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Kuwait progresses its energy ambitions UK £10, USA $16.50 Challenges and opportunities for the downstream industry IMO 2020 — winners and losers Advances in metering technology An integrated approach to corrosion control Countering oil and gas cybersecurity threats VOLUME 21 | ISSUE 6 2018 www.oilreview.me SEE US AT Serving the regional oil & gas sector since 1997 21 21
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Page 1: ORME62018Cover …Zour refinery, LNG import terminal and the development of its heavy oilfields. See our features on ps11 and 14 for updates, as well as advice on approaching the market.

Kuwaitprogresses itsenergyambitions

UK £10, USA $16.50

Challenges andopportunities for thedownstream industry

IMO 2020 — winners andlosers

Advances in meteringtechnology

An integrated approach tocorrosion control

Countering oil and gascybersecurity threats

VOLUME 21 | ISSUE 6 2018

www.oilreview.me

Oil R

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- Volume 2

1 - Issue Six 2

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SEE US AT

Serving the regional oil & gas sectorsince 1997

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Page 3: ORME62018Cover …Zour refinery, LNG import terminal and the development of its heavy oilfields. See our features on ps11 and 14 for updates, as well as advice on approaching the market.

KUWAIT IS A hugely promising market as it looks to boost production to fourmillion bpd by 2020 and makes progress on major projects such as the Al-Zour refinery, LNG import terminal and the development of its heavy oilfields.See our features on ps11 and 14 for updates, as well as advice onapproaching the market.

With the increased focus in the region on refining and petrochemicals toadd value, we preview the first GDA International Downstream Conference &Exhibition, and feature expert views on some of the challenges and issues theindustry is facing (p24).

We also examine the impact of the new IMO fuel oil regulations (p16) andtechnology trends for oil shipping (p46), as well as reporting on the latestcompressor developments (p32). While our technology section coverscorrosion prevention, metering technologies and cybersecurity.

Editor’s note

Calendar4 Executives’ calendar and event

newsWith a look ahead to ADIPEC and theBasra Oil, Gas & Infrastructure Conference

News8 Developments

A round-up of the latest news from aroundthe region, including Saudi Aramco’sdrilling plans and ADNOC’s plans toexpand Ruwais

Kuwait Review11 Major opportunities in Kuwait

Latest project developments and advice fordoing successful business

14 LNG set to energise Kuwait’seconomyKuwait is the first country in the MiddleEast to invest in a land-based LNG importterminal

Analysis16 IMO 2020 - winners and losers

The impact of the new IMO fuel oilregulations on shippers and oil producers

Refining & Petrochemicals20 Pursuing operational excellence in

KuwaitHow operational optimisation is beingpursued in some of Kuwait’s major refiningand petrochemical projects

Event Preview - GDAConference 201824 Advancing the Gulf’s downstream

industryThe first Gulf Downstream Association(GDA) International DownstreamConference & Exhibition takes place from23-25 October in Bahrain

26 Challenges and opportunities for thedownstream industrySpeakers and GDA Technical Committeemembers share their thoughts on the majorthemes and issues affecting the industry

Compressors34 Getting closer to the customer

Italy-based compressor manufacturerROTAIR is experiencing strong growth inthe Middle East

Technology38 An integrated approach to corrosion

controlThe benefits of combining intrusive andnon-intrusive monitoring systems

42 A modular approach to multiphasemetersHow multiphase meters are evolving toaddress new challenges

44 Countering oil and gascybersecurity threatsThe ongoing digitalisation of the oil andgas sector is resulting in a new set ofsafety and security concerns

Shipping46 Technology trends for oil shipping

Some global technology trends shapingtanker industry safety on a global level

Fire safety48 A strong performance under fire

Demand is growing for fire-safe valves

Arabic4 News / Analysis

Contents

www.oilreview.meemail: [email protected]

Serving the world of business

Issue 6 2018 oilreview.me 3

Editor: Louise Waters - [email protected]

Editorial and Design team: Prashanth AP, Hiriyti Bairu, Miriam Brtkova, Praveen CP, Ebin GheeVarghese, Samantha Payne,Rahul Puthenveedu, Rhonita Patnaik and Deblina Roy

Managing Editor: Georgia Lewis

Publisher: Nick Fordham

Sales Director: Michael Ferridge

Group Magazine Manager: Graham Brown +971 4 448 9260 [email protected]

Magazine Sales Manager: Tanmay Mishra +91 80 65684483 [email protected]

International Representatives

Nigeria Bola Olowo +234 8034349299 [email protected]

USA Michael Tomashefsky +1 203 226 2882 +1 203 226 7447 [email protected]

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

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Printed by: Buxton Press

Printed in: September 2018

© Oil Review Middle East ISSN: 1464-9314

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Calendar 2018

4 oilreview.me Issue 6 2018

Executives’ Calendar 2018OCTOBER

9-11 Oil & Money conference LONDON www.oilandmoney.com

9-10 Basra Megaprojects - Oil, Gas & Environment ISTANBUL www.cwcbasraoilgas.com

15-17 Middle East Electricity Saudi 2018 RIYADH www.middleeastelectricitysaudi.com

16-18 SPE Int’l Hydraulic Fracturing Conference & Exhibition MUSCAT www.spe.org.events

17 GPCA Digitalisation Workshop JUBAIL www.gpca.org.ae

23-25 GDA Int’l Conference & Exhibition MANAMA www.gdaconference.org

NOVEMBER

12-15 ADIPEC ABU DHABI www.adipec.com

27-28 4th Annual Health, Safety & Security Forum DUBAI www.hse-forum.com

DECEMBER

5-7 Iraq Oil & Gas Basra BASRA www.basraoilgas.com

11-12 ME-SPEC MANAMA www.me-spec.org

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

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The 4th Annual Health, Safety & Security Forum takes place in Dubai from 27-28November 2018 under the patronage of the UAE Ministry of Health and Prevention and withthe support of the RTA Dubai, ADNOC, Emirates Authority for Standardization & Metrologyand Emirates National Accreditation System.

HEALTH, SAFETY AND security arereceiving an increased focus in theUAE, in response to rapidly evolvingsecurity threats worldwide, as well

as continued growth in the country’scommercial property, financial and tourismsectors. Fire protection also has huge growthpotential, with the Middle East fire securitymarket estimated to grow annually by 12.5per cent from 2012 to 2020, making it one ofthe largest in the world.

Continuing the highly acclaimed eventseries, the 4th Annual Health, Safety &Security Forum will bring together HSEpractitioners, government regulators, policymakers and solutions providers to shareinsights and experiences on critical health andsafety issues. It will highlight best practices,strategies, process improvements andtechnology advances for the enhancement ofHSE performance in the UAE, as well asendeavouring to align world class principleswith local industry requirements.

The main themes this year includeoccupational health in the era of big data;preventing accidents caused by falling fromheight; crafting a behavioural change strategy;creating a resilient and productive workforceby investing in employee health; and managingsecurity risks in the oil and gas industry.

Speakers include Raed Al Marzouqi, headof section, Occupational Health and Safety,Dubai Municipality, a stalwart of previousforums, who will speak on preventingaccidents caused by falling from height, whileJorge Manuel Miranda Dias, Professor,Electrical and Computer, EngineeringDepartment, Khalifa University Abu Dhabi, willdiscuss how to detect abnormal behavioursand human crowd modelling using video.

With numerous studies underlining thebusiness benefits of investing in health andsafety, Dr Ola Ahmed Mira, Head ofEnvironment & Occupational Health & Safety,Ministry of Health, UAE will discuss thebenefits of investing in employee health tocreate a productive and resilient workforce.

Farah al-Ansari, Head – Airport Security,Dubai Airports, will discuss embedding aworld class security culture whilst ensuringstakeholder engagement. Also speaking willbe Dr Mohammad Aref, OSH expert, Ministryof Human Resources & Emiratization.

A panel comprising Dr Rebab Al Ameri,director – National Accreditation System,Emirates Authority for Standardization &Metrology; Dr Ola Mira, and a seniorrepresentative from ADNOC will discuss howto achieve ‘zero incidents’ in onshore andoffshore operations.

Harnessing technology will feature stronglyat this year’s event. The role of artificialintelligence and robots will be discussed, alongwith leveraging data technologies and analyticsto improve HSE performance. The use ofUAVs to inspect hazardous locations, VR as alearning tool and the effective use of wearabletechnology will also come under scrutiny.

A highlight of the event will be a mockevacuation fire drill to prepare foremergencies, following its successfulintroduction at previous Forums. Other special features will be a workshoppresented by the Ministry of Health, and aninnovation showcase, featuring the latestproducts and technology.

The 4th Annual Health, Safety &Security Forum will provide a valuableopportunity to obtain an update about thelatest HSE developments and regulations inthe region, learn about the strategies,technological advancements and bestpractices for the enhancement of HSEperformance, and meet face to face withleading decision-makers from industry and government. n

For further information and to register, seethe website at www.hse-forum.com

Enhancing HSE

perform�nce

Raed Al Marzouqi, Head of Section, Occupational Health and Safety, Dubai Municipality, will return tothe 4th Annual HSE Forum in Dubai this year.

4th ANNUAL

Forum 2018

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THE ABU DHABI International PetroleumConference & Exhibition (ADIPEC) will takeplace from 12-15 November at the Abu DhabiNational Exhibition Centre (ADNEC). The world leading oil and gas show is

expected to attract more than 110,000 tradeprofessionals from around the world and morethan 2,200 exhibiting companies, including 39NOCs and IOCs, and 29 international countrypavilions, featuring the most advancedtechnologies, products and services.Digitalisation will be a key focus for the

2018 edition. According to recent research byMcKinsey, a range of interconnectedemerging technologies have the power tounlock a potential US$50bn in savings andincreased profit. Encompassing fields such asartificial intelligence (AI), blockchain, robotics,sensor technology, machine learning, deeplearning and edge computing, digitalisation isexpected to cut capital expenditure by 20 percent, with operating costs in upstream cut 3-5per cent and 1-3 per cent in downstream. “Digitalisation is an urgent priority for

industry CEOs and business leaders, offering cost savings, operationalimprovements, and safety and environmentalgains that will reach into every corner of thebusiness, but the opportunities come withrisks that must be understood and navigated,”said Jean-Philippe Cossé, vice president –Energy at dmg events. “ADIPEC is responding to this with a new

Digitalisation in Energy zone, supportinginnovation, and helping drive smartinvestments that will be the foundations ofbusiness success in the years ahead.” Spanning both the exhibition halls and the

strategic and technical conferenceprogrammes, the Digitalisation in Energy zonewill include top technology providers and newstart-ups serving the oil and gas sector. Apurpose-built Innovation Theatre will providetech companies with the opportunity to hostexpert talks and take digitalisation out of thetechnology silo and place it at the centre of amuch bigger conversation. The premier meeting place for energy

ministers, global business leaders and C-levelexecutives from the world’s oil and gasgiants, ADIPEC 2018 will see the return ofthe event’s highly regarded strategic andtechnical conferences, while also continuingthe expansion of the exhibition andconference programmes. Conference sessions for the downstream

refining and petrochemicals sector, introducedfor 2017, will return to ensure that ADIPECcovers each link in the oil and gas valuechain. The co-located waterfront Offshore andMarine Exhibition and Conference will add acommercial dive zone, while other returningfeatures include the ADIPEC Awards, whichcelebrate excellence in energy, and YoungADIPEC, a dedicated ‘edutainment’programme designed to encourage studentsto choose a career in energy. New for 2018 will be an Inclusion and

Diversity in Energy conference programme,continuing and expanding on the work of theWomen in Energy conference in previous

years and exploring ways to build a diverseand inclusive oil and gas industry.Hosting more than 100 ministers, CEOs,

and global oil and gas business leaders asspeakers, ADIPEC brings together thecompanies, decision and policy makers thatshape the future of oil and gas supply, for fourdays of focused business, dialogue andknowledge transfer addressing today’s energychallenges and defining tomorrow’shydrocarbon landscape. The technical conference programme,

organised in collaboration with the Society ofPetroleum Engineers (SPE), sets theinternational standard for the exchange ofbest-practice and operational excellence inthe world of energy. Sessions cover upstream,midstream and downstream sectors,including specialised programmes such asoffshore and marine.

For further information see the website atwww.adipec.com.

DESPITE THE UNSTABLE political situation inBasra, Iraq’s production and exports continue togrow, with production hitting 4.65mn bpd inAugust 2018.

The 5th annual CWC Basra MegaprojectsConference - Oil, Gas & Environment will be heldfrom 9-10 October in Istanbul, Turkey chaired bythe EU Ambassador to Baghdad, Ramon Blecau.In a show of support for the rebuilding of Iraq,Ambassador Blecau and industry experts willhighlight the business opportunities available inthe resource-rich South of Iraq with the aim of

driving more investment to develop thecountry’s industrial infrastructure.

The conference takes place under thepatronage of Basra’s Governorate, Council andoil company and looks to find solutions to thechallenges of Basra’s oil and gas megaprojectsand increasing Iraq’s oil and gas production, aswell as highlighting the upcoming infrastructureprojects for gas, water, electricity and environment.All the major operators will be participating indiscussions, including BP, Shell, Basra GasCompany, LUKOIL, Petronas and Chevron.

Basra holds 60 per cent of Iraq’s crude oilreserves and 70 per cent of its gas reserves.There is strong potential to develop the gasindustry to meet the need for gas-fired power. Anumber of blocks are offered for development, andmajor projects underway include the expansion ofthe Basra refinery and a new Basra-Aqaba pipelinewhich will transport crude oil from Kirkuk and Basrato Ceyhan in Turkey via the Mediterranean sea.

For further information see the website atwww.cwcbasraoilgas.com

ADIPEC 2018 is expected to attract more than 110,000 visitors and will feature more than 2,200exhibiting companies

Basra Megaprojects - Oil, Gas & Environment

ADIPEC 2018 throws the spotlight on digitalisation

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NATURAL GAS PROJECTS are expected to receivea significant investment boost over the comingyears, which will enable gas to overtake oil as theworld’s primary energy source in 2026, accordingto DNV GL’s 2018 Energy Transition Outlook.

The outlook predicts global upstream gascapital expenditure to grow from US$960bn in2015 to a peak of US$1.13 trillion in 2025.Upstream gas operating expenditure is set to risefrom US$448bn in 2015 to US$582bn in 2035when operational spending will be at its highest.

While DNV GL’s model predicts global oildemand to peak in 2023, demand for gas willcontinue to rise until 2034. New resources will berequired long after these dates to continuereplacing depleting reserves.

“The energy transition will be made up of manysub-transitions. Our Outlook affirms that theswitch in demand from oil to gas has alreadybegun. Significant levels of investment will beneeded in the coming decades to support thetransition to the least carbon-intensive of thefossil fuels,” said Liv A Hovem, CEO of DNV GL –Oil and Gas.

“Gas will fuel the energy transition in the lead-up to mid-century. It sets a pathway for theincreasing uptake of renewable energy whilesafeguarding the secure supply of affordableenergy that the world will need during the energytransition,” Hovem added.

Rising global demand for gas will impact activityacross the oil and gas value chain, according toDNV GL’s Outlook. Conventional onshore andoffshore gas production is forecast to decline fromaround 2030, while unconventional onshore gas isexpected to rise to a peak in 2040. DNV GLexpects this trend to lead to leaner, more agile gasdevelopments with shorter lifespans.

North East Eurasia (including Russia) and theMiddle East and North Africa will account formost onshore conventional gas production in thelead-up to 2050, while North America willcontinue to dominate unconventional gas

production. In the offshore sector, the MiddleEast and North Africa (MENA) will see the highestannual rate of new gas production capacity fromnow until at least 2050.

Liquefied natural gas capacity will increase asproduction rises. DNV GL expects it to double bythe late 2040s, as the midstream sector connectsshifting sources of gas with changing demandcentres. Seaborne gas trade is forecast to treblefrom North America to China by 2050. Anincrease in trade from Sub-Saharan Africa to the Indian Subcontinent and South East Asia isalso expected.

THE ABU DHABI National Oil Company (ADNOC) has announced majordevelopment plans for Ruwais City, a 6.9 sq km community near the RuwaisIndustrial Complex in Abu Dhabi’s Al Dhafra region.

The project will see the city’s population nearly double, over the next 15years, to more than 50,000 people, as well as the creation of thousands ofnew, specialised, highly skilled jobs in parallel with ADNOC’s investment inits downstream operations.

Dr Sultan Ahmed Al Jaber, the UAE minister of state and CEO of ADNOCGroup, unveiled the new Ruwais city brand identity – Where OpportunityLives – in the presence of many government officials, local dignitaries,ADNOC shareholders and business partners and members of the community.The brand launch event included a VIP tour of Ruwais City, followed bylunch with the visiting delegation and ADNOC employees.

The Ruwais City development plan complements ADNOC’s decision toinvest US$44.92bn to develop the world’s largest integrated refining andpetrochemicals complex in Ruwais. This industrial ecosystem, supported bythe UAE’s stable fiscal, legal and financial system, is designed to generatelong-term sustainable value for investors by providing them with: • Access to a diverse set of competitive materials, utilities and other best-

in-class industrial services• Proximity to growing markets• Best-in-class community infrastructure that ensures an exciting

work-life balanceADNOC is also constructing more than 3,000 new residential units,

bringing the total number of city housing units to more than 10,000, withmore to be built as required. The city’s development will also include anumber of projects focused on lifestyle, recreation and community, includingnew beach facilities, a central park, traditional souq, 18-hole golf course,cricket field, running track and cycling track, as well as the expansion of thepublic transport network, a range of community and civic centres and anumber of health centres.

Ruwais City will be further supported by the expansion of a range ofintegrated government service centres, including Ruwais City’s first “Tamm”Centre. Instead of travelling to Abu Dhabi, residents can now obtain officialgovernment documents by visiting the Tamm Centre, a one-stop-shopoffering a customised suite of services specifically designed to meet theneeds of the community.

Through a combined program of strategic partnerships and investment,ADNOC will increase its range and volume of high-value downstreamproducts, secure better access to growth markets around the world andcreate a manufacturing ecosystem in Ruwais that will significantly stimulatein-country value creation, private sector growth and employment. Thestrategy is expected to add more than 15,000 jobs by 2025 and contributean additional one per cent to GDP per year.

The forecast points to a faster, leaner and cleaner oil and gas industry in the future

ADNOC set to expand downstream city Ruwais

Gas capital expenditure boost to fuel the energy transition: DNV GL

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The initiative is in line with ADNOC’s investment in its downstreamoperations.

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MOHAMMED BARKINDO,SECRETARY-GENERAL of OPEC,has inaugurated Brooge Petroleumand Gas Investment Company’s(BPGIC) Phase II storage terminal inthe emirate of Fujairah.Barkindo visited Fujairah, the

Middle East’s largest commercialstorage hub for oil products, on theoccasion of the 2018 GulfIntelligence Energy Markets Forum,which gathered senior energyindustry executives from across theglobe for a day of discussion anddebate on the theme “How toNavigate the New-Normal of Global Oil & Gas Trade Flows.” The expansion of the BPGIC’s existing Fujairah terminal is set to

introduce storage for crude oil and will have a storage capacity of600,000 cu/m, taking BPGIC’s total capacity to one million cu/m. PhaseII will enable BPGIC to store crude oil through the construction of eightstorage tanks, half of which will have a convertibility feature for fuel oil.“We are very happy to see that there are new investments going

into the oil and gas industry, and we commend BPGIC for its efforts togrow and to positively contribute to the development of the energyindustry,” said Barkindo.

Fujairah storage terminal inaugurated

Mohammed Barkindo, secretary-general of OPEC, has commendedBPGIC for its contribution to thedevelopment of the energy industry

BENTLEY SYSTEMS, A leading global provider of comprehensive softwaresolutions for advancing infrastructure, has announced an infrastructureproject in Oman as finalists in Bentley’s Year in Infrastructure 2018 Awardsprogramme. The annual awards programme honours the work of Bentleysoftware users advancing the design, construction, and operations ofinfrastructure throughout the world. Twelve independent jury panels ofdistinguished industry experts selected the 57 finalists from 420nominations submitted by more than 340 organisations.

Oman Gas Company S.A.O.C.’s Asset Performance Solution forReliability Management project in Al-Khuwair, Muscat, Oman, has beenselected as a finalist in the Going Digital Advancements in Utilities andIndustrial Asset Performance category.

Oman Gas Company transmits and distributes gas to 4.4mn people andmost of the area’s key economic industry facilities. To ensure consistentavailability of its product, the company developed a reliability and integrityprogramme that digitised, automated and compiled all reliability andintegrity data and management tasks into one platform with Bentley’sAssetWise.

Andy Glyde, Middle East regional director for Bentley Systems, said, “Weare pleased to acknowledge and celebrate this project in Oman that isnamed as finalists in Bentley’s Year in Infrastructure 2018 Awardsprogramme. This project is among the 57 selected this year, whichrepresent the most outstanding digital advancements in infrastructure byBentley software users around the world.”

Winners will be announced at an awards ceremony on 18 October inLondon during Bentley’s Year in Infrastructure 2018 Conference.

Oman project finalist for Bentley awards

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KUWAIT INTEGRATED PETROLEUM Industries Company (KIPIC)and Honeywell have signed a Memorandum of Understanding (MoU)to share expertise and promote world-class training and technologyadoption at the Al Zour refining and petrochemicals complex insouthern Kuwait.The MOU calls for the development of a roadmap to enhance

operational excellence at KIPIC. It also seeks to support the nation’sKuwaitization strategy, through the development of modern trainingprogrammes that will equip Kuwaiti engineers with the skills andcapabilities needed to drive the future development of the country’senergy sector.

Under the terms of the MOU, KIPIC and Honeywell are seeking toconsolidate technical and engineering know-how and expertise andwill explore avenues to train young Kuwaiti engineers. The two

companies will alsolook to jointlydevelop newtechnologies andprocesses, andexplore other areasof cooperation toensure KIPIC’sfacilities benefit fromthe latest Honeywelltechnologies andservices.

KIPIC and Honeywell sign MoU

The signing of the MoU

SAUDI ARAMCO IS set to spendmore than half a trillion SaudiRiyals on drilling activites over thenext decade, according to thecompany’s senior VP forUpstream Mohammed Y. AlQahtani. He made theannouncement at the graduationof the first cohort of students atthe Saudi Arabian DrillingAcademy (SADA), which equipsSaudi students with the skills andcapabilities required by the Saudidrilling industry in a bid to boostdrilling capacity and local content.

In August, Saudi Aramcoawarded the first large-scopeintegrated services contract for itsMarjan oilfield – the first of threemajor offshore expansions inSaudi Arabia, and the company’s largest upstream development project thisyear – to BHGE, which will provide drilling services, coiled tubing servicesand drilling fluids engineering services in Marjan.

While in September the company awarded a contract to China HarbourEngineering Arabia for the construction of two drilling islands under thecompany’s Berri Increment Program (BIP), the objective of which is to producean additional 250,000 bpd of Arabian Light crude from the Berri oilfield.

Saudi Aramco to boost drilling expenditure

Mohammed Y. Al Qahtani, SaudiAramco’s senior VP for Upstream

HOUSTON-BASED NATIONAL ENERGY Services Reunited Corp. (NESR), aprovider of integrated energy services, through its subsidiary, National OilTechnology Company, has signed an agreement with Dhahran Techno ValleyCompany (DTVC), a subsidiary of King Fahd University of Petroleum(KFUPM). The agreement calls for the creation of a global centre for thedevelopment of scientific research in Dhahran Techno Valley.

Prof. Dr. Sahel Abduljauwad, acting rector of King Fahd University ofPetroleum and Minerals, and chairman of the Board of Directors of DTVC,stated, "I am very pleased to see this level of investment from NESR topromote scientific research and local content in the energy sector in SaudiArabia. Dhahran Techno Valley brings together the largest number ofnational and international energy companies in one place and is now thelargest of its kind in the world. Techno Valley provides the necessary

infrastructure, services, and the appropriate climate to incubate thedevelopment of new technologies as part of the implementation of theSaudi Vision 2030."

Sherif Foda, CEO and chairman of NESR commented, "We are very excitedto partner with Techno Valley and KFUPM. We strongly believe that with thisinvestment, we are taking an important step to develop fit-for-purposetechniques and technologies for Saudi Arabia as well as the whole region.This is a key milestone for NESR and we plan to also bring our technicalpartners from North America to this centre, which will allow them tocustomise and develop technologies in Saudi Arabia for the local industry.This will also be a great opportunity to provide high-end technicalopportunities for Saudi engineers and researchers and an important vehiclefor partnership between the Saudi academic and industrial sectors."

Agreement signed for centre of scientific research in DTVC

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Kuwait Review

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FOLLOWING THE INTRODUCTION from Luke Harris, overseasevents manager, EIC, Jude Anthony, regional analyst MENA,EIC, gave an overview of major projects in Kuwait. Kuwait isprogressing 10 active upstream projects with a capex of

US$13.8 bn; 16 midstream projects with a capex of 10.7bn; and 12downstream projects with a capex of US$44.5bn. As far as futureprojects go, from 2020-2025 Kuwait is planning two upstream projectswith a capex of US$2.7bn and four midstream projects with capex ofUS$1.8bn. Major current projects include:Northern Fields Development Project (Ratqa and Abdali fields) –US$5.38bn. Development of Rawdatain, Sabriya, Ratqa and Abdalifields which contain more than 35 Tcf of non-associated gas. Firstphase of Ratqa targets production of 60,000 bpd by 2019. The secondphase is expected to target 120,000 b/d by 2022, and a third phase asmuch as 270,000 b/d by 2030. Operator: Kuwait Oil Company (KOC).EPC: Processes Unlimited/Al Rashed Group

The first phase of the Ratqa Lower Fars Heavy Oil is on course tobe completed in March, 2019. Al-Zour LNG Import Terminal – US$3bn. Development of apermanent LNG import terminal to handle 65,000 (T/D) of natural gaswith a storage capacity of 1.8 million cu m of LNG. Includes theconstruction of a regasification system, eight LNG storage tanks with acapacity of 225,500 cu m each, two marine jetties, and berthingfacilities for loading. Due for start-up in 2021. Operator: KIPIC. EPC:Consortium of Hyundai Engineering Company/Hyundai Engineering &Construction Company & Korea Gas Corporation.Al-Zour Refinery – US$17bn. Development of a grassroots refinery toproduce around 225,000 bpd of low-sulphur fuel oil to be used asfeedstock by the Ministry of Electricity & Water for power generation.Refinery will be using 615,000 bpd of crude and 300 MMcf/d of gasfeedstock. The new refinery is expected to replace the aging 20,000 bpdShuaiba refinery. Project is divided into five major parts - two

manufacturing units, utilities and services, and finally storage tanks and apier. Due for start-up in 2022. Operator: KNPC. EPC: Package 1 - MainProcess Units: Consortium of Tecnicas Reunidas/Sinopec EngineeringGroup/Hanwha Engineering & Construction . Package 2 - SecondaryUnits and Package 3 - Offsites and Utiltities: Consortium of FluorCorporation/Hyundai Heavy Industries/Daewoo Engineering &Construction. Package 4 - Construction of Storage Tank Farm, Piping &Underground Works: Consortium of Essar Group/Saipem. Package 5:Marine facilities including subsea pipelines and an export island:Consortium of Hyundai Heavy Industries/Saipem /SK E&C/Essar Group.

Offshore – the new frontierAlan Menezes senior trade adviser, Oil & Gas and Renewables, UKDepartment for International Trade, highlighted the huge potentialoffered by Kuwait as it seeks to expand production, noting that

Kuwait possesses 6.11 per cent ofworld oil reserves, and low lifting costsof US$8.5/bbl.

Menezes also noted the priorityattached to the development of offshoreresources to meet production targets.According to reports, Kuwait has floatedtenders for offshore oil exploration andis looking to offer more concessions thisyear, with contracts due to be signed inthe second half of 2018. Results of thefirst tender for the first exploration roundare awaited, which should result inmany opportunities.

He advised companies to seek legaladvice before signing contracts, toperform due diligence on potentialpartners, and to understand the

Source: EICDataStream

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Capex (US$mn) and number of projects - active projects

A webinar run by the UK’s Energy Industries Council (EIC) highlighted oil, gas andpetrochemical opportunities in Kuwait, as well as providing tips for doing businesssuccessfully with the market.

Huge potential opportunities

in�Kuwait

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Subsidiaries oil Kuwait Petroleum Company (KPC)Inside Kuwait

Kuwait Oil Company (KOC) Upstream oil and gas www.kockw.com

Kuwait Gulf Oil Compnay (KGOC) Manages Kuwait's oil and gas resources in the www.kgoc.com

partitioned zone

Petrochemical Industries Company (PIC) Petrochemicals manufacture www.pic.com.kw

Kuwait National Petroleum Company (KNPC) Oil refining www.knpc.com

Kuwait Integrated Petroleum Industries Integrated refining & petrochemicals, LNG import www.kipic.com.kw

Company (KIPIC)

Kuwait Oil Tanker Company (KOTC) Transport of oil, petroleum products and LPG www.kotc.com.kw

Outside Kuwait

Kuwait Foreign Petroleum Exploration Upstream oil and gas exploration and development www.kufpec.com

Company (KUFPEC)

Kuwait Petroleum International (KPI) Refining and marketing petroleum products www.q8.com

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certification needs of the market, which are tight. Pre-qualification isneeded by all K-companies (KPC and its subsidiaries). Companiesneed to have a regular presence in the market – and a fax machine isa must-have.

Colum Cantillon, project director, WorleyParsons Kuwait, highlightedthe importance of planning and market research. He underlined therole of the major trading families and stressed that Kuwait is arelationship-driven society. Getting on to the approved vendors list withthe K-companies, which has to be done individually for each K-company, can take up to two years and is also necessary if you aresupplying to an EPC contractor. The K-companies have very particularcodes and standards, he added, and while concessions can be made,they should not be taken as a given. A good local partner, patience,and deep pockets are essential requirements for doing business. “Donot expect to turn up and do business. You will not walk away with anorder book full after a two- day business trip. Results can take up totwo years.” Understanding contracts is crucial, he stressed, addingthat liquidated damages are applied on all government contracts.

Gavin Aitken, director for Oil & Gas, Al-Rashed Holdings, commentedthat Kuwait presents great opportunities as it seeks to increaseproduction from current levels of around 2.7mn bpd to more than fourmillion bpd, which will require more drilling. KPC’s published capex (withinKuwait) through to 2023 is KD52.071bn (around US$172bn). Tenderswere floated last year for 85 new rigs and orders have started to beplaced – around 25 / 30 new rig orders / LOI’s are estimated to havebeen issued in the past two months. Offshore drilling IPM tenders areunder evaluation now. The new Al-Zour refinery, existing refinery upgrades(CFP), new oil gathering centres/ EPFs and flowlines are all currentlyunder construction. A gas treatment plant and further gathering centresare all to be tendered in coming months, and a major petrochemical plantis in the pipeline. Aitken noted that with the move to develop heavy oil,the cost of extraction and treatment is increasing, driving the need formore drilling, drilling services, processing and treatment.

“Kuwait is complicated, challenging, frustrating, and needs patienceand perseverance. Do your research, visit, visit and visit again,” headvised. Pre-qualification with the K-companies is best done with thesupport of a local sponsor. “You must have a local partner or sponsorto do business in Kuwait,” he added. “Research and select your localsponsor very carefully.”n

The EIC is taking a trade delegation to Kuwait from 3-6 December2018. For further information seehttps://www.the-eic.com/Events/OverseasDelegations/Kuwait

Kuwait Review

12 oilreview.me Issue 6 2018

Kuwait possesses 6.11 per cent ofworld oil reserves, and low lifting costs of$US8.5/bbl”

Source: EICDataStream

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14 oilreview.me Issue 6 2018

GLOBALDATA IN ITS report, LNGIndustry Outlook in Middle East andAfrica to 2022 stated that Kuwaitwill lead the Middle East and Africa

with total regasification capacity additions of1,071 bcf. The country’s regasificationcapacity will increase from 264.8 bcf in 2017to 1,335.8 bcf in 2022 at an average annualgrowth of 32.4 per cent. The country isexpected to spend approximately US$2.9bnon the development of regasification terminalsduring the outlook period.

Kuwait continues to lead the way in theregion by being the first LNG importer toinvest in a land-based LNG import terminal.

The 22 mtpa facility, for which constructionhas begun at Al-Zour industrial area, with KPCsubsidiary KIPIC as operator, is scheduled tocome online in 2021.

Cedigaz’s latest report examines the risksand opportunities of Kuwait’s LNG strategy.

Despite Kuwait’s significant gas reserves,LNG imports rose more than six-fold between2009 and 2017, amid a growing focus onnatural gas in the government’s energy policy.In addition to bridging the supply gap withdomestic gas production, the decision toinvest in one of the world’s largest LNG importfacilities confirms plans to shift the structure ofthe country’s energy makeup. Even if oil

continues to dominate the primary energymix, the growth of LNG imports is allowinggas to take a greater proportion.

“This comes at a time when reducedhydrocarbon revenue since the oil pricecollapse in mid-2014 has been exertinggreater budgetary pressure. This is alsoplacing more emphasis on economic reforms,starting with the phase-out of energysubsidies in order to reduce budget deficitand rein in per capita energy demand,” saidFatima Sadouki – independent energyspecialist, the author of the Cedigaz report.

Adding to economic challenges, otherrisks such as the growing climate change

The new LNG terminal currently under construction willhave a capacity of approximately 22mn tonnes of

natural gas a year.

The OPEC member is the first country in the Middle East to invest in aland-based LNG import terminal.

LNG set to energise

Kuwait’s�economy

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Issue 6 2018 oilreview.me 15

agenda and uncertainty over future OPECpolicy, are forcing authorities to adjust theirstrategy to maximise oil revenue in themedium term. With around half of Kuwait’scurrent power capacity consisting of steamturbines mainly burning oil products, there ispotential for gas to play a greater part inefforts to push high-value oil products toexport markets. The transformation ofKuwait’s downstream sector is another drivingfactor in the security of fuel supply strategy forpower plants.

Soorya Tejomoortula, oil and gas analystat GlobalData, explains, “Kuwait is increasingits LNG regasification capacity to meet itsgrowing domestic power demand. Thecountry is grappling with chronic electricityshortages, which are threatening itseconomic development. The new LNGterminal will also generate businessopportunities to the local companies and helpin promoting industrial growth in the country.”

In December 2017, Kuwait signed a salespurchasing agreement with ShellInternational Trading Middle East Ltd. thatwill start in 2020, KPC and Shell said in anemailed statement. Shell has been supplyingKuwait with the super-cooled fuel since 2010

but did not say how much gas is coveredunder the new contract. While KPC isworking to boost local natural gasproduction, Kuwait has a “pressingrequirement” to secure natural gas suppliesin the meantime, they said.

LNG could help meet Kuwait’s domesticdemand for power to run air conditionersduring hot summer months and cut theamount of crude oil burned instead ofexported for profit. The contract will covertwo to three million metric tonnes of LNG ayear, priced at 11 per cent below Brentbenchmark, according to an unnamedBloomberg source.

Kuwait wants cleaner burning energysources such as natural gas to reduceemissions and improve air quality, accordingto the Shell and KPC statement.

The new LNG import terminal at Al-Zour,with an estimated capex of US$3.3bn, willbe the top planned regasification terminal inthe Middle East and Africa region in terms ofregasification capacity, according toGlobalData. The project includes theconstruction of a re-gasification facility,storage tanks and marine facilities. KIPICplans to borrow up to US$2.6bn from local

and foreign banks and export credit agenciesfor the project and it is being built byHyundai Engineering, Hyundai Engineering& Construction Company and Korea Gas Corporation.

The US$2.6bn international debt facility,with a maturity of around 15 years, iscoordinated by four banks, and will partly bebacked by the Export-Import Bank of Korea(Kexim) and Korea Trade InsuranceCorporation (K-Sure).

The local loan will be worth up toUS$800mn, with Islamic and conventionaltranches, one source said. Kuwait FinanceHouse is leading the Islamic tranche andNational Bank of Kuwait the conventionalone, with Gulf Bank and Commercial Bank ofKuwait also involved.

The LNG supplies from the facility willfeed the power plants in the nation, enablingthem to generate enough power to meetelectricity demand during peak times.

With the growing availability of globalLNG supplies and expectations of affordableprices in coming years, along with theboosting of Kuwait’s LNG import facilities,the cooled fuel is becoming a key element inKuwait’s energy policy. n

LNG

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THE REPORT, ENTITLED IMO 2020 on MENA: Impacts Variedanalyses the impact on the Gulf’s oil dynamics of new fuel oilregulations for the shipping industry set by the InternationalMaritime Organisation (IMO).

From 2020, ship-owners will have to comply with a new 0.5 percent cap on the amount of sulphur in marine fuel, compared with theexisting limit of 3.5 per cent. The immediate impact will be onconsumers of High Sulphur Fuel Oil (HSFO), namely shippers, but alsoon refineries that produce large quantities of HSFO.

Ship-owners will face several options: continue to use non-compliant fuel oil and install scrubbers that clean out exhaust fumesincluding sulphur content, burn LNG or methanol, or use compliantfuels such as Low Sulphur Fuel Oil (LSFO) and marine gasoil.However, it is unclear which of these options will be the most costeffective, making it difficult for ship-owners to take a firm decision.

In the case of burning gas, the availability of these fuels is restrictedto northern Europe, whilst LNG bunkering has not developed globallyand the lack of infrastructure will restrict LNG-based power to shipsmoving on standard and short haul routes. Shippers considering aswitch to LSFO will not only have to factor in the higher cost of thefuel, but supply restrictions in the short to medium term will createuncertainty around its availability in bunkering ports around the world.

Even in the event that the global market is able to producesufficient quantities of the fuel, there is no guarantee that machineryon ships designed to run on high viscosity/HSFO can switch to lowviscosity/LSFO. If they can’t, installing scrubbers in ships is anotheroption; but the cost of retro-fitting the necessary equipment may beprohibitive, and is only a short term solution, as it may not be able tomeet more stringent regulations that may be introduced in the future.

The shipping industry’s choice of option will directly impact thesupply/demand dynamics of the Gulf’s oil industry, and the results willbe varied. In 2017, demand for fuel oil averaged 7.5mn bpd of which3.5mn bpd was HSFO, used mainly in bunkering. Going forward, theIMO regulations will reduce demand for HSFO whilst demand for both

LSFO and marine diesel will increase. Other things being equal, thedifferential between sour-sweet crudes, HSFO-LSFO and distillate-HSFO could widen. In the short term, the ability of the global refiningindustry to produce an estimated 8mn bpd of compliant bunker fuelfor the world’s ships by the IMO target of 2020 will be tested. Dependingon assumptions about scrubber uptake, the resulting boost to demandfor marine diesel alone is expected to be around 2.1-2.5mn bpd.

GCC in a good positionThe GCC refining sector has seen tremendous growth over the pastfew years, driven by significant investments in complex refineries duringa period of high oil prices. The completion of Yasref and Satorp inSaudi Arabia and the expansion of the Ruwais facility in the UAE addedapproximately 1.2mn bpd of new and cleaner refining capacity. Builtwith an eye on supplying the growing Asian market, these newrefineries have contributed to turning the GCC countries into a netexporter of refined products in 2016, particularly in the diesel segment.Over the next five years, new capacity will be dominated by the twomajor additions in Saudi Arabia and Kuwait, as well as clean fuelprojects in the region. They will adhere to stringent Europeanrequirements for cleaner fuels, and will thus provide GCC refineries withan edge in a more competitive market.In the likely scenario that there will be more reliance on LSFO andmarine diesel, the downstream sector will create winners and losers,with simple refineries at most risk. Refineries that failed to invest incokers and other residue destroying equipment needed to containHSFO production will find it difficult to market the fuel. On the otherhand, more complex refineries will benefit from higher margins. In thehighly competitive refining market, this could pave the way for furtherclosures. In particular, Saudi Arabia could benefit significantly if shipperschoose to switch to LSFO or marine diesel, as it will be able to meetthis demand and increase exports. On the other hand, if scrubbing is

The GCC refining sector hasseen tremendous growth over

the past few years

A new report from the Arab Petroleum Investments Corporation (APICORP) assesses theimpact of the new IMO fuel oil regulations on shippers and MENA oil producers.

IMO 2020 -

winners�and�losers

The shipping industry’s choice ofoption will directly impact thesupply/demand dynamics of the Gulf’s oil industry”

Analysis

16 oilreview.me Issue 6 2018

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GCC refining capacity (kb/d)

2017 capacity 2018-2022 additions

Bahrain 267 100

Oman 311 230

Qatar 292 0

KSA 2,907 400

UAE 1,124 70

Kuwait 936 615Sources: APICORP Research

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the preferred route, there is enough demand from the country’s powersector to absorb its existing HSFO production, and at a reduced cost.

Geared to producing more diesel, the GCC will be in a goodposition to adjust to the IMO rules, with ample opportunities for thelikes of Saudi Arabia and Kuwait to utilise excess HSFO in theirrespective power sectors. The GCC as a whole has embarked onmany initiatives across the oil value chain that have helped them adaptto global developments. Some of these investments, such as additionalrefining capacity, were built with an eye to supplying a growth in Asiandemand for diesel driven by China. But the decision taken by the Chinesegovernment to rebalance the economy and shift away from manufacturingand more towards consumer goods and services dampened theprospects for diesel exports. The timely changes in IMO regulationshave provided the GCC with an alternative market for diesel exports.

Gloomy picture for Iraq and IranFor Iraq and Iran, on the other hand, the picture is gloomy. Alreadystruggling to meet domestic demand, the damage to Iraq’s Beiji refinerydrastically reduced the country’s capacity. In addition, the refiningsector as a whole is not as sophisticated as those in the GCC, andtheir ability to produce low sulphur fuel is questionable. Worse, withlower demand for HSFO, Iraq will struggle to get rid of the fuel, whilstthe domestic power sector is not large enough to absorb higherquantities of HSFO, especially given that the majority of new powergeneration will be gas-fired plants.

As for Iran, whilst fuel oil consumption has been increasing in theregion driven predominantly by Saudi Arabia, and demand in the regionmore generally has been relatively stable, only Iran is exhibiting a fall infuel oil consumption, declining from 382,000 bpd in 2014 to 214,000bpd in 2017. This means that it will struggle to find a market for itsexcess HFSO, a situation made worse by the re-imposition of USsanctions; whilst its refining sector is not sufficiently sophisticated toproduce LFSO, nor is there sufficient demand from the power sector.

Mustafa Ansari, senior economist at APICORP, commented, “TheIMO regulations will create winners and losers across the industry.Uncertainty around the availability of LSFO, HSFO prices and scrubbingtechnology makes it difficult for ship-owners to take a decision on what

outlet to adopt for IMO compliance. What is more clear is that demandfor HSFO is likely to decline, whilst demand for compliant fuels such asmarine diesel and LSFO will increase. This means that refineries thathave the means to reduce fuel oil production, or that are geared toproducing middle-distillates, such as those across the GCC, will benefitfrom the additional demand. By contrast, countries without thiscapability, and with fewer alternative sources of demand, such as Iranand Iraq, will not be able to absorb excess supplies of fuel oil.” nFor the full article see www.apicorp-arabia.com

The GCC will be in a good positionto adjust to the IMO rules”

Net supply of fuel oil (kb/d)

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Issue 6 2018 oilreview.me 17

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Analysis

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REFINERS TODAY HAVE a number ofissues to address, such as marketneeds and opportunities for gasolineand/or diesel, power generation,

coke production and petroleum gas utilisation,use of unconverted materials, dealing withbudget constraints, and best ways ofintegration within an existing refinery(revamping and modernisation).

Refiners are looking for options toachieve production flexibility between dieseland gasoline maximisation – diesel andgasoline demand seem to be growing atalmost equal rates – thus finding a balance iskey to success.

A need for flexibility means that now, morethan ever, operational optimisation will be keyto achieving sustainable margins. Operatorsmust fully understand the local and globalmarket changes and select the investmentstrategy to best meet their goals andobjectives, looking at how best to optimisetheir existing facilities.

To improve margins, refining companieshave a choice of two paths that can helpincrease yield of light petroleum products: (1)primary distillation capacity addition or (2)deep conversion units to process heaviercrudes and residues.

Of late, many companies have beenlooking into deep conversion processes, asthey look to address the issues of efficientfeed utilisation, product optimisation – a largervariety of products than a simplegasoline/diesel/fuel oil process scheme andrefinery complexity increase.

A deep conversion process can beintroduced to a plant, either through theconstruction of a new complex, or through amodernisation project, including unit revampsand upgrades. Each option has its ownadvantages: a new grassroots constructionallows more flexibility of process configurationand parameters, but at the same timerequires certain infrastructure, a new site andusually higher investments (CAPEX); whilemodernisation is the optimal solution when aunit is built in an operating plant where

options for new construction are limited.Modernisation can be done in order toimprove capacity of certain unit/s or toconvert it from one process to another to bestmeet market demand.

In each case there are a number of waysto achieve high level of process integrationwithin the plant; an essential step is to definethe most suitable technology option.

Kuwait’s ambitous projectsKuwait is investing in a US$30bn + plan tobecome the region’s clean fuels leader. Thisfocuses on modernising and integrating thecountry’s Mina Abdullah and Mina Al-Ahmadirefineries to meet future diversified marketrequirements while maintaining high safety

standards through the Clean Fuels Project(CFP), as well as building the region’s largestrefinery, the Al-Zour plant, with the objectiveto produce one per cent sulphur LFSO (1ststage) and provide feedstock for furtherconversion. Clean fuels production isimportant for the country both in terms ofenvironmental protection policy andprofitability improvement.

Once completed, the reconfigured andintegrated Mina Abdullah and Mina Al-Ahmadirefineries will decrease the sulphur in gasolineproduction from 500 ppm to less than 10ppm. Benzene and aromatics concentrationswill also decrease. Bunker fuel oil sulphurcontent will decrease from 4.5 ppm to 1 ppm,and maximum sulphur content of full-rangenaphtha will drop from 700 ppm to 500 ppm.With the construction of Al-Zour and theupgrading and integration of its existingdomestic refineries, Kuwait is set to becomethe largest producer of clean fuels in theMiddle East by 2019.

These extremely large projects requirethorough re-evaluation at each stage, strongcontrol over main project objectives, well-organised coordination between numerous

Refiners today have a number ofissues and challenges to address

Colin Chapman (president) and Ekaterina Kalinenko (project director) of Euro PetroleumConsultants [EPC] discuss how operational optimisation is being pursued in some ofKuwait’s major refining and petrochemicals projects.

Pursuing operational excellence

in�Kuwait

Now, more thanever, operationaloptimisation will be key toachieving sustainablemargins”

Refining & Petrochemicals

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parties involved, and experienced teams tomanage the projects. Localisation, the use ofbest industry practices, and theimplementation of up-to-date technologiesplay an important role.

KNPC have increased the capacity of MinaAbdullah (MAB) and Mina Al-Ahmadi (MAA)refineries to a combined total of 800,000 bpd(MAA 346,000 bpd, MAB 454,000 bpd),connecting them as an integrated refiningcomplex.

Kuwait Integrated Petroleum Industries Co.(KIPIC), a KPC Subsidiary, is building thegrassroots refinery at Al Zour, which will beable to process 615,000 BPSD of light Kuwaitcrude oil or 535,000 BPSD of heavy mixKuwait crude oil.

Kuwait Petroleum Corporaton (KPC) hasawarded US$11.5bn worth of EPC contractsfor the Al-Zour refinery project, which istargeted for completion in late 2018 or early2019. Al-Zour will produce around 250,000bpd of low-sulphur fuel to feed Kuwait’spower stations and desalination plants, and agrowing petrochemical industry.

The CFP investment cost for KNPC isestimated to be around US$16.9bn, and withthe new refinery, the whole complex withconnected utilities and facilities such as LNGtank farms and terminals, gas trains etc willrequire around US$40bn by 2020.

The value of ongoing contracts (signed andawarded by 2018) – is more than US$2.6bn,of which 19 per cent has been accounted forby local companies, a positive sign of thetrend to use in-country resources and talent.

KNPC became convinced of the benefitsof model-based versus factor-basedestimating after seeing estimate variancesdrop from 40 to 15 per cent. KNPC nowrequires all interested EPCs to supply bidsusing a special Capital Cost Estimator.

After reviewing 30 plus refining options andschemes for deep conversion, KNPC chose acombination of ARDS (atmospheric residuedesulphurisation)/coking/HCR conversion forbottom of the barrel upgrading.

KNPC has also focused on improvingbusiness performance. In these projects,revamps were given priority: debottleneckingof CDU, coking, HCR units; optimisation ofAR FO production – major revamp of ARDSunits at MAB refinery (+28 per cent capacity,+36 per cent catalyst lifecycle, higher distillateyield, LSFO quality).

Al Zour will have the world’s largest ARDScomplex, and several optimisation featureswere used in order to increase efficiency – i.e,heat integrated complex, maximised hydrogen

recovery, efficient sulphur and condensaterecovery, zero liquid discharge from wastewatertreatment facilities, zero flaring design for flaregas recovery system, etc. There were several challenges to beaddressed: • safety – very high pressure; • frequent catalyst changeover every two

months for each train (catalyst lifecycle –one-year-period for heavy crude);

• complex catalyst activation and handling;• highly corrosive and fouling service –

inspection and monitoring needed;• crude desalting and sulphur recovery –

unstable salt and sulphur content infeedstock;

• compatibility of crudes.

Pursuing operational excellenceAnother case of operational optimisation to behighlighted at these large facilities in Kuwait isthe Operational Excellence programmeimplemented by Kuwait’s PetrochemicalIndustries Company (PIC) which, in addition tomanufacturing and marketing fertilisers, olefinsand aromatics in Kuwait, participates inmultiple joint ventures that produce and marketchemicals both locally and internationally.

At the initial stage of the programmedevelopment, PIC’s concept of operationalimprovements involved formulation of vision,strategy and objectives. The companydecided to develop the programme on thebasis of three standard principles: LeanProduction (Lean), Quality Management (SixSigma) and Project Management (PM).

Among the top priorities were HRperformance, focus on the consumer’sindividual needs and the process approachunder the slogan “Better, Faster, Cheaper!”

The operational performance metricsincluded criteria such as expenditure level,production cycle time and the rejection rate.Improvements were introduced by using astandard procedure aimed at building a

knowledge management system as thebackbone for further optimisation.

A critical factor was effective employeeengagement, i.e. explicit goal-setting andadequate incentives, effective interaction andcommunication, and a consistent process ofproject evaluation and selection. Such aprocess needs to be well established,continuous and consider borrowing needs.

According to PIC, thanks to continuousleadership training of top managers, annualawareness sessions and quarterly training foridentifying improvement possibilities thecompany saved US$173mn, successfullycompleted 524 projects, obtained 84 certifiedproject managers (leaders), acquired newcompetencies and revised the corporateculture to conform to the best global practices.

To summarise, in order to sustain andincrease margins refiners need to increaseoutput quantity and quality with deepconversion and residue upgrading, choosingconfiguration and technology according to anin-depth study to evaluate which scheme bestfits market and budget requirements.

It is also very important to select an optimalproject implementation strategy, and take intoaccount multi-technology options that providea number of alternatives to a single processunit approach. These recommendations arenot a ‘cure-all’ solution, but thorough analysisof best practices and opportunities within thecompany should form the basis of prospectsand plans for the future. n

EPC is a leading independent consultingcompany in the oil, gas and petrochemicalsectors, as well as a producer of specialisedannual international conferences and trainingseminars focusing on market trends,technological advances and businessstrategies for the petroleum industry. EPC hasoffices in Dubai, London, Moscow, Sofia andKuala Lumpur. For more information,please visit www.europetro.com

It is important to select anoptimal project

implementation strategy

KNPC has alsofocused on improvingbusiness performance”

Refining & Petrochemicals

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THE GULF DOWNTREAM Association(GDA) is a non-profit organisationaiming to bring Downstream playerstogether to further develop the

industry and draw benefits from knowledgesharing and best practices. Its foundingmembers are Saudi Aramco, KuwaitPetroleum International (KPI), BahrainPetroleum Company (BAPCO), KuwaitNational Petroleum Company (KNPC) andAbu Dhabi National Oil Company (ADNOC).

Held under the theme 'Towards acompetitive Downstream through innovation,collaboration and technology', the GDAConference is the leading Middle Eaststrategic platform for Downstreamprofessionals to address businesschallenges, share best practices and unlockpotential opportunities through collaborationand partnerships.

The conference, which is expected toattract more than 4,500 participants, willcover a wide range of topics under the broadthemes of integration; digitalisation; energy;

innovation and technology; andimprovements. The future of Fuels, Future ofEnergy, Human Capital Efficiency and Futureof Margins are just some of the topics whichwill be addressed by global industry leadersand specialists at the panel sessions. Theaccompanying exhibition will featureinnovative products and services related tothe downstream industry.

A wide range of interests will berepresented, from refining and petrochemicalcompanies, to storage and distributioncompanies, solutions providers, contractors,consultants, transportation companies andenergy end-users, academia, governmentagencies and financial institutions.

Co-located with the GDA Conference isthe Leadership Excellence for WomenAwards and Symposium on 25 October,which will explore strategies to promotethe advancement of women in theDownstream industry. n

www.�gdaconference.org.Audah Al Ahmadi, secretary general, GDA

The first Gulf Downstream Association (GDA) International Downstream Conference &Exhibition (GDA Conference 2018) takes place from 23-25 October 2018 at the BahrainInternational Exhibition Centre.

Advancing the Gulf’s

downstream�industry

GDA Conference 2018

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Striving towards excellence, this forum aims at engagingregional and international stakeholders across business,academia and technology providers to capitalise oninvestment, innovation and growth.”Audah Al Ahmadi, secretary general, GDA

Critical issues will be highlighted and innovative solutionsshared. Professionals will be able to broaden their expertisenetwork and capitalise on each other’s strengths. Youngengineers will be inspired to join the industry throughpersonal interactions with the senior management. The eventwill pave the way for many significant initiatives for thefuture growth of the industry.”

Raj Jhajharia, technical manager, GDA

GDA brings the expertise from the major regionaldownstream industry companies together to shareexperience, strategies, ideas and to inspire each other.”

Hadla S. AlFedaghi, engineer networks and security, IT,Kuwait Integrated Petroleum Industries Company (KIPIC)

All relevant and important stakeholders involved in thefuture advancement of the Gulf’s downstream industry willbe present to share their experiences, technologies andfuture insights, which will benefit all participating companiesand parties”

Søren Mikkelsen, sales liaison officer, Haldor Topsoe A/S

My hopes from participating are to be exposed todifferent experiences and meet subject matter experts (SMEs)to gain technical knowledge.”

Ahmed Ismail, defect elimination engineer, SASREF

My hope is to create a momentum to boost collaborationwithin the GDA and with international oil and gas companiesto guarantee the success in the next steps in developingcapabilities; research and development; and technologiesand innovation.”

Khalifa Al Qallaf, joint venture management manager, Q8 –Kuwait Petroleum International Ltd

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Participants: Ahmad A Almulaifi, manager ITGroup, Kuwait Integrated Petroleum IndustriesCompany (KIPIC) (Speaker); Hadla SAlFedaghi, Engineer Networks and Security,KIPIC (Speaker); Khalifa Al Qallaf, joint venturemanagement manager, Q8 – Kuwait PetroleumInternational Ltd (Technical Committee); DrPratap Nair, president and CEO, Ingenero Inc(Speaker); Raj Jhajharia, technical manager,Gulf Downstream Association (GDA) (TechnicalCommittee); Rajesh Sivadasan, principalhydroprocessing technology specialist,Honeywell UOP (Speaker); Søren Mikkelsen,sales liaison officer, Haldor Topsoe A/S(Speaker); Ahmed Ismail, defect eliminationengineer, SASREF (Speaker); Iain Mackay,COO Petrotechnics (Speaker).

What are the main drivers affecting thedevelopment and expansion of the Gulf’sdownstream sector, and the biggestchallenges the sector faces?Søren Mikkelsen: The main challenge forrefineries is how to deal with The InternationalMaritime Organization’s (IMO)’s implementation

of the Maritime Pollution (MARPOL) Annex VI,whereby from January 2020 ships are requiredto use bunker fuel oil with a sulfur content ofno more than 0.5 wt per cent.

It is my strong belief that the stricterproduct specification requirements intransportation fuels and fuel oils in general willdrive the development of the refining sector inthe Middle East. The export of fuel oils fromrefineries will gradually diminish and refinerieswill integrate with petrochemical plants toconvert fuels oils to petrochemicals.

Khalifa Al Qallaf: Factors include the localconsumption and international demand forclean fuels; the integration of refineries with

petrochemicals for new grassroots projectsand conversion of existing facilities formaximum integration; and investing in R&D tomove with the global direction to maximiseour value proposition.

Challenges are the growth of renewableenergy; environmental restrictions on fuelemissions, and the need for a well-established retention system, since we’relosing the oil sector’s SMEs (subject matterexperts) after retirement. We need to workhard on building human resources in thedownstream sector and build a BusinessContinuity Management System (BCMS) toprepare the Gulf for global changes, using allthe available expertise in the Gulf through theGDA, as the GCC will be always be a globalexporter.

Raj Jhajharia: I see challenges as disruptionfrom technology (Electric Vehicles, ICEefficiency, autonomous car pooling;) IMO2020 and Euro 5 diesel specifications; ageingassets; loss of expertise through retirement;feedstock price uncertainty; and lack ofrefining flexibility in feed and products.

New restrictions on thesulphur content of fuel

oil for ships are achallenge for the

downstream industry

Challenges and opportunities for the

downstream�industry

We need to workhard on building humanresources in thedownstream sector”

GDA Conference 2018

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Ahead of the GDA International Downstream Conference & Exhibition, speakers and GDATechnical Committee members share their thoughts on some of key themes and issuesaffecting the industry.

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Rajesh Sivadasan: With rising demand, pricevolatility due to the geopolitical situation andan ageing workforce, the downstreamindustry in the region faces three majorchallenges: reducing costs, optimisingperformance of existing assets and recruiting,retaining and developing the most diverserange of talent available.

Drilling and producing crude oil atcompetitive rates and then refining it to valueadded products at a lower cost to staycompetitive in the market is one of the majorchallenges. NOCs in the region continue toface a dilemma of reducing their dependenceon expatriates in the wake of a shortage inskilled and qualified nationals. Despite being ahighly automated industry, human expertiseremains critical with jobs requiring a widearray of skills ranging from highly technical tooperational. Acquiring expertise in these areasrequires years of training and experience.Recruiting, retaining and developing a juniortalent pool is a challenge.

How important are collaboration andpartnership to the future development ofthe industry?Raj Jhajharia: Collaboration is the key forsuccess in the future. The industry will benefithugely from partnering with technology andstart-up companies who can bring innovativeways of reducing cost and increasingmargins. Partners should capitalise on eachother’s strengths rather than competing andgoing outside their core business.

Rajesh Sivadasan: In a challengingenvironment, no one player is able to succeedon its own. As business grows into newmarkets, collaboration is a necessity toenhance competitiveness and further enablethe expansion and strategic integration ofglobal business. NOCs in the region of lateare collaborating increasingly with a range ofpartners, bringing together crude supply,resources, technologies, experience, andexpertise of companies with an establishedcommercial presence around the world. Themost recent such downstream strategy wasthe JV between Saudi Aramco, ADNOC and aconsortium of Indian national oil companies tojointly build, own and operate a refinerycomplex, whereby both NOCs had a securedofftake of their crude, as well as strengtheningtheir access in one of the world’s largestand fastest growing refining andpetrochemical markets.

Iain Mackay: The Middle East oil and gasindustry is consistently at the cutting edge ofinnovation. We work closely with the leadingregional NOCs and we see evidence of thisevery day. However, collaboration andpartnership with international companies is vitalto help expand these capabilities and offer a

new perspective on the operationalenvironment. The international supply chain canoffer a unique and holistic perspective on globalbest practice and help leverage these learningsinto practical outputs for the region’s NOCs.They already have great internal capabilities andare investing a significant amount of money inthis area, but they are under-exploiting theexternal possibilities which can make it easier todiscover new ideas and solutions.

What impact is digitalisation having onthe region’s downstream industry, andhow do you think it can develop in the future?Ahmad A. Almulaifi: Technology or digitaltransformation is the main player nowadays tomake organisations competitive and agile. Themain benefit of digitalisation is to optimisebusiness processes, increasing profits andreducing maintenance costs.

Hadla AlFedaghi: Digital transformationthrough business-driven digitalisation is themain driver affecting the development of thedownstream sector. Effective use of digitaltechnologies, especially AI (artificialintelligence), deep learning and IIOT has manybenefits including the enhancement ofoperations and maintenance efficiency,establishment of smart refineries,enhancement of safety and reduced costs.

Many companies in the region arediscovering and in the process of adoptingmature business-driven technologies. It is alsoimportant to experiment and analyseemerging technologies such as blockcharin inoil and gas, since these are the technologiesof the tuture.

Khalifa Al Qallaf: Today digitalisation in oiland gas industries is the survival kit as it willspeed up decision-making, increase plantsafety and optimise the processes. Thequestion is, can the Gulf countries be in theposition of digital world leaders? This issomething we need to focus on. Do we planto be a developer, or just a user?

Dr Pratap Nair: The downstream industryacross the globe is only now beginning toleverage digital technologies such as theDigital Twin, IIoT, AI, Big Data Analytics, toname a few. Given the relatively newer assetsand manufacturing technologies in the region,adopting digitalisation will help retain theadvantage with respect to the olderdownstream manufacturing regions aroundthe world. The downstream industry and oilsector at large, which typically face challengeslike volatile market prices and various otherfactors, could benefit strongly fromimplementing a robust digital transformationprogramme, which can help with a nimblerand timely response to these disruptivechanges. The downstream industry in theregion is showing interest in digitalisation. Thekey will be to change the current ways

Digitalisation is set to have a huge impacton the downstream industry

Digitalisation isgoing to take the industryby storm”

GDA Conference 2018

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business processes are managed,along with the implementation of digitaltechnologies, to be able to utilise these technologies and realiseimproved reliability and efficiency ofexisting assets.

Raj Jhajharia: Digitalisation is going totake the industry by storm. Mostmanual-intensive jobs will beautomated, systems and robots willreplace humans to undertakehazardous jobs. Big data analysis andintelligence will provide accurate livestatus updates and precise failurepredictions. People will have to upgradetheir skills continuously to adoptfast- changing technology. It will also begreatly exposed to cyber-threats.Tougher laws, robust security andgreater compliance will be required.

Ian Mackay: To date, the impact ofdigitalisation in terms of industry 4.0,the IIoT and cloud computing hasbeen minimal, but the potential ishuge. In the latest Operational RiskSurvey by Verdantix, 73 per cent ofrespondents identified digitaltechnology as essential or valuable foroperational risk management with operationalexcellence programmes being identified asthe main driver for implementation ofoperational risk software. Digitalisation canempower organisations. Take one of ourclients, a leading Middle East oil and gasoperator with a production capacity of over250,000 BOE per day. We worked with themon their digital journey and they are nowbenefitting from US$6,500,000 in annualfrontline efficiency savings; a 75 per centreduction in crew wait time; a 50 per centreduction in supervisor wait time and a 47per cent reduction in annual downtime. Thisequates to an 8:1 return on digitalinvestment.

To really grasp the opportunity ofdigitalisation, there needs to be a sustainedleveraging of everything new technology has tooffer. Each oil and gas company in the MiddleEast region is hugely innovative and each onehas their own set of goals and uniqueattributes which differentiates them from eachother and from the rest of the world.

It’s important for organisations to look forthe partner which best suits their businessneeds. Digitalisation done right is an ongoingprocess that changes the way organisationsoperate. It’s about closing the loop betweenvarious departments, business processes,systems and silos of data within anorganisation. It’s about differentiation andfundamentally transforming end-to-endbusiness processes empowered by technologyto produce positive business outcomes.

Rajesh Srivadasan: The refinery of the futureneeds the flexibility and resources to produce

a range of fuels, petrochemical compoundsand other products. In addition, refineries willbecome more aware of energy efficiency. As aresult, facilities will become far more complexand need close monitoring. As much asinformation technology is relevant in otherindustrial fields, it is essential in the oil andgas industry. The ‘Internet of Things’ (IoT) isdriving the rapid pace of digital adoptionacross multiple industries, and the oil and gasindustry is beginning a transformation of itsown. Real-time data analytics, the IoT,automation, artificial intelligence and agilemethodology are being used more and moretowards data-driven solutions to develop asmart, connected refinery to boostperformance, reduce downtime, enhanceefficiency and reduce costs.

What role can international companiesplay in the region’s downstreamdevelopment, and in helping to expandcapabilities?Dr Pratap Nair: The requirement to helpexpand capabilities in the downstreamcannot not be met by existing local companyexpertise alone. Collaborating withinternational consultants and service

providers having experience withdigitalisation applications for this industry,can help the region’s downstream sectorspeed up the development and assimilationof these technologies and work processes toimprove the reliability and efficiency ofutilisation of the already built up assets.Such collaboration is not a new concept forthe region, given that historically,international companies have played acontributing role in the development of theregion’s downstream assets.

Ahmad A. Almulaifi: International companiescan assist a lot by helping the region’sdownstream to adapt the digitalisation culture,as the main challenge for regional companiesis to change to new ways of doing day-to-daybusiness.

Khalifa Al Qallaf: This is both an importantand difficult question. The availabletechnology providers today are the only optionwe have to move on with our plans. Do weplan to make and buy license agreements, orto establish medium to long-term partnershipmodels to serve technology and researchdevelopments? In my opinion the partnershipmodel is needed to address future technologytransfer and the patent process for researchand development plans.

Ahmed Ismail: In my opinion internationalcompanies can help to promote downstreamdevelopment in the region as they have theknowledge, competence and experience toimprove downstream facilities. I would not sayrely on them completely; however, knowledgesharing and cross-fertilisation will enhance theregion’s experience in the drive for excellence. n

Partnership and collaboration can help to enhance competitiveness

Knowledge sharingand cross-fertilisation willenhance the region’sexperience in the drive forexcellence”

GDA Conference 2018

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32 oilreview.me Issue 6 2018

BAUER KOMPRESSOREN IS proud to introducethe newly developed nitrogen generator SNG 4Swhich supports critical applications on the rig.Blow Out Preventer (BOP), Blanketing and

Inerting are the typical applications, where thisnitrogen generator plays a vital role.Not having nitrogen at high pressure on the rig

could be as risky as explosion of the rig.The unit makes instrument air available on the

rig through air separation membranes anddelivers high purity nitrogen (98 per cent) at highpressure (5,000 psi). The SNG 4S offers a solution to the high

cost and high risk of ship-to-shore transport ofhigh-pressure nitrogen cylinders. Its well-designed layout takes up minimal deck spaceand requires nominal ship utilities for use, whilethe aluminium frame and corrosion-resistantmaterials provide the utmost reliability in theharshest of offshore environments.BAUER KOMPRESSOREN GCC will

participate at ADIPEC, where it will be located inHall 13, stand 13030.

BAUER KOMPRESSOREN GCCTel: +971-4-886 0259www.bauer-kompressoren.de

The SNG 4S is the world’s mostcompact nitrogen generator,according to the company

Making a vital contribution to rig safety

Technology

Image Credit : BAUER KOMPRESSOREN

SHUAIBAH WATER & ELECTRICITYCompany (SWEC) has selected GardnerDenver’s revolutionary new CompAir Ultimacompressors to supply oil-free compressedair to Saudi Arabia’s first independent waterand power plant (IWPP). Generating 1,200MW of electricity and

800,000 cu/m per day of water every day,the facility is one of the largest independentwater and power plants in the world,supplying to cities including Makkah,Jeddah, Taif and Al-Baha. The Gardner Denver team found SWEC’s

previous system was not producing thequality or volume of compressed air required,particularly when additional demands suchas the plant’s ash handling system wasfactored in too. Furthermore, with traditionaloil-free compressors typically over-heatingdue to the high ambient temperatures inthese environments, Gardner Denverrecommended its new Ultima technology tohelp overcome this challenge. As a result, four 160kW Ultima

compressors were specified for the plant, tobe used for the site’s steam turbinegenerator, three boilers, auxiliary equipment,flue gas desulphurisation unit andelectrostatic precipitators. A ground-breaking new compressor

launched by Gardner Denver as part of itsCompAir brand, Ultima is a revolutionarynew, water-cooled oil-free compressor. It

offers up to 12 per cent improved energyefficiency compared to a conventional two-stage machine, with a 37 per cent smallerfootprint. Available in models from 75kW to160kW, the technology is ideal forapplications that demand the highest levelsof air quality and purity. Ultima is engineered to ensure that no

warm air is vented in to the compressorroom. Instead, this warm air is processedwithin the machine enclosure and, using aheat exchanger, the air is cooled and then re-

circulated via the base frame around thecompressor. As a result, no heat is wasted,no dust or particulate matter enters thecompressor, and the inlet air stays cool. Thecompressors are also all offered with iConn,a cloud-based, air management platform thathelps operators manage, optimise andimprove compressed air services. High performance solution Mohsen Hamed

Al Salmi, technical director at SWEC, said,“The Ultima compressor offers a high quality,high performance solution that is ideallysuited to meet the needs of our plant. Thefact that the company was able to supply thenew compressor solutions just one monthafter the order was agreed was hugelyhelpful, ensuring we could meet the increasedwater and electricity demands that Hajj brings.”Amr Ismail, oil-free and nitrogen sales

manager at gardner Denver FZE, added, “As Industry 4.0 drives manufacturers to

share and analyse asset data, organisationsare demanding more intelligent insights intotheir compressed air performance that canhelp remove risks, improve productivity andreduce energy consumption. iConn offers thiscapability to SWEC by delivering historic,real-time, predictive and cognitive analytics,which can help users address any potentialissues before they become a problem.Available as standard on all new CompAirmachines, iConn can be retrofitted to existingcompressor installations too.”

The Ultima oil-free compressor is ideally suited tomeet the demands of Saudi Arabia’s first IWPP

CompAir Ultima compressors selected for Saudi Arabia’s first IWPPImage Credit : Gardner Denver

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34 oilreview.me Issue 6 2018

ROTAIR, WHICH SPECIALISES inmanufacturing and distribution ofportable screw air compressorsacross the world, has been present

in the Middle East since 2000, and itsenduring success in the region reflects thesituation for the company worldwide,Ramasamy comments.

“Today we are a well-known compressorbrand in the USA with a 12 per cent marketshare. This was achieved in a span of onlyfour years despite the fact that the country isa demanding market for compressors withhigher regulations on emissions andstandardisations. ROTAIR is the firstmanufacturer to have Tier 4 Final compliantunits for the USA market without the need ofa costly DPF filtration system. Also, by usingwater-based paints and adhering to the mostadvanced regulations in terms of noise level,ROTAIR respects all the latest environmentalnorms throughout the world. So you canimagine that it is a tough market.

“As a European brand, we were able topenetrate the USA market because we satdown and listened to customer demands. Ourmotto was not just to sell the equipment butto provide suitable solutions. In the MiddleEast too, our distributors have played animmense role in our increasing market share.Since we are present in all countries via ourdistributors, we make sure that they are wellversed in ROTAIR products.

“The products’ superior design and excellentperformance in job sites has been thecornerstone for our growth story. ROTAIR isalready working on improvisation of some of the

models as part of its continuous improvementphilosophy. We are also looking to increase ourproduct range, above 900 CFM.”

The designs are environmentally friendlyand adhere to most of the stringentinternational standards on quality andprocesses. The company takes pride in itsdesign abilities and is known for a number ofpatents in the industry. Design, manufacturingand testing of airends – the heart of any rotarycompressor – is all inhouse. ROTAIR usesinternationally well-known engines such asPerkins, Kubota, Deutz, Cummins and JCB.Most of the models have two different engineoptions, offering flexibility for customers.

Looking closer to home, Ramasamy saysROTAIR wants to emulate the USA model ofinnovating and working closely withdistributors to become the leader in theregion. “Despite hardships, with excellentsupport from its distributors in Middle East,

ROTAIR tripled its growth during 2017-18 ascompared to the previous year. With 90-plusROTAIR trained sales and after-salespersonnel in the GCC, the company expectsto continue a healthy growth trend in thefollowing years.”

The compressor manufacturer is alsorenowned for providing custom-engineeredsolutions. The company collaborates withcustomers to understand their changingneeds and designs solutions accordingly.“Long-term partnering has been a keydifferentiating factor for the company. Ourcompressors are very simple and easy to useand require less maintenance. Eachcompressor comes with a two-year unlimitedwarranty,” Ramasamy stresses.

ROTAIR’s job doesn’t finish with deliveringthe equipment; the company recognises theimportance of strong after sales organisation.ROTAIR’s personnel regularly conduct periodic

ROTAIR manufactures all its compressors at its plant in Caraglio, Italy

Italy-based compressor manufacturer ROTAIR recognises that people, and not just machines,are at the heart of any business. Rhonita Patnaik sat down with Jayanthan Ramasamy,ROTAIR’s sales manager – Middle East, to gain an insight into the company’s success.

Getting closer to the

�ustomer

With excellentsupport from itsdistributors in the MiddleEast, ROTAIR tripled itsgrowth in 2017-2018”

Compressors

Image Credit : ROTAIR

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training for its distributors to refresh productknowledge and provide training of newmachinery. “It is an ongoing effort from ourend to boost aftersales initiatives and support our distributor network to get closerto the customers. Hopefully in the comingyear, we should be able to roll out additional action plans.”

Upward trend in salesRamasamy is also optimistic that in thecoming months and with new investments,the region is going to see an upward trend insales and shares. Since portable compressorshave wide application and use, the demandfor the product continues to be very strong inalmost all industries across the region.ROTAIR compressors are simple in design yetrugged. They have been time tested forcontinuous use even in the hottest summerconditions in the Middle East. Thecompressors are made in Italy and the modelsavailable in the Middle East market arecustomised for the region. A tropicalisedcooling system and heavy-duty filtration arestandard in the regional version. Completemechanical control systems and multipleengine options for customer choice are someof the brand’s selling points.

ROTAIR compressors are suitable for awide variety of applications in industries suchas oilfield services, construction, sandblasting, optic fibre cable laying and generalmaintenance. The company is also focusingon the rental sector and has already

developed a reasonable customer base withmajor rental companies within a short period.

ROTAIR’S wide range of diesel, petrol andhydraulic-driven compressors are suitable forthe oil & gas industry, Ramasamy points out.

“ROTAIR has the capability to offercompressors for Zone 2 with inbuiltcomponents such as chawlyn valve, sparkarrestor, battery isolater, emergency stopswitch and lifting pockets.

“Bunded chasis with a capacity to hold130 per cent of total liquids in the compressoris available, making the compressors totallycompatible with the stringent requirements ofthe oil & gas industry,” he adds.

Turning to prospects for the oil and gas

sector Ramasamy comments, “The oil & gasindustry has been the mainstay of MiddleEast’s economy for decades. Traditionally theregion has offered rich opportunities to theupstream oil and gas sector. In addition, theregion has embarked on a path tosignificantly increase its downstreamcapacities in the past few years.

“Even though the industry is facingchallenges such as geopolitical tensions, lowoil prices and an increased focus onrenewables, the oil & gas industry willcontinue to play a significant role in theregion’s economy in the future.

“ROTAIR is proud to be part of thisdynamic industry,” he concludes. n

The portable compressorsof the MDVS line aresuitable for mining, drillingand oil & gas operations

Compressors

Image Credit : ROTAIR

36 oilreview.me Issue 6 2018

DOOSAN PORTABLE POWER (DPP) has won an order worth almost twomillion Euros for portable compressors in Saudi Arabia. The compressorshave been purchased by the rental business, EJAR, based in Jeddah, throughTAMGO, the authorised dealer for Doosan compressors, lighting towers andconstruction tools in Saudi Arabia.

The order is for 50 Doosan 9/235HA portable compressors each providing23.4 m³/min (825 cfm) of compressed air at a rated operating pressure of8.6 bar (125 psi). The 9/235HA is ideal for the full range of compressed airapplications from construction, rental, utilities and manufacturing toquarrying, water well drilling, sand blasting and the oil and gas industry.

Gaby Rhayem, regional director Middle East and Africa for Doosan BobcatEMEA, said, “The 9/235HA is a long-time staple of our industry and is themost popular compressor of its type in the Middle East and Africa. EJARchose the 9/235HA for renewal of the company’s rental fleet, based on theoutstanding performance and durability of our products over many years.”

With a well proven Doosan airend and powered by a fuel efficientCummins engine, the 9/235HA compressor has been designed to ensure theunit performance, durability and reliability are guaranteed in the toughenvironment of the Middle East.

EJAR was formed in 2015 to provide customers with short and mediumterm rental solutions. With an array of products including compressors,trucks, lift trucks, cranes and welding machines, EJAR offers affordable,turnkey solutions for everyday rental needs.

TAMGO has long been providing customers in Saudi Arabia with aselected range of the world’s most advanced equipment, backed byoutstanding product support, services and solutions. TAMGO specialises inpower solutions, as well as industrial and construction equipment.

Alvaro Pacini, president of Doosan Bobcat EMEA and Fadel Hassan,managing director of TAMGO

Doosan Portable Power wins compressor order in Saudi Arabia

Image Credit : Doosan Portable Power

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AS LONG AS there has been an oil industry, there have beencorrosion and erosion. Upstream, midstream anddownstream operators have constantly sought better ways to protect their assets and safeguard both health and safety

and the bottom line.Once upon a time, there were coupons to act as a proxy for metal

loss. Then there were in-line sensors capable of monitoring corrosivity.Now there are non-intrusive, ultrasonic sensors capable of directlymonitoring pipe wall thickness. The trend is for more sensors, moredata and more monitoring at the expense of inspection. Progress. Butit would be a mistake to read this as a story of each technology simplysuperseding the last. In fact, the most effective approach is tocombine intrusive probes and non-intrusive sensors under newprocurement arrangements, to give an integrated perspective that isgreater than the sum of its parts. To understand how, we need todisentangle cause and effect.

The end-effect: non-intrusive sensorsWhether the problem is corrosion or erosion, ultimately the end-goal isto minimise metal loss. Gradual loss of pipe thickness can become amajor hazard, threatening loss of containment, significant downtimeand – in worst case scenarios – injury or loss of life.

It stands to reason then, that operators want to monitor and

measure that metal loss. By keeping track, they can be proactive withrepairs and minimise risks. In the old days however, this simply wasn’tpossible. Coupons, inserted into the flow, could provide a proxyreading for metal loss but there are simply too many variables for this toever be completely accurate.

The recent advances in ultrasonic sensors then, have beensomething of a revelation for the industry. These can be affixed to theoutside of the pipe wall, with no need to penetrate it (and consequentlyno downtime). They then use soundwaves to directly measure pipe wallthickness at a given location – no proxy readings, no estimates –concrete data.

This gives operators something they never had before. What’s more,the fact that they are non-intrusive is seen as a major plus. They can beinstalled easily in high risk, harsh environments and feed back datawirelessly to corrosion engineers. Directly measuring metal loss isunquestionably the best option for erosion monitoring too.

Oil and gas pipelines areprone to corrosion

Roland Anderson, executive VP at Cosasco, argues that the mosteffective corrosion protection approach combines the advantages ofboth intrusive and non-intrusive monitoring systems.

An integrated approach to

corrosion�control

Gradual loss of pipe thickness canbecome a major hazard”

Technology

38 oilreview.me Issue 6 2018

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arren J. Bradley/Shutte

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The cause: in-line probesThis ability to directly monitor the effects of corrosion and erosion hasrightly caused a lot of excitement in the industry. However, in somequarters, eagerness has seen some overstate the case for non-intrusive sensors, seeing them as a replacement rather than acomplement for existing intrusive technology.

That would be to monitor the effect without monitoring the cause.Both are vital.

In the case of corrosion, operators often inject corrosion inhibitorchemicals into the flow in order to reduce corrosion rates and protectpipe wall thickness. This is a delicate operation that requires chemicallevels to be finely balanced: too little and corrosion goes unchecked,but too much and not only do you waste (very expensive) inhibitorchemical, but this can counterproductively increase corrosion.

If an operator were only measuring pipe wall thickness – i.e. theeffect – then they are left to make inferences about the corrosivity – i.e.the cause. This is possible in theory but it’s like getting rocks when youneed fine-sand level granularity. Having spotted a worrying level ofmetal loss, the operator might adjust inhibitor levels, but it might thenbe a week or a month before the effect of the change becomesapparent on the pipe wall. In the meantime, more damage is done.

Instead, it’s worth measuring the cause itself. In-line, intrusiveprobes can directly monitor the corrosivity of the liquid flowing throughthe pipe, feeding back data to the corrosion engineer in real-time.

This allows the engineer to instantly tweak and fine-tune the level ofinhibitor chemical used, without having to wait each time to see theeventual effect. Not only does this save on inhibitor chemical, it lessensrisk and improves visibility and control.

Intrusive monitoring systems such as this are perceived by some asa health and safety risk as they involve penetrating the pipe wall.However, the improved corrosion management is in fact a major boonto health and safety, and sensors can be installed safely by trainedengineers in the majority of locations. Only the most inaccessible andhigh-risk locations would prove problematic.

An integrated system – greater than the sum ofits partsIt should be clear then, that the two technologies are better understoodas complementary, not mutually exclusive, options. Each offers strengththe other can’t and makes up for the weaknesses of its counterpart.

However, by integrating both types of sensor into a single system,the advantages are greater than the sum of those listed above. Why?It’s all in the data.

By having both sets of data feed wirelessly into a smart system thatanalyses both streams, you can cross-reference the data and use eachto validate the other. For example, if the non-intrusive sensors detecteda particularly severe reduction in pipe wall thickness in a certain

location, this could be cross-referenced with the intrusive monitor data.If the level of corrosivity was also high, then the data is corroboratedand the issue can be rectified.

If, however, an engineer was relying on one system or the other,validation would require manual inspection. This costs time and moneyand, in a hazardous environment, introduces an unnecessary degree ofrisk to the inspection team.

In fact, having live corrosivity and pipe wall thickness data streamscan drastically reduce the need for an inspection regime at all. Defectmonitoring becomes an automatic issue, and inspection teams wouldbecome the exception rather than the rule, reducing risk and cost.

A truly smart system could then deploy machine learning and bigdata analysis to detect patterns in the two sets of data, findinghidden patterns and correlations that could further reduce risk andimprove control.

New procurement modelsWith new technology and approaches also come the opportunity for new commercial and procurement methods. No doubt any engineer will be aware of digitalisation and the Industrial Internet ofThings (IIOT), but what does this mean in the context of corrosionmonitoring and management?

Well, with the integration of intrusive and non-intrusive monitoringsystems, it becomes clearer than ever that the real value to operators isin the information rather than the sensors themselves. As a result,suppliers are rolling out models such as leasing, effectively offeringcorrosion and erosion monitoring-as-a-service coupled with a monthlycare package of reporting and analysis.

This is more than just a tweak to business models; it can make amajor difference to corrosion engineers trying to make the businesscase for a best-in-class monitoring system. Buying a large number ofsensors outright is typically classed as a capex spend. Switching to aleasing model enables corrosion engineers to procure the systems fromopex, often expediting and easing the process.

By doing so, corrosion engineers stand to reap the benefits of amodern, innovative system that combines the advantages of bothintrusive and non-intrusive monitoring systems. Contrary to thecommon misconception, it is integrated systems, not a rush to switchto purely non-intrusive ones, which will yield the most returns. Causeand effect are equally important to monitor, and by keeping an eye onboth, operators can be smarter and more responsive. Ultimately thatmeans money saved, risks reduced and assets protected. n

Cause and effect are equallyimportant to monitor”

Technology

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EISENBAU KRÄMER (EBK), the Germany-basedspecialist in longitudinally welded steel pipe, hasannounced a multi-million euro investment inequipment to enhance its products and services offering.

The company has made significant investmentsin enhancing pipe end dimensional and shapetolerances, including state-of-the-art lasermeasurement technologies and a further process ofpipe end expansion, which will enhance consistencyin areas of ovality and out-of-roundness.

Further investments have been made to enhanceEBKs existing capabilities in pipe profile cutting, fullbody pipe measuring, pipe tracking and traceabilityand plate edge crimping.

The investment programme comes as EBK seesan improvement in industry confidence, with anumber of key projects progressing beyond finalinvestment decisions. The company is experiencingstrong demand in the Middle East, along with theNorth Sea, Africa and North America.

“While the industry has not returned to a fullrecovery by any means, we believe that the outlooklooks strong, particularly in the business forstructural steels and specialised products such ascorrosion resistant alloys,” said EBK technicalmanaging director Dr. Scott McCann.

Eisenbau Krämer announcesequipment investment asconfidence returns

WITH THE REVIVAL of the oil and gas markets, drilling is picking up insour gas fields and environments with higher levels of CO2 and H2S,driving increased demand for corrosion resistant alloy (CRA) OCTGand clad and lined pipe, according to the newly launched Future ofCorrosion Resistant Alloys report from Metal Bulletin and WestwoodGlobal Energy Group.On the OCTG side, austenitic grades look placed to take market

share, with cladded and lined pipes becoming the material of choicein linepipe projects on a global basis, taking share from solid CRA.The Middle East is expected to remain the largest consuming regionworldwide in the chrome and CRA OCTG market, driven byexpanding investment in sulphur exports from key regional producersand the high volume Barzan development in Qatar.Key conclusions are as follows:

• For clad and lined pipe markets, a number of major contracts out inthe market are set to lead to a period of robust demand in the nextcouple of years.

• Of all the grades, 13 per cent Cr will remain the largest volumeconsumed.

• 2019 is set to be a high year for pricing in for both clad and linedpipe, boosted by the strong demand and more limited capacity inGermany.

• Pricing growth is expected to be greatest among the highestgrades such as nickel alloys, driven by increased activity in theoffshore and deep-water basins.

• Supply for clad and lined pipe markets is dominated by Japaneseand German mills, but over the forecast period there may bepotential for mills in other Asian markets to make inroads.

Matt Loffman, associate director, Westwood, said, “As more gas andsour gas fields are targeted for production, a selection of oilfield

equipment suppliers will need to prepare for elevated demand at alevel beyond the relatively modest growth of the wider industry. Thisimpacts both the OCTG and linepipe markets. While on the OCTGside, austenitic grades look placed to take market share, cladded andlined pipes are becoming the material of choice in linepipe projects ona global basis, taking share from solid CRA.”“As the revival of the oil and gas markets develop, drilling continues

to pick up in more complex environments, often with higher levels ofCO2 and H2S, which is driving increased demand for CRA OCTG andclad and lined pipe,” said Dr. James Ley, principal consultant, MetalBulletin Research. “These products, although extremely complicatedto manufacture, generate wide interest across the steel tube and pipeindustry due to the premium profit margins that can be achievedcompared to standard carbon grades.”

Increased demand forecast for corrosion resistant alloy (CRA) OCTG and clad and lined pipe

Technology

40 oilreview.me Issue 6 2018

Total CRA Demand Outlook: OCTG and Clad and Lined Pipe Image Credit : W

estwood Global Energy, Metal Bulletin

Research

DNV GL raises the standard for thermoplasticcomposite pipes (TCP)DNV GL HAS launched a new standard that allows operators to choose thermoplasticcomposite pipes (TCP) instead of steel or traditional flexibles, enabling substantial costreductions throughout the project lifecycle.After the successful and wide adaptation of the recommended practice (RP) DNVGL-RP-

F119 by the industry for qualification of TCP for various applications from dynamic to staticapplications since its publication in 2015, the RP has now been converted to an official DNVGL standard DNVGL-ST-F119. This reflects the growing confidence in the TCP technologyand the methodology of RP to deliver safe and reliable performance to the industry.Almost a decade after the manufacturing of the first Thermoplastic Composite Pipes, this

novel non-metallic pipe concept is increasingly gaining the attention of the oil and gasindustry. Spoolability, significantly lower weight to strength ratio compared to conventionalmetallic pipes and the absence of corrosion, make TCP a potentially disruptive technology inthe pipeline industry. Various pilot projects with different operators have been initiated in thepast few years to use TCP in offshore oil and gas projects to cut cost and increase efficiency. Throughout this time DNV GL has played the role of an independent certification body for

TCP to facilitate the adaptation of the technology by the industry, while ensuring the reliabilityand safety targets comparable to conventional metallic pipes.Since its publication, the RP has been the only available document for qualification of TCP

in the industry and has been used in almost all of the TCP pilot projects across the globe,says DNV-GL. The design and qualification methodology of the RP has been adopted by allmanufacturers of TCP as well as developers of hybrid flexible pipes in which the pressurearmour within a conventional steel-based flexible is replaced by TCP.Liv A. Hovem, CEO DNV GL - Oil & Gas stated, “The launch of the new DNV GL standard

for TCP shows the industry is looking for innovative methods that reduce costs for theiroperations. The new standard gives the industry the trust and confidence that they can moveforward with TCP safely across all lifecycle stages of a pipeline or riser.”An upcoming DNV GL type approval scheme being issued later this year will make it easier

for engineers to design pipeline systems using TCP, the company says.

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MULTIPHASE METERS AND theirability to measure the individualphase flow rates of oil, water andgas have been part of the Middle

East upstream environment for many years,replacing conventional and more expensivetest separators and providing significantCAPEX savings and improved reservoirmanagement. By using a multiphase meter,there is no need for a test separator, manifoldor line, with each well tested without having toredirect to the test line.

Yet, like all technologies, multiphasemeters must evolve to meet new challenges.

In the Middle East, for example,multiphase flow meters must now operate in awide variety of flow regimes, including bubble,slug, mist, churn, slip and annular flows. Thecontinued growth in brownfield oil and gaswells producing over a broad range ofprocess conditions, where more liquid andwater are present, has only gone to heightenthe changing nature of these regimes.

With changing flow conditions and ever-narrowing profit margins, multiphase metersare often considered unwieldy and expensive,with many operators put off by the scale andpotential expense of such deployments, theinability to change solution mid-course, andthe need to prioritise which wells warrantmultiphase meters. In many cases, a one-meter-per-well strategy is simply noteconomically feasible.

A flexible and modular approachIt is against this backdrop and as a means ofreducing multiphase meter costs and ensuringmore flexible and accurate metering that

Emerson has developed the modular RoxarTM

2600 Multiphase Flow Meter family based on aproven measurement technology platform usedin over 1,500 meter installations worldwide.

This technology platform includes advancedsignal processing, field electronics andelectrode geometry, as well as high-resolutionsensors capable of capturing small changes inthe electrical properties of the multiphase fluidpassing through it. The dual velocity system,cross-correlation capabilities and optionalgamma system also provide measurementscapable of handling multiple flow regimes.

Rather than being dependent on onetechnology solution for the lifetime of the wellwith the risk of failure and increasedmaintenance, the modular and flexibleapproach is based on different meterconfigurations that can be customisedaccording to different applications. Emerson’smodular family of meters, for example, can bedesigned for the following applications: • Trending water cut, gas breakthrough and

flow rates from asingle-well installation

• Generating highaccuracy flow rates foroil, gas and water overa broader range ofapplications in a single-wellinstallation

• Improving meter accuracy androbustness through the addition of agamma source

• Providing flow back measurements, welltesting and allocation metering in bothsingle-well and multi-well applications.Modular flowmeters can either be one

component of an integrated well test system,function as an all-in-one multiphase flowmeter at the wellhead that shares flow linesand provides continuous wellhead productiontest data, or provide standalone wellheadmeasurement. The fact that such meters areso cost-effective also allows for the possibilityof allocating one meter per wellhead.

As conditions and operator demandschange, so technologies need to keep up byreinventing themselves and embracing

innovation. A modular approach to multiphasemeters is a step toward achieving just that. n

Emerson has developed the modular Roxar2600 Multiphase Flow Meter family based on aproven measurement technology platform

Lars Anders Ruden, Emerson Automation Solutions, discusses how multiphase meters areevolving to address new challenges.

In the Middle East,multiphase flow metersmust now operate in a widevariety of flow regimes”

Technology

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Honeywell has launched a new gasmetering solution that provides easy-to-usehealth monitoring of midstream meteringsystems for operations, maintenance andleadership teams. With advanced real-timediagnostics, at-a-glance dashboards andintelligence analytics, Honeywell ConnectedPlant Measurement IQ for Gas enablesoperators to detect and correct costlymismeasurement, anticipate equipmentfailure, reduce gas losses and eliminateunnecessary maintenance.Measurement IQ connects assets across

all enterprise metering stations and capturesthe data in Honeywell’s secure data centre.Users can connect on any device with a webbrowser and receive customisable alerts ontheir mobile phone with Honeywell’sExperion® App. The Connected Plant solution anticipates

problems and enables users to move fromtime-based or risk-based recalibration ofmeters to condition-based monitoring withcalibrations only when required.

TUV SUD NEL has commissioned anupgrade of its Primary Liquid Densitometer to

deliver enhanced flow meter calibrationaccuracy. This will decrease flowmeasurement uncertainty and minimisefinancial exposure for both oil and gasoperators and taxation authorities.The new Primary Liquid Densitometer will

provide the calibration traceability to primarystandards for liquid density measurement atelevated temperatures and pressure requiredfor flow meter calibrations at theseconditions. It will also meet growing industrydemand for enhanced calibration accuracy atelevated pressures, as well as densitycalibration services that support next-generation industrial flow measurementdevices. It will support the company’sAdvanced Multiphase Facility (AMF), a high-pressure multiphase flow test facility currentlybeing developed which will have the largesttest range in the world.The ST100 Series Thermal Flow Meter

from Fluid Components International(FCI) provides precision CO2 gas mass flowmeasurement in a highly reliable and fullyHazEx agency approved no-moving partsinstrument. It is particularly useful for EOR

operations, where CO2 is often used. Theaccurate measurement of CO2 gas flow andpressure is critical to the success of the EORprocess. In addition, accurate flowmeasurement is important for the efficientseparation of the oil, natural gas, CO2 gasand water components.The separated CO2gas and water components are then re-usedto recover more oil. Accurately measuring theflow and pressure of the CO2 gas is not onlycritical to the extraction process, but alsohelps reduce costs.The ST100 Series Flow Meter can be

calibrated to measure CO2 gas and dozensof other specialty gases, as well as themixed dirty or wet gases common in theEOR separation and re-pressurisationapplications. Featuring a sophisticatedthermal dispersion technology air/gas flowsensor design with optional pressuremeasurement, the ST100 meter combines repeatable measurement withfeature- and function-rich electronics. Itprovides direct gas mass flow measurementand requires no additional sensors or flowcalculating devices.

New developments in metering technology

Technology

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CYBER-ATTACKS COST companiesworldwide an estimated US$300-400bn each year in unanticipateddowntime, and that number is

projected to increase sharply. Some largeindustrial organisations estimate their cost ofdowntime in the millions of dollars per hour.When a plant shuts down unexpectedly, ittakes three to four days to get everythingstarted up again. These are sobering businesscontinuity-related lost revenue numbers.

The more connected nature of oil and gasoperations, driven in large part by theIndustrial Internet of Things (IIoT) and relateddigitalisation trends, although beneficial tobottom lines, introduces an element of cyber-risk that should be addressed. In fact, inactionis not an option. Cybersecurity is now a costof doing business. The question is, what isthe optimal approach?

When considering the issue ofcybersecurity and its impact on businesscontinuity, several types of threats come intoplay. The first is the exposure of employees tooutside emails. More than 400 businessesevery day are exposed to email “spear-phishing” schemes draining US$3bn frombusinesses over the last three years. Thepercentage of emails that contain potentialbusiness disrupting malware today stands atone in 131, the highest rate in five years.

A second issue involves attacks byorganised groups on critical infrastructure,such as oil and gas facilities. As such they aretargeted not only by malevolent individuals butalso by organisations that use cyberattacks as

weapons to be used to weaken nation statesand other global institutions.

A third element to consider whenformulating a cybersecurity strategy is theproliferation of mobile devices. Cell phones,tablets, laptops and thumb drives in thehands of practically every oil and gas industryemployee worldwide creates a need for thedevelopment of more modern and robustsecurity policies. The added connectivity ofthese devices makes it easy for outsiders whoguess or steal passwords to penetrate thecontrol environment.

An approach for deployingcybersecure solutions Fortunately, there are several steps that oiland gas companies can pursue in order tominimise the threat to cyberattack-drivendisruptions to business continuity:• Building firewalls to keep outsiders from

entering the corporate network andgaining access to control systems. This willwork in environments where entry pointsinto the system are somewhat limited.However, in an IIoT world, cybersecuritywill need to be built into every controlsystem hardware and softwarecomponent, protecting every node that

has computing capability.• A gradual approach to strengthening

cybersecurity infrastructure. Responsiblecontrol systems manufacturers are nowdesigning cybersecurity into every modulethey build and deliver so that clients don’thave to concern themselves with buildingin cybersecurity after they purchase a newproduct.

• The education of employees. Acybersecurity-aware culture needs to bedeveloped within oil and gas organisationsto help employees understand orappreciate the major risks, so operationscan be run in a secure manner (includingbasic password management orchangeover management).

Such an environment should audit andenforce cybersecurity best practices on aconsistent and effective basis, utilisingavailable supervision and detection tools, sothat exposure to risk can be minimised. Insuch a cybersecurity-aware process culture,the priorities of the IT and industrial controldepartments need to be aligned. Bothemployees and vendors coming in need to beaware of the security policies or risk beingdenied access to sensitive equipment andoperations software. n

See Schneider Electric’s whitepaper ‘Apractical guide to achieving oil and gasoperational efficiency through digitisation’.https://publish.ne.cision.com/l/udybljlac/www.schneider-electric.com/promo/us/en/getPromo/75668P

Oil and gas facilities and other criticalinfrastructure are under threat from cyber attacks

The ongoing digitalisation of the oil and gasindustry has introduced a new set of safety andsecurity concerns that will need to be carefullymanaged. Schneider Electric has some advice.

Countering oil and gas

cybersecurity�threats

Cybersecurity isnow a cost of doingbusiness”

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OIL TANKER SAFETY is back in thespotlight. When the Panamanian-flagged Iranian-owned crude oiltanker Sanchi collided with the

Hong Kong-flagged cargo ship CF Crystal inJanuary this year, it led to one of the worsttanker incidents for several decades. Afterburning for more than a week, the Sanchi,which had been carrying 136,000 tonnes ofnatural gas condensate, eventually sank offthe coast of Shanghai, China. The entire crew of 32 died in the incident, which wasalso the worst tanker spill in 35 years,according to the International Tanker OwnersPollution Federation.

This has it has been a wake up call for theindustry. The underlying safety record in oilshipping is very good. In terms of total lossesby type of vessel worldwide, only 16 tankerswere lost between 2008 and 2017, accordingto Lloyd’s List Intelligence Casualty Statistics,out of a grand total of 1,129 ships; more than half the losses were general cargo orfishing vessels. But all theunderlying threatsremain, while othershave come into greaterfocus, including fire,which was the causeof loss for three of the10 largest vessels lostin the past year.

“Tanker safety has improved significantlysince a number of major pollution incidentsled to improved ship design andimprovements in risk management in the1990s,” a recent report by insurers Allianzstates. “However, the large loss of life onboard the Sanchi is likely to focus attention onthe adequacy of fire protection for crew.”

The report, Safety & Shipping Review 2018, also charts a number of otherkey trends shaping the industry, from the use of drones to the emergence ofautonomous shipping.

Drones: Unmanned aircraft systems arefinding a growing number of applications inthe maritime sector, which could have thepotential to make a significant contribution tosafety and risk management, the reportstates. These include assessingenvironmental pollution, monitoring cargo

loading and pirate activity along coastlines or carrying out cargo tankinspections. Drones could enable faster, moreinformed decision making on board, reducingthe impact of any incident.

Cyber threats: This is an area the industryis taking seriously in the wake of the NotPetyacyber-attack of 2017, which led shipping giantMaersk to suspend operations and reinstallthousands of infected servers and computersorganisationwide. The InternationalAssociation for Classification Societies plansto publish guidelines covering cyber securitypractices in the shipping industry by the endof 2018. Last year, the International MaritimeOrganisation issued guidelines and called forcyber risks to be addressed in existing safetymanagement systems by 2021.

Autonomous shipping: Like driverless cars,there is great interest around the world increw-less vessels. These could one day,potentially, play a role in the energy shippingsector. However, legal, safety and cybersecurity issues are likely to limit the growth ofsuch vessels for the foreseeable future, theAllianz report states. n

Martin Clark looks at some techology trends shaping tankerindustry safety on a global level.

Technology trends for

oil�shipping

Unmanned aircraftsystems could make asignificant contribution tosafety and risk management”

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FIRES ARE A daily risk in the oil and gasindustry. Fire hazards lurk in each stepof the process – ranging from oil andgas production to transport, as well as

in refineries and storage. Components thusneed to be fire safe if they are to withstandthreatening situations. No wonder demand isincreasing for fire-safe valves.Losses can be devastating in a case of

emergency; therefore, safety is just as high apriority for valves as quality and a long lifecycle. “Fire safe valves are mainly used in theoil and gas industry, as risk of fire is high,”explains Stefan Keller, product manager at ASSchneider. The consequences could“understandably be substantial,” he emphasises.Explosions in refineries or on oil rigs are a

threat to man and material. A defectiveblowout preventer with safety valves played amajor role in the devastating catastrophe onthe oil rig “Deepwater Horizon”, in the Gulf ofMexico. The valves malfunctioned and 780mnlitres of crude oil flowed uncontrolled into theocean, causing several billion dollars ofdamage. Furthermore, eleven men died and600,000 birds perished. Other sectors also place their trust in fire-

safe valves. Petrochemistry, for instance, where“filling processes of inflammable substances intank farms” are usual, explains VetecVentiltechnik. In a critical situation, fire-safevalves have to stand the test in real conditions,

particularly in view of having to handle fastfilling times. Vetec developed a rotary plugvalve with a double excentric plug design,which ensures that there is no contact betweenplug and seat while rotating, and no particlescan adhere in between. “The housing isbasically free of dead space, so no troublesomesoot deposits can occur,” states Vetec.

Testing for fire safetyFire-safe valves also provide the chemicalindustry with much needed security. Ethyleneoxide becomes highly flammable in contactwith oxygen, reports Vetec. In an emergency,fire safe valves go through hell to keep theplant safe. Valves should not only have a fire-safe design, but also be certified as fire safe.Here, fire safe testing facilities come into play.Specialised testing facilities leave nothing

to chance and put valves through their paces.Take Amtec, for example. The companydeveloped a new fire safe test rig to testvalves according to DIN EN ISO 10497, API

607, API 6FA or API 6FB. “With this test rig,all important type acceptance tests for fireresistance can be conducted,” says ManfredSchaaf, Amtec Advanced Measurement. Notonly that: if needed, client-defined testingprocedures can also be performed. Thisallows individual applications to be tested.Safety is too important for things to

stagnate. “Due to changing testingrequirements the test rigs have to be modifiedagain and again,” states Schaaf. Investmentsare always required: just recently, thecompany put a test rig for cryogenictemperature applications into operation.Amtec is continuously expanding in thetesting facilities field. Meanwhile, varioustesting facilities are available for testing seals,valves and stuffing boxes. AS Schneider’s valves and valve blocks

have championed the load tests in a test rig.Even after extreme test conditions, thecertified valves not only showed themselvesleakage-free, but could also be fully operated,as well as opened and closed repeatedlywithout problems.High-performance ball valves made by

Hartmann Valves are another example. Theycan be operated in temperatures rangingbetween – 200 to +550°C, pressure stagesup to 700 bar and with aggressive media.Realised entirely in metal, the sealing systemsbetween ball and seat ring fulfil a leakage rate

Malfunctioning valveswere behind the

Deepwater Horizondisaster

Demand is growing for fire-safe valves, which can withstand explosions and blazes.

A strong performance

under�fire

Fire-safe valves alsoprovide the chemicalindustry with muchneeded security”

Fire Safety

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of A, or 0. Special construction features andsafety-oriented functions such as DBB(double block and bleed), DIB (doubleisolation and bleed) and fire safe create higherlevels of safety. This is a necessity, as the ballvalves are used with all kinds of media, fromoil, natural gas, acid gas, brine, oxygen orhydrogen, steam, thermal water and abrasiveor degreasing media.

Material strengthWhat can increase the likelihood of a valvebeing certified as fire safe? Strength isimportant when choosing the material,especially as far as higher temperatures areconcerned. “Not only do the materials usedfor the valve housing play a role, but also thematerial the screws are made from, andnaturally also the material used for the sealare essential,” states Schaaf. Only then can avalve withstand its trial by fire.

“Fire-safe valves made from all commonmaterials are in demand,” reports ASSchneider’s product manager Stefan Keller.“Exotic materials are more seldom,” he adds,as separate certification tests have to be madefor different materials groups. Common andproven valves in the oil and gas industry aremade from stainless steel and carbon steel.

Fire-safe products also let valvemanufacturers score with special projects,such as power to gas plants.

Fire safe has long become a seal of quality. Companies in various sectors cannot

do without this seal, and sometimes even arenot allowed to. “We conduct fire safe tests forall new products to be used in such industrial sectors, from the ground up, inorder to certify them,” states Keller. Demand,however, depends on the oil price, but is“continuing to rise”. Customers will alwaysneed fire-safe valves. n

Innovations in these fields will be presentedat Valve World Expo Düsseldorf from 27–29 November 2018.www.valveworldexpo.com

The test rig puts valvesthrough their paces

Fire safe has longbecome a seal of quality”

Fire Safety

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HALLIBURTON HAS UNVEILED itsProdigiTM AB Service, which automatesthe breakdown process of a fracturingtreatment, helping to deliver better wellperformance. The service usesalgorithmic controls and is supported bya Halliburton completion advisor whowill tune the system to optimise theperformance. Prodigi AB service helpsimprove overall efficiency, maximise theperformance of perforation clusters andmitigate the risk of screen-out. Itprovides consistent design execution,better distribution of fluid across theperforated interval, and improved treatment pressures and rates. The service delivers improvedprecision to achieve a lower cost per BOE.

Michael Segura, vice president of the Production Enhancement business line said,“Prodigi ABService offers a significant change in the way we are able to optimise our hydraulic fracturingoperations in real-time, accelerate the learning curve to optimise well design and improve the overallconsistency of our performance at the wellsite.”

Halliburton has used Prodigi AB Service in the Permian basin for Primexx Energy Partners, whichreduced overall treating pressures, increased consistency of the formation breakdown process andresulted in an immediate improvement in cluster efficiency. Sam Blatt, VP of Operations for Primexxsaid, “Prodigi AB Service is helping Primexx achieve our execution and production goals. Thereduction in treating pressure and operational consistency is allowing us to execute treatments moreefficiently, and the improved cluster distribution is helping us make better wells.”

The new service uses automation to deliver betterwell performance

Halliburton brings automation to hydraulic fracturingSCHLUMBERGER HAS INTRODUCED theGyroSphere MEMS gyro-while-drilling service,which aims to increase drilling efficiency andreliability while reducing drilling risks for globalE&P operators. As the first application ofmicroelectromechanical system (MEMS)technology for gyro surveying while drilling inthe oilfield, the GyroSphere sensor performsgyro surveys faster than conventional systemsand avoids the need for recalibration betweenruns. Solid-state technology enables theGyroSphere sensor to withstand the downholeshock and vibration that occur during drillingbeyond the limits of current gyro technologies.Additionally, the GyroSphere service can reducegyro survey uncertainty by up to 45 per cent,providing more accurate access to smallerreservoir targets.

“The GyroSphere service substantially improvesoperational efficiency by enabling gyro surveyingwithout taking any additional rig time,” said TarekRizk, president, Drilling & Measurements,Schlumberger. “Two surveys can be completedusing the GyroSphere service in the same amountof time conventional gyros take to start just one.”

The GyroSphere service has been proventhrough extensive testing and field trials.

Gyro surveying service

Innovations

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THE CURRENT OIL and gas marketdemands cost savings; reducedmaintenance budgets, shorterpayback periods and increased

efficiency have become the ‘new normal’.Every part of the process is scrutinised togenerate efficiencies and improve overallmargins. Traditionally, this analysis manifestsas a downwards pressure on suppliers to cutcosts, but these pressures do not always helpas rising raw material costs, e.g. zinc andepoxy resin, can drive prices higher.

One of the main challenges hindering oiland gas operators from making further costsavings is the enormous complexityassociated with oil and gas facilities.Thousands of pipes, valves and vessels arerequired, operating at many different servicetemperatures as well as beneath insulation.

However, the complexity as well aschange orders and modifications to existingdesign can cause challenges during theconstruction phase. Bulk supplied items suchas pipes, valves and vessels have long leadtimes and are usually ordered three years inadvance of the project start up. Projectdetailed design continues over this time andas a result, when items arrive onsite, up to 20per cent may now be required at differentservice temperatures to where they wereinitially planned. Many items are standardised so they can be interchangedeasily, however, the coating systems appliedto these items are often carefully chosen for aspecific operating temperature. The wrongcoating at the wrong temperature is a quickroute to early failure or production delayscosting US$1-2 mn per day. Therefore, onsiterework is required to change the coating,increasing painting costs.

To help reduce the challenge of complexity,many high temperature coatings are specifiedwith a coat of inorganic zinc silicate as aprimer, providing ambient temperaturecorrosion resistance prior to project start upor during ambient temperature use. Thetopcoat is then applied after the item arrivesonsite, ensuring that rework is minimised.However, the rising price of zinc continues tomake this a costly solution, and this processalso increases paint application costs due todouble handling at the paint shop and at site.

Interbond UPC (Universal Pipe Coatings)from AkzoNobel is designed to reduce overallproject and painting costs, whilst greatlyimproving productivity. Carefully formulated toshow tolerance to a wide range of servicetemperatures, the universal pipe coatingproducts are targeted with reducing complexity,providing specification standardisation which

leads to cost savings all the way up thecontract chain. UPC products are formulatedto provide both ambient and high temperatureresistance, with tolerance to carbon/stainlesssteel as well as insulated/uninsulatedconditions – this allows them to replace manyof the traditional painting systems used.

The UPC range is made up of Interbond1202UPC and Interbond 2340UPC, twoproducts linked by possessing both hightemperature and Corrosion Under Insulation(CUI) resistance alongside excellent ambienttemperature resistance as per the ISO20340ambient temperature anticorrosive test,without a primer. This feature allows a trulyuniversal approach with a simple two coat,direct to metal system, suitable for a widerange of operating environments, greatlyreducing the dependence on expensive zinc-based primers. n

Pipe coatings play a critical role in preventing corrosion

AkzoNobel’s universal pipe coating (UPC) products are designed to reduce complexity andprovide specification standardisation, resulting in savings throughout the contract chain.

Cutting costs using specification

st�nd�rdis�tion

The wrong coatingat the wrong temperature isa quick route to early failureor production delays”

Technology

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GEOLOG DEPLOYED ITS BitLife services withKuwait Oil Company (KOC) during drilling ofdeep exploratory HPHT wells in northernKuwait, where predicting and judging thedegree of bit efficiency was a concern. KOCwished to avoid potential NPT (non productivetime) arising from loss of the bit or parts of bitin hole, or from drilling under-gauge hole dueto excessive bit wear requiring subsequentreaming. A technique was required to qualifythe condition of the bit in real-time in order tooptimise drilling parameters so as to maintainas efficient drilling as possible, and thenobjectively justify POOH (pull out of hole) forbit change. GEOLOG’s BitLife service was deployed in a

22” hole section drilling from the Rumailaformation of interbedded carbonate and shalesinto the Burgan sandstone formation. Asdrilling continued following formation changebit wear was detected through the increasingpresence of alkenes, accompanied by a gradualdrop in average ROP from approximately32ft/hr to below 18ft/hr and an increase intorque from an average of 12kft/lbs to morethan 19kft/lbs; bit end-of-life was confirmed on

surface by the damaged cutters and under-gauge bit condition.In the 16” hole section, drilling through the

Zubair formation to the Minagish and Mahkulcarbonates, significant alkenes were detectedalong with ROP dropping from an average of25 ft/hr to 12 ft/hr, indicative of increasedwear; in response the bit was pulled out ofhole and showed a high degree of wear withchipped teeth, but still in gauge, showing thetimeliness of the decision to POOH.

The GEOLOG alkene-detection BitLife servicewas deployed with both water-based mud(WBM) with diesel added and oil-based mud(OBM) drilling fluids. Drilling parameters wereoptimised to get maximum footage whileeffective bit cutting action could be seen, andto determine the optimal time to perform a bittrip once bit wear became terminal. This datawas successfully utilised to study the efficiencyof various bits with different drillingparameters in a variety of drilling conditions.

The BitLife services were used to qualify the condition of the bit in real-time

Qualifying real-time bit wear through innovative monitoring of alkenes

Innovations

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TRELLEBORG SEALINGSOLUTIONS hasannounced the launch ofa new metal end capseal specificallyengineered for HighTemperature / HighPressure (HTHP) wellheadtubing and casing hangersealing environments,which combines thepressure and extrusionresistance of a metal-to-metal bonded componentwith the flexibility of an elastomer.The high performance elastomer-to-

metal bonded sealing elements provide thehigh level of extrusion resistance necessaryfor high pressure and temperature casingand tubing hanger applications. Combiningthe range of Trelleborg’s proprietaryXploR™ Rapid Gas Decompression (RGD)and sour gas resistant elastomers withcorrosion resistant metal end caps,Trelleborg Sealing Solutions engineers candesign a customised sealing solution tomeet specific oilfield requirements.David Brown, Trelleborg Sealing Solutions

global director - lead Group Oil & Gas, said,“High pressure wellhead sealingenvironments, such as casing strings andtubing hangers, are safety critical applicationsrequiring a robust and capable sealingproduct. The new metal end cap seal thatTrelleborg has developed uses our proprietaryand proven XploR™ materials, which providesuperior RGD resistance, oilfield fluidcompatibility and longevity in HTHPenvironments. These benefits accelerate theperformance of our customer’s equipment,allowing them to operate oil and gasequipment with optimal safety and reliability.”Sealing in the elastomer-to-metal design

solution is achieved by controlleddeformation of the elastomer and metalend cap elements during installation andoperation. Optimal stress distributionthroughout the elastomer body is modelledthrough Finite Element Analysis (FEA) toensure appropriate design standards areapplied to each customer’s uniqueapplication. Extrusion resistance is providedby the specially designed metal end capsthat provide positive metal-to-metal sealinginterference with the hardware uponassembly and conform to any potentialextrusion gaps under pressure.The metal end cap seal can withstand

pressures up to 103.4 MPa/15,000 psi andtemperatures up to +177°C/+350°F instatic applications. The sealing materialscomply with NORSOK, NACE, API andTotal standards.

STRAINSTALL HAS PARTNERED with oilfieldservices company Baker Hughes to pioneer thedevelopment of a new wireless monitoringsolution, now open to almost all upstreamwellsite operations.

Strainstall engineered a ‘plug-and-play’ systemthat required no changes to existing sheavearrangements by integrating its highly accuratetension load cells with its hazardous areacertified wireless technology, to provide bothreal-time and built-in data logging capabilities forline tension monitoring. This led to Strainstall’sdevelopment of a modular, fully hazardous areacertified wireless system which could integrate with any type of third party sensor for any applicationwhere operator safety is a key concern, without needing IECEx recertification.

Strainstall has now launched its suite of Wellsite Monitoring Solutions (WMS) that address wellsitesafety and efficiency issues, initially focusing on wireline, slickline and measurement-while-drilling(MWD) activities. The wireless technology supports wellsite operations by eliminating the use ofcabled sensors and removing trip hazards. Significant value is added by reduced rig up time andassociated cable costs, as well as reduction of non-productive time (NPT).

WMS replaces existing cabled sensors with highly accurate, hazardous area certified (zone 1/class 1division 2) wireless sensors that communicate directly with wellsite control, monitoring and datahandling systems to provide real-time operational information, as well as storing the data for analysisfor potential learning, improvement opportunities and incident investigations. WMS can be easilyretrofitted and is compatible with existing wellsite equipment.

ALLWEILER GMBH, PART of CIRCORInternational, Inc., has introduced its redesignedvertical centrifugal pump solutions for ship enginerooms. The innovative foot design reduces spacerequirements and improves operational safety.

"The new compact MA-S and MA-C series arevertically installed centrifugal pumps with axialinlets and radial outlets. The S version wasdesigned for simple and rapid assembly anddisassembly of the insert unit with impeller. The Cversion offers the same reliability with asignificantly shorter installation height, so it'sperfect for customers with severe spacerestrictions," says Christian Martin, senior directorProduct Management.

Both versions use a new and patented foot design and have a footprint that is up to 23 percent smaller than the predecessor model. In this shorter, lighter version, the suction flange wasredesigned with integrated fixing holes for pedestal mounting on the ship's foundation.

This arrangement extends the pump's service life and reduces wear to the bearing and shaftseal by directing forces from the pipeline directly into the foundation. It also helps avoid damagesat the impeller and casing.

New wellhead sealing solution

THE E-INSTRUMENTS E1500 Hand-Held Combustion Emissions Analyzer is a new, ruggedunit with the ability to measure CO & O2 from high efficiency and condensing boilers,burners, engines, turbines, kilns, furnaces, incinerators and other industrial combustionprocesses. Featuring a built-in printer, new large colour display, automatic data saving andexpanded internal memory, the E1500 lets you easily see and save your sample datawithout worrying about running out of memory. The E1500 also features pre-calibrated,field replaceable sensors which allow for easy diagnostics and replacement to reduce“down-time” and costly repair charges, as well as bluetooth wireless communication withsoftware and App.

Allweiler introduces new compact marinecentrifugal pumps

New hand-held combustion emissions analyzer

Strainstall develops wireless monitoring solution

The new compact marine centrifugal pumps

Innovations

The new metalend cap seal

Wireline operations

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CUBILITY AS HAS launched the latest evolution of itsindustry leading solids control solution, the MudCube X.

The MudCube is a compact, lightweight solids controlsystem that eliminates the traditional process of shakingfluids from the drilled solids with the negative HSE impact.It uses a combination of high airflow and a rotating screenfiltration system to improve separation efficiency, allowingmore drilling fluid to be recycled back to the mud tanksand resulting in dryer cuttings and less waste. This leadsto improved drilling efficiencies, reduced operational costs,as well as better HSE and working conditions, accordingto the company. Building on the capabilities of the MudCube, the MudCube X comes with anenhanced modular design allowing for easy integration into all rig designs; and fast installation andmaintenance. It is engineered to allow for local manufacturing and/or assembly worldwide.

Even Gjesdal, Cubility CEO said, “We are enormously proud as to how the MudCube hasrevolutionised solids control and we look forward to even further market penetration with theMudCube X.” With the rise in pad drilling and multiple wells, the MudCube X can be added toexisting operations and start delivering value in drilling fluids and waste disposal within a matter ofdays. Furthermore, as opposed to shakers, the MudCube X processes 100 per cent of the mud,thereby immediately increasing performance with as much as 80 per cent more mud recoveredthan other technologies. When taking this across a field and hundreds of rigs, the impact on thebottom line and investor returns will be significant.

Over the last few years – both onshore and offshore – the MudCube has won significantcontracts in the North Sea, the Middle East, Asia, South America, and the North American landdrilling market, where Cubility has developed a major foothold in US shale.

The MudCube X

Cubility launches new version of solids control solution

Innovations

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THERMON GROUP HOLDINGS hasintroduced the TraceNet Genesis Control& Monitoring System, a new solution formanaging heat trace circuit performanceon process lines, tanks andinstrumentation. It gives instant access tocomprehensive heat trace circuitinformation, including circuit performancehistory, fault analysis, and circuit drawings.helping maintenance personnel to predictfailures and minimise downtime.

“Maintenance personnel mustaccurately predict and prevent heatingsystem downtime. They require the rightinformation at their fingertips to quicklyand accurately troubleshoot issues asthey arise,” said Peter Baen, seniorproduct manager for Thermon. “Inresponse, we developed the TraceNetGenesis System to be a fully connectedIndustrial Internet of Things (IIOT)platform for controlling heat trace circuitsthat provides comprehensive and richdata at the point of use.”

New process heatingcontrol system

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Project DatabankCompiled by Data Media Systems

Project City Facility Budget ($ US) Status

Advanced Petrochemical Company - Jubail - Pyoil & Pygas Plant Jubail Industrial Production 580,000,000 Feasibility Study

Aramco - Berri - Gas-Oil Separation Plant Expansion Berri GOSP 1,700,000,000 FEED

Aramco - Duba - Tabuk Refined Products Pipeline Duba Multi Products 300,000,000 EPC ITB

Aramco - Manifa Oilfield Upgrade Manifa Oil Field Development 500,000,000 Construction

Aramco - Ras Tanura Pipeline Ras Tanura Oil 270,000,000 Construction

Farabi Petrochemicals Company - Yanbu Linear Alkyl Benzene 450,000,000 ConstructionYanbu Linear Alkyl Benzene (LAB) Plant (LAB)

INOCHEM - Soda Ash and Calcium Chloride Complex Yanbu Detergents 300,000,000 Construction

Pan Asia - Jizan City for Basic & Downstream Industries - Jizan Petrochemical Plant 3,800,000,000 EPC ITBPurified Terephthalic Acid (PTA) Plant

Petro Rabigh Refinery & Petrochemical Complex Expansion - Rabigh Naptha 950,000,000 ConstructionPhase 2 - Clean Fuel Package

Petro Rabigh Refinery & Petrochemical Complex Expansion - Rabigh Aromatics 5,000,000,000 ConstructionPhase 2 (Overview)

Petro Rabigh Refinery & Petrochemical Complex Expansion - Rabigh Naptha 500,000,000 ConstructionPhase 2 - Common Facilities (UO2) & Tank Farm Package (UO3)

Petro Rabigh Refinery & Petrochemical Complex Expansion - Rabigh Sulphur Recovery 150,000,000 ConstructionPhase 2 - Clean Fuel - Naphtha Hydrotreater and SRU

Petro Rabigh Refinery & Petrochemical Complex Expansion - Rabigh Caustic Soda 220,000,000 ConstructionPhase 2 - Vanadium Processing Plant & Caustic Soda Disposal Unit

RCC - Jubail - Hydrocarbon Resin Complex Jubail Hydrocarbon Resin 500,000,000 Feasibility Study

SABIC (JUPC) - Jubail - EO/EG III Jubail Ethylene Oxide 700,000,000 Engineering & Procurement

SABIC - ARAMCO - Yanbu - Crude Oil To Chemicals (COTC) Complex Yanbu Petrochemical Complex 20,000,000,000 FEED

Sabic - Debottlenecking and Expansion of Jubail Butadiene 450,000,000 ConstructionPetrokemya Butadiene Extraction Plant

SABIC - Jubail Industrial - Corporate Headquarters Jubail Commercial Buildings 990,000,000 Engineering & Procurement

SAGIA - Saudi Aramco - Jizan City for Basic & Jizan Port 1,400,000,000 ConstructionDownstream Industries - Port Dredging and Reclamation Package

SASREF - Jubail - Refinery Modernization and Expansion Jubail Petroleum Oil Refinery 95,000,000 Engineering & Procurement

Saudi Aramco - Yanbu to North Jeddah NGL Pipeline Yanbu Gas 600,000,000 Construction

Saudi Aramco - Annual Onshore Maintain Potential Program (MPP) Red Sea Maintenance 5,000,000,000 Construction

Saudi Aramco - Arab Heavy Pipeline to Various Oil 250,000,000 EPC ITBYanbu Crude Oil Terminal (YCOT)

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

Saudi Aramco - Bapco - AB Pipeline Abqaiq - Sitra Oil 350,000,000 Construction

Saudi Aramco - Berri Offshore Pipeline Berri Oil 400,000,000 EPC ITB

Saudi Aramco - Duba - Bulk Plant Terminal Duba Oil Storage Terminal 400,000,000 EPC ITB

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

Saudi Aramco - Fadhili Gas Plant - Eastern Region Gas Treatment Plant 2,500,000,000 ConstructionMain Processing Facilities (Package 1)

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

Saudi Aramco - Fadhili Gas Plant - Eastern Region Gas Treatment Plant 2,500,000,000 ConstructionSulphur Recovery Unit SRU (Package 2)

Saudi Aramco - Haradh Gas Increment Program (Overview) Haradh Gas Compression 1,200,000,000 Construction

Saudi Aramco - Haradh Gas Increment Program - Freeflow Pipelines Haradh Flowlines 470,000,000 Construction

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

OIL, GAS AND PETROCHEMICAL PROJECTS - SAUDI ARABIA

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Project City Facility Budget ($ US) Status

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

Saudi Aramco - Haradh Gas Increment Program - Haradh Gas Compression 1,200,000,000 ConstructionSatellite Gas Compression Facilities

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

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

Saudi Aramco - Jizan Export Refinery (Overview) Jizan Petroleum Oil Refinery 2,100,000,000 Construction

Saudi Aramco - Jizan Export Refinery - Crude Distillation Unit / Jizan Crude Oil Distillation Unit 500,000,000 ConstructionVacuum Distillation Unit, Flare & Pipe Rack Complex

Saudi Aramco - Jizan Export Refinery - Hydrocracker Unit Jizan Hydrocracker 250,000,000 Construction

Saudi Aramco - Jizan Export Refinery - Marine Terminal Facilities Bish Marine Terminal 500,000,000 Construction

Saudi Aramco - Jizan Export Refinery - Sour Water Stripper & Jizan Oil Production 500,000,000 ConstructionAmine Regeneration Unit

Saudi Aramco - Jizan Export Refinery - Tank Farms Jizan Oil Storage Tanks 1,500,000,000 Construction

Saudi Aramco - Jizan Export Refinery - Utilities Package Jizan Offsites & Utilities 300,000,000 Construction

Saudi Aramco - Khurais Arabian Light Crude Increment Program Eastern Region Oil & Gas Field 3,000,000,000 Construction

Saudi Aramco - King Salman Energy Park (SPARK) Abqaiq City 4,400,000,000 Design

Saudi Aramco - Marjan - Oil Field Expansion Marjan GOSP 15,000,000,000 Construction

Saudi Aramco - Marjan Cogeneration Independent Steam and Marjan Co-Generation 500,000,000 EPC ITBPower Project (ISPP)

Saudi Aramco - Marjan Water Injection Marjan Water Injection 5,000,000,000 EPC ITB

Saudi Aramco - Marjan, Berri, Various Oil & Gas Field 7,000,000,000 ConstructionZuluf and Safaniyah IV Expansion - (Overview)

Saudi Aramco - Master Gas System Expansion (MGSE) (Overview) Various Natural Gas Liquefaction 4,050,000,000 Construction (NGL)

Saudi Aramco - Master Gas System Expansion (MGSE) - Western Region Gas 830,000,000 ConstructionPhase II - Package 1 - Western Region Pipeline

Saudi Aramco - Master Gas System Expansion (MGSE) - Eastern Region Gas 374,000,000 ConstructionPhase II - Package 3 - Eastern Region Pipeline

Saudi Aramco - Master Gas System Expansion (MGSE) - Central Region Gas 367,000,000 ConstructionPhase II - Package 2 - Central Region Pipeline

Saudi Aramco - Master Gas System Expansion (MGSE) Phase II - Dammam Compressor Station 800,000,000 ConstructionBooster Compressor Stations

Saudi Aramco - Offshore Maintain Potential Programme (MPP) Various Oil & Gas Field 7,000,000,000 Construction

Saudi Aramco - Ras Al Khair - Rig Manufacturing Ras Al Khair Rigs 2,000,000,000 Project Announced

Saudi Aramco - Ras Tanura Refinery - Clean Fuels Project Ras Tanura Aromatics 2,000,000,000 Construction

Saudi Aramco - Safaniyah Expansion Safaniyah Offshore Platform 1,427,000,000 Construction

Saudi Aramco - Shedgum to Yanbu Natural Gas to Shedgum Liquefied Petroleum Gas 500,000,000 ConstructionLiquids (NGL) Pipeline (SHY 1 Loops 4 & 5) (LPG) Pipeline

Saudi Aramco - Total - Satorp - Jubail - Petrochemicals Complex Jubail Petrochemical Plant 9,000,000,000 Feasibility Study

Saudi Aramco - Unconventional Gas Program - Shale Gas Production Various Shale Gas 7,000,000,000 Engineering & Procurement

Saudi Aramco - Unconventional Gas Program - Turaif Gas Field Development 200,000,000 ConstructionTight Gas Production Systems A

Saudi Aramco - Unconventional Gas Program - Turaif Gas Field Development 3,500,000,000 ConstructionTight Gas Production Systems A and B (Overview)

Saudi Aramco - Unconventional Gas Program - Turaif Gas Field Development 800,000,000 ConstructionTight Gas Production Systems B

Saudi Aramco - Uthmaniya Gas Treatment Units Uthmaniyah Gas Network 800,000,000 Construction

Saudi Aramco - Yanbu - Storage Tanks and Associated Equipment Yanbu Gas Storage Tanks 270,000,000 Engineering & Procurement

Saudi Aramco - Zuluf Oilfield Expansion Zuluf Oil Processing Facility 1,700,000,000 Engineering & Procurement

Saudi Kayan - Jubail - EO/EG Debottlenecking Jubail Ethylene Oxide 120,000,000 Construction

SDC - Jubail - Surfactants Manufacturing Plant Jubail Surfactants 50,000,000 FEED

Yansab - Yanbu - Ethylene Glycol DBN Yanbu Ethylene Glycol 100,000,000 Construction

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Project DatabankCompiled by Data Media Systems

Project Summary

Project FocusCompiled by Data Media Systems

Project Status

Background

Saudi Arabia plans to raise its gas production to be able to diversify its energy mix. The demand for natural gas is on the rise in the kingdom due to ongoing

expansions in the petrochemicals and power industries. In an initiative to meet growing domestic needs, Aramco plans to boost the production of Haradh by

building gas compression plants and other facilities. The capacity of Hawiyah plant will also be expanded by 1.3bn standard cubic feet per day. Hawiyah and

Haradh are part of Ghawar, the world's largest onshore oilfield.

Date Status

31 Jul 2018 Saudi Aramco signs a $US590mn construction agreement with Tekfen to build Haradh's satellite gascompression plant pipelines. The duration of the project is 33 months.

29 Jul 2018 Aramco awards Saipem a contract for the construction of its South Gas Compression Plant Pipelines. The projectis interconnected with the development of Haradh Gas Plant and will feature the development of a 700-km longsystem of pipelines, flow lines, trunk lines, transmission lines and associated facilities to transport gas frompoints of storage and distribution.

12 Jul 2018 Aramco awards China Petroleum Pipeline Engineering Company, a subsidiary of China National PetroleumCorporation, a US$569.35mn contract to build an 844 km pipeline for Haradh Field. The project is expected to becomplete within 38 months.

Jul 2018 Field layout and schematic design for the pipeline connection of the North, South and Satellite gas compressionfacilities have been completed and bids for the LSPB contract are currently being evaluated for pipelinemodifications and material provision.

Project Name Saudi Aramco - Haradh Gas Increment Program (Overview)

Name of Client SAUDI ARAMCO - Saudi Arabian Oil Company

Estimated Budget (US$) 1,200,000,000

Facility Type Gas Compression

Status Construction

Location Haradh

Project Start Q1-2014

End Date Q2-2021

FEED WorleyParsons

EPC Contractora Tecnicas Reunidas, Saipem, China Petroleum Pipeline Engineering Company – CPPE, Tekfen

Award Date Q4-2017

Project Scope

• Building gas compression plants and other facilities to boost production

from Haradh.

• Increasing the flow rate by reducing pressure at the wellheads.

• Installing gas compression systems to boost the pressure and transfer

the gas to the processing plants.

• Communication and network infrastructures will be set up to improve

gas production and sustainability. SCADA-RTU Systems and backbone

connection to support the operation of the nine new Gas Compression

Plants (GCPs), seven Liquid Separation Stations (LSSs) and three

Operational Support and Administration Areas.

The proposed facilities will have the capacity to process more than 1 billion cubic feet a day (cf/d) of additional gas produced from the Ghawaronshore field and will entail:

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Middle East & North AfricaThe 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.

Source: Baker Hughes

RIG COUNT

Issue 3 2017 oilreview.me 63

THIS MONTH VARIANCE LAST MONTH LAST YEARCountry Land OffShore Total From Last Month Land OffShore Total Land OffShore Total

Middle EastABU DHABI 38 17 55 2 38 15 53 34 18 52DUBAI 0 2 2 0 0 2 2 0 2 2

IRAQ 57 0 57 -2 59 0 59 53 0 53JORDAN 0 0 0 0 0 0 0 0 0 0 KUWAIT 50 0 50 0 50 0 50 52 0 52 OMAN 53 0 53 0 53 0 53 53 0 53PAKISTAN 24 0 24 1 23 0 23 25 0 25QATAR 4 5 9 0 4 5 9 4 6 10 SAUDI ARABIA 100 21 121 4 100 17 117 98 17 115 SUDAN 0 0 0 0 0 0 0 0 0 0SYRIA 0 0 0 0 0 0 0 0 0 0 YEMEN 0 0 0 0 0 0 0 0 0 0TOTAL 326 45 371 5 327 39 366 319 43 362

North AfricaALGERIA 49 0 49 4 45 0 45 55 0 55EGYPT 24 5 29 -3 26 6 32 18 6 24 LIBYA 7 1 8 3 4 1 5 0 1 1 TUNISIA 2 1 3 0 2 1 3 0 0 0TOTAL 82 7 89 4 77 8 85 73 7 80

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اللبنانية البحرية للحقول الأبعاد ثلاثية السيزمية التغطية منحت ذلك، إلى بالإضافة التنقيب المزمع (٨٠ في المائة) الشركات فرصة فريدة للحد من المخاطر المرتبطة بأعمال

استكشافها واختيار تلك التي من المرجح أن تكُلل بالنجاح.

• هل لديكم خططٌ لمنح مجموعة تراخيص ثانية؟ وهل بوسعكم تقديم أي مؤشرات في للمشاركة الشركات اهتمام لجذب تتطلعون وكيف ذلك؟ حدوث توقيت على

المناقصات؟ بالطبع لدينا خطط. فقد قررت الحكومة في شهر مايو/أيار من العام الحالي إطلاق جولة التراخيص الثانية قبل نهاية العام وخلال ٢٠١٩ (من المتوقع منح الامتيازات قبل نهاية

٢٠١٩ إذا تسنّى لنا اختصار الإطار الزمني المتوقع). وفيما يلي المراحل الرئيسية للجولة الثانية:

أ- جولة التأهيل المسبق (ثلاثة أشهر من البداية وحتى الإغلاق): من المقرر البدء فيها قبل نهاية عام ٢٠١٨، على أن يتم الإعلان عن التاريخ الفعلي في وقت لاحق خلال هذا

الصيف.ب- إتاحة تقديم العطاءات للشركات مسبقة التأهيل لمدة ستة أشهر.

ج- تقييم العطاءات وإرسال تقرير إلى وزير الطاقة والمياه (في غضون شهر واحد).اللبنانية ومنح مجلس البترول الوزراء لتقرير إدارة قطاع الوزير ومجلس د- مراجعة

الوزراء لمنطقة (مناطق) الامتياز (في غضون شهر واحد). ونحن نقوم بالإعداد لحملة ترويجية وتسويقية، كما ستتم إضافة حوافز أخرى لشروط العطاء وإزالة الكثير من العوائق التي تحول دون تقديم العطاءات. كما أننا أيضا بصدد التنقيب الحد من المخاطر المرتبطة بأعمال تقديم دراسات جيولوجية إضافية تسهم في

والأبحاث الجيولوجية، ومن ثم زيادة جاذبية العروض.

• ما هي الفرص المتاحة للشركات الدولية في قطاع النفط والغاز اللبناني حسبما يتراءى لكم؟ وكيف تتطلعون إلى خلق بيئة مواتية للاستثمار الدولي؟

تكمن الفرص الحالية بقطاع النفط والغاز في سلسلة القيمة بالكامل (قطاع التنقيب النحو على وهي التحويلية) الصناعات وقطاع الأنابيب، وخطوط النقل قطاع والإنتاج،

التالي:الحقول تراخيص من الأولى للجولة الناجح الإغلاق مع والإنتاج: التنقيب قطاع أ- البحرية ومنح منطقتي امتياز لعدد من الشركات الدولية الكبرى، ومع بدء الجولة الثانية، العميقة، المياه العمل في القادرة على الكبرى الرئيسية الشركات إلى جذب لبنان يطمح وتلك التي تمتلك الإمكانات المالية اللازمة لتتبع وتطوير أي كشف تجاري بشكل سريع. ويتم كل ذلك في إطار قيود بيئية صارمة لتفادي وقوع أي حوادث تهدد الصحة والسلامة

والبيئة.ب- قطاع النقل وخطوط الأنابيب وقطاع الصناعات التحويلية: طرحت وزارة الطاقة والمياه مناقصة دولية من المقرر إغلاقها في أكتوبر/ تشرين الأول، وهي تهدف إلى جذب مقدمي العطاءات من مختلف الدول لإنشاء وحدتين عائمتين للتخزين وإعادة الغاز إلى حالته الغازية، وذلك من أجل توفير وتخزين الغاز الطبيعي المسُال على سفينتين وإنشاء

كافة خطوط الأنابيب والبنية التحتية اللازمة لتوصيل الغاز إلى محطات توليد الطاقة التي تعمل بالغاز، وهو ما يؤدي بدوره إلى تقليل تكاليف استهلاك الطاقة التي تتكبدها الدولة بنحو مليار دولار سنويا على وجه التقريب.وقد ثبتت أهلية أغلب الشركات المهتمة بقطاع

التنقيب والإنتاج واهتمامها بهذه المناقصة.ومن الجدير بالملاحظة، أن الإطار القانوني والمؤسسي لقطاع النفط والغاز اللبناني يتميز بالوضوح والاستقرار والقدرة على التنبؤ، مع التركيز بشكل أساسي على الشفافية والاتصال المناقصة تقييم المثال سيناريوهات فقد نشرنا على سبيل الدولية. الشركات المتبادل مع والمنهجية التفصيلية لذلك، ما كان من شأنه بعث رسائل الاطمئنان للشركات والتأكيد على موضوعية التقييم (لا يتحقق ذلك في أغلب جولات الترخيص على مستوى العالم). وقد نال ذلك استحسان وإشادة كل من مبادرة الشفافية في الصناعات الاستخراجية، ومبادرة إدارة

الموارد الطبيعية، هذا فضلا عن الشركات.

• ما هو دور الشركات المحلية في تطوير قطاع النفط والغاز اللبناني؟ وفقا لدراسة حديثة أجُريت عن السوق اللبناني، سيكون للشركات اللبنانية دور يتزايد تدريجيا على صعيد صناعة الخدمات بشكل رئيسي. وأظهرت الدراسة أنه سيتم استيراد أكثر من ٩٥ في المائة مبدئيا من العناصر المرتبطة بالنفقات الرأسمالية، في حين يتم استيراد ٨٠ في المائة مبدئيا من الخدمات المطلوبة والناتجة ذات الصلة بالنفقات التشغيلية. ويمكن للشركات اللبنانية الاستحواذ على واحد أو اثنين في المائة من حصة النفقات الرأسمالية في السوق على أساس سنوي بعد التطوير، لتصل هذه النسبة إلى ٥٠ في المائة من حصة السوق استثمارات ضخمة وتقنيات السوق الإضافية من الحصص (تتطلب بعد ٢٠ سنة الكلية

متطورة ليست متاحة للسوق المحلية بما يمكّنها من منافسة الشركات الدولية العريقة). نسبة على الاستحواذ المحلية للشركات فيمكن التشغيلية، النفقات عناصر عن أما خمسة في المائة إضافية من حصة السوق من خدمات النفط والغاز والمساهمة بنسبة ٨٠

في المائة من قطاع الخدمات بعد ١٢ عاما تبدأ من اليوم (أي من بدء التنقيب).

لصالح اللبنانية والغاز النفط موارد لاستغلال تتطلعون كيف البعيد، المدى على •الدولة وشعبها؟

الموارد وتقييم الموارد. تقييم الإيرادات هي إدارة قبل المنطقية الخطوات أولى إن عملية مستمرة، غير أنه تتوفر لدينا بعض النتائج الإرشادية بعد مرور عدة سنوات على أعمال الاستكشاف. وبعد إجراء التقييم الأولي للموارد المتاحة، يمكننا فقط حينذاك تطوير

إستراتيجية لإدارة الإيرادات لتحقيق الاستدامة والنمو الاقتصادي.ويتعين في الوقت الحالي إيداع أي إيرادات للنفط والغاز في أحد صناديق الثروة السيادية (عملاً بالقانون ٢٠١٠/١٣٢). وقد بدأ مجلس النواب في دراسة مسودة قانون بهدف إنشاء فإننا سنتمكن من وضع إستراتيجية استثمارية صندوق ثروة سيادية. وكما ذكرت سلفا، لهذا الصندوق فقط بعد إجراء التقييم الأولي للموارد. والهدف الرئيسي من بنية صندوق الثروة السيادية هذا هو التأكد من تحويل الأصول الهيدروكربونية،غير المتجددة والكامنة في باطن الأرض، إلى أصول مالية مستدامة فوق سطح الأرض، وعدم منح أي جيل بعينه

الحق في استنزاف هذه الأصول.

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مقابلة

05

سبتمبر/أيلول ...........................................................................................................................................................................................................................................................................................24 ـ 25 ........ منتدى الكويت للصحة والسلامة والأمن ......................................................................................................................................................... الكويت

أكتوبر/تشرين الأول ............................................................................................................................................................................................................................................................................. 9 ـ 11 ........ مؤتمر النفط والنقد ................................................................................................................................................................................................................. لندن9 ـ 10 ........ معرض البصرة للمشروعات العملاقة ............................................................................................................................................................... اسطنبول23 ـ 25 ........ المعرض والمؤتمر الدولي للصناعات التحويلية ................................................................................................................................................ المنامةنوفمبر/تشرين الثاني .............................................................................................................................................................................................................................................................................12 ـ 15 ........ معرض أديبك .................................................................................................................................................................................................................... أبوظبي

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04

www.oilreview.me

مقابلة

التنقيب في • ما هي تطلعاتكم فيما يتعلق بعمليات الشركات تحالف يجريها والتي و٩ ٤ الامتياز منطقتي

بقيادة شركة توتال؟ وما الدلائل على الطاقة الإنتاجية؟ التراخيص من الأولى الجولة خلال من نسعى كنا ترخيصين منح خلال من بالكامل تحققا هدفين لتحقيق و٩. ٤ الامتياز منطقتي في النفط عن للتنقيب حصريين

والهدف التجاري، الاكتشاف تحقيق هو الأول الهدف الثاني المحافظة على حقوق لبنان المتمثلة في السيادة على حدود سيما ولا لها، التابعة الخالصة الاقتصادية المنطقة -كما الشركات تعتقد المنطلق، هذا ومن المنطقة. هذه تتمتعان و٩ ٤ الامتياز منطقتي أن أيضا- نحن نعتقد بناءً النفط التنقيب عن احتمالات نجاح عمليات بارتفاع

إن هناك إذ فقط، وليس هذا الجيولوجية، البيانات على العديد من الفرص الأخرى التي تلوح في الأفق وتعد أهدافا الحجر تكوينات على المنطقتين كلتا وتحتوي للتنقيب. الرملي (ناشئة عن الترسبات العكرة) وتكوينات الكربونات. وقد ثبت أن هذين النوعين من الأحجار لهما نظامٌ نفطيٌّ

فاعلٌ في منطقة شرق المتوسط.

يستهل لبنان أعمال التنقيب عن النفط والغاز بإصدار جولة التراخيص الأولى لحقلين بحريين، وفي البترول إدارة قطاع بهيئة الجيولوجيا والجيوفيزياء يتولى وسام شباط، رئيس وحدة الحوار هذا اللبنانية، شرح خطط وآفاق قطاع النفط والغاز في الدولة. وهو يقول إن لبنان يطمح إلى جذب الشركات الرئيسية الكبرى القادرة على العمل في المياه العميقة، وتلك التي تمتلك الإمكانات المالية بيئية صارمة قيود إطار ويتم كل ذلك في تجاري بشكل سريع. أي كشف لتتبع وتطوير اللازمة

لتفادي وقوع أي حوادث تهدد الصحة والسلامة والبيئة. وإلى نص الحوار:

بدأ لبنان في التنقيب عن النفط والغاز في الحقول البحرية

.................................................................................................................................................................................................................

معرض البصرة للمشروعات

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تعُنى بالنفط والغاز ومعالجة الهيدروكربون

القسم العربي

مدير مبيعات : مايكل فيريدجمدير مبيعات المجلة: تانمي ميشرا

[email protected] : هاتف : ٩١٨٠٦٥٦٨٤٤٨٣+ - بريد إلكتروني

[email protected] - المتـــــرجـــم: عــــزالديــن م. علــــي[email protected] - التصميم والإخراج الفني : محمد مسلم النجار

الطباعة: مطبعة الإمارات - دبي

المحررة: لــــويــــز ووتــــرزفريـق التحـريـــر والتصميـــم : بـراشــانت إيه بي، هيـرتي بايـرو، ميـريـام بـروتكـوفــا،

رانجانات جي إس، رونيتا باتناك، سامنثا بين، راؤول بوتنفيدو، نكي فالساماكس،فاني فينوجوبال،دوبلينا روي.

محرر المجموعة: جـــورجيــا لـويــس

الناشر: نــــــــــك فـــــوردهــــــــام

رئيس مجلس الإدارة: دريــــــــــــك فــــوردهــــــام

Michael Ferridge [email protected]

Nigeria

الإنتاج: نيلي مينديز . [email protected] : بريد إلكتروني

[email protected] : الإشتراكات : بريد إلكتروني

مقابلة .......................................................................................................................................................................................................................................................................................................

ملخص مــحتويات القسم الإنجليزي: ........................................................................................................................................................

مستقبل تطوير قطاع النفط والغاز في لبنان .............................................................................................................................................................................. ٤

تقارير خاصة: الكويت، شركة البترول الكويتية، المملكة العربية السعودية..................................................................................................................................................................................................................................................................................................................................................

استطلاعات: الغاز الطبيعي المسال، الشحن..................................................................................................................................................................................................................................................................................................................................................

تقنيات: قياس التقنية، المكثفات، تقنية مد الأنابيب..................................................................................................................................................................................................................................................................................................................................................

تكنولوجيا المعلومات: الأمن السيبراني.

Company ............................................................PageAarvi Encon Ltd ..................................................................................50Advanced Refining Technologies LLC ........................................29AkzoNobel UAE Paints L.L.C...........................................................13All World Exhibitions ........................................................................57Bauer Kompressoren GCC FZE ......................................................33Bell Energy............................................................................................58Byrne Equipment Rental LLC ........................................................21CompAir ................................................................................................67DMG World Media Abu Dhabi Ltd (ADIPEC) ............................53Dresser Al Rushaid Valve & Instr. Co Ltd..................................15Eilbeck Cranes ....................................................................................31Faccin S.p.A. ........................................................................................49Frigmaires Engineers ..........................................................................4Fronius Middle East FZE ..................................................................45Gardner Denver Machinery Inc. ....................................................25Gas & Oil Field Services Co (GOFSCO) ........................................2IPCO Germany GmbH ......................................................................12

Company ............................................................PageKaeser Kompressoren FZE ..............................................................35Kumars Forge & Valvves Pvt Ltd..................................................43Magnetrol International N.V. ........................................................23ME3 - Middle East Energy Events FZ LLC ................................47(EMET 2018 Confrence)NCS Multistage LLC ..........................................................................27Protton Engineering ..........................................................................14Rotair Spa ................................................................................................9Saudi Steel Pipe Company ............................................................37Shree Steel Overseas FZCO............................................................10Sullivan Palatek..................................................................................18Suraj Limited ........................................................................................17Tianjin Lilin Petroleum Machinery Co. Ltd ..............................52Trans Asia Pipeline Services FZC ................................................55TUBACEX Middle East ......................................................................41Vishal Rubber Technologies Pvt Ltd ..........................................39Wood (Production Services Network Emirates LLC ................7

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Page 67: ORME62018Cover …Zour refinery, LNG import terminal and the development of its heavy oilfields. See our features on ps11 and 14 for updates, as well as advice on approaching the market.

S13�ORME�6�2018�Arabic_Layout�1��20/09/2018��14:51��Page�67

Page 68: ORME62018Cover …Zour refinery, LNG import terminal and the development of its heavy oilfields. See our features on ps11 and 14 for updates, as well as advice on approaching the market.

S13�ORME�6�2018�Arabic_Layout�1��20/09/2018��14:51��Page�68


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