of design and performance control for reliable and efficient operation.

Cummins Power Generation designed a system capable of providing up to 3.6MW of continuous power A view of the Bab Gas Compression facility in Abu Dhabi.

24 Oil Review Middle East Issue Six 2013

Cummins Power Generation’s enclosed C2000D5 diesel generator set powered by QSK60G3 engine provides reliable continuous power for the Bab Gas Compression Facility.

This project saw the Cummins Power Generation team work alongside SK E&C and other contractors to design a continuous power system that can integrate seamlessly with the other components and equipment of the facility.

Beyond the design and installation of the system, CSSK also provided a team of engineers to see to the prompt resolution of any issues. Due to the size and complexity of the facility, various external complications arose, jeopardizing the completion of the overall project. The CSSK team of engineers proactively dealt with the issues efficiently and effectively, working closely with the various project contractors and also within the Cummins network.

“One of our biggest concerns was the tight deadline demanded of the entire project and we are committed to do our part in ensuring that the facility was completed on schedule. Our team practised a strategy of strong internal communications during the course of the project, with our engineers tele-communicating on a weekly basis with CPGS (Cummins Power Generation Singapore) to leverage relevant expertise,” said Jim Lee, CSSK Power Generation Team EPC Manager. “We also partnered closely with various site contractors to address integration issues.”

“We are very pleased with our partnership with Cummins Sales & Service Korea. The proactive and collaborative attitude the company took played an integral part in the timely completion of the facility,” said Shawn Moon, Procurement Senior Manager from SK E&C. “In fact, we have nominated CSSK as an excellent partner and look forward to partnering with them again on future projects.” ■ www.oilreview.me

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Gas

Russia’s second-largest oil producer Lukoil plans to start natural gas production in Saudi Arabia next year, the company’s vice president Leonid Fedun said.

Lukoil eyes natural gas production

in Saudi Arabia “W

E MADE A discovery of 400 billion cubic meters... This would be large enough and the first gas-producing project in Saudi Arabia,” Reuters quoted Fedun as saying recently.

Lukoil previously secured a deal to find and pump gas in Saudi Arabia from the project known as Block A. The project is small by the standards of Saudi Arabia’s immense hydrocarbon reserves, but it creates a potentially useful new link between producer OPEC’s leading member and Russia, the world’s number one oil exporter.

Leading US energy consultancy PIRA said earlier Saudi Arabia was set to pump 10.5mn barrels a day of crude in the third quarter, a one million bpd increment over the second quarter and its highest quarterly level of production ever.

“The reason they’re producing that much is simple — the world needs the oil,” said PIRA CEO Gary Ross.

“This is the tightest physical balance on the world oil market I’ve seen for a long time.”

PIRA reported its estimate to clients late last month.

Spare capacity Libyan oil output has fallen from 1.4mn bpd to just 250,000 bpd after protesters shut oilfields.

Saudi Arabia is the only oil producer with any significant spare capacity.

Ross said about 400,000 bpd of the incremental supply would go to feed domestic Saudi power usage during peak summer demand for air conditioning.

Without another increase this year from US shale oil, he said the world would need to be short

of crude and oil prices much higher.

“Without US shale we’d be short about 1.5mn barrels a day in the third quarter and prices would have gone up dramatically to ration demand,” said Ross.

US shale oil production is now about 2.5mn bpd, up 900,000 bpd in a year, he said.

Saudi Arabia boosted output last month to a record high, a Reuters survey found.

Saudi Arabia, industry sources say, produced 10.05mn bpd in August, adding to earlier increases due to higher use in refineries and domestic power plants to meet demand for air conditioning.

A Saudi official did not respond to a Reuters request for comment.

Bloomberg reported that Saudi output climbed 150,000 barrels to 9.95mn barrels a day last month, the sixth straight gain and the most for Opec’s biggest supplier in monthly data going back to 1989. It was the largest gain of any Opec member this month.

“The amount of oil the Saudis are pumping is impressive,” Sarah Emerson, managing principal of ESAI Energy in Wakefield, Massachusetts, was quoted as saying in the Bloomberg report.

“We could be looking at an historic bull trap.

Market sentiment may turn bearish by October and November.”

Guaranteed market Meanwhile, China’s biggest energy firm PetroChina will join Exxon Mobil in developing Iraq’s giant West Qurna oilfield and is in talks with Lukoil to buy into a second project at the field, industry sources said.

PetroChina is also in talks with Lukoil for a stake in another development project at the field,

West Qurna-2, a Lukoil source said. That source also declined to give details on the size of the stake under discussion.

“Lukoil bosses have already said they would prefer an Asian partner, a Chinese partner, in the project to secure a guaranteed market for oil sales,” the source said.

The project is small by the standards of Saudi Arabia’s immense hydrocarbon reserves Lukoil’s Chief Executive Vagit Alekperov said that the company wanted a Chinese firm to replace Norway’s Statoil at the project. Statoil agreed last year to sell its 18.75 per cent stake.

Financial China is the world’s second-largest oil importer after the US, and its growth in fuel consumption has driven global oil demand growth for a decade.

Faced with falling demand for imported oil in the US and Europe, oil producers from the Middle East, Russia, Africa and Latin America are all competing for a bigger share of China’s growing market.

Lukoil has also published consolidated US GAAP financial statements for the second quarter of 2013.

In the second quarter of 2013 the company’s net income of US$2bn increased 107 per cent compared to the second quarter of 2012. EBITDA was US$4.3bn, which is a 26 per cent year-on-year increase. Sales revenue reached US$35bn, which is a 8.2 per cent year-on-year increase mainly due to a growth in trading operations. ■

www.lukoil.com

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Gas

Saudi Arabia ‘emphasising natural gas development’ SAUDI ARABIA IS refocusing the strategy of its national oil company to emphasise natural gas development, according to Barclays analyst James C. West.

In a recently published study, West said the new focus on natural gas represents an attempt to displace subsidised oil in power generation.

Saudi oil use increased to 2.9mn bpd, 25 per cent of production, in 2012, up from 1.6mn bpd, 17 per cent of production in The Karan field 2000, the report claimed.

With internal consumption rising, Saudi Arabia has less oil available for the exports on which its economy and external accounts depend, it said.

“Reversing this trend is a priority in Riyadh,” West commented.

Barclays said it expects Saudi Aramco to increase spending on exploration and production to US$15bn this year from US$11bn in 2012, largely to develop gas resources and unconventional resource potential, including deepwater.

With gas reserves of 288 tcf, the country increased gas production to 9.9 bcfd last year from 8.9 bcfd in 2011.

The company is currently expanding non-associated gas production from the Karan, Arabiyah, and Hasbah offshore fields and has identified three areas of promise for unconventional development as the Northwest off Tabuk Province, South Ghawar in the Eastern Province and Rub Al-Khali (Empty Quarter).

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BP discovers gas offshore Egypt BP HAS ANNOUNCED that it has discovered gas at the Salamat well in North Damietta concession offshore Egypt.

The British oil and gas company said, “The wire longs, fluid samples and pressure data confirmed the presence of gas and condensate in 38 metres net of Oligocene sands in Salamat well.”

The deepwater exploration well, which is the deepest well in Nile Delta, was drilled using the sixth generation semi-submersible rig — Maersk Discoverer — at water depth of 649 metres reaching a total depth of around 7,000 metres.

Hesham Mekawi, regional president of BP Egypt, said, “Salamat discovery is a great outcome for our first well in this core exploration programme in the East Nile Delta. It shows our commitment to meeting Egypt’s energy needs by exploring the deep potential offshore the Nile Delta.”

Mekawi added that they are currently evaluating the standalone and tie-back to the nearby Temsah infrastructure development.

Salamat discovery is located around 75km north of Damietta and 35km to the north-west of Temsah offshore facilities.

BP has 100 per cent equity in the discovery.

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Petrochemicals

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Under pressure from a resurgent petrochemicals industry in the US and natural gas shortages at home, Saudi Arabian petrochemical companies are fighting back with expansion plans of their own.

Saudi Arabia faces

increasing competition W

hile Saudi Arabia saw a 7.5 per cent increase in petrochemical capacity in 2012, there are worries that the country is facing increasing competition.

Going forward, Kuwait-based Global Investment House said it expects “things to be more nervy” for the regional, and particularly Saudi Arabian, petrochemicals sector due to a number of factors, including the US shale-backed petrochemicals sector, commodity price volatility and continued troubles in Europe.

To arrest this decline, King Abdullah Bin Abdulaziz Al Saud recently laid the foundation for a number of projects at the Royal Commission for Jubail and Yanbu when he pledged US$87.2bn to the sector, with funds being allocated to companies such as Saudi Aramco and SABIC as well as private sector companies, said the Saudi Press Agency.

The Agency reported that new projects from the Saudi Jubail Petrochemical Co., National Methanol Company, Arabian Petrochemical Co. and the Saudi Arabian Fertilizer Company (SAFCO) will soon be underway.

US resurgence The increased investment in Saudi Arabia’s petrochemicals sector is in direct response to competition from the US, thanks to cheap and abundant shale gas, said investment company Global Investment House.

“Recent shifts in both supply and demand have led to growing gas shortages of natural gas in the region. At the same time, feedstock developments in other parts of the world pose threats as well as provide opportunities to GCC players,” the company’s report said.

“Adapting to this, GCC petrochemical companies have shifted to more liquid feedstock.

Most new major projects across the region are expected to use mostly liquid feedstock. This move to liquid feedstock will pose grave challenges to GCC players, as they do not offer the same cost advantages as gas feedstock,” it claimed.

The American Chemistry Council (ACC) claimed that access to cheap shale gas in the US has been directly responsible for 115 new chemicals and plastic projects which will be worth a combined US$80bn by the end of the decade.

ACC president and CEO Cal Dooley said, “The United States has become a magnet for chemical industry investment, a testament to the favourable environment created by America's shale gas as well as a vote of confidence in a bright natural gas outlook for decades to come.”

The increased investment in Saudi Arabia’s petrochemicals sector is in direct response to competition from the US

Saudi Aramco president and CEO Khalid Al-Falih and Dow Chemical Company CEO Andrew N. Liveris signed the Sadara joint venture shareholders’ agreement in October 2011.

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Maintaining the advantage The United Nations Environment Programme has however estimated that the petrochemicals industry is set to grow at a rate of three per cent per annum until 2050, with the largest growth experienced in the MENA region as well as the Asia Pacific.

The Saudi Arabian authorities are therefore moving on a number of fronts to maintain their advantage.

One of the major developments in the country has been the formation of Sadara, a joint venture between Saudi Aramco and Dow Chemical Company.

The joint venture will involve the construction and start-up of a large-scale chemical complex in Jubail Industrial City II. Comprised of 26 manufacturing units, the complex will be the first in the Middle East to use refinery liquids such as naphtha as feedstock.

By using best-in-class technologies to crack refinery liquid feedstock, the company will assist in the introduction of new specialised chemical plants and businesses as well as new value chains to complement Saudi Arabia’s existing chemicals landscape, according to Sadara.

As of June 2013, the company had hired more than 1,500 people, a vast majority of them Saudi Arabian nationals.

Luciano Poli, chief financial officer of Sadara said, “We are on track to deliver first products as expected in 2015, with the complex in full operation in 2016.”

Further developments include Sahara Petrochemicals and Saudi International Petrochemicals Company (Sipchem) recently agreeing to explore a merger.

“In our view, if both the companies agree on the merger, the combined entity is likely to have a more balanced basic chemicals and downstream exposure,” said Bahrain-based Securities and Investment Company (SICO).

Despite the challenging global landscape, the MENA region, and particularly Saudi Arabia, will continue to remain an important part of the petrochemical supply chain.

Regardless of competition from the US, its close proximity to Asian markets and heavy investments will ensure the region plays a crucial role in the global petrochemicals industry, especially as domestic demand is also on the rise. ■ www.oilreview.me

S06 ORME 6 2013 Petrochemicals_Layout 1 18/09/2013 18:53 Page 31

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S06 ORME 6 2013 Petrochemicals_Layout 1 18/09/2013 18:53 Page 32

Kuwait, South Korea discuss future petrochemical projects KUWAITI DEPUTY PRIME Minister and The KNPC head office Minister of Oil Mustafa Al-Shimali and South Korean Minister of Trade, Industry and Energy Yoon Sang-jick discussed future co-operation on refinery and petrochemical projects at a recent regional energy ministerial meeting in Seoul.

According to the Kuwait News Agency (KUNA), Al-Shimali demonstrated Kuwait’s eagerness to work with South Korea on refinery and petrochemical projects, noting that state-run Kuwait National Petroleum Corporation (KNPC) has recently opened its Seoul office to reinforce its energy ties with the country.

Al-Shimali also expressed his hopes that plans between KPC’s subsidiary and South Korea’s SK Energy to develop a refinery and petrochemicals complex in Indonesia would soon be put in to action.

In Kuwait, the Kuwait Oil Tanker Co. has purchased oil tankers from South Korean shipbuilders as part of its strategy to modernise its fleet, while the government and numerous companies have awarded South Korean companies for oil and infrastructure-related projects, such as the upgrade and expansion of refinery and the construction of power stations in oil wells.

South Korea depends on Kuwait for approximately 15-20 per cent of its crude oil imports and in July imported 518,000 barrels of crude oil per day from the country, making it the second largest crude oil supplier for South Korea.

Sang-jick expressed his country’s desire to achieve a strong partnership with Kuwait, highlighting the fact that two South Korean companies are currently engaged in petrochemical projects in the Middle East and that the country has the capability to co-operate with Kuwait on refinery and petrochemical projects.

32 Oil Review Middle East Issue Six 2013

Ilam Petrochemical Complex to come on stream in Iran THE FIRST PHASE of the Ilam Petrochemical Complex, situated in the west of Iran, will be inaugurated in the near future, according to the country’s Shana News Agency.

The project, which began construction in 2005, is projected to produce 460,000 tons of ethylene and 120,000 tons of propylene per year.

The country’s Islamic Republic News Agency (IRNA) claimed that Iran produced 14.3mn tons of petrochemicals in the first four months of the current Iranian year, which started on 21 March a figure which is up 3.6 per cent compared to the same time last year.

According to the IRNA, approximately 5.5mn tons of the products - valued at 100 trillion rials (US$4bn) - were sold on the domestic market.

The country has meanwhile exported US$3.15bn worth of petrochemicals in the same period of time, down 12.5 per cent year-on-year, according to Iran’s customs administration office.

Iran is also reported to have exported 2.15mn tons of tar worth US$1.09bn in the previous year, 46 per cent more than its preceding year.

www.oilreview.me

S06 ORME 6 2013 Petrochemicals_Layout 1 18/09/2013 18:53 Page 33

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S06 ORME 6 2013 Petrochemicals_Layout 1 18/09/2013 18:53 Page 34

S07 ORME 6 2013 Aramco_Layout 1 18/09/2013 19:09 Page 35

Saudi Aramco

After 80 years in the business, Saudi Arabia’s state-owned oil company remains a pivotal player in the global energy industry, though it is not without some daunting challenges going forward, writes Martin Clark.

Saudi Aramco:

still going strong

An offshore platform under construction in the Karan gas field

T

HE SAUDI ARABIAN Oil Company (Saudi Aramco) remains a pivotal player in the world’s vast energy supply matrix. Now 80-years-old, the state-owned enterprise has long played a pioneering role in the fastchanging oil and gas industry and has long been the world’s biggest single producer of crude oil.

In the company’s 2012 annual review, released this May, Aramco stated that it produced a staggering 3.5bn barrels of oil last year, or roughly 9.5mn barrels per day (bpd). That’s about one in every eight barrels produced anywhere worldwide.

It places Saudi Arabia at the top of the list in the Organisation of Petroleum Exporting Countries (OPEC), head and shoulders above rival Gulf states, including Iran and Iraq. It also outranks other major non-OPEC producers such as Russia and the US. Production capacity is even higher, estimated at some 12.5mn bpd.

Aramco’s largest single oilfield is Ghawar, which has now been producing for many decades, though the extent of the Kingdom’s ultimate reserves is largely unknown with new discoveries still being made. Last year, this included the Aslaf oil discovery, plus two separate gas discoveries, Umm Ramil and Sha’ur; the latter was made offshore in the frontier Red Sea area.

Saudi Arabia’s total oil reserves are currently estimated at 260.2bn barrels, while gas reserves are put at 284.8 trillion standard cubic feet (scf).

Indeed, natural gas has been a key feature of Aramco’s production profile through the years, though this has typically been from associated output at the large oil fields. In 2012, the company www.oilreview.me

reported total gas production of 10.7bn standard cubic feet of gas per day (scfd).

But Saudi Arabia’s positive industrial growth of recent years has put pressure on these supplies, which has prompted Aramco to seek out new reserves in order to boost output.

The group’s current flagship project is the Wasit gas plant, a step up in scale. This will be one of the largest gas plants Aramco has ever built and, along with another scheme, Karan, will raise the Kingdom’s gas processing capacity by about 40 per cent.

Wasit will process non associated gas from the offshore fields of Arabiyah and Hasbah. Under normal conditions, it is expected to supply 1.75bn scfd of sales gas, though the two offshore fields have a production potential of up to 3.05bn scfd of raw gas during emergencies or demand peaks. The Wasit complex will also be able to fractionate natural gas liquids (NGLs) produced elsewhere into ethane, propane, butane and natural gasoline.

Gas production is certainly on the up: in terms of raw gas to gas plants, production hit 3.924 trillion scf last year, an 8.3 per cent increase from 2011, and also the most in a single year in Aramco’s history. The company further produced 482mn barrels of NGLs, including 82mn barrels of condensate.

Headquartered in Saudi Arabia’s oil capital, Dharan, Aramco has grown together with the nation’s oil industry to become a vast global enterprise today. The company now boasts offices and affiliates across North America, Europe and Asia.

As well as upstream oil production, and international marketing activities, it is a co-venturer in various downstream projects as well, both at home and abroad. This has been a key focus in recent years as the group seeks to diversify and spread its activity to generate new income streams.

This mirrors a general economic diversification drive by the Saudi Arabian government, to boost job opportunities and wealth creation for a new generation of young people.

At home, big downstream initiatives include Rabigh Phase II, which groups Aramco with Sumitomo of Japan. Then there is the Sadara Chemical Company, a joint venture with the US’ Dow Chemical, in Jubail Industrial City II. Once complete, it will be the largest petrochemical facility ever built in one single phase, with 26 manufacturing units, providing more than 20,000 direct and indirect jobs and producing approximately 3.2mn tons of chemical and plastic products every year.

Refineries investment On the refining side, Aramco and its subsidiaries own or have equity interest in domestic and international facilities with a total worldwide capacity of almost 4.5mn bpd. Aramco’s equity share in this total is roughly half, about 2.4mn bpd, making it the world’s sixth biggest refiner.

As well as various overseas investments, this refining focus has resulted in an increase in refined products exports out of Saudi Arabia itself, another cash boost to the Kingdom’s economy. Starting up this year is the 400,000 bpd Saudi Aramco Total

Oil Review Middle East Issue Six 2013 35

Saudi Aramco

S07 ORME 6 2013 Aramco_Layout 1 18/09/2013 19:09 Page 36

A crude stabiliser at Saudi Aramco’s Khurais oil production facilities

Refining and Petrochemical Company (SATORP) in Jubail, a joint venture with Total of France.

Other projects include the YASREF joint venture with Sinopec of China, a full-conversion refinery using 400,000 bpd of Arabian Heavy crude. It will produce over 13.5mn gallons per day of ultra-clean transport fuels for foreign and domestic markets as well as other high-value refined products.

The similar sized Jazan refinery is a whollyowned Aramco venture designed as a centre for driving industrial activity in the south-western part of the country. It will produce gasoline, ultralow sulphur diesel, benzene and paraxylene on start-up in 2016.

The refinery will also be integrated with the world’s largest Integrated Gasification Combined Cycle (IGCC) power complex. This will generate 3,000MW of electricity to cover the refinery’s needs and facilitate the creation of small industries nearby as well as provide power for cities in the area. An adjacent marine terminal on the Red Sea coast will accommodate Very Large Crude Carriers (VLCCs) for the supply of crude oil to the new refinery.

Although oil and gas remains Aramco’s primary focus, it is also tracking future industry opportunities. The company is continuing to expand its portfolio further downstream into chemicals, and is studying new and alternative energy sources, including the unconventional gas arena.

The Kingdom’s Unconventional Gas Initiative has already proved that substantial shale and tight gas deposits exist in Saudi Arabia. The hope is that one day these unconventional gas deposits will supplement the Kingdom’s supplies of conventional gas resources to help meet local energy demand.

Exploration and appraisal programmes continue in three prospective areas for unconventional gas, in the Kingdom’s north west, South Ghawar, and condensate-rich shale gas in the Rub al-Khali (Empty Desert).In addition, Saudi Aramco is exploring alternative and renewable energy technologies too, including solar power applications for remote installations.

It underlines the depth and sheer scale of this giant oil company, which now employs more than 54,000 people, the vast majority of them - about 86 per cent - Saudi Arabian nationals.

36 Oil Review Middle East Issue Six 2013

Challenges Despite this strong, entrenched position, and Aramco’s dominant role in the world’s oil market, it is not without great challenges. As well as developing and transitioning to new energy technologies, the company faces pressure from above to respond to key economic demands from government in terms of stimulating job creation and wealth creation especially in under developed areas. This has also spurred the diversification drive in a bid to generate more wealth out of the nation’s hydrocarbon production. Like other major oil suppliers in the Gulf, it is also facing up to changes in global demand, with Asia now by far the Kingdom’s greatest oil market.

More than 50 per cent of all Saudi Arabian crude oil exports now go to the Far East.

There is also the need to respond to Saudi Arabia’s own oil and gas requirements, which continue to soar. The Kingdom is the largest consumer of petroleum in the Middle East, used not only for transportation fuels, but increasingly for direct burn in the power generation sector.

So far, it has been adept at responding to major challenges but, with the increased complexity of the energy industry, things are getting ever more demanding. Demand management side strategies are playing a leading role here - in fact, state power company Saudi Electricity Co. has appointed a senior Aramco executive, Ziad bin Mohammed alShiha, as its new chief executive, highlighting the increasing crossover, and the national oil company’s role in the electricity supply sector.

In this area, Aramco is finding its own solutions too where possible. The company recently signed new Energy Conversion Agreements (ECAs) for fuel efficient cogeneration plants at three of its major oil and gas complexes.

The new cogeneration power plants will efficiently provide electricity and steam needs at the company’s Abqaiq, Hawiya and Ras Tanura facilities and form part of the group’s commitment to energy efficiency in its operations. The agreements are with Marubeni Corporation and JGC Corporation of Japan, and Aljomaih Energy and Water Company. The new plants will generate a total of approximately 900MW of power and 1,500 tons of steam per hour when they come on stream in 2016.

Aramco’s executive director of new business

development, Ahmad al-Khowaiter, described it as one of the most important types of projects aimed at improving energy efficiency in the Kingdom.

“Not only will we meet our own power needs, but we will deliver efficient power with excellent technology and high efficiency in energy consumption and environmental performance,” he said.

The project’s partners will build and operate the plants for 20 years, with Aramco holding a 50 per cent stake in the new facilities. Cogeneration is more energy-efficient for producing power and steam because it uses less fuel, and it lowers emissions for better environmental performance, compared to conventional steam and power generation. Nonetheless, Saudi Arabia plans are all fine provided the resources are there in the ground to meet demand and respond to any market shifts.

While the oil is still plentiful for now, Aramco’s shift to new unconventional oil, for example, hints at a time when reserves may not be so simple, or so cheap, to extract.

This is best highlighted in the gas sector where the Kingdom launched a search some years earlier to identify new reserves to feed the power sector and offset high domestic demand for crude. But identifying new non-associated gas deposits for development has not been easy. Several partnerships with international players, like Shell and Total, to look for gas in the Empty Desert region effectively came to nothing.

Even now, little has been found in the area and the discoveries that have been made have been hard to monetise with foreign firms stalling at the tough investment terms on offer.

Oil and gas discoveries are still being made but not on the scale that Riyadh would like. Aramco’s chief executive, Khalid al-Falih has warned that rising domestic demand could result in the loss of three million bpd of the Kingdom’s crude oil exports by the end of the decade, if no changes are made to current trends.

Financing this new multifaceted investment drive, across both the upstream and downstream sectors, is another dilemma for Aramco. Although the group is well funded, and has typically self-financed its own projects, it is likely there will be a greater emphasis on third party solutions in the future. The Sadara complex is a good example of where Aramco has used its clout to attract huge project financing.

To get the scheme off the ground, Aramco and Dow Chemical have partnered with a host of export credit agencies, commercial banks, as well as Saudi Arabia’s own Public Investment Fund (PIF), for approximately US$10.5bn worth of project financing.

It supplements a further US$2bn raised through a Sukuk Islamic bond, bringing the total Sadara project financing raised to a massive US$12.5bn.

The financial clout of Aramco - backed by the resources of Saudi Arabia, and the Kingdom’s own government - means further third party financing could be a good option as the downstream diversification drive continues. And it may be necessary too if Saudi Arabia wants to stay ahead of the pack and maintain its leading edge position in the world’s fast changing - and increasingly costly energy industry. n www.oilreview.me

S07 ORME 6 2013 Aramco_Layout 1 18/09/2013 19:09 Page 37

Saudi Aramco

S07 ORME 6 2013 Aramco_Layout 1 18/09/2013 19:09 Page 38

Effective water and wastewater treatment is vital to the oil and gas sectors, especially today when water conservation is key. Oil Review spoke to Asad Iqbal Khan, business development manager at AES Arabia, which is one of the region’s leading water and wastewater solutions providers.

Saudi Aramco approval just reward for

water specialists H

aving been in the market since 1985, Saudi Arabia's AES Arabia is one of the region's most experienced water and wastewater solutions providers. The company, which started life in the US and has headquarters in Riyadh, continues to build upon it's near 30-year experience and is looking to further increase its activity in the region.

AES also has branch offices in Al Khobar and Jeddah and has a team of 300 professionals in the company's design and execution office devoted solely to the oil and gas and petrochemicals sectors.

Last year AES was approved by Saudi Aramco as an ASME pressure vessel manufacturer.

"Gaining approval is tough, and approvals for the design and manufacture of pressure vessels are rare, so it is a boon for us," said AES business development manager, Asad Iqbal Khan. "Saudi Aramco approval underlines the high standards of quality control we maintain, and is of great consequence for us because nearly all of the projects we carry out have a requirement for ASME pressure vessels."

Khan emphasised that AES has not just enjoyed continued growth within Saudi Arabia, such as winning the contract to design and construct a seawater reverse osmosis plant at the King Abdullah University of Science & Technology Research Park under Saudi Aramco's management, but also in other parts of the region, including Iraq and Algeria. He added that other short-lived competitors in the water and wastewater treatment market create some market instability but AES are able to weather any such fluctuations due to its established reputation and vast experience.

38 Oil Review Middle East Issue Six 2013

"The scarcity of water has pushed the envelope for water engineering to the limits” “We were enjoying a semi niche market status working in oil and gas sectors however there are companies getting entry and exit every year and trying to destabilise the market,” said Khan. “It doesn’t threaten us, but of course there is a temporary challenge because of the competitor’s unawareness of the compliances and specifications."

Added pressure comes in the form of the increasing need to conserve, utilise and reuse as much water as possible.

"The scarcity of water has pushed the envelope for water engineering to the limits," said Khan. "In countries as dry as Saudi Arabia, this poses the maximum challenge for engineers to keep coming up with innovative and effective solutions."

But with almost three decades of experience, AES is ideally placed to meet these challenges and to continue investing in R&D and developing innovative and groundbreaking water and wastewater solutions.

“That’s why AES provides total water management for all waters used by, generated by, or emanating from, the petroleum and petrochemical industries," explained Khan. "No matter what the application or global location, we have the experience and expertise to resolve water issues." n

Asad Iqbal Khan, Business Development Manager, AES Arabia

www.oilreview.me

S08 ORME 6 2013 Aramco News_Layout 1 19/09/2013 17:05 Page 39

Saudi Aramco Review

S08 ORME 6 2013 Aramco News_Layout 1 19/09/2013 17:05 Page 40

Maritime expansion promoted SAUDI ARAMCO SIGNED a Memorandum of Understanding (MOU) with the National Shipping Company of Saudi Arabia (Bahri) and Sembcorp Marine Ltd. The three parties will prepare a detailed feasibility assessment aimed at the development of a world class maritime yard in the Kingdom of Saudi Arabia.

The intended maritime yard will provide engineering, manufacturing & repair services related to rigs, platforms, commercial vessels and offshore service vessels. Saudi Aramco is committed to leveraging its current and future business needs to actively promote economic development in the Kingdom and to ensure local availability of world class services to support its growing national and international portfolio.

In November 2012, Saudi Aramco agreed to merge the fleet and operations of Vela International Marine Ltd. with Bahri to create a strong national champion for maritime transportation.

This new step further enhances that investment and marks the continued commitment to the development of the maritime sector and the opportunities the sector offers for economic growth www.bahri.sa and job creation.

40 Oil Review Middle East Issue Six 2013

Saudi Aramco plans to start export from JV this month THE FIRST Satorp is processing SHIPMENTS of oil approximately 120,000 barrels products from a day of Arab Light oil.

Saudi Aramco Total Refining and Petrochemical (Satorp) are expected to be ready to export from Jubail later this month, industry sources claimed.

Exports of gasoline and diesel are set to follow next month as new units of the refinery begin operation, according to the sources.

Saudi Aramco Products Trading, an Aramco division, will sell the fuel oil in cargoes of 80,000 metric tonnes through direct negotiation, rather than by tender, an industry source said.

Satorp is processing approximately 120,000 barrels a day of Arab Light oil at a crude distillation unit, with another unit set to start up in October.

A coking facility, which will break down fuel oil to produce diesel and gasoline, is to begin operations in November and will enable the refinery to process heavier oil grades.

Satorp also confirmed that its Aden Oil Refinery in Yemen was starting production and would also begin exporting products imminently.

www.oilreview.me

S08 ORME 6 2013 Aramco News_Layout 1 19/09/2013 17:05 Page 41

Saudi Aramco Review

Cogeneration deals signed SAUDI ARAMCO, HAS signed three new energy conversion agreements with a Japanese-Saudi consortium to build and operate cogeneration power plants in the kingdom, in a bid to become more energy efficient throughout its operations.

The agreements for the cogeneration plants, which use less fuel and lower emissions for better environmental performance, were signed with Marubeni Corp. nd JGC Corp. of Japan and Saudi Aljomaih Energy & Water Co., Aramco said in a statement.

The plants will generate a total of about 900 MW of power and 1,500 tons of steam per hour when they come on-stream in 2016 at the company’s Abqaiq, Hawiya and Ras Tanura facilities.

Aramco did not disclose the value of the deals but said it would hold a 50 per cent stake in the plants, which will have a thermal efficiency of more than 80 per cent, compared with conventional generation thermal efficiency of 40-50 per cent.

Marubeni, JGC and Aljomaih are to build the facilities and will operate the plants for 20 years.

Saudi Aramco produces around 2,000 MW of electricity and buys 1,000 MW from Saudi electricity to meet its needs. It has previously said it plans to double its powergenerating capacity to 4,000 MW by 2015 to supply all the electricity it needs to produce crude and natural gas.

Meanwhile, the company also announced that the Midyan gas field project in the Red Sea is expected to produce 75mn cubic feet of gas per day, Saudi Aramco's chief executive said, production that would help supply the growing domestic market.

"The field development of Midyan is going ahead steadily as planned in all respects," Khalid al-Falih said in a statement posted on the state-run energy giant's website.

Gas from Midyan will be pumped to the province of Duba to feed new power stations planned by the Saudi Electricity Company and Aramco, al-Falih said.

Saudi oil minister Ali Naimi has said the field development, which began earlier this year, would be done quickly. Falih did not say when production was expected to begin.

His daily output estimate is the equivalent of 2.12 million cubic metres.

Midyan, which is also expected to produce around 4,500 barrels a day of condensate, a light oil, was discovered in the 1980s.

www.oilreview.me

Oil Review Middle East Issue Six 2013 41

Saudi Aramco Review

S08 ORME 6 2013 Aramco News_Layout 1 19/09/2013 17:05 Page 42

Aramco Energy Ventures backs AnTech ANTECH LTD, A specialist engineering company that provides directional coiled tubing drilling (DCTD) services, announced that it has secured a substantial investment from Saudi Aramco Energy Ventures (SAEV) and London-based Calculus Capital, following an initial investment from eCORP, which operates a considerable amount of shale deposit acreage in Europe.

The funding is being used to launch AnTech’s new DCTD service capability so that it can use its bespoke systems to deliver highly cost-effective directional drilling solutions to the oil and gas industry. AnTech has set its sights on providing DCTD services with its field-proven drilling systems for operators seeking to improve efficiency and reduce costs.

“In addition to its affordability, the beauty of DCTD is its ability to easily drill underbalanced with a smaller footprint,” said Toni Miszewski, Managing Director of AnTech.

“As a result, it is a very effective way to reenter existing wellbores in order to increase recovery from mature fields, without affecting the environment or damaging the formation,” he added.

42 Oil Review Middle East Issue Six 2013

AnTech, which specialises in DCTD, offers a complete package; from advising on initial requirements and modelling detailed well plans to providing the right equipment and full directional drilling services. Drawing upon its experience in developing innovative DCTD systems and drilling in the field, AnTech has a thorough knowledge of DCTD technology and its applications. Over time, AnTech has developed a wide range of specialist analytical tools and software that it uses to optimise solutions. The company provides a “one-stop shop” for advice about DCTD to the oil and gas industry. “We model scenarios and advise operators about what they need to do, and how to do it efficiently and cost-effectively,” said Miszewski. “Plus, we can help set up the complete package, working with the rig companies to formulate strategy, equipment, and on-the-job execution,” he added.

Already, the results of the recent cash instalments are taking shape as the company gears up to provide drilling campaigns to customers. During the past six months, AnTech doubled the size of its engineering team, and is currently recruiting for additional experienced DCTD field engineers and support

The directional drilling crew rigging up the cablehead assembly

staff. It also expanded its global headquarters to provide improved operations, manufacturing and maintenance facilities. Plans to set up a new service base in Houston, Texas are well underway.

Although AnTech’s first move is to set up operations in the United States and the Middle East, the company is in active discussions with companies around the world about carrying out potential drilling campaigns. AnTech will expand its network of operating facilities as customer needs arise.

www.oilreview.me

S09 ORME 6 2013 KOGS MEPEC DIOGE Features_Layout 1 19/09/2013 11:55 Page 43

SHELL ECO-MARATHON Shell Eco-marathon challenges student teams from around the world to design, build and test ultra energy-efficient vehicles. With annual events first in the Americas, then Europe and Asia, the winners are the teams that go the furthest using the least amount of energy.

Find out More at

www.shell.com/ecomarathon

S09 ORME 6 2013 KOGS MEPEC DIOGE Features_Layout 1 19/09/2013 11:55 Page 44

As key supporters the NOC and the Oil Ministry welcome the expertise and new technologies this year’s combined Kuwait Oil & Gas Show (KOGS) events will be bringing to a country which is undergoing a period of significant investment and expansion.

Neighbours and nationals sign up for

technical KOGS T

HE SOCIETY OF Petroleum Engineers’ combined biannual Kuwait Oil & Gas Show/Conference 2013 events* open in Kuwait City under the patronage of Prime Minister HH Sheikh Jabber Mubarak AlHamad Al-Sabah on the 7th October. The business and technology exhibition starts one day later. All activities, which the show organisers Arabian Exhibition Management (AEM) say will combine to form the single largest O&G gathering ever seen in this state, run at the Mishref International Fairground until the 10th.

KOGS 2013 will incorporate an international showcase of dedicated hardware and oil/gas services along with a broad-spectrum technical conference focusing on the scientific and engineering factors facing those working in the vicinity of the upper Gulf.

Activities Co-ordinated internationally by the MENA office of the Society of Petroleum Engineers in association with a committee of senior oil company representatives, operators and academics from around the world the four-day conference agenda focuses on both up- and downstream development activities in the region. “The power of collaboration, people and technology in the oil and gas industry” is its overall theme.

Specifically the conference brochure mentions advances in reservoir characterisation, well-head completion, production maximisation, development of unconventional resources, environmental concerns and related case studies, all under the following four broad discussion topics: 6 Upstream facilities in the 21st century 6 Downstream and refining; plans for tomorrow 6 New resources and complex developments; and 6 Responsibility to a sustainable future In addition special conference sessions planned by the SPE are listed as follows: 6 Industrial challenges and EOR; 4D seismic; special drilling; shale gas development 6 Professionals in the industry 6 New tools for communication, image and crisis management; and 6 Education and training, including opportunities within local schools All personnel participating in these presentations and panel discussions, along with the accompanying Technical Sessions described in detail, with specific timings, are included on the website’s Session

44 Oil Review Middle East Issue Six 2013

www.kogs2013.com

The organisers point out that Kuwait is currently home to the world’s sixth largest conventional oil reserves Planner pages (see contacts below).

Two special training sessions are being offered to delegates this year at extra cost, covering the 'Science and technology of water treating', and 'Artificial lift technologies for production optimisation'. There is also a half-day field trip on offer, organised by KOC, on the 7th October to the Jal Az Zor area of the north.

Soaring demand The organisers point out that Kuwait is currently home to the world’s sixth largest conventional oil reserves, as well as being the fourth exporter in terms of volume sales. Production currently stands at around 2.5mn bpd; a number of large-scale ventures have been announced to increase this to four million by 2020. Efforts to raise output of natural gas, both associated and non-associated, are being stepped up at the same time, primarily to

meet soaring domestic demand; the Al Zour processing complex will eventually be one of the largest in the Gulf.

SPE is a global not-for-profit organisation serving the information needs of professionals engaged in the development and production of energy resources.

Say the organisers: “Massive reserves, unique oil recovery projects, a critical need for gas, mega refining plans and ample funding make Kuwait one of the most compelling industry environments in the region.”

And adds an official from the Ministry of Oil: “KOGS is an ideal platform for conducting business, the exchange of ideas and technology and sharing of best practices.”

As part of the Allworld Exhibitions Alliance AEM is also associated with three major events held regularly in Bahrain – GEO, MEOS and Middle East Petrotech. ■

* Arabian Exhibition Management can be called on +973 17 550033 (fawzi@aemallworld.com). For conference details not found at www.kogs2013.com call the local representative of SPE on +971 4 457 5800 (dchoitram@spe.org) www.oilreview.me

S09 ORME 6 2013 KOGS MEPEC DIOGE Features_Layout 1 19/09/2013 11:55 Page 45

Kuwait Energy finds more oil in Egypt KUWAIT ENERGY HAS announced that it has found more oil and gas at its El Salmiya-2 well on the Abu Sennan concession in Egypt’s Western Desert.

The firm’s partner Beach Energy said that a drill stem test of the Kharita formation initially flowed at a rate of 3,530 bpd and 133,089 cubic metres per day of gas. The 42° API light crude yielded from the test is the first time oil has been encountered in the Kharita formation within the concession.

The Kharita oil column has been measured to a depth of 68 metres, equating to 49 metres true vertical depth and, according to the joint venture, the sandstone is of excellent quality with 56 metres of net pay. Kuwait has estimated gross proven and probable reserves of 18.5mn barrels of oil and four million cubic metres of gas in the Kharita play alone.

Kuwait Energy operates the Abu Sennan concession with a 50 per cent interest while Australia-based Beach Energy holds a 22 per cent stake. Dover Investments holds the remaining 28 per cent equity.

Mixed-flow ESP system A REGIONAL OPERATOR used an electrical submersible pumping (ESP) system with standard radial stages for artificial lift in Egypt. The well experienced decreased flow rates and produced from a formation known to accumulate calcium carbonates (scale).

The operator struggled with this ESP because production was erratic, unreliable, and inconsistent. After continuous problems, the pump became plugged.

Average run life was less than three months, which forced the operator to intervene and look for another artificial lift solution. The operator approached Baker Hughes for a replacement ESP system. The solution required increased reliability, improved production, and extended run life.

Baker Hughes proposed an enhanced ESP system with a robust Stabilized Heavy Duty (SHD) pump that contained special mixedflow stages. These stages were designed by Baker Hughes engineers with wider vane openings to reduce the solids and scale accumulation.

The ESP system from Baker Hughes delivered improved performance, and the flow rate increased more than 150 per cent.

The ESP system provided continuous and stable production of 650 BFPD in the presence of solids and scale. Previous production was only 250 BFPD. The ESP system more than doubled previous run times, which decreased operating expenses and workover costs. www.oilreview.me

Oil Review Middle East Issue Six 2013 45

S09 ORME 6 2013 KOGS MEPEC DIOGE Features_Layout 1 19/09/2013 11:55 Page 46

Kuwait is planning to boost its oil and gas sector through major investment.

Kuwait allocates US$75bn for

oil-related projects T

HE INAUGURAL SOCIETY of Petroleum Engineers Kuwait Oil & Gas Show and Conference (KOGS 2013) is set to take place under the patronage of the Prime Minister of the State of Kuwait His Highness Sheikh Jaber Mubarak Al-Hamad Al-Sabah. Set to be the largest gathering of the oil and gas industry ever seen in Kuwait, it incorporates a broad spectrum conference programme organised by the Society of Petroleum Engineers and a world-class international exhibition of oil and gas hardware and services organised by Allworld Exhibitions’ member Arabian Exhibition Management.

Opportunities “Kuwait is one of the most compelling industry environments in the region. By 2020, it aims to reach a production capacity of four million bpd and it is estimated that Kuwait has allocated US$75bn for the development of oil related projects. An international exchange of technology and experience is critical to realising these plans. KOGS 2013 will educate and stimulate the petroleum sector whilst facilitating business opportunities for participants. Kuwait’s strategic location also provides vital access to important neighbouring markets in Iraq and Saudi Arabia,” said Arabian Exhibition Management’s director of sales and marketing, Fawzi Al Shehabi.

KOGS 2013 is fully supported by the Kuwait Ministry of Oil and Kuwait Petroleum Corporation (KPC) and its subsidiaries.

“It is high time that Kuwait hosted an international event of this stature which befits our standing as one of the world’s leading oil producing nations, and which mirrors the great strides we have made both upstream, downstream and in our overseas activities,” KOGS 2013 chairman and KPC chief executive officer Nizar M. Al-Adsani said.

46 Oil Review Middle East Issue Six 2013

Kuwait needs foreign technology to develop its oil and gas sector

“KOGS 2013 will be an excellent opportunity to share with the world our most recent and important projects related to the exploration, development and optimisation of our production capability,” added KOGS 2013 executive committee chairman and Kuwait Oil Company chief executive officer Hashem S. Hashem.

Kuwait’s strategic location also provides vital access to important neighbouring markets The KOGS 2013 conference will open on 7 October at the Regency Hotel in Kuwait with an executive plenary session on the conference’s theme ‘The Power of Collaboration, People and Technology in the Oil and Gas Industry.’

The session will begin with welcome addresses from His Highness Sheikh Jaber Mubarak Al-Hamad Al-Sabah, the Prime Minister, State of Kuwait; Nizar Al Adsani, chief executive officer, KPC; Hashem Hashem, chief executive officer, Kuwait Oil Company, Hosnia Hashim, vice president operations, KUFPEC; and Egbert Imomoh, 2013 Society of Petroleum Engineers president. Keynote speeches will follow from OPEC, BP, Halliburton, KPC, Total and Saudi Aramco.

Renowned A total of 17 technical sessions with more than 100 technical and poster presentations on topics covering downstream, reservoir management, product optimisation, sustainable development, drilling and completion technologies will follow during the subsequent three days of the conference at Kuwait International Fair, Mishref.

The KOGS 2013 conference will also offer four panel sessions led by presidents, chief executive officers and directors. Discussion topics include ‘Growing Our Organisational Capabilities,’ ‘Enhancing In-Country Value through Regional Co-operation,’ ‘NOC, IOC, Service Industry Collaboration,’ and ‘Downstream and Petrochemical: Forging New Relationships.’

“The conference and exhibition will gather a strong line-up of international renowned professionals from Kuwait and from across the international oil and gas industry, who will address the industry’s strategic and commercial challenges and opportunities. We are looking forward in all confidence to an outstanding event,” said KOGS 2013 Conference Programme Chairperson and KUFPEC vice president operations, Hosnia Hashim. ■

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Excellence in process engineering is the theme of this year’s technical get-together in Bahrain. Once again talent development will be prominent on the agenda.

Engineering excellence in

the spotlight T

HE LATEST MEETING in ME Energy Events’ successful two-yearly MEPEC Conference and Exhibition series* runs in Bahrain from 29 September (opening events only) - 2 October. The last downstream get-together attracted more than one thousand participants to the three-day presentations themselves – plenaries, themed special sessions and simultaneous technicals, a pattern which is being repeated this year, and brought in 60 trade exhibitors at the same time. The combined events are always particularly well supported by Saudi nationals.

Saudi Aramco is itself principal sponsor of the full technical programme which is supported by the New York-headquartered American Institute of Chemical Engineers, and again by this journal itself.

Innovation A full range of social events is available to fully paid-up participants, and once more the organisers are making a special effort to attract student and female participation; “Developing local content and talent” are two of the special topics being covered within special hour-long sessions on this occasion.

Technology in general and innovation in particular are always at the heart of all MEPEC conferences, and this year’s overall conference theme is “Overcoming future challenges through engineering excellence.” The programme summarised below demonstrates this very clearly; the full list of Technical Sessions (three focused streams running simultaneously before and after lunch on each day; delegates are advised to check these on the website to ensure they make the best use of their time) can be consulted on the website, together with details of all Presenters and Moderators.

Lengthened plenary sessions start each working day, with an exceptional array of mostly local technical specialists appointed this year to hold the ring between panels of internationally-renowned speakers.

These Chairpersons include Abdallah S Jumah, the former head of Saudi Aramco itself, and Gasem Saleh Al-Shaikh (CEO, PCMC) on the 30th (covering the keynote on ‘Manufacturing excellence and localisation’).

On 1 October discussions on “Innovation and technology development’ will be under the control of Abdulrahman Al-Jawahery (GPIC) and Franco Restelli (Invensys). And on the final day the full conference session on ‘Clean fuel and sustainability’ will be chaired by A Majeed Al Gassab of the Bahrain Society of Engineers.

Lengthened plenary sessions start each working day, with an exceptional array of mostly local technical specialists The first full day is going to be a particularly interesting one this year because after lunch the whole question of ‘Localisation across the value chain’ is being opened up in a general session by a distinguished panel which will include the president of Ma’aden Phosphate Co, a key backer of the fast-developing phosphate rock-based P205 fertiliser industry next door in Saudi Arabia. This follows in the extraordinarily successful business tracks created by SABIC with nitrogen fertilisers (urea) back in the 1980s.

Prominent As in oil and gas, recruitment of suitable skilled personnel is now a problem faced by both up- and downstream operators in both segments of this globally-vital industry; the Student and Promoting Female Opportunities components of MEPEC will certainly be doing all they can to put this right.

This hour-long special session will be followed by another on ‘Project financing and economics’, which will have a special focus on the particular problems faced in attracting funding by small- and mediumsized enterprises (SMEs). Bank officials (from Gulf International) and business consultants (McKinsey & Co) will be prominent on the panel.

Special sessions on the second full day will focus on ‘Shale gas and shale oil’ and ‘Technopreneurship’. The first – an inevitable topic this year - is sub-titled ‘Retooling process technologies’, and will focus on the whole refining chain and how it is now having to adapt to these unconventional raw materials around the world. The Saudi NOC will be making a significant contribution here. And the second session will be looking at the wider subject of technological development and innovation within a commercial environment, with important input from local academics from KAUST itself, an important supporter of the whole conference.

And on Day 3 the twin focuses in the after-lunch sessions will be on ‘Water processes’ and ‘Talent development’. Key player GE Water will be contributing to the first of these, and the second has been included to coincide with the publication earlier this year of a landmark report from the US’s National Academy of Sciences (Earth Studies Division) on ‘Emerging workforce trends in the US energy and mining industries’. Highly skilled labour shortages are not unique to the Gulf and North African states. ■

*For full details of the ME Process Engineering Conference & Exhibition visit www.mepec.org (+971 4427 0739 or info@mee-events.com) www.mepec.org

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Ebrahim Talib, deputy chief executive, Refining & Marketing, Bahrain Petroleum Company (Bapco) describes how the company’s commitment to innovation and investment is adding value for the Kingdom of Bahrain.

Vision, values

and investment T

HE FUTURE OF the oil industry remains uncertain. An austere but also invigorate supporting industries, such as construction and material economy and strong competition are making it difficult for most supplies. While technologies drive processes, the responsibility for achieving companies to achieve their commercial objectives. However, having operational excellence and maximising performance levels will continue to be a clear vision provides the strategic framework in which businesses the measure of success for Bapco. can still prosper. Furthermore, with the right The oil and gas industry has experienced values in place and the balance achieved dramatic changes in recent years. The between effective operational investment combination of environmental concerns and and corporate responsibility, companies in global demand for crude oil and natural gas the sector will sustain long-term benefits for has forced companies to take short-term both commerce and the community. cost-cutting measures. However, Bapco Bapco’s vision is ‘Striving for Excellence’ continues to invest in Quality Management - a clear message that is the guiding (QM) and Environment Management principle to which the company operates.

Standards (EMS) to maintain its ethos for More than a hydrocarbon producer and continued excellence. Bapco Refining and refiner, Bapco is a major employer for the Marketing is ISO 9001 accredited. ISO Kingdom of Bahrain and is active in principals of System Thinking in sponsoring various community initiatives and Management Review, a Process Approach institutions to helping nurture the next and a Factual Approach to Decision Making generation of talented engineers to build are used extensively in Bapco control communities. This approach is in line with processes. The principal application of ISO Bahrain’s Vision 2030, which envisages oil 9001 in Bapco is to ensure customer providing the foundation for a bigger and satisfaction though the sustainable supply of more sustainable economy. products on time, in full and on specification.

The focus on improving collaborative Bapco’s Refinery, Sitra and Wharf decision making should be an integral part operations are certified to ISO 14001: 2004 of the strategy to improve downstream Standard. The EMS provides a formalised supply chain activities, forecast accuracy, structure with clearly defined procedures, distribution scheduling and execution. roles and responsibilities for ensuring that A vital element in Bapco’s long-term environmental issues are identified quickly strategy in this regard was inaugurated back and appropriate control measures are put in in 2011 by His Royal Highness the Prime place to minimise the impact on the Minister, Prince Khalifa bin Salman Al organisation’s operations, activities, products Khalifa. Taking ultra low sulphur or services and ensures a clean environment unconverted oil feedstock from the recently- Ebrahim Talib - “Bapco is currently implementing for the community at large. Our belief is that a comprehensive investment programme” commissioned Low Sulphur Diesel effective EMS also leads to continual Production (LSDP) complex hydrocracker at improvement of environmental performance. the refinery, the US$430mn Lube Base Oil Bapco is implementing a comprehensive Plant (LBOP) has the capacity to manufacture programme to create some of the world’s Bapco is implementing a up to 400,000 tonnes per year of Group III most sophisticated refineries. Backed with Very High Viscosity Index (VHVI) lubricant billions in investment, the multi-dimensional comprehensive programme to base oils. These products meet next project will ultimately create a refinery create some of the world’s most generation lubricant performance and reflecting technological excellence. The key sophisticated refineries environmental standards, which are in objectives are to manufacture higher value increasing demand in Europe and North products to increase revenue.

America.

With approximately 95 per cent of Bapco is currently implementing a comprehensive investment programme refinery products exported around the world, the business strives to increase and one of the largest in the country’s history, which will see it transformed value through refining and providing better returns for the Kingdom of Bahrain. into one of the world’s most sophisticated refiners and also a significant Bapco is showing many successes, including the Low Sulphur Diesel upstream player, injecting valuable new revenue streams into the national Production project, which revolves around one of the largest single train economy by 2018. At the heart of this programme is the Refinery Master Plan. hydrocrackers in the world and one of the largest single train ultra low sulphur This multi-dimensional project will ultimately create a refinery reflecting diesel hydrotreaters. The most recent application of state-of-the-art technology technological excellence in terms of product slate and establishing Bahrain as is through the joint venture with Neste Oil and nogaholding, in the Lube Base a highly competitive global refining hub.

Oil facility, which produces very high quality lube base oils, resulting in high Strategic investments at Bapco will not only create additional jobs internally, premium products and revenues for Bahrain and its joint venture partner. ■

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Never has the gas industry faced bigger challenges in terms of developing both conventional and unconventional supplies. DIOGE will be the place to see all the latest technologies designed to cope.

Gas experts descend

on Doha M

EETING IN QATAR from 7-10 October visitors to this year’s Doha International Oil & Gas Exhibition¹ will see all the latest technologies and supplies for the industry, gas development requirements in particular. The show will be following shortly after the second Summit of the Gas Exporting Countries Forum, held in Moscow at the beginning of July. Qatar is a founder member of the GECF and its headquarters are located in this fastexpanding city².

Oil Review has been appointed Official Publication for this important event, which will be taking place under the patronage of the minister of energy & industry HE Dr Mohammed Bin Saleh Al-Sada.

Organisers, Qatar Expo Event Management, point out that this will be another excellent opportunity within the southern Gulf to 'gauge what’s new in the market, evaluate products and supplies, set up supply chains, obtain technical knowledge and evaluate new industry projects … to maintain business relationships with the world’s leading manufacturers.'

Huge quantities And they describe the eighth DIOGE as being planned as 'a fantastic platform that strengthens relationships with key players and suppliers to the gas industry, where the latest products, services and areas of expertise can be showcased directly to the most influential gathering of gas professionals.'

Gas is right at the top of the international agenda as this exhibition takes place, of course, and nowhere less than right here in the powerstretched Gulf. Most of the discussion abroad is naturally about unconventional supplies, and the impact of huge quantities of newly-developed shale gas on the total market.

Already this has been clearly seen in North America; the speculation is mostly about where and when it will be felt elsewhere.

As the world’s largest supplier of LNG (by a factor of more than three times last year, although Australia is coming up fast, including pursuing revolutionary plans for offshore liquefaction) Qatar with its vast North Field is a key player in conventional-resource development. Indeed the state was already a big international player when the older Dukhan Field was its primary source for a thriving downstream industries, including ammonia and NGLs.

52 Oil Review Middle East Issue Six 2013

www.dioge.qatar-expo.com

Qatar was also a founding member of the Exporting Countries Forum, and is believed to now be pressing the case for the continued indexation of long-term gas contract prices with those of oil. That was certainly the impression given by the rather bland ‘Moscow Declaration’ which emerged as one of the few public statements made after the 2nd Summit earlier this year.

Gas is right at the top of the international agenda as this exhibition takes place Opportunity Qatar’s total known reserves, of both associated and non-associated gas, remain vast, at just over 25 trillion cu m at the end of last year according to figures compiled by BP. Even though the North Field is shared with Iran that puts Qatar’s slice of the world conventional gas cake in third place after Russia and its nearneighbour to the north. After onshore processing at Ras Laffan costly LNG has to be the main exportable product, but the world-leading local gas-to-liquids industry is coming up fast at the Oryx and Pearl plants with their sales of premium-grade low-sulphur diesel and petrochemical feedstocks.

No formal conference is planned this year but with representatives of all the key players – multiple international investments are involved in most of the facilities described above expected to be in attendance at this year’s DIOGE there should be plenty of opportunity for hearing more about the future direction these enormous industries are going to take now that so much unconventional gas is a reality.

Inevitably a key speculation point is, what is going to happen in Japan? Global LNG sales fell for the first time ever last year as a result of several factors, but what held the industry up more than anything else was the impact of increased sales to Japan. Qatar is a key supplier to this market.

Indeed it was long-term contracts arranged with Japanese utility companies like Chubu Electric back in the 1990s that set the industry up on its meteoric export growth path.

Last year much more frozen gas had to be brought into Japan as a result of the Fukushima incident; nuclear generation is still under a cloud. Renewables will have their place, but gas is widely seen as the short- to medium-term answer to the world’s nuclear doubts and woes.

And DIOGE will be the place to hear about the Qatari energy companies’ likely reactions to these conflicting trends. ■

1 Contact QEEM’s Project Manager Gen Santos on +974 4465 0211 (dioge@qatar-expo.com) or visit http://dioge.qatar-expo.com 2 PO Box 23753, Doha, +974 4404 8400 or visit http://www.gecf.org www.oilreview.me

S10 ORME 6 2013 Innovations A B Web_Layout 1 19/09/2013 12:25 Page 53

RELIABILITY IN OIL WELL CEMENTS Oil Well Cement (OWC) produced by Oman Cement Company (S.A.O.G) under accurate temperatures is an obvious choice for oil well cementing worldwide and now it is ready to face the challenges of highly specialized arctic and horizontal cementing: ● Conforms to the American Petroleum Institute (API) specification – 10A Class-G- (HSR), Class-B- (HSR) and Class-A- (O) grades. ● Tested and used by worldwide cementing companies ● Easy to disperse resulting in considerable cost savings ● First choice of major oilfield companies ● Exported to GC Countries, Iraq, Yemen, Libya, Sudan, Tanzania, Turkmenistan, Ethiopia, Pakistan, India and Syria.

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

OCC has an enduring commitment to customer satisfaction, continual improvement and a stronger foundation for tomorrow.

Winner of His Majesty’s Cup for the Best Five Factories in the Sultanate of Oman for 10 times.

CERTIFIED CO CERT NO. IND13.3020/U/Q

CERTIFIED CO CERT NO. IND10.7570 API CERTIFIED CO LICENSE NO. 10A-0059

Oman Cement Company (S.A.O.G) Corporate Office: PO Box 560, Ruwi, PC 112, Sultanate of Oman Tel: +968 24437070 Ext: 145 / 444 • Fax: +968 24437799 Email: admin@omancement.com Website: www.omancement.com

S10 ORME 6 2013 Innovations A B Web_Layout 1 19/09/2013 12:25 Page 54

Schoeller-Bleckmann UK (SBUK) is a major stockholder in Duplex, Super Duplex, 6 Moly, Nickel Alloys and Stainless Tube, Pipe and other components. Via our parent company Bohler-Uddeholm (UK) Limited we have access to Wire, Rod, Round Bars, Plates and Forgings in the full range of corrosion resistant alloys.

Our particular strengths lie in the supply of STAINLESS STEELS and EXOTIC GRADES Duplex (UNS S31803), Super Duplex (UNS S32760 / UNS S32750), 6 Moly (UNS S31254) and Nickel Alloys (625/825).

Our Duplex materials are produced to high specification and are approved by BP / TOTAL / NORSOK / SHELL / ARAMCO / PDO etc.

Our UK stockholding operation has ISO 9001, 14001 and 18001 accreditations.

Sales Office and Warehouse in Jebel Ali, Dubai Sales Office in Kuala Lumpur, Malaysia SCHOELLER-BLECKMANN UK EUROPEAN BUSINESS PARK, TAYLORS LANE OLDBURY, WEST MIDLANDS, B69 2BN Tel: +44 (0)121 552 1535 Fax: +44 (0) 121 627 9282 Email:richard.coates@schoeller-bleckmann.co.uk Web:www.schoeller-bleckmann.co.uk

S10 ORME 6 2013 Innovations A B Web_Layout 1 19/09/2013 12:25 Page 55

Web selection - Innovations from www.oilreview.me A selection of recent products and service developments for the oil and gas sector.

Full information can be found on www oilreview.me

Caterpillar’s gas blending retrofit kits

HCL launches Downhole Cable Protector

CATERPILLAR OIL AND Gas has launched the dynamic gas blending retrofit kit for use on the Cat 3512C (HD) engine used in well stimulation applications. It allows maximum substitution of diesel with natural gas during pumping operations. The kit maintains diesel performance levels with up to 70 per cent replacement of diesel with gas.

HCL CLAMPING HAS launched Smart Protector, a new polymer-based range of downhole cable protectors developed in co-operation with Shell. The lightweight, patented Smart Protector range can be used for a variety of cable sizes and configurations. It is the first product of its kind capable of withstanding temperatures of up to 250°C and fits any tubing diameter. Smart Protector can be used alongside HCL’s industry-leading Smart Tie range of robust high-strength straps. HCL director Peter Coles, said, “The Smart Protector is attracting attention from a broad range of oil majors involved in onshore and offshore exploration, drilling and completions.”

Full details can be found at www.oilreview.me

AquaMost unveils water treatment reactor AQUAMOST HAS UNVEILED its new SX PECO Reactor to enable chemical-free water treatment. The The reactor can enable chemicalreactor brings together all of the free treatment of water benefits of the AquaMost’s water treatment system like chemical-free killing of bacteria, no requirement for Capex, modular design scalable to meet requirements and low energy consumption.

Full details can be found at www.oilreview.me

New series from HRS Heat Exchanger HRS HEAT EXCHANGERS, have launched its G Series heat exchanger for exhaust gas cooling applications. A new design that provides a superior thermal performance with increased efficiency, the series has been introduced to the market with a compact design to minimise pressure drops.

Full details can be found at www.oilreview.me

SENCOM series for pH, ORP measurement YOKOGAWA ELECTRIC CORPORATION has released the new SENCOM platform product series for the digital measurement of pH and ORP. This will join an existing lineup of quality pH/ORP solutions that includes the FLXA21 two-wire pH/ORP-transmitter.

Full details can be found at www.oilreview.me

Full details can be found at www.oilreview.me

Protective eyewear range from 3M 3M HAS LAUNCHED a safe eyewear product range ideal for workers in the oil and gas sector. SecureFit Protective Eyewear by 3M is designed to provide high levels of personal comfort and security of fit.

Incorporating flexible ribs into the temple area of the frame, 3M Pressure Diffusion Temple Technology allows SecureFit eyewear to self-adjust to the shape of the wearer’s head.

Full details can be found at www.oilreview.me

The next-gen electrometer ELCOMETER 456 DIGITAL coating thickness gauge has announced the launch of its next generation range.

Available in a range of models for measuring dry film thickness on ferrous and non-ferrous metal substrates, the new Elcometer 456 is even more powerful, rugged and easier to use than ever before.

Full details can be found at www.oilreview.me

The new electrometer has a 2.4’’ colour display, clear menu structure and large buttons making it extremely user-friendly

Shell and Baker Hughes enter into JV

Speed adjustment systems for pumps

SHELL AND BAKER Hughes have announced a software license and joint development agreement to produce a platform for geological and reservoir modelling. The platform will bring enhanced visualisation capabilities to Shell allowing petroleum engineering experts to better plan and manage the extraction of oil and gas.

WANNER INTERNATIONAL HAS introduced a range of mechanical speed variators for manually adjusting the rotational speeds and output flows of its Hydra-Cell metering pumps. These pumps are used in oil and gas production for injecting chemicals such as acids, bases, amine gas sweeteners, polymers and chemicals into process streams.

Full details can be found at www.oilreview.me

Shell and Baker Hughes delegates at the agreement signing ceremony

www.oilreview.me

Full details can be found at www.oilreview.me

The Wanner mechanical speed variator is ideal for use in explosive environments

Oil Review Middle East Issue Six 2013 55

Innovations

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Kongsberg signs deal with Statoil KONGSBERG OIL & Gas Technologies AS (KOGT), a wholly-owned subsidiary of Kongsberg Gruppen (KOG), has signed an agreement with Statoil for the delivery of subsea structures, in-line tee’s, tie-in and connection systems for the Polarled gas pipeline.

The contract was signed with Statoil on behalf of the partners in the joint venture for Polarled.

Polarled is a new 480-km long gas pipeline from Aasta Hansteen to the Nyhamna processing facility in Møre & Romsdal County. The pipeline will make it possible to develop Aasta Hansteen and other fields in the Norwegian Sea. Polarled will also have a branch pipeline to the Statoil-operated Kristin Field, and the order includes structures and tie-ins for that branch. The project is scheduled to commence immediately and will last for more than three years.

Engineering will be done by KOGT at Lysaker, while fabrication will be done by subcontractors in Great Britain and Norway.

Kongsberg Oil & Gas Technologies executive vicepresident Pål Helsing said, “We are extremely pleased with the contract. It testifies to the fact that KONGSBERG has the expertise required to resolve new challenges inherent in future subsea projects aimed at developing new and existing fields. In that respect, the contract confirms the company’s position as a significant subsea-player on the Norwegian Continental Shelf.”

Subsea structures and connection systems will be supplied for the Polarled gas pipeline as part of the deal.

Extending life of ageing rigs AGEING RIGS CAN become a cause of worry for oil companies with the decay in metals, the environmental stress on the rigs and the lowering of efficient functioning.

Here is a look at ways to combat such problems.

DNV regional offshore manager responsible for Middle East and India, Bijali MP said, “Majority of jack up rigs operating are 20 years or older. Most ageing jack-ups are designed and constructed according to Mobile Offshore Rules from 80-ties and 70-ties. Design life normally considered in the range of 20 years.

“If an owner is going for a new building, then the cost is quite high and delivery will be more than 18 months.

Meanwhile, market demands for rigs increase and owners like to continue with their ongoing contracts. These reasons force the owners to go for refurbishment of their ageing rigs. Ageing rigs properly maintained and upgraded may be successfully operating much beyond their originally planned design life.”

The challenges on ageing rigs are related to: 6 Fatigue properties/cracking for dynamically loaded parts to the rig structure 6 Maintaining an efficiently operating corrosion protection system 6 Structural degradation due to corrosion and thickness reduction, e.g. structural strength and fatigue The onboard marine and jacking equipment are normally in a constant cycle of review, maintenance and renewal, and therefore rarely follow the age of the hull.

Whenever there is an issue in any of the equipment onboard, spare parts are available and are easy to maintain. Most of the rig owners follow some sort of preventive maintenance system for these equipments.

Thus such equipment are not considered in this article.

DNV has developed Inservice Inspection programme

Jacking trial in the yard for a jack up

(IIP) and Hull Integrity Management system (HIM) to assist the rig owners/managers/operators to maintain the structures in accordance to classification requirements.

This will help the owners/managers to plan the surveys according to class survey requirements. DNV’s IIP establishes a clear and concise inspection work scope and plan. All DNV class rigs have the IIP in place. Whenever the owner/manager’s team is carrying out an unscheduled inspection, results can be incorporated in HIM system.

DNV has developed IIP to ensure that critical areas are surveyed according to a proper schedule using appropriate techniques. The IIP shall be based on experience gained during the design and fabrication of the rig and shall be modified throughout the in-service period to account for survey experience.

When a rig is in the yard for refurbishment, the outcome of DNV in-service inspections and hull integrity management system reveals the rig’s structural conditions. Generally this will be part of the yard scope of work in addition to rig owner’s or the oil company’s additional requirements.

It is very important to control weight during modifications/conversions. Inspection and maintenance of the corrosion protection system is an essential part of the structural follow-up both within the anticipated design life and for ageing rigs. So, this also will be taken care during refurbishment of rigs.

“To summarise, clear knowledge of the condition of the rig, well-defined scope of work, equipment ordered well in advance and involvement of class at an early stage are success factors of a good refurbishment project” said Bijali.

Bibby Offshore secures Maersk contract Aberdeen-based subsea installation contractor Bibby Offshore has secured a multimillion dollar contract with Maersk Oil UK. The agreement will see Bibby Offshore commit its Diving Support Vessel (DSV), Bibby Sapphire, to support construction and inspection, repair and maintenance (IRM) activities on Maersk Oil UK’s North Sea assets for a period of 365 continuous days, starting in early January 2014.

Three further one year options have also been agreed between the companies with engineering work commencing onshore in Q3 of 2013.

Bibby Offshore has successfully delivered IRM services and construction work for Maersk Oil

56 Oil Review Middle East Issue Six 2013

Bibby Offshore, chief executive Howard Woodcock

previously, in particular the Gryphon Area Reinstatement Programme which involved extensive installation and tie-ins of flexible and control jumpers, with pre-commissioning and testing carried out to connect the Gryphon ‘A’ FPSO. Bibby Offshore chief executive

Howard Woodcock said, “This is a significant contract award for the company and the scope of work involved further underpins our reputation within the construction and IRM fields.

“We have successfully completed major contracts for Maersk Oil in the past and we are delighted to continue our working relationship with the organisation. A large project management and engineering team will be dedicated to meet the requirements of the project, supporting the 365 days of DSV support.

“This year has been a successful year so far for Bibby Offshore and the business is expanding rapidly, following our relocation to our new facility at Atmosphere One, Westhill.” www.oilreview.me

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Innovations

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Ocean Power Technologies launches PowerBuoy OCEAN POWER TECHNOLOGIES (OPT), a supplier of moored, floating buoys that harvest energy from waves, has launched an improved version of its technology which is expected to revolutionise power in the offshore energy sector, optimising operations and redefining the way assets are managed.

The PowerBuoy is an autonomous device capable of delivering energy from a few kilo watts to several 100KW, with future evolution planned to deliver even larger amount of power.

Some of the potential applications for the technology include: 6 UUV garages for permanent infield monitoring/inspection of assets. The technology can be used to power docking mechanisms, communications systems and to recharge UUVs. 6 Control of electric trees for CO2/water field injection: The technology can act as a power source for remote electric trees to potentially reduce both facility and installation costs for trees and controls.

6 Diesel replacement: The PowerBuoy is a green solution for reducing reliance on diesel generators. It is environmentally friendly, with three years no planned maintenance. The technology can offer significant costs savings.

The technology offers operators high quality, clean energy solutions and communications data that can be handled remotely.

The PowerBuoy offers proactive maintenance, constantly reporting on its health and status meaning the technology can operate in even the harshest environments e.g. deepwater/ultra deep-water.

This also means that the PowerBuoy offers increased uptime and reduced OPEX costs offering operators a significant competitive advantage.

PDO and GlassPoint Solar introduce solar oil recovery to the Middle East PETROLEUM DEVELOPMENT OMAN (PDO), the largest producer of oil and gas in Oman, has partnered with GlassPoint to bring solar-fueled enhanced oil recovery to the Middle East.

PDO over the past three decades have pioneered a range of EOR (enhanced oil recovery) techniques, including steam injection, gas injection and polymer flooding, successfully increasing production and extending the lifespan of Oman’s oilfields and contributing to the growth of the Omani economy.

In Thermal EOR, the most widely used method of tertiary recovery, steam is injected into the formation to heat the oil and increase its mobility. Steam injection increases the rate of oil production and can also add years to the life of an oil project, but it requires an enormous amount of energy to produce the steam required.

Today, EOR accounts for a significant portion of Oman’s natural gas consumption.

PDO realised it could increase production of heavy oil and conserve Oman’s natural gas resources, by harnessing the energy of the sun to produce steam for EOR. The natural gas saved can then be applied to higher-value uses within the Sultanate, such as industrial development.

PDO chose GlassPoint’s Enclosed Trough solar steam generator for their pilot project in the Amal West oilfield because of significantly lower capital and operating costs than competing technologies, as well as seamless oilfield integration.

GlassPoint’s unique Enclosed Trough design protects the solar collectors within an agricultural glasshouse, shielding the delicate components from the dust, sand and humidity that is typical of oilfields in the Gulf region.

The Enclosed Trough houses an advanced composite mirror system that is less than onetenth the weight of standard mirrors used in traditional trough-style concentrated solar power applications and a fraction of the cost to manufacture.

By using mass-manufactured and prefabricated components, GlassPoint achieved record deployment times and reduced installation expenses. GlassPoint maintains high optical efficiency by cleaning the roof of the glasshouses with an automated robotic washing system, which eliminates the need for manual cleaning and minimises water use, recapturing nearly 90 per cent of the wash water. This cleaning process is imperative in the high dust and wind conditions of the desert, where cleaning solar equipment from dust can be an expensive and labor-intensive maintenance task for systems owners.

GlassPoint’s system is an oilfield steam generator and uses well-proven, highly reliable components and process derived from fuel-fired oilfield steam generators. Oilfield steam generators pose special challenges for boiler design. A high-velocity “once-through” boiler design is required to deliver steam without mineral contamination of the boiler. The solar steam generator accepts the same water quality and delivers the same steam quality as the fuelfired steam generators.

GlassPoint and PDO’s groundbreaking 7MWth solar EOR system began producing steam in December 2012. Construction was completed, both on budget and on schedule, with zero lost time injuries. The system passed its first performance test in January 2013 and exceeded contract performance by 10 per cent.

The four-acre system is producing an average of 50 tonnes of emissions-free steam per day, feeding directly into PDO’s existing steam distribution network at the Amal West oilfield with the potential to displace more than 47,000 MMBtu of natural gas a year.

Ongoing operation of the system will establish the performance and operational characteristics of GlassPoint solar steam generators, providing PDO and other operators in the Gulf region with valuable insights for planning future solar EOR facilities.

Hydrasun and Parker focus on hydrocarbon leak reduction INTEGRATED FLUID TRANSFER solutions provider Hydrasun has teamed up with motion and control technologies firm Parker Hannifin at Offshore Europe 2013 to showcase a range of process control instrumentation products, which support the hydrocarbon leak reduction initiative.

A practical demonstration area at the Parker Instrumentation technology centre, will offer hands-on educational opportunities for professionals to develop an understanding and knowledge of the latest technologies in the area of

58 Oil Review Middle East Issue Six 2013

process control instrumentation.

In addition, a programme of seminars and

Hydrocarbon leak reduction is increasingly gaining focus in today’s world

training sessions will enable graduates and experienced personnel to gain further insight into how the latest thinking in product design and system hook-ups, supported by a number of specialist back-up support services, will enhance system integrity and reliability as the industry moves forward in further tackling hydrocarbon leak reduction.

Hydrasun will be supporting Parker with technical representatives in discussing the comprehensive range of Parker Instrumentation products such as valves, manifold and close coupled products with customers.

www.oilreview.me

S10 ORME 6 2013 Innovations A B Web_Layout 1 19/09/2013 12:25 Page 59

RACCORTUBI GROUP HAS announced the launch of Raccortubi Middle East FZE, its new subsidiary located in Jebel Ali, Dubai.

The new set-up will house both offices and warehouse, which will have at their disposal the same broad stock of pipes, tubes, fittings and flanges as Raccortubi in Italy.

Raccortubi Middle East will stock and supply butt weld fittings in stainless steel and duplex, superduplex and 6Mo, in accordance with NORSOK M-650 Ed. 4 requirements, from the

group’s Tecninox production plant.

Raccortubi Middle East FZE will supply its customers with complete packages of piping materials, both from stock and from production, for a wide range of projects.

In terms of quality, Raccortubi have ISO 9001:2008 certification, as well as PED and NORSOK approvals, and also figure on a number of vendor lists, including those of BP, ADNOC, ZADCO, GASCO, ADWEA, Takreer and EIL, amongst others.

The subsidiary will provide Raccortubi Group with a local presence in the Middle East region, bringing its piping solutions a step closer to customers in the Middle East, so as to expand Raccortubi’s reach and offer its clients an enhanced service.

Raccortubi will participate in ADIPEC 2013 to reach out to customers in the region. Members of the new subsidiary and other group companies have expressed their desire to strengthen the company’s networks at the show.

Pyroban powerpack packs a punch PYROBAN HAS LAUNCHED a detailed scale model of a Pyroban powerpack, which is suitable for safe operation in Zone 2 hazardous areas. The Pyroban product has been equipped to eliminate the risk of explosion from hot surfaces, sparks, overspeed and other hazards. The product was displayed at the Pyroban stand at Offshore Europe Conference, which took place in the first week of September. The company focussed on hazardous area mobile power solutions for the oil and gas industry at the expo.

Pyroban business manager Mark Jackson said, “We manufacture and supply explosion protection up-fit kits for almost any size and brand of engine. Current projects in our factories include Cummins, Perkins, John Deere, Volvo, Detroit, MTU and Caterpillar brands.”

Pyroban business development manager – oil and gas, Gary Smith said, “Offshore Europe provides the opportunity for us to show visitors how it is possible to retrofit explosion protection to engines onsite.

“Many companies believe it is necessary to purchase a new engine in order to protect engines and equipment against the risk of an explosion, or that the conversion must take place offsite. Through our ‘hazardous area mobile power’ message, we are highlighting that Pyroban can retrofit existing engines and that trained engineers can fit equipment anywhere, which also helps to reduce transport costs.”

Pyroban systems include exhaust gas coolers, inlet shut-off valves, spark and flame arrestors and other explosion proof components.

Some of these components, manufactured by Pyroban Group companies, were also on display at the show. Components displayed included switches, and transmitters, as well as the silicon thermal barrier suitable for oil and gas applications.

Jackson said, “Offshore Europe provided a valuable opportunity to engage with new and existing customers and learn about new projects within the oil and gas sector. It also enabled us to listen to customers’ issues and discuss solutions, whilst demonstrating what explosion protection with Pyroban means.”

www.oilreview.me

Oil Review Middle East Issue Six 2013 59

Innovations

Raccortubi Group establishes new subsidiary in UAE

Innovations

S10 ORME 6 2013 Innovations A B Web_Layout 1 19/09/2013 17:16 Page 60

Schlumberger introduces new tensor inversion service SCHLUMBERGER HAS ANNOUNCED the introduction of a new moment tensor inversion service that provides enhanced analysis of the dynamics of hydraulic fracture propagation.

This service will help customers improve their well completion designs through an increased understanding of natural- and induced-fracture characterisation in oil and gas reservoirs.

Schlumberger Microseismic Services vice president and general manager Joseph Elkhoury said, “When applied in unconventional reservoirs, the moment tensor inversion service provides information about the orientation, volume and proppant placement associated with the hydraulic fracture.

“This provides a framework for building and interpreting geomechanical models, and enables our customers to improve well completion design for improved production.”

The proprietary processing used in the moment tensor inversion service accounts for anisotropy.

As the microseismic monitoring industry moves toward quantitative source inversion, the rigorous incorporation of anisotropy in unconventional reservoir models becomes more important to accurately process and interpret the valuable information contained in the microseismic signals.

The moment tensor inversion service has been field tested on microseismic projects in North America.

Analyses of moment tensor inversion processing during field trials in the Permian Basin has confirmed that the incorporation of anisotropy leads to improved interpretation of microseismic data and more robust geomechanical models.

60 Oil Review Middle East Issue Six 2013

Digital sensor to monitor wires ABU DHABI-BASED SPECIALIZED Oilfield Products has developed a digital sensor monitoring system, which can extend the life of wireline through continuous surveillance and create significant cost savings.

Traditionally, wireline integrity has been inspected manually in stages, using an eddy current flaw detection system and the naked eye, or has been replaced after a fixed period by operators irrespective of whether or not a defect exists.

Specialized Oilfield Products’ new system includes an electronic sensor, which is attached onto an eddy current flaw detection system. The sensor accurately pinpoints any integrity issues as the wireline test is run, and stores the information on a secure digital (SD) card. The information can then be viewed on a monitor, clearly indicating the exact location of any defect in the wireline.

The system can be deployed on all standard wireline sizes currently utilised in the oil and gas industry and a permanent record of the wire’s integrity is recorded.

Specialized Oilfield Products’ general manager Bob Thubron said, “We anticipate a significant worldwide market for our new product which we hope will become part of the standard inspection and maintenance process every time a winch system requires servicing.

“Currently, operators deploy a wire for a set number of hours, irrespective of its actual condition, and then discard it, because until now there has not been a system in the market that could test it accurately. However, wire can be extremely expensive. Our system will extend the life of the wire by giving an accurate reading of its state.

“A number of companies are currently using eddy current flaw detection systems which involve a stop/start process once an anomaly is found. Our system provides a continual assessment of the wire and computes that data on to the SD card, making assessment a much quicker process.”

www.oilreview.me

S11 ORME 6 2013 Innovations D E F G_Layout 1 19/09/2013 12:37 Page 61

Innovations

S11 ORME 6 2013 Innovations D E F G_Layout 1 19/09/2013 12:37 Page 62

Handling and lifting equipment for tough offshore environment JD NEUHAUS’ RANGE of handling and lifting equipment has made a mark in the global oil and gas industry. The products are use actively across the world in jack-up rigs, semi-submersibles, drill ships and FPSO vessels.

The company’s product range incorporates both air and hydraulically powered hoists, with individual lifting capacities ranging from 250kg to 100 tonnes. These products can also be incorporated into single or double girder overhead travelling cranes, underslung cranes with special low headroom trolley designs, together with purpose designed slewing jib cranes.

JD Neuhaus BOP handling air operated hoists being mounted on the Maersk offshore rig Guardian

Hoists can be supplied for specific function duties such as BOP handling (up to 200 tonnes), as well as providing virtually unlimited lifting and general load movement solutions including both oblique and horizontal pulling under pre-determined conditions.

A BOP handling unit incorporating four J D Neuhaus type EH50 air operated monorail hoists was recently supplied to the Maersk offshore rig Guardian, for synchronised BOP lifting and handling during both pre- and post-drilling operations. Two hoists were mounted on each of the twin parallel overhead rails, with each hoist providing 50 tonnes load and 20 metre lift capacities for between deck operations.

With the two sets of hoists operating together, a combined lift capacity of 200 tonnes was made available. Synchronised operation of all linear movement and lifting operations of individual, paired or all the four hoists when used in conjunction, was provided with JDN type F multi-function controllers incorporating the main air emergency stop together with a load monitoring device.

The largest purpose-built offshore crane system constructed to date by J D Neuhaus was a semi portal, A-frame design supporting twin overhead horizontal track beams each fitted with a single hydraulic EH 40-H hoist unit.

These hoists can be operated individually or

simultaneously from one controller, and when used in conjunction a total lift of 80 tonnes is possible with a 12 metre lift height being provided over a 7.5 metre span.

A JDN Profi 6 TI-H hoist with six tonne lift capacity was also supplied to cover other operational and service requirements. The crane was specified to comply fully with offshore duties including operating at temperatures down to -20ºC. All the JDN products combine a rugged build quality with high performance, 100 per cent reliability and the utmost in safety.

The products are also impervious to dust and damp conditions and operate within a temperature range of -20ºC to +70ºC. The main body component parts of both hoists and cranes have been supplied with a four layer marine paint top coat, having a 280 micron total minimum dry thickness in standard traffic yellow RAL 1023 colour. Exposed products such as valves and valve heads, together with suspension chains were manufactured from stainless steel, together with bolts and nuts less than 12mm in size. Larger threaded bolt ends and nuts, together with trolley wheel bearings have been otherwise protected with grease packed covers, while the chain containers are supplied with a galvanised finish.

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62 Oil Review Middle East Issue Six 2013

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S11 ORME 6 2013 Innovations D E F G_Layout 1 19/09/2013 12:37 Page 63

GE Power & Water

Better performance out of the gate.

On a wider range of fuels.

GE gas turbines are engineered to operate on the widest range of alternative gas and liquid fuels. From heavy liquids to blast furnace gas to process gas, GE gas turbines perform with less maintenance and wear and tear. Which means greater flexibility, higher reliability, lower emissions and greater efficiency from a variety of fuels. Get the performance you want from the company that’s led the way in fuel technology for more than 50 years.

Learn more at ge-energy.com/fuelflex.

PROCESS GAS

ETHANOL

H

2

HYDROGEN

BLAST FURNACE GAS

CRUDE

BIODIESEL

Comparative statements refer to prior GE technology and alternate types of technology (i.e., steam boilers, reciprocating engines).

S11 ORME 6 2013 Innovations D E F G_Layout 1 19/09/2013 12:37 Page 64

NEW: Brück opens Dubai Warehouse

As one of the leading manufacturers, with years of experience and knowledge, Brück is able to supply you with all types of Flanges including Anchor Flanges and Swivel Flanges, Fittings, Pipes and Bar material in all sizes directly from our extensive stock in Dubai with short delivery times.

Our stock consists of a wide range of exotic materials including : Inconel 625/825, Duplex and Super Duplex.

Our services extend further than only material supply. If you need any assistance in the field of design, calculations or FEA analysis, we as Brück are pleased to offer our expertise.

Our knowledge is your advantage.

An extremely delicate environment can depend on one crucial component That is why you rely on the expertise of Brück

Quality powered by knowledge www.bruck.ae

S11 ORME 6 2013 Innovations D E F G_Layout 1 19/09/2013 12:37 Page 65

DNV Software gives boost to risk-based inspection software

INDUSTRIAL FOOTWEAR SPECIALIST, Timberland PRO® has designed its Boomtown Wellington work boot with an alloy toe to provide the ultimate in support and it is particularly suitable for use within the oil and gas industry.

The work boot features Timberland PRO® exclusive Anti-Fatigue™ Technology which is integrated into the midsole, helping to reduce shock and return energy back to the foot for all-day standing comfort. An aggressive tread design and oil resistant sole provide traction and durability. The oil resistant sole has been tested for volume swell using EN345 TMP ASTM fuel A 7 Diesel ISO 1817 liquid F for 22 hours and ASTM IRM903 and fuel B for 46 hours.

The lightweight design also offers a unique finger-grip pull-on feature for ease of entry and for comfort in extreme heat conditions, the boot is completely unlined, providing maximum breathability and air-flow.

Additional features of the Timberland PRO® Boomtown Wellington include: premium waterproof leather and Ever-Guard™ leather provide extreme abrasionresistance and durability; ergonomic safety toe shaped on TiTAN® last for protection and a superior fit; Goodyear Welt Cast-Bond™ construction for a durable mechanical and adhesive bond; and contoured single density open-cell polyurethane foot bed with Agion® antimicrobial cover for breathable comfort and odour control.

Timberland PRO® creates premium products that utilise the latest technology and innovation. Each product is designed to offer the utmost in protection, durability, comfort, and safety features.

Gaming technology to increase field safety AVEVA HAS ANNOUNCED the launch of its AVEVA Activity Visualisation Platform (AVEVA AVP), which has been built on industrial gaming technology. It is equipped to aid the rehearsal of safety and schedule critical activities, without putting either personnel or the plant AVEVA AVP can generate realistic simulations itself at risk. directly from 3D design models The platform can support customers to create immersive, interactive multi-user plant environments.

AVEVA AVP can generate its realistic simulations directly from 3D design models, even before the physical plant has been built. With operator error recognised as the leading cause of safety incidents, AVEVA has created a solution that addresses this by revolutionising the way in which owner operators and engineering contractors can train staff.

INMARCO Compression Packings Type Applications : t t t t t t t t t t t

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Pumps Valves Dosing Pumps Auto Clave Glands Powder Dryers Agitators Dryers Furnaces Oven Doors Manhole Lids / Covers Centrifuges Reaction Vessels Calcinetors

DNV SOFTWARE HAS launched the new Synergi Plant, bringing risk-based inspection (RBI) software to a new level. Synergi Plant promises to make it possible for operators to move from subjective to objective decision making and from preventive to predictive maintenance using one complete quantitative risk assessment system. It includes semi or fully quantitative RBI, inspection planning and packaging, inspection and measurement execution, notification of maintenance and a key performance index (KPI) dashboard.

DNV Software managing director Are Føllesdal Tjønn said, “Recent accidents demonstrate the need for stricter regulatory requirements and more practical systems regarding risk management of onshore plants and offshore processes. DNV Software’s plant integrity management solution allows operators to take full control of operation assets and identify equipment that needs to be inspected, repaired or replaced.”

DNV Software’s regional AIMS business development manager in Asia Pacific and Middle East Tommy Tang said, “Our customers are looking to move from qualitative to quantitative risk assessment.

When integrity engineers and managers are moving from preventive to predictive maintenance, they need to know the condition of their assets to predict failures, especially for ageing assets, and link the engineering tools to enterprise resource planning system.”

To meet this demand, Synergi RBI Onshore and Synergi RBI Offshore deal with different damage mechanisms and risk calculation, and Synergi Plant can align them to a common management and daily work process.

The quantitative RBI software provides a flexible solution including different technical details for onshore and offshore damage mechanisms, seamless two-way integration with enterprise resource planning (ERP) and is integrated with a higher level allasset risk dashboard.

Synergi Plant covers all stages of the integrity lifecycle. The user can assess the equipment’s risk, manage and analyse inspection data, plan mitigation actions and follow-ups and re-assess risk based on inspection and measurement results. Users can also take in operating data and compare with integrity operating windows using an enhanced web interface.

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Get in Touch with our Technical Cell INMARCO FZC : Subsidiary of Inmarco Industries Pvt. Ltd P.O Box 120284 SAIF ZONE Sharjha, UAE Tel #+971 6 5578378 Fax # +971 6 5578948 WEB : www.inmarco.ae Email: info@inmarco.ae

Oil Review Middle East Issue Six 2013 65

Innovations

Timberland oil resistant work boot offers comfort even in extreme heat

S11 ORME 6 2013 Innovations D E F G_Layout 1 19/09/2013 12:37 Page 66

S11 ORME 6 2013 Innovations D E F G_Layout 1 19/09/2013 18:08 Page 67

Mounting accessories by Parker Hannifin PARKER HANNIFIN’S INSTRUMENTATION products division has launched a range of modular manifolds and mounting accessories for installing small-bore process instruments. The new range complies with Shell’s influential Material and Equipment Standards and Code (MESC) specification, which enables plant and instrumentation engineers to configure a complete process instrumentation hook-up that meets rigorous quality standards.

Parker's Nicolas Villemain said, “The modularity and scope of this new mounting system for process instruments ensures quality and at the same time delivers enormous time savings, by providing a compatible single-source solution. The system can also radically lower lifecycle ownership costs.”

Parker has developed its new range of MESC-compliant products as a direct result of its Enterprise Framework Agreement (EFA) with Shell. Under the terms of this agreement, the company has provided Shell and its affiliates with a single source supply of intercompatible small-bore instrumentation products, including instrument valves, manifolds, process-to-instrument valves, fittings, tubing and protective enclosures.

The MESC-compliant modular mounting instrumentation system includes a comprehensive selection of two- and four-valve manifolds, vent and purge blocks, seal pots, filling connectors, port protectors, heating modules and environmental protection enclosures. Suitable for use with fluid or gas media, Parker’s MESCcompliant manifolds are available in a variety of configurations to match the application.

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Oil Review Middle East Issue Six 2013 67

Innovations

GE introduces CWOR system GE OIL & GAS has introduced a Completion Work Over Riser (CWOR) system to its well access intervention product line. The CWOR system is used for installation, completion and intervention of subsea wells.

It can be configured for GE’s latest Vetco Gray subsea tree systems in addition to legacy and other suppliers’ subsea tree equipment.

When applied on GE’s equipment, a customer can receive “one-stop shop” benefits as GE can serve both as a traditional original equipment manufacturer as well as a service provider.

GE Oil & Gas global sales leader for subsea systems Carl AJ Roemmele said, “With the latest CWOR system, GE is building on a product that is wellestablished in the industry as we focus more on the diagnostic capabilities of our equipment and look to partner with our customers on improved oil recovery (IOR) strategies.

“Our CWOR offering reflects our commitment to being a leading solutions provider throughout the entire lifecycle of the field as we aim to help customers optimise their field performance and hydrocarbon recovery. It underlines our strategy to support oil and gas clients with service solutions.”

The system is designed and qualified in accordance with the industry’s highest standards, including ISO13628-7, NORSOK Standards and Safety Integrity Level 2 (SIL-2) and is closely integrated with GE’s subsea systems tree offerings, granting customers access and control to their production system during installation, completion and intervention activities.

The new offering is expected to help GE customers with project on-time delivery requirements and the related capital cost challenges of their offshore oil and gas projects.

Technical Focus

S12 ORME 6 2013 Tech Focus 1-2_Layout 1 19/09/2013 12:52 Page 68

Simon Marr, Robotic Technologies business development manager with Fugro Subsea Services Ltd, explains how to minimise risk and increase production.

Subsea control and

simulation O

FFSHORE CRUDE OIL production has grown steadily over the last halfcentury to nearly 25mn barrels per day (bpd) in 2005 or one third of the total world crude oil production.

In 2005 the Gulf and Middle East topped the list of offshore producers. Of the total world offshore crude, shallow water accounted for 20.3mn bpd and deepwater 3.5mn bpd. Thirty years ago deepwater exploration meant water depths of 800 feet. Today, depths below 1,500 feet are shallow, between 1,500 and 7,000 feet is considered deepwater, and over 7,000 feet ultra deepwater. (Source: I Sandrea and R Sandrea; Oil and Gas Journal, March 5 and 12, 2007.)

All the construction and maintenance of production infrastructure installed in waters deeper than 300ft is managed from the surface and relies heavily on Remotely Operated Vehicles (ROVs) and advanced tooling capabilities.

The management and control of installations at depths up to 9,000ft is possible but is technically very challenging and much more expensive.

Operators pay great attention to ROV pilot skills, offshore operations awareness, and to reliable, wellengineered solutions.

Unpredictable Rigorous investigation and testing of designs in simulation before deployment increases the likelihood of success and reduces risks to an acceptable level in what can be a very hostile and unpredictable environment.

The offshore oil and gas industry sets strict standards for deepwater field developments and defines compliance criteria for the verification of designs, operability and maintenance of production systems.

This is due not only to the increasing complexity of the design of deepwater production systems - often multiple wells accessed via a template or clustered around a manifold exporting to a floating production system - but also to the high costs of new developments and changing existing developments.

Full scale system integration tests are not economically practical so the oil industry applies modern simulator technologies for virtual testing of subsea systems to discover and rectify design flaws particularly at the concept and early engineering phases of projects, when the greatest savings can be made and there is time to improve designs and mitigate risk.

68 Oil Review Middle East Issue Six 2013

FCV3000 ROV operator console

Subsea services contractors use modern simulation tools with models of deepwater systems to verify system functions, and dynamic properties, against various requirements specifications and under a wide range of environmental conditions.

This includes model-based development of plant equipment and deepwater solutions for the design, installation and maintenance of safe deepwater production systems.

define the safe operating envelope for successful inspection, maintenance and repair operations.

Being able to rehearse specific tasks easily and repeatedly allows ROV pilots to hone their skills quickly and allows ROV supervisors to assess the job skill level required and to grade pilots for specific operations based on an objective assessment of their performance.

Evaluation

Fugro also uses DeepWorks to build accurate and functional models of ROVs and their associated tooling The leading European producer of ROV simulators is Fugro Subsea Services Ltd. (FSSL).

Their robotic technologies business line based in the UK provides DeepWorks: an ROV trainer, engineering simulator and live operations visualisation toolset.

Interactivity The DeepWorks ROV pilot training simulator uses dynamic simulation, with hydraulic and electrical component libraries to reproduce the actual subsea conditions and ROV tooling that mimic the physical environment and pressures under which ROV pilots work.

DeepWorks ROV brings full force-modelled physics simulation to subsea scenarios so that remotely operated vehicles and other moveable subsea assets respond to electrical and hydraulic demands, environmental forces, and friction just like the real thing.

‘Touch and feel’ interactivity gives ROV pilots the same graduated tactile response as if they were actually navigating the ROV, or deploying a tool from a manipulator like a measurement probe or a hot stab. Rehearsing operations across a wide range of conditions helps to validate procedures and to

For fast engineering and trustable solutions, DeepWorks Engineer provides a sophisticated dynamic simulation engine which models the true hydrodynamic responses of offshore equipment when acted upon by environmental conditions. Engineers can quickly drag and drop components from the extensive libraries to build subsea scenarios containing items like vessels, risers, pipes, cables and ROVs and drive them with force inputs.

Engineers can also build and save their own custom assemblies by importing 3D engineering models, associating them with components from the library and then connecting them together.

DeepWorks speeds up the evaluation of subsea engineering designs by simulating complex subsea interactions and collisions in great detail whilst recording all the engineering data for offline analysis.

By enabling the ‘live’ features, the software can be driven by data captured in the real-world.

Onshore, missions can be played out in advance by using previously recorded datasets to drive the simulation and verify acceptable windows for safe offshore operations.

Simulated data Offshore, the software is integrated with ship systems and accepts NMEA standard inputs such as GPS, Gyro and USBL. DeepWorks has been integrated with ship systems on Fugro support vessels and on third party vessels of opportunity. On Fugro vessels configuration is simplified because

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S12 ORME 6 2013 Tech Focus 1-2_Layout 1 19/09/2013 12:53 Page 69

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Technical Focus

S12 ORME 6 2013 Tech Focus 1-2_Layout 1 19/09/2013 12:53 Page 70

they all use Fugro Starfix via Message Manager.

DeepWorks synthesises navigational and positional data in real-time to generate a clear, augmented reality view of what is really happening subsea both near and far from the vessel.

This is a valuable tool for ships’ superintendents and crane and deck teams as they can each have their own viewpoint to improve work co-ordination.

This makes vessel positioning and winched operations easier for more accurate deployments within the water column and on the seabed. Realtime feedback enables offshore teams to react faster to unforeseen events.

Additionally, simulated data is used to fill the gaps between measured points which is essential for accurately tracking flexible lay or replacement operations. A permanent record is saved for subsequent post mission review and for comparison with previous operations.

Fugro Subsea Services in Aberdeen (FSSL) uses DeepWorks’ Live capabilities for realtime monitoring of subsea operations. They also use DeepWorks Engineer and DeepWorks ROV extensively to support engineering services projects.

These simulation tools enable fast and accurate verification of new engineering, as well as tooling designs and deployment solutions and support procedures development for the installation and repair of subsea production infrastructure.

FSSL is committed to forging strong and enduring partnerships. Over the last two years FSSL and Kongsberg Maritime have jointly developed an Integrated vessel and subsea simulator. This is used for cross-disciplinary training of vessel, crane and ROV teams for the installation and repair of subsea production infrastructure.

FSSL also works closely with GE Oil & Gas to support their tree design and field development projects and with Innospection Ltd who design ROV deployed inspection tools.

Like most subsea companies, FSSL previously relied on building prototypes, SITs (system integration tests), small scale wet tests, and other

FCV3000 ROV training scenario for pipeline inspection

70 Oil Review Middle East Issue Six 2013

FCV3000 ROV training scenario for torque tool operation

expensive and time-consuming processes. Due to its wide range of construction, survey and dive support operations across the whole upstream oil and gas process, simulation is now benefiting more parts of the business, resulting in shorter project timeframes and enabling the delivery of a more cost-effective service.

Configuration Fugro ROV training and offshore simulators are manufactured in-house by Fugro Subsea Technologies in Singapore which makes the programme of global rollout easier to manage.

DeepWorks has established itself as a leader in the simulation field primarily because it is easy to use and because it is underpinned by trusted physics. Engineers perform their work efficiently

DeepWorks ROV brings full force-modelled physics simulation to subsea scenarios

using the intuitive Windows-style drag and drop interface to build scenarios and the drop-down menus to change property values. The absence of any need for scripts or programming skills to configure the system enables high utilisation and widespread use with minimal training.

Fugro also uses DeepWorks to build accurate and functional models of ROVs and their associated tooling. With access to the underlying electrical and hydraulic circuits, new tooling and tool deployment units can be configured quickly and it is easy to change the vehicle configuration for different kinds of mission, thereby saving significant time and money.

“We are talking about bespoke equipment we make for our clients such as tooling, control systems and other kit for the ROV,” said Nick Alvarado, Senior Subsea Engineer, Fugro Subsea Services Ltd (Aberdeen).

“When clients encounter a subsea problem we occasionally have to design a set of tools specific to that job and sometimes the ideas and mechanisms have never been used before, so being able to test before we actually start manufacturing is of great value.”

For training in fault detection and repairing, the underlying circuits are fully modelled. Training supervisors can ‘break’ individual circuits or components to test how well pilots understand their equipment.

The supervisor can do this in real-time, or develop a problem scenario to test whether the trainee responds correctly. The system is setup so trainees can easily repeat a scenario until they get it right. The whole scenario and simulation data is recorded and can be returned to any point for review and detailed behaviour response analysis.

DeepWorks provides an integrated suite of tools to help subsea operators complete each project task speedily and effectively. Simulation and control technologies now give operators an unprecedented insight and ability to intervene directly in the design, development, deployment, operation and maintenance of subsea and seabed equipment, minimising risk and speeding up production. ■ www.oilreview.me

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Technical Focus

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When it comes to specifying lighting for use in hazardous offshore oil and gas environments, users should consider the technical and cost advantages of installing the latest LED lamps over the more traditional fluorescent alternatives, says Willi Steckel, product line manager lighting at Cooper Crouse-Hinds.

LED lighting for

hazardous areas LED lighting can reduce high maintenance costs associated with the thousands of fittings on an offshore oil platform

T

ODAY, LIGHTING ACCOUNTS for approximately 19 per cent of all electricity consumed in the world.

Around 67 per cent of all lighting currently installed is based on traditional, less energy efficient technology that was most probably developed before 1970. However, with increasing energy costs putting more pressure on companies to reduce their energy usage and to seek out more efficient alternatives, many are now considering or have already switched from traditional forms of lighting to the latest LED technology, which is already bringing significant savings, not only in energy costs, but also in terms of the total cost of ownership of lighting installations.

Reducing the total cost of ownership of lighting is critical for an offshore oil and gas platform, which may have hundreds or even thousands of different light fittings installed.

72 Oil Review Middle East Issue Six 2013

Initial cost

Lighting is an essential component in all installations, particularly in an industrial environment or hazardous offshore environment, where critical tasks are being performed Inevitably, the platform will have a variety of different fixed and portable lighting installed in Zone 0, Zone 1 and Zone 2 hazardous gas areas: floodlights , fluorescent light fittings, pendant and bulkhead light fittings; hand lamps, safety torches and chargers; safety and escape sign luminaires; signal and vessel lights.

So, for many offshore oil and gas installations, replacing traditional HID or fluorescent light fittings with LED alternatives has to be top of the agenda. In order to properly assess whether traditional light fittings should be replaced with LED lighting, there are some important factors that need to be considered first, including light fitting performance, system efficiency, reliability, availability of replacements or spare parts, mounting and installation options – which all affect the total cost of ownership.

Whilst the initial cost of an LED light fitting is higher than an HID or fluorescent equivalent, there are plenty of advantages that offset this.

An LED is a solid-state semiconductor device that converts directly electrical energy into visible light. On average, LED lamps consume 50 per cent less energy than comparable luminaires and 85 per cent less energy than

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Technical Focus

S12 ORME 6 2013 Tech Focus 1-2_Layout 1 19/09/2013 12:53 Page 74

incandescent luminaires. LED lamps also provide higher lumens per watt compared to many traditional lighting technologies (compact fluorescent, HID, incandescent, etc.).

LED lighting can also reduce the high maintenance costs associated with traditional lamps due to the frequent bulb changes and servicing. Imagine the time and cost of having to change bulbs or service thousands of different light fittings on an offshore oil platform. This means that over the long-term, LED lighting reduces the overall cost of ownership.

Unlike incandescent lamps or gas discharge lamps (HPS, MH or fluorescent), LED light fittings have no filaments or electrodes. This means they are more robust, durable, vibrationproof and impact proof. It also means that an LED equivalent lamp is likely to have smaller size and shape constraints.

Natural light Moreover, because solid state devices have no filaments or glass components that can break, this significantly reduces the risk of premature failure of LED light fittings. In addition, LED lamps do not emit ultraviolet (UV) or infrared (IR) radiation and provide immediate start up and instant, 100 per cent illumination. The colour temperature of LED lighting can also be varied to suit the particular requirements of the customer. LED lighting provides a high colour rendering index, which results in crisper, more natural light.

The expected lumen maintenance L70 of an LED lamp is 50,000-60,000 hours, which is a significant improvement compared to traditional light sources such as HID and fluorescent

lamps, whose expected operating life varies between 15,000 and 20,000 hours. With LED light fittings, there are also no negative influences on the life of the lamp due to switching cycles.

The overall efficiency of an LED lighting system is determined by the efficiency of the LED package, i.e. the driver, heat sink, secondary optics and controls.

LED drivers are more efficient than HID ballasts, resulting in higher overall system efficiency. Whereas traditional light fittings use transformers or power converters, LED drivers regulate the energy passing through LEDs to produce consistent (constant or PWM current) output. Most drivers are 85-90 per cent efficient with a power factor of >0.85.

Key factor However, drivers contain electronic components that can raise the temperature of the LED system. Any excess heat in an LED lighting system could result in accelerated lumen depreciation, colour shift and reduced rated life and so all LED lamps require an effective heat sink. A heat sink is a thermally conductive material attached to the LED printed circuit board (PCB) assembly.

Whilst the initial cost of an LED light fitting is higher than an HID or fluorescent equivalent, there are plenty of advantages that offset this

LED lighting is more energy efficient too

74 Oil Review Middle East Issue Six 2013

Heat sinks are specifically engineered to remove heat from the LEDs and the driver in order to ensure longer life, better lumen output and accurate colour temperature.

Often, a ‘finned’ design is used to increase the surface area available for heat transfer (dissipation). Therefore, a well designed heat sink can result in lower housing and junction temperatures, as well as improved lumen maintenance over time.

Disposal is also a key factor to consider. As LEDs contain no mercury or other hazardous substances, users should see a reduction in disposal costs at the end of the lamp’s life, which in turn means a reduction in future liabilities. As well as meeting more stringent environmental standards, this also helps to reduce energy costs and a company’s CO2 footprint.

Emerging technology As a leading manufacturer of light fittings for use in hazardous gas and dust areas, Cooper Crouse-Hinds understands the LED product development process better than most suppliers. The company has already invested millions of dollars in the construction of its own LED research and development centre in the USA. Built three years ago, this R&D centre combines the LED efforts of all the various Cooper lighting divisions into one common LED platform, using this know-how to build reliable LED lighting systems and to constantly remain on top of this emerging technology.

By establishing its own LED research and development centre, Cooper Crouse-Hinds is able to ensure that LED lighting components and systems such as drivers, heat sinks optics and controls, are fully developed and tested according to the relevant international lighting standards and that these products are also Excertified for use in hazardous areas.

Through the knowledge and experience gained and by using common LED development platforms, the company can guarantee the future compatibility of its products, even as new SSL technologies are developed.

On an oil platform, where many of its CEAG fluorescent fittings are installed, having a future-proof light fitting with readily available re-placements, is absolutely critical to the customer’s operation.

Lighting is an essential component in all installations, particularly in an industrial environment or hazardous offshore environment, where critical tasks are being performed. LED lighting has become an accepted technology with significant benefits compared to traditional light sources.

Economic payback on LED lighting is being driven by lower energy consumption, longer life and reduced maintenance over the complete product lifecycle.

The performance and safety benefits of LED lighting should also be considered, including instant on/off, cold temperature operation and good resistance to vibration and impact. ■ www.oilreview.me

S13 ORME 6 2013 Tech Focus 3_Layout 1 19/09/2013 15:06 Page 75

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Oil Review Middle East Issue Six 2013 75

Technical Focus

S13 ORME 6 2013 Tech Focus 3_Layout 1 19/09/2013 15:06 Page 76

Damen Shipyards Group is offering a fresh approach to offshore vessel customers. The company believes its global presence, combined with its continuing family-run ethos, can make a significant impression in a market characterised by niche yards.

Damen unveils its

offshore series

Damen’s oil spill response vessel

D

ELIVERY OF WORLD Diamond, the first of six newly-designed PSV 3300 platform supply vessel to Norwegian owner World Wide Supply opens a new era in offshore for Damen Shipyards. One of five PSV variants available by Damen, the range is just one of six vessel types now being offered by the shipbuilder, which form the yard group’s new ‘Offshore Series’.

The global group’s strategic ambition to challenge traditional offshore yards across a range of vessel types in this specialised market recently found form in World Diamond, the first of six Damen PSV 3300 vessels built for Norwegian offshore support company World Wide Supply. The platform supply vessel was constructed at Damen Galati (Romania) and entered service under Remøy Management operation in July.

Excitement Creative designer Gijs Lokker describes the PSV 3300 as “an elegant truck on the sea which has to be tough as well. The eye-catching, edgy lines and the distinctive yellow colour make the ship stand out from others at sea. The two nose holes on both sides at the front gives the PSV a tough and selfconfident look. The pride of the company is reflected by using the inclined line at the back of the accommodation - like a swan she will be proud to be on the sea to fulfill her duty and tasks.”

A more functional description is provided by Mark Couwenberg, design & proposal engineer Offshore & Transport Damen Shipyards, who describes “a sleek bow, slender hull lines, and diesel electric propulsion

76 Oil Review Middle East Issue Six 2013

with azimuth stern drives, all leading to a high cargo intake combined with low fuel consumption, not only in calm water but also in rough seas. The vessel features DP2 capability as well as newly designed anti-roll tanks and an optimised superstructure for crew comfort.”

Both descriptions nonetheless convey the excitement Damen’s designers feel as the wellknown shipyard group builds on its past experience and extends its reach into an offshore shipyard scene.

The 80.1m length World Diamond itself is a diesel-electric PSV, built to the Damen ‘E3’ formula of Economy, Efficiency and Environmental optimisation. Drawing a draught of 6.15 metres, the vessel can carry loads of up to 1,500 tonnes on deck and is designed for challenging weather conditions. The versatile vessel can be adapted for oil spill response, construction, ROV and diving support activities, and for many other functions.

Jan van Os, Damen product director Offshore, says: "We have already supplied 20 PSVs of various types and sizes into the market. With the PSV 3300 we’ve aimed for a 'workhorse', a PSV with excellent seakeeping qualities, low maintenance and fuel consumption and in line with the latest Clean Design and Environmental Protection requirements of the major classification societies.”

Optimised hull Slamming has been minimised through the new design, which results in improved comfort and safety for the crew, vessel and cargo. “The vessel provides a very safe working environment, especially on deck but also in all other working

Damen also operates its own service business unit, which is able to distribute ship plans digitally and takes responsibility for delivering spares, maintenance and crew training. areas,” says Mark Couwenberg. “Additionally, there is a safe, sheltered foredeck. Particular attention has been paid to accommodation - designed in line with the 24/7 offshore industry; outfitting is according to high comfort standards, using warm, modern colours for interiors. Each cabin has access to the Internet, radio and television.”

“The starting point for all of the vessels in the new Offshore Series has been conceiving the right hull because this is vital in reducing fuel consumption,” says Mark Couwenberg . “Hull shape, coatings, the location of oil tanks, refrigerants, recovery of waste heat and engine emissions – all of these are part of the E3 concept.”

Couwenberg explains. “We spent considerable time on CFD studies to investigate and simulate ship behaviour and optimise the hull shape. A model of the resulting hull has been tested at Maritime Research Institute Netherlands (MARIN) to verify the results. The slender hull reduces fuel oil consumption, not only in calm water but especially

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S13 ORME 6 2013 Tech Focus 3_Layout 1 19/09/2013 15:06 Page 77

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Technical Focus

S13 ORME 6 2013 Tech Focus 3_Layout 1 19/09/2013 15:06 Page 78

in rough seas. Smooth surfaces and a distinct lack of angles, lines and recesses also have a positive effect on the durability of coatings.”

Damen’s five fresh PSV designs extend from vessels of 1,500 dwt to 6,500 dwt. As well as a range of multi-purpose vessels featuring shipboard cranes and a variety of pontoons, the highlights of the new Damen Offshore Series include: Construction Support Vessel: offshore oil, gas and wind fields need specialised vessels to install and maintain subsea equipment. The Damen CSV 8019 is designed with a large clear deck, a large accommodation area and can be fitted with ROVs, a 100 tonnes subsea crane, moonpool, heli-deck, etc.

A larger vessel of this type is under development.

Well Stimulation Vessel: increasing the production performance of deteriorated oil wells is often performed by old PSVs which have been retrofitted with the required pumping and mixing equipment. Damen has designed a versatile wellstimulation vessel in recognition of the fact that purpose-built vessels are increasingly coming to be seen as safer and more economical.

The AHTS200: Part of the Anchor Handling Tug and Supply vessel category, offered from 70t bollard pull upwards, the 200t bp AHTS200 has been designed for water depths up to 3,000 metres. The vessel features a 670 sq m working deck, extensive winch lay-out, ROV functionality and can be used for subsea construction.

Fast crew suppliers: More than 70 vessels featuring the unique Damen Sea Axe vessels bow ranging from 19 metres to 67 metres have been supplied. These vessels cut through waves maintaining speeds of up to 20 knots, reducing slamming and vertical acceleration by up to 75 per cent. The latest variant, a Twin Axe Bow version, the FCS 2610, is making an impact in the windfarm construction sector, handling crew transfer in wave heights of up to 2.5 metres and operating at speeds up to 25kn.

Damen Offshore Carrier: a 7,500 dwt multipurpose vessel with heavylift, ro-ro and offshore installation capabilities. It features 65 days endurance, 2,300m2 of deck area, and deck strength of 20t/m2. The vessel can be fitted with the Damen Deep Dredge system, for mining and dredging.

Both descriptions nonetheless convey the excitement Damen’s designers feel as the well-known shipyard group builds on its past experience and extends its reach into an offshore shipyard scene The Offshore Heavy Lift Vessel 1800: a DP2 ship with two 900 t mast cranes, 3,100m2 of free deck space and 20,000m2 of adjustable cargo hold. It can work in water depths of up to 3,000 metres.

Oil Spill Response Vessel: an increasing demand for vessels which are able to respond to environmental disasters is expected, especially after the Macondo disaster. Having built a number of dedicated oil spill response vessels, Damen is working on a new type for this market.

But design prowess is not the only asset Damen is bringing to the offshore sector. The shipbuilder believes it also offers an approach that will spark a rethink in the way owners order, build and support their oil and gas industry support vessels. van Os says: “World Diamond opens a new chapter in our offshore strategy because it embodies the ‘Damen standard’ PSV for a market that is fast-changing.

“Damen as a brand is widely known in other specialised markets. We have built more than 5,000 vessels since 1969 and turn out around 150 a year based on a reputation for quality, proven technology and the highest safety and environmental standards. Our presence in the market has also been developed on the back of advanced modular principles that shorten delivery times, sometimes even building to stock. In effect, we offer customised designs using standardised components.”

Damen also operates a network of companies fabricating a variety of components for the shipbuilding industry – nozzles, rudders, stern tubes, tunnels, anchors, chains, winches and gears.

With yards in all parts of Europe, in Asia, Africa, South America and the Middle East, van Os emphasised the way Damen’s own facilities are close to all of the main offshore markets. Damen also operates 16 shiprepair and conversion yards worldwide, undertaking more than 1,000 repair jobs a year.

Financing Damen also operates its own service business unit, which is able to distribute ship plans digitally and takes responsibility for delivering spares, maintenance and crew training. The company even has its own ‘DAMOS’ software system to help plan and execute maintenance, available to Damen staff and clients’ vessels wherever they are active.

Centralised control over remote operations is a feature of the offshore industry, a way of thinking Damen shares. “We believe offshore owners are entitled to the type of logistical support that only a group with global reach and capabilities honed in supporting merchant fleets and tugs worldwide can offer,” says van Os. “As well as our design and building expertise, Damen is an experienced project manager. We have delivered vessels to specification in locations where it has been necessary to build the slipway or even the shipyard itself. Through the Damen Technical Cooperation, we can even supply a prefabricated shipbuilding kit and can, on request combine this with expert assistance, training and back-up.”

There are other benefits conferred by being a global group. “Because of our track record with financing institutions, Damen can offer assistance with all kinds of tailor-made financing solutions,” van Os says.

“As far as shipbuilding is concerned, we have everything in house, from the very first conceptual design studies up to after-sales service that can be offered even beyond 20 years after delivery, and everything in between.”

If scale is a plus, it is worth remembering that Damen remains a family-run business. The company believes that offshore operators will see significant benefit an approach that mixes the best of two worlds - global reach and the personal touch. ■

Damen’s well stimulation vessel

78 Oil Review Middle East Issue Six 2013

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Technical Focus

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In this article, Christopher Connor, Emerson Process Management, explains how the latest leak detection systems based on Coriolis flowmeter technology, can help operators to meet regulatory requirements and detect leaks effectively, with a minimum of false alarms.

Accurate and reliable pipeline

leak detection P

IPELINE LEAKS ARE a major concern for any pipeline operator. Whether they are caused by pipeline aging, equipment failure or unauthorised extraction, pipeline leaks can compromise safety and have a serious environmental impact.

Installing a reliable and effective leak detection system will minimise the amount of product released, maximise public and employee safety, reduce environmental impact, minimise clean-up costs, and limit legal liability. An accurate and reliable leak detection system will also assist operators in meeting local regulatory requirements.

Over the years, various technologies and strategies have been implemented to detect leaks and these systems generally fall into three categories. Pipeline inspection gauge (pig) based systems, where a pig is passed along the length of the pipe, external monitoring where the line is inspected manually and internal fluid state monitoring. While pig based and manual systems are scheduled, event based activities; internal fluid state leak detection systems based on Computational Pipeline Monitoring are continuous.

By using the latest high accuracy Coriolis flowmeters, accuracies of less than 0.2 per cent of the maximum line flow rate have been reliably detected in less than ten minutes.

80 Oil Review Middle East Issue Six 2013

Each of these methods is summarised as follows: 1. Pipe integrity monitoring (eg, pipeline pigging) Pipeline pigs carry a range of surveillance and monitoring equipment and are used at regular intervals to check the internal condition of a pipe. If a leak is suspected, a pig with acoustic equipment on board is used to locate the leak. This occurs when the audio output reaches a maximum. Using radio transmitters, the exact location of the pig in the pipeline can be confirmed and the leak investigated.

Unlike instrumentation based systems, pigging is not a continuous method of monitoring and this introduces delays in leak detection. There can also be problems with pigs getting stuck in pipelines due to the build-up of debris. Noise generated by obstacles such as welds may also affect the acoustic output as the pig travels along the pipeline. To compensate for this, some pigging systems build up an acoustic map of an individual pipeline so any changes can be more easily detected.

2. External monitoring (eg, human inspection, surveillance by unmanned drones or satellites, vapour sensors, acoustic emissions monitoring, and IR sensing) The simplest method of pipeline monitoring is by regular inspection, either by walking the line or

Typical installation using Coriolis meters for pipeline material balance.

surveillance using vehicles or aircraft. However these systems are labour intensive and may expose operators to difficult or dangerous terrain. Even if the inspections are carried out regularly, pipeline leaks could remain undetected for some time.

3. Internal fluid state monitoring Internal fluid state monitoring is where the hydraulic state of the fluid in the pipeline is monitored. This is the most common method and this type of leak detection is normally software-based. It is called Computational Pipeline Monitoring.

Computational pipeline monitoring Introduced by the American Petroleum Institute (API) in 1994, Computational Pipeline Monitoring (CPM) uses pressure, flow and temperature information to estimate the hydraulic behaviour of the product being transported. Based on the estimation, the results are compared to other field references to detect the presence of an unusual situation, which may be related to a leak.

CPM uses two principal methods used for leak detection. Pressure or acoustic analysis analyses the pressure wave in the fluid that is caused by a leak.

This method detects leaks quickly, (a function of the speed of sound in the fluid), however, the leak must be fairly large for the system to pick it up.

The second method is based on the material

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Technical Focus

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Figure 1 shows two examples of changes in pipeline operation and the resultant effects on measurement. The data lines represent mass flow rate from Meter 1 at the tank farm (the pipeline entrance) and Meter 2 at the pipeline exit. The meter readings are in close agreement until Event 1 (a tank switch at the tank farm). The tank switch registers only on Meter 1.

When the disruption is over, the meter readings again agree until Event 2 occurs (a pump shutdown at the pipeline exit). Both meters register this change, but at different times. Event 3 (pump restart) is also registered by both meters but at different times.

choice for direct mass measurement leak detection applications. An additional benefit is that meters based on Coriolis technology will measure density as well as mass, and this additional data can be used for secondary functions.

For example, the density measurement can be used to monitor changes in process fluid composition, eg, to track batches of product as they pass multiple metering stations, or to monitor product quality. Coriolis meters measure the density of the entire flowing stream, independent of fluid composition. This makes them more accurate for process fluids with complex or variable composition, than other technologies that infer the density (e.g., using look-up tables).

Built-in meter verification is a recent innovation that enables a calibration check to be quickly made without removing the meter from the line. Ensuring that a flowmeter is correctly calibrated means that when there is an out-of-tolerance variation between meters being used for leak detection, operators can quickly rule out false alarms or meter damage.

Real life situations balance of the pipeline (or segments of the pipeline). By comparing the quantity of material entering the pipeline, with the quantity of material flowing out, any differences that cannot be accounted for by changes in temperature, pressure, or linepack (changes in the volume of material in the pipe), suggest the existence of a leak.

Combining these two methods to maximise detectability and sensitivity in both flowing and static pipeline operations, provides the most effective leak detection systems.

Material balance systems Material balance systems can be based on either volume or (direct) mass. For the purposes of this article, the term ‘material balance systems based on mass’ refers only to systems that utilise direct mass measurement.

1. Volume-based For material balance systems based on volume, the volume measurements at each end of the pipeline (or segment) must be comparable. Differences in temperature and/or pressure between the input and output measurements, will introduce errors that must be compensated for.

Material balance systems based on inferred mass (mass derived from volume) are essentially volume-based, and have all the limitations associated with volume measurement.

In addition to measuring volume, temperature and pressure measurements are required at both ends of the line. The volume measurement is then converted either to ‘standard’ conditions or to mass (the preferred solution). However, if either the temperature or pressure varies significantly inside the pipeline, the end measurements are not truly representative and the applied compensation factors are not accurate. Temperature compensation, in particular can be challenging if the pipeline is exposed to different environments (e.g., if some segments are below ground, under a body of water, etc.).

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2. Mass-based For material balance systems based on mass, no temperature or pressure compensation is required because mass measurements are not affected by temperature or pressure.

Accordingly, material balance systems based on mass require less instrumentation, and since only one measurement device is used, they are typically more accurate.

Even the most rigorous leak detection system, whether volume-based or mass-based, will require linepack compensation. Linepack compensation adjusts measurements for the amount of material in the pipe. Linepack compensation is implemented by the software component of CPM systems and is one of the main reasons that the software is required.

Effective mass balance system required Although a mass balance system is theoretically accurate, in reality its accuracy depends on the accuracy of the mass measurement devices and the linepack calculation.

Meter accuracy directly determines the system’s sensitivity or ability to detect small leaks and the overall accuracy of the system is a function of the least accurate meter. Accordingly, all meters must be of custody transfer quality, capable of providing high-accuracy measurements. All measurements must be repeatable through changing process conditions (changing flow rates, density, viscosity, etc.) and finally, all measurements must be reliable and sustainable over time. Experience has shown that flowmeters based on Coriolis technology are ideally suited to meet these requirements.

Emerson’s Micro Motion range is a good example of the high accuracy available from Coriolis flowmeters. Various models are available with an accuracy specification of 0.1 per cent. For applications where an even higher accuracy is required, an enhanced model is available with an accuracy specification of 0.05 per cent. The high accuracy of these meters makes them an ideal

The ‘ideal’ application is where a well-understood refined product is being monitored. In reality this tends to be the exception rather that the rule and there are many factors that make accurate measurement problematic. Examples include fluids of variable (transient) composition eg, produced crude with gas, water and suspended solids, fluids with gas/liquid fractions, and fluids with variable viscosity or density.

There are also situations which make it impossible to follow installation best practice for measuring instruments, for example where there are short meter runs or installations near elbows, etc. In addition there may be difficult operating situations (eg, empty-full-empty).

Where operating conditions are less than ideal, the highly accurate, direct mass flow measurements produced by Coriolis mass flow meters makes them the meter of choice. In addition, because they do not rely on external pressure or temperature measurements or conversion to reference conditions, they are not affected by changing conditions. Because Coriolis meters are delivered from the factory pre-configured, they usually do not need any calibration in the field. When compared with other technologies, users do not require a high level of expertise to design and operate a metered run of pipe.

Coriolis flowmeters offer many other benefits.

For example, they have a high turndown ratio, which ensures accurate results over a wide range of flow rates. Their robust design isolates sensitive components from the process and insulates them from the ambient environment. In addition, they do not require long pipe runs before or after the meter, so they can be installed in more accessible locations.

Finally, gas entrainment in mostly-liquid streams is a situation that can occur frequently in leak detection and is challenging for conventional meters. For example, produced crude oil has whatever gas fraction nature feels appropriate. This makes achieving complete gas-oil separation for www.oilreview.me

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measurement challenging. Likewise, a chemical process that is operating slightly off its set point can produce a mostly liquid flow with a vapour fraction.

This can be a problem when the flow is being measured by a meter designed for liquid flow measurement.

In both instances, the presence of vapour, and the transient amount of it, can seriously degrade meter accuracy and consequently leak detection sensitivity and reliability. It is important therefore to utilise Coriolis technology that can tolerate vapour fractions and deliver acceptable accuracy (around one per cent) in the presence of vapour, to avoid compromising leak detection.

For example, using Emerson’s Coriolis flowmeters, leaks of less than 0.2 per cent of the line flow rate have been reliably detected. While it is possible to achieve this level of success with other meter types, the use of Coriolis technology makes it far easier to accomplish, particularly in difficult applications.

Summary The most effective leak detection systems utilise a combination of a pressure or acoustic analysis system and a material balance system. The most accurate, reliable and robust material balance systems incorporate linepack compensation and are based on mass measurement, rather than volume.

Emerson’s flowmeters measure mass accurately and reliably across changing process and environmental conditions, with no requirement for external temperature, pressure, or density data.

Using leak detection systems that include Coriolis flowmeters, pipeline operators can meet regulatory requirements and detect leaks effectively with a minimum of false alarms. In addition, Coriolis meters can tolerate vapour fractions and also support a variety of secondary functions such as process fluid monitoring or custody transfer.

Coriolis technology in action

6 If pipeline operation changed (eg, a tank was

The following four examples outline applications where Micro Motion Coriolis meters are being successfully used for leak detection.

switched or a pump was shut down), the readings would diverge until flow again reached steady state.

These results demonstrate the importance of linepack compensation in leak detection systems.

If only the hourly reconciliation is used, it would be possible for a leak to go undetected for up to an hour, but a comparison of flow rate data cannot distinguish between pipeline events and leaks without the assistance of linepack compensation.

Leak detection using flow reconciliation A refiner needed a leak detection system to meet pipeline monitoring requirements. The pipeline is 120 km long and 300 mm in diameter, and carries various crude oils including sweet, sour and heavy crudes.

The refiner chose to use flow reconciliation to meet regulatory requirements. Three metering stations were installed; one at each end of the pipeline and one in the centre with Positive Displacement (PD) meters being installed at each station. With the constantly changing environmental conditions and fluid properties, the PD meters were not sufficiently accurate to meet regulatory requirements. As a result, the refiner was unable to demonstrate to the authorities that there were no leaks currently in the pipeline, or that an effective leak detection system was in place.

A project to improve the flow reconciliation was undertaken. This required the installation of two Micro Motion Coriolis flowmeters from Emerson, one at each end of the pipeline, with the mass totals from these two meters being compared every hour: 6 If the totals matched within 0.7 per cent, the pipeline was assumed to be intact.

6 If the totals varied by more than 0.7 per cent, an alarm was generated.

The conversion to Micro Motion meters was immediately successful enabling the refiner to meet its regulatory requirements. However, when mass flow rates from the two meters were compared on a continuous basis: 6 If pipeline operation was steady, the meters agreed to within 0.1 per cent.

Leak detection using a 4-m voting system A refiner sends products from the refinery to a tank farm located on the opposite bank of a large river. The pipelines run below the riverbed and the local authorities required a leak detection system to monitor for leaks into the river. The original system used a volume-based, materials balance system with both PD and turbine meters. However, this system generated a large number of false alarms, so a new system based on mass measurement was designed.

To increase statistical accuracy and reliability, four Micro Motion Coriolis meters were installed on each pipeline, two at each end. Mass flow data is reported to a central station. If the four meters agree to within 0.5 per cent, the pipeline is assumed to be intact; if any one of the four meters is outside this limit, an alarm is generated.

Because of the relatively short length of the pipeline, linepack compensation was not needed.

Based on the success of this system, it has been implemented on a further 18 pipelines at this site.

Leak detection compensation

with

linepack

The state of Alaska has established some of the most stringent pipeline leak detection requirements in the United States and possibly the world. This means that all leak detection systems are inspected, tested, and monitored by the state.

At one refinery, PD meters were installed at various points along a large crude oil pipeline.

Although a statistical pipeline monitoring system was in place, the leaks were being masked by the noise of the PD meters. The site was unable to pass the state audit.

When the replacement Micro Motion meters were installed, mass flow rather than volume flow was reported to the leak detection software. The leak detection system now reached the required levels of effectiveness and received state approval.

Leak detection on pipeline transporting multiple fluids and custody transfer

Coriolis meters used for storage and pipeline leak detection at an oil terminal.

84 Oil Review Middle East Issue Six 2013

An 800 km pipeline in Canada transports C2+ (ethane and higher hydrocarbons), condensate, and crude oil. Only a mass-based Coriolis system can easily measure process fluids of such varied composition. Other methods either infer density from look-up tables or require a separate density device.

The pipeline operator has installed Micro Motion Coriolis meters, and uses them for leak detection and for custody transfer – with the same meters supporting both functions. ■ www.oilreview.me

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Technical Focus

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A common assumption made by many people is that pipes are round and have a constant wall thickness. It is also assumed that all that needs to be done to fit pipes together is to find and join together pipes of a similar size. These assumptions are incorrect, however, as Dr Tim Clarke from OMS reports.

Round pipes -

an engineer’s pipe dream T

HE MAJORITY OF pipes create fit up problems. The only way that pipes approach being round is when they are machined internally and externally, a manufacturing process that is not always possible.

"Manufacturers try to make pipes as accurately as they can but they cannot be formed precisely enough," said Dr Tim Clarke, director of Optical Metrology Services (OMS). "There will always be a necessity to take further steps to meet the most demanding applications found in the oil and gas industry."

A size discrepancy of just half a millimetre between pipes can mean the difference between success and ecological disaster. A fatigue-sensitive steel catenary riser is subject to dynamic stresses as it descends a mile from a vessel (or a spar) to the sea floor, for example. The topside structures are subject to extreme weather conditions (such as hurricanes) while the pipe itself can be buffeted by underwater currents that are so strong that strakes are typically fitted to pipes to stop them vibrating.

The shape of a pipe is largely dependent on the method of manufacture and, for each method there will be variability that is typical for that process.

Further shape variations will occur depending on the size of the pipe and the specific equipment used to manufacture the pipe. One type of manufacture is the UOE process. These pipes are called UOE pipes as they are first formed into a U, then an O and finally expanded to their final size. Each part of the process leaves its signature on the pipe. The expander is a tool that is made up of a number of segments. The pipe is enlarged by the expander in order to attempt to create a uniformly round pipe. While it may be successful in taking out some features left behind from the Uing and Oing process, it leaves behind its own imprint in the pipe.

When the Eing process does not create a circular pipe, a variety of shapes are possible. Sometimes the pipes are oval or are not circular in the weld region, an effect known as 'peaking', but this term arguably does not adequately cover the sheer variety of shape abnormalities in the region of the weld.

86 Oil Review Middle East Issue Six 2013

UOE pipes are used in the oil and gas industry at the point when seamless pipe become difficult to manufacture to the desire standards. Unlike UOE pipes, seamless pipes are manufactured red hot.

The manufacturing process is complicated. A solid cylinder of red hot steel is pierced through the centre with a rod, then the red hot tube goes through further stages where it is rolled into shape against an internal mandrel. The final pipe is far longer than the original ingot.

Seamless pipes have a variety of shapes which can vary between mills and during production runs.

In some cases the pipes are made in double lengths and cut in half. The ends of these pipes can be more out of shape than the middle due to the closeness of the end to the piercing.

A size discrepancy of just half a millimetre between pipes can mean the difference between success and ecological disaster.

Extra attention for deep water pipes Pipes that will be used in deep water (more than a kilometre under the sea) must be given extra attention, particularly steel catenary risers (SCR’s), which bend up from the sea bed and lead up to a platform or FPSO. Weather extremes and sea currents can cause serious problems if they are not welded to an exact specification.

"If the pipes don’t match any closer than 0.5mm a bad weld can occur which could lead to a failure of a riser which would be an environmental disaster,” said Clarke.

Better fit up of pipes leads to better welds and this can prevent such problems occurring. OMS also measures pipes more quickly, easily and accurately than has previously been possible, taking a matter of seconds for 2,000 measurements of both the internal diameter and wall thickness of the pipe.

OMS's Automatic Pipe Checker uses lasers to measure internal and external dimensions. The device is placed inside the end of the pipe so that an arm with lasers attached can encircle the pipe taking accurate measurements to build up a map of the pipe shape, both on the inside and the outside. The information from the tool is sent to a computer via Bluetooth technology, which displays all the points of the circle, in a line, as though the pipes circumference has been unwrapped.

The software devised by the company is then able to perform a number of tasks that solve the problems posed by out-of-shape pipes. One scheme is to find the pipes that fit together exactly.

"Sometimes the pipes we get are difficult to use," said Clarke. "We have to find pipes with the right diameter and then find pipes that are the right shape.

It can be an extraordinarily complex thing to do."

In other cases OMS will assist in creating a counterbore plan in order to create pipes that are good enough to be used without matching them together in a specific order. Counterboring is a process of removing material from the inside of the pipe to obtain a smooth circular inside, which is good for welding and easy to fit together in any order. Either way, OMS is able to deliver pipe joints to the client that are as good as they would be if the pipes were round.

Using the OMS tools saves time - being able to measure as many as 400 pipe ends in one day is at least three times faster than using regular measurement tools that only measure at a few discrete locations around the pipe. Companies are able to keep their project schedules on track and as some projects involve measuring more than 2,500 pipes, this time saving is hugely valuable.

Project engineers also have the security of knowing that the dimensional part of their project is being managed by experts who have acquired skills and experience over many years on a wide range of projects.

Clarke said, “Offering our clients the complete solution to their problems is our aim, we know we can deliver that, in fact we do.” ■ www.oilreview.me

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Communications & IT

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EMC is helping to meet the data-intensive demands of the oil and gas industry.

The E&P data that is used to make critical business decisions is growing at a rate that can no longer be supported by traditional filers

Solving big data storage

challenges M

EETING THE INCREASING data storage demands of the oil and gas industry is no easy task. EMC claims to have the answer with the Isilon scale-out network-attached storage (NAS) platform. The company says Isilon’s solutions reduce capital and operating expenditures while ensuring datasets are highly accessible, protected, and available for business decision-making. Oil Review recently met with Tarek Heiba, EMC’s regional director for the Isilon division to discuss the technology further, as well as data storage issues facing the oil and gas sector.

What are EMC Isilon’s main solutions for the oil and gas sector?

The E&P data that is used to make critical business decisions is growing at a rate that can no longer be supported by traditional filers. Seismic data volumes that are needed for geologic modeling, reservoir simulation, and enhanced recovery projects are already outpacing the capabilities of these legacy systems. To maintain a competitive advantage, E&P companies need systems that can scale on demand to support the most critical workflows that drive their business, so that timely decisions can be taken with confidence. EMC Isilon’s scale-out NAS architecture is ideally suited for E&P upstream workflows for interpretation and modeling that require highperformance and large single-thread I/O.

88 Oil Review Middle East Issue Six 2013

The answer to these challenges cannot simply be addressed by stringing together all the legacy filers into one unified system Why is data storage so important in the oil and gas sector?

Data is the lifeblood of our E&P customers. Time equals millions of dollars in most cases, so Isilon providing an easy to manage single volume that can scale from 18TB to 20PB is value to customers who want to spend more time analyzing data than managing data. Advanced technologies within the E&P industry now require much larger data sets to be fully integrated into the decision making process.

What are the main challenges facing oil and gas companies in terms of critical storage?

Traditional filers are severely limited by their ability to scale large data sets within a single file system.

Excessive human intervention is required to maintain system performance for these legacy systems even under modest growth conditions.

Today, system administrators are already struggling to keep up with the demands of their E&P user

community which can lead to slower cycle times or lower success rates. Legacy NAS architectures proved to be inefficient thus driving up the total cost of ownership. There was no true tiering, so this created 60-80 per cent of stale data that needed to be continually managed. Lastly managing legacy scale-up storage architectures created mass complexity that brought both CAPEX and OPEX hits. With Isilon there is no more management of LUNs, volumes, or RAID – it’s one file system because of OneFS.

Do you think storage is increasingly moving online?

Yes. As HDD prices decrease it is economically feasible to have your offline archive now become an active archive. Again, data is the upmost importance to our customers. For example having access to data of a reservoir site from a decade ago can provide meaningful data to current projects.

Also, old sites can be resold, so this data is the true IP in the transaction, so preserving this data on HDD versus tape is an investment in itself.

How can oil and gas companies keep up with the data explosion they are experiencing?

By moving away from legacy scale-up storage architectures and introducing an Isilon scale-out architecture is a way for the oil and gas companies to get ahead of this big data explosion. Again,

www.oilreview.me

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Communications & IT

S14 ORME 6 2013 IT_Layout 1 19/09/2013 16:08 Page 90

How can you assure clients that data is kept securely?

these companies should be focusing their efforts on the workflow rather than the technology enabling it.

What are the main benefits that your solutions offer to oil and gas companies?

EMC Isilon is a single file system that scales to 20PB as a single volume. Isilon has the highest storage utilisation in the industry at a greater than 80 per cent versus competing solutions in the 50 per cent to 60 per cent. The scale-out architecture provides linear and predictive scaling with a never have to migrate again architecture.

What are the main challenges that companies face in the data storage field?

The answer to these challenges cannot simply be addressed by stringing together all the legacy filers into one unified system. The system still requires excessive human intervention which leads to inefficiencies and unnecessary bottlenecks in the E&P workflow. Furthermore, cobbling all these systems together requires another costly and disruptive data migration.

Tarek Heiba - “The threat landscape has radically shifted over the last few years.”

How are you evolving the solutions that you offer?

As mentioned earlier, Isilon just released its seventh generation OneFS operating system.

With each release our engineering teams look to improve performance and add features that fit the profiles our customers need – including increased security and snapshots. Additionally, we take advantage of the advances from our chip and HDD partner suppliers.

Advanced technologies within the E&P industry now require much larger data sets to be fully integrated into the decision making process

The threat landscape has radically shifted over the last few years - and people are paying very close attention to it today. Improving information security most certainly qualifies as one of those critically important business processes for any organisation and security professionals are starting to reach for a new class of more powerful tools.

In addition to the "perimeter defense" which represented by all the familiar firewalls, anti-virus, malware, authentication etc tools, organisations need to be prepared to defend themselves from today’s attackers that simply walk through the door masquerading as a trusted employee and where traditional perimeter defences can no longer be assumed effective. Organisations will need to start assuming that they have already been breached - or potentially will be soon. Hence, cutting the time taken for threat investigations from days to minutes, reducing the attacker 'free time' from weeks to hours, eliminating blind spots to gain comprehensive visibility across the enterprise is key today for organisations to protect their information. This is possible today with the recently launched RSA Security Analytics solutions.

Security professionals can drive an expedited remediation workflow when something suspicious is detected. The RSA Security Analytics is a security monitoring system that brings together technologies from the existing technology categories, including network security monitoring, log-oriented SIEM, malware analytics, forensics, compliance reporting, and Big Data management & analytics, to better address the security needs of organisations. ■

Software enables faster optimisation of refining processes ASPEN TECHNOLOGY, INC., a provider of software and services to the process industries, announced the availability of the V8.3 release of aspenONE software.

The release includes new functionality in Aspen HYSYS software - acid gas cleaning to model gas sweetening units, and pressure safety valve sizing integrated from the acquisition of PSVPlus, which allows process engineers to size pressure safety valves as an integral part of the overall process design for the first time.

Both acid gas cleaning and pressure safety valve sizing are included in Aspen HYSYS in a single modelling environment with intuitive workflows. These new capabilities enable users to optimise upstream, midstream and refining processes faster and to produce inherently safer designs.

“Today, the majority of midstream and refining operators – and the engineering companies that serve them – use Aspen HYSYS for process design and operation.

90 Oil Review Middle East Issue Six 2013

Acid Gas Cleaning and Pressure Safety Valve Sizing are two additional critical activities that process engineers can now perform directly in the Aspen HYSYS environment. As we continue to simplify and expand these workflows in our products, our customers will be able to maximize return on investments and develop inherently safer designs,” said Manolis Kotzabasakis, executive vice president, products, AspenTech.

AspenTech is a leading supplier of software that optimises process manufacturing – for energy, chemicals, engineering and construction, and other industries that manufacture and produce products from a chemical process.

The V8.3 release of aspenONE software including the new release of Aspen HYSYS is available immediately.

For more information, visit http://www.aspentech.com/products/v8release/.

Manolis Kotzabasakis, executive vice president, products, AspenTech

www.oilreview.me

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Communications & IT

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Jewel in the crown BAKER HUGHES HAS announced the availability of its JewelSuite™ 3D geomechanics software system, designed to promote better complex field development strategies by enabling users to quickly and accurately predict full-field geomechanical behavior under drilling, stimulation and production scenarios. These strategies are essential in helping oil and gas operators reduce costs and improve hydrocarbon recovery in complex reservoirs and fields.

The system combines Baker Hughes’ JewelSuite reservoir modeling software with Abaqus™ Finite Element Analysis (FEA) software, a robust finite-element mechanical simulator from Dassault Systèmes. The Abaqus simulator uses proven algorithms to simulate the non-linear stress, large deformation, compaction and subsidence that can occur during production from hydrocarbon-bearing reservoirs.

The resulting JewelSuite 3D geomechanics software system enables users to quickly build high-performance numerical simulations that support parametric studies, help identify uncertainties in reservoir development models, and condense large full-field 3D reservoir views into more manageable high-resolution geomechanical simulations.

Users can also integrate seismic, structural, geologic, geomechanical and fluid-flow models into a single, multidisciplinary workflow that helps reduce uncertainty and increases confidence in modeling results.

In addition, users can more accurately calculate deformations within and around a reservoir, as well as anticipate the necessary steps to mitigate subsidence; and it offers the ability for users to quantify stress changes, the impact on production, long-term completion stability and fault activation, minimising risk and facilitating improved hydrocarbon recovery.

Offshore e-learning from Oilennium OILENNIUM™ LTD, A Petrofac Training Services (PTS) company, announced the launch of the ConTrainer™, the first system to offer eLearning modules offshore and in remote locations without requiring access to the internet. The Oilennium ConTrainer is the most recent offering from PTS, further expanding its portfolio of training services and products for the international oil and gas industry.

Developed by Oilennium, the ConTrainer is a standalone Learning Management System (LMS) that features content on a small computer system. The ConTrainer was www.oilennium.com created in response to demand from oil and gas companies seeking to provide interactive learning for employees working in remote locations where they cannot connect to the Internet.

Norway-based Dolphin Geophysical has been using the ConTrainer since September 2012. "To help us achieve a multi-faceted Health and Safety Training programme, we needed a way of deploying eLearning on our global geophysical fleet. Oilennium's ConTrainer fitted that need exactly,” said Mike Hodge, VP of QHSE for Dolphin Geophysical.

A complete risk management solution

Saudi safety milestone for CGG

STRUCTURED AND ANALYTICAL risk management has direct effects on a company’s ability to build a competitive advantage. In order to support organisations with one complete solution for managing operational, project and enterprise risk DNV Software has now incorporated the risk management tool EasyRisk Manager with the Synergi Life risk and QHSEmanagement solution.

It provides a real time snapshot of a company’s risk picture.

The focus of organisations on risk www.dnv.com management has increased due to extended governmental requirements, increased demands for transparency and sustainability and compliance towards standards.

As structured and analytical risk management has direct effects both on profit, reputation and the environment, handling risk on a strategic and on an operational level is a key factor for building a competitive advantage. This web-based software ensures that risk managers can base their decisions on real time information.

To provide one complete web-based solution that covers all risk and QHSE requirements the EasyRisk Manager-functionality is now incorporated into the Risk Management module in the Synergi Life application. EasyRisk Manager is therefore no longer continued as a separate brand.

CGG ANNOUNCED THAT three acquisition crews operating in Saudi Arabia on behalf of Saudi Aramco have achieved impressive safety records. Two OBC crews have completed six million and five million man-hours of continuous operations without a Lost Time Incident (LTI) respectively while a third vibroseis crew has crossed the milestone of seven million man-hours of continuous operations without LTI. All three crews are operated by ARGAS, CGG’s joint venture with TAQA in Saudi Arabia.

OBC crew S66 has been working in the Arabian Gulf for more than two and a half years while OBC crew S65 also worked in that region for more than two years. Both crews have achieved outstanding airgun production rates while recording four-component data with the Sercel SeaRay ® seabed acquisition system.

Each crew deploys 250 people and 8-10 vessels in areas that are congested with production fields, pipelines and vessel routes.

Vibroseis crew S61, mobilizing 875 people, has been operating for the last three and a half years in desert areas in extreme weather conditions.

Jean-Georges Malcor, CEO, CGG, said: “These excellent safety performances by our Saudi crews in challenging operating conditions are testimony to the high level of commitment shown by the management teams of both ARGAS and Saudi Aramco as well as the day-to-day dedication of all the field and support staff.”

CGG also announced that ARGAS, its joint venture with TAQA in Saudi Arabia, has signed a cooperation agreement with the King Abdulaziz University (KAU) in Jeddah.

The agreement is the culmination of two years of informal cooperation between the ARGAS Technology Center in Al Khobar and KAU’s Faculty of Earth Sciences.

Under the terms of the agreement, CGG through ARGAS will donate 24 licences of Hampson-Russell’s comprehensive software suite of reservoir characterisation tools to KAU’s Department of Petroleum Geology and Sedimentology which is part of the University’s Faculty of Earth Sciences.

92 Oil Review Middle East Issue Six 2013

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S15 ORME 6 2013 DMS & Rig Count_Layout 1 19/09/2013 19:48 Page 94

Middle East & North African Rig Count The Baker Hughes Rig Count tracks industry-wide rigs engaged in drilling and related operations, which include drilling, logging, cementing, coring, well testing, waiting on weather, running casing and blowout preventer (BOP) testing.

AUGUST 13 Country

JULY 13

VARIANCE

AUGUST 12

Land & Offshore

Land & Offshore

From Last Month

Land & Offshore

Land & Offshore

JULY 12

From Last Month

VARIANCE

4 93 34 34 21 10 80 0 26 1 6 1 1 360

4 93 32 47 23 12 81 0 26 1 5 1 1 377

0 0 2 -13 -2 -2 -1 0 0 0 1 0 0 -17

4 77 29 49 16 9 77 27 23 0 4 0 0 386

4 81 36 50 17 10 82 24 19 1 4 0 0 399

0 -4 -7 -1 -1 -1 -5 3 4 -1 0 0 0 -13

49 49 15 1 119

49 51 16 3 131

0 -2 -1 -2 -5

46 71 11 3 131

45 71 9 2 127

1 0 2 1 4

Middle East BAHRAIN IRAQ KUWAIT OMAN PAKISTAN QATAR SAUDI ARABIA SYRIA UAE - ABU DHABI UAE - DUBAI YEMEN JORDAN CYPRUS TOTAL

North Africa ALGERIA EGYPT LIBYA TUNISIA TOTAL

Source: Baker Hughes

94 Oil Review Middle East Issue Six 2013

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Project Databank Compiled by Data Media Systems

OIL, GAS AND PETROCHEMICAL PROJECTS Project

Facility

Budget ($ US)

Country

Status

AJOC - KJO - Expansion of Khafji Crude Production Facilities

Oil Production

1522000000

Neutral Zone

Construction

Al Khafji Joint Operations (KJO) - NGL and Export Terminal Facilities

Natural Gas Liquefaction (NGL)

50000000

Al Khafji

Construction

Al Zamil Group - Chemtura Corporation - Jubail Metal Alkyls Plant

Ethylene

150000000

Jubail

EPC

Arabian Amines Company (AAC) - Morpholine and Diglycolamine

DGA

300000000

Jubail

EPC ITB

(Hout Field - Onshore & Offshore)

(DGA) Plant Ibn Rushd - PET/PTA - Yanbu Petrochemicals Complex

Polyethylene

400000000

Yanbu

Construction

Idea International - Yanbu Polysilicon Plant & Solar Wafer

Polymers

1100000000

Yanbu

EPC ITB

Detergents

300000000

Jubail

EPC ITB

Petrochemical Plant

4500000000

Jubail

EPC

Polyethylene

200000000

Jubail

FEED

Production Plant IDEA Soda Ash & Calcium Chloride Company (ISACC) - Soda Ash and Calcium Chloride Complex Jubail Chemicals Storage & Services Company Petrochemicals Quay 2 (PCQ 2) Kayan Petrochemical Company (KPC) - Ultra High Molecular Weight Polyethylene Plant Kemya Elastomer Plant - Ethylene Propylene Diene Monomer (EPDM) Plant Ethylene

600000000

Jubail

EPC

Kemya Elastomer Plant - Halobutyl Rubber Plant (HRP)

Petrochemical Plant

600000000

Jubail

EPC

Kemya Elastomer Plant - Methyl Prepanediol Plant

Dimethyl Ether (DME)

100000000

Jubail

On Hold

Kemya Elastomer Plant - Methyl Tertiary Butyl Ether (MTBE) Plant

MTBE

1000000000

Jubail

Construction

Kemya Elastomer Plant - Offsites and Utilities

Offsites & Utilities

500000000

Jubail

EPC

Kemya Elastomer Plant - Polybutadiene Rubber (PBR) Plant

Petrochemical Plant

EPC

600000000

Jubail

Khafji Joint Operations (KJO) - Dorra Gas Field Development (Overview) Gas Field Development

5000000000

Eastern Region On Hold

Kuwait Gulf Oil Company (KGOC) - Gas and Condensate Export System Condensate Refinery

2000000000

Khafji

LUBEREF - Lubricants Refinery Expansion

Lube Oil

1000000000

Yanbu

EPC

Maaden - Sabic - Mosaic - Waad Al Shamaal Mining City

Petrochemical Plant

850000000

Ras Al Khair

EPC

Petrochemical Plant

750000000

Ras Al Khair

EPC ITB

Polyolefins

123000000

Rabigh

On Hold

Aromatics

5000000000

Rabigh

EPC

Refinery

500000000

Rabigh

Construction

Offsites & Utilities

5000000000

Rabigh

EPC

MTBE

500000000

Rabigh

Construction

Construction

(Package 1) - Ammonia Plant Maaden - Sabic - Mosaic - Waad Al Shamaal Mining City (Package 2) - DAP / NPK / BOP National Industrialization Company (TASNEE) Saudi Advanced Industries Company (SAIC) _ Polyether Polyol Plant Petro Rabigh Refinery & Petrochemical Complex Expansion Phase 2 (Overview) Petro Rabigh Refinery & Petrochemical Complex Expansion Phase 2 - Tank Farm Package (UO2) & Common Facilities (UO3) Petro Rabigh Refinery & Petrochemical Complex Expansion Phase 2 - Utilities and Offsites (UO1) Petro Rabigh Refinery & Petrochemical Complex Expansion Phase 2 _ MTBE Plant Petrokemya - Acrylonitrile Butadiene Styrene (ABS) Plant

Styrene

561000000

Jubail

Construction

Qurain Petrochemical Industries Company (QPIC) -

Paraxylene

1200000000

Jubail

Feasibility Study

Offsites & Utilities

400000000

Jubail

EPC

Butadiene

5000000000

Yanbu

Construction

SABIC - Mitsubishi Rayon - Alpha 2 - Petrochemical Plants

Dimethyl Ether (DME)

500000000

Jubail

EPC ITB

Sabic Terminal Services Company (Sabtank) _ Vopak _ Expansion of

Oil Storage Tanks

450000000

Jubail

EPC ITB

Sabic _ Shell - Sadaf Polyurethane Plant

Styrene

300000000

Jubail

Feasibility Study

Sadara Chemical Company - Jubail Integrated Refining &

Refinery

20000000000

Jubail

EPC

Acrylic Monomers

1700000000

Jubail

EPC

Formaldehyde

500000000

Jubail

EPC

Ethylene Oxide

350000000

Jubail

EPC

Royal Commission for Jubail & Yanbu (RCJY) - PTA & PET Plant Sabic - Celanese Corporation - National Methanol Company (Ibn Sina) - Polyacetal Plant Factory Sabic - ExxonMobil Chemical Company - Kemya - Yanpet Synthetic Rubber Plant

Tank Farm Facilities at Jubail Industrial Port

Petrochemicals Project (Overview) Sadara Chemical Company - Jubail Petrochemicals Complex Acrylic Acid Monomers Complex & Plastics Plant Sadara Chemical Company - Jubail Petrochemicals Complex Aniline Formalin and Dinitroluene (DNT) Nitric Facilities Package Sadara Chemical Company - Jubail Petrochemicals Complex Ethylene Oxide Derivatives (EOD) Unit

S15 ORME 6 2013 DMS & Rig Count_Layout 1 19/09/2013 16:24 Page 97

S15 ORME 6 2013 DMS & Rig Count_Layout 1 19/09/2013 16:24 Page 98

Project Databank Compiled by Data Media Systems Project

Facility

Budget ($ US)

Country

Status

Sadara Chemical Company - Jubail Petrochemicals Complex -

Ethylene Oxide

600000000

Jubail

EPC

High Density Polyethylene (HDPE)

500000000

Jubail

On Hold

Low Density Polyethylene (LDPE)

400000000

Jubail

EPC ITB

Petrochemical Plant

500000000

Jubail

EPC

Offsites & Utilities

1650000000

Jubail

Construction

Polyethylene

300000000

Jubail

EPC

Polyethylene

1300000000

Jubail

EPC

Polyolefins

500000000

Jubail

EPC

Propylene

500000000

Jubail

EPC

Oil Storage Tanks

500000000

Jubail

Construction

Toluene Di-Isocyanate

1000000000

Jubail

EPC

Ethylene

750000000

Jubail

Construction

SAMREF - Yanbu Oil Refinery Revamp - Clean Fuels Project (Overview)

Refinery

2000000000

Yanbu

EPC

SAUDI ARAMCO - Arabiyah and Hasbah Gas Field Development (Overview)

Gas Field Development

3000000000

Arabiyah

EPC

SAUDI ARAMCO - Carbon Dioxide Injection Plant - Uthmaniyah Field

Carbon Dioxide

100000000

Uthmaniyah

EPC

Saudi Aramco - Dow - Ras Tanura Gas Plant (Overview)

Gas Field

4000000000

Ras Tanura

EPC ITB

Saudi Aramco - Dow - Ras Tanura Gas Plant -

Gas Processing

500000000

Ras Tanura

Construction

Saudi ARAMCO - Expansion of Khurais Oilfield

Oil & Gas Field

3000000000

Eastern Region FEED

Saudi Aramco - Fadhili Plant

Gas Field

1000000000

Eastern Region FEED ITB

Saudi Aramco - Hasbah Offshore Development Program - Gas Processing Plant

Gas Processing

1500000000

Manifa

Saudi Aramco - Jizan Export Refinery (Overview)

Refinery

7000000000

Jizan

EPC

Saudi Aramco - Jizan Export Refinery -

Refinery

500000000

Jizan

EPC

Diesel Hydro Desulphurisation (DHDS) 220000000

Jizan

EPC

Ethylene Oxide Plant Sadara Chemical Company - Jubail Petrochemicals Complex High Density Polyethylene (HDPE) Plant Sadara Chemical Company - Jubail Petrochemicals Complex High Pressure Low Density Polyethylene (HP-LDPE) Plant Sadara Chemical Company - Jubail Petrochemicals Complex Methyl-N-nitrosobenzamide (MNB) Package Sadara Chemical Company - Jubail Petrochemicals Complex Offsites & Utilities Sadara Chemical Company - Jubail Petrochemicals Complex Polyethylene Oxide Diacrylate (POD) Plant Sadara Chemical Company - Jubail Petrochemicals Complex Polyethylene Package Sadara Chemical Company - Jubail Petrochemicals Complex Polymeric Methylene Diphenyl Disocyanate (PMD) Facility Sadara Chemical Company - Jubail Petrochemicals Complex Propylene Oxide (PO) Facility Sadara Chemical Company - Jubail Petrochemicals Complex Refinery Tank Farm Package Sadara Chemical Company - Jubail Petrochemicals Complex Toluene Di-Isocyanate (TDI) Production Facility Sahara & Maaden Petrochemicals Company (Samapco) Ethylene Dichloride (EDC) and Acrylic Complexes

Ethylene Cracker and TDI Units

EPC

Crude Distillation Unit/Vacuum Distillation Unit, Flare & Pipe Rack Complex Saudi Aramco - Jizan Export Refinery - Diesel Hydro-Treater Unit

Saudi Aramco - Jizan Export Refinery - Fuel Gas Saturation & Treatment Unit Biofuels

500000000

Jizan

On Hold

Saudi Aramco - Jizan Export Refinery - Hydrocracker Unit

Hydrocracker

250000000

Jizan

EPC

Saudi Aramco - Jizan Export Refinery - Naphtha Hydrotreater Complex Hydrotreating

500000000

Jizan

EPC

Saudi Aramco - Jizan Export Refinery - Site Preparation

Oil Production

1000000000

Jizan

EPC

Saudi Aramco - Jizan Export Refinery _ Sour Water Stripper &

Refinery

500000000

Jizan

EPC

Amine Regeneration Unit Saudi Aramco - Jizan Export Refinery _ Tank Farms

Oil Storage Tanks

1000000000

Jizan

EPC

Saudi Aramco - Jizan Export Refinery _ Utilities Package

Offsites & Utilities

1000000000

Jizan

EPC

Saudi Aramco - Liquefied Natural Gas (LNG) Receiving Terminal

Liquefied Natural Gas (LNG)

1000000000

Jeddah

Feasibility Study

SAUDI ARAMCO - Manifa Field Development (Overview)

Oil Production

11000000000

Manifa

EPC

Saudi Aramco - Midyan Gas Processing Plant

Gas Processing

800000000

Tabuk

EPC

Saudi Aramco - Ras Tanura Refinery - Aromatics Unit

Aromatics

500000000

Ras Tanura

FEED

Saudi Aramco - Ras Tanura Refinery - Clean Fuels Package

Aromatics

500000000

Ras Tanura

EPC ITB

Saudi Aramco - Riyadh Refinery - Clean Transportation Fuel

Isomerisation

2500000000

Riyadh

EPC

Saudi Aramco - Safaniyah Oil Field (Phase 2)

Oil & Gas Field

500000000

Safaniyah

EPC ITB

Saudi Aramco - Shale Gas Production

Shale Gas

Unknown

Unknown

Feasibility Study

Saudi Aramco - Shaybah NGL - Recovery Unit (Overview)

Natural Gas Liquefaction (NGL)

6000000000

Shaybah

Construction

Saudi Aramco - Wasit Gas Development - Industrial Support Facilities

Offsites & Utilities

100000000

Al Sharqiya

EPC

Saudi Aramco - Wasit Gas Development - Onshore Facilities -

Gas Processing

200000000

Al Sharqiya

EPC

Natural Gas Liquefaction (NGL)

150000000

Al Sharqiya

EPC

Gas Processing Unit Saudi Aramco - Wasit Gas Development - Onshore Facilities NGL Fractionation Plant

S15 ORME 6 2013 DMS & Rig Count_Layout 1 19/09/2013 16:24 Page 99

Project

Facility

Budget ($ US)

Country

Status

Saudi Aramco - Wasit Gas Development - Onshore Facilities -

Sulphur Recovery

250000000

Al Sharqiya

EPC

Saudi Aramco - Wasit Gas Field Development (Overview)

Gas Field Development

6000000000

Dammam

Construction

Saudi Aramco Total Refinery and Petrochemical Company (Satorp) -

Refinery

10000000000

Jubail

EPC

Polybutylene Terephthalate (PBT)

165000000

Jubail

EPC

Aromatics

250000000

Jubail

Feasibility Study

Butanol

500000000

Jubail

EPC

Sulphur Recovery Units

Jubail Export Refinery Saudi International Petrochemical Company (Sipchem) Chemicals Company - Polybutylene Terephthalate (PBT) Plant Saudi Japanese Acrylonitrile Company (SHROUQ) Acrylonitrile and Sodium Cyanide Complex Saudi Kayan - Saudi Acrylic Acid Company (SAAC) -

Sadara Chemical Company - National Industrialization Company (Tasnee) - N-Butanol Plant Solvay - Sadara Chemical Company - Hydrogen Peroxide Plant

Petrochemical Plant

200000000

Jubail

EPC

South Rub Al-Khali (SRAK) -

Gas Exploration

8000000000

Rub Al Khali

On Hold

Wafra Joint Operations Company _ Wafra Heavy Oil Field (Overview)

Steam Injection

800000000

Neutral Zone

EPC

Yanbu Aramco Sinopec Refining Company (YASREF) -

Refinery

13000000000

Yanbu

EPC

Refinery

1000000000

Yanbu

Construction

Unleaded Gasoline

2300000000

Yanbu

Construction

Yanbu Aramco Sinopec Refining Company (YASREF) -

1200000000

Yanbu

Construction

Yanbu Export Refinery - Hydrocracker Facility (Package 4)

Hydrocracker

Yanbu Aramco Sinopec Refining Company (YASREF) -

Pipeline

1500000000

Yanbu

Construction

Oil Storage Tanks

1000000000

Yanbu

Construction

Kidan Non-Associated Gas Exploration Plan

Yanbu Export Refinery (Overview) Yanbu Aramco Sinopec Refining Company (YASREF) Yanbu Export Refinery - Crude Block Facility (Package 2) Yanbu Aramco Sinopec Refining Company (YASREF) Yanbu Export Refinery - Gasoline Distiller Block (Package 3)

Yanbu Export Refinery - Offsite Pipelines (Package 5) Yanbu Aramco Sinopec Refining Company (YASREF) Yanbu Export Refinery _ Storage Tanks/Tank Farm (Package 6)

www.oilreview.me

Oil Review Middle East Issue Six 2013 99

S15 ORME 6 2013 DMS & Rig Count_Layout 1 19/09/2013 16:24 Page 100

Project Focus Compiled by Data Media Systems

Project Summary Project Name

Sabic Shell - Sadaf Polyurethane Plant

Name of Client

SABIC - Saudi Basic Industries Corporation Royal Dutch Shell - Saudi Arabia

Budget ($ US)

300,000,000

Award Date

Q3-2013

Facility Type

Styrene

Status

Feasibility Study

Start Date

Q2-2012

End Date

Q1-2016

Location

Jubail, Saudi Arabia

Project Backgrounds Saudi Basic Industries Corporation (Sabic), in partnership with the Shell Group (UK and Dutch JV), is planning to build a polyurethane plant at the Saudi Arabia Petrochemical Company (Sadaf) complex in Jubail.

Project Status 25 Aug 2013

The project was at the study stage.

Nov 2012

Using Shell's production technology, the JV partners plan to conduct joint studies for the production of a range of polyurethane building blocks (polyols) and styrene monomer propylene oxide (SMPO) at the Sadaf complex

Nov 2012

Sabic and Shell Group have revealed that they are moving ahead with their expansion plans for the construction of a polyol and styrene monomer plant.

May 2012

International contractors are expecting pre-qualification documents or tenders to be issued in the fourth quarter of 2012.

Apr 2012

The project is in the feasibility stage.

Project Scope The scope of the project involves the construction of a polyurethane plant along with associated facilities.

Polyurethane is derived from monomers and combines the qualities of rubber and plastic. Uses for the material include high performance adhesives, synthetic fibers, insulation panels, seals and gaskets, as well as a number of applications in the automotive industry.

Project Finance Saudi Basic Industries Corporation (Sabic) and the Shell Group (Netherlands/UK) are the clients on the scheme.

Sadaf complex has been in operation since 1985 and is a 50:50 joint venture between Sabic and Shell. The complex’s current off-take includes ethylene, crude industrial ethanol, styrene, caustic soda and ethylene dichloride.

Project Schedules PQ

Awarded

2Q-2012

Feasibility Study

4Q-2012

EPC ITB

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S16 ORME 6 2013 Arabic_Layout 1 19/09/2013 17:33 Page 107

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IóFGôc á«dhódG áMÉ°ùdG ≈∏Y ô£b áfÉμe õjõ©J ‘ ⪡°SGC ∫ƒ°SÉ°S ácô°Th ∫hÎÑ∏d ô£b ÚH ábÓ©dG πFGƒ°S ¤GE RɨdG πjƒ– ¥ƒ°S ‘ á«ŸÉY

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S16 ORME 6 2013 Arabic_Layout 1 19/09/2013 17:33 Page 109

‫أﺧﺒﺎر‬

‫ دوﻻرات‬١١٠ ‫ﻣﺘﻮﺳﻂ ﺳﻌﺮ ﺑﺮﻣﻴﻞ اﻟﺨﺎم ﻓﻲ أﺑﻮ ﻇﺒﻲ‬

2013 ÜGB/¢ù£°ùZGC ‘ »μjôeGC Q’hO 110^73 »XƒHGC ΩÉÿ »ª°SôdG ô©°ùdG §°Sƒàe ≠∏H

‘ ôªà°ùŸG ójGõà˘dG á˘¡˘LGƒ˘e ‘ Ió˘Yɢ°ùª˘∏˘d ∂dPh ‘ á∏eÉ©dG »ÑXƒHGC ácô°T §£îJh .»ŸÉ©dG Ö∏£dG ∑ƒ˘ ∏˘ ªŸGh ,(ᢠ∏˘ eɢ ©˘ dG ɢ eOGC) ᢠjô˘ ë˘ Ñ˘ dG ≥˘ Wɢ æŸG 10 øY π≤j ’ Ée Qɪãà°S’ ,∑ƒfOGC ácô°ûd É¡ª¶©e Ú p jôëH pÚ∏≤M ôjƒ£˘J ‘ »˘μ˘jô˘eGC Q’hO äGQɢ«˘∏˘e áÑ°ùæH ΩÉÿG §ØædG øe ácô°ûdG êÉàfGE ™aQ ±ó¡H á˘∏˘ eɢ©˘dG ɢeOGC á˘cô˘°T âMô˘°U ó˘ bh .ᢠFÉŸG ‘ 60 400 ¤GE á«LÉàf’EG É¡JQób ™aQ Ωõà©J É¡fÉCH GôNƒDe ¿ƒ«∏e ¤GE ÉÑjô˘≤˘J π˘°üJ ≈˘à˘M ,ɢ«˘eƒ˘j π˘«˘eô˘H ∞˘dGC .2020 ∫ƒ∏ëH É«eƒj π«eôH

.É¡d Gô≤e ¢ùjQÉH øe òîàJ »àdG ( ) IQó˘≤˘dG ô˘jó˘≤˘à˘ H IQƒ˘ còŸG á` `dɢ cƒ˘ dG â` `eɢ bh ᢫˘Hô˘©˘dG äGQÉ` ` ` e’EɢH §˘Ø˘æ˘∏˘d á˘ª˘FGó˘dG ᢫˘Lɢà˘f’EG ‘ Ωƒ˘«˘dG ‘ π` ` «˘eô˘H ¿ƒ˘«˘∏˘e 2^90 O󢩢H Ió˘ë˘àŸG É¡LÉàfGE §°Sƒàe ≠∏H ɪæ«H ,Rƒ“/ƒ«dƒj ô¡°T ájÉ¡f π«eôH ¿ƒ«∏˘e 2^65 »˘°VÉŸG Ωɢ©˘dG ‘ §` Ø˘æ˘dG ø˘e .ádÉcƒdG âæ«H ɪѰùM ,Ωƒ«dG ‘ IóëàŸG á«Hô©dG äGQÉe’EG ádhO ¿GC ôcòdÉH Qóéj π°üàd §ØædG øe á«LÉàf’EG ɢ¡˘JQó˘b IOɢjR Ωõ˘à˘©˘J ,2020 ΩÉY ∫ƒ∏ëH Ωƒ«dG ‘ π«eôH ¿ƒ«∏e 3^5 ¤GE

§ØædG äÉÄØd »ª°SôdG ™«Ñ˘dG ô˘©˘°S §˘°Sƒ˘à˘e ≠˘∏˘H »μjôeGC Q’hO 110^73 »ÑX ƒHGC ‘ ™HQ’CG ΩÉÿG IOÉjR »gh ,2013 ÜGB/¢ù£°ùZGC ô¡°T ‘ π«eÈ∏d ô˘ ¡˘ °T ‘ π˘ «˘ eÈ∏˘ d ᢠ«˘ μ˘ jô˘ eGC äGQ’hO 106 ø˘ ˘ Y »àdG äÉfÉ«ÑdG ¬æY âØ°ûc Ée Ö°ùëH ,Rƒ“/ƒ«dƒj .(∑ƒfOGC) á«æWƒdG »ÑXƒ˘HGC ∫hÎH á˘cô˘°T ɢ¡˘Jô˘°ûf ø˘e ó˘jQƒ˘à˘dG ¢VÉ˘Ø˘î˘fG ¿CɢH ∑ƒ˘fOGC âMô˘°U ó˘≤˘a ´É˘Ø˘JQG ¤GE iOGC ó˘b ,§˘Ø˘æ˘∏˘d á˘é˘à˘æŸG ∫hó˘dG ¢†©˘H ô˘ ˘ ¡˘ ˘ °T ∫Ó˘ ˘ ˘N ɢ ˘ ˘«ŸÉ˘ ˘ ˘Y ΩÉÿG §˘ ˘ ˘Ø˘ ˘ ˘æ˘ ˘ ˘dG Qɢ ˘ ˘©˘ ˘ ˘°SGC ™˘«˘Ñ˘dG ô˘©˘°S ≠˘∏˘H ô˘¡˘°ûdG Gò˘g »˘Ø˘a .ÜGB/¢ù£˘°ùZGC ¬éàæJ …òdG ,ΩÉÿG §ØædG äɢĢa ô˘¡˘°T’C »˘ª˘°Sô˘dG »μjôeGC Q’hO 111^70 ,¿ÉHôeo ΩÉN ƒgh ,IQÉe’EG »˘μ˘jô˘eGC Q’hO 106^85 ø˘ ˘Y OGR …GC ,π˘ ˘«˘ ˘eÈ∏˘ ˘d ΩÉN ô©°S ≠∏H Éªæ«˘H Gò˘g .Rƒ“/ƒ˘«˘dƒ˘j ‘ π˘«˘eÈ∏˘d π˘«˘eÈ∏˘d »˘μ˘jô˘eGC Q’hO 111^50 »˘∏˘Ø˘°ùdG Ωƒ˘cGR .äÉfÉ«ÑdG ¬JôcP Ée Ö°ùëH ,ÜGB/¢ù£°ùZGC ∫ÓN É°†jGC ∞«°T ΩGC ΩÉÿ »ª˘°Sô˘dG ™˘«˘Ñ˘dG ô˘©˘°S ≠˘∏˘H ó˘bh Ék˘«˘μ˘ jô˘ eGC k GQ’hO 111 ÜGB/¢ù£˘ ˘ ˘°ùZGC ô˘ ˘ ˘¡˘ ˘ ˘°T ‘ ‘ ,…ƒ˘∏˘©˘dG Ωƒ˘cGR ΩɢN ô˘©˘°S ≠˘∏˘H ɢª˘æ˘«˘H ,π˘«˘eÈ∏˘d .π«eÈ∏d »μjôeGC Q’hO 108^70 ô¡°ûdG ¢ùØf øe áFÉŸG ‘ 90 øe ÌcGC πã“ »ÑXƒHGC ¿ÉCH ɪ∏Y ᢠ«˘ Hô˘ ©˘ dG äGQɢ e’EG ᢠdhó˘ H ΩÉÿG §˘ Ø˘ æ˘ dG êɢ à˘ fGE .¬æe ≈ª¶©dG á«ÑdɨdG ôjó°üJ ºàj …òdGh ,IóëàŸG ∫ÓN ,§ØædG øe äGQÉe’EG êÉàfGE §°Sƒàe ≠∏H óbh ƒgh ,É«eƒj π«eôH ¿ƒ«∏e 2^70 ,Rƒ“/ƒ«dƒj ô¡°T ‘ π«eôH ¿ƒ«∏e 2^73 ᫪μdG øY Ó«∏b ¢†Øîæe ∂dPh ,¿Gô˘jõ˘M/ƒ˘«˘fƒ˘j ‘ ɢ¡˘«˘∏˘Y ¿É˘c »˘à˘dG Ωƒ˘«˘dG ᢠbɢ £˘ ∏˘ d ᢠ«˘ dhó˘ dG ᢠdɢ cƒ˘ dG ø˘ Y Qó˘ °U ɢ e Ö°ùë˘ H

‫ ﻣﻠﻴﻮن دوﻻر‬٣٤٧^٨ ‫اﻟﻌﺮاق ﻳﻤﻨﺢ ﻋﻘﻮد ﺣﻔﺮ ﻗﻴﻤﺘﻬﺎ‬ äÉeóÿG ‘ á°ü°üîàe IóMh »gh ,( ) ¿ƒ«∏e 73^82 ¬àª«b ó≤©H ,∑ƒæ«°ùd á©HÉJ á«£ØædG ,¿É˘ «˘ Ñ˘ dG ø˘ e í˘ °†à˘ j ⁄ ¬˘ fGC ÒZ .»˘ μ˘ jô˘ eGC Q’hO ÉgôØëà°S »àdG QÉH’BG OóY ,RÎjhQ äôcP ɪѰùM .ácô°T πc ™˘e ɢbÉ˘Ø˘JG 2010 ‘ ™˘ bh ¥Gô˘ ©˘ dG ¿ÉC˘ H ɢ ª˘ ∏˘ Y ᢠ«˘ eƒ˘ μ◊G ᢠ«˘ cÎdG ∫hÎÑ˘ dG ᢠ°ù°SƒD˘ eh ∑ƒ˘ æ˘ «˘ °S ∫ƒ˘≤˘M Ió˘Y º˘ °†j …ò˘ dG ¿É˘ °ù«˘ e ™˘ ª› ô˘ jƒ˘ £˘ à˘ d ¤GE êÉàf’EÉH ∫ƒ°UƒdG ±ó¡H ∂dPh ,IÒ¨°U á«£Øf .2016 ΩÉY ∫ƒ∏M ™e É«eƒj π«eôH ∞dGC 450

QÉ«∏e 2^5 ¬˘JɢWɢ«˘à˘MG ≠˘∏˘Ñ˘J …ò˘dG ¿É˘°ù«˘e ™˘ª› ájôëÑdG §ØædG ácô°T √ôjƒ£J ¤ƒàJ …òdGh ,π«eôH ∫hÎÑ˘dG ᢰù°SƒD˘eh (∑ƒ˘æ˘«˘°S) ᢫˘æ˘«˘°üdG ᢫˘eƒ˘≤˘dG .( ) á«eƒμ◊G á«cÎdG ¿GE ,∫hÎÑ˘ dG IQGRh ø˘ Y QOɢ °üdG ¿É˘ «˘ Ñ˘ dG ∫ɢ bh OQƒ˘aQò˘jh ᢫˘μ˘jô˘e’CG ᢫˘£˘Ø˘æ˘dG äɢeóÿG á˘cô˘°T 94^98 á˘ª˘«˘≤˘H QɢHGB ô˘Ø◊ øp˘jó˘≤˘Y ≈˘∏˘Y â∏˘°üM »μjôeGC Q’hO ¿ƒ«∏e 82^39h »μjôeGC Q’hO ¿ƒ«∏e ≈∏Y á«æ«°üdG …Égƒ˘H â∏˘°üM ɢª˘c .‹Gƒ˘à˘dG ≈˘∏˘Y äRÉah .»μjôeGC Q’hO ¿ƒ˘«˘∏˘e 96^66 ¬àª«b ó˘≤˘Y

¿GC ,É` ` ¡d ¿É` `«H ‘ ,á«` bGô©dG á`eƒμ◊G â`æ∏YGC ¿ƒ«∏e 347^8 ɢ¡˘à˘ª˘«˘b GOƒ` `≤˘Y í˘æ˘e ó˘b ¥Gô` ` ©˘dG ᢠ«˘ ∏˘ ˘Mɢ ˘°ùdG ¿É` °ù«˘ ˘e Qɢ ˘HGB ô˘ ˘Ø◊ »˘ ˘μ˘ ˘jô˘ ˘eGC Q’hO .OÓ` ` ÑdG ܃` æL ‘ IOƒ`LƒŸG çÓãd Oƒ≤©dG á` «bGô˘©˘dG á` ` eƒ˘μ◊G âë˘æ˘e ó˘bh äÉeóÿG Ëó≤J ‘ á` ` °ü°üîàe á«ŸÉY äÉcô` ` °T ácô°Th á«μjôe’CG OQƒaQòjh ácô°T »gh ,á«£ØædG ( ) ô˘ Ø◊G äɢ eóÿ ᢠ«˘ æ˘ «˘ °üdG …ɢ ˘gƒ˘ ˘H IOhóÙG ᫢£˘Ø˘æ˘dG äɢeó˘î˘∏˘d ᢫˘æ˘«˘°üdG á˘cô˘°ûdGh ‘ ᢫˘Lɢà˘fGE Gô˘Ä˘H 39 ô˘ ˘ ˘ ˘ ˘Ø◊ ∂dPh ,( )

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‫اﻟﻘﺴﻢ اﻟﻌﺮﺑﻲ‬ 4

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‫ﻣﻠﺨﺺ ﻣﺤﺘﻮﻳﺎت اﻟﻘﺴﻢ اﻹﻧﺠﻠﻴﺰي‬ :á°UÉN ôjQÉ≤J .ájOƒ©°ùdG ƒμeGQGC ¢Vô©e ,á«YÉæ°üdG ¿óŸG ,øjôëÑdG ,ájOƒ©°ùdG á«Hô©dG áμ∏ªŸG ......................................................................................................................................................................................................

:äÉYÓ£à°SG .∫É°ùŸG »©«Ñ£dG RɨdG ,Úeóîà°ùŸÉH ®ÉØàM’Gh ∞«XƒàdG ......................................................................................................................................................................................................

:á«æ≤J πFÉ°ùe .äÉØãμŸG ,äÉ«∏ª©dG á«JÉeƒJhGC ,É¡©æeh ≥FGô◊G ±É°ûàcG ,ôØ◊G êGôHGC ójóŒ ......................................................................................................................................................................................................

:äÉeƒ∏©ŸG É«LƒdƒæμJh ä’É°üJ’G .»FôŸG QÉ¡X’EG á«æ≤J ,äÉeƒ∏©ŸG øeGC ......................................................................................................................................................................................................

:äGô“ƒDeh ¢VQÉ©e ¢Vô©˘e ,iÈμ˘dG ¥Gô˘©˘dG äɢYhô˘°ûe ,á÷ɢ©ŸG ᢰSó˘æ˘¡˘d §˘°Sh’CG ¥ô˘°ûdG ¢Vô˘©˘eh ô“ƒD˘e .RɨdGh §Øæ∏d âjƒμdG ¢Vô©e ,RɨdGh §Øæ∏d ‹hódG áMhódG ADVERTISERS INDEX Company..................................................Page ABB Automation L.L.C ..............................................97 ADGAS ..........................................................................49 AES Arabia Ltd. ..........................................................39 Aggreko Middle East Ltd. ........................................20 Al Rashed Fasteners ..................................................79 ALAA AESSEAL CO. LTD ............................................81 AlMansoori Specialized Engineering ....................83 BAPCO ..........................................................................51 Bredero Shaw Middle East Ltd. ..............................13 Bruck Pipeconnections BV ......................................64 CGG Services (SA) UAE ............................................91 DMG World Media Dubai Ltd. (ADIPEC 2013) ......................................104 DMS GLOBAL (ISA) ....................................................99 DNV................................................................................17 Duferco ........................................................................71 Eaton Industries GmbH ..............................................9 Elliott Group ................................................................61 Emerson Process Management ................................7 Expotim International Fair ORG. INC (Basra Oil&Gas) ................................................108 General Electric - Energy..........................................63 Global Pipe Company................................................79 Hardbanding Solutions..............................................69

Hart BV. ........................................................................89 Hempel Paints Bahrain ............................................33 Hi-Force Ltd. ................................................................25 IIR Exhibitions (MEE) ..............................................106 Inmarco Industries FZC ............................................65 Inova Geophysical Equipment Ltd. ......................101 International Exhibition Services SRL (SAOGE) ..85 John Zink International Luxembourg S.ar.l. ........29 Jotun Paints UAE Limited LLC ..................................5 Kallman Worldwide, Inc. ..........................................87 Kohler Power Systems ..............................................62 Kuwait Petroleum Corporation ............................111 Kuwait Shell Limited ................................................43 Marelli Motori SPA ......................................................2 Metscco Heavy Steel Industries Co. Ltd...............66 National Pipe Co. Ltd. ..............................................40 Nexans ..........................................................................21 OKI Europe Ltd............................................................75 Oman Cement Company ..........................................53 Orbcomm......................................................................89 Petroleum Coke Industries ......................................75 Prakash Steelage Limited ........................................27 Raccortubi Middle East Fze ....................................77 Reed Exhibitions FZ LLC (WFES) ............................73 Saga PCE Pte Ltd. ......................................................19

Samson Controls FZE ................................................75 SAUDI ABRASIVES ....................................................42 Saudi Leather Industries Company Limited ........41 Saudi Steel Pipe Company ....................................34 Schlumberger Oilfield Mktg Communications ......6 Schlumberger Technical Services Inc ......................3 Schoeller - Bleckmann UK ......................................54 Seco Tools UAE ..........................................................37 SFL Industries Stopaq B.V.........................................31 Shangri-La Hotel and Traders Hotel ......................11 Shree Steel Overseas FZCO ....................................22 Sica SpA........................................................................28 Smit Lamnalco Netherlands b.v..............................15 Societa' Italiana Elicotteri S.r.l. ..............................93 Society of Petroleum Engineers ............................32 Spina Group Srl ..........................................................45 Suraj Limited ..............................................................25 Timberland ..................................................................23 Top Oil Field Industries Ltd. FZC ............................57 Trans Asia Pipeline Services FZC ..........................38 Tratos Cavi S.p.A.........................................................40 Triplefast Middle East Limited ................................87 VF Imagewear ............................................................95 VWS Oil & Gas ............................................................47 Ward Leonard Electric Company, Inc. ..................59

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